What Impacts Have You Seen From the Financial Crisis?

By Scott Sehlhorst | November 6th, 2008

We all have seen the commentary from economists, speculators, and journalists.  The messages vary from gloom-and-doom to best-opportunity-ever.  Warren Buffet talks about being afraid when everyone is buying, and buying when everyone panics.  Jason Calacanis talks about tightening our belts (but also talks about opportunity).  The general message from venture capitalists seems to be “stop being silly, and start making rational business decisions.”  So what are you seeing in your neck of the woods?

Economic Impacts Across The Globe

When it comes to software product success, the rules of the game have not really changed.  Deliver distinctive value for your customers, and they will want your products.  The playbook, however, may have changed a lot.  Or not.  I would like us to share some anecdotal data with each other.  Tyner Blain is read by thousands (can you believe it?!) of people around the world.  People from 115 countries have been here just in the last month.  176 countries if we start at the beginning of the year.  That’s a lot of global perspective.

Is your corner of the world on fire?

What about your industry?  Your company?  Your customers?

Starting the Discussion

I’ll start the discussion with a couple anecdotes of what I’ve seen in my corner of the world.  Check out the comments below and chime in with what you’re seeing.  And thanks in advance for sharing!

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This article was published on Thursday, November 6th, 2008 at 9:12 pm and is filed under Slightly off-topic.
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3 Comments

  1. Scott Sehlhorst
    Posted November 6, 2008 at 9:46 pm

    I’ve worked and spoken with several clients, potential clients, and friends in the software-creation industry over the last month. Here are some things I’ve seen in Austin, TX.

    • An early stage consumer internet start-up is seeing more pressure to manage burn-rate (cash expenditure). They are hiring, but keeping a tight rein on cash.
    • A late stage b2b commercial start-up that is providing 12-month payback to their customers, and growing like gangbusters. They are hiring.
    • A large computer manufacturer that is seeing demand weakness, and has enacted dramatic cost cuts. They are down-sizing.
    • Another early stage consumer internet start-up is facing challenges getting funding and had to let some people go.

    Projects that are focused on cost-reduction seem to be the most interesting for larger companies, while investments in growth seem to be the focus for smaller companies. Larger companies are delaying or canceling projects focused on top-line growth.

    What are you seeing in your corner of the world?

    Reply to this comment
  2. April
    Posted November 10, 2008 at 10:25 pm

    Hi,
    Here are a few of the things I have seen:
    1/ Startups I know have seen deals delayed but not lost. Customers are taking a wait and see approach to some enterprise software purchases.
    2/ CIO’s at larger companies we work with are very focused on driving revenue. Cost cutting projects are getting through but only with strong, measurable ROI.
    3/ The large communications company that I work for is doing a massive restructuring, freezing merit increases, freezing travel and other things to try to dramatically cut costs.
    4/ The CIO of a large financial exchange I talked to is actually increasing his IT spend dramatically so that they can keep up with the wild swings in the stock market (I figured those should be good for someone other than day traders).
    5/ CIO’s of the larger companies I work with are seeing dramatic price cutting especially on hardware.

    April

    Reply to this comment
  3. Scott Sehlhorst
    Posted November 12, 2008 at 9:29 pm

    Thanks April!

    April wrote an article about her participation on a CIO Advisory Board a couple weeks ago, with more insights, and she updated it with a link to the results of CIO Magazine’s survey for even more data. You should check it out.

    Reply to this comment

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