Thursday, March 26, 2009

Can tech companies survive this downturn?

The news is all over the wire about the possible acquisition of Sun Microsystems by IBM. The sun is not only setting for Sun Microsystems, it seems to be going down for other well known brands as well. One of those listed by the Channel Insider 2009 Survey is AMD.

In another blog by Joan Jacobs of the Itanium Solutions Alliance, http://blog.itaniumsolutions.org/2009/03/a-big-blue-sun/; she speaks about how this merger would be reducing the choices of microprocessor for the mainframe architecture.

Coming out of this recession, we are going to see much stronger and larger firms in the tech arena. The weaker ones will either be left behind, acquired at deflated capitalizations or will simply vanish.

The companies that survive will be good candidates for acquisition and will have better valuations because they would have figured out ways of ridding out the recession and would have put in place revenue and business models that are not only recession proof but viable beyond the current economic malaise. Follow the link below:

Based on Channel Insider 2009 Market Pulse Survey, they have predicted that more tech companies will go out of business. Check out this link. http://www.channelinsider.com/c/a/News/Dire-Predictions-Tech-Vendors-That-May-Not-Survive-2009/

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