Monday, January 28, 2008

US Recession and SaaS

US recession may be bad for IT companies of US as the IT spend of various companies is bound to go down. This will result in pressure on the top line and bottom line of IT companies which is bound to affect the economy further. But in all this bad blood some companies are also bound to benefit. Which are these companies?

The SaaS providers. As the IT budgets get pruned by SME's and Big Companies alike, there is bound to be a shift towards SaaS which definitely reduces the TCO of any companies as it saves a large amount of Dollars on deployment, Maintenance and Staff. More and more companies will adopt SaaS to reduce the costs of the Company.

So while the Recession is set to Hurt the US economy the SaaS providers stand to gain from the phenomenon.

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