SD TIMES BLOG

To analyst Rob Enderle, the year 2009 is looking awful train-like. Train-like in the sense that many companies will be stuck on the tracks as it comes rolling in.

Speaking with SD Times recently, Enderle talked about how obtaining any sort of funding or capital through the year is going to be very difficult. This is true even for companies in strong financial shape, as most funding sources have dried up.

"For proprietary or open source companies, I don't really think it makes a difference, but for the firms primarily living off of venture money or pre-public rounds, it's going to be tough," he said. "I know a lot of venture capitalists have indicated that anyone thinking about getting another round of funding should stop thinking about it. It's probably not coming."

Additionally, larger companies that have been providing generosity money to startups and small business, like Microsoft for instance, will likely have to ease up to look after themselves. There will be a trickle-down effect financially.

"If you didn't have a solid revenue and profit model going into 2009, there's a real good chance you're not going to exit it," Enderle said. "This is going to stress some of the healthiest financial companies we've got out there, and that means for those firms that aren't healthy financially, it's gonna be a year where the strongest survive, and anyone short of that is going to be at risk."

Enderle said the crumbling job market will also lead to a great deal of stress on companies. On the other hand, the technology industry can benefit from the situation in the job market since one of the ways to cut labor costs is with technology. Enderle said consolidation and collaboration technologies will probably do fairly well during the downturn because they "allow you to do more with what you've got."

Also, much of the security market may flourish because the threat of both physical and cyber attacks will go through the roof next year, Enderle predicted. "There will be some industries that I think will have an uptake, but it's going to be a tough year," he said.

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