Thursday, May 14, 2009

Web-hosting firms defy recession

Believe me, I really want to believe this. The notion that technology areas that reduce customers' costs are recession-proof isvery attractive.

However, two points:

1. The medical industry is supposed to be resession proof, yet my cardiologist has had to lay people off, and the number of unclaimed prescriptions has dramatically increased. The latter indicates that people are willing to take higher risk if it means lower costs.
2. Moving to a hosting provider involves management time and people investment to analyze the bids and to migrate infrastructure. Something that can be hard to justify in lean times.

I suspect that firms who had already decided to outsource in some way accelerated those plans, but it's yet to be seen if the number of firms outsourcing in the long-run will increase.

Web-hosting firms defy recession - Network World

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