The Network Hub

Nov 8 2008   1:13AM GMT

IT economic outlook: Not so good

Tessa Parmenter Tessa Parmenter Profile: Tessa Parmenter

One way to make financial projections into your company’s IT future is by taking a look around at other IT corporate giants, like Google and Cisco, to see how they are faring. If the company at the top of the food chain is feeling affects from a depressed economy, then chances are, lower down the chain, you’re going to be feeling twice the burden.

magic 8-ball outlook not so good

This past August, although Cisco reported strong 2008 earnings (Compared to last year, net sales were up 9.9%, net income was up 4.4% and earnings per share were up 6.5%.), today, Outlook’s Ritsuko Ando reported Cisco’s shares were down 28% from a year earlier. This downward jump is a jolt I’m sure we’ll all be feeling.

On election day, Scott Moritz of Fortune 500 magazine wrote:

“As a supplier of Internet gear and computer networking systems, Cisco has a broad reach into markets across the globe. And given its position as the dominant provider of data infrastructure, Cisco’s view of tech spending trends, while not always accurate, commands a great deal of attention.”

After all, seeing Cisco Looks into the Abyss at the top of CNNmoney.com commanded my attention.

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