Trends Report

Navigating Through The Volatility And Complexity Of The Tech Industry Ecosystem

January 9th, 2009
Pascal Matzke, Vice President, Research Director
Pascal Matzke Vice President, Research Director
With contributor:
Thomas Mendel, Ph.D.

Summary

Whatever the vagaries of the current economic downturn, the tech industry is caught in the grips of a deep structural change that will drastically alter the nature of industry supply and demand. Tech vendor strategists need to learn new rules in order to deal with the increasing volatility and complexity of the tech industry ecosystem. In particular, they need to shift away from a focus on technology product life cycles toward a deep understanding of the underlying business cycles. Going forward, revenue growth will depend more on the ability of tech vendors and service providers to anticipate the consequences of the ebbs and flows of IT spending and the implications for the various buying constituencies within the tech industry ecosystem. Vendor strategists can only ensure market success in the difficult times ahead if they understand and proactively address the underlying cyclical market dynamics.

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