Tim Bass
Wed, 14 Nov 2007 14:29:20 +0000
Last quarter
TIBCO*Software missed earnings after an earlier warning.**Among
other things, the Q3 2007 earnings teleconference highlighted dissappointing sales in the financial services sector.
Experience has*demonstrated,* time and time again, when a sector is underperforming and cutting costs, one of the first line items in the budget*to dramatically decrease is information technology (IT) expenditures.* *This is also true in financial services.
The*
subprime meltdown*which*caused
E*Trade’s stock to
drop nearly 60 percent this week*is, and continues, to dramatically*impact the financial services industry (FSI).*
In turn, this impact will*almost certainly adversely effect IT expenditures and new technology investments, such as complex event processing solutions*and similar projects, in FSI.
StreamBase has*shown some business savvy by focusing on the on-line gaming industry this year.***
This is a good time for all software vendors, including CEP vendors, to refocus their sales*strategy on other-than-the-financial-services-markets.* I recommend focusing on sectors such as*manufacturing,*supply chain, retail (consumer services),*and telecommunications.*
Companies that try to push against the subprime hurricane will suffer more than companies who are more flexible.*** Many software companies advocate agility but do not practice what they preach.*
Agility is critical.** Walk the talk, as they say.
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