Sunday, October 5, 2008

Open source can still win in a down economy

I was meeting with venture investors the last few days and it's clear that the impact of the credit crisis and the overall bleak economic outlook has people really freaked out. Rightly so, but it's times like these where smart investors invest in early-stage ideas that will take a few years to mature.

And, while it's clear that spending will slow a bit in the technology sector, there is less risk then there was in the last meltdown where everyone was over-invested in technology. That doesn't mean we won't be impacted, just that the nuclear winter in financial services probably won't effect tech as much as it did circa 2001 when every startup failed and big companies lost billions.

Open source consumption did really well during the last economic downturn. In this downturn, open source offers the best value for money and with more mature supported products, enterprises can continue to innovate while budgets are frozen.

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