Recession and geo businesses


A few days ago Sean Gorman asked the question “Does the Geoweb need a bail out?” which seems very prescient when yesterday Piney Bowes MapInfo announced 128 layoffs. I doubt they will be the only company to be reducing costs over the next few weeks/months.

Which companies will fare best or worst through this difficult period? I expect that those businesses that have a high proportion of their revenues from the public sector will out perform the more commercially focussed businesses whose clients will be most extreme in cutting back on non essential IT expenditure.
Is this a good time for a startup? Absolutely, while the big players are trying to preserve their diminishing profits with cost cutting and caution there have to be opportunities for new players, new business models and disruption. But how you pick the winners remains the $64,000 question.