Blade Watch

http://www.ft.com/cms/s/0/f60180d8-f387-11dc-b6bc-0000779fd2ac.html?nclick_check=1

Some of the biggest US technology companies have put a lid on their research and development spending even as the industry enjoys its strongest period of growth this decade, according to the latest financial filings.

With a US economic downturn looming, the pressure to hold down spending is expected to intensify further this year.

Do check out this article from the FT which is discussing that there is a more cautious approach to investment for technology companies. Interesting, I wonder if this will affect the innovation of products and services?

Also, is this not indirectly linked to recent announcements/developments? 

If we take Microsoft for example, we’ve got Vista, Windows Server 2008 is on it’s way, the focus therefore might be to evolve these products, to continue improving the user experience, improve functionality/security and focus on revenue generation. I suspect this will be similar for the likes of VMWare, Cisco etc, we have had real innovation of these platforms and the focus could therefore shift towards evolution of those platforms. Evolution in terms of revenue generation, or improvements in functionality, or locking down through security improvements or enhancements. 

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