All the tech investments were due to public companies and IPO-wishful companies falling all over themselves to have “competitive advantages” so that they could claim higher stock prices.

That was a bubble onto itself. They were spending other people’s money.

Private companies are best to invest slowly and incrementally to take advantage of dropping prices of technology.

For example companies who invested in custom ERP or HR systems overpaid (and they will continue to overpay in maintenance and customization) because new off-the-shelf software is better.

If I owned a private company that were generating loads of cash (like Cindy McCain’s company) I would not spend it willy-nilly on unproven tech.

Would you upgrade hundreds or thousands of PCs when Windows 2000 or XP is good enough?

We are entering a new back-to-basic paradigm where operating cash flows (not wishful anticipated revenues) determine values of businesses.

Tech spending will shrink but it won’t be Obama’s fault.