For tech, a tale of two downturns

Is tech falling apart or not? Depends on what kind of company you are. A global economic tempest continues to is gather force, as businesses struggle to get credit, consumers fret about the job market, and spending slows. Tech is already feeling the effects; the younger and weaker companies are laying off workers and selling off assets while the stronger ones are taking a wait-and-see approach and pleading for calm. To use a sailing metaphor: Those on less-than-sea-worthy vessels are tossing the heavy stuff overboard to stay afloat. Those on sturdier ships hope to ride it out. Of course, if a deep global recession hits, no one will be totally immune; when customers spend less money, companies sell less stuff, and earnings and stock prices naturally suffer. "I think this downturn feels more like uncharted territory," said Sandy Carter, an IBM vice president who works on software that helps companies analyze their performance. "It seems more deep, more impactful and more global."