Can tech companies withstand hard times?

How will Silicon Valley make out if the economy slides into recession? Tech suppliers expect to be hit hard. But big winners could quickly start to emerge from the chaos, say tech industry analysts. With credit scarce and job cuts mounting, consumers and businesses have begun adopting a cautious approach to tech spending. No one will escape the unfolding economic slowdown, Microsoft CEO Steve Ballmer told reporters in Oslo, Norway, this week. "I think one has to anticipate that no company is immune to these issues, " Ballmer said. Yet some tech companies are better equipped than others. Google, for instance, which dominates search advertising, should hold steady so long as Web users continue to shop, socialize and do research online. But Yahoo, the leader in brand advertising, could be vulnerable as advertisers trim budgets for image ads. IBM, Hewlett-Packard and Oracle can hunker down with cash pouring in from a diverse array of corporate and government contracts; they also stand to earn billions helping the credit industry reconstitute itself.