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Joe McKendrick has made the case on his FASTForward Blog that Web 2.0 may be "recession-proof". Similar claims have been made by multiple industry watchers about SaaS, as well. So what's so special about Web 2.0?

McKendrick cites some good examples; newly laid-off workers can use social networks to find new positions and also quotes an analyst who sees significant value in social networks and blogs from a marketer standpoint.

The claims about SaaS being recession proof often center around the idea that outsourcing generally saves companies money, so companies facing financial woes are likely to turn to technologies like SaaS. Computerworld blogger Mark Hall quotes Matt Smith of LiveOffice as saying, "Any type of recession is positive for us."

But MGI research had an opposite view in a December post on Seeking Alpha, in which it pointed out that SaaS may indeed prove vulnerable to recession because companies might downsize their workforces, leading to a reduction in the number of user seats they seek and many companies' lack of efficent revenue infrastructures.

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Posted by: Franck Martin at February 17, 2008 09:03 AM | Permalink