Yes, Virginia, Tech Spending Does Drop in Recessions

Some cheerful chatter out there about how tech spending won’t drop in a recession because companies need computers, Blackberries, etc., as much as they need, say, electricity. Keep dreaming. Tech spending got smashed in the last recession, and it will get smashed in this one.

Evidence? This chart produced by the late, great Merrill Lynch analyst Steve Milunovich. (No, thankfully Steve is not dead. He’s just left Wall Street for public relations). The year-over-year growth of tech spending is the fat blue line. Recessions are shaded grey.

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