But microeconomic miscalculation is more to blame than macroeconomic stagnation. Many vendors are under-performing because they made bad business decisions or set unattainable goals. And consider that Commerce One and Ariba are among the smarter and sounder vendors. Meantime, the economy is holding its own. The gross domestic product is still growing modestly.
Unemployment is still statistically negligible.
Consumer prices remain in check. As the market caps of technology vendors sag following each earnings warning, Scott argues, customers are questioning those vendors' staying power, even if their products are considered top notch. E-businesses are going so far as to choose vendors and technology but are reluctant to pull the trigger on contracts. Earnings setbacks and declining market caps don't make products from the likes of Commerce One and Ariba any less integral to your enterprise. You must, of course, assess your technology vendors' long-term prospects, but don't measure vendors as Wall Street does on the size of their latest quarter.