Trying to sell into the state governments? Avoid these states

State governments are struggling to come up with budget to pay for much of anything these days.

Does your company sell to state governments? Most likely, the answer is 'Yes.' If so, you might find 2008 a bit difficult to sell to these states with serious tax shortfalls. California, Arizona, Washington D.C., Nevada, Florida, Rhode Island, Georgia, New Jersey, Delaware, and Tennessee: Housing problems and a range of other issues have conspired to drain tax coffers this year.

Take California. The state is $17 billion in the hole, having seen a 10.58 percent decline in home values (and associated tax revenue). The budget stands at $144 billion, which undoubtedly contains a fair amount of IT dollars.

States are using a variety of strategies to bring down costs, all but freezing budget growth. Open source can offer ways to save money for state governments, but it's going to be a tough sell into state governments even with open-source products in 2008.

Tech Culture
About the author

    Matt Asay is chief operating officer at Canonical, the company behind the Ubuntu Linux operating system. Prior to Canonical, Matt was general manager of the Americas division and vice president of business development at Alfresco, an open-source applications company. Matt brings a decade of in-the-trenches open-source business and legal experience to The Open Road, with an emphasis on emerging open-source business strategies and opportunities. He is a member of the CNET Blog Network and is not an employee of CNET. You can follow Matt on Twitter @mjasay.


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