Oracle is up, but is the technology economy down?

Oracle is forecasting a slowdown in technology spending. Could this be good for open source?

Matt Asay Contributing Writer
Matt Asay is a veteran technology columnist who has written for CNET, ReadWrite, and other tech media. Asay has also held a variety of executive roles with leading mobile and big data software companies.
Matt Asay

Oracle knocked another quarter out of the park, with fourth-quarter profit up 27 percent and revenue climbing 24 percent to $7.2 billion. Life is good, yes?

Well, maybe. Oracle President and CFO Safra Catz indicated that she is expecting a tough summer quarter, with tightened technology spending on the horizon. This, coupled with RIM's quarter, which was strong but below analyst expectations, suggests that we may be in for a long, hot summer.

Yes, open-source companies and software should fare well in a down economy as buyers search for bargains. But in such an economy, buyers are also more likely to look to stay with existing vendors and shave costs there, rather than introducing new vendors. It should prove to be an excellent time to separate the wheat from the chaff.