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.