SOA money crunch will drive changes...good and bad

Good ideas are good ideas, down economy or not

One of the not so fun things that is going on right now in the world of SOA is that some of the smaller SOA and cloud computing players are having their funding pulled back. This is causing implosions of entire companies or crippling layoffs.

The VCs just do not have the money they had last year, due to issues with the credit markets or their investors pulling out of the funds. So, less-funded VCs are scrambling now, attempting to figure out which companies are likely to make it and which are not, and adjusting their investments accordingly. That's just the way it goes, and I've been on both sides of the table in my career.

So, what will happen? Those companies that have not found their market, no matter if they indeed have value in the market, will find they are crippled or, worst, shut down completely. Some may appear on the other end of this crisis, while many will just disappear. So, you'll have some SOA tech leaving the market and other SOA tech unable to spend what they need on R&D and marketing, thus the products stagnate.

I suspect that at the very least some of the better talent in those companies will exit, looking for other opportunities that have more certainty. While you would hope to keep the better players, those more savvy in the ways of high technology have learned when to walk.

If there is any silver lining in this cloud, it's the fact that we tend to have some of our better ideas during times like this. If you look at Twitter, Digg, and other hot Web properties today, many of them started after the tech bust earlier this decade. Indeed, you find that the back story is that they lost their day jobs and started working on something that they were more passionate about. Good ideas are good ideas, down economy or not.

I suspect that the same thing will happen in the world of SOA and cloud computing, as more bright people out there have more time to think. As I've mentioned before, we have many SOA issues that still need addressing, and innovation always has value.