The credit crunch has affected the technology and Internet markets in many ways. There have been some irreversible changes since 2008, with many popular services closing down forever. Here is our round up of the effects of the credit crunch so far. Credit Crunch Hits Tech and IT Jobs Oct 11, 2008  The credit crunch has so far been most prominent in the banking and finance industries. Many internet companies have spend the past months in a state of denial, falsely beleive that technology stocks are somehow immune to the pressures of the global economy. But all that appears to be changing rapidly. News came out this week that eBay may be slashing thousands of jobs, with some reports saying that up to 10% of the company’s workforce will be made redundant. Many eCommerce analysts are still saying that the internet is a growing sector, with eCommerce set to grow by 20% over the next year. However, news from eBay seems to be contradicting the tech analysts predictions. A few weeks ago Eric Schmidt, Google‘s chief executive, dismissed the idea that his company could be in for difficult times if a deep recession took told. Google is increasingly reliant on the advertising industry [...]

OK, this is an over the top, sensationalist title. But today a cash machine at HSBC failed to give me my money. So I headed over to Barclays to withdraw some cash, and that too was down. I popped inside to ask what the heck was going on, and all cash points and instore credit/debit card payment systmes were offline. No one knows why. Luckily they were happy to give me money in the old fashioned way, over the counter, so I could get my lunchtime coffee and chocolate cheesecake (I am on a diet, of sorts). But, it got me thinking. Viruses today seem to be as much about disrupting services as about stealing information. What if someone made a virus which was soley designed to bring down world payment systems? It would make the credit crunch look like a teddy bear’s picnic. All spending would cease almost immediately. Many companies no longer accept cheques. Cash will be locked up in bank vaults, with queues a mile long of people trying to get at their cash. And when they do, how much will they withdraw? £20? Unlikely. It will be more like £200, to avoid having to queue again. [...]

The round up of the days main headlines from Bloomberg. The creidt crunch appears to be biting deeper and further as more warnings are seen across the whole spectrum of the global technology sector. Communications, hardware, microchips are all suffering. BT Will Cut 10,000 Jobs This Year; Lower Second-Quarter Earnings Reported BT Group Plc, the U.K.’s largest phone company, aims to cut about 6 percent of its workforce in the year through March to improve profitability after reporting a slide in second-quarter earnings. Nortel May Go Bankrupt as Cash Dwindles and Asset Values Decline, RBC Says Nortel Networks Corp., North America’s largest maker of telephone equipment, may go bankrupt by 2011 without a cash injection from the government or financial backers, RBC Capital Markets said. Sprint Offers Buyouts to Employees as Mobile-Phone Customer Losses Mount Sprint Nextel Corp., reeling from the loss of 1.1 million contract customers last quarter, plans to cut costs by offering buyout packages to the phone company’s workers. Dell Tumbles After Being Added to Goldman Sachs’s `Conviction Sell’ List Dell Inc., the world’s second-largest personal-computer maker, declined in Nasdaq Stock Market trading after Goldman, Sachs & Co. added the company’s shares to its “conviction sell” list. [...]

The global recession is undoubtedly going to affect the IT industry, as it is affecting all market sectors. We have already seen warnings from Google, Yahoo and eBay, with reductions in annual growth rates. However, this does not mean that IT opportunities will dry up completely over the forthcoming months and years, as there are still plenty of companies that rely on innovation, and research and development, an will require new blood to bring in new ideas. One group of IT professionals that may experience an increase in demand are system integrators and consultants, as mergers and acquisitions across the banking sector with result in the need for various separate accounting and trading systems to be synchronised. All companies aim to operate just one accounting system across the board, however vastly different technologies often mean that upgrading the main accounting system may require server upgrades, and reconfiguration of all satellite systems, not to mention business contingency and disaster recover considerations. All of this could mean that there will be a lot of new business in the IT sectors once companies decide how they are goign to restructure and realign their businesses. Another growth area is likely to be the “pay [...]

Cyber criminals are quickly taking advantage of the current ecomonic crisis. There has been a sharp rise in phishing since the collapse of several international banks nad trading houses (Lehmans, Merril Lynch), and the news of amalgamations, acquisitions and takers of several others (including Natwest, Halifax / RBS (HBOS) and Northern Rock). Phishing is simply the trick used by criminals to steal customer information by setting up fake websites, and asking people to confirm their online banking details. Due to the credit crunch and chaos in the markets, some customers are keen to ensure that their money is safe – so as soon as theu receive an email telling them that they need to confirm their online banking details to ensure that their funds and transferred to the new bank, they click on the fraudulent links and give their personal data to the criminals. UK banking groups have revealed that phishing attacks were up more than 180% this year, with many new targets. Due to the fast paced changes in the banking world, where many institutions have changed hands overnight, criminals and fraudsters have practically had a buffet of opportunity to con, deceive and steal on the web.. “Scammers are [...]