ORACLE’S SOLUTIONS RESONATE even more strongly in a grim economic climate, where service provider behaviors typically turn even more tentative. According to Vince Vittore, principal analyst in Yankee Group’s Anywhere Network research group, many operators respond to declining market fortunes by adopting a more conservative, wait-and-see approach to launching next-generation services. “Operators are still hunting and pecking on new services—the economy leads to hesitancy to stick your neck out,” Vittore says. “Unless you’re aggressive and forward-thinking, it’s dangerous for your career to suggest a new, innovative service. The thinking is that if you don’t stick your neck out, it doesn’t get chopped off.”

But there are already glimmers of optimism to suggest the worst may be over. Consumer spending in the U.S. appears to be stabilizing according to Gallup’s March 2009 Consumer Mood Index, with 23 percent of Americans surveyed contending that economic con-

ditions are improving—up from only 16 percent in February 2009 and more than twice the 10 percent reported in March 2008. Upper-income Americans express a similar outlook, with Gallup reporting that 22 percent of affluent consumers believe economic conditions are on the upswing, versus 13 percent the previous month and 12 percent a year earlier.

“Although all the fallout from the plummeting economy of the past six months has not been fully realized, a stabilization of consumer spending would suggest the downturn in the economy is bottoming out,” says Gallup chief economist Dennis Jacobe. “In this regard, upper-income consumer spending is particularly important. Given their comparatively high levels of discretionary income, these consumers have a disproportionately strong impact on overall spending. Further, they are the key to recovery for many upscale retailers and other businesses that serve the affluent market.” 