For those looking for some good omens in a generally bleak financial landscape, it could be found buried in the earnings reports for Microsoft and IBM.
In general, economists say the technology sector of the economy is somewhat insulated from a steep domestic downturn because it is increasingly global. Eighty-five percent of Microsoft’s revenue now comes from overseas.
With two-thirds of its revenue coming from overseas, I.B.M. is benefiting from its role in building out the infrastructure in developing nations.
The technology revolution is just beginning in the developed world. As long as American companies like IBM, Microsoft and Intel can keep advancing, the slowdown in the U.S. need not hurt their bottom line. Still, it’s pretty amazing to realize that 85% of Microsoft’s revenue comes from outside the U.S.