The Silicon Valley Bank Collapse: How Will Your Tech Spending Be Affected?

Not a depositor or investor in SVB? Changing outlooks, combined with inflation, might still result in reduced IT spending in your neck of the woods. Learn how third-party software maintenance can help.

You don’t need a big tech portfolio to be unsettled by what went down at the Silicon Valley Bank (SVB) over the last week.

The ripple effect of this world-shaking event is real, and the outcome will impact IT departments in several ways. Looking ahead, it’s easy to predict one highly relevant business outcome: companies will be a lot more restrictive with their software spending.

While it’s hard to say precisely what the business landscape will look like post-SVB, the conservative spending trends and technology outlooks that will stem from it — combined with inflation — are going to require some adjustments to the way IT departments allocate and utilize their funds.

Examining the Business Impacts of the SVB Collapse

It’ll be a while until the business world sees the specific effects of the SVB collapse. However, it’s fair to assume that certain reactions are already well underway, according to Moneycontrol. The publication forecasts longer sales cycles and delays in the actual budget cycle for this calendar year.

“This comes amid a challenging macro environment when companies are pointing out extended cycles and increased cost optimization deals,” Moneycontrol states.

The report also indicates institutions in industries such as banking, insurance, and — due to ripple effects from those sectors — technology, may see an immediate impact. Based on that, it’s not hard to imagine a more conservative technological and financial outlook shifting IT budgets across industries.

First, with companies already spending up to 90% of their IT budgets simply keeping the lights on, cuts to tech spending can ultimately equate to operational problems. And flipping this the other way, it’s easy to see how startups, stuck in quagmires due to disappearing banks and increased cost optimization deals, might need to pass added costs on to consumers simply to survive.

Then there’s innovation, which inflation has already stifled in recent months. Simply put, the ability to do compelling new things also suffers when tech budgets and outlooks tighten up. Technology doesn’t just fuel growth or innovation; it’s a critical enabler of both.

Finally, organizations with shifting tech budgets and innovation needs — including those brought on by a unique bank collapse — will likely also require technology support and guidance if the status quo will no longer see them through. While not necessarily a direct outcome of the SVB closure, it’s a need worth anticipating as ripples continue to roll through the markets.

How Third-Party Software Maintenance Can Help Sidestep Financial Uncertainty

In this business climate, customers need to do more with less — without putting mission-critical systems at risk. Now, more than ever, it’s crucial to optimize your current tech stack to maximize your budget. Third-party software maintenance (TPSM) can help with that goal.

A way to sidestep IT cost concerns. TPSM helps organizations avoid the escalating costs of vendor renewals and the disruption of forced upgrades, providing greater budget predictability and freedom of choice.

More choice over your upgrade path and tech stack. Because TPSM extends the viability of IBM® products, including maintaining legacy software covered under perpetual licenses, enterprises can maintain systems on their own terms. This prevents unnecessary migrations or bundled add-ons while ensuring uptime, compliance, and security.

You Don’t Have to Go It Alone

Third-party software maintenance providers have gained ground in enterprise tech environments because they fill the gaps inherent in vendor-driven models.

With Origina, that means more than ticket resolution. Customers are paired with dedicated engineers who develop a deep understanding of their unique environment — not just whichever technician happens to be available. This continuity ensures faster resolution, more accurate guidance, and proactive recommendations that align with your business goals.

Origina’s global independent experts bring decades of IBM® experience and a commitment to helping your organization succeed. They don’t stop at fixing break/fix issues; they work alongside your teams to strengthen performance, mitigate risks, and extend the value of your software investments.

That level of expertise is an asset in strong economic times. In today’s uncertain market, it’s an invaluable source of technical knowledge that supports both operational resilience and long-term strategy.

Facing Uncertainty with Confidence

It’s impossible to predict every outcome from the SVB collapse. But one thing is clear: when world events directly impact IT budgets, enterprises need options beyond vendor lock-in and forced spending cycles. Third-party software maintenance gives organizations flexibility, stability, and expert guidance at a time when both budgets and roadmaps are under pressure.

Learn more about how Origina’s independent experts can support your IT strategy.