Just a couple of days ago I questioned the language used by Gartner in describing a "worst-case scenario" for tech spending that adds up to a 2.5% decline in IT budgets next year. I'm an optimist by nature, I like what John Chambers and Tim O'Reilly are saying about the role of IT in working our way out of this mess, but I also read my Roubini and I can imagine some worse worst cases.

Anyway, businesses measure reality in dollars, not projections, and actions speak louder than words.

The party line in the tech industry is that businesses will keep spending on tech because it makes them more efficient. This, in turn will help them survive the downturn. We're not sure whether to file this under irony or hypocrisy, but SAP is - you guessed it - halting new spending on information technology. "We will review all planned investments in IT equipment, hardware, software, facilities, and company cars, as well as internal IT projects," the co-CEOs wrote in the email. "Do not order any new equipment at this time."

The email captures the uncertainty at SAP - uncertainty that is no doubt shared by other companies in the industry. "No one at this point can say how markets and customers will react in the coming months," the email says. "In this turbulent economic environment, we will be giving added attention to sustaining our margin and earnings health."