The downturn in the economy has taken its toll on libraries. Even in the best of times, most libraries have to work with budgets that are barely adequate to support their essential activities. In these recent months, the recession has subtracted significant funds from the parent organizations of many libraries: city, county, and state governments; public and private colleges and universities; schools; and corporations. In this article, the author expects that this harsh economic climate will make an impact on the library automation industry and will likely force many libraries to reconsider the technology projects planned for the next year or so. However, he does not think that tight budgets necessarily have to mean that all new technology projects should be set aside until brighter times. It's possible that innovative use of technology might provide the most effective way for a library to carry out its objectives with fewer overall resources. The author describes several trends that favor reduced costs for library automation. These trends include software as a service, consolidated automation environments, and increased use of open source software.