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Friday, January 27, 2006

Techworld : Boom Or Bubble

Chris Anderson makes a good case to look at the current movement in the tech worlds as a boom and not a bubble. As he sees it three reasons are driving this:
- First, technology adoption has continued at a torrid pace (and even accelerated at times) despite the bust. The digital-media boom sparked by the iPod and iTunes has blown through even the most aggressive forecasts.
- The second reason is that the sunk costs of the dotcom era make the economics of entrepreneurship more favorable. We're now enjoying supercheap bandwidth. So, too, for storage, screens, and a host of other technologies that are benefiting from profligate '90s-era investment and research.
- With reducing prices – read this - one can can start a company today for a tiny fraction of what people spent five years ago
. In this new environment, startups can grow organically. That means less venture capital is needed - and that's the third reason this boom is different.
So there you have the recipe for a healthy boom, not a fragile bubble: a more receptive marketplace, lower costs, and lighter pressure from investors, argues Chris. I definitely see an upswing in activities in the market, though enterprisewide adoption of new technologies look weak.Anderson captures the new dynamics in vogue governing the techworld.The key thing would be to see how to make this broadbased – for example, opensource foray into the enterprise is very limited, the promised internet’s disruptive effects , all need to happen now. The role of the investors can not be underemphasised from the supplyside and this should be felt at all happening places in the world like in india, fast becoming the technology epicenter. At the same time periodic checks that good sense prevails need to be taken. There is also an acute need to make enterprise scale changes happen in the industry to sustain the momentum - one that can provide measurable vaue to business.

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Sadagopan's Weblog on Emerging Technologies, Trends,Thoughts, Ideas & Cyberworld
"All views expressed are my personal views are not related in any way to my employer"