No slowdown for the U.S. tech industry

The rest of the economy may be going to hell, but American tech companies are still going strong. Last week’s article in Network World featured some of my thoughts on why tech is holding up, and whether we’re headed for a repeat of the early 2000’s recesssion that started the dot.com crash.

Why might this downturn different from the dot.com days? From the article:

“Back then, company value was based on the stock price and now it’s based on revenues,” Allen says. “We used to talk about the New Economy. Now it’s the Real Economy. . . . You see over and over again that the financial results in the tech industry are based in reality. They’re not based on speculation about share prices or hopes that you can monetize visitors to your Web site.”

I go on to talk about how Enterprise 2.0 and analytics are hot areas for investment growth, how the U.S. IT labor force is larger than its ever been in history (including during the dot.com days), and how there’s real money behind these trends. It sounds like the happy days might be here again. Or maybe today’s days are even better, because they’re no longer based on fantasy (except for the multi-billion dollar online role-playing games industry, of course…).

Network World 4/25/08: “No slowdown for U.S. tech industry”. Also published on CIO.com.

This entry was posted on Sunday, April 27th, 2008 at 6:15 pm and is filed under IT & Business, Media appearance. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

2 Comments so far

on April 29, 2008 at 6:20 pm No slowdown for U.S. tech industry « USF Business School Media Feed wrote:

[...] commentary at http://jpedia.org/wp/archives/49 Venture placements easing in the quarter [...]

on May 4, 2008 at 5:06 pm Tiago Alves wrote:

Hi Prof Allen, quick note to let you know that the Web 2.0 panel is now available on the podcast site: http://usfmbapodcast.com/2008/05/04/30-web-20-panel-part-1/ Thanks, Tiago

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