Having been in the midst of the both the dotcom boom and bust, I get a sense that technology companies will generally fair better than most during this current downturn. And with the likes of Google prepared to invest some of its many billions to keep the venture capital flowing then hopefully the pace of innovation seen in recent years will keep momentum too.
The dotcom boom saw technology companies grow at staggering rates due, in a large part, to ‘irrational exuberance’ that fuelled an unrealistic bubble. There were undoubtedly inflated expectations of what the web and its associated developments could deliver in the short-term. However, there was a lot of substance in many of the ideas at that time but some serious over-estimations of how quickly they could be realised.
Technology companies felt an enormous amount of pain in the bust period, which started in earnest in 2001, and many were still hurting 4 years on. The company I was working for during most of this period shed a staggering 120,000 jobs in wave after wave of redundancies. Ironically that worked in favour of the Enterprise Content Management deployment I was involved in at the time as consolidation of the company’s thousands of web and intranet sites was well overdue and couldn’t be argued with in those economic circumstances – So there are often upsides even in the worst of circumstances.
The benefit and potential of web technologies has very much been proven in the years following the bust and right now I’m certainly seeing signs of organisations being more prepared to spend in this area to get more efficient and competitive. A number of digital agencies I’ve been speaking with recently are reporting a rush to digital and business growing rather than contracting.
Looking further afield, the launch of Windows 7 will be interesting. Like many, I saw very little point in upgrading to Vista and have not used a business or home machine with Vista installed on it since its release at the beginning of 2007. So how is Microsoft going to make its latest OS more attractive, particularly at a time when both organisations and consumers are cutting spending? One of the more recent announcements that seems to have attracted interest is that Windows 7 will enable you to remove Internet Explorer. I guess that just shows the strength of feeling about Microsoft monopolising the desktop environment and eagerness to have more choice. To be honest I haven’t even given IE8 a single thought with regard to my home pcs.
With the steady development of web based applications, like Zoho, and companies like Dell offering low cost pcs with Ubuntu (the Open Source operating system) it’s looking easier and easier to live without Microsoft. Although when I look at the level of indoctrination of younger generations Microsoft has achieved with its shrewd product positioning in education then it looks like its domination of the desktop is assured for a number of years to come.
Having worked for a hosted services company, I am a ‘Software as a Service’ (SaaS) advocate and it’s clear that observers and commentators are heralding new waves of interest in cloud computing, web 2.0 and virtualisation as organisation come under greater pressure to cut costs.
Personally I still believe the biggest barrier to broader adoption of SaaS is the idea of someone else having responsibility for your data. However, when you look at the poor security and privacy processes and lack of business continuity planning in many organisations, both large and small, they’d be doing themselves a favour in adopting SaaS. Sometimes though, SaaS providers do themselves no favours in perpetuating unsubstantiated claims as illustrated here in the 80% myth.