Silicon Valley - The New Rust Belt?
Fascinating article in NY Times on Monday re. how the software industry is no longer a "high growth" industry and may soon even become a low-margin industry.
Silicon Valley is destined to see its competitive stature erode, as new global rivals undercut American technology companies on price and increasingly wrest the lead from the United States in innovation.
More near-term support for the "graying industry" view of technology came two weeks ago from Goldman Sachs. The economy may be doing nicely and corporate capital spending picking up, but it will not help the technology industry much, according to the investment bank's survey of corporate spending plans. In 2005, corporate spending on information technology will rise less than 4 percent, the Goldman analysts predicted. "Technology looks to be firmly in the cyclical category for now," the report stated.
I wonder what this bodes for Microsoft? Are they the new Chevrolet? I doubt they're the up and coming Honda -- that crown has already been handed to open source and its ilk.
Silicon Valley is destined to see its competitive stature erode, as new global rivals undercut American technology companies on price and increasingly wrest the lead from the United States in innovation.
More near-term support for the "graying industry" view of technology came two weeks ago from Goldman Sachs. The economy may be doing nicely and corporate capital spending picking up, but it will not help the technology industry much, according to the investment bank's survey of corporate spending plans. In 2005, corporate spending on information technology will rise less than 4 percent, the Goldman analysts predicted. "Technology looks to be firmly in the cyclical category for now," the report stated.
I wonder what this bodes for Microsoft? Are they the new Chevrolet? I doubt they're the up and coming Honda -- that crown has already been handed to open source and its ilk.
2 Comments:
dude, the real point of the article is that software is fragmenting into specialized niches. Not some 'crap on big companies' thing!
By
Anonymous, at 4:40 PM
Microosoft still sucks -- theyll go down with the ship!
By
Anonymous, at 4:47 PM
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