In a keynote at Symantec’s annual user conference, Ajei Gopal presented some key data points to validate the impending surge in tech spending. According to him, the IT sector as a whole is on the brink of a major innovation and spending cycle. He also presented a chart showing the IT-investments-to-GDP ratio growth overlaid with the advancements in computing and echoed the unabated progress in hardware; commoditization of memory, disk, CPU devices have reduced the prices by factor of thousands with net increase in ROI.
If this is an indicator of change, we are also seeing spurt in funding activity which is a strong supplementing signal.
This is also changing the rules of entrepreneurship and the startup culture, with incubators like “Y Combinator” seeding companies for as little as $6,000 while trying to replicate the success of Flickr and del.icio.us (both got acquired by Yahoo); wherein Google is saying that the whole valley is the research lab and then acquiring companies for a little change.
Tags: Web 2.0, Symantec