Feb 3, 2008

The big "R" word & Tech!

The fear & pain of last "dot com bubble" recession is still fresh in people's mind and now this "sub prime mortgage crisis" is creating yet another recession in this decade!

Wow, 2 recession in a decade! It's too bad...

What is the difference between these 2 recessions? 1st one is about the job and 2nd/current one is about home. So, obviously the 2nd one is going to be more painful than the previous one...

I was wondering about what this means to the bayarea tech world? It's going to have an effect but how much is not clear yet... IMO, it will have minimal impact on the cloud computing.... Many enterprises may accelerate off shoring some of the internal IT into Cloud Computing. Bayarea tech economy may not be affected much, but never know...

I recently attended a couple of legal seminars about incorporating companies and now the buzz is that incorporate the startups in places like "Cayman Islands" so that startups has many options for exits. (Bombay stock Exchange, Hong Kong Stock Exchange, Shanghai or Nasdaq)

This "offshoring the incorporation" is very interesting. It used to be just Delaware, C-Corp and it looks like, not anymore!

The bottom line is that tech will suffer, cloud computing may not get affected much, bayarea may be ok and there will be a global tech impact.


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