by cube » Mon 27 Oct 2008, 12:09:07
$this->bbcode_second_pass_quote('Jotapay', '.')..
I don't think that is an accurate assessment. I think the current state of information technology is not like a "bubble". Most companies that I know have a bare minimum of IT staff to run their current operations. There are no more catered free-lunch Fridays, foosball tables and refrigerators full of Snapple in the break room.
I've never worked in IT but I know some people who do so oh boy do I have stories to tell. There's a company called RealNetworks in Seattle which has a bowling alley in the basement.
*no joke*
During the dot com boom money was coming in so quick they were running out of ideas on how to spend it.
I agree with Jotapay, that would not happen today.
//
However I still think there's a tremendous amount of fat to cut.
Even IT companies that are profitable today may not be so in the future. Take google for example. How much is a "cost per click" worth?
Maybe it's worth 5cents today but in the future businesses might decide it's only worth 1cent.
Advertising dollars is the bread and butter of web2.0 however there is still a great debate as to exactly how much is internet advertising really worth?
My gut feeling says the true answer will leave MANY investors disappointed.
// add on:
BTW the bowling alley is no longer used. No employee wants to earn a reputation of being a slacker. It sits quietly as a reminder of a glorious past much like some archaeological ruin of a long abandoned great civilization. ^_^