Tech’s Comeback

CNN Money has an article by Michael Copeland and Om Malik:

A new technology boom of potentially unprecedented power and durability is spawning in all of the nation’s tech centers from Palo Alto to Seattle to Austin to New York.

The tech industry in many ways is following the classic arc of boom-and-bust cycles produced by transformative technologies of the past, from the steam engine to electricity to the automobile. Each time, the revolutionary technologythe Internet, in today’s casebrought a burst of new enterprises that were just too early and got wiped out by brutal consolidation.

For now, most Web ad spending is going to the big players, steadily adding to their accumulation of scads of cash. Google is sitting on more than $7 billion; Yahoo has about $3.5 billion. Microsoft remains the cash king with almost $40 billion on hand. A lot of that money will be earmarked for strategic objectivesacquisitions, say. But a good chunk of it will be spent in other ways, creating a slipstream that will pull many other companies along and provide strong impetus to the boom.

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Rajesh Jain

An Entrepreneur based in Mumbai, India.