The New Tech Bubble – How Ugly Could It Become?

The New Tech Bubble – How Ugly Could It Become?

In light of the recent market correction and increasing chatter about a new tech bubble, how likely are we to suffer a meltdown on the scale of, say, the 2000 dotcom bust? Despite some frothy if not downright gassy valuations, as well as some stubbornly profit-free strategies at notable private and publicly-traded companies, I believe the situation is quite different this time around.

A number of potent and probably irreversible megatrends are underpinning continued growth of consumer and enterprise tech for some years ahead. Nonetheless, while we continue to see some entrepreneurs, VCs, investment bankers, and investors bidding up valuations to laughable levels, or giving some companies a pass on delivering actual ROI in financial terms, we shall not be entirely free from risk.

The Tornado in SaaS B2B – Experiencing the Agony and the Ecstasy

The Tornado in SaaS B2B – Experiencing the Agony and the Ecstasy

Today Tornado winds seem to blowing in SaaS business applications, where Salesforce dominates today, and companies like Workday and NetSuite are also growing rapidly. However, in the past month or so these companies and others like them have been shorted by investors unhappy with their lack of profitability. Interestingly, the Tornado is the one stage of adoption where a growth-at-all-costs landgrab economics approach actually make sense – to a degree. However, CEOs and management teams must demonstrate better commitment to profitability, and communicate their strategies to achieve it much more effectively than they are doing today.

LandGrab Economics: Making Sense of the Facebook-WhatsApp Deal

LandGrab Economics: Making Sense of the Facebook-WhatsApp Deal

The price paid by Facebook for WhatsApp caused widespread puzzlement and criticism from analysts and investors who wondered how on earth the company could conceivably offer $19bn for a company with 450m users but virtually no paying customers. This article describes the “landgrab economics” mindset that caused Mark Zuckerberg to take this step, and leaves readers to judge based on many pros and cons.

Everyone’s on IBM’s Case – What’s the Best Response?

Everyone’s on IBM’s Case – What’s the Best Response?

After more than seven quarters of lackluster results IBM’s performance and prospects are under the market’s microscope. Today the company has become a value stock. How can the company overcome its chronic growth crisis and become relevant in the cloud era? In an open letter to CEO Ginni Rometty and the IBM board, I propose five best practices that the company needs to adopt, following three key principles to guide the management team’s thinking.

Changing of the Guard – Part II

Changing of the Guard – Part II

Global IT systems companies like IBM and HP play an invaluable role for enterprise and government customers as well as for the whole ecosystem of software and hardware vendors, and systems integrators. This new article describes how the membership of this select group is evolving as a result of the growth of analytics, mobile, cloud, and social.