Tech Spending Will Rise Again
from the so-they-say dept
Red Herring has a prediction saying that as the economy begins to turn upward again, expect tech spending to heat up greater than other areas. This goes against many other predictions which have said to expect tech spending to remain slow for a while. The reasoning here is that companies actually do need improved technology in order to grow, and they can only wait so long. Of course, there is a technology glut out there of excess equipment, so I wonder how much of the new technology spending will be dampened by companies buying used equipment for pennies on the dollar.
Comments on “Tech Spending Will Rise Again”
But
1. Is there really such an infinite supply of leftover equipment from the dot com era? It’s like my parents claiming that women who are eager to become housewives can be found easily anywhere, due to the post-WW2 shortage of bachelors. No, there aren’t.
2. Even if there was a glut, what is the labor cost of maintaining older, crash-prone machines with failing hard drives, CD drives, monitors, everything?
Re: But
Of course the supply isn’t infinite, but it hasn’t dried up as much as the post-WW2 housewife wannabes.
I still see tons of auctions on eBay that say the equipment came from a failed dot com, downsizing telecom, or somesuch. Plus every time I look at DoveBid there’s a major trashed technology company being liquidated (today, 360Networks, for all your long haul fiber needs, tomorrow, NextCard, for all your random computer hardware needs).
I actually just bought a Sun from one of those auctions. I would’ve bought a new one from Sun (at 10x the price, and about 2x the performance), but there was such an ample used supply there was no need.
As to the cost of maintaining older equipment, the equipment I’ve seen people pick up are higher quality than the new stuff they would’ve bought otherwise. For instance, we’ll pick up a used Cisco switch rather than a new Netgear one. The Cisco switches are actually easier for our network admins to monitor and maintain.
What’s more, in the past I saw a good deal of untouched equipment for sale.. Stuff the liquidated firm hadn’t even opened yet. That supply seems to have pretty much dried up though.
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The south shall rise again!