As the millennium approached the business of the moment was a dot-com. These high-tech companies appeared to be a blank cheque to success but instead the crash of 2001 saw many ventures hit the wall.
In hindsight that hype was premature and only now could you argue that Web is really developing into the market investors had once predicted. So is the world ready for a second boom of dot-coms?
Analysts considering this possibility will do well to ask questions of the 2001 crash. What exactly went wrong? Many would suggest it was a case of empty investment in dreams and aspirations that fuelled the first boom. Innovation was the buzzword and balance sheets were ignored.
The boom collapsed in 2001, with many of the newly launched companies filing for bankruptcy. What was fascinating though is that ideas lived on and many concepts like Niche eCommerce and VoIP began their life then and are now reaching maturity.
Since the crash new technologies such as social networking and online shopping portals have revolutionised this market once more and the growth of the consumer is paramount. Many new tech start-ups have worked with the “consumerization of IT” or people power. This is more than just a catchphrase but a major rethink about technologies in the workplace and home.
In 2013 Yahoo bought Tumblr for .1 billion and Microsoft bought Skype for $8.5billion. Some may argue that these high prices are another reckless rush into dot-com hell but others disagree. These investments and others like them are build on innovative and proven business models and hard profits.
Vitally, the Internet has matured and a market is really is being actualised. In 2001 everything was dreams but now we are living the reality of the Web as a consumer environment.
Source: Pando Daily