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The IT Industry's Red Shift Theory
Stony Stevenson writes "Sun Microsystems' CTO, Greg Papadopoulos has come out with a Red Shift Theory for IT which posits that an 'elite group of companies are consuming inordinate amounts of IT infrastructure, well beyond most other businesses, and that their demand is growing exponentially. This trend, Papadopoulos maintains, has implications not just for IT's most insatiable consumers, but for the structure of the computing industry itself. It's not just about how many CPU cycles a company uses. Papadopoulos argues that red-shift companies will enjoy exponential business growth in the coming years. Blue-shift companies — those whose processing needs aren't exploding — will grow at about the same rate as GDP, he says.'"
A hardware company says that buying more hardware is a good thing for your company. News at eleven.
(Yawn).
Qxe4
One shift two shift, red shift blue shift?
A-Bomb
The problem then is that red giants end up as white dwarfs, and no-one will do business with a dwarf!
But they used the Doppler effect to explain it, surely that little scientific reference counts for something?
This is backwards. Companies which are buying hardware are buying hardware because they already have a successful business model (or one they expect to be successful). The differentiator between successful and unsuccessful companies isn't how much hardware they buy, it's the viability of their business plan/product.
Come on, you're oversimplifying. He also says slower growing companies grow more slowly. It's that little bit of extra insight that makes the difference between ending up as CTO instead of a janitor in the modern corporate world.
1/3 of jokes get modded OT. If you get the joke, mod 1 in 3 insightful/interesting/underrated to restore karma balance.
Don't be harsh. Proactively leveraging six sigma synergies in a blue-red shift discontinuously changing ecosystem leads to a re-efficiently contracting contingency workforce paradigm tending toward the rightsize.
Only a fool would ignore the gainshare effect of empowerment strategies that insourced intellectual capital reallocation due to lean Kaizen open door management obviously creates. The mosaic effects of capital market global forward-trends account for fully 4 points share of Sun's complex-component earnings per diluted ownerstake last quarter.
With two new colors to work with, things can only improve.Equine Mammals Are Considerably Smaller
And the rate of expansion seems to be increasing from the little-understood Dark Capitalism.
Of course, eventually you need to be producing everything people use and consuming all available resources. Then, if you want to keep growing, you need to start doing something really novel (asteroid mining, that kind of thing), but that won't happen for a long time. Exponential growth is completely possible for short periods; Sun experienced it themselves in the .com boom.
I am TheRaven on Soylent News
I cannot seem to understand why people cannot see this flaw as easily as I do. Success of a company is often measured by its growth rate and indeed by its rate of increase on the growth rate (acceleration). There is a limit for EVERY market. There is a saturation point for every market. And when the health of a company is measured not by its stability or state in the market place but by "growth and acceleration" I have to wonder what drives the mentality that it's actually a good idea outside of what it does for those who buy and sell stocks on the market. (So yes, that's exactly what it's all about... duh)
So when did we all lose sight of what is good for a company? Matters like quality and customer satisfaction are no longer a consideration? And every time I hear "this company is buying that company" or "we're on a growth surge" or some other such nonsense, I have to wonder why anyone would think this sort of institutional business instability is a good idea for anyone except those who play the stock market?
Will we have to suffer another great depression before people realize that the cause of so many of our business, labor and national monetary health problems are rooted deeply in the short-sighted notion that whatever a business does it should be as a means to provide value for shareholders? I think the answer is yes because short of a disaster, people will have little motivation to see where this all leads and turn around before it's too late. And unfortunately, while one person might catch a glimpse of the future and become more sane, the people who are still insane will consume him as a means of satisfying their growth strategy. I get the mental image of a bunch of cannibals strategizing their own growth and acceleration success plans in how to consume their environment. The logic is rather unsettling to me.
There is no correlation between IT spending and productivity or profitability.
This is the same old saw that hardware firms used in the 1980s-1990s. Gartner used to say you should spend on IT as a proportion of your revenue.
But numerous studies, based on publicly available data, debunk that view as bullshit.
It's not that IT is bad -- it's just that you have to blame or praise management for the proper application of it. Which is just another way of saying "you can't spend your way through problems without thought".
NOW, there's a valid argument here, but it's a lot more subtle than the bylines. One has to dig into Papadopoulos' quotes to get the jist of this as: "you should have the management insight to take advantage of the inherent cost savings that are due to Moore's law." This has been hampered for decades due to inflexibility with the software -- something that virtualization and utility computing is seeking to fix, and an area that Sun wants to compete in. Indeed, this is a big deal.
But it doesn't mean your computing needs will skyrocket, unless your management has an insightful, productive application for all of that power. Google does (selling advertisements along side day-to-day networked computing needs), but I'm not sure the rest of the Fortune 500 has turned to apply that level of creativity to their situation.
-Stu
In the big picture of how a company is successfull, software is a tool, networking technologies are tools and the Internet is a tool. It all boils down to people and organization - individuals and the way they work together.
IT is something that can fit into the business and can empower the people to work beter - it's not a silver bulet which will magically transform a mismanaged company into a growing, thriving business.
Sorry to burst your bubble, but from someone that has been working in IT for many years, across several industries, it's my experience that the best success stories are not "IT transforming companies", instead they came from "companies that mold IT to their needs".
Red tape is an organizational problem, not a technological problem. Bringing IT in without solving the underlying problem will just result in adding new layers to the bureaucracy (been there, seen it happen, not a pretty sight).
The truth is, IT brings with it whole new time and money sinks (license control, networking/systems administration, IT security, software development and costumization, outside consultants, etc) which would not be there without IT. In truth, as many of us in IT have seen again and again, often the blind, vendor-pushed, fashion-following approach to deploying IT in a company results in wasted money and a decrease in productivity (for that company, the vendors are probably quite happy).
During the Boom years, many companies where managed by people that did not understood that technology is a tool for empowering the business, not the other way around. Countless managers let themselfs be taken with sentences such as "utilizing technology to its fullest potential", "software that can boost our capabilities even farther", "the technology we require to survive", "streamline our business the way software is capable of doing" and other such sales pitches and so let their companies be taken for wild rides, where the only ones that really profited where the vendors. Hopefully, most learned their lesson, and the latest generation of of CxOs is beter at separating the technological wheat from the chaff.
PS: Even though i'm someone which if often brought in to help clean up the mess done during one of those "wild rides" (said mess having been done often enough by the unholy association of software vendors and IT consultancies), I would much rather loose that part of my work in the future that be faced again and again with the kind of raw sewage which is all that has been left from the blood sucking feeding frenzy done by the above mention vendors and consultancies.
PPS: Yeah, i'm sour about this.
Exponential growth for a business isn't even possible
Sure it is. 2% growth is exponential.
"We returned the General to El Salvador, or maybe Guatemala, it's difficult to tell from 10,000 feet"