Are Information Technology's Glory Days Over?

Hugh Pickens writes "The NY Times reports that computer science students with the entrepreneurial spirit may want to look for a different major, because if Thomas M. Siebel, founder of Siebel Systems, is right, IT is a mature industry that will grow no faster than the larger economy, its glory days having ended in 2000. Addressing Stanford students in February as a guest of the engineering school, Siebel called attention to 20 sweet years from 1980 to 2000, when worldwide IT spending grew at a compounded annual growth rate of 17 percent. 'All you had to do was show up and not goof it up,' Siebel says. 'All ships were rising.' Since 2000, however, that rate has averaged only 3 percent. His explanation for the sharp decline is that 'the promise of the post-industrial society has been realized.' In Siebel's view, far larger opportunities are to be found in businesses that address needs in food, water, health care and energy. Though Silicon Valley was 'where the action was' when he finished graduate school, he says, 'if I were graduating today, I would get on a boat and I would get off in Shanghai.'"

Comments

Tehnology evolution goes in streaks

[HangingChad]

His explanation for the sharp decline is that 'the promise of the post-industrial society has been realized.'

Evolution and transformation in technology doesn't happen on a linear time line. It goes in streaks, followed by times where the previously disruptive technologies retrench and normalize. That lasts until the next transformative technology comes along.

Just because we're in a phase of technology normalization doesn't mean it's going to stay that way. I think he's taking kind of a short view of tech history.

Re:What would that do

[koxkoxkox]

Why is it moderated as troll ? It is NOT good advice to tell people : "China is where the business is, go there and you'll be rich".

Think about the reasons why a company would want to hire you instead of a local engineer : you don't speak mandarin well, you don't understand the culture, you often ask for a bigger salary... Some people do really well in Shanghai, but it is not easy.

Re:good riddance

[elnyka]

Exactly - he's only talking about people with "entrepreneurial spirit", i.e. those people who only care about getting as filthy rich as possible, as fast as possible, and not about working in an industry they enjoy. If they all decide to piss off to China then good luck to them.

Your definition of "entrepreneurial spirit" is very, uhmmm, strange to say the least. It is as if "getting as filthy rich as possible" and "working in an industry they enjoy" were somehow mutually exclusive. They are not.

As surprising as it might seem to you, it isn't a black and white thing. The most successful entrepreneurs are those who make it big in doing what they enjoy. And entrepreneurial spirit is not necessarily driven by the desire of (what some ideological tards consider as) obscene financial success. If you are a good entrepreneur and do something that you like well, financial success will almost inevitably follow.

Surprising, I know!

As a HS sophomore, I was told to not major in CS

[VampireByte]

At age 15 my college plan was to major in computer science. This was in 1978. My father had me meet with some people who worked in the field. They all told me to find another interest, that by the time I graduated from college there would be nothing to do... all the computer programs would be written, all maintenance would be automated, etc. Lucky for me I snicker at crusty old fuckers, ie. anybody 20 years older than my current age.