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Is Phoenix the Next Silicon Valley?

SpicyBrownMustard writes "There's no secret to a rising level of 'Silicon Valley fatigue' lately, and the new reality show certainly isn't helping. And with hacker hostels packing in twenty somethings fueling the 'it's okay to fail' incubator culture that now is actually hurting startups, it's no wonder weariness with the culture is setting in. Forbes.com asks the question: Is Phoenix The Next Silicon Valley? The article covers a startup with a couple names you might know, who picked Phoenix due to its much lower cost of living and different quality of life. The startup's CTO, 'explains that having so much more financial freedom lowers the stress associated with working for a startup, as he can enjoy work/live balance.' Their location certainly didn't hurt fundraising, as they managed $2 million in seed capital. Are we indeed moving on from Silicon Valley for tech startups?"

25 of 555 comments (clear)

  1. LOL by Anonymous Coward · · Score: 5, Insightful

    Phoenix ?!? Has anyone ever been there?
    This is pure long-shot PR from someone with real estate interests..

    1. Re:LOL by BorisSkratchunkov · · Score: 4, Funny

      Maybe it'll be re-born!

    2. Re:LOL by xevioso · · Score: 4, Interesting

      I can tell you where the next Silicon Vally is, and you folks down there in promoting Phoenix won't want to hear it:
      San Francisco.

      Not only are people not wanting to move out of California, they are moving to the only place even more expensive than Silicon Vally, which is good old San Francisco.

      http://www.sfgate.com/business/article/San-Francisco-office-sales-booming-3750956.php

      The reason is because the talent is here, and the talent WANTS to come here. Young 20-somethings who are generally creative and technology-oriented don't want to move to Phoenix because 1) It's too hot and 2) It's too conservative.

      Sorry SV wannabees...San Francisco is the place to be.

    3. Re:LOL by aaarrrgggh · · Score: 3, Insightful

      The factors that are always cited in Silicon Valley's success are things like cultural openness, strong public schools and exceptional universities, mild weather, cultural acceptance of taking risks and failing, local venture capital, etc. Phoenix fails on pretty much all counts. Austin has a couple going for it, but is surrounded by Texas. Kansas City is pretty unlikely (Maybe Lawrence KS has a chance though...?). New York will never create that culture, but it will always be a finance/fashion mecca.

      It is interesting to look at the things that made Chicago, Detroit, Columbus, and New Orleans hubs in their day by comparison.

    4. Re:LOL by Grishnakh · · Score: 3, Interesting

      I live in Phoenix (actually Tempe, right next door). I've lived here since 2000, so I think I know something about it.

      This town is a dump. The idea that hordes of techies and young people are going to want to move here to suffer through 115-degree weather is just idiotic. There is no culture here, very few decent places to eat, and the place is full of meth-heads and illegals. It's been rated by several places as the worst city in America to drive in, mainly because it's so chaotic and because there's no consistent driving style (the frequent road-rage shootings don't help). The local economy is shit, and violent home invasions are common. There is some tech industry, both in the north of the metro area and the southeast part, with Intel and Microchip having substation presences, along with some shitty defense contractors like General Dynamics where engineers go to die. The weather is horrible; it wasn't that bad 12 years ago, but it's gotten hotter, and stays hotter for longer now. You can't bicycle here (one of my favorite outdoor activities) because of the heat most of the year, and also because of the dangerous speeding drivers and lack of safe bike paths. And there's really nothing to do here except for walking around the mall. Even worse, they're trying to phase out the indoor air-conditioned malls in favor of these stupid outdoor malls; who the hell wants to walk around in 115 degree heat to shop? They're nice for about 3 months in the winter, and that's it. They used to have Mill Avenue in Tempe that was kinda fun to walk along, which used to have a bunch of quirky little independent shops, but the Tempe government drove all those out of business to make room for a bunch of mall stores and high-rises, which of course went south when the economy crashed, so most of the place is boarded up now.

      This place sucks, and I can't wait to move out in a couple of months. If a bunch of startups do move here, it's going to be short-lived because cool, hip, young employees aren't going to stick around this cesspool for long.

    5. Re:LOL by amicusNYCL · · Score: 4, Informative

      There's a lot of drivel there that doesn't deserve comment ("very few decent places to eat"? are you old or broke?), but this is ridiculous:

      It's been rated by several places as the worst city in America to drive in, mainly because it's so chaotic and because there's no consistent driving style (the frequent road-rage shootings don't help).

      What's the problem, does the square NS-EW street grid confuse you? You're going to need to back up that claim, because Phoenix is nowhere near the worst cities to drive in:

      http://fillmyemptyblogspace.com/2010/12/24/10-worst-american-cities-to-drive-in/
      http://www.businessinsider.com/cities-with-most-car-crashes-2010-10?op=1
      http://autos.yahoo.com/news/15-dangerous-cities-for-driving.html
      http://newsfeed.time.com/2012/05/22/going-nowhere-10-worst-u-s-cities-for-traffic/

      In fact, if you look closely, you can see Chandler listed by Allstate as one of the safest cities to drive in.

      violent home invasions are common

      Define "common". The police claimed that for 2008 there were "over 300" home invasions and kidnappings (fewer than 1 per day, in an area with 4.2 million people), and that claim was investigated by the feds to see if it was exaggerated to get more funding:

      http://www.azcentral.com/community/phoenix/articles/2011/01/26/20110126phoenix-crime-stats-federal-audit.html

      You can't bicycle here (one of my favorite outdoor activities) because of the heat most of the year

      People bike here year round, Facebook posts from other people doing just that are proof. You choose not to, that doesn't mean other people don't do it also. There are people enjoying the Phoenix Mountain Preserve, Dreamy Draw, and South Mountain year round.

      They used to have Mill Avenue in Tempe that was kinda fun to walk along, which used to have a bunch of quirky little independent shops, but the Tempe government drove all those out of business to make room for a bunch of mall stores and high-rises, which of course went south when the economy crashed, so most of the place is boarded up now.

      Really? The main recreational area next to the largest university by enrollment in the country is boarded up now, huh? That's weird.

      This place sucks, and I can't wait to move out in a couple of months.

      Neither can I. Let me know if you need help leaving.

      --
      "Our two-party system is like a bowl of shit looking at itself in a mirror." - Lewis Black
    6. Re:LOL by tooyoung · · Score: 3, Interesting

      I can only imagine that the people who modded the parent up have never been to Phoenix and assumed that the counter arguments listed were valid. As someone who has lived there, allow me to clarify:

      It is over 100 degrees for a significant amount of the year. If you go for a walk at night, it is still in the high 90s. Phoenix is the 6th largest city in the US, and is located in the middle of the desert. It has no semi-cool counter culture like nearby Tucson. It is just massive sprawl. Yes, it has great Mexican food, and 3 months of the winter are awesome, but the idea of people flocking there for hot tech jobs is insane.

      Would you raise your children in a city where the only place you see grass is golf courses and cemeteries? Would you jump to move to a city with no distinctive downtown, but rather 4 million people living in uncontrolled desert sprawl, completely devastated by the housing crash? And, yes, in Phoenix, it was a crash - houses thrown up with the cheapest materials and labor, doubling in price after only 5 years, only to be devastated by the realization that the owners paid for a tiny lot in a 4 million person desert sprawl, with the closest attraction being Las Vegas?

  2. Think of the advantages... by Genda · · Score: 4, Insightful

    You can dispense with wafer ovens altogether... just put your silicon outside in the parking lot...

  3. No. by Anonymous Coward · · Score: 4, Insightful

    http://en.wikipedia.org/wiki/Betteridge's_Law_of_Headlines

  4. Arizona? No Thanks by TheSpoom · · Score: 3, Insightful

    Is Phoenix The Next Silicon Valley?

    Dear God, I hope not. In the current political climate, as an immigrant, I am avoiding Arizona entirely unless it's absolutely required.

    --
    It's better to vote for what you want and not get it than to vote for what you don't want and get it.
    - E. Debs
  5. No, it isn't. by ackthpt · · Score: 5, Insightful

    For over a decade people keep saying "X" will be the next Silicon Valley. And they then go on and forget they made such ridiculous predictions and nobody every calls them on it.

    FYI The next Silicon Valley continues to be Silicon Valley, as it reinvents itself (and replacing itself with something even more inexplicable the next time.)

    So now you know. And you can quote me on it.

    --

    A feeling of having made the same mistake before: Deja Foobar
    1. Re:No, it isn't. by fiannaFailMan · · Score: 4, Informative

      If only the Valley could cut its property prices by like 80%, then they might survive the next decade and still be on top :P. I'm sorry, but the cost of living there is just outrageous compared to more-reasonable places that are also full of hackers and startups.

      Name one.

      There's a reason why it's cheaper to live in Hicksville. It sucks out there. There's nothing to do.

      There's a reason why it's expensive in the valley. It's awesome. It's where you can walk out of a tech job and still have thousands of other companies in the same field in the same metropolitan area that you can apply to. It's where you can go for lunch and overhear intelligent conversations everywhere. It has a buzz thanks to being full of people bouncing ideas off of each other and venture capital not too far away if investors see an opportunity that might go somewhere. It's where it's at. It has a pleasant climate. It has great outdoor pursuits close by. There's stuff to do. People want to live here.

      "The valley" is not a sentient being with the power to "cut its property prices by like 80%", it's a highly south-after location and the wages in the place make it possible to live here.

      --
      Drill baby drill - on Mars
  6. Re:Arizona? No Thanks by localman57 · · Score: 3, Insightful

    So you have no problem with the laws of the US but a problem with the state of Arizona actually enforcing these laws? Fan-friggin-tastic.

    You're missing the point. The fact that Arizona has a cultural image problem with a big hunk of the population is likely to make it more difficult to recruit talent, which is essential to the success or failure of any company, and start-ups in particular. It's hard enough already to lure the top people to your company. Why make it harder? Easier to just locate someplace else. If they like the bed they've made, good for them. The Supreme Court validated the single biggest part of their legislation. But that doesn't mean I, or a lot of the people I hire, suddenly feel like it's a good idea to go live there.

  7. Re:Arizona? No Thanks by zieroh · · Score: 4, Interesting

    Speaking only for myself, I have a problem with Arizona enacting (and enforcing) laws that are plainly discriminatory and largely driven by old white men angrily brandishing guns. Arizona is, from my perspective, out of step with the vast majority of These United States.

    But that's just me.

    --
    People who say "sheeple" have about as much sophistication as an AOL user, and in fact are probably actually AOL users.
  8. Funny you should ask... by tool462 · · Score: 4, Interesting

    I'm an electrical engineer in Phoenix who is actively trying to leave. You pretty much have Intel, Honeywell, and Freescale (ha!) on a large scale, a bunch of other companies with satellite offices locally, and some smaller startup types. From the inside, it certainly doesn't feel special relative to any other large city, and there still is nowhere near the density of tech companies that Silicon Valley has. Could it get there? I suppose. But so could Austin, or Seattle, or Irvine, and so on.

  9. Re:Arizona? No Thanks by mythosaz · · Score: 3, Insightful

    Thanks for confirming my suspicion.

    Despite Joe's antics, he'll get elected again because his politics aren't what most of the voting populous of AZ cares about.

    Things like Tent City suck, and we like when our criminals get sent there.  We like that he deputizes people to track down deadbeat dads or keep gangbangers out of mall parking lots.  We like that he's a mean son of a bitch.  We want our stupid kids locked up and put in a chain-gang for the week when they get a drunk driving charge.

    We overlook the fact that he panders to the media on the right with birther nonsense, because he's not a position in our government where it matters.  [Hint, the MCSO doesn't determine presidential eligibility.]

  10. Re:Only the retarded use sexual slang by jpapon · · Score: 5, Insightful

    On a side note, what do you have against reducing the size of government and federal spending?

    What do I have against it?

    I believe everyone should be provided healthcare by the state, because I don't think we can trust private entities to resist the temptation to charge more and more for healthcare services (because they know we HAVE to pay it...).

    I believe the government should regulate what pollutants industry is allowed to dump into the earth/water.

    I believe the government should provide free education to all of its citizens.

    I believe the government should regulate financial industries and banks.

    Frankly, I believe there are MANY things the government should do, because either they are the only ones who can do it, or because the sector should not be trying to make a profit.

    If you want to reduce government, set your sights on the massive "defense" budget. Leave what (limited) social services the USA has alone.

    --
    -- Let us endeavor so to live that when we pass even the undertaker shall be sorry. -- M. Twain
  11. The answer is a resounding NO by drgroove · · Score: 4, Interesting

    I've lived in Scottsdale for the past 2 years, having previously lived in Chicago and Silicon Valley. The vast majority of developers here are C# developers who would rate between a B- and a D if graded on their development skills. The vast majority of development jobs in Phoenix are also centered around C#; seeing as most web-based startups are using Java or LAMP as their underpinning technology, Phoenix's labor pool and developer job opportunities simply aren't aligned to maintain a robust startup environment. Additionally, development jobs pay anywhere from 30-50% less than other major coder cities. Lower cost of living be damned; if companies are looking to hire C# developers for $70k/year, they're not going to attract top talent. Chicago, San Jose, Austin ... you could spend an afternoon listing all of the cities that are healthier for startups and talented developers. And, all of these issues are just the tip of the spear - we haven't even addressed the political climate in Arizona. Good luck convincing talented developers here on an H1B that Arizona is a safe place to live and work.

  12. Re:Arizona? No Thanks by Hatta · · Score: 5, Insightful

    Things like Tent City suck, and we like when our criminals get sent there.

    What about the innocent, but accused? You did know that the majority of Tent Citie's population are merely accused and awaiting trial, right?

    But I'm wasting my time. You're exactly the kind of authoritarian asshole that keeps any sort of sensible person out of Phoenix. I hope you get falsely accused of a crime in August.

    --
    Give me Classic Slashdot or give me death!
  13. No, because Phoenix cannot attract talent. by Ichijo · · Score: 3, Informative

    In general, Phoenix is a boring place, and boring doesn't attract talent. For some reason, Phoenicians chose to build themselves a flat, heat-magnifying city of asphalt and concrete in an already hot location, instead of shade trees and tall buildings to help block the sunlight. Consequently, there are few vibrant, walkable areas (downtown Tempe is/was a notable exception), and there's not much to do in the summer except watch TV or go to the theater, the mall, or a water park.

    No, Phoenix isn't a good tech incubator. Phoenix is where you move your company after you've completed the real innovation and you just need cheap labor to keep the business running.

    --
    Any sufficiently unpopular but cohesive argument is indistinguishable from trolling.
  14. Re:Arizona? No Thanks by docmordin · · Score: 3, Informative

    Since you didn't bother to specify which, now disbanded, Arizonian "minutemen" group, there's the murders of Raul and Brisenia Flores by Shawna Forde (State of Arizona vs. Shawna Forde (court case number CR-20092300-001, Pima County)), the founder of the splinter group Minutemen American Defense, and Jason Bush (State of Arizona vs. Jason Eugene Bush (court case number CR-20092300-003, Pima County)).

  15. Re:Not all tech companies start in California by mbc2000 · · Score: 5, Funny

    I mean, I can think of a little company from Albuquerque that ended up doing pretty well for itself.

    Los Pollos Hermanos?

  16. Re:Arizona? No Thanks by AlphaWolf_HK · · Score: 4, Informative

    Actually federal law already requires ALL immigrants to register and carry some form of documentation at all times, legal or otherwise. A green card will suffice.

    http://www.law.cornell.edu/uscode/text/8/1304
    http://www.law.cornell.edu/uscode/text/8/1306

    So the "papers please" argument already applies nationwide.

    --
    Careful with names containing L slashdot.org/~AiphaWolf_HK slashdot.org/~AlphaWoif_HK slashdot.org/~AiphaWoif_HK
  17. Re:Only the retarded use sexual slang by Genda · · Score: 5, Interesting

    This is a myth perpetuated by people who pull reasons out of hats and other dark orifices to empty your wallet. If any of this smoke had even a passing hint of reality to it, we would be seeing a global pattern that would bear this out. Such a pattern is embarrassingly absent. Here's what is present,

    Americas spend more for medicine than any people on the planet; per capita: $7,146, as a percentage of GDP: 15.2%
    Our life expectancy is 42 (50th for new borns) in the world falling behind Cuba and Chile, Our child mortality rate is one of the highest in the industrialized world.
    The WHO rated American medicine over all at 72 of 191, being beaten by Mexico, Sri Lanka and Uraguay, but tied in a dead heat with Surinam.
    Medical care is the number 1 reason for bankruptcy being a a significant cause in 46.2% and mentioned in 62.1% of all bankruptcies.
    The United States is one of only 3 industrialize countries (the other two being Mexico and Turkey) on the planet that failed to cover virtually all of their citizens (at least 98.4%) with complete medical coverage. As a result, a 2009 Harvard study reported that 44,900 American's die needlessly every year due to lack of access to affordable medical care.

    We have a ridiculous run away malpractice problem, for profit hospitals that have no problem charging $10 for an antacid tablet that costs less than a penny, semiprivate hospital rooms that can cost $20,000 a day, doctors charging $250 for a 30 second visit, pharmaceutical companies who no longer produce useful drugs, but keep pumping out analogues of prior cash cow meds to keep drug patents and fat profits coming, while at the same time moving heaven and earth to sabotage and undermine the generic drug industry, and a greedy insurance system that gladly spins the whole disaster on and on as it take ever fatter slices for itself. This is the picture of an industry rife with greed, gluttony, payola, bribery and an utter disregard for human life or dignity.

    Anyone who thinks for a moment that this industry doesn't need to be regulated within an inch of its existence, has no clue to the depth and breath of the depravity that has been visited on the American people. It has passed being a bad joke, its beyond obscene, it is now a full on tragedy, a national shame, an indictment of our system of enterprise and government. It is a blight on our children and nothing less than beating it back into a not for profit service designed to protect and promote the health and well being of PEOPLE is an acceptable answer.

  18. The next Silicon Valley by Taco+Cowboy · · Score: 4, Insightful

    I've been in this field for a long-long time

    I was in the Silicon Valley when the thing got started and I benefited handsomely

    IMHO, the "Silicon Valley Phenomenon" is a one-time happening

    It happened because of many factors

    * The concentration of critical mass of coherent talents - mostly comprised of remnants of the hippies with their Groovy mindset, and earlier batch of the baby boomers who were, in one way or another, influenced by the hippies culture

    * It occurred at a time when the "change culture" finally arrived at the tech scene - with hobbyists earnestly believed that they could build their own gadgets with solders and breadboards

    * And the Silicon Valley happened to provide a venue, the place, for the talents to gather and trade their ideas

    We also need to understand that the Silicon Valley phenomenon occurred way before Internet - which means, people _still_ had to congregate in ONE PHYSICAL PLACE in order to trade ideas

    With Internet, people no longer need to gather physically in one place in order to trade ideas

    There have been many attempts in repeating the "Silicon Valley Success" all over the world - from Boston USA to East London, UK to Japan to even third world countries such as Malaysia, but none ever achieve same level of success as Silicon Valley

    Why?

    Simply because there is no need for yet-another Silicon Valley

    --
    Muchas Gracias, Señor Edward Snowden !