Embedded.com: Open Source: The Next Dot Com Bubble Burst?
May 06, 2002, 16:00 (6 Talkback[s])
[ Thanks to gene
smith for this link. ]
"The year 2000 saw the dot-com bubble pop. The myth of a "new
economy" predicated on growth rather than profits died as well. Me,
I thought we had learned that lesson from Netscape years earlier.
Traditional economic influences once again proved their resiliency.
Explosive growth of market share does not necessarily translate
into profits, and without profits all businesses ultimately
fail.
"The embedded world, too, had jumped into the
growth-over-profits mania. A gaggle of startups promoted Linux as
the solution to all of our woes. Most of those companies are still
around, somewhat spared the dot-com collapse, though almost all
felt its impact and conducted layoffs to appease the banks.
"Is the embedded world headed for its own version of the dot-com
crash? How many of these companies have achieved profitability?
Most are privately held and don't disclose results, though the
spates of layoffs are telling. Perhaps their troubles are the
shared woes of the economic downturn. But, then again, maybe
not..."
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