|By Roger Strukhoff||
|May 30, 2005 10:00 PM EDT||
There are a few key things to remember.
Meanwhile, over in Oakland, Berkeley, and the rest of the East Bay, chips grow on peoples' shoulders as the fastest-growing region of the Bay Area continues to get little respect, yet provides the last conceivably affordable housing in the region and has a true cultural and economic diversity not seen in its two domineering brethren.
Yet these three areas hold together well enough to form the
San Francisco Bay Area, a region cooled by the
This reporter has lived throughout the Bay Area off and on for the past 25 years. I love it, as do most people who live here. Great weather, great food, an underrated sports environment, and an area that continues to be among the most creative—and competitive—technology-driven regions in the world.
But yes, the Bay Area can seem insufferable. Self-satisfied and smug, on the bleeding edge of political correctness, and a place that has fueled individualistic narcissism since the days of the Gold Rush of 1849.
So maybe there aren’t many tears being shed for us these days. But the severity of the economic doldrums of the past five years cannot be overstated, at least when compared to previous Bay Area economic slumps. This was hardly a little dip, a little soft patch, a little recession. Eyes rolled when the 2000-2001 national recession was declared over in 2002, as our beloved technology industry was still in freefall that year.
The fall continued, and continued, like a nightmarish roller coaster with an undetermined, and perhaps unlimited drop after that nice initial climb. Official unemployment rates never told the story, as most out-of-work engineers and marketeers in the Bay Area simply became underemployed consultants, contractors, or eternal job seekers who refused to file for benefits.
In a state that encourages 100% interest-only housing loans, and with real-estate taxes tightly capped from the days of Proposition 13 in 1976, it still seems as if the equity train can be ridden forever. Living off of one’s home equity has become the latest lifestyle choice, like buying a hot tub in the 70s, getting that Bimmer in the 80s, or putting in a great wine cellar in the 90s.
Over the past five years, marketing budgets got zeroed out, engineering got outsourced and offshored, and business after business went out of business when caught in the vice of declining revenues and long-term lease agreements for office space they’d never use. I’ve seen documents relating to several major business failures, and all contained leases for as much as 500,000 square feet of office space (at premium prices) that had as much chance of being fulfilled as the promise of cheap nuclear power. Basements full of hundreds of computers, phones, desks, and chairs now worth less than the plastic contained in them became a common, iconic image.
The good news is that some of the worst commutes in this traffic-strangled region improved dramatically. One could now sail at virtually any speed past empty glass houses, chatting on one’s cellphone about…what? Certainly not business, because there wasn’t any.
And the doldrums persist. A report in the May 29 issue of the San Francisco Chronicle, headlined “Painful Recovery,” brings some statistics to bear on a problem that has simply not gone away.
The story, written by Tom Abate, shows average Class A Bay Area office rents continuing to drop, reaching a current $24.18 per square foot per month. This compares to close to $60 in early 2001, dropping quickly in 2002, but continuing to drift slowly downward to the present day. Vacancy rates have dipped slightly from a year ago, but still stand at almost 19%, compared to about 3% in 2000.
Payrolls in metropolitan
Downtown San Jose. Will This Be The New Detroit?
Trade shows can be a good arbiter of how things are going in the industry. Well, Comdex has died and is probably not going to be resurrected. Although not held in the Bay Area, about 40% of its attendees and exhibitors came from here in its glory days. Major events such as Sun’s JavaOne, held at the
Company-produced events such as the Intel Developer’s Forum, and annual customer events by Oracle and RSA, have strong enough attendance these days, although they don’t seem to be on the sort of dramatic growth curve one routinely saw at industry events for a 15-year period from 1985 to 2000.
And I saw recent enthusiasm at a major wireless event and a
more recent PalmSource developer’s conference, both in
But, specific parochial viewpoints aside, the entire region has in fact suffered from a decline that does not show signs of a true, imminent recovery. Abate’s story quoted an academic as referring to the recent regional downturn as “massive” and noting that 80% of the job losses will probably not return. Ever. Ever?
The story also profiled what may be the typical new growth company in the region, a company involved in GPS systems that is showing a 20% revenue growth per year but is hiring “in the single digit range…(and) whenever possible…at other locations outside the Bay Area.”
To be sure, there are still several very large companies out here, making profits. Cisco, HP, Oracle, Intel, and even Sun come to mind. Yahoo and Google and eBay are all newcomers to the superstar scene.
Hundreds of smaller companies continue to churn out great products and great ideas. Intense, passionate, even fanatic communities continue to thrive, whether dedicated to Java, open source, search, or plain old silicon horsepower enhancement.
But the reality is that that
Web developers make half of what they made five years ago. Stock options went under more water than a coral reef and ESOPs disappeared like the coin in that creepy magician’s hand. The irony is that most people are working harder than ever to make less and less. There’s no such thing as a debate over restricting workweek hours or guaranteeing jobs for technology employees. Here, your career lives or dies solely on your abilities and wits. There is little room for complainers, order takers, or cruise-control work ethics. Here, as they say, “it’s about” opportunity, insane creativity, and new paradigms.
Surely something will come along soon to refire the area’s creative and engineering cauldrons, something for which the Bay Area’s unique combination of talent and climate is better suited than anywhere else on the planet. There are simply too many experienced, manically driven people here to keep the good times from returning, full force. Right?
Five years ago development was seen as a dead-end career, now it’s anything but – with an explosion in mobile and IoT initiatives increasing the demand for skilled engineers. But apart from having a ready supply of great coders, what constitutes true ‘DevOps Royalty’? It’ll be the ability to craft resilient architectures, supportability, security everywhere across the software lifecycle. In his keynote at @DevOpsSummit at 20th Cloud Expo, Jeffrey Scheaffer, GM and SVP, Continuous Delivery Busin...
Apr. 24, 2017 08:15 PM EDT Reads: 336
With major technology companies and startups seriously embracing Cloud strategies, now is the perfect time to attend @CloudExpo | @ThingsExpo, June 6-8, 2017, at the Javits Center in New York City, NY and October 31 - November 2, 2017, Santa Clara Convention Center, CA. Learn what is going on, contribute to the discussions, and ensure that your enterprise is on the right path to Digital Transformation.
Apr. 24, 2017 08:00 PM EDT Reads: 671
Multiple data types are pouring into IoT deployments. Data is coming in small packages as well as enormous files and data streams of many sizes. Widespread use of mobile devices adds to the total. In this power panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists will look at the tools and environments that are being put to use in IoT deployments, as well as the team skills a modern enterprise IT shop needs to keep things running, get a handle on all this data, and deli...
Apr. 24, 2017 07:45 PM EDT Reads: 2,116
SYS-CON Events announced today that Juniper Networks (NYSE: JNPR), an industry leader in automated, scalable and secure networks, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Juniper Networks challenges the status quo with products, solutions and services that transform the economics of networking. The company co-innovates with customers and partners to deliver automated, scalable and secure network...
Apr. 24, 2017 07:00 PM EDT Reads: 718
New competitors, disruptive technologies, and growing expectations are pushing every business to both adopt and deliver new digital services. This ‘Digital Transformation’ demands rapid delivery and continuous iteration of new competitive services via multiple channels, which in turn demands new service delivery techniques – including DevOps. In this power panel at @DevOpsSummit 20th Cloud Expo, moderated by DevOps Conference Co-Chair Andi Mann, panelists will examine how DevOps helps to meet th...
Apr. 24, 2017 06:45 PM EDT Reads: 561
The 20th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held June 6-8, 2017, at the Javits Center in New York City, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Containers, Microservices and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportunity. Submit your speaking proposal ...
Apr. 24, 2017 06:45 PM EDT Reads: 678
@GonzalezCarmen has been ranked the Number One Influencer and @ThingsExpo has been named the Number One Brand in the “M2M 2016: Top 100 Influencers and Brands” by Analytic. Onalytica analyzed tweets over the last 6 months mentioning the keywords M2M OR “Machine to Machine.” They then identified the top 100 most influential brands and individuals leading the discussion on Twitter.
Apr. 24, 2017 06:30 PM EDT Reads: 625
The Internet of Things is clearly many things: data collection and analytics, wearables, Smart Grids and Smart Cities, the Industrial Internet, and more. Cool platforms like Arduino, Raspberry Pi, Intel's Galileo and Edison, and a diverse world of sensors are making the IoT a great toy box for developers in all these areas. In this Power Panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists discussed what things are the most important, which will have the most profound e...
Apr. 24, 2017 04:45 PM EDT Reads: 2,081
SYS-CON Events announced today that T-Mobile will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. As America's Un-carrier, T-Mobile US, Inc., is redefining the way consumers and businesses buy wireless services through leading product and service innovation. The Company's advanced nationwide 4G LTE network delivers outstanding wireless experiences to 67.4 million customers who are unwilling to compromise on ...
Apr. 24, 2017 03:45 PM EDT Reads: 579
@ThingsExpo has been named the Most Influential ‘Smart Cities - IIoT' Account and @BigDataExpo has been named fourteenth by Right Relevance (RR), which provides curated information and intelligence on approximately 50,000 topics. In addition, Right Relevance provides an Insights offering that combines the above Topics and Influencers information with real time conversations to provide actionable intelligence with visualizations to enable decision making. The Insights service is applicable to eve...
Apr. 24, 2017 03:30 PM EDT Reads: 2,536
In his keynote at @ThingsExpo, Chris Matthieu, Director of IoT Engineering at Citrix and co-founder and CTO of Octoblu, focused on building an IoT platform and company. He provided a behind-the-scenes look at Octoblu’s platform, business, and pivots along the way (including the Citrix acquisition of Octoblu).
Apr. 24, 2017 03:30 PM EDT Reads: 1,072
SYS-CON Events announced today that Grape Up will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct. 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Grape Up is a software company specializing in cloud native application development and professional services related to Cloud Foundry PaaS. With five expert teams that operate in various sectors of the market across the U.S. and Europe, Grape Up works with a variety of customers from emergi...
Apr. 24, 2017 03:00 PM EDT Reads: 1,881
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo 2016 in New York. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be! Internet of @ThingsExpo, taking place June 6-8, 2017, at the Javits Center in New York City, New York, is co-located with 20th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry p...
Apr. 24, 2017 02:45 PM EDT Reads: 612
Bert Loomis was a visionary. This general session will highlight how Bert Loomis and people like him inspire us to build great things with small inventions. In their general session at 19th Cloud Expo, Harold Hannon, Architect at IBM Bluemix, and Michael O'Neill, Strategic Business Development at Nvidia, discussed the accelerating pace of AI development and how IBM Cloud and NVIDIA are partnering to bring AI capabilities to "every day," on-demand. They also reviewed two "free infrastructure" pr...
Apr. 24, 2017 02:15 PM EDT Reads: 1,114
SYS-CON Events announced today that Hitachi, the leading provider the Internet of Things and Digital Transformation, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Hitachi Data Systems, a wholly owned subsidiary of Hitachi, Ltd., offers an integrated portfolio of services and solutions that enable digital transformation through enhanced data management, governance, mobility and analytics. We help globa...
Apr. 24, 2017 01:30 PM EDT Reads: 645
SYS-CON Events announced today that SoftLayer, an IBM Company, has been named “Gold Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York, New York. SoftLayer, an IBM Company, provides cloud infrastructure as a service from a growing number of data centers and network points of presence around the world. SoftLayer’s customers range from Web startups to global enterprises.
Apr. 24, 2017 10:00 AM EDT Reads: 2,025
The buzz continues for cloud, data analytics and the Internet of Things (IoT) and their collective impact across all industries. But a new conversation is emerging - how do companies use industry disruption and technology enablers to lead in markets undergoing change, uncertainty and ambiguity? Organizations of all sizes need to evolve and transform, often under massive pressure, as industry lines blur and merge and traditional business models are assaulted and turned upside down. In this new da...
Apr. 24, 2017 08:00 AM EDT Reads: 5,090
Apr. 24, 2017 07:15 AM EDT Reads: 2,089
20th Cloud Expo, taking place June 6-8, 2017, at the Javits Center in New York City, NY, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy.
Apr. 24, 2017 06:15 AM EDT Reads: 2,896
SYS-CON Events announced today that Super Micro Computer, Inc., a global leader in compute, storage and networking technologies, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Supermicro (NASDAQ: SMCI), the leading innovator in high-performance, high-efficiency server technology, is a premier provider of advanced server Building Block Solutions® for Data Center, Cloud Computing, Enterprise IT, Hadoop/...
Apr. 24, 2017 04:15 AM EDT Reads: 1,938