Tech’s Idle Billions

A commentary by Steve Rosenbush that caught my eye … pounding on an issue that has kept me busy as well: the lack of innovation, notably business model innovations by big tech players.

Quite controversial, still many good thougths in there, note these gems:

Tech’s Idle Billions […] The sector’s companies are minting money. Now they need to start spending some to create new technologies, products, and markets. […] The trouble is, few tech companies are doing anything exciting with all that loot. Many chief executives are using their funds sparingly. Several years after the tech bust ended, they’re still unnerved by weak revenue growth and a stagnant stock market.


they’re playing it safe […] With the tech downturn still fresh in their minds, relatively few business leaders have regained the sense of boldness that goes hand in hand with making advances in new technologies, products, and markets

and this last big one:

Wall Street in general simply won’t allow companies to take too many risks. It’s focused as never before on quarterly results. Investors were burned by Nasdaq’s crash of 2000, and a new generation of traders and hedge funds with the fleetest of investment horizons has come to the fore.

read more at BusinessWeek

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