|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?
In the consumer IoT, everything is new, and the IT world of bits and bytes holds sway. But industrial and commercial realms encompass operational technology (OT) that has been around for 25 or 50 years. This grittier, pre-IP, more hands-on world has much to gain from Industrial IoT (IIoT) applications and principles. But adding sensors and wireless connectivity won’t work in environments that demand unwavering reliability and performance. In his session at @ThingsExpo, Ron Sege, CEO of Echelon, will discuss how as enterprise IT embraces other IoT-related technology trends, enterprises with i...
Mar. 5, 2015 09:00 AM EST Reads: 2,425
When it comes to the Internet of Things, hooking up will get you only so far. If you want customers to commit, you need to go beyond simply connecting products. You need to use the devices themselves to transform how you engage with every customer and how you manage the entire product lifecycle. In his session at @ThingsExpo, Sean Lorenz, Technical Product Manager for Xively at LogMeIn, will show how “product relationship management” can help you leverage your connected devices and the data they generate about customer usage and product performance to deliver extremely compelling and reliabl...
Mar. 5, 2015 09:00 AM EST Reads: 1,550
The Internet of Things (IoT) is causing data centers to become radically decentralized and atomized within a new paradigm known as “fog computing.” To support IoT applications, such as connected cars and smart grids, data centers' core functions will be decentralized out to the network's edges and endpoints (aka “fogs”). As this trend takes hold, Big Data analytics platforms will focus on high-volume log analysis (aka “logs”) and rely heavily on cognitive-computing algorithms (aka “cogs”) to make sense of it all.
Mar. 5, 2015 09:00 AM EST Reads: 1,312
With several hundred implementations of IoT-enabled solutions in the past 12 months alone, this session will focus on experience over the art of the possible. Many can only imagine the most advanced telematics platform ever deployed, supporting millions of customers, producing tens of thousands events or GBs per trip, and hundreds of TBs per month. With the ability to support a billion sensor events per second, over 30PB of warm data for analytics, and hundreds of PBs for an data analytics archive, in his session at @ThingsExpo, Jim Kaskade, Vice President and General Manager, Big Data & Ana...
Mar. 5, 2015 09:00 AM EST Reads: 1,451
One of the biggest impacts of the Internet of Things is and will continue to be on data; specifically data volume, management and usage. Companies are scrambling to adapt to this new and unpredictable data reality with legacy infrastructure that cannot handle the speed and volume of data. In his session at @ThingsExpo, Don DeLoach, CEO and president of Infobright, will discuss how companies need to rethink their data infrastructure to participate in the IoT, including: Data storage: Understanding the kinds of data: structured, unstructured, big/small? Analytics: What kinds and how responsiv...
Mar. 5, 2015 05:00 AM EST Reads: 2,746
Since 2008 and for the first time in history, more than half of humans live in urban areas, urging cities to become “smart.” Today, cities can leverage the wide availability of smartphones combined with new technologies such as Beacons or NFC to connect their urban furniture and environment to create citizen-first services that improve transportation, way-finding and information delivery. In her session at @ThingsExpo, Laetitia Gazel-Anthoine, CEO of Connecthings, will focus on successful use cases.
Mar. 5, 2015 04:00 AM EST Reads: 3,051
The Workspace-as-a-Service (WaaS) market will grow to $6.4B by 2018. In his session at 16th Cloud Expo, Seth Bostock, CEO of IndependenceIT, will begin by walking the audience through the evolution of Workspace as-a-Service, where it is now vs. where it going. To look beyond the desktop we must understand exactly what WaaS is, who the users are, and where it is going in the future. IT departments, ISVs and service providers must look to workflow and automation capabilities to adapt to growing demand and the rapidly changing workspace model.
Mar. 5, 2015 04:00 AM EST Reads: 1,201
Sensor-enabled things are becoming more commonplace, precursors to a larger and more complex framework that most consider the ultimate promise of the IoT: things connecting, interacting, sharing, storing, and over time perhaps learning and predicting based on habits, behaviors, location, preferences, purchases and more. In his session at @ThingsExpo, Tom Wesselman, Director of Communications Ecosystem Architecture at Plantronics, will examine the still nascent IoT as it is coalescing, including what it is today, what it might ultimately be, the role of wearable tech, and technology gaps stil...
Mar. 5, 2015 03:30 AM EST Reads: 2,807
Almost everyone sees the potential of Internet of Things but how can businesses truly unlock that potential. The key will be in the ability to discover business insight in the midst of an ocean of Big Data generated from billions of embedded devices via Systems of Discover. Businesses will also need to ensure that they can sustain that insight by leveraging the cloud for global reach, scale and elasticity.
Mar. 5, 2015 03:15 AM EST Reads: 4,654
The Internet of Things (IoT) promises to evolve the way the world does business; however, understanding how to apply it to your company can be a mystery. Most people struggle with understanding the potential business uses or tend to get caught up in the technology, resulting in solutions that fail to meet even minimum business goals. In his session at @ThingsExpo, Jesse Shiah, CEO / President / Co-Founder of AgilePoint Inc., showed what is needed to leverage the IoT to transform your business. He discussed opportunities and challenges ahead for the IoT from a market and technical point of vie...
Mar. 5, 2015 02:45 AM EST Reads: 4,007
IoT is still a vague buzzword for many people. In his session at @ThingsExpo, Mike Kavis, Vice President & Principal Cloud Architect at Cloud Technology Partners, discussed the business value of IoT that goes far beyond the general public's perception that IoT is all about wearables and home consumer services. He also discussed how IoT is perceived by investors and how venture capitalist access this space. Other topics discussed were barriers to success, what is new, what is old, and what the future may hold. Mike Kavis is Vice President & Principal Cloud Architect at Cloud Technology Pa...
Mar. 5, 2015 02:30 AM EST Reads: 4,614
Hadoop as a Service (as offered by handful of niche vendors now) is a cloud computing solution that makes medium and large-scale data processing accessible, easy, fast and inexpensive. In his session at Big Data Expo, Kumar Ramamurthy, Vice President and Chief Technologist, EIM & Big Data, at Virtusa, will discuss how this is achieved by eliminating the operational challenges of running Hadoop, so one can focus on business growth. The fragmented Hadoop distribution world and various PaaS solutions that provide a Hadoop flavor either make choices for customers very flexible in the name of opti...
Mar. 5, 2015 02:30 AM EST Reads: 1,295
The true value of the Internet of Things (IoT) lies not just in the data, but through the services that protect the data, perform the analysis and present findings in a usable way. With many IoT elements rooted in traditional IT components, Big Data and IoT isn’t just a play for enterprise. In fact, the IoT presents SMBs with the prospect of launching entirely new activities and exploring innovative areas. CompTIA research identifies several areas where IoT is expected to have the greatest impact.
Mar. 5, 2015 02:00 AM EST Reads: 3,150
Advanced Persistent Threats (APTs) are increasing at an unprecedented rate. The threat landscape of today is drastically different than just a few years ago. Attacks are much more organized and sophisticated. They are harder to detect and even harder to anticipate. In the foreseeable future it's going to get a whole lot harder. Everything you know today will change. Keeping up with this changing landscape is already a daunting task. Your organization needs to use the latest tools, methods and expertise to guard against those threats. But will that be enough? In the foreseeable future attacks w...
Mar. 5, 2015 01:30 AM EST Reads: 3,719
Disruptive macro trends in technology are impacting and dramatically changing the "art of the possible" relative to supply chain management practices through the innovative use of IoT, cloud, machine learning and Big Data to enable connected ecosystems of engagement. Enterprise informatics can now move beyond point solutions that merely monitor the past and implement integrated enterprise fabrics that enable end-to-end supply chain visibility to improve customer service delivery and optimize supplier management. Learn about enterprise architecture strategies for designing connected systems tha...
Mar. 5, 2015 12:30 AM EST Reads: 3,661
Dale Kim is the Director of Industry Solutions at MapR. His background includes a variety of technical and management roles at information technology companies. While his experience includes work with relational databases, much of his career pertains to non-relational data in the areas of search, content management, and NoSQL, and includes senior roles in technical marketing, sales engineering, and support engineering. Dale holds an MBA from Santa Clara University, and a BA in Computer Science from the University of California, Berkeley.
Mar. 5, 2015 12:15 AM EST Reads: 3,828
Wearable devices have come of age. The primary applications of wearables so far have been "the Quantified Self" or the tracking of one's fitness and health status. We propose the evolution of wearables into social and emotional communication devices. Our BE(tm) sensor uses light to visualize the skin conductance response. Our sensors are very inexpensive and can be massively distributed to audiences or groups of any size, in order to gauge reactions to performances, video, or any kind of presentation. In her session at @ThingsExpo, Jocelyn Scheirer, CEO & Founder of Bionolux, will discuss ho...
Mar. 5, 2015 12:00 AM EST Reads: 3,143
The cloud is now a fact of life but generating recurring revenues that are driven by solutions and services on a consumption model have been hard to implement, until now. In their session at 16th Cloud Expo, Ermanno Bonifazi, CEO & Founder of Solgenia, and Ian Khan, Global Strategic Positioning & Brand Manager at Solgenia, will discuss how a top European telco has leveraged the innovative recurring revenue generating capability of the consumption cloud to enable a unique cloud monetization model to drive results.
Mar. 4, 2015 08:00 PM EST Reads: 1,931
As organizations shift toward IT-as-a-service models, the need for managing and protecting data residing across physical, virtual, and now cloud environments grows with it. CommVault can ensure protection &E-Discovery of your data – whether in a private cloud, a Service Provider delivered public cloud, or a hybrid cloud environment – across the heterogeneous enterprise. In his session at 16th Cloud Expo, Randy De Meno, Chief Technologist - Windows Products and Microsoft Partnerships, will discuss how to cut costs, scale easily, and unleash insight with CommVault Simpana software, the only si...
Mar. 4, 2015 07:00 PM EST Reads: 1,075
Analytics is the foundation of smart data and now, with the ability to run Hadoop directly on smart storage systems like Cloudian HyperStore, enterprises will gain huge business advantages in terms of scalability, efficiency and cost savings as they move closer to realizing the potential of the Internet of Things. In his session at 16th Cloud Expo, Paul Turner, technology evangelist and CMO at Cloudian, Inc., will discuss the revolutionary notion that the storage world is transitioning from mere Big Data to smart data. He will argue that today’s hybrid cloud storage solutions, with commodity...
Mar. 4, 2015 06:00 PM EST Reads: 2,032