Tech Market Froth
I've been observing hiring in tech for the last year, and I've started to believe that we are in a bit of a bubble. The salary increases, and hence the employee churn, is at levels not seen in recent history.
I saw two things this week, which confirmed that we are at a tech-top point:
1) Companies forget their core competency
Companies build products and provide services. That's why they exist and that's what their shareholders expect. In the late 1990's, many companies started investment funds to chase alpha. Those companies had no core competence in investing and accordingly, they lost their shirt. VC's, Private equity companies, and hedge funds should be investing. Companies that build products and services should not be. Which brings us to this mornings news courtesy of the Wall Street Journal: Citrix is starting an internal incubator! I think we all know how this will end.
2) CEO's become rock stars
This is Yammer's CEO, at his recent party, with Snoop Dogg. Enough said.
I saw two things this week, which confirmed that we are at a tech-top point:
1) Companies forget their core competency
Companies build products and provide services. That's why they exist and that's what their shareholders expect. In the late 1990's, many companies started investment funds to chase alpha. Those companies had no core competence in investing and accordingly, they lost their shirt. VC's, Private equity companies, and hedge funds should be investing. Companies that build products and services should not be. Which brings us to this mornings news courtesy of the Wall Street Journal: Citrix is starting an internal incubator! I think we all know how this will end.
2) CEO's become rock stars
This is Yammer's CEO, at his recent party, with Snoop Dogg. Enough said.