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Pop goes the Bubble

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Jun. 27th, 2007 | 09:53 am

From the Freakonomics blog "The
Benefits of a Bubble, Event When Burst"
, I was thinking a bit
about the last bubble and what we gained from it.

  • Cheap Hardware. For quite a while after the bubble burst Ebay
    was the place to buy hardware. Need a high end router, or an
    expensive load balancer? You could get all of it from Ebay. There are
    a number of startups that I work with that all got their start during
    that period. Only in the last few years have they been replacing all
    of the hardware they picked up from the last bubble.

  • Data Centers. There was a build out of data centers which
    completely collapsed. Companies swooped in and bought these up. The
    number of cheap data centers that are up for grabs is long gone. I
    expect to see some of the current build out for data centers, to
    benefit the players who live through the next slowdown.

  • Technology. We have a new wave of open source happening that is
    getting funded. Much of this won't last, but we will be left with the
    technology (though I am suspicious about how much of this will be of
    value.

  • Trained Developers. When the bubble blows we will have people
    trained in scaling and deployment.

    The job market is ridiculous once again. I'm getting a few inquiries
    each week (I am beginning to think someone has written a bot that
    scavenges email addresses from the MySQL forum's since so many of the
    pieces of email reference it). I had dinner last with Larry McVoy and
    we both lamented over the fact that system developers are impossible
    to find. Schools don't train them anymore, so you have to find the
    naturally talented ones who happen to appear.

    I could really use a cheap gigabyte managed switch right about now...

    And a big NAS device...
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