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Posted on January 27, 2009 | tags


Tech: Netbooks: An example of technology’s “creative destruction”

  • Netbooks are popular Sure, lots of people could use the horsepower of a speedy laptop or a top-tier desktop computer (MacBook for lyfe), but many are choosing to go with cheap Netbooks instead. These computers are small, inexpensive, sometimes as low as $200, and often use open-source software such as Ubuntu. They can’t handle much more than surfing the Web and hitting up YouTube, but for many, that’s all they need.
  • It’s happened before Back in the 1990s, the players atop the tech heap included America Online and Sun Microsystems, both relegated to footnotes in today’s market. With netbooks and other disruptive technologies, the cycle could repeat itself: Current big players like Microsoft just announced huge layoffs, and CEO Steve Ballmer noted this fear when announcing the layoffs. “Our model is not for a quick rebound,” he said.
  • “Creative destruction”Joseph Schumpeter, an Austrian economist from the early 20th century, seems to have nailed the current workings of Silicon Valley with his writings on business cycles. Basically, companies rise to the top of the heap, only to be taken down by other companies with smarter, more svelte ideas. The rise and fall of companies leads to more innovation. And a pretty cool to term describe it. source
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