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Time flash

2003

  • This years continues with bad economic news on IT companies and political unrest in various parts of the world. The so hoped for revival of the IT industry stays away.
  • Large corporations world wide, like the Banking and Insurance industries, are cutting heavy in their IT expenses or postponing investments.
  • Worldwide IT persons are fired by the thousands every month.
  • Governments, never smart in IT development and long term planning, are severely cutting back in education and R&D supportive measures.
  • SOHO companies, consulting firms, are either seeking employment in companies or stop their business all together. But a fact is that they are almost evaporating from the earth's surface.
  • Replacement of computers and software is postponed for another year, again not very stimulating for the revival of the industry.
  • The Enron and IMC scandals on bookkeeping practices are felt in the entire industry, worldwide.
  • The only company that is really going strong is Microsoft, mainly because of her new license policy that reaps in enormous profits.
  • The USA's campaign to overthrow Saddam Hussein continues to negatively influence the development of the 'electronic' in particular and the worldwide production chain in general (less demand causes in the long run dwindling investments).
  • Companies are even more reluctant to invest in new technology and knowledge than last year.

In short if these signals do keep on coming the IT industry is going to be severely mamed for the next 10 years. Unless some smart invention will revolutionize the industry again. So far one is 'milking the old cow'

 

On pricing CPU's and transistors

 

The same transistor in 1954 (5.52) costs $39.35 in 2004 , corrected for inflation.

See: http://www.minneapolisfed.org/Research/data/us/calc/ for an inflation calculator.


Extrapolate this to a contemporary chip with 5.000.000 transistors and a CPU will cost you around 200 million dollars! Such a CPU now cost $85 or 2,314,705 in 1954. While computing power of a CPU was a fraction of a millionth compared to now. So to get the same computing power you would have to pay this staggering 200 million for just a average CPU. Inclusive the chipset, on board chips et cetera you would come close to a billion dollar for a 1954 equivalent 2004 PC!

 

Go BackTime Line Last Updated on April 20, 2005 For suggestions  please mail the editors 

 

Footnotes & References

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