- 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
- 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
On pricing CPU's and
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
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!
April 20, 2005
suggestions please mail the editors
Footnotes & References