The new dot-com bubble
Wednesday, October 14, 2009 by Sion
The dot-com bubble was a phenomenon of the late 1990s, when there was unguarded optimism for Internet-based businesses. Many companies came to be referred to as “dot-coms,” after the .com in many web addresses. The dot-com bubble was the biggest market bubble ever seen, and many investors lost big. But some companies have been survived the dot.com boom when so many other web based companies failed. Amazon was spending on expanding customer base and letting people know that it existed and it stands between the author and the reader, the musician and the listener. It's just another super-store, just one with a lower cost of overheads. Google focused on spending time on creating more powerful machine capacity to serve its expanding search engine. Both companies knew that fundamentals don’t lie.
There are some new kind of internet bubble are emerging. In 2007, new Internet technologies have prompted another rush by start-ups and industry stalwarts to tap the burgeoning energy associated with Web 2.0 wikis, blogs, podcasts, widgets and social networks to quickly extend their Internet real estate. But while the Web 2.0 phenomenon may have some things in common with the Internet bubble, experts note that there are also stark differences, including the low cost of entry for companies launching blog, wiki or social networking businesses. The main difference, however, is that this time around consumers are driving the adoption of the technologies rather than companies trying to force their Internet sites and wares onto users, according to industry observers. Yet, a rush to create Web 2.0-based systems will lead to a new dot-com bubble that will burst under the stress of failing businesses. If they want to survive in rushing web 2.0 based systems, they should consider the fundamentals as Google and Amazon did.
There are some new kind of internet bubble are emerging. In 2007, new Internet technologies have prompted another rush by start-ups and industry stalwarts to tap the burgeoning energy associated with Web 2.0 wikis, blogs, podcasts, widgets and social networks to quickly extend their Internet real estate. But while the Web 2.0 phenomenon may have some things in common with the Internet bubble, experts note that there are also stark differences, including the low cost of entry for companies launching blog, wiki or social networking businesses. The main difference, however, is that this time around consumers are driving the adoption of the technologies rather than companies trying to force their Internet sites and wares onto users, according to industry observers. Yet, a rush to create Web 2.0-based systems will lead to a new dot-com bubble that will burst under the stress of failing businesses. If they want to survive in rushing web 2.0 based systems, they should consider the fundamentals as Google and Amazon did.