Is the New Tech Boom Sustainable?

I recently read an article at commenting on the current “tech boom” in San Francisco.  While the article includes some good advice for politicians about how to respond to this apparent good news, there were other interesting points that warrant discussion.  First of all, the article cites several new factors that are advanced as reasons to think that things may have changed in the last decade.  For example, an argument is made that “these are real companies . . . they have lots of customers and lots of profits”.  Second, the business models supporting these companies seem to be based on the understanding that the volume of transactions is meaningless unless, at some point, those transactions turn and remain profitable.  It is not clear, however, whether the current uptick in customer interest and/or revenues is sustainable and regulators, accountants and investors still seem to be struggling with how to identify profits and value the businesses.  What is apparent though is that prospective customers have finally grown comfortable with new technology tools offered by these companies and are incorporating search, social, mobile and e-commerce into their lives at a rapidly increasing rate.  What I’m still not sure about is how this will all shake out.  It’s a fundamental change in the way a lot of folks are looking at their world and I don’t think anyone is sure how that will end up.  Will everyone be doing their reading on a tablet or will they still crave a real book or newspaper?  Will be people get fed up with having every keystroke they use to send out a message come back to bight them as an ad?  We’ll see . . .


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