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The new stories of social computing are shared here. We're exploring mobile devices, embedded computing, wireless sensor networks, and social business from the perspectives of technology, business, and societal changes.

About Don Dingee

An experienced strategic marketer and editorial professional, and an engineer by education, Don is currently a blogger, speaker, and author on social computing topics, and a marketing strategy consultant. He's had previous gigs at Embedded Computing Design magazine, Motorola, and General Dynamics.

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8 Reasons This Isn't Tech Bubble 2.0

Posted April 12, 2012 8:00 AM by dondingee

The $1B Facebook plunked down for Instagram has everyone talking. A lot of pundits are saying this is the peak of the new tech bubble, and it's all downhill from here when the bubble explodes, just like last time.

For those around for Tech Bubble 1.0 - circa 1995 to 2001 - there are similarities, like a company with zero revenue draws such an absurdly huge valuation. This is on the heels of lofty valuations such as the Facebook IPO itself.

Before jumping on the Bubble Wagon loaded with tulips, here are 8 reasons why this social computing movement isn't Tech Bubble 2.0:

1) This isn't the search for the killer app. During Tech Bubble 1.0, that's all we heard. It's email. It's content management. It's routers and switching. It's storage. It's traffic management. It's security. Every tech company said they had the formula that would take over, and built a biz model around it with hockey-stick growth rates built in, looking to be bought or go public. Investors believed them, for a while. By contrast, Instagram doesn't even have a biz model, though there were people trying to offer them one.

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Join Date: May 2007
Location: Geelong, Australia
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Re: 8 Reasons This Isn't Tech Bubble 2.0

04/13/2012 12:59 AM

A boom is when a feeding frenzy develops among potential buyers, they all want to get in at any price (because the price is just going to keep going up). They pay above the actual worth of the item.

I don't think that's what's happening in the world at the moment. Now all decisions are cold, rational and deeply conservative.

I don't know whether it will be a good investment but the decision is based on Facebook's inside knowledge of the potential costs and income potential.

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