A comparison of the current crisis and the crisis of 2001

 
April 21, 2009, 1:50 pm

   The crisis, no doubt, seriously change the face of modern information technology industry - in a very short period of time, the vast majority of IT-companies has reduced the staff of the company announced its possible bankruptcy, has been a wave of large sales and purchases, and not just some units, but also the entire company. However, despite the seriousness of the situation, crisis, according to experts, was not so significant, in relation to IT-industry as the crisis of 2001.
As compared with the crisis of the early millennium, after which the restoration of the entire industry took three years - it is during this period industry has returned to the level of 2003 - the current recession will be over in 2010. The main reason for such a quick recovery lies in the nature of both crises.
The main driving force behind the 2001 crisis was an unprecedented high rate of growth of IT-industry during the 1999 - 2000 years. He, in turn, was caused by too high expectations for market development of high technology, and after the boom should always be a sharp downturn. In this case, for the very short term profits of IT-companies in the whole industry collapsed immediately to the 32, 5%, leading to a collapse of manufacturing companies, developers and companies providing a wide range of IT-services.
In contrast, the current crisis is due not so much a crisis of the information technology industry, but an unstable world economic situation as a whole. Moreover, in the opinion of the many analysts and observers, have already reached the bottom of the fall - only a different assessment of how deep the bottom turned out. But by 2011, industry must fully restore our values to the peak observed in 2007. At that time, the total income of IT-companies was $ 269 billion, and in a couple of years, is expected to set a new record - it would be possible to say with confidence that the crisis is fully overcome.
But analysts note that some industries suffer particularly badly, and will be much longer to recover from recession. This, in turn, relates to the industry of integrated circuits. Do not forget in a difficult situation today producing flash memory chips and memory - the crisis initially caused by the overproduction of the product, worsened the general economic downturn. According to the expectations of specialists Gartner, to return to the performance of 2008 this segment of the IT-market would require significantly more time - until 2013.

 

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• 2001:technology industry situation
• coparision of 2001 crisis and 2007 crisis
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