I had thought of writing an article about this just about a week ago. Now that I am writing it I have even more data supporting my hypothesis.
The weekly jobs data from the US.
Erie feeling about the markets all around. Why does this look exactly like the recession which we have supposedly overcome? Why, despite every single data point suggesting a slowly moving economy, is the market higher? If quantitative easing does indeed happen (I dont know if one can take the interest rates below 0) how is that a good signal for any company when you know no one is going to be out buying?
The stock markets tend to exaggerate the good news and down play the bad ones consistently, over only when the bad news could actually be devastating.
Up until last week my reasons could have been biased because of my expectations of a correction because of my positions in the market. This week I have already booked losses in my positions and yet the feeling has only gotten stronger.
Just some preliminary thoughts to get a discussion started. I have my research partly ready will work on it and publish it later in the week. (busy with some work and studies) Scary as it may sound I think we are headed for a recession again. (by we i mean the US in particular a global slow down in general)
Gopal Balakrishnan
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How do you think the companies in the cloud computing sector will fare in the next 3 years. Eg: VMWARE, CITRIX, etc.
ReplyDeleteCloud computing at the moment seems to be the next big thing. But one must remember that while private cloud for enterprise customers has been and will continue to grow I don't really think the public services offered on cloud will continue the way it is hyped to grow.
ReplyDeletePeople will eventually start demanding the kind of efficiency and speed improvements they are used to seeing on their personal devices.
While it is a novel idea and will make many services which were previously out of reach of individuals or small groups it wont grow to a scale (on the personal computing space) where it starts replacing the existing local processor intensive equipment and wares.
In this backdrop I think companies also realise that the enterprise business space is where there is most money to be made. I dont quite follow citrix. But I am aware of the strategies being pursued by VMware with Cisco and also the strategy of HP in this regard. These companies will depend on a great extent on the business investment that companies are willing to make in this uncertain environment. These companies will be relatively robust if they position and market themselves as business investments which will in the long run save any company a lot of money.