A note: I don’t know that there will be a recession. I know that the real-estate bust in the US is a pretty big deal, and that banks from Europe and Asia have been pretty heavily invested in that supposed goldmine. And any fall-out in the US, i.e. banks shutting down or otherwise, will likely have global repercussions on the banking-sector, and affect other industries also.

With that out of the way, three problems/phenomena I associate with these times are:

• A lack of accountability in investments (e.g. currently real estate and previously startups & Enron), also accompanied by emotions like fear & greed.
• Rising input-costs (the market should normally adjust for that, but the explosive growth in demand from emerging countries + the lack of an alternative for, in this case, fuel, make this a pretty big uncertainty)
• Changing paradigms, such as the rise of webware, the (expected) fall of hardware-prices, the possible fall of software-sales, the continuing displacement of brick & mortar business models, businesses being forced to go & think green, and much, much more.

So, there’s probably a few more symptoms (throw them out in the comments!), but it seems to me that the internet is pretty well placed to deal with some of these problems.

Let’s start with accountability. The strength of the web is that everything on it is digital and, in theory, nearly (*) everything can be measured (*: I am quite sceptical about the measurability of video & audio, though arguable the serious data is still in text). Added to this, there are technology-shifts, like digital television, mobile computing, and E-Ink, which make it easier to have a wider reach as a data-gatherer, not to mention that business are increasingly placing their data online, again facilitating data-exchange in partnerships. This should make it easier for businesses to base their expense on actual data, the same for investors and advertisers. Together with the consequences of the last internet-bust, I think that everyone is pretty careful to base their decisions on information, not hopes and dreams (well, I’m still sceptical about Twitter).

Next, rising input prices. Having blogged on the topic of food and retail for about a year, I’ve obviously had to follow this trend/reality quite a bit. The NYTimes heading I linked to above summarises my feelings quite well, customers are looking at the opportunity cost of fuel (as well as the cost of being green) and alternatives like e-commerce may seem much more attractive. In the long-term, people like James Howard Kunstler are calling for more and more “locality,” i.e. that people will be willing to migrate less for work and, I guess, shopping, which opens up opportunities for e-commerce and ways of working across a distance.

Finally (?), changing paradigms. Well, whatever the new world looks like, a pretty warm place is reserved for the web. Web-apps and -services are maturing, offering more and better features, and providing individuals and businesses with a comfortable ecosystem to operate in. The OLPC, the Asus EEE, and other cheaper systems (when Dell comes in, it will be mass), may be less powerful, but they will be optimised to use the web most of all. Societally, it may eventually become the logical choice for the mainstream to spend less than $500 for a laptop, in which case hardware-makers and, possibly, software-makers will suffer. But the web won’t. Similarly, while I don’t yet see brick & mortar disappearing, it is clear that eventually 99% of B&M businesses will have to have an online presence. About the world going green, I can’t sell everything, perhaps someone else can give the answer to that.

Is the internet recession-proof? My guess is as good as the next guy. But, more efficient use of computing, datamining, search, advertising, e-commerce, and logistics are all technologies I am extremely bullish on these coming years.

What do you think?

Vincent

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The opinions expressed within this blog are those of the authors alone. ©2011 Tech IT Easy. All Rights Reserved.

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