Need someone to lead product or development at your software company? I lead product and engineering teams and I'm looking for my next opportunity. Check out my resume and get in touch.

The Internet is NOT going out of business

Freshness Warning
This article is over 19 years old. It's possible that the information you read below isn't current.

People keep asking me about the dot-com dream falling apart and asking if I’m worried.

The companies that are failing are those with business plans that read like my kindergartner’s homework. Those companies that built online businesses based on principles that seem absurd in the offline world are finding out that customers aren’t fundamentally different just because they are online.

140 dot-coms did fail in the US last year, but that is a small percentage of the 1700 that were funded in 1999 (according to numbers from PriceWaterhouseCoopers). Venture capital investments are up from $60 billion in 1999 to $80 billion in the first three quarters of 2000.

As for employment, in August of last year, in the midst of dot-com deaths, Anderson Consulting released a study that estimated that the Internet economy would create 10 million jobs worldwide by 2002. 5.8 million of those will be in the US. In contrast, The Industry Standard’s Layoff Tracker counts only 54,167 job losses as of yesterday.

A report from Cisco and the University of Texas finds that employment in the Internet sector grew 10% between 1999 and 2000 and that the Internet economy directly employs over 3 million people. The same report states that only 9.6% of the Internet economy can be attributed to dot-coms. In fact, the "slowdown" of spring 2000 seems to have hardly affected employment. Nearly as many jobs were created in the first half of 2000 as in all of 1999.

Spending is also up. An InternetWeek survey shows that 77% of companies plan to increase their Internet spending an average of 40% in 2001. The University of Texas study reported that Internet Economy revenues were up 58% in 2000 to $830 billion.

So don’t panic the next time someone says that the Internet Economy is failing just because some company realized they can’t turn a profit by shipping 50 pound bags of dog food to consumers.

Your comments:

Text only, no HTML. URLs will automatically be converted to links. Your email address is required, but it will not be displayed on the site.


Not your company or your SEO link. Comments without a real name will be deleted as spam.

Email: (not displayed)

If you don't feel comfortable giving me your real email address, don't expect me to feel comfortable publishing your comment.

Website (optional):

Recently Written

A framework for onboarding new employees (May 15)
There’s no single good way to onboard an employee that works for every role. Here's a framework for creating a process that you can adapt to each situation.
TV hosts as a guide for software managers (May 10)
Software managers can learn a lot from journalists or late night TV hosts and how they interview people.
The Improvement Flywheel (Apr 29)
An incredible flywheel for the improvement of a development team. Fix a few things, and everything starts getting better.
Managers and technical ability (Dec 26)
In technical fields, the closer you are to the actual work being done, the closer your skills need to resemble those of the people doing the work.
Dysfunctions of output-oriented software teams (Sep 17)
Whatever you call it, the symptom is that you're measuring your progress by how much you build and deliver instead of measuring success by the amount of customer value you create.
Evaluative and generative product development (Aug 30)
Customers never even talk to the companies that don't fit their needs at all. If the only product ideas you're considering are those that meet the needs of your current customers, then you're only going to find new customers that look exactly like your current customers.
Product Manager Career Ladder (Aug 19)
What are the steps along the product management career path?
Building the Customer-Informed Product (Aug 15)
Strong products aren't composed of a list of features dictated by customers. They are guided by strong visions, and the execution of that vision is the primary focus of product development.


What I'm Reading


Adam Kalsey

+1 916 600 2497


Public Key

© 1999-2020 Adam Kalsey.