History has taught us that economic downturns spur growth in technology and entrepreneurship. As evident in the early 1980s where lower income tax rates encouraged people to work harder, and lower capital gains taxes encouraged individuals and companies to invest more. In the 1990s, corporations stepped up their capital spending programs with an increasing emphasis in information technology. We are again on the cusp of a technology boom. Laid-off workers during the current recession are creating new and exciting formats to sell their ideas. What are the tools they are using? Many are using free applications like Google Docs, Google Analytics, and HTML coding sites like WordPress to create their web pages. Why? Cost. The initial cost of starting your own business can be expensive. Entrepreneurs look to conserve funds anyway possible. Technology has allowed search engines like Google to increase their branding at the same time offer invaluable tools for people to develop, share, analyze, and publish their ideas.
The advancement of technology is changing the way we do business by making information easily accessible and transferable. Increasingly workers are telecommuting from home. Companies employ freelancers and consultants to control costs and increase flexibility. Contracted employees use Google Docs and other free business software programs to work anytime anywhere, and share their work with other freelancers and consultants around the world. The globalization of the world's economies and the increased use of social networking have linked people, with shared interests, build unlimited relationships.
The question remains: “At what cost to companies and their profitability will the shift in technology be?” How can companies like Google and Microsoft remain profitable by providing free applications that compete with their existing software? Their customers are demanding these products but how much are they willing to pay? Google and Microsoft’s need to increase their branding and sales have opened the door for their customers to determine the direction of their brand.
