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Gap Widens Between Tech Richest and the Rest -
MARCH 16, 2010 | Wall Street Journal | Ben WORTHEN. A handful
of cash-rich companies are consolidating power in the technology
industry, using their wealth to expand into new businesses and making it
harder for small and midsize competitors to break through. Why the
industry is evolving this way is rooted in balance sheets. Over the past
2 years, Apple Inc., Oracle Corp., Google Inc., Microsoft Corp. and 6
other large tech companies have generated $68.5 billion in new cash,
compared with just $13.5 billion for the other 65 tech companies in the
S&P 500 Index combined. Because of their massive cash accumulation,
these companies can afford to take risks that smaller companies can't
at a time when the economy remains fragile. The result is a bifurcated
tech landscape, says Erik Brynjolfsson, a professor at MIT's Sloan
School of Management.
Apple  barbell_effect  Ben_Worthen  Big_Tech  cash  cash_reserves  consolidation  Erik_Brynjolfsson  Fortune_500  Google  large_companies  market_power  Microsoft  new_businesses  Oracle  risk-taking  small_business  start_ups  trends  winner-take-all 
march 2010 by jerryking
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