Presents

Over the past 2 years, we have just experienced what I call the first global, high-tech NAFTA recession of the 21st century. The difference between today’s recession and the low-tech NAFTA recession of the early 1990s is that this one targeted the high-tech workforce before trickling down. Some of the heavy hit technology areas included Austin, Boston, Dallas, Houston, Raleigh-Durham and the Silicon Valley where hundreds of thousands of people have been let go. In one sense, history repeats itself, as companies continue to consolidate, fold, hunker down, outsource, reinvent, relocate, reprioritize, retrain and retune their business to weather this storm. In the end, this storm too will pass, bringing to Austin the dawn of a new day where education, economic development, and infrastructure/technology investment will be the lifeblood to a brighter future.

Why the high-tech NAFTA you ask? (Hint: Think Network Appliance Free Trade Ascension!) Well from my vantage point, at the end of the past decade we experienced the rise and fall of the dot com wave (i.e., “A Brinca-Brinca Blowout) when cheap money fueled both tremendous innovation and tremendous waste. To a certain degree, we experienced the ascension and commoditization of technology such as “Network Appliances” spurred on by “Free Trade” (e.g., Global Economy/Open Source/Cheap Money) eventually affecting the symbiotic relationships of a capitalistic society. In other words, I believe that this helped promote the early adoption of simplified, low-cost, Jiffy-Lube Network Service maintenance models that in a small way contributed to a drought period when corporate revenues declined and money became scarce starving some of the very startups that were promoting change.

During the good times, revenue and profits were soaring, money was readily available and everyone wanted to play the game. VCs were chasing the big IPO's; entrepreneurs were chasing the next big thing and investors were looking for the next YAHOO. Instead, commoditization, a technology products glut, a push toward product portfolio diversification and in some cases, a house of cards, left companies stretched thin leading to the “sucking out of the oxygen” that was fueling things such as change, dreams, experiences, innovation, prosperity, greed, stress, turmoil and the education of a new set of entrepreneurs. Overall, for my startup buddies and I, it was an interesting time that we fondly describe as - “it was the best of times and the worst of times”.

In contrast, the low-tech NAFTA recession of the early 1990s, focused mostly on the blue-collar workforce of the industrial, manufacturing and textile industries. Heavy hit areas consisted of border regions where unemployment soared to double-digits as industries consolidated, evaporated, relocated, but mostly adjusted to the new way of doing business. The unemployed found themselves in survival mode as they too reinvented themselves through reemployment, relocation, retraining, opening small businesses (e.g., lots of jumping balloons, some successful, some not, but a low-tech example of free money and popping balloons) and some hunkering down waiting for new industries to move in Most often than not, people, communities, and business are resilient, doing what’s necessary to survive, albeit difficult, and live to fight another day.

Turning our attention to Austin, local area leaders have been coping, grappling, managing, planning and strategizing as they work to deal with the recessionary effects of budget shortfalls, project delays, priority adjustments, reemployment services, leadership changes, etc… In the current climate, they will be busy trying to maintain health and human services, better deal with the new post 9/11 realities, deliver basic educational services with an eye towards improvement, and look beyond the horizon to have a better chance of managing minor headaches now before they become full blown migraines.

As an outsider looking in, Austin leaders need to be a more progressive, bold, and possibly visionaries. They need to both innovate and learn from others successes and failures. Sometimes we need to put on those 3-D glasses and see things in a different perspective. Austin needs to invest in its future; it needs to invest in its people, communities, economic, business and infrastructure development. This will take time and hard work as it develops, adapts and executes on its strategic plans. But at the same time we can not lay it all at the feet of our leaders, citizens must also become more informed and involved. As a start, more citizens must participate in some dialogue to figure out what is right for Austin.

Following are a few examples of some cities that have invested in their future:

San Diego: Changes towards more diverse and technology centric economy. —http://www.sdrta.org/sdrta/aboutsdrta/09052000.htm ;

San Francisco: Automated Bay Area Rapid Transit System (BART)—Intelligent Movement of People, Cultures, Ideas; www.bart.gov

Boston: Oldest education, technology and business centric city with massive projects underway—www.bigdig.com; Logan Express bus system between outer area towns and suburbs—see www.loganexpress.com/logan; Faneuil Hall/Quincy Market —www.faneuilhallmarketplace.com

Ottawa, CA: Royal Canadian Mountain Police; RCMP Transformation,

24X7 Critical Delivery of Human Safety/Security Services—investment in high availability/FT technology—www.rcmp-grc.gc.ca/index_e.htm

Current entrepreneurial/other activities closer to home:

Austin: Public Transportation, Downtown Improvement —www.i35austin.com, www.capmetro.org, www.rapidtransitproject.org, www.ci.austin.tx.us/greatstreets

Corpus Christi: New alliances, new initiatives, new vision—www.portofcorpuschristi.com

El Paso: 21st century “El Paso Del Norte” Multi-national gateway (ePlaza) technology initiatives/vision—www.elpasoinc.com/Archive/02_03_17/intrview.html, www.hispanicbusiness.com/news/newsbyid.asp?id=5258; Promote SW development and services technology industries—www.epdnsa.org;

Of The Wall (SWA Model) Transportation Network Thought:

SWITCH: Robert Mueller Central Switching Station

HUBS: 6th St.—Plaza Saltillo, UT Area, Arboretum Area

NODES: Bergstrom, Barton Creek, Lakeline

WIRELESS: La Frontera/Dell Diamond

EXPRESS: RR/Georgetown, San MarcosBergstrom Express

In East Austin, we have some hometown heroes (Ana, Danny, Jose, Rudy, Willy, etc…) that make a difference day in day out. They are in the trenches teaching, listening, guiding, interacting with the young, the old, the curious, the needy. They are bringing technology deep into the barrios — to hidden places like the single computer station cybercafe hosted at Porvenir’s Mom & Pop store where neighborhood kids go to use the computer and also get rewarded for a good report card.

What does the future hold for Austin? I think the future looks bright. I see a diehard human spirit and tremendous human potential being tapped one day at a time. I see a connected, diverse, mobile, digital and more global city that will make people of all walks of life feel welcome. It will cultivate an environment of collaboration, education, innovation, leadership and opportunity leading towards a better quality of life.

Austin needs to embrace a more collaborative entrepreneurial spirit and be open to new partnerships/alliances. In addition, it must keep in mind that crafting a win-win solution is not easy but it is necessary. To achieve this compromise is okay, but doing nothing is NOT! To all I say invest in the “Nuevo Austin”. To corporates, yes times are tough, but you can do more, much more! To the community I say that you must analyze and question change, but change is constant and can be good. To the youth, “no tengan miedo”, learn, dream, challenge yourselves and others. To the leaders of tomorrow, I say a little “ganas” goes along way—listen, be open to new ideas, challenge the status quo and deliver!

Leonardo Salazar Sr.

leosr@austin.rr.com

A post 9/11 layedoff techie

{HINT: Last employer— “Estoy Muy Contento en la busca de mi próxima oportunidad, aunque aun poquito quebrado.” }

P.S. You can take the boy out of the barrio, but you can’t take the barrio out of this “vato”.

Snapshot of Technology Companies:

AMD —- “Muchas Ganas, No Mañanas Strategy”

(i.e., The little engine that could. For interesting article on AMD’s history read the “Last Man Standing” cover story of the April edition of Upside Magazine—online article ay be found at www.upside.com )

CPQ/HWP —- “The You Will Be Assimilated Strategy”

(i.e., As the HP/Compaq merger progresses, I can’t help but wonder about the four cultures —- Compaq, DEC, Tandem Computers and now HWP —- that too a certain degree will still exist in one large company. The challenge will be ignoring politics and doing the prudent thing regarding selection of ongoing product/solutions given the the quantity/wealth of their respective technologies including the technology/IP that has been collecting dust on the shelf since initial mergers.)

DELL —- “The Dell Diamond Strategy”

(i.e., Like the RR Express, they are lean, mean but can they keep on sizzlean? For now, Dell covering home base, Microsoft (Software) on first, Intel (Chips y Salsa) on second, Network Rookie at ShortStop (Network/Switches), EMC on third (Storage) and wannabe partners at the mound pitching new ideas/initiatives (modular computing, blade servers, Infiniband, virtual computing) - outfield being worked out...)

GATEWAY —- “The Anti—Chick-Fil-A Strategy”

( i.e., Buy cow, not chicken! I say watch out for the bull! Cool commercial though with Tech’s new Lone Ranger y Tonto jamming down the highway in that 18-wheeler; good thing Tonto’s head wasn’t bobbin up and down.)

IBM —- “Soup To Nuts Strategy”

(i.e., TBD - Reminds me of “Mona The Elephant” at the El Paso Zoo who moved slowly but survived for years & years. People eventually just felt comfortable having her around, they would bring her peanuts and watch as she was hosed down in those hot summer days. Is it time for high-tech Mona to go on a wild tear or is it soup time?)

INTEL —- “The Back To Basics Shell Game Strategy”

(i.e., Spread itself thin and did not cover its backend. Formidable player who will focus back on core areas and tread more carefully as they try to regain lost ground.)

MICROSOFT —- “...Dot Com, Dot Net, Dot Virtual Computing... Strategy”

(i.e., Microsoft is a formidable opponent… a grand chess master with deep pockets and ways of making you smile as they make you cough. They’ll move up the food chain along with the elevator floor. For fun take a look at www.lycoris.com )

MOTOROLA —- “Digital Confucius Strategy”

(i.e., Old company, slow to change, not small company friendly… I can’t really tell what they are doing, but have a soft spot for them given my CO-OP experiences.)

NOKIA —- “The Mouse That Roars Strategy”

(i.e., A true global partner with a refreshing alternative view and ethical, forthright, honest, … too boot! They are much, much more than an excellent wireless phone company. Check out their site, products, vision and you’ll be pleasantly surprised.)

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