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Techsodus: Has California Lost Its Charm?

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Techsodus: Has California Lost Its Charm? Tech Mirror TECHSODUS: HAS CALIFORNIA LOST ITS CHARM? Recently billionaires Elon Musk and Larry Ellison announced their decisions to leave the golden state of California as did HPE. For decades, California has been the global headquarters for technology, but is that now changing? Some have already called it “Techsodus” Sunil Rajguru [email protected] pcquest.com twitter.com/pcquest facebook.com/pcquest linkd.in/pcquest [email protected] JANUARY 2021 PCQUEST 65 Tech Mirror n 1953 when William Shockley left New Jersey’s Bell Labs (now owned by Nokia) for California’s Silicon Valley, he spawned a revolution that has lasted till this very day. Whenever you read that Ia company is headquartered in Menlo Park, Palo California has passed Alto, Cupertino, Sunnyvale, Santa Clara, Redwood a law that grants a City or Mountain View, it’s all Silicon Valley. California’s economy has been in the range of permanent worker $3 trillion, a figure which India recently is catching type status with minimum up to 70+ years after Independence. It is home to wage, sick leave and other companies with a market capitalization in the range of trillions and boasts of the best tech brains of the benefits to gig workers. world with amazing innovations. That will grant special The first billionaire to have a problem with Sili- con Valley was “Paypal Mafia” don Peter Thiel whose privileges to say Uber- Palantir had a high-profile IPO recently. But he still Lyft drivers. Both these stayed in California, choosing to move to Los Ange- companies have said they les proper. Palantir moved to Denver Colorado. Then there’s Amazon which is headquartered in Seattle. cannot afford to do so and Jeff Bezos has many homes but his most high-pro- have moved the courts file is the one in Washington DC. Trouble in paradise started with Musk. He had with a long-term threat a high profile spat with the California government to exit the golden state when he wanted to keep his Tesla factory open of California altogether. during one of the Covid lockdown regulations. He declared “Give people back their goddamn free- Another kind of exodus! dom” and used the term “Fascist”. Musk has also repeatedly quoted high taxes and regulations as being cumbersome. He put up his seven California homes for sale and headed for Texas. SpaceX is already based out of Texas, but Tesla and the Boring would use “the power of Zoom” to work from Lanai, Company may follow. an island he bought for $500 million some time Bill Hewlett and David Packard started the back. famous Hewlett-Packard in a Silicon Valley garage There has been a lot of activity around Covid. in 1939. That split into HP Inc and HPE (the E stand- Macy’s shut down its tech centre in San Francisco. ing for Enterprise). Well HPE is also now headed Financial Services giant Charles Schwab was also for Houston in Texas. In a blog post, Antonio Neri, in the same city and moved to Texas. Dropbox CEO President & CEO said… Drew Houston was one of the first to buy a house in “Houston has long been our largest U.S. employ- Austin Texas. ment hub, and construction has been underway There has been a homelessness problem in Cali- since the beginning of the year on a new, state- fornia and they have tents and public pooping on of-the-art campus in the area. Houston is also an the streets. Many middle class citizens have already attractive market for us to recruit and retain talent, fled California over safety and other issues like drug and a great place to do business. The most diverse addicts among the homeless. Californian politicians city in America and the fourth largest, Houston have increasingly talked of higher regulations and provides the opportunity over time to draw more taxes related to businesses and inheritance. This has diverse talent into our ranks – a key priority for HPE not gone down well with tech moguls and some as we work to be unconditionally inclusive.” have decided to quit the golden state. After that came another high-profile announce- But the trillion dollar question people are asking ment by Larry Ellison. Oracle too is headed to Texas is whether Techsodus is a temporary blip for Silicon while Ellison is relocating to Hawaii saying this will Valley or will it only get worse in 2021 and beyond. work in the new age of collaboration. Ellison said he 66 PCQUEST JANUARY 2021 pcquest.com twitter.com/pcquest facebook.com/pcquest linkd.in/pcquest [email protected].
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