Zombie Companies in 2021
|Brittany Hainzinger in Programming Wednesday, January 13, 2021|
Jason Walker, Field CTO of BigPanda, predicts zombie companies who have not transferred to IT infrastructure will not survive in 2021.
In the investment world, there is a financial concept known as a “zombie company.” These companies are only able to remain in business because financial debt is artificially cheap. When rates rise to normal levels, they are not able to survive. In the IT world, the pandemic has exposed a new type of zombie company: a company that has not digitally transformed their IT infrastructure and operations and was surviving because they relied on their brick-and-mortar business or antiquated supply chains. These zombie companies are going to die off in 2021. Economic contraction is going to eliminate companies who have not modernized their IT and infrastructure, and therefore can’t address the demand for digital services.
Financial pressure due to the COVID-generated economic downturn will drive consolidation in the IT Ops vendor space. Strong companies will buy up promising but cash-poor start-ups, moving into adjacent spaces through acquisitions.
About Jason Walker
Jason Walker is an experienced Director of Information Technology Operations with demonstrated success in leading a Global Network Operations Center in providing effective monitoring and incident management for multiple global online services and their supporting infrastructure. He is skilled in IT Integration, Autonomous IT Operations, Decision Support, and Business Process Management. Jason earned an MBA with a focus Project Management and Operations from London Business School.
Become a subscriber of App Developer Magazine for just $5.99 a month and take advantage of all these perks.
MEMBERS GET ACCESS TO
- - Exclusive content from leaders in the industry
- - Q&A articles from industry leaders
- - Tips and tricks from the most successful developers weekly
- - Monthly issues, including all 90+ back-issues since 2012
- - Event discounts and early-bird signups
- - Gain insight from top achievers in the app store
- - Learn what tools to use, what SDK's to use, and more