Mike Middaugh
Stax on Stax
04 Aug 2020

The Pandemic Recovery May Look A Lot Like the Dot-com Recovery

I started my career in the shadows of the Dot-com crash. People were not sure if they should invest in digital technology or hide in the sand. The current environment feels oddly familiar.

The last time Australia’s unemployment rate crossed 7% was Oct 2001, in the peak of the crash. We hit 7.4% in June, so we have clearly entered into a cycle that will need to work its course. However, high unemployment always leads to historically high levels of innovation, as well as a need to complete actions faster and cheaper.

So why not look back twenty years to see what strategies worked? When ecommerce overshot the mark, the market backlashed. However, the companies that invested in early 00s are the tech giants of today. While the world was counting surplus hardware and sat in shock over the collapse of ecommerce, the software and internet companies slowly took over the world.

I've come onboard as Stax’s Managing Director because the company is betting the future may look a lot like the past.

COVID-19 has led to increases in cloud consumption and migration in Australia. A recent report saw 59% of enterprises predicting their cloud usage would be higher than they predicted, and Australian cloud spend is tipped to reach the $1 billion mark for the first time in 2020. But despite this growth in need, there is a severe shortage of software engineers and cloud developers in almost every tech market around the world.

This current shortage is creating a bottleneck in the digital transformation ecosystem. There is shortage of supply, compounded by an excess demand for cloud engineers. Like most challenges of the last century, technology presents a great way to solve old problems.

Stax is focused on rapid global expansion while the market struggles to keep up with its cloud migration needs. Historically, pandemics create waves of innovation and job opportunities. I am thrilled and honored to be part of a team that is creating new jobs during a global recession.

If your choice is between buying or building, but there is no one to build, it makes for an easy decision. We see an opportunity that only comes along once every couple of decades: help companies survive by making their cloud computing a competitive advantage of their business.

If you don’t see your AWS environment as a competitive advantage, we would love to understand why. If you don’t know where to start on your cloud migration, we would love to help. If you don’t want to have a six-month project and a seven-figure CapEx bill to get your foundations live in AWS, we would love to help.