Silicon Valley was once a technology hub where all entrepreneurs wanted to be and grow by starting a company; but today the Valley has been deeply wounded and continues to bleed. Small entrepreneurs started to leave the valley first, and then big enterprises and then giant technology companies started to leave the valley. The city of Austin, Texas, became the new base for entrepreneurs and all companies, large and small, started to migrate to Austin one by one.
The most important of these companies are SpaceX and Tesla. “Silicon Valley continues to bleed, and I hope this bleeding will stop soon,” said Elon Musk, the company’s CEO, in an interview. In this statement, Elon Musk stated that there are serious problems in Silicon Valley, which means that the valley will be emptied in the long term and that the entrepreneurs will continue their initiatives by discovering new places in these places. There are actually several important reasons for the blood loss of the valley.
Among the big technology companies leaving the valley, SpaceX, Tesla, Hewlett-Packard and finally Oracle’s announcement that they will leave the valley and go to Austin was reflected in the valley as a big shock and everyone’s eyes were turned to other technology companies after these news. What made Silicon Valley important was that all technology companies were in the same place and the ecosystem was here with all its strength. The companies leaving the valley one by one also revealed the idea that this ecosystem will collapse.
According to the Oracle officials’ statement, almost all of the employees work from home, and the companies decided to leave the valley one by one due to the difficult living conditions in the Bay Area, the high rents and the employees being uncomfortable with all these issues. The biggest problems of technology workers are the limited living spaces and the high rents. A software developer with a monthly salary of $ 5,000 pays a rental fee of almost $ 3500 or $ 4000, which affects employee productivity.
It invested $ 1 billion in Austin, Texas at Google and started to set up its parallel office in Austin. Another reason for leaving the valley is political reasons. The separation between Republican and democrat has deepened in America and some companies that support Trump are from the valley dominated by democrats; He headed to Texas, ruled by the Republicans. Another reason is that taxes are lower in Texas and companies want to take advantage of these tax cuts is another reason for moving away from Silicon Valley.
Valley is sure to be bleeding in the next few years, and one by one companies are moving away and investing in Austin and moving their business to Austin. Of course, there are giant companies such as Facebook, Apple, Google and Twitter in Silicon Valley and the very large campuses of these companies are located in this region. It seems difficult for these big companies to leave the valley completely; But they will want to be in the ecosystem by establishing Head Office in Austin, and Google made the first step by investing in an office. We will continue to observe the developments and convey them to you.