COVID-19 Trend: Crisis Will Accelerate Tech Growth
As a high-tech consultant for many years, I’m betting that the high-tech sector will rally together and help us get through this crisis.
The Israeli government has approved a $25B (NIS 90 Billion) economic rescue package to help overcome the Covid-19 crisis, as other governments did around the world.
With all due respect, this cash injection will not really benefit anyone.
With 70–80% of the economy shut down, the only heroes that can save the day at this stage are the high-tech companies.
To be perfectly honest, the crisis has given the high-tech sector an opportunity to accelerate growth and development. And this is probably a trend we’ll see more of in the near future, as roughly 80% of our daily affairs are shifted online.
One indication of things to come are the new and very interesting app trends. Mobile app analytics leader AppsFlyer has just released a report about the COVID-19 Effect on App Marketing, which demonstrates very clearly significant increases in app downloads, usage and profits in certain sectors. The report also includes specific details about usage in each country. For example, there’s been a major spike in the use of educational apps in the UK.
What Can We Do Right Now?
Since this situation will continue for at least half a year, and it could take another 6–12 months to recover, we’re looking at about two years of this.
So we may as well face the fact that we need a plan.
The emergency plan I’m suggesting for Israel would cost much less than the economic rescue package approved by the Knesset:
- Food package for all families.
- Exemption from all utility payments (water, municipal taxes, etc.).
- Exemption from paying rent.
- Freezing of bank debts — especially mortgages.
- Online educational program teaching basic values, and how to live within our means.
My hope is that the high-tech sector will play a major role in helping the economy get through this challenging phase, and also help make the transition to the virtual realm more pleasant.
The companies that are leading the way are not sitting around waiting for governmental bureaucracy to make the necessary changes. They are the first to make major shifts and suit themselves to the new conditions. And they will pull the rest of society up so that everyone can enjoy a decent standard of living.
