“Dennis Donovan says he’s seeing more ‘second-stage’ technology companies choosing to leave the Bay Area altogether, many of them opting for Reno, Nevada, and other Mountain West cities like Denver, Boise, or Phoenix.”

Excerpt:

“As a result, we wanted to choose a place where big tech companies weren’t already in. No Googles, no Facebooks, no Microsofts, no Amazons,” CEO Fritz Lanman said. He added that the company also wanted a city that afforded opportunities for its employees to live an active lifestyle. This was a must-have for his fitness startup.

ClassPass didn’t have to go to Montana to avoid being in the same place as Google, Facebook, and Microsoft. But the options aren’t as plentiful as they used to be. Thus, tech giants are starting to slow their pace of growth in the Bay Area as they look to other cities.

“Last year we grew faster outside the Bay Area than within the Bay Area.” Google CEO Sundar Pichai shared his insights during a 4th quarter earnings call last week. “To support this growth, we will be making significant investments in offices across nine states, including Colorado and Michigan.”

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About WDGC Technology Services

Most corporations have successfully adopted a “follow the sun” deployment strategy for establishing software development and applications centers. Because of this, more companies are now embracing the US for siting new capacity. Therefore, if you need assistance in finding an optimal place for your technology or software development center, IT site selection services from WDG Consulting will guide you to the right location. Learn More.

 

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