boo.com all over again
The German Federal Employment Service (BA) recently launched its new online job market, arbeitsagentur.de. Now news start to leak through various media outlets that the ambitious project will exceed its initial budget by a whopping 100 million Euro. The BA had originally approved a budget in the neighborhood of 65 million Euro for the site and related integration projects (which, if you ask me, is already a good chunk of money for a more-or-less faulty and unreliable internet platform). Doing the quick math, that's a total of 165 million Euro. One hundred sixty five. Million.
Remember boo.com? They burned through the US$ 120 million worth of initial capital it raised in 1999 in about one year. Even an emergency infusion of US$ 30 million coughed up by LVMH did not prevent them from crashing. That was in May 2000. There was the bubble, the hype, we were all young, thought we could rule the world, and money was thrown at anything that had a funky domain name.
But at least I was under the impression that times have changed. I thought we learned from past mistakes. I thought web development work turned into a commodity. Now everyone can build a half-way decent platform for the fraction of work and time it took in 1999. Well, in theory, that is.
BA should hire Ernst Malmsten. At least he learned. When boo.com filed for bankruptcy he was quoted as saying: "We have been too visionary."
There you go. Too visionary. Eat that, BA. Oh and TollCollect, eat that, too.
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