Colleagues have noted lately that the software job market seems to be picking up. I’ve certainly seen an increase in the number of cold calls from recruiters, which would tend to support this observation. The next question is: are we entering another software boom?
Over at VentureBlog, investor David Hornik addresses another aspect of this issue:

Over the last couple of months I’ve noticed an increasing sense of unease in the venture community about the trend in Web 2.0 company creation and financing events. While no one is officially willing to peg it Bubble 2.0 for fear of missing the next great opportunity, I’ve been having lots of conversations with venture investors about this nagging feeling that we’ve been here before. . . So why am I now getting this increasingly uneasy feeling? I was chatting with a veteran of Bubble 1.0 recently and I think he hit on the thing that makes those of us who’ve seen this movie before most nervous. He pointed out that there are a large number of “companies” being created again for the express purpose of being acquired. I certainly have seen it.
. . .
If companies are indeed again being built for acquisition rather than independence, venture investors are in for a rude re-awakening (that will be precipitated by a very loud popping sound). While a few companies being built for acquisition will be acquired, the vast majority will ultimately run out of money and be shut down (particularly as each new Web 2.0 idea doesn’t just spawn one company but three or four). So when I hear large numbers of companies pitching themselves as excellent acquisition candidates before they’ve even gotten out of the gate I can’t help but think to myself that we are in the heart of Bubble 2.0. Sadly, only one thing follows Bubble 2.0 and that is Bust 2.0.

A new software bubble might be good for my job and compensation prospects in the short term, but I’d take a steady, healthy industry any day over another crazy boom and bust cycle.