Too early to declare the Internet party over

Out in California there are mixed signs for those longing for definitive indicators about the health of the technology industry and the US economy in general. The usual metaphor for the boom Internet economy of the past few years is that of "the party" - as in, the party was great while it was roaring along but looks like the party's over.

The Irish Times can reveal that the party, metaphorically speaking, is very clearly not over. Having attended the opening reception thrown by Hewlett-Packard for hundreds of national and international members of the press in the Argent Hotel in downtown San Francisco, I can assure readers that the leading economic indicators in Silicon Valley - the presence of jumbo prawns and crab claws on the hors d'oeuvres platters - remain good.

In addition, all the other California gastronomic accoutrements were present, in abundance. The make-your-own bruschetta, with four varieties of toasted breads. The Chinese selection of prawn dumplings, siu mai appetisers, and mini steamed pork buns. The fresh tortellini and sauces table. And of course, the sushi bar. In addition, The Irish Times counted at least four choices of bottled micro-brewery ales, and one could select from a good chardonnay or sauvignon blanc (in the whites department) or a respectable merlot or cabernet sauvignon (for the reds). The party, at least in one form, continues.

On the other hand, one can tell the worrying state of affairs in the tech sector by the weight loss suffered by the magazines that cover the industry. Only last summer, the Valley's favourite bellweather publication, Red Herring, published a letter from a reader distraught that the monthly mag had grown so fat with advertising that he could no longer hold it comfortably in one hand while lying on a poolside chaise longue. Oh dear.

The Herring's current issue is svelte, following the enormous fall-off in advertising stemming from the withdrawal of funding from, primarily, the dotcoms that beefed up its revenues.

I can testify to a more personal experience of just how cautious and quiet this once boisterous area of publishing has become. For at least two years the magazines have been a seller's market for journalist who write about technology. Editors would acquire your phone number or email address from God knows where and literally beg you to write for them. These publications pay extraordinarily well, too, so working for them was an extremely attractive proposition.

Then, the requests began to tail off towards the end of last year. Story pitches sometimes went unanswered. And this week, proposing a news piece for one of the main magazines, I was politely told they are no longer using freelance writers - a situation that first arose in the online publishing arena and slowly spread to the print titans. Whew! Talk about a shift. As in many areas of technology, being attached to an old world, brick and mortar company - for journalists, an established publication that's been around for over a 100 years - sure looks like it was a great career move.

Of course, the hot story of the moment out here is Napster, Napster and Napster. The online file-sharing phenomenon, a site that allows music lovers to trade music files called MP3s with each other for free, has been told by a San Francisco judge that it can no longer let users swap copyright files (pretty much the whole catalogue of files that Napster users care to exchange). And with perfect timing, the technology publisher O'Reilly is hosting the first ever conference in the city on peer-to-peer networking - the method used by Napster. The conference has a great line-up of speakers and will have plenty to digest, as the Napster trial continues nearby.

And finally, I got a taste of energy crisis-ridden California this morning. On came the day's power alert announcement. Today, we apparently have a stage three alert, which means the state has electricity reserves of under 1.5 per cent. "No blackouts are expected, though," purred the announcer. Well, hallelujah for that.

klillington@irish-times.ie