Five reasons why Demo 2009 still matters.

After a cross country flight on Virgin America (now you can never stop emailing, blogging and twittering even at 35,000 feet) and a trip up to Santa Barbara, I'm on my way to Demo 2009. The annual tech showcase is smaller this year which is no surprise and Chris Shipley the master (mistress?) of ceremonies is stepping down this year, but I'm thinking events such as Demo -- and TechCrunch 50, etc. -- are more important than ever. Here's five reasons why.

1. The economy sucks and the tech industry is not doing a good job at aligning with current economic needs. Users don't need products that entertain, they need products and services that help them manage finances, run more efficient businesses and help them dig out from the debt pile. I'm looking for signs at Demo that the tech companies get it.

2. Big tech vendors have a real tough time at adapting quickly to changed economic realities. The big aircraft carriers of the tech industry including IBM, Microsoft, Cisco aren't good at swift shifts in the market. Fast changes and harbingers of new directions are what startup companies do best. Finding and highlighting those companies is the role of the Demos, Techcrunchs, etc.

3. The event industry is undergoing big change, but the new model is not clear yet. Demo this year will be blogged, Facebooked, Twittered and social networked in extreme. Set aside for the moment the products being demoed and think about how the event is trying to balance the live with the virtual. Somewhere in this mix is the new emerging model for how new products and services will be introduced, evaluated and given a thumbs up or down.

4. Business models are changing. Virtualization, cloud computing and social nets are going to be integrated into the way businesses align their strategies with their technology purchasing decisions. Somewhere in those 40 or so demonstrations, I'm looking for just a couple of those "Aha!" moments when you think this guy -- or gal -- has made the leap from not just thinking up a cool new technology but has figured out a new business model as well.

5. Someone has to eat the shrimp.Yes, you can watch all the demos streamed live and yes it costs time and money to travel down to Palm Desert. But each time I make the effort (and I have sufficient t and e money) to make the trip, I find the off net, cocktail chatter -- the first social network -- pays big dividends down the road. Is that time and money still worth the effort? Stay tuned. 

Disclosure: Demo is owned by the same company I work for.

Eric Lundquist: Lundquist's Five Demo 2009 Business Awards
Frank Hayes: DEMO 09: Getting smart
Mark Everett Hall: Without social networks products will wither and die
IT Blogwatch: Demonstrators demo at DEMO 09
Frank Hayes: DEMO 09: Getting weird with mobile
Frank Hayes: DEMO 09: It's the economy, stupid...
Eric Lundquist: Demo 2009 live blog of company presentations
Eric Lundquist: Five reasons why Demo 2009 still matters.
more ....