Silicon Valley companies are moving to Texas for multiple reasons. Though Silicon Valley has attracted workers for more than a century now with its educational opportunities, mild climate, and job prospects, its status as a unique tech hub is fading slowly.
With strict regulations, high housing costs, and increased tax rates, living, working, and conducting business in the area has become very challenging. And post-pandemic, after analyzing the benefits of work-from-home model, tech companies are rethinking their relationship with real-time office spaces. Many CEOs are slowly opting to leave California, in favour of lower real estate prices, fewer restrictions, and better tax laws.
The post-COVID-19 employment scene has forced employers to look at the work-from-home arrangement as a viable employment model. Apart from recognizing the benefits of flexible work hours, employers have realized that workers lose work hours in commutes. The work-from-home model is therefore a better and more viable alternative to jobs that do not require on-site presence of workers.
Where are the companies moving to?
Many industry leaders like Dell and Advanced Micro Devices have already moved to Austin in Texas ( also known as "Silicon Hills"). Apart from providing very lucrative employment opportunities, this outdoors city has a great music scene, which draws people to the place.
According to data from the Austin Chamber of Commerce, as of November 2020, as many as 35 companies had either relocated to or opened new branches in the Austin, Texas.
Florida is another up-and-coming location for companies to relocate to. Miami is also a prime location for entrepreneurs and executives looking for fresh ground.
Which companies are a part of this massive historic tech exodus?
Hewlett Packard Enterprises
The company is building a new campus in Houston and it is going to be HP's largest employment hub. The company also declared its plans to move its headquarters from San Jose to Texas.
8VC
Managed by Palantir co-founder Joe Lonsdale, this venture capital firm is moving its headquarters from Silicon Valley to Austin for various reasons, including the cost of living and the work culture, among other things.
Oracle
While there are plans to continue some of its operations in Redwood City, California, the headquarters has moved to Austin.
FireTrail
This San Jose-based records management software company moved base to Austin early in 2020.
QuestionPro
This online survey software firm announced its plans to move to Austin from the Bay Area in January 2020.
DZS Inc
This telecommunications equipment firm announced its plans early in 2020 to move from Oakland, California, to Plano, Texas.
Apart from companies, many CEOs have also moved base to Texas, including Drew Houston (CEO of DropBox), Douglas Meritt (CEO of Splunk), and Elon Musk (CEO of Tesla). All of them have recently invested in properties in Austin for permanent residence.