Hot Market Spaces in Technology

Red Herring has an interesting interview with Randy Haykin, who heads up Outlook Ventures, an early-stage venture capital firm. Haykin identifies what he considers to be the “hot” market spaces in technology these days. On his list:
-Digital Security (although it may be peaking right now)
-Virtual Patches for Microsoft systems (temporary fixes until Microsoft sends out the offical patch)
-Products that help manage permission and access control for IT systems in larger companies
-Software
He is not very excited about offshoring firms, however, which used to be a hot sector in technology. It does not seem to deliver the cost savings that everyone thought it would when it first became the rage.
VC activity in technology firms should continue to increase as valuations are up significantly over the past three years. What is interesting is that it is attributed in large part to better bootstrapping. Seems that VCs like to see their money spent on producing and selling rather than administrative overhead.