IT Markets and the Recession

Of all the industries in todays market that were negatively impacted by the recession, the one that bounced back the fastest was Information Technology. Now the IT industry, like most industries had global double digit percentage drop in revenue in the 4th quarter of 2008. All nations except for Japan, which managed an increase of 4.3% had suffered decline. The worst hit areas of the world included Europe, the Middle East and Africa with more than 20% declining in each region. The semiconductor sector is not expected to make a comeback to where it once was until at least late 2012. This is based partly on the fact that the semiconductor sector didn’t make it back to where it was for four years after the dot com bubble in 2001.

Despite this gloomy outlook, the Information Technology industry has a few key things going for it. Software by and large was affected little by the recession, quick to recover, and was soon developing programs video games that were outgrossing many Hollywood movies. The hardware sector, although slower to return to revenue increases the was quick to react and make changes that the industry needed to blossom, with cheaper hardware that is easier to use for a recession consumer.

Microsoft's recovery and future

Microsoft is the largest software company in the world and they are best known for Windows OS and other office software. Since Microsoft is such a big company and their Operating system’s market share is very high, revenue remains relatively high. According stock report by STANDARD & POOR’S, total revenue in 2008 was 60,420 (Million $). As for 2009 it was 58,437, and next year was 62,484. Current problems that Microsoft has been dealing with are 1) the battle between Apple.inc regarding strategy for mobile devices 2) low sales of computers. As the world economy is still in process of recovery, consumer demand remains relatively low therefore it might take a while for Microsoft to fully recover. The most troubling thing for Microsoft would be the fact that Microsoft has been struggling to differentiate from Apple. For example, Microsoft has its own OS for mobile devices but its share in the mobile devices market is low. Apple has iPhone OS and Google has Android. Both of them have unique features and they distinguish one from another. As for Microsoft they are little behind in the race. Since Microsoft is shifting their traditional business that is making OS to other things such as mobile devices and game industry, to win the battle between Apple and other companies are very important.

Stock Report | March 26, 2011 |Microsoft Corp

Standard & Poor's Financial Services LLC

Oracle Recession Proof

Software giant, Oracle posted a 78% increase in company profits in its third fiscal quarter. This surge in profit can be largely due to Oracle’s acquisition of Sun Microsystems. The company acquired Sun Microsystems in 2009 for $7.4 billion. The Recession of ‘08-’09 made it difficult for smaller software companies to sustain the brunt of the economic hardships that many companies were facing. Larger software companies like Oracle acquired smaller software companies like Sun Microsystems during this time. Anyways, Oracle is starting to see its investment pay off. They managed to surpass last year’s profits of $1.9 billion, with $2.1 billion this third fiscal quarter. The company’s revenue is predicted to grow “9 to 13 percent, earning $10.4 billion to $10.7 billion”. The software giant believes that the increased gain in profit is also due to its 30% increase in licensing sales. I believe that many large software companies, like Oracle and Microsoft, will continue to buy up tech companies and firms in the future, as a means to increase their product diversity, and increase company profits.

http://www.redherring.com/home/26519

Recession Era- How has Apple fared?

Apple, like nearly all companies during the market crash of 2008, suffered a heavy loss in the stock market that resulted in a serious drop in product sales. However, ever since that dip, Apple has been growing steadily with little sign of hindrance. Possible reasons for Apples success include the popularity of its products across the world, especially by the young. Popularity abroad also helped Apple receive minimal damage from the recession. In 2008, Apples growth in the United States only amounted to about 2%, whereas internationally, the company grew a whopping 16%! Since January 2009, Apple stocks have soared from $100 each to $348 each. Apple is projected by S&P to grow even more and is still considered a strong buy.

Facebook VS twitter- A network emersion

Facebook, the worlds leading social network, has some threatening feelings towards a new and up coming network, Twitter. Facebook, where friends mutually agree to let each other in to their “virtual” lives, twitter, is a more fast paces network, in which people share updates with any person who cares to read them. Unlike facebook, this lets people interact with one another about real time talking points, and allows for a person to enter another person’s thoughts.

            This has allowed facebook to try and broaden their horizons, which failed last year, when facebook tried to acquire Twitter. Slowly, Facebook is trying to mimic features that Twitter has.

            Just because Facebook is the world’s largest social network, does not mean that they don't have to, or should try to evolve, and grow to the popularity mainstream.

Microsoft Marketing Strategy?

Software leader, Microsoft Corp, recently decided to sever its domestic ties with Interpublic Group of cos. and allow for Publicis Groupe take over its North American ad-buying business. Microsoft had been a long-time, twelve year partner with Interpublic Group, and throughout their relationship, IPG has had the opportunity to managing close to one billion dollars of Microsoft spending money, which was used to fund Microsoft’s media-buying businesses. Although, Interpublic Group doesn’t manage any of Microsoft's North American media-buying businesses anymore, they “are keeping the software giant's ad-buying business in 35 countries outside North America”, which a good thing, because Microsoft is one of the Interpublic Group’s biggest clients in regards to revenue generation. Unfortunately, Interpublic will have to play a smaller role in Microsoft’s ad-buying businesses, which is also unfortunate because Microsoft “spent $614.2 million on advertising in the U.S. last year, up 19% from 2009, according to WPP's Kantar Media.”. Interpublic Groupe will definitely feel a significance decrease annual in revenue in the near future.

http://online.wsj.com/article/SB10001424052748704608504576208781278991312.html#articleTabs%3Darticle

Consumer Trends: Is it better to ask a novice than an expert?

A new study in the Journal of Consumer Research details findings that consumers who search for expert advice on a product may not be getting a clear picture of what the product can or cannot do. For the experiment, the researchers developed two theoretical gaming consoles that would have a list of features. They then got a group of people together and tested their level of expertise in video games. They then showed the experts and non-experts a list of features that each console had. Later they were tested on what the features of each console were. They threw in some trick questions, such as whether a console had a functional dvd-player or not when there had been nothing on the console sheet concerning the dvd functions of the consoles. Surprisingly, the experts brought in to provide details about the product had a harder time than others who were not as educated in how gaming systems worked. The researchers called this phenomenon false recall, and concluded that those who considered themselves experts would not question the legitimacy of their memories as much when it came to the subject they were experts in. Bottom line, it may be better to ask a novice rather than an expert when it comes to finding information about a product out.

Efficiency in global scale

Larry Page and Sergey Brin, founders of Google, have definitely been some of the most influential persons in the IT industry. In addition, Bill Gates, a co-founder of Microsoft and Steve Jobs, also a co-founder of Apple can be considered the icons of these two decades. Their companies are also one of the biggest ones in the industry therefore there exist many branches in all over the world. Speaking of branches, since most of current big IT companies have their foreign branches, many are now doing worldwide projects. For instance, a software company which its main office is located in San Francisco work with their Tokyo office staff, and proceeds one project. However, recent development in Information Technology enabled far more flexible and efficient forms of work. That is, global work-sharing. As it is explained above, it is no longer rare thing to work with offices in other country. It can easily be imagined that there is time difference between countries. Global work-sharing is very unique in that it uses this time difference to improve efficiency. As for example, a Japanese IT company called NTT Date operates their work with two different countries, Germany and India. Especially between Japanese and German offices, they conducted 24 hours operation. One German team worked from 15 to 25 and two Japanese teams worked from 8 to 24. With these three teams they did not really have to stop their work. Accordingly it became possible to deliver their products to the customer more quickly. This type of work can now be seen in a lot of companies and is getting the eye.

IT Human Resources and Leadership

Where would we be without the technological pioneers that we all know and admire today? I am talking about Bill Gates, Steve Jobs, Richard Branson, Sergey Brin, Larry Page, Richard Branson, Len Bosack, Sandy Lerner, and even Mark Zuckerberg. These individuals are just a few of the many founders of America’s most respected and innovative IT corporations. These companies generate billions in revenue annually, and they each employ upwards of eighty thousand employees nationwide.

What’s great about working for companies like Google and Cisco, is that they treat their employees well. Perhaps the most recognized and respected company, in regards to high employee satisfaction, would have to be Google. Last year Google hired, “more than 4,500 Googlers, primarily in engineering and sales.” It’s already noted that Google takes care of their employees by showering them with benefits such as a matching 401(k) plan, free food, laundry services, and a climbing wall. According to last year’s report, Google’s revenue grew by 20%, which allowed for Google to give their employees a 10% pay increase. Google’s goal as a company is to make sure that their employees are well taken care of so that they can perform at optimum level for the company.

IT companies like Microsoft, Apple, Cisco, and Google are huge advocates for globalizing their companies, and making sure that every individual has the chance to become an employee for that company. IT, in general, is a market where globalization is encouraged. Technology brings nations together, and it makes communication a more efficient process.

http://money.cnn.com/magazines/fortune/bestcompanies/2010/snapshots/4.html

http://googleblog.blogspot.com/2011/01/help-wanted-google-hiring-in-2011.html

Infoslate... Waiting Room Efficiency

For one to think that innovation in Doctor’s offices is impossible is about to change. Kyle Piechucki, CEO and President of InfoSlate, was tired of waiting in doctors offices, and tired of the inefficiency. This boredom of waiting in doctor’s offices led Piechucki to develop a computer for those who are trapped in the waiting room. This computer, or tablet, takes all efforts to turn what is a sought out to be waiting for over 15-20 minutes, in to constructive time for both the patient, and also the doctors. This tablet relies on wireless Internet connections to deliver basic information about medical conditions and treatments as well as Internet access.

            Thanks to technology, advertising is becoming increasingly targeted for this tablet, to individual patients. The point of this tablet is to make doctor visitations less strenuous, and make them just a little more enjoyable. "People are frustrated with waiting. They're bored. They don't want to pick up a stale magazine,"said Piechucki.

            Not only is this effective for passing time in the “waiting room,” but it also caters to the new generation of technology bugs of today’s era. Smaller and cheaper computers are making it easier for companies to reach patients

Rise of the Robots Watson and what it means for humanity's future

I don't know about you guys but when I think of Information technology companies, IBM is one of the last companies to come into my mind. When one thinks about info tech companies thoughts of Apple, Microsoft, or one of the many dotcom companies that have changed the way we interact comes to mind. IBM is thought to be the quiet one that tries to draw as little attention from the mainstream market as possible. However, this is a rare occasion where it is actually showing some of what it has been doing these past years. Watson is revolutionary in it's implications. The processing of human language by a computer and the ability for that computer to respond could be the next leap in information technology!

Now it isn't perfect technology yet. Even while winning Jeopardy against it's human opponents, Watson sometimes managed to get some questions wrong or just was unable to answer them before humans could. However, this is just the horizon in potential applications that supercomputers like Watson could be used to help humanity. Imagine having a supercomputer available to doctors to help diagnose patients that doesn't need years of medical training to make available to the public. Through programming a computer like Watson, the programmers gain a deeper understanding of how humans think.

If IBM develops practical uses for this technology, it could become the next revolution in information technology. Much like the internet before it, Watson could accelerate the spread of human knowledge. Therefore I, like Ken Jennings, welcome our new computer overlords and the magnificent possibilities of the future they represent.

Influence of the emerging companies

It is remarkable that there are so many new emerging companies in this industry. Even within this decade, companies like Facebook, Skype and Twitter appeared and have acquired huge popularity among people all over the world. One of the big advantages for companies in this industry is that once they are accepted in a country, soon they become popular in other countries as well, and become worldwide phenomenal. Another advantage is that once a company becomes big, it is very hard for a similar company to catch up. For instance, when Google became big there were no suitable rivals in their way. Another example is Skype. Skype as it is also their name of software is very unique in that it allows free call to other Skype users. These unique companies have certainly influenced the world not just by economically and socially but also politically. In Tunisia, Facebook was used to organize antigovernment groups and to communicate with other members. In addition to that in Egypt, Twitter had been used as a tool to organize anti-governmental activity till the government sabotaged the use of twitter. What it shows is that this industry is full of opportunity especially in the field of communication. IT made it possible to communicate with people with a long distance. Now, Facebook has become one of the biggest companies in the world and worth more than 500 million dollar (Nikkei shinbun). There are still more companies to emerge or waiting for the time to be discovered.

http://www.nikkei.com/tech/business/article/g=96958A9C93819499E0E6E2E0E28DE0E6E2E3E0E2E3E3E2E2E2E2E2E2;p=9694E3EAE3E0E0E2E2EBE0E7EBEB

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Borders' Survival Plan.

Due to the thriving and expanding market of e-books, or electronic books, Borders Group Inc has been forced to file for Chapter 11 bankruptcy. The corporation has also been forced to eliminate over 30% of its remaining stores. While corporations such as Apple and Amazon continue to distribute E-books, and keep up with the upward trending demand of E-Books, books stores like Borders will continue to suffer.

Borders Group Inc has taken a major step towards innovating itself into an E-Books distributer. By filing for Chapter 11 bankruptcy,“[it] will allow Borders, which employs 17,500 people, to access new capital and reorganize its operations. The Ann Arbor, Mich., company has lined up a $505 million loan from GE Capital to fund its operations while in bankruptcy.” The ultimate goal for Borders as a corporation, is to stay afloat among fierce competition, like Amazon and Apple. The only way to do that is by providing more E-Books and E-book services. As of now, the Borders Group Inc. business plan, “is to stay viable by enhancing its customer rewards program, strengthening its e-book business and expanding more into non-book products”.

Once Borders evolves itself into a major competitor among E-Book distributors, its revenue will grow, investors will be less likely to shy away from investing in the company, and the corporation will be able to pay off its debts that it has accumulated within the past couple of years.

http://online.wsj.com/article/SB10001424052748703373404576147922340434998.html?KEYWORDS=borders

Race to the cash

Large corporate IT service providers like AT&T, Verizon, T-Mobile, and Sprint pride themselves on providing fast, efficient, and vast nationwide coverage. Verizon has taken the reins of the IT world, by becoming a 4G service provider. The 4G service is highly sought after by consumers, because it provides faster internet speed, which allows for faster video and audio downloads. Individuals will be able to download massive amounts of data at a faster rate, but the service is much more costly than 3G.

Verizon’s version of the new 4G service is called, Long Term Evolution or LTE. The company vows that it's new 4G service is ten times as fast as it's old 3G service. Verizon claims that it's 4G LTE modem provides faster service, “ [ranging from] five to twelve megabits per second for downloads, and two to five megabits for uploads”.

Verizon’s service comes with a hefty price though, $50 a month for 5 gigabytes of data use or $80 a month for 10 gigabytes. Users will also be charged $10 for every gigabyte they go over. Verizon customers will have to purchase future LTE, 4G devices if they want the faster 4G service. They cannot upgrade their 3G smart phone or modem if they want to use LTE. If Verizon users want faster service, then they’re going to have to shell out more money.

http://online.wsj.com/article/SB10001424052748704405704576063810512813874.html?mod=WSJ_PersonalTechnology_LEFTTop

Facebook- A genius way to make money- David Miller

Facebook, a company that has grown to be one of the biggest companies today, not only in the IT department, but all over the world, hit $900 million in revenue, during one of the countries worst economic recessions. A major question that has sparked many Facebook users is how they make money, and what drives revenue growth in this company. Believe it or not, Facebook makes money through the advertisement world. The advertisements that exist on the sidebars of each Facebook page have a list of advertisements. These advertisements are referred to as “Facebook ads.” Many companies pay Facebook a large fee, to put there companies advertisement slogans on their page, since Facebook has grown to have millions of users per day look at this wonderful opportunity for other companies through advertisement. Facebook is a free service, since the company generates majority of their money through these advertisements.

Why is Facebook advertisement different from good advertisement? The unique thing about Facebook is that it gives the advertiser a way to target people that are interested in what have to offer. The way the advertisements work for Facebook are one of a kind. The Advertisements are placed on your Facebook page based off the interests that you list in your profiles. A problem with this, is that many Facebook users are arguing that this goes against their rights, since Facebook is accessing their personal information.

Now a major problem with Facebook, since it is a free service company, is that there are many rumors swirling around that the company is going to start charging people to use Facebook. The good news, is that this is just a rumor, however, if this were to happen, this could potentially be the downfall of Facebook.  Let’s hope that this does not happen, as it would be a tragic, and unnecessary action for Facebook. They are doing great just the way they are right now.

http://www.associatedcontent.com/article/1906792/how_does_facebook_make_money_pg2.html?cat=3