Friday, July 22, 2011

Move Over Bill And Andy, Steve Is Now Leading

 This week marked a tipping point in the world domination of technology leadership. For years Microsoft's Windows and Intel's chips, known as "WinTel", represented the "Gorillas" in the technology space. These 2 companies had the key enabling technology for the PC industry. Their market caps combined MSFT (220B) and INTC (120B) equal $340B.

Think about how many "computers" have that Apple logo..iPods, iPads, MacBooks etc. Each one of those represents a new PC. Now consider all of those PCs have an Apple operating system inside too.

As the PC went mobile, a new leader emerged, Apple. When Apple announced their earnings this week their share price appreciated enough as their market capitalization exceeded $350B.

 Apple, sitting on $76B cash, is now worth more than Microsoft and Intel combined. A new leader has emerged.

What I see next:

As computing shifts from the device to the cloud, a new leader will emerge. There will be a new gorilla. The "power" of processing will take place on some server miles away from your device. Google's Chromebook and its 8 second bootup and limited software programs will be the new norm.

Content on your device will shift to being stored on the cloud. Gaining access to it will be CRITICAL, there's the area I would watch. Devices will rely on Net connections now more than ever. Access and security will play key roles going forward.

Microsoft, Intel and Cisco, once the "Kings of Tech" have fallen. We are witnessing the next generation of technology.

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