The high tech industry is not just a key participant in the digital economy, but is its fundamental backbone. Technology is ubiquitous, powering every organization, network, transaction, piece of equipment, and consumer device. Software is embedded in nearly all tech products to deliver capabilities and to monetize them, trumping the role that hardware has played up until now. As industries embrace digital transformation, they break down conventional business models, blurring industry boundaries, and accelerate the pace of innovation. The high tech industry is poised to play a unique role, not just as an enabler of digital transformation, but also as a potential disrupter of all industries. 70% of all high tech revenue will be directly related to other industries adopting the digital economy by 2020. While the pressure for high tech companies to innovate at faster speeds increases, the economics of the industry are fundamentally shifting, driven by these key trends:
• The Internet of Things is the next growth engine. It is estimated that three out of four semiconductor devices manufactured in 2020 will be consumed in end-products supporting IoT applications2 • Hardware is now a commodity. For instance, worldwide server growth for original equipment manufacturers (OEMs) has recently been just 2.3% vs. 40.5% for original design manufacturers (ODMs) and will continue to decline.3 • Software is becoming the true differentiator. Competitive advantages in the tech world will be decided by software and the ecosystems and platforms around it These major shifts in the industry give rise to new challenges and opportunities for high tech companies, driving them to reimage their business models and processes, products, and how they engage with their talent. This white paper offers a deeper perspective on digital transformation in our industry. Focusing on how companies in the high tech industry can stay competitive and in turn pioneer new growth and innovation across all industries in this new digital world.
DatacenterDynamics is a brand of DCD Group, a global B2B media and publishing company that develops products to help senior professionals in the world's most ICT dependent organizations make risk-based infrastructure and capacity decisions.
Our portfolio of live events, online and print publishing, business intelligence and professional development brands are centred on the complexities of technology convergence. Operating in 42 different countries, we have developed a unique global knowledge and networking platform, which is trusted by over 30,000 ICT, engineering and technology professionals.
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