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Why businesses should care about changing ITlandscape
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Why businesses should care about changing IT landscape
By Fanele Chester on September 02,2011
The month of August was fraught withactivity in the information and technologysector.From Google’s acquisition of Motorolaearlier in the month to Steve Job’s resignation as CEO of Applea couple of days ago, and Hewett-Packard’s decision to stopmaking personal computers (PCs), tofocuson softwaredevelopment in the early 90s, the winds of change are signallinga transformation of the industry.
The Google Experience
Google’s acquisition of Motorola for $12.5 billion was not to add a mobile phone business to their impressive repertoire of acquisitions, but to control the 17 500-strong patents that came withMotorola. Google realised the need to enter the mobile phoneindustry as a means of controllinghow customers experience their main product: internet search / web browsing. They achieved thisthrough the acquisition of Android, an operating system (OS) for mobile phones, in 2005 for $50million. Android was developed to give customers the best mobile Google experience; indeed usersof search services such as Google Maps and Gmail reported a better experience on Android- powered phones compared to other competing OS. However, problems surfaced with Android assome of the specifications that were used to enhance the Google mobile experience infringed on patented creations. Hence, some of the functionalities that came with the Android OS had to bealtered.
The HP Experience
Last week, Hewett-Packard’s exit from the PC and tablet computer industry came as a surprise tomany, but analysts who have been keeping a close eye on the numbers report that this move had been coming for a decade now. Many will recall IBM’s similar restructuring in the early 1990s.After running a successful global monopoly of desktops and mainframes, revenues dropped from$13 billion in 1990 to $7 billion in 1993 and losses of $16 billion piled up. 35 000 employees werereleased to cut costs. A statement released by HP saidthe companywasfocusingon higher-margin,
strategic priorities of cloud, solutions and software with an emphasis on enterprise,commercialandgovernment markets.
Apple’s Destructive Innovation
There is an unanimous agreement that the restructuring of the IT industry is attributed to one main player: Apple. The technology giant recently toppled Exxon Mobil Corp. to become the UnitedState’s mostvaluablecompany. In other words, the iPad became more valuable than oil.Competitors in the IT industry took the tip: it was time to restrategise their core operations, or risk being left out. For companies like Google, it suddenly became imperative to control not only thesoftware platforms that run their product, but to be fully involved and integrated in the process.
The Next Experience: Cloud Computing
How does all this affect service delivery by businesses in Swaziland? The reach of mobile phonesglobally, the accent of smart phones and tablet computers, coupled with advances in internetconnectivity, means more people want information, quickly, and from anywhere they happen to be
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