The technology sector is currently going through a once-in-a-generation overhaul where we are witnessing multiple incredibly exciting innovations converging to form the networked world of tomorrow. In this world, everything will be measurable and most tasks can be automated whether they are taking place in your home or on the factory floor. This presence of equally enticing and potentially huge investment opportunity for everyone interested in technology. Despite the considerable investments in research and development, early investors can expect a steady stream of growth, thanks to a veritable cornucopia of innovative products, services, and applications across industries. For more information on finding the right technology investments, consider reaching out to IT Support Houston.
Why should you invest in the technology industry?
Save on time
Technology investments have the potential to multiply your investments in the least amount of time. Thanks to automation and other innovative technologies, time-intensive tasks can now be completed in seconds or minutes. With the increase in speed, revenue and cash flow will also be positively impacted. Technologies involved in speed optimization include fast-learning algorithms, artificial intelligence, data mining, data modelling and more.
How can competition be better? Technology is such a vast field that despite the enormous amount of investors it attracts, there is little to no market saturation and chances are low for specific organizations to achieve a monopoly. Since technology applications span every conceivable field of human industry, stakeholders continue to grow even as the number of innovations continue to rise.
With rates of digital literacy increasing the world over, technology is attracting bright and fresh minds globally. This results in a wider and more open industry with lots of opportunities. This rapid expansion is one of the reasons why investors are putting their trust in the technology sector.
What Investors Should Watch
Tech stocks often carry higher than average premiums than other market categories. While the high valuation seems commensurate with the above-average growth rates of technology companies, the problem is that even companies that go bust carry these high valuations right up to the point when they go bust. The sector is also rife with public companies that are yet to produce profits or cash flow. In the gaping absence of a measurable track record, investors have to guesswork in creating discounted cash flow valuation models. In such cases, as always, research and diligence can be a life-saver, especially if you have a deep knowledge of the company’s product and services as compared to its peers in the industry. Valuations in the tech sector can be an inexhaustible topic for debate. There are pros and cons for following the growth and investing in category leaders, or emerging disruptors and keep moving across companies with no regard to valuation. However, lack of understanding and judgment can also leave investors with overinflated stocks of no real value.
New technologies you should invest in
Digital technologies are considered to be a key enabler for renewable energy in every sector, whether it’s solar, wind or distributed energy. With intensifying climate change pressures, green energy is likely to hold prominence in the coming years or decades. Green IT offerings span a diverse range of applications across energy sources, electric vehicles, environmentally friendly services and more and offer enhanced scope for productivity and efficiency while continuously reducing their environmental impact. Furthermore, going green can also be a win-win situation for companies as they save on costs and also protect themselves from future energy shocks. IT Consulting Houston boasts of niche expertise in planning and deploying green IT frameworks.
Enterprise use cases for Robotics technology are increasing every day with manufacturing, logistics and healthcare companies leading the pack in the adoption of robotics. Recent estimates from IDC show us that global robotic spending for hardware, services and software could reach $215 billion by the end of 2021. Robotics technology has evolved from its traditional applications in rigid automation to move increasingly towards robotic process automation (RPA). The latter involves software robots designed to be deployed primarily in semi-structured environments where they can carry out a larger variety of office tasks and become integrated as a part of an overall system.
AR and VR
Augmented Reality (AR) and Virtual Reality (VR) technologies have been making strides for a long time but enterprise applications of the same have just started to pick up pace. While gaming has always been the most dominant application area of AR and VR, commercially available VR headsets are starting to gain some traction as well. Although the production of the headsets has largely fallen into two broad categories of expensive and high-quality or cheap and low-quality. AR technology, that is also known as mixed reality, is yet to gain equally widespread adoption. The primary application of VR and AR technology in the workplace, however, tends to revolve around training and simulation. According to estimates by Tractica, the worldwide enterprise VR hardware and software revenue will increase from $1 billion in 2018 to $12.6 billion annually by 2025. The use of a VR headset or similar piece of hardware, can help enormously to reduce risk exposure and cost in high-risk industries such as aviation, oil and gas. Training and simulation software has also found increasing favor with niche training applications in both the military and in healthcare. For instance, it is now entirely possible for practicing surgeons to train and hone their skills in a virtual world rather than working with patients directly, radically reducing the scope of injury or costly mistakes, especially in the early days of training. For more information on this, please reach out to Managed IT Services Houston.
Scott Young is the president of PennComp LLC, a Cloud Computing Houston company. Being a CPA, Six Sigma Master Blackbelt, Change Management Certified and Myers Briggs Qualified, Scott’s expertise is reflected in PennComp as a leading IT company for computer services and network integration. PennComp utilizes Six Sigma methodologies and practices in their service delivery and offers state-of-the-art monitoring and management tools to their clients.