How Have Companies Shifted as IT Demand Has Grown?

Technology touches nearly every facet of our lives. They make smart toothbrushes if you want it to touch every facet of yours. As a result of being such a tech-driven society, there were opportunities for businesses to set themselves apart by appealing to the incendiary demand for more. Today, we just wanted to point out that, while it has happened throughout the information age, today’s top tech companies are some of the most powerful ever. 

A Little History

Ever since the microprocessor was invented, there have been dominant companies at the top of the information technology market. The first company synonymous with computing was IBM. IBM was at the forefront of using microprocessors to create and use computers. In the 1970s and ‘80s, IBM was the undisputed leader in business computing and by 1985 it became the first technology company to top the S&P 500. At its peak, it was a behemoth. Other technology companies that prospered in this era were United Technologies and Xerox, while Microsoft and Apple, two of the leading companies today.

The Dot Com Bubble

The Dot Com Bubble, where new Internet companies were popping up and immediately given exorbitant valuations only to have the market collapse and leave many companies (and investors) insolvent. The Internet was in its infancy and excitement was high, but after the dot com bubble burst, it left an environment that slightly resembles today. In 2000, five of the top 10 companies on the S&P 500 were technology companies, with Microsoft, Cisco, and Intel leading the way.

Mobile Revolution

Smartphones were developed throughout the 2000s. This forever changed a number of things about the way people interact with technology. Firstly, they had greater access to Internet resources from anywhere they had their phone. Secondly, they were given bold new tools that enhanced their ability to interact with the world around them while laying on their couch. Companies were able to ride this wave to the greatest riches of the technology era. Some of the companies that came out of this era are some of the biggest currently going. They include Facebook, Amazon, and Google, along with computing mainstays Microsoft and Apple.

Demand and Data

Today, businesses thrive on data; and, as a result, hold more power than any businesses in world history. Not only are they the biggest, most successful companies in the world, they have set the standard for data collection and use as they explore adding to their already impressive (some would say ridiculous) valuation.

It’s not all great and good. These companies are all about eliminating competitors. They are led by the richest men in the world and they've also made it clear they will acquire companies that impede their influence in any way, obtaining new products they find beneficial to their goals. This has led them to be more influential in political and social realms and has people really discussing whether or not their anti-competitive behavior has ushered in a new gilded age. 

Whether or not you think the growing influence of technology leaders is a good thing, you need to understand that only you can sufficiently protect yourself online. For some great information about maintaining cybersecurity for yourself and your organization, return to our blog soon.