The tech giants’ race to a trillion dollars
On his trip to India last week, Google’s chief executive officer Sundar Pichai said, “The Internet and digital technology will be an engine of growth for the Indian economy.” That is a boilerplate sentiment these days. But what about the obverse? As hardware upgrade cycles lengthen and computing paradigms (आदर्श/उदाहरण) undergo rapid transformation, how are the reigning (आधिपत्य होना/प्रबल होना) tech giants pushing to keep their growth momentum going?
In April 2015, Apple hit its highest ever market capitalization of $774 billion. It would have taken a brave man to bet against the firm Steve Jobs revived being the first to the fabled (प्रसिद्ध/चिन्हित) trillion-dollar market cap mark. But the tech industry is a fickle (अस्थिर) beast. Apple’s market cap now is $619 billion. That still makes it the leader of the pack by a distance, but it no longer appears as invincible as it once did.
Ann Winblad, one of Silicon Valley’s reigning power brokers—a venture capitalist who has spent over three decades observing the industry from up close—has dismissed its chances of hitting a trillion dollars. She’d rather hang her hat on Google’s parent company, Alphabet, with a current market cap of $551 billion. Other analysts point to Microsoft, bouncing back from its long twilight (ह्रास/पतन) , or Amazon, currently at $484 billion and $368 billion, respectively.
The reason for Apple’s slowing down a touch isn’t particularly surprising in hindsight (दूरदर्शिता) . Its meteoric climb was predicated (स्थापित/प्रतिपादित) on its being a personal computing company—one that built its brand around creating new product categories, delivering best-in-class products and a polished user experience. Here’s the thing: personal computing devices, from computers to smartphones, are good enough now to obviate the need for frequent upgrades. And just as Apple lapped Microsoft by creating the smartphone and tablet categories that contributed to the traditional personal computer industry dwindling (क्षीण होना/महत्व खोना) , future growth in the tech industry will likely come from two areas where it lacks a qualitative edge.
The first of these is cloud computing. The ability to rent on-demand processing power, storage and software online is, essentially, the equivalent of division of labour and labour specialization in conventional industries. It sidesteps the need for a great deal of capital expenditure. And it enables greater efficiency in resource allocation, allowing companies to upgrade capacity as and when needed, then scale down again. The potential is obvious. Amazon has an early mover advantage here notwithstanding its image as primarily an e-commerce company. It started Amazon Web Services a decade and more ago, originally intended for its own use but eventually made available to others.
It has captured about a third of the market now, leaving Google and Microsoft far behind. The latter are moving to correct this; there is a reason Satya Nadella, formerly head of Microsoft’s cloud business, was made the Redmond giant’s chief executive. Microsoft, after all, reigned supreme in the enterprise space. This is a natural evolution—renting out computing power and software to companies instead of selling software to them.
The second area is the linked spheres of artificial intelligence (AI) and the Internet of Things (IoT). The battle to control homes as entire ecosystems—smart homes—is the most high-profile aspect of this. As daily devices from microwaves to refrigerators to cars become networked, there are two prerequisites (पहले से आवश्यक/पूर्वाकांक्षित) for unlocking their full potential: intuitive ways to control them via natural language recognition and algorithms to analyse the constant stream of data from them and enable predictive behaviour and increased efficiency. Apple may have started the AI wars with Siri on its smartphones and tablets, but Amazon, again, stole a march with the Alexa AI hosted on its Echo speaker and hub. Google has followed suit with Google Home, and Microsoft has recently announced Project Evo, an initiative to build similar hubs. And it’s worth keeping in mind that the scope for enterprise applications of AI and IoT is considerably larger than that for the consumer market; the learnings from the latter will be applied to the former.
There are no certainties in the tech industry, of course. There was a time when companies like IBM and Oracle led the rest. And while the control the reigning tech giants have established protects them from competitors, it also opens them up to unexpected challenges, such as from European regulators wary (सावधान/सजग) of monopolistic behaviour. But for now, it seems the primary battles will play out between them—and the contours of those battles will impact both the functioning of enterprises and how individuals interact with technology that not too long ago used to be static and desk-bound.
Stay updated with The Hindu Editorial Vocab24 app, your definitive source for breaking news and comprehensive coverage from India and around the globe. Whether it's political developments, business updates, sports highlights, the latest technology trends, or current events, The Hindu brings live, accurate, and reliable news directly to your device.
Don’t fall for sensationalized or fake news shared online. Read and share accurate updates with friends and family through The Hindu Editorial Vocab24 app. Download it today!
News Coverage in The Hindu Editorial Vocab24 App
Breaking News: Receive instant notifications on breaking news stories as they unfold. Stay informed about major events and developments in India and around the world with live blogs, news in shorts videos, and concise articles.
Politics: Get the latest updates on Indian politics, including elections, policy changes, government decisions, and political events that shape the nation.
Business and Economy: Stay ahead in the economic landscape with detailed business news and market analysis. Learn about stock market trends, financial reports, corporate news, and economic developments to make informed investment decisions.
Current Events: Follow stories on social issues, policy changes, global events, and daily current affairs, tailored for UPSC and other competitive exam preparations.
Technology: Keep up with the latest gadgets, innovations, and tech trends. Read expert reviews and analyses in short, concise updates on cutting-edge technology from India and beyond.
Sports: Never miss a moment of your favorite sports. Get live scores, match reports, and expert analysis on cricket, football, tennis, and more.
International News: Stay informed about global events and geopolitical developments, including the Russia-Ukraine war, Israel-Palestine conflict, and other key international stories.
Local News: Stay connected to your community with the latest updates on city events, issues, and local news. Coverage includes hyperlocal updates from cities like Bangalore, Chennai, Delhi, Hyderabad, Mumbai, Kolkata, and more.
Trending Topics: Discover what's trending today with the most talked-about stories and hot topics across India and the world.
Experience journalism that values integrity, accuracy, and reliability. Download The Hindu Editorial Vocab24 app today and stay connected with the world.
Subscribe to our newsletter!
