What's Happening in the IT World?

There are various current events regarding the information technology industry. Many of the events range from innovations within the market and expansion to lawsuits. This blog will cover three current events within IT companies.

First, International Business Machines Corp. (IMB) researchers have developed a drug, called nanoparticle, which in experiments showed promise as a weapon against dangers “superbugs” that have become resistant to antibiotics. This drug can target and destroy antibiotic-resistant bacteria, such as Methicillin-resistant Staphylococcus aureus, or MRSA, without affecting healthy cells. “MRSA, found in hospitals and public places such as gyms, kills about 19,000 people a year in the U.S. Some 53 million people world-wide are believed to be infected with the bug, according to a paper published in the Lancet, a medical journal, in 2006” (Winslow).

IBM is not just based on direct consumer technology; IBM has various divisions of throughout the company. IBM has used its technology to develop other products that will help people in different aspects of their lives. “IBM doesn't plan to get into the pharmaceuticals business, but it is counting on partnerships and the licensing of its technology to help it expand its revenue stream. The company generates about $1 billion a year in income from licensing its intellectual property” (Winslow).

Next, Google and Facebook have been going toe-to-toe with trying to win over consumers to become the most visited and used site. Recently, Google announced that it was producing a new product that would prevent Facebook and other social-networking companies from gaining an upper hand on web innovation and potential advertising dollars. The “social search” took the name “+1 or plus one.” The "+1" effort allows people to publicly recommend certain websites and share those preferences with their contacts on Gmail and other Google services so they are highlighted in search results for relevant queries that are typed into the Google search box, said Matt Cutts, a Google search engineer (qtd. in Efrati).

Finally, Microsoft has issued an antitrust lawsuit against Google with European authorities. The lawsuit “is rich with symbolism about how far the high-tech tides have shifted in a decade, and about how the battle for the lucrative Internet search market is being fought, stated Brad Smith, Microsoft’s head counsel. “In Europe, Google's market share of web searches is as high as 95% and in the U.S., Google handles about two-thirds of searches”, Smith stated (Forelle). Within this suit there are various allegations held against Google’s contracts, business actions, and site issues. There is much turmoil between these companies.

Winslow, Ron and Tibken, Shara. “IBM Researchers Develop Drug to Target MRSA.” The Wall Street Journal: Digital Network. 3 Apr. 2011. “Web.” 3 Apr. 2011.

Efrati, Amir. “Google to Add Features to Make More Social.” The Wall Street Journal: Digital Network. 31 Mar. 2011 “Web.” 3 Apr. 2011.

Forelle, Charles. “Microsoft Complains to EU in Google Probe.” The Wall Street Journal: Digital Network. 1 Apr. 2011 “Web.” 3 Apr. 2011

How has the recession (2008-2009) affected companies’ balance sheets?

In the IT industry especially the internet had been affected in a positive way by the recession, Because of the advantages that the internet includes. Companies and investors tend to use the internet after the recession to advertise their products and businesses and rise up their revenues. Those advantages include the tremendous number of users that use the internet each year also it reaches a wide range of people and it still less expensive comparing with the other advertising tools. Moreover companies included Information technology in many careers after determining the number of workers in each department.

Profit in the IT industyr

http://money.cnn.com/magazines/fortune/fortunefastestgrowing/2009/companies/profitgrowth/

            In the last decade revenue and profit growth in the IT industry has grown dramatically. Just last year, Apple had a 46% revenue growth from its previous year. Apple isn’t alone in rising revenue and profits. In the last ten years, IT revenue growth has grown dramatically. IT security has become necessary for businesses to attain private information, just as other software innovations have also been accepted widely. The growth in the industry has led to an increase in profits due to the necessity of the company’s service. Go To The Beach Co. an IT company based in Silicon Valley that specializes in information security, happens to be rated #1 in both quality and price, has experienced rising revenue growth since its publicity.

            Key IT players however have seen profit growth over a large scale. The rise in Apple’s profits have also led to rises in IBM’s IT manufacturing division because of the Intel chip. As of now, IT companies are experiencing growth because of innovation, and due to this, are increasingly growing in revenue and profit. 

What are pricing trends in the IT industry?

What are pricing trends in the industry?

The IT industry can be very expensive when it comes to pricing their product. Things such as computer programs like Microsoft Office, or Final Cut Express for Macs can cost up to 200 dollars and even more but many people buy it because it is essential for their computers. Microsoft Office is the primary program that you have to install on your computer device in order to be able to view, write and edit papers or documents and, since in today’s society everything is done by computer, Microsoft Office became a need in our everyday’s lives.

One of the biggest issues with PC is viruses. These viruses may permanently harm your computer and can be easily taken. Because of this, Microsoft and other companies came up with antivirus programs, which allow you to protect your computer against any type of virus. The price for these programs may vary from 30 to 50 dollars per year while other companies such as AVG offers a free ($0) version of their anti-virus software. In this case, the pricing for the IT industry are low.

Overall, the prices of the IT industry tend to be high. While most websites such as Google or twitter are free to join, their software like Microsoft Office or antivirus programs can be kind of expensive. I personally think that most of their profit does not come only from advertising but it also come from their computer programs or applications.

Data Security and how differentiating in the field of IT.

           

In my informational interview I spoke with software engineer and CEO of GTTB (Go to the Beach Co.) Uzi Yair who runs a data leakage prevention company that sells firewalls and other leakage prevention software to large corporations, banks, and industry firms.  Uzi spoke as an expert in the IT industry, having run several successful Silicon Valley start ups. He said, the best thing for a software company is to be the best and the cheapest, and that is what I am. GTTB Co. was awarded several awards by Network World, and Frost & Sullivan. Uzi’s entrepreneurial spirit is correct, in the world of IT, price and quality matter.  However, these are not the only factors in a company’s ability to differentiate themselves from the other software security, development, and other sub-industries of IT.

            Innovation in production is key, not to the public or consumer directly, but to how a corporation runs. For instance, a company, epically Software Company, who runs one system over and over will lose, there is no innovation in production of software. However, a company that invests in its production is able to hold customers and have great customer satisfaction. GTTB has won multiple innovation awards for different software developments. These developments have ultimately paid off; GTTB is selling software to major banks and corporations across the U.S.

http://www.gtbtechnologies.com/

Moving Towards Wireless Broadband

Since about the early 2000s consumers in the information technology (IT) industry have been moving towards wireless technology with higher-speed internet connection, and video game systems with computer-like hardware technology and capabilities (Evans). Because consumers are looking for such products, companies in the IT industry must keep up with this trend. Companies like International Business Machines Corp. (IBM) and Google are moving towards keeping up consumer demands.

IBM has introduced a new wireless broadband product to expand their horizons. IBM Mobility and Wireless Services has the ability to rapidly deploy reliable and secure mobility infrastructures, reduce network maintenance and communications costs, gain a high-speed communications system that is extensible to mobile workers, boost productivity of field sales, public service and customer support professionals, and improve overall organizational responsiveness to gain competitive advantage (“Mobility and Wireless Service”).

Google announced that it would enter the wireless world in late 2007. Google entered the wireless world with companies to ensure that their products, or applications, were easily accessible to the consumer. Google’s software is offered freely under “open source” licensing terms, meaning that handset manufacturers will be able to use it at no cost and be free to add new features to differentiate their products (Helft). Google’s phone software is called Android, today it is a competing smartphone product with Apple’s Iphone.

Works Cited

Evans, John. "Interview with John Evans." Telephone interview. 2 Mar. 2011.

Helft, Miguel, and John Markoff. "Google Enters Wireless World." The New York Times. 5 Nov. 2007. Web. 20 Mar. 2011.

"Mobility and Wireless Service." International Business Machines Corp. Web. 20 Mar. 2011. .

How do companies in this industry differentiate themselves from one another?

· How do companies in this industry differentiate themselves from one another?

Now a days, businesses should do some differentiations to success and to survive with the competition with the other companies.

Some business in regard of their stand out, try to be the fastest or the first to figure out costumer needs and wants, and promote them to the consumers. for instance : iPhone invented its 3G phone with a high number of accessories and promoted it to the market and satisfied what costumers will need in future.

Other example of differentiation is taking a service, “IT services, business consulting, legal consultation, etc. To the potential client, most of the major players look the same. All offer the main table stake services and do little to truly differentiate themselves from their competitors” ("How to differentiate," 2008).

http://hubpages.com/hub/How_to_differentiate_your_business