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.