Why Computers Don't Matter Anymore

Why Computers Don't Matter Anymore

Why Computers Don't Matter Anymore

By John Jantsch

AppleAn event occurred recently that was widely covered in financial and tech circles, but the significance of which may have been lost on most.

Apple’s market cap rose slightly above Microsoft’s, making it the largest tech company in the world. Now, market cap is based on current stock price and is a lousy measure of things to come and this is by no means a post about good and bad investments, but to me it marks a point in time that clearly points to the path we’re headed for the next decade or so.

Apple, on the verge of extinction in 1996, rose up with laptops, but then bet the farm on hand held devices and applications. Apple now makes the bulk of its revenue from iPods, iPhones and iTunes – in fact, it would be safe to suggest that Apple is not really a computer company. Apple built its store right next to the new freeway off ramp (the mobile freeway that is) and has benefited through this location dramatically.

As computers and even web browsers continue to lose significance by yielding ground to mobile devices and applications Apple is positioned to dominate for years to come. In the application world social networks like Facebook will continue to grow, cloud computing via applications will generate far more revenue than operating systems, software and hardware.

What all of this means is that Google must successfully nail a social strategy or even it’s mobile plays will cut into it search ad revenue. Microsoft may be in big trouble as it clings to shrinking government and enterprise installations too big to move elsewhere.

Small business can and should seize the opportunity to claim low cost operating efficiencies found in the cloud. Marketers must find effective ways to play in social networks. Resistance to mobile tactics such as location ads, text messaging, and mobile applications must erode as they become the preferred method of content and information consumption.


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