Twenty years ago, the idea that most of us would be walking around with mini-computers at our fingertips would have been unthinkable. But with our mobile phones becoming more and more sophisticated, our expectations of what all kinds of technology can do for our daily lives are constantly rising with every new innovation.
The big five tech companies in the world – Amazon, Apple, Microsoft, Meta and Alphabet – are some of the most valuable companies across the globe. They either sell you a physical or digital product in exchange for money or sell the attention of their audience. For example, advertising on Google products provides around 81% of its revenue.
There are also smaller companies making profits, and start-ups doing good business, all riding on the wave of business and consumer demand and searching for more and more creative ideas and models to develop and sell.
Early Successes Of Technology Companies
Tech is not just about social media and mobile phones. It’s about computers, printers, television, satellites and all sorts of industries that use IT. Before its introduction, it was virtually impossible for companies to do business instantly, but as advancements came, people realized the importance of technology and it has become a vital component, alongside IT, for every organization in the world, whatever its size.
The introduction of computers had a huge impact on the speed at which everything was done. Computers offered a speedy and efficient way of making complicated calculations, so performing transactions became much easier. They enabled the streamlining of processes, the opportunity to store data and information that companies were collecting, provided simple file storage and organization, and eliminated the need for dedicated staff to do certain tasks.
The advent of information technology and related services such as the internet and online solutions offered huge opportunities for growth within business and became an absolute necessity. The way things were done was reshaped and has continue to evolve; a lot of business is now done online and can be performed on mobile phones from anywhere in the world.
Facebook, or as it’s now known, Meta, is a good example of the rise and growth of a new tech company. Starting at Harvard University as a social experiment in 2004, Facebook expanded to reach over one million monthly active users by the end of that year, and by 2005, it was already popular in 800 college networks. By 2012, the company reached over one billion monthly users and it has been able to tap into the value of its users with a business model based on advertising, which provided more than 97% of its revenues in 2021.
In 2021, Meta, along with Apple, Amazon, Google, and Microsoft, generated $1.4tn in revenue between them. More than half of Apple’s revenue is from sales of iPhones, while for Microsoft, Azure cloud services provide nearly a third of their total. Amazon’s online shopping accounts for up to 50% of its revenue, and 81% of Google’s revenue comes from advertising on its own products. For all these organizations, the income they generate has risen hugely in recent years.
In the second quarter of 2022, Apple reported $97.3bn in revenue, Microsoft posted $266.9bn in the same period, and for 2021, Amazon posted $469bn.
The big tech companies grew even more during the pandemic for many reasons. These included the lockdown restrictions which forced people to shop online, increasing e-commerce sales, and growing demand for laptops and cloud-based services as many people began to work remotely rather than in offices. Now that the pandemic is largely over, many of the habits we made, such as hybrid working and changed shopping habits have remained – global e-commerce sales are predicted to grow to $7tn by 2025.
Software Companies and Profits
Currently, the top software companies are brands such as Adobe, Salesforce, and Google, and they make billions of dollars in revenue. Even smaller and more recently established businesses can make tens of thousands of dollars within the first few months. What they all have in common is that they have a diverse business model to generate income.
The companies make most of their profits by selling software apps, usually via subscription or a one-off payment. Advertising is a big source of revenue and can also include platform-supported ads, affiliate marketing, and referral links to related products. For many users, the reason they see a pop-up ad in their app is that the product being advertised is similar to the one they are using. They may also have previously visited the page or app that’s being advertised. Based on their social media activity, they may be identified as having a potential interest in the advertised product, or the algorithm may show that their other apps are similar to the advertised one, or their age, gender, location, and other factors fit the targeting options of the product.
How Tech Impacts Our Leisure Activities
With constant updates, upgrades, and new products coming onto the market, where are innovators finding their inspiration?
Mobile application development is one of these areas. It’s said that 9% more people spend time browsing apps compared to websites and spend 2.3 hours on average daily navigating their way through them. This means there is a high demand for app designers. The US Bureau of Labor Statistics has predicted that the demand for developers is expected to increase by 24% by 2026. The success of Uber and Airbnb are both examples of how mobile apps can revolutionize a business sector.
Artificial intelligence is a merging of a variety of different technologies working together to enable machines to sense, comprehend, act and learn with human-like intelligence. Examples include machine learning and natural language processing. When AI is used in combination with data, analytics, and automation, it can help businesses achieve their goals, whether that is optimizing supply chains or improving customer service. AI can include weather apps, digital assistants, and data processing.
Technology has had a huge influence on the leisure industry, including enabling us to play video games – we now have portable game consoles so users can enjoy their hobby on the go without the need for a laptop. Game developers now also provide them via smartphones too. We can also read books without having to take a physical paperback on holiday, create art with drawing tablets and go to immersive communal events virtually.
With the improvement in internet connectivity has also come the rise of television and film streaming services, so consumers have access to hundreds and hundreds of titles whenever they want, at any time of the day or night, on a television, computer, or even a phone.
Jobs in Tech
According to research, computer and information sciences is the major with the highest job offer rates, especially for those with advanced degrees. A recent CareerBuilder study shows that the number of science and technology jobs is expected to grow at twice the rate of other occupations.
Some of the fastest-growing job titles in Canada include:
Site Reliability Engineers create and implement automated software tools designed to maximize a system’s reliability and efficiency.
Machine Learning Engineers develop and implement self-running artificial intelligence algorithms and systems for products and applications.
Data Science Specialists use technology and social science skills to find trends and manage data.
Other jobs within the industry include work as a software developer, information security analyst, computer systems analyst, web developer, sales engineer, information technology manager, computer research scientist, network systems administrator, or computer support specialist.
Getting the Right Qualifications
One of the things that technology has impacted is education, with new online learning opportunities being designed regularly and evolving and adapting to utilize the latest developments.
You may well have embarked on a career within the tech world, and have already achieved your graduate degree, but have decided that a master’s degree would increase your potential career progression.
Studying for computer science degrees online allows an element of flexibility for students, enabling them to work around family or work commitments and still fulfill their potential.
With technology being a part of so many people’s lives in such a variety of ways, embarking on a qualification or career that will help you gain access to this industry could be a sensible long-term goal. The opportunities to work within a huge variety of businesses, of all sizes in areas ranging from data analysis to health, leisure or e-commerce will be open to graduates, and this list is ever-expanding.
The Future
In an era when we can book a restaurant, a parking space, play a virtual reality game, and forecast the weather, all using apps and websites, the future use and development of innovations in the field of technology are inevitably set to continue. For example, cloud computing has enabled businesses to be more efficient, and even allowed companies to reduce their carbon footprint by reducing their physical premises. Smart buildings can allow organizations to manage their energy usage by analyzing what is happening on a day-to-day basis, and we can talk to our doctors online.
With an increase in both home and hybrid working, the requirement for more technical support and innovation is increasing daily, inevitably leading to the need for increased recruitment of staff within the field too.
There appears to be no end to what can be done once someone has identified the need for it then set to work to make it happen, so taking a career path within any kind of tech industry or company will inevitably secure a positive employment future.
There are many ways tech companies can find new customers. For instance, Apple has consumers lining up to buy the new products they release every two years or so. The companies are innovators which create new products which appear to make everyone’s lives easier, and in an increasingly digital society, entrepreneurs and creators are constantly watching new trends such as augmented reality and artificial intelligence so they can keep on top of what’s going on and have their fingers on the pulse of what’s needed next.
The world of technology affects almost every aspect of our lives, whether it be food and healthcare, socializing, productivity or transport. The internet alone has enabled people to connect, communicate and share in ways unimaginable even 50 years ago. Would the average person even have considered we would be able to not only talk to someone on the phone, but actually see them as we did so? And attend virtual work meetings from our own homes? We can shop online, but we can also just tap our credit or debit card on a machine if we are in a physical shop without even having to input a pin number.
We can also monitor our own health by accessing a fitness device, such as an Apple Watch, a Fitbit, or even our mobile phone. We can measure our steps, our weight, our sleeping patterns and set targets and goals. If we want to find out information about virtually anything, all we have to do is type a few words into a search engine and choose a link on which to click to get access to what we want to read.
Inevitably, with the rise of what consumers expect and businesses demand, the fact that tech companies can make so much money, whether from physical computers or phones or the infrastructure that is the basis for all that drives the information we want in so many spheres, the companies that make that happen will continue to generate very healthy profits.
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