In the past ten years, IT/IQ has gone through some changes; including a worldwide pandemic and starting a new branch, IT/IQ Remote Teams, to help companies throughout the world navigate remote work.
The tech industry went through some big changes too.
A decade ago, large enterprise companies dominated the industry, and Google, Amazon, and Facebook were still new and growing companies. 2010 started the diversification of big tech that transformed the world – and raised questions about monopolies and private policies.
In 2010, only two of the top ten most valuable public companies were tech stocks.
- PetroChina (ticker: PTR):$350 billion.
- Microsoft Corp. (MSFT): $270 billion.
- Apple (AAPL): $189 billion.
In 2020, the top five most valuable public companies in the world are all tech companies.
- Apple: $1.18 trillion
- Microsoft Corp: $1.13 trillion
- Alphabet (GOOG, GOOGL): $886 billion
- Amazon.com (AMZN): $867 billion
- Facebook (FB): $558 billion
The rise of big tech companies is undeniable. So, how did the tech industry diversify and rise to power? Here are three reasons we’ll explore today:
1. The Cloud
Three of the five most valuable public companies have cloud computing services. Not only is the demand for cloud computing growing, but it also yields an extremely high profit.
After all, Microsoft could have never hit $1 trillion level success without its cloud division, Microsoft Azure.
And Amazon’s rise to power can be attributed to Amazon’s cloud computing business, Amazon Web Services (AWS), which is their most profitable segment. AWS powers the backend of most of the internet, including companies like Netflix, Lyft, and Airbnb. It provided the profit and power for Amazon to be bold, expand, and compete with Walmart and Target on price and delivery.
2. Streaming Services
Entertainment was revolutionized by tech companies, and it doesn’t look like they’ll stop anytime soon. Today, Netflix’s Stranger Things or Hulu’s The Bachelor is just a click away. But until recently, you didn’t have streaming-service options, it was just Netflix.
Towards the end of the decade, during November 2019, World War Stream began. Apple TV+ started a battle with Netflix, and eleven days later Disney+ joined the battle back by a battalion of Stormtroopers and Avengers. With the entry of all these new streaming services, there is anxiety among cable TV producers and providers that they must make the transition to streaming too.
The most successful tech companies of the decade have one thing in common: they provide convenience for their customers.
And who doesn’t love that?
Just like a best friend, these companies complete our sentences (on our emails and texts), recommend purchases, and remind us to exercise. Unfortunately, this friendship comes at a high price – our privacy.
Another way to think about the diversification of big tech is the ability these companies have to win us over and disclose personal information. These companies analyze and use our data in ways many people don’t understand.
An example of this secret data monetization is the Cambridge Analytica Scandal. The only thing we have going forward is Facebook’s word that this won’t happen again. It’s one of the reasons why China, Iran, and North Korea consider tech giants like Facebook and Google a national security threat.
In 2010, big tech companies became a part of our daily lives. In 2020, they’ll compete to be your favorite by providing more and more options.
Your Tech Teammate
As tech continues to diversify, IT/IQ continues to serve our clients, candidates, and the entire technology industry. With locations in Vancouver, Calgary, and Toronto we can help cover all your hiring needs – from in-person to remote needs. Visit us at it-iq.com to learn more.