We believe that technology is at the start of a remarkable cycle that will see computing woven
\nincreasingly into the fabric of everyday life in more intimate yet unobtrusive ways. The excitement around
\nApple Watch, with its ability to capture biometric information, is an early indication of this future.
\nInnovation has the potential to reshape the boundaries of the IT business as we know it, creating
\nsignificant opportunities for investors to acquire long-term value in the process. You only have to look at
\nhow far technology has come since the bursting of the dot.com bubble in 2000 to appreciate its capacity
\nfor innovation and change. Indeed, the ensuing transformation has been felt not only in the IT industry,
\nbut also across the sectors it services and across society as a whole.<\/p>\n
For the companies participating in this innovation the effects have been similarly profound and Behind the statistics is an equally compelling story of behavioural change, best exemplified by the Antiquated computing architectures are starting to be replaced by alternatives with richer features sets, Ultimately, this should provide a life-cycle roadmap for today\u2019s innovative, faster growing technology But the new cycle, like the one before it, brings risk as well as reward. For every Apple there is a According to Sebastian Thomas, Head of US technology research and portfolio manager at Allianz Global Investors, artificial intelligence, robotics, self-driving cars, biotechnology, targeted medicine and many other innovations will ultimately impact all facets of our society. He believes successful investing in technology markets requires not only a deep understanding of the technology itself, but a careful consideration ofSince 2000, the number of internet users has risen eight-fold \u2013 from 361 million to over 3 billion in 2014. At the same time the speed of these Internet connections have gone from dial-up modems to high-speed
\nconnections capable of carrying high definition video. The smartphone market went from not even
\nexisting to selling over 1.2 billion units per year in 2014.<\/quote><\/p>\n
\ntransformative. Fifteen years ago, many questioned whether Apple would survive as a going concern,
\nGoogle and Alibaba had just been formed and Facebook CEO Mark Zuckerberg was yet to graduate
\nfrom high school. Collectively these companies now account for USD 1.4 trillion in market capitalization
\nand generate nearly USD 90 billion in annual cashflow.<\/p>\n
\ninternet itself which has revolutionized the computer and communications world like nothing before. From
\nits origins as an obscure research project taken up by the US military in the 1960s, the internet has
\nbecome a global broadcasting platform, a mechanism to disseminate information, and a collaborative tool
\nthat facilitates interaction between individuals or organizations irrespective of geographic location. Tools
\nlike Google have democratized access to information while Facebook and Twitter have given voice to
\nhundreds of millions of people, sparking social revolutions.<\/p>\nWe believe the next 15 years promise to be just as dynamic and lucrative as technology becomes
\nubiquitous and, increasingly, industry agnostic. So, what are the themes that will drive change and could,
\npotentially, create an Apple or Alibaba of this brave new cycle?<\/quote><\/p>\n
\nhigher availability, and lower costs due to features like centralized Cloud Computing and Software as a
\nService. Declining chip prices and increasing functional capability are driving an explosion in the \u201cInternet
\nof Things\u201d, where intelligence is added to many every day devices, or personal items like as watches and
\njewellery. And, the \u201cIndustrial Internet\u201d means that automation is starting to enable advances like more
\nsecure payment systems for personal or corporate transactions, self-driving cars, and intelligent robots.<\/p>\nWe believe that with these advances come great opportunities for investors. What is most encouraging
\nfor long-term investors is that the more mature technology companies are embracing policies that reflect
\nthe more traditional assessments of value, namely the return of cash to shareholders.<\/quote><\/p>\n
\ncompanies that may currently have depressed profitability due to investments in rapid expansion. In
\nshort, the heavy capital expenditures of the last cycle do not need to be repeated and companies are
\nnow leveraging this installed capex to deliver profitability and cash flow at an accelerated rate. <\/p>\n
\nBlockbuster. While Steve Jobs and his team created a company with a market capitalization to rival the
\nGDP of some countries, the video rental store went into liquidation because it was on the wrong side of
\ndisruptive change that redefined its role and killed its market. At the same time, the risks associated with
\ntechnological innovation won\u2019t be just relegated to the stock market, where risk assessment and risk
\ntaking are expected. Many social questions will arise and new threats will have to be dealt with. Artificial
\nintelligence, robotics, self-driving cars, biotechnology, targeted medicine and many other innovations will
\nultimately impact all facets of our society. Ultimately, we believe successful investing in technology
\nmarkets requires not only a deep understanding of the technology itself, but a careful consideration of
\nthese social factors as well.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"
\nthese social factors as well.<\/p>\n","protected":false},"author":1,"featured_media":40903,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[1480],"tags":[1663,1655,1657,1651,1437,2117,2087,2068],"_links":{"self":[{"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/posts\/40905"}],"collection":[{"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/comments?post=40905"}],"version-history":[{"count":0,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/posts\/40905\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/media\/40903"}],"wp:attachment":[{"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/media?parent=40905"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/categories?post=40905"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/tags?post=40905"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}