Friday, May 27, 2011

CEO Changes Evidence of Computing Era Shift?

Hewlett-Packard Co., Google Inc. and Advanced Micro Devices Inc. lead technology companies with a combined $265 billion in market value on the Standard & Poor’s 500 Index that have changed CEOs since August 2010. That’s up from companies worth $75 billion a year earlier. Privately held Twitter Inc. replaced its CEO in October, a month after Finland’s Nokia Oyj did the same.

There now are calls for replacing Microsoft chief Steve Ballmer and Cisco CEO John Chambers. Research In Motion probably is next, said Bill Coleman, a partner at venture capital firm Alsop Louie Partners in San Francisco.

One wonders whether the changes are just one more sign that a new computing era, to be lead by new firms, is gaining momentum, pressuring the old leaders.

Those of you familiar with the evolution of computing technology over the past few decades are aware of the way historians describe the key "eras" of that history. We begin with mainframe computing, transition to mini-computers, then to personal computers, then to a period we generally call the "Internet" or "Web" era and now seem to be at the beginning of the next era, for which we do not generally agree on a name.

The point we like to make is that, in each era, and eras do not break cleanly and neatly into 10-year periods, there are some firms which dominate the business in terms of market share and influence. What we also have seen, though, is a different set of leaders in each era.

Apple might be the anomaly, as it is in so many other ways. Some will argue that Apple already was a "leader" in the PC era. Others of us who once were Apple fanatics and were forced by our trading partners to join the Wintel orbit might not agree that Apple was a leader in the PC era.

In that case Apple might yet remain a candidate to emerge as among the leaders of the next era. But you already can see that leadership is shifting to software companies rather than "hardware" firms.

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