The time of software

The personal-computing industry is no longer profitable and many companies begin to shift from hardware to software. Few years ago, IBM left the PC market and became an “IT Service provider”. Few months ago, HP announced that it got out of the hardware business then changed its mind later when Meg Whitman, the new CEO arrived as she wanted to think about it for a few more months.

This week, the number 3 computer maker, Dell company announced that “It is not a PC company anymore,” The founder Michael Dell told newspapers that his company is focusing more on service and become “IT company that understands the needs of its customers.”

The only company that is still doing well is Apple. However Apple is not just a PC company as it involves in several areas: Music (iPod MP3), Mobile phone (iPhone) and Tablet (iPads) and continue to grow into one of the largest company in the world (Over 500 Billion dollars).

Rather than compete with Apple, Dell is moving into a more lucrative business: Provide servers and other equipment for cloud computing business. In this area, Dell will compete with Cisco systems, another giant in technology infrastructure.

Dell is also trying to position itself as an advanced service company similar to IBM. There will be war between Dell, IBM, Cisco, and HP to see who will be more successful. When asking about the future of PC industry, the obvious answer is: “The time of hardware like PC is over. This is the time of software: Software as a Service; software in mobile apps; software in cloud computing; software in search engine; software control robots; software in Office automation; software in manufacturing etc.”

As the software industry is growing fast, the demand for more software workers intensified and the shortage become more critical than ever.

Sources

  • Blogs of Prof. John Vu, Carnegie Mellon University