We have entered into a new decade and based on the past technology trends one can surely confirm that the adoption of cloud computing would continue to grow. Most of the companies around the world are switching towards digital transformation. As per a report published by Deloitte, for many companies, the hybrid-cloud approach would serve as an interim step in the long-drawn process of digital transformation. Because of the dependence of the companies on legacy systems and need for them to comply with corporate regulations, most of these companies prefer to opt for private as well as public clouds. As per Gartner, by 2020, almost 90% of the organisations would be taking steps to adopt hybrid infrastructure management.
Apart from that, the companies have also started adopting multicloud solutions that bring together cloud services from various providers. Through the multicloud approach, most companies can access the strengths & weaknesses of several vendors prior to committing for the longer-term arrangements. Further, using multicloud, the companies also save a lot of money, time and avoid any vendor lock-in issue.
Another technology which is going to dominate the Technology sector in 2020 is Artificial Intelligence. 2020 could be a breakout year for edge computing. Edge computing is a distributed, open IT design that showcases decentralised processing power, allowing mobile computing & Internet of Things (IoT) technologies. In edge computing, the data gets processed by the device itself, or any local computer or server, rather than being transmitted to a data centre. Edge computing allows data stream acceleration, which includes real-time data processing without latency.
As per Paul Sallomi, who is the global technology, media, and telecommunications industry leader for Deloitte, the companies should take advantages of reduced latency and lower bandwidth costs of processing data locally, at the periphery of their networks.
Recently NASDAQ has released its Fourth Annual Technology Trends Report. The report states that Digital Transformation has a different meaning for different people. For some, Digital Transformation refers to marketing and communications for those on client-facing roles, managing the client's overall experience with a product or the company itself through multiple channels. For others, Digital Transformation refers to reimagining techniques to combine people, data as well as processes to help engage clients, empower employees, improve operations & transform products and services.
The Annual Tech Report 2020 has recognized three key technology trends that would bring these concepts into reality and would help reshape markets everywhere. These include:
Machine-to-Machine Communication produces data in “software-defined” ways. This software has the full control on data and does not require any human involvement.
Further, there is no hardware-specific dependency & functionality can be added or modified easily. It gives businesses the power to absorb & compute huge volumes of data in real-time, so they can perform functions & scale rapidly. Further, they can be more predictive & bring automated decision-making closer to perfection.
An example of an ASX listed company that specialises in machine-to-machine connectivity is Connected IO Limited (ASX: CIO) that develops wireless hardware technologies for the Machine to Machine (M2M) market.
Business in Real Time:
Edge computing & IoT are generating huge amounts of data. It is very important for markets & marketplaces to store & transport it from the point of source to the point of interest. MQ Telemetry Transport (MQTT) is an M2M/IoT connectivity protocol which is being applied in sensors for transacting with a broker through a satellite link, over infrequently used dial-up connections with healthcare service providers, and in a range of automation intended for home & in circumstances where small devices are used .
Further, MQTT is also perfect for mobile applications because of the small size, low power consumption, reduced data packets & efficient distribution of information to one or many receivers. However, MQTT has limitations that are being overcome by other technologies.
An example of an ASX listed company using sensor technology is CCP Technologies Limited (ASX: CT1). The company specialises in IoT product development and product management.
The Platform Economy:
Platforms & Application Program Interface allow M2M-generated data to be combined in distinctive ways, forming a base for innovation & the power to provide a distinguished and unique client experience.
Financial services, as well as other industries, have been influenced due to platformification. The end-users are provided with the services in the form of bundles, and then their reactions are monitored. The information is then used to provide a differentiated client experience. Platforms also enable markets and marketplaces to become fully digitised and get connected to all the areas of their business.
An example of an ASX listed company that provides financial services via the platform is Afterpay Limited (ASX: APT). APT is a technology-driven payment company.
Markets and marketplaces have started using innovative and potentially disruptive technologies for boosting efficiency, lessen their costs and at the same time, improve customer experiences. It would also help in generating revenue as well as facilitate regulatory compliance. Most of them have started building the cloud, M2M, machine learning, artificial intelligence and blockchain technologies as a part of their strategies. They are participating in industry working groups to understand how they can make the best use of technologies like Kafka (an open-source streaming platform that can publish & subscribe to streams of records, similar to a message queue or enterprise messaging system), Robotic process automation, serverless computing and LCNC and confirm that the implementation is in conformity with the regulations.
Other focus is towards industries like the automotive sector for new ideas where these technologies can be used to attain business goals.
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