Good Morning
Good Morning
NewsNew York

Column: It's a shift in business models, not innovation, that has shaken up the tech industry



Intel (NASDAQ:INTC) and Oracle (NASDAQ:ORCL) are two very different companies, with one thing in common: They both have a long history of over-serving their customers – of selling comprehensive, high-performance products that almost never get used to their full potential.

It’s a business model that made sense during the fast-moving days of the dot-com boom, when new technology became obsolete almost overnight, and what seemed like overkill today turned out to be essential tomorrow.

These days, however, the over-serving model isn’t always affordable.

With the rise of mobile computing – first commodity laptops, then smartphones and tablets – battery life has become too precious to waste on features that may or may not become necessary.

Fifteen years ago, corporate IT departments were flush with cash as businesses positioned themselves for the New Economy. But in the wake of the financial crisis, large firms cut costs, while smaller enterprises found themselves without easy access to credit.

Full story at Minyanville.

More news