Services: The New Software
While the concept of Software of the Service was the beginning of what the world knows as tech services, it’s not too different from other parts of the service industry. Home health care, hospitality, and customer service all have similarities.
The difference? Digital services are newer and can demand a higher price tag as the tech world undergoes constant change. There’s no bubble burst insight for all services, but some services are becoming oversaturated.
The key is keeping an eye on specific industries and figuring out how many competitors are in the space. If you’re interested in safe investments for known, good performers, investment advice is the same as any other business.
Look for historically good performers, look for innovators, and look for anyone with figures that look too good to be true. The digital world is full of big promises and cooked books–especially if you’re not tech-savvy–but core facts are the same.
Hardware Industry Factors
While software and services have seemingly built massive empires out of thin air, hardware is still necessary.
This is most apparent as software and service developers, engineers, and even average users push systems to their limits. At some point, people will figure out how to take up as much power as necessary.
Running out of memory, a processor (central processing unit or CPU), having a video card that isn’t good enough for the latest games or 3D design, and many other personal computer problems are amplified in business.
Think of the cloud computing world. Running lots of apps on the cloud is seemingly limitless from the user’s perspective, but cloud computing became great because it was in the right place at the right time.
There was more hardware than people knew what to do with. Once cloud computing became familiar to most power users and engineers, the answer was apparent: a lot of the same thing, but multiplied.
Keep an eye on the video card industry since cryptocurrency mining (Bitcoin, Ethereum, CRP, Litecoin, Tether, etc.), computer gaming, graphic design, and many scientific modeling techniques rely on the powerful card.
Processors and semiconductors are still important, and keeping an eye on all components can help you plan investments and future moves. Incidents such as the computer component shortage caused by natural disasters show the human toll, tech toll, and more.
By watching how multiple market pressures affect the tech world and how tech world problems affect the rest of the world, you can figure out minor players that could hold bigger players hostage. Just the same, you can move into niche markets.