Does the future bode well for growth in the technology sector?

Does the future bode well for growth in the technology sector?

With the NASDAQ Index up almost 18 percent in 2012, technology stocks have become a hot topic of conversation.   The growth has been fueled by increased spending on cloud computing, mobile devices, and other data storage devices.  Do these themes bode well for future growth in the technology sector?

  • The Cloud computing business may be one of the most attractive opportunities for investing in 2012. Companies no longer need to buy data servers, coolers, and other equipment to store their data, resulting in huge cost savings. Substantial physical space is saved without any data hubs, and employees have easy access to any information, anywhere.
  • Over the past several years, the focus of application innovation has drastically switched from Windows applications to web apps.  However, Microsoft has announced the upcoming release of Windows 8. Windows 8 will have the capability of operating on desktops, as well as tablets, a key new feature that should help Microsoft capture a larger share of the nascent tablet market. As there are still many enterprises that are largely Windows dependent, the integration of Windows 8 to tablets will propose a much easier option to businesses than switching to Apple’s iPad, giving Microsoft a distinct advantage.
  • The use of mobile devices has grown vastly over the past several years. The world now has over 4 billion mobile phones in use, of which 1.08 billion are smartphones and 3.05 billion of them are SMS enabledxi. The smartphone market is projected to have sales of 650 million units in 2012, a 35% increase from 2011’s sales of 481 million unitsxii. Telecom companies are moving quickly toward 4G networks and devices. 

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