Electronic and high-tech industries are changing at near-crazy rates. In this environment where any change is likely to happen rapidly, the electronics industry is also moving into a key strategic transition level - in the next few years, in order to promote the product towards a more energy-efficient direction to maintain its advantages and avoid being eliminated, the field The company is bound to make changes.
Up to now, the top decisions of many traditional high-tech companies still remain in hardware servers, routers, or software areas such as operating systems and other commercial applications. Over the years, these companies have become accustomed to this business model, or occasionally added some additional professional services to increase some of the hardware and software revenue. However, this limited business model has not been applied to long-term competitive strategies.
Many companies need at least four or more business models to provide users with flexible solutions. Ideally, these business models should effectively continue to operate in the next 2-3 years. For a software company, this may mean providing traditional genuine software; Software as a Service (SaaS); integrating software and hardware into the device; and advertising patterns for specific customer groups.
The consulting firm Accenture pointed out that there are several trends in the industry, which are aggravating the changes and challenges faced by the electronics and high-tech industries, including the magnitude of the entire industry's transformation, and more investment. Many companies underestimate the complexity of the operations that will be added when four or more business models are added, and the additional contingency measures required. The traditional electronic and high-tech enterprises have to support existing businesses with existing business models and capabilities that have actually been stretched. This also means that many companies are actually poorly prepared for changes in trends such as everything as a service (EaaS).
There are several trends that have contributed to these market changes. At the core is cloud computing. In this industry, the discussion about cloud computing is almost ubiquitous. Cloud computing can reduce the cost of information technology, increase the efficiency of enterprises, strengthen enterprise innovation, and promote the adoption of more flexible systems and procedures. For high-tech companies, this means that the way to deliver "products" in the future will also change.
Key cloud products include SaaS, Platform as a Service (PaaS) and Infrastructure Services (IaaS). SaaS means to provide software through the Internet, usually using online ordering. PaaS allows developers to build applications directly for cloud computing and deploy them using cloud infrastructure. IaaS allows users to access computers, store and use other infrastructure, users can usually specify how much resources they need, and how they will use.
The most important point is that the electronics and high-tech industries are moving toward a more service-oriented direction. These technology-driven services continue to expand, and traditional high-tech service providers have to pay more attention to the user experience that their services can create, as well as the ability to further enhance the user experience and allow users to continue to purchase their services. To a certain extent, this means that traditional technology players must again develop the capabilities they did not have before, such as metering and billing; churn and revenue management; operating infrastructure; and including security and service-level agreements. Key indicators. This means that these companies will look more like telecom operators or cable companies than traditional hardware or software companies.
One of the reasons for this huge shift is because of the increasing emphasis on service-oriented operations in this area. According to Gartner’s estimates, companies will spend US$112 billion in software-as-a-service (SaaS), platform-as-a-service (PaaS), and infrastructure-as-a-service (IaaS) areas in the next five years.
Who is the possible winner?
Then, in this process of transfer to service, who is the possible winner and who is the possible loser? In this regard, companies that start SaaS early will have advantages over traditional hardware and software developers. Because these companies have already entered the service area that this industry focuses on early. These companies already have the ability to provide a superior customer experience, but also provide more added value, compared to most of the hardware and software companies have just begun this journey.
Many traditional hardware and software companies still have many obstacles to overcome. Due to numerous consolidations and acquisitions of the industry over the years, these companies have already shaped complex overlapping businesses and business models. This complexity, caused by incorrect consolidation, can cause obstacles as companies try to develop new business models.
In addition, traditional businesses must also face another heavy problem: how much investment these new business models can attract, at the same time, these companies must continue to help current business. This must be balanced in it. The traditional business model will not disappear soon. In the next 2 to 3 years, the SaaS business model will only account for about 10% of the total software industry revenue. Therefore, traditional software licensing will remain the most important software supply model in the coming years. On the other hand, the main strength of driving SaaS is the growth of new markets. Even if there is still no SaaS business model today, almost every traditional software company plans to have both traditional and SaaS business models in the next few years. The reason these companies do so is to maintain their competitiveness. But this is not easy and the cost is not low.
One of the keys to success in the future service-oriented market is the need to think about the so-called segmented operating model. This is a comprehensive operational process. People and systems must successfully provide business model strategies. This business model can more intelligently distinguish between market preferences for high-end or low-end service solutions. Similarly, identifying the appropriate business model so that the provision of such services will also be the key to success.
Up to now, the top decisions of many traditional high-tech companies still remain in hardware servers, routers, or software areas such as operating systems and other commercial applications. Over the years, these companies have become accustomed to this business model, or occasionally added some additional professional services to increase some of the hardware and software revenue. However, this limited business model has not been applied to long-term competitive strategies.
Many companies need at least four or more business models to provide users with flexible solutions. Ideally, these business models should effectively continue to operate in the next 2-3 years. For a software company, this may mean providing traditional genuine software; Software as a Service (SaaS); integrating software and hardware into the device; and advertising patterns for specific customer groups.
The consulting firm Accenture pointed out that there are several trends in the industry, which are aggravating the changes and challenges faced by the electronics and high-tech industries, including the magnitude of the entire industry's transformation, and more investment. Many companies underestimate the complexity of the operations that will be added when four or more business models are added, and the additional contingency measures required. The traditional electronic and high-tech enterprises have to support existing businesses with existing business models and capabilities that have actually been stretched. This also means that many companies are actually poorly prepared for changes in trends such as everything as a service (EaaS).
There are several trends that have contributed to these market changes. At the core is cloud computing. In this industry, the discussion about cloud computing is almost ubiquitous. Cloud computing can reduce the cost of information technology, increase the efficiency of enterprises, strengthen enterprise innovation, and promote the adoption of more flexible systems and procedures. For high-tech companies, this means that the way to deliver "products" in the future will also change.
Key cloud products include SaaS, Platform as a Service (PaaS) and Infrastructure Services (IaaS). SaaS means to provide software through the Internet, usually using online ordering. PaaS allows developers to build applications directly for cloud computing and deploy them using cloud infrastructure. IaaS allows users to access computers, store and use other infrastructure, users can usually specify how much resources they need, and how they will use.
The most important point is that the electronics and high-tech industries are moving toward a more service-oriented direction. These technology-driven services continue to expand, and traditional high-tech service providers have to pay more attention to the user experience that their services can create, as well as the ability to further enhance the user experience and allow users to continue to purchase their services. To a certain extent, this means that traditional technology players must again develop the capabilities they did not have before, such as metering and billing; churn and revenue management; operating infrastructure; and including security and service-level agreements. Key indicators. This means that these companies will look more like telecom operators or cable companies than traditional hardware or software companies.
One of the reasons for this huge shift is because of the increasing emphasis on service-oriented operations in this area. According to Gartner’s estimates, companies will spend US$112 billion in software-as-a-service (SaaS), platform-as-a-service (PaaS), and infrastructure-as-a-service (IaaS) areas in the next five years.
Who is the possible winner?
Then, in this process of transfer to service, who is the possible winner and who is the possible loser? In this regard, companies that start SaaS early will have advantages over traditional hardware and software developers. Because these companies have already entered the service area that this industry focuses on early. These companies already have the ability to provide a superior customer experience, but also provide more added value, compared to most of the hardware and software companies have just begun this journey.
Many traditional hardware and software companies still have many obstacles to overcome. Due to numerous consolidations and acquisitions of the industry over the years, these companies have already shaped complex overlapping businesses and business models. This complexity, caused by incorrect consolidation, can cause obstacles as companies try to develop new business models.
In addition, traditional businesses must also face another heavy problem: how much investment these new business models can attract, at the same time, these companies must continue to help current business. This must be balanced in it. The traditional business model will not disappear soon. In the next 2 to 3 years, the SaaS business model will only account for about 10% of the total software industry revenue. Therefore, traditional software licensing will remain the most important software supply model in the coming years. On the other hand, the main strength of driving SaaS is the growth of new markets. Even if there is still no SaaS business model today, almost every traditional software company plans to have both traditional and SaaS business models in the next few years. The reason these companies do so is to maintain their competitiveness. But this is not easy and the cost is not low.
One of the keys to success in the future service-oriented market is the need to think about the so-called segmented operating model. This is a comprehensive operational process. People and systems must successfully provide business model strategies. This business model can more intelligently distinguish between market preferences for high-end or low-end service solutions. Similarly, identifying the appropriate business model so that the provision of such services will also be the key to success.
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