Tech-know-logy

TECH BUSINESSES EMERGING STRONGER THAN EVER AMID THE GLOBAL ECONOMIC CRISIS...

While the economy across sectors has tanked from the crippling impact of the Covid-19 pandemic, tech companies aren’t just holding strong but thriving.

“If we are to look at the latest list of prospering businesses amidst the global crisis, we see an interesting pattern, where almost all the top businesses are from the technology sector including the likes of Amazon, Alphabet, Microsoft, Apple, Tesla, and others. Even businesses that aren’t directly into tech, are indirectly driven by technology like Samsung Biologics, or Alibaba Health Information. Few other sectors that have made into the list are from pharmaceutical sectors (which is obvious given the COVID-19 vaccine hunt). This is interesting because it clearly shows the future of the global economy and how we will be going forward in the post COVID-19 era.”

Last month, the tech giant Amazon said that the company is ready to hire 100,000 warehouse workers; in line with a massive surge in demand. Similarly, Facebook CEO Mark Zuckerberg said that his social media platform has experienced a massive increase in traffic for video calling and messaging. A similar response was put forward by Microsoft, whose online collaboration platform saw a surge of nearly 40% amid the lockdown.

Zoom is yet another tech business that has seen a dramatic change of luck, as the software emerges as the leading video conference platform. The company saw burgeoning revenue growth, and soon Zoom was worth more than the 7 biggest airlines.  

We have similar stories from Netflix and YouTube that saw a massive surge in traffic as people went into the lockdown. In fact, the intense traffic surge on Netflix was so high that the Government Officials in Europe has to ask the company to reduce the video quality of its streams, as a means to relieve the strain on the continent’s internet network. Similar steps were taken by YouTube, who discontinue HD streaming in Europe, to reduce the load from internet network.

“Here we see companies stretching to their limits and ready to expand massively to keep up with the continuously rising demands and on the other hands we have giant businesses from other sectors including the likes of Victoria's Secret, Zara, La Chapelle, Hermes, Rolex and others that have sustained massive losses and have either filed for bankruptcy or undercut massively to weather-off the economic disruption.”

Now, all this fiery growth doesn’t mean that there isn’t any worry for these tech giants. In fact, companies like Google, and Facebook have also suffered massively as the advertisement revenues tanked due to the economic woes of businesses. Collectively, Alphabet (Google’s parent company), Apple, and Amazon have lost over $ 1 trillion in market value. Similarly, some of the other tech companies like Uber, and Lyft also lost massive revenues as their customers vanish.

“Even with these temporary losses, I believe the tech giants would emerge as much stronger on the other side of the pandemic. The work from the home model has already demonstrated its viability and benefits and many companies are already starting to reshape business models with permanent work from home structure. Furthermore, the lockdown has also shifted the consumer habits, as more people have started to rely on online services. All of these would benefit the tech giants including the likes of Google, Apple, Amazon, and Microsoft who maintain a robust and large cloud infrastructure and are already pressing hard to sell their cloud infrastructure as an alternative means to the corporate network. So, technically these technology businesses will lead the future economy in the post COVID-19 world”

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