Tech Titans show strength and resiliency in a challenging economic climate.
Jay McBain
Chief Analyst - Channels, Partnerships & Ecosystems - Canalys - Channel Influencer of the Year
Looking at the tech industry from the top-down provides directional clues for partners on how different product categories are performing.
One of the splits to consider is B2C vs. B2B revenue - what businesses and governments around the world spend on hardware, software, and services. The bulk of revenues for companies like Apple, Google, and Samsung Electronics, for example, are on the consumer side. Companies like NVIDIA, Intel Corporation, and AMD are integrated technologies that show up in other products.
The B2B side will be $4.94 trillion this year with B2C adding another $3 trillion or so.
The largest Tech Titans (public companies) in the B2B "channel" space are Microsoft, Amazon Web Services (AWS), Dell Technologies, Lenovo, IBM, Oracle, HP, and Cisco. Special mention this quarter to AWS who just achieved $100 billion in annual revenue run rate with continued growth in the ~20% range.
Fun fact: There are only about 100 companies on the Global Fortune 500 that have achieved this level across all 27 industries (rarefied air!). Only 2 of them in the B2B tech space - Microsoft and AWS - with Dell dropping slightly below because of the PC and data center demand challenges from last year.
Net net: We are back on the growth curve in revenue, profit, and market cap of the 18 largest companies with three solid quarters put together. We have a major AI-fueled upgrade cycle coming that will pull the hardware manufacturers into double-digit growth again.
More information on the Canalys approach:
Tech sector will continue to perform given the nature of competition, compliance, and regulations. Those who fail to understand the increasing interdependencies of our supply chain and the scrutiny their security maturity will have will most certainly become the new dinosaurs.
Great recap and insights. Thank you Jay
I help B2B businesses of all sizes be more effective, and efficient with their digital marketing efforts. BE WARNED - I say the quiet things out loud.
6 个月I hope you are not working while on holidays and these posts were all scheduled.