technology revolution
analysis
T
he launch of Google Glass,
the wearable computer, is a
futuristic reminder of how
technology continues to change
howwe live, work and shop.
But as information technology transforms the
consumer economy, the real driving force is no
longer hardware but software.The powers that
are remoulding the way business works are
now the cloud and‘big data’.
Some say that the cloud is the most important
innovation in‘enterprise software’ for the past
20 years, as significant as MicrosoftWindows
and the development of the web browser.What
it does is to outsource software and data storage,
maintenance and security, giving users access to
up-to-the-minute software programs.
Salesforce.comwas a pioneer and provides
a good example of what the cloud can do.
The company started by offering customer
relationship management (CRM) software
for sales people to track leads and manage
workflow as they try to drum up new business.
But instead of installing the rather
complicated software on the client’s
computers, Salesforce.com effectively keeps
it on its own. For a monthly fee, the client has
access to it via the web.When the software
needs upgrading, it is done behind the scenes,
with no additional cost or inconvenience –
unlike the old days – to the client.
The cloud flattens the commercial world,
because it makes small businesses more
competitive against large ones. It gives tiny
start-ups state of the art back offices, while
allowing their front-end face to the world to
be as smart and sophisticated as a much larger
company. In the cloud no one knows how big
you really are.
The cloud also allows you to access your
data via any device, wherever you are. Google
Drive is a cloud-based hard drive for
individuals, where people can store their data
– you get the first 15GB for free.You can
access it via a desktop computer in your office,
via tablet on the plane or through a mobile
phone over dinner.
‘The devices in front of us are now just
access points to our data,’ says Sunil Thakor of
Sands Capital, one of the satellite managers for
the St. James’s Place Global Equity fund.‘They
By Edward Russell-Walling
cloudcontrol
New software technology is changing the way consumers
access data, and improving the financial outlook of businesses
THE INVESTOR
|
09
