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Companies that Repositioned for the Future of Computing and the Cloud

Posted by Ben Isley on May 29, 2020

Computing, cloud storage, and IT hardware and software are priorities for almost any business and its relevance is only magnified with the current Coronavirus crisis.

Computing, cloud storage, and IT hardware and software are priorities for almost any business and its relevance is only magnified with the current Coronavirus crisis. If companies weren’t moving towards improving their technological capability, they certainly are now. We’re creating more data than ever and look to be relying on the cloud more than ever as many companies switch to fully remote or hybrid models. There are endless possibilities with this technology. 


The production of electronics, circuit board technology, and computer parts such as semiconductors and graphics cards and the larger industry of data centers and storage has seen a boom in recent years and shows no signs of slowing down. In such a future-proof sector, it’s no surprise many companies are clamoring for market share. In some situations, newcomers with a disruptive model can move in to replace entire outdated industries. Here is analysis of a few companies that have successfully repositioned and reinvented themselves using this model of the future.

Cisco

Cisco has been an industry giant for quite some time and has seen steady and strong growth over the years. In 2015, after a record-breaking quarter, new CEO Chuck Robbins stepped in. Robbins immediately reduced the importance of selling the tried and true networking hardware that had proven successful for over three decades and shifted to hybrid-cloud solutions and recurring software subscriptions. Sheesh, what a move! It took some time for the employees and customers to adjust, but Cisco now looks as well-positioned as ever to thrive in our current internet and technology environment. Cisco is now focusing on cloud security, data centers, and the internet of things. This is the outcome of a formal planning process from a new leader looking to make major changes to prepare and reposition for the future. Robbins realized that, despite Cisco’s relevance in 2015, some big changes had to be made to maintain dominance in the 5-10 year timeline.

Advanced Micro Devices

AMD is a semiconductor company that develops computer processors and related computing technology. Computing is a notoriously competitive industry and innovation happens so quickly in this space that cutting edge products can be entirely out of use in 3-5 years. In addition, established industry giants such as Intel have dominated the market. Before Lisa Su took over as AMD CEO, the company was involved in many different areas of computing and graphics.

Su decided to double down on what AMD did best and she developed a plan to remain relevant in very specific areas. Since she took over, AMD has focused on designing and producing semiconductors, graphics processors and motherboard chip sets. Since she took over, AMD has turned around from the brink of bankruptcy to one of the most promising computing companies in the US, attacking the market dominance of Intel and NVIDIA.

Salesforce

Salesforce is a software company offering cloud computing solutions for businesses. This is a full suite of customer relationship management (CRM) services with applications such as lead and customer management, marketing, and analytics. Entirely based in the cloud, employees using Salesforce can manage all aspects of a lead or customer and the tasks associated with that customer.

Founded by a former Oracle executive in 1999, Salesforce didn’t reposition - it was created to disrupt, being one of the first companies to successfully launch a cloud-based CRM software. The Rolodex or box of business cards, now extinct, was replaced by software packages that business owners would buy and install on office computers. Salesforce entered and took this a step-further, basing the service and data storage in the cloud. In addition to the cloud use, Salesforce doesn’t charge clients once - it’s a monthly subscription. More about the subscription model below.

Netflix

In the early 2000s, Netflix would mail DVDs to customers. In 2020, most of us can hardly imagine a life without streaming television and movies. We have Netflix to thank for this change. We may even ultimately attribute the death of cable television to Netflix and the subsequent industry competition such as Hulu, Disney Plus, HBO and Amazon Prime Video.

Netflix moved all of their entertainment offerings online and started a subscription-based model. Subscription models are very enticing to companies. To the user, a subscription usually means a low monthly cost for unlimited use. To a company like Netflix, a subscription means recurring monthly revenue. This straightforward model also offers another very important piece: scalability. This model has room to exponentially grow… and it has.

With the entertainment options streamed online, this is also a huge opportunity for capturing and using data. Now, Netflix tailors suggestions based on what you have previously watched, liked, and disliked. It’s very interesting to me how so much information is collected from us for free, and this same information becomes one of the most valuable assets to these companies.

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