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Technology is strange. You get the headline news of ground-breaking technology, everyone jumps on the band-wagon for a while and then you hear nothing again for months or maybe years until you suddenly realise that the technology, maybe somewhat diluted, has ‘crept in through the back door’ and has become part of everyday life. Do you remember those articles predicting that every mundane consumer piece of equipment from your ‘fridge to your light switches would incorporate an embedded computer and would have internet access. It hasn’t completely happened but I am sure we’re getting there. Where it has happened is in the motor car. Every vehicle uses an embedded computer to control the engine (Engine Management System) and, I suspect, more controlling braking and gear-changing etc.

So what are the areas that appear to be ripe for technological change?

Technology touches every part of our lives. In communication, navigation, entertainment, data manipulation, medicine, retailing and much more. It continues to have more and more effect on our daily lives without us realising it.

The big thing in recent times has been the idea of convergence- the integration of voice, data, and video.
True this does not seem to have happened yet, but remember that back door: We have large organisations using voice over IP (VOIP) coupled with data sharing and video conferencing and, of course, some video-on-demand through SKY & British Telecom.

So, to concentrate on those three areas of technology and where it is going:

Telecommunications

Telecoms is predominantly about mobility. Mobile phones are used for communications (voice and text), navigation (GPS) information and entertainment.

We are currently (2011-2013) on fourth generation (4G) which means broadband wireless access to fast moving devices and in a couple of years we will be on the fifth generation (5G) which, so far, has unknown standards.

One of the biggest changes recently is in the hardware with Nokia appearing to have dropped the baton in favour of Android (Google), iPhone/Pad (Apple) and HTC (Microsoft).

Future distinct possibilities appear to be in advertising and in the mobile wallet.
Advertisers believe that they could obtain an individual’s personal profile (likes/dislikes, disposable income, buying habits) (from Social Networks), location (from GPS) and time of day. This information might enable them to direct an appropriate advertisement, targeted by those three parameters.

You will no doubt have read about payments for goods and services and fund transfer via mobile ‘phone. A joint venture between a mobile service provider and a financial institution such as a bank to transform the mobile into a sort of debit or credit card. The mobile can be used to purchase goods in a store, the funds being instantly transferred from the customer to the retailer (store, cinema, car park etc.). Funds are safely and securely transferred to and from the user’s, or third party’s, bank. This is established technology in certain parts of the world but I think there will be an explosion in this concept in a year or two. We will accept the mobile wallet as part of our normal daily life.

Computing

One of the biggest advances in computing is in the area of embedded systems. Unlike your PC an embedded system, or computer, performs a specific task. The best example being the engine management system already mentioned.

There has also been a big shift into mobile computing with laptops and now tablets (iPad) and even mobile ‘phones possibly due to fashion (!), battery and CPU technology. In spite of this I believe there is still a big requirement for desktop PCs, particularly in business.

Another significant move just beginning to make a name for itself is something known as the ‘Cloud’ or ‘Cloud’ computing. It’s in the name, really: hardware, software & memory all up in the clouds or virtual.

Cloud computing covers virtual servers that can be configured and re-configured instantly (and for varying timescales, rented software (SaaS or Software as a Service) that is not physically installed on your PC but just used as you require it, and, of course, data storage.

This will inevitably lead to less local hardware. A full spec.PC fully loaded with various software may no longer be required. Rather a ‘thin server’ with internet access (or maybe just an iPad!).

Less local hardware but maybe more remote hardware- banks of servers in specially constructed buildings with masses of secure power and cooling systems providing hosting, data storage and ‘cloud’ facilities.

Internet

Web3 is coming!

So we all know what the internet and the World Wide Web is?
And Web2? Maybe a bit more obscure; Web2 is used to describe Web applications that facilitate participation and information sharing. Users are able to interact with each other. Well known applications are the social networking sites (like Facebook).

Web3, perhaps will be in 3D, virtual reality and, more importantly, where the money will be made!

They’re not problems. They’re opportunities!

As technology brings benefits so it brings problems. You may have read recently in the news about Sony’s problems with their customer email database being hacked into, not once, but twice in a couple of months! Cybercrime, as it is referred to, is a big problem and possibly a good area in which to invest. It covers, primarily, network monitoring, security, and identity management.

If you would like to find out more about investing in technology, Fisher Investments have published an excellent guide to understanding and analyzing the global Technology sector which is suitable for investors of all levels.

Find out more about Fisher Investments on flickr.