Imagine this: You are reclining in your favourite armchair, a steaming cup of coffee sitting close by, and are engrossed in a deep, enlightening conversation with a friend.
“The big bucks are in software,” she says. “Just look at the Apples, Googles, and Facebooks of the world!”
And while you might be tempted to agree, allow me to nudge your perspective slightly and introduce an idea: what if I told you it’s the hardware that’s the true star of this tech show?
I would not blame you if you were sceptical at this stage. But hear me out. Consider this my invitation to a fun logical analysis of value generation in the tech world. Let us begin.
Take Apple for instance. Sure, the Silicon Valley giant has given us cutting-edge software that makes our lives productive and stylish.
But let us not forget the dazzling hardware. The sleek iPhones, the slim MacBooks, the smart Watches — they are a feast for our eyes as much as they are for our tech-craving souls.
Like an award-winning movie, the script (read: software) is undoubtedly pivotal, but the star-studded cast (read: hardware) is what makes the box office ring!
Google, on the other hand, has its roots firmly planted in search engine soil. We’ve all come to know and love Gmail, Google Docs, and the whole merry family of apps. But wait, what’s that humming in the background?
Oh, that’s Android! And just as an encore is to a successful rock concert, Android comes shipped with a Google product as the default option (in each category), elevating the search giant from the virtual realm to the physical one.
But, how about Facebook, you ask? Well, even Mark Zuckerberg seems to be embracing the ‘hardware first’ mantra. I mean, why else would they rebrand themselves to “META”, if not for a serious commitment to owning the virtual reality hardware space?
META is betting big on this ‘fad’ becoming the mainstream future. Now, if that isn’t a bold and brilliant hardware gambit, I don’t know what is!
Riding the Hardware Wave
Looking back at the journey of major tech titans, we find a recurring theme — most rode a significant hardware technology shift to rise to prominence.
Microsoft and Apple? They surfed the wave of the personal computer revolution. Google? It caught the networking revolution’s tide at/around its peak.
Amazon? Its success story is penned by the cloud (a critical hardware innovation) and its sophisticated warehousing system.
The world of gaming? Sony, Nintendo, and Microsoft Gaming are the standing victors of the console revolution.
These tech heavyweights didn’t just seize the opportunity presented by these hardware shifts — they turned them into springboards for success.
Naturally, other businesses sprouted on top of these platforms. We could classify a whole bunch of these businesses as “AWS wrappers”, “GPT wrappers”, etc.
The Hardware Highway Ahead
While our smartphones, tablets, and laptops continue to serve us well, it is reasonable (and prudent) to assume that their glory days might be fading.
The dawn of the next big hardware shift isn’t too far off, and the winners of tomorrow will be those who master the art of surfing these waves.
At first glance, OpenAI might appear to buck this trend. But even this anomaly owes its success to a hardware revolution — the rise of the GPU. If this were a game of rock-paper-scissors, NVIDIA would surely trump OpenAI.
Hardware Vs. Software — Illustration created by the author
So where do we go from here? Which exciting avenue of technological advancement lies ahead? To be honest, if I had a crystal ball, I would tell you. But the beauty of this wild ride is in its unpredictability.
If there’s one lesson history teaches us, it is that change is inevitable. So, rest assured that the next technological shift is brewing somewhere. It might be in quantum computing, or something we have never even heard of.
The question is, are we ready for it? More importantly, are we willing to look beyond the obvious software glamour and appreciate the sturdy, game-changing hardware that props it all up?
Conclusion
To conclude, if I were to be on the field, I’d make sure to position myself at the brink of the next hardware shift. This is far easier said than done, and is a capital intensive exercise.
The biggest players take so many colossal bets. Yet only a tiny fraction converts. If this were not the case, we’d see generational monopolies.
In the fast-paced world of technology, the hardware shifts are where all the drama unfolds. Good software is built on great hardware.
In my opinion, riding hardware shifts is the recipe for becoming a top-tier success story in software.
So, the next time you are sipping coffee in your armchair, discussing big bucks in tech with your friend, do consider hardware shifts and the players driving them.
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