Mobile computing and cloud storage could return Microsoft, Intel and Cisco to their former glory... if they can learn how to play the new consumer technology markets.
Baltimore, MD (PRWEB) May 26, 2011
New technologies, like mobile computing and cloud storage, could save the original high-tech Big Three. Or the venture into new technology could serve as little more than a final gasp for these fading giants. Learn the answer in a new series by Money Morning.
For most of the 1990s, U.S. high-technology heavyweights Microsoft Corp., Intel Corp. and Cisco Systems Inc. didn’t just perform in their respective markets…
They ruled them:
· Microsoft’s Windows operating system ran more than 95% of the world’s PCs and its word-processing and spreadsheet programs accounted for an estimated 95% of the market for office-applications software.
· Intel, the other half of the so-called “Wintel” duopoly, had its chips in more than 90% of the world’s PCs.
· And Cisco was acknowledged as the backbone of the Internet, a key reason that – back in March 2000, with a market cap of $555.4 billion – it became the most valuable company on earth.
Indeed, the shares of all three companies were the “must-own” stocks of the 1990s. Microsoft’s shares rose more than 9,000%, Intel’s 10,000% and Cisco’s phenomenal 66,000% during that 10-year stretch.
But in the decade that followed the “dot-com” crash, these once-invincible leaders have been transformed into miserable laggards – and are now the focus of shareholder scorn on a regular basis.
Over the last 10 years, while the Nasdaq Composite Index rose about 34% and the Standard & Poor’s 500 Index 8%. Meanwhile, Microsoft has slumped 25%, Intel 15% and Cisco 12.5%.
Once the innovation leaders in their fields, these three technology giants are no longer the front-runners in new ideas or new technology.
But ventures into mobile computing and cloud storage could return Microsoft, Intel and Cisco to their former glory, if they can learn how to play the new consumer technology markets.
All three companies have watched adaptable, inventive newcomers eat away at their de facto monopolies. And with continued dominance a virtual impossibility, what sort of future awaits these technology giants?
Learn if Microsoft, Intel, and Cisco can be reborn in the age of mobile computing in Part I of Money Morning’s four-part series: “Where Money Goes to Die:” After a Decade in Decline, Can Microsoft, Intel And Cisco Pull off a Rebound?.
(**) Please feel free to repost this story on your website, including a link to the original article on Money Morning – only the investment news you can profit from.
Money Morning.com provides valuable investment research and analysis by top industry and market experts to its more than 600,000 readers everyday - offering unique insights on new market trends and little-known companies and industries, while showing readers the truth behind today’s largest business stories.
William Patalon III