Wednesday, January 24, 2018

When it comes to investing, it's better to think twice

There is a group of investment advisors today that have to be pulling the few hairs that are left in the head. A little more than a decade ago, the founders of Google, made an offer to Excite to sell the service of the search engine in 1 million dollars. George Bell, president of Excite rejected the offer as an excessive price. The founders of Google lowered the price to 750,000 dollars and still George Bell rejected it using the theory that "anyone can program a search engine" ... Today Google is valued at 400,000,000,000 dollars. Moral: at the time of investing, it is better to think twice.


A safe investment in the world cybersecurity is to take a chance on Information Technologies (IT). During the year 2017 the global growth of the IT investment suffered a change with an increase of the 4% that is believed to persist over the next years, for example in 2018 global spending is expected to amount to $3 trillion. Despite this increase in investment, companies don´t forget the negative impact that Brexit, continuous currency fluctuations and a possible global recession can have.

But despite these ideas and as says John-David Lovelock, vice president of research at Gartner, these negative events that may occur in the future don´t  throw companies back when it comes to increasing their investment: "Despite this uncertainty, companies will continue to invest in IT while anticipating the growth of revenue, but their spending patterns will change: projects in digital business, blockchain, Internet of Things (IoT) and the progression of big data to algorithms for machine learning even Artificial Intelligence (AI) will continue to be the main drivers of growth."

The investment in business software is one of the basic pillars of this spending on IT. The global software spending that is studied will grow by 9.5% in 2018, and will grow another 8.4% in 2019 until it reaches a total of 421 billion dollars. This software spending in 2018 is expected to focus on software as a service (SaaS). The growing availability of SaaS-based solutions is encouraging new adoptions and spending in many subcategories, such as financial management systems (FMS), human capital management (HCM) and analytical applications.

Now more than ever, cybersecurity is receiving more direct attention from boards of directors around the world. Many of the companies' management groups are beginning to add profiles linked to the "cyber" world not only to increase their security, but also to look for real and visible metrics and not just patches that serve as loopholes.

Cyberattacks are growing both in number and in complexity and are giving results to a real loss of customer confidence, regulatory sanctions and an impact on the reputational image of companies. As the attacks increase, so does the dependence on IT, cloud, IoT and industrial support systems. This dependence has gone far beyond the corporate sector, reaching the same consumer. IoT dependence will continue to drive the world of security by expanding a security component to the traditional components of confidentiality, integrity and availability (CIA) of a security program.

The device segment is expected to grow 5.6% in 2018. In 2017, the device segment experienced growth for the first time in two years with an increase of 5.7%. Meanwhile PC sales growth is expected to be flat in 2018, even though the continued migration of Windows 10 is expected to generate positive growth in the business market in China, Latin America and Eastern Europe.

A lot of weight on which this growth in spending is based is the new opportunities that arise from the IA technology to increase the efficiency, to create ideas that personalize the user experience and to tempt the compromise and the trade.   Another of its objectives is helping to expand the opportunities of incomes generation as part of the new business model impulse by the data knowledge. But it has to be taken into consideration that the investment will be exceeded by the increase in income. Or, is not this the final objective of any investment?

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