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Trends: What Telco and CSP Leaders Must Consider For 2022 rwang0 Mon, 06/14/2021 - 06:40
Telcos and CSPs Shift Strategies While Battling The Digital Giants
The past two decades has seen a rash of market consolidation activity led by telecommunication organizations in their quest for manifest destiny. The thesis to dominate content, distribution channels, technology platforms, and customer network made sense in the non-digital age (see Figure 1). As these organizations rushed to add content and technology platforms to their portfolios, they began to realize how hard it was to run a content business. Further, post-merger synergies often failed to realize their potential as most organizations could not rationalize how to run businesses with different business and monetization models.
Figure 1. The Four Forces Driving Telecom, Media, Entertainment, and Tech Convergence
Source: R Wang and Insider Associates, LLC
Consequently, the post 5G era has telco’s and CSP’s doubling down on what they know best – infrastructure, the distribution channels and technology platforms used to power the 5G revolution. Why? Well capitalized digital giants in the streaming space such as Netflix and Amazon have created a war for content spending tens of billions each year for content. Unfortunately, Telco’s are not equipped financially for this type of war for top shelf content creation. Hence the divestiture of content by leaders such as AT&T and Verizon while digital giants continue to make acquisitions for content libraries.
Thus the age of vertical integration has ended. Most Telcos and CSPs have exited the content business to focus on distribution networks. The few that remain vertically integrated have adopted a digital giant posture and will choose to identify long term investors aligned with this vision.
Leaders Must Prioritize Trends Based On The Business Hierarchy Of Needs
As telcos and CSPs double down on infrastructure, the renewed focus has led to trends that align with the business hierarchy of needs. This model enables leaders to prioritize business strategy (see Figure 2). As many know, Maslow’s hierarchy of needs provided a framework to assess needs and wants at the individual level. While Maslow's research explained what would drive and motivate individuals, applying the model to organizations yields a powerful framework for business prioritization. Why? Today's next gen C-level executives face an onslaught of business priorities that must address the organization's basic needs from regulatory compliance to higher level needs that include the management of the brand. The business hierarchy of needs uses an analogous framework to Maslow's. Using the framework, business priorities and related projects can be aligned with the five levels that include:
Brand. The brand describes a promise to stakeholders. The brand is more than the collection of products or services offered by the company. The brand encompasses an emotional value, an aspiration, and the public face of a business strategy. The brand can be viewed as a person, product, organization, and symbol for the company.
Strategic differentiation. Organizations seek strategic differentiation to achieve a desired reputation, create a defensible competitive advantage, and influence preferential behaviors in the value chain. Tools include positioning strategy, design thinking, and innovation programs.
Revenue growth. Revenue growth reflects the initiatives used to drive new customers, revenues, and market share for the organization. Revenue growth is also known as top line priorities.
Operational efficiency Operational efficiency priorities focus on reducing costs, improving existing performance, and optimizing existing landscapes. Operational efficiency is also know as bottom line priorities.
Regulatory compliance. Regulatory compliance is a base need. Organizations must comply with legal requirements. In addition, organizations may want to avoid legal suits, causing injury, or failing to meet a commitment.
Figure 2. Constellation's Business Hierarchy Of Needs
Source: Constellation Research, Inc.
In the Post 5G Era, Trends Reflect An Asset Heavy Environment Aligned To The Business Hierarchy Of Needs
The push back to 5G investment and rollout has most organizations focused on reinvestment into the distribution network and technology platforms. Constellation estimates that this market will exceed $100 billion in revenues by 2030. Conversations with over 121 telco and CSP leaders highlight the following trends for 2022:
Regulatory compliance
Increasing complexity and volume of regulations. An onslaught of global regulations continue to challenge providers. Leaders see a massive push towards software based solutions, analytics, automation, and AI to address compliance. Greater focus on automation will provide a 10x efficiency for early adopters.
Proactive reduction of risk. Organizations seek to prevent unnecessary risks, reduce data entry errors, and proactively identify and prioritize potential risks. Risk management moves from reactive to proactive. Software and digital strategies provide the scale required to mitigate risk.
Heightened awareness of cybersecurity threats. As attack surfaces increase and multiply, leaders must take intelligent approaches to both assessing and addressing threats. Full back up and disaster recovery along with new security techniques ensure that critical infrastructure is protected. The move to the cloud will off load some issues to cloud providers.
Operational efficiency
Greater investments in predictive asset management. In the drive for greater operational efficiency, a push for predictive asset management enables the optimized utilization of highly expensive capital investments. Leaders must move from sweating assets to improving execution capacity. AI will play a greater role in improving deployment of capital.
Convergence of asset performance management (APM) and field service management (FSM). Organizations must bring together their APM systems with their field service to achieve exponential gains to drive efficiency. Linking APM with FSM together enables better up-stream and down-stream sensing as well as greater visibility into the lifecycle of an asset.
Revenue growth
Delivery of subscription models. Customers expect providers to deliver on new subscription models. They expect to remove themselves from the shackles of ownership and move towards freedom and flexibility with usership. Granularity of services, quality of service (QoS), and ease of purchase drive subscription strategy.
Focus on post sales revenue. The shift from equipment based revenue to services based revenue has arrived. Installation, support, and warranty revenues are now aligned with equipment sales and experience based services. Organizations must identify, create, and deliver new offerings in shorter and shorter life cycles.
Strategic Differentiation
Using IOT to improved experiences. The connected world via internet of things (IOT), provides more opportunities to use data to deliver on improved experiences. By providing contextual relevance, telcos and CSPs can understand existing usage patterns, anticipate future needs, and improve each interaction.
Delivering on digital transformation. Every organization must move beyond digital channels to delivering on new business models and monetization models. This requires a rethink of partner ecosystems and investment into adjacent startups. Organizations must also support the cultural change required by addressing needs for dynamic skills and continuous learning environments.
Brand
Alignment with ESGs. Activists continue to shame corporations who have not taken a stance on environmental, social, and governance requirements. Leaders must determine their positions on each of these goals.
Purpose driven brand. As leaders align their brand with authentic actions, the transmedia story-telling to support authentic actions increases in importance. Every brand is now a media company and every brand is responsible for their community. Top brands will activate movements.
The Bottom Line: Use The Business Hierarchy Of Needs For Business Prioritization
As with Maslow's framework for motivation, the business adaptation delivers a framework for all c-level execs to:
Align projects and priorities using the five categories in the framework
Budget resources, funding, and investments in a portfolio management model by type of business need
Craft a strategy and portfolio mix based on business models and business need
Develop a methodology to include in overall corporate strategy
Evaluate with regular frequency for opportunities to improve
My book, "Everybody Wants to Rule the World," starts here with DDDNs and ends with winning in the age of the new monopoly. Available for pre-order now
Your POV
Are you a telecom, media, entertainment, or tech company seeing this convergence? Are you ready for the big trends in 2022? Now's the time to prepare!
Add your comments to the blog or reach me via email: R (at) ConstellationR (dot) com or R (at) SoftwareInsider (dot) org. Please let us know if you need help with your AI and Digital Business transformation efforts. Here’s how we can assist:
Developing your digital business strategy
Connecting with other pioneers
Sharing best practices
Vendor selection
Implementation partner selection
Providing contract negotiations and software licensing support
Demystifying software licensing
Reprints can be purchased through Constellation Research, Inc. To request official reprints in PDF format, please contact Sales.
Disclosures
Although we work closely with many mega software vendors, we want you to trust us. For the full disclosure policy,stay tuned for the full client list on the Constellation Research website. * Not responsible for any factual errors or omissions. However, happy to correct any errors upon email receipt.
Constellation Research recommends that readers consult a stock professional for their investment guidance. Investors should understand the potential conflicts of interest analysts might face. Constellation does not underwrite or own the securities of the companies the analysts cover. Analysts themselves sometimes own stocks in the companies they cover—either directly or indirectly, such as through employee stock-purchase pools in which they and their colleagues participate. As a general matter, investors should not rely solely on an analyst’s recommendation when deciding whether to buy, hold, or sell a stock. Instead, they should also do their own research—such as reading the prospectus for new companies or for public companies, the quarterly and annual reports filed with the SEC—to confirm whether a particular investment is appropriate for them in light of their individual financial circumstances.
Copyright © 2001 – 2021 R Wang and Insider Associates, LLC All rights reserved.
Contact the Sales team to purchase this report on a a la carte basis or join the Constellation Executive Network
Analyst Blog
Planful Predict portfolio starts with signal detection and forecasts aimed at improving financial and operational planning, but there’s more to come.
Financial and operational planning is all about preparing for future outcomes. The better you can see into the future, the better prepared you will be to proactively respond to whatever comes your way.
Analyst Blog
Big Idea: Compete on Data Supremacy rwang0 Wed, 06/09/2021 - 07:43
DDDN's Are The Heart Of Data Supremacy
Here’s what I mean, because data is the foundation and first priority of every Data-Driven Digital Network (DDDN) that wants to grow, you have to understand how the data is shared, monetized, and controlled–so identifying the biggest pools of quality data and how that data is consumed is essential.
Data supremacy isn’t so much about having the most data in quantity but having the most qualitative, well-curated, high context data. If you can learn how the data interacts with each other and pick up on the patterns that arise from these interactions, you’re set up for success.
These insights come from their “interactions” among all the data produced and captured. Successful DDDNs are masters at identifying the patterns that emerge from these interactions. These patterns lead to “precision decisions,” from how much to charge for a product to what product should be recommended to which customers.
My book, "Everybody Wants to Rule the World," starts here with DDDNs and ends with winning in the age of the new monopoly. Available for pre-order now: https://amzn.to/3uR9Q9I
Your POV
Ready to compete on data supremacy? Do you see how to build Data Driven Digital Networks (DDDN)?
Add your comments to the blog or reach me via email: R (at) ConstellationR (dot) com or R (at) SoftwareInsider (dot) org. Please let us know if you need help with your AI and Digital Business transformation efforts. Here’s how we can assist:
Developing your digital business strategy
Connecting with other pioneers
Sharing best practices
Vendor selection
Implementation partner selection
Providing contract negotiations and software licensing support
Demystifying software licensing
Reprints can be purchased through Constellation Research, Inc. To request official reprints in PDF format, please contact Sales.
Disclosures
Although we work closely with many mega software vendors, we want you to trust us. For the full disclosure policy,stay tuned for the full client list on the Constellation Research website. * Not responsible for any factual errors or omissions. However, happy to correct any errors upon email receipt.
Constellation Research recommends that readers consult a stock professional for their investment guidance. Investors should understand the potential conflicts of interest analysts might face. Constellation does not underwrite or own the securities of the companies the analysts cover. Analysts themselves sometimes own stocks in the companies they cover—either directly or indirectly, such as through employee stock-purchase pools in which they and their colleagues participate. As a general matter, investors should not rely solely on an analyst’s recommendation when deciding whether to buy, hold, or sell a stock. Instead, they should also do their own research—such as reading the prospectus for new companies or for public companies, the quarterly and annual reports filed with the SEC—to confirm whether a particular investment is appropriate for them in light of their individual financial circumstances.
Copyright © 2001 – 2021 R Wang and Insider Associates, LLC All rights reserved.
Contact the Sales team to purchase this report on a a la carte basis or join the Constellation Executive Network
Analyst Blog
Building the AI-First Enterprise: Product Innovation, Venture Insights & Marketing Trust | DisrupTV Ep. 238
In DisrupTV Episode 238, hosts R "Ray" Wang and Vala Afshar are joined by:
Video
Premium Research
Executive Summary
Premium Research
Executive Summary
This report provides an overview of how Unit4’s platform powers the Unit4 enterprise resource planning (ERP) offerings. Unit4 has gone through a substantial platform investment that was started a few years ago and recently concluded under new CEO Mike Ettling.
Advising on AI Sec Dev Ops, Observability, and Enterprise SoftwareSILICON VALLEY, Calif. – June 1, 2021 –Constellation Research announced the appointment of Andy Thurai as vice president and principal analyst to research and advise clients on enterprise software, AI, ML, IT infrastructure and cloud readiness among organizations and c-suite executives. The appointment of Thurai reinforces Constellation’s ongoing commitment to providing strategic guidance with practical understanding in industries impacted by digital disruption.
Press Release
Marketing—or more specifically the act of designing, developing, and deploying engagements to foster (profitable) relationships—is hard work.
The role of marketing is clearly defined in titles, job descriptions, and organizational charts. The act of marketing, however, can spread across any number of departments and functions and, in reality, can be executed by anyone.
Analyst Blog
Self-Service is a given. The next big wave in BI and analytics is about making insights actionable within the context of day-to-day work.Ten years ago, many organizations were drowning in data; today many organizations are drowning in insights.
Analyst Blog
Partnering for Progress: Strategic Alliances, Enterprise Insight & Digital Leadership | DisrupTV Ep. 237
In this compelling episode of DisrupTV, hosts R "Ray" Wang and Vala Afshar are joined by:
Video
ConstellationTV is here to bring you the latest in what is disruptive and reshaping business and technology. In every episode, you’ll hear from our fellow analysts, from leaders across our network of business transformation experts and influencers, as well as from cutting edge vendors.
Video
Big Idea: Decision Velocity rwang0 Wed, 05/19/2021 - 07:16
Guess what Alexander the Great's success on the battlefield is often credited to?
SPEED of decision-making or decision velocity.
Most of his opponents had bureaucratic decision architectures, where minor decisions would travel up multiple levels of command before traveling back down to be executed. Compared to Alexander the Great's decentralized command structure enabled by trust, his troops beat their enemies by simply "out-decisioning" them.
I think you know where I'm going here...
Any organization that can make decisions twice as fast or one hundred times faster than its competitors will decimate them. Time is a friend to those who can make faster, more accurate decisions. While the human brain may take minutes to decide, and it takes hours for a decision to work through an internal organizational structure, machines and artificial intelligence engines can make a decision in milliseconds in the digital world.
Whoever masters these automated decisions at high velocity will have an exponential advantage over those who don't.
Pre-order here: https://amzn.to/3utStwF
Get the latest book Everybody Wants To Rule The World
Your POV
Will you make faster decisions or be held back by existing structures? Ready to build decision velocity?
Add your comments to the blog or reach me via email: R (at) ConstellationR (dot) com or R (at) SoftwareInsider (dot) org. Please let us know if you need help with your AI and Digital Business transformation efforts. Here’s how we can assist:
Developing your digital business strategy
Connecting with other pioneers
Sharing best practices
Vendor selection
Implementation partner selection
Providing contract negotiations and software licensing support
Demystifying software licensing
Reprints can be purchased through Constellation Research, Inc. To request official reprints in PDF format, please contact Sales.
Disclosures
Although we work closely with many mega software vendors, we want you to trust us. For the full disclosure policy,stay tuned for the full client list on the Constellation Research website. * Not responsible for any factual errors or omissions. However, happy to correct any errors upon email receipt.
Constellation Research recommends that readers consult a stock professional for their investment guidance. Investors should understand the potential conflicts of interest analysts might face. Constellation does not underwrite or own the securities of the companies the analysts cover. Analysts themselves sometimes own stocks in the companies they cover—either directly or indirectly, such as through employee stock-purchase pools in which they and their colleagues participate. As a general matter, investors should not rely solely on an analyst’s recommendation when deciding whether to buy, hold, or sell a stock. Instead, they should also do their own research—such as reading the prospectus for new companies or for public companies, the quarterly and annual reports filed with the SEC—to confirm whether a particular investment is appropriate for them in light of their individual financial circumstances.
Copyright © 2001 – 2021 R Wang and Insider Associates, LLC All rights reserved.
Contact the Sales team to purchase this report on a a la carte basis or join the Constellation Executive Network
Analyst Blog
Design, Disruption & Digital Equity: Learning from Education, Community, and Innovation | DisrupTV Ep. 236
In Episode 236 of DisrupTV, hosts R “Ray” Wang and Vala Afshar sit down with three transformative leaders:
Video
Big Idea: Consortiums Often Fail, But Joint Venture Startups Will Challenge Digital Giants rwang0 Wed, 05/12/2021 - 06:41
Learn From The Failures Of Consortiums
Consortiums of independent companies have a high failure rate, despite their potential power.
@Constellation Research studied the history of 100 consortiums, shared services models, trading networks, and open source communities. All attempted to bring together companies for their self-interest, yet 99% of these coalitions failed!
They suffered from underfunding, too much focus on cost-cutting, and governance by consensus, making it hard to take decisive action.
Our research suggests that joint venture startups from established organizations challenging new digital monopolies have a much better chance of focusing on growth instead of cost savings.
They also need a strong mission and purpose, such as dethroning a common enemy, building cross-industry value chain dominance, and innovating data-driven insights. And while independent firms are reluctant to give up power to a benevolent dictator governance model, my book, Everybody Wants to Rule the World, shows why they need to take a chance on putting the head of the coalition in the driver’s seat.
Get the latest book Everybody Wants To Rule The World
Your POV
What type of joint venture startup will you create? Will you organize a common enemy? Will you build a joint venture across value chains? What's your strategy?
Add your comments to the blog or reach me via email: R (at) ConstellationR (dot) com or R (at) SoftwareInsider (dot) org. Please let us know if you need help with your AI and Digital Business transformation efforts. Here’s how we can assist:
Developing your digital business strategy
Connecting with other pioneers
Sharing best practices
Vendor selection
Implementation partner selection
Providing contract negotiations and software licensing support
Demystifying software licensing
Reprints can be purchased through Constellation Research, Inc. To request official reprints in PDF format, please contact Sales.
Disclosures
Although we work closely with many mega software vendors, we want you to trust us. For the full disclosure policy,stay tuned for the full client list on the Constellation Research website. * Not responsible for any factual errors or omissions. However, happy to correct any errors upon email receipt.
Constellation Research recommends that readers consult a stock professional for their investment guidance. Investors should understand the potential conflicts of interest analysts might face. Constellation does not underwrite or own the securities of the companies the analysts cover. Analysts themselves sometimes own stocks in the companies they cover—either directly or indirectly, such as through employee stock-purchase pools in which they and their colleagues participate. As a general matter, investors should not rely solely on an analyst’s recommendation when deciding whether to buy, hold, or sell a stock. Instead, they should also do their own research—such as reading the prospectus for new companies or for public companies, the quarterly and annual reports filed with the SEC—to confirm whether a particular investment is appropriate for them in light of their individual financial circumstances.
Copyright © 2001 – 2021 R Wang and Insider Associates, LLC All rights reserved.
Contact the Sales team to purchase this report on a a la carte basis or join the Constellation Executive Network
Analyst Blog
Premium Research
Executive Summary
News Analysis: Amazon Sidewalk Ups The Battle For Last Inch Connectivity rwang0 Mon, 05/10/2021 - 09:55
Key Features Extend Last Inch Network
On Friday May 7th, 2021, Amazon announced a series of updates to Amazon Sidewalk. Sidewalk delivers last mile connectivity via a network bridge protocol on Amazon's smart home devices. The Sidewalk Bridge devices such as Echo products and Ring Floodlight Cams use a 900 MHz band and Bluetooth Low Energy (BLE), to extend WiFi networks . The partnership with Tile announced in the Fall of 2020 can connect with any Bridge device to deliver not only the last mile, but the last inch inside community wide networks build on these Bridge devices.
Sidewalk Bridges
Amazon Echo Dot (3rd generation and newer)
Amazon Echo Dot with Clock (3rd generation and newer)
Amazon Echo Plus (1st generation and newer)
Amazon Echo Show (1st generation and newer)
Amazon Echo Show 5 (2019)
Amazon Echo Show 8 (2019)
Amazon Echo Show 10 (2020)
Amazon Echo Spot (2017)
Amazon Echo Studio (2018)
Ring Floodlight Cam (2019)
Ring Spotlight Cam Wired (2019)
Sidewalk devices
Tile
Ring Car Alarm
New Announcements Extend Devices And Reach
The Amazon Sidewalk neighborhood network gained three new features:
Tile joins Sidewalk to help customers find lost items. Users can find items tagged by Tile via Alexa. Echo devices will extend the coverage area to find Tiles bluetooth tagged objects.
Level partners with Sidewalk to control smart locks. The range of Amazon Sidewalk makes it easier for any smart device in connected homes. Level lock connects directly to Ring Video Doorbell Pro devices.
Carebound improves quality of life. Careband is helping dementia pateints with wearable technology that can provide indoor and outdoor activity racking. Help buttons and automated analysis of activity patterns provide 24/7 monitoring. With Amazon Sidewalk, no mobile devices are needed.
Sidewalk supports compatible Echo devices on June 8th. Echo devices can extend the reach of Sidewalk. Amazon has provided smart privacy provisions. Shared data is protected with three levels of encryption. Users decide which devices have access. Data is automaticaly deleted every 24 hours.
Amazon's product boss Dave Limp has been quoted in multiple media outlets stating, "Sidewalk is all about the next billion things that are going to get on the network". Amazon's attacking the gap between where celluar ends and where home WiFi begins. Amazon's Sidewalk network will being support for Tile Bluetooth trackers on June 14th.
The Bottom Line: The Battle Of Last Inch Connectivity Is Here
From Starlink to Comcast and Verizon, delivering on the last mile has been a goal. Reaching the last inch has come with Apple AirTags with Bluetooth tracker and Amazon Sidewalk with Tile. As tech giants double down on neighborhood and micro mesh connectivity, expect more partnerships and innovations. Amazon has smarlty enabled many of its Echo devices and all of its Ring devices to extend these networks providing mesh coverage and keeping its devices sticky and deliver more value added digital services. This latest battle for the last inch will result in only a handful of players, creating the next opportunity for connected services.
Get the latest book Everybody Wants To Rule The World
Your POV
Will you go with Amazon Sidewalk and Tile or will you stick with Apple and AirTags? Ready for the battle for last inch connectivity?
Add your comments to the blog or reach me via email: R (at) ConstellationR (dot) com or R (at) SoftwareInsider (dot) org. Please let us know if you need help with your AI and Digital Business transformation efforts. Here’s how we can assist:
Developing your digital business strategy
Connecting with other pioneers
Sharing best practices
Vendor selection
Implementation partner selection
Providing contract negotiations and software licensing support
Demystifying software licensing
Reprints can be purchased through Constellation Research, Inc. To request official reprints in PDF format, please contact Sales.
Disclosures
Although we work closely with many mega software vendors, we want you to trust us. For the full disclosure policy,stay tuned for the full client list on the Constellation Research website. * Not responsible for any factual errors or omissions. However, happy to correct any errors upon email receipt.
Constellation Research recommends that readers consult a stock professional for their investment guidance. Investors should understand the potential conflicts of interest analysts might face. Constellation does not underwrite or own the securities of the companies the analysts cover. Analysts themselves sometimes own stocks in the companies they cover—either directly or indirectly, such as through employee stock-purchase pools in which they and their colleagues participate. As a general matter, investors should not rely solely on an analyst’s recommendation when deciding whether to buy, hold, or sell a stock. Instead, they should also do their own research—such as reading the prospectus for new companies or for public companies, the quarterly and annual reports filed with the SEC—to confirm whether a particular investment is appropriate for them in light of their individual financial circumstances.
Copyright © 2001 – 2021 R Wang and Insider Associates, LLC All rights reserved.
Contact the Sales team to purchase this report on a a la carte basis or join the Constellation Executive Network
Analyst Blog
Monday's Musings: Extereme EBIDTA or Rapid Growth? rwang0 Mon, 05/10/2021 - 07:17
Think and Act Like A Digital Giant
No matter how big your company, you’ll need to convince your shareholders or private investors to keep financing your long-term strategy for market dominance, even when the short-term gets rough.
This won’t be easy, but it can be done if you craft the right message for your investors.
We’re starting to see signs of a mindset shift among institutional investors, who are seeking more of a balance between profit and growth instead of demanding extreme EBITDA from incumbents and superfast growth from startups.
One key is to maintain at least some level of short-term profit while investing in your business for the long term. That will reassure investors that you’re not on a doomsday financial path, like WeWork or Snapchat.
Examples of successful companies that I break down in my book, “Everybody Wants to Rule the World,” include @DenaliTherapeutics and @TaurRX, which are financed by sovereign wealth funds in longer-term investment horizons. These funds open up networks and come with deep pockets. Other examples include @MukeshAmbani at @RelianceJio who bet big on digitization in India with highly competitive WiFi and mobile access rates.
#everybodywantstoruletheworld #extremecapitalism #digitalgiants #capitalism #digitalage #investors
Analyst Blog
Monday's Musings: Crypto FOMO and Bitcoin's Rise Into the $1 Trillion Club rwang0 Sat, 05/08/2021 - 10:39
Crypto FOMO Drives Capital Flows Out Of Big Tech (For Now)
Retail investors have taken money out of the equity market and rotated into crypto to catch the wave. With all crypto's now worth more than $2 Trillion in market cap and Bitcoin standing out at $1 trillion, this poses a risk to the US dollar dominance as the reserve currency.
Bitcoin ($57,000), $1T market cap
Ethereum ($3,491), $404 B market cap
Binance Coin ($643.74), $98 B market cap
Dogecoin ($.597), $77 B market cap
XRP ($1.67), $75 B market cap
Tether (.9999) $53 B market cap
Cardano ($1.63) $52 B market cap
The current rush into crypto and NFT's creates a casino atmosphere and "gold" rush into the next big thing. Only a few crypto assets will survive in the long run. Bitcoin's finite limit of 21 million coins, Ethereum's role in commerce, and Cardano seem to have the best prospects. Expect this trend to continue into the summer and taper off as the reopen rotation gains traction.
The Bottom Line: Don't Count Big Tech Out
The first quarter of 2021 showed how the digital giants continued to grow at break neck paces. While stock prices reflect a reopen rotation and crypto FOMO trend, few asset classes can show this type of year over year performance. Don't count big tech out. Big tech should remain a key component in portfolios. However, not all big tech stocks are created equal. Only the digital giants will continue to create competitive moats, invest in innovation, and play the long term game of global domination.
For the year:
Google up 30%
AirBnB up 22.68%
Oracle up 17.42%
IBM up 13.93%
SAP up 11.16%
Buying big tech stocks on the dip have often boded well for the long term investor. Tesla, Apple, and Amazon are currently under performing for the year but have long term upside and most likely may be undervalued in the past week. Take note, Honeywell's entry into the NASDAQ reflects how the company's portfolio is geared for more growth with Quantum Computing and Connected Buildings.
Get the latest book Everybody Wants To Rule The World
Your POV
Are you in the repoen rotation or the crypto FOMO? What are you investing in next? Ready to find the next set of digital giants?
Add your comments to the blog or reach me via email: R (at) ConstellationR (dot) com or R (at) SoftwareInsider (dot) org. Please let us know if you need help with your AI and Digital Business transformation efforts. Here’s how we can assist:
Developing your digital business strategy
Connecting with other pioneers
Sharing best practices
Vendor selection
Implementation partner selection
Providing contract negotiations and software licensing support
Demystifying software licensing
Reprints can be purchased through Constellation Research, Inc. To request official reprints in PDF format, please contact Sales.
Disclosures
Although we work closely with many mega software vendors, we want you to trust us. For the full disclosure policy,stay tuned for the full client list on the Constellation Research website. * Not responsible for any factual errors or omissions. However, happy to correct any errors upon email receipt.
Constellation Research recommends that readers consult a stock professional for their investment guidance. Investors should understand the potential conflicts of interest analysts might face. Constellation does not underwrite or own the securities of the companies the analysts cover. Analysts themselves sometimes own stocks in the companies they cover—either directly or indirectly, such as through employee stock-purchase pools in which they and their colleagues participate. As a general matter, investors should not rely solely on an analyst’s recommendation when deciding whether to buy, hold, or sell a stock. Instead, they should also do their own research—such as reading the prospectus for new companies or for public companies, the quarterly and annual reports filed with the SEC—to confirm whether a particular investment is appropriate for them in light of their individual financial circumstances.
Copyright © 2001 – 2021 R Wang and Insider Associates, LLC All rights reserved.
Contact the Sales team to purchase this report on a a la carte basis or join the Constellation Executive Network
Analyst Blog
Big Idea: Prioritize Long Term Invesmtent Mindset Over Short Term Profits
If legacy companies want to compete with data giants in the age of extreme capitalism, spending capital on innovation needs to STOP being sacrificed for short-term profits.
In 2005, a survey by the Duke Fuqua business school showed that 55% of CFO's at 400 of America's largest public companies would rather sacrifice their firm's economic value to meet a quarterly expectation. Sadly, not much has changed since then.
Don't believe me? Look no further than the airline industry post-COVID-19.
Take American Airlines, which filed for bankruptcy in 2011 but became profitable again by 2014. During six years of record profits, the airline still failed to put together a rainy-day fund for a crisis. It also failed to modernize its technology systems, aircraft, and operating procedures to improve digital channels, enhance analytics, and develop better planning capabilities. Instead, it spent $12 billion of its positive cash flow since 2014 in stock buybacks. American isn't alone, either. Most airlines spent 97% of their free cash flow on buybacks from 2010 to 2020.
Get the latest book Everybody Wants To Rule The World
Your POV
Does your organization take the long view or prioritize short term profits? Are you reinvesting enough into innovation? Add your comments to the blog or reach me via email: R (at) ConstellationR (dot) com or R (at) SoftwareInsider (dot) org. Please let us know if you need help with your AI and Digital Business transformation efforts. Here’s how we can assist:
Developing your digital business strategy
Connecting with other pioneers
Sharing best practices
Vendor selection
Implementation partner selection
Providing contract negotiations and software licensing support
Demystifying software licensing
Reprints can be purchased through Constellation Research, Inc. To request official reprints in PDF format, please contact Sales.
Disclosures
Although we work closely with many mega software vendors, we want you to trust us. For the full disclosure policy,stay tuned for the full client list on the Constellation Research website. * Not responsible for any factual errors or omissions. However, happy to correct any errors upon email receipt.
Constellation Research recommends that readers consult a stock professional for their investment guidance. Investors should understand the potential conflicts of interest analysts might face. Constellation does not underwrite or own the securities of the companies the analysts cover. Analysts themselves sometimes own stocks in the companies they cover—either directly or indirectly, such as through employee stock-purchase pools in which they and their colleagues participate. As a general matter, investors should not rely solely on an analyst’s recommendation when deciding whether to buy, hold, or sell a stock. Instead, they should also do their own research—such as reading the prospectus for new companies or for public companies, the quarterly and annual reports filed with the SEC—to confirm whether a particular investment is appropriate for them in light of their individual financial circumstances.
Copyright © 2001 – 2021 R Wang and Insider Associates, LLC All rights reserved.
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Analyst Blog
When Carl von Clausewitz penned On War in 1873, I seriously doubt he had marketing in mind, but in his articulation of the “fog of war” he proves that he gets us.
War is the realm of uncertainty; three-quarters of the factors on which action in war is based are wrapped in a fog of greater or lesser uncertainty. A sensitive and discriminating judgement is called for; a skilled intelligence to scent out the truth.
Now…go back and replace “War” with “Marketing.” I’ll wait here.
Analyst Blog
The Future of Work: Digital Transformation, Human-Centric Leadership & Customer Experience | DisrupTV Ep. 235
In this episode of DisrupTV, hosts R “Ray” Wang and Vala Afshar engage with three thought leaders:
Video