George Moore answered the question of how long technology lasts in 1965. In fact, his answer became known as Moore’s Law.
“The number of transistors incorporated in a chip will approximately double every 24 months.”—Gordon Moore, Intel co-founder.
Transistors form the circuitry needed to power computer chips. As the number of transistors increases, so does a computer’s processing power. More powerful computers lead to technical advances.
For example, the first Intel chip was released in 1971 with 2,250 transistors and processing capabilities to handle simple single-task instructions in devices such as calculators and cash registers. Fifty years later, the Intel Core i9 -12900K processor operates at 5.2 GHz with over 21.7 billion transistors. Its multi-tasking capabilities can operate resource-intensive technologies such as virtual reality and artificial intelligence.
Based on Moore’s Law, what technology changes should businesses expect to see in the next few years?
Design innovations continue to increase the computing power of microchips. Quantum computing, which removes the physical limitations of transistors, has entered the business world. More efficient programming maximizes the power of personal computers and servers. All of these advances increase the processing power needed for artificial intelligence, the internet of things, and big data. With more power, augmented and virtual reality can become more immersive, and smart devices can take on more functionality.
Powerful microchips enable artificial intelligence(AI) and machine learning (ML) to enter daily life. Robotic floor cleaning devices use machine learning to create a map of a home. Almost 80% of consumers are using AI-powered services, although only 33% think they are. (Source: PEGA)
According to Bloomberg, the AI market is expected to have a compound annual growth rate (CAGR) of almost 40% between 2022 and 2028. North America leads the global market with 43% of the total revenue in 2021. By 2028, the global AI market will be worth almost 425 billion USD.
AI services will multiply in areas such as healthcare, manufacturing, and automotive. Because of improvements in deployment and expanding applications, governments are showing more interest in AI and spending more on technology. In some countries, governments have established standards to enable cross-sector compatibility to increase adoption.
Companies are more comfortable adopting AI in areas such as process automation, customer service, productivity increases, and data analysis. The following statistics illustrate AI’s business applications:
- 50% of online searches used AI-powered voice searches in 2020 (Source: Tech Jury)
- 43% used digital voice assistants because they were faster than typing (Source: Tech Jury)
- 40% of people use voice-assisted searches daily (Source: Tech Jury)
- 89% of companies use chatbots for personalizing customer experiences (Source: Forrester)
- 69% of businesses saw reduced operational costs because of chatbot usage. (Source: Forrester)
AI is considered one of the top trends for businesses in 2022.
Business success depends on quickly adjusting to an ever-changing landscape. That means having the ability to make data-driven decisions in minutes, not hours. Big Data is essential for companies that want the competitive advantage that comes with data analysis. Exactly how big is Big Data?
According to IBM, humans produce 2.5 quintillion bytes or 2.3 trillion gigabytes of data per day. About 90% of the existing data was generated in the last two years. Approximately 100 terabytes of data are stored by most US companies, but 50% of that is unusable in its unstructured format.
In 2020, the top industries using Big Data were:
- Media, Advertising, and Entertainment at 32% (Insights Association)
- Healthcare Products and Services at 31.4% (Insights Association)
Of the remaining 37%, 97.2% plan to invest in Big Data and AI.
Internet of Things (IoT)
The first device connected as an internet of things (IoT) was an automated teller machine (IoT). Granted, ATMs were not connected over a public network, but they were deployed at remote locations and exchanged data over a network. Today, the IoT market has grown to $4.8 billion worldwide. It is expected to reach $1.8 billion by 2028, with a CAGR of 25% from 2021 to 2028.
IoT devices are deployed in residences and healthcare facilities. They have found their way into the construction and energy sectors. The following data highlights how IoT has and will expanded in the last five years.
- Smart homes made up 12.2% of all homes in 2021 (Source: Statista)
- Medical IoT spending is projected to reach $158 billion in 2022 (Source: Deloitte)
- Industrial IoT has become one of the largest market segments with an anticipated size of $106 billion by 2026 (Markets and Markets)
- Construction spend will reach $16.8 billion by 2024 (Markets and Markets)
IoT technology has applications in every market sector, making it a key technology for business growth.
What is the Future of Technology?
Researchers attempt to predict upcoming technology trends year after year. Some predictions are accurate; others miss the mark. The truth is no one has a crystal ball, but one thing is certain. Technology advances ultimately come down to power. How much power can fit into a laptop or a mainframe? How costly is the power to drive remote devices or process gigabytes of data?
Power over Ethernet (PoE) technology provides a cost-effective alternative to traditional AC power sources. Using existing Ethernet cables, PoE can drive devices at a lower cost with enhanced efficiency. The technology provides flexibility because it is not constrained by wires. Large and small businesses do not have to weigh the cost of running new wires against the benefit of the device location.
No matter what the future, technology will need cost-effective ways to power them. Companies will need energy-efficient solutions to reduce energy consumption and conserve natural resources. Upgrading to PoE lets a single cable provide both power and data transmission, positioning an enterprise to be ready for coming changes.
Versa Technology has over 25 years of experience in providing businesses with industry-leading products that keep pace with technological advances. Why not contact us to discuss how to prepare for whatever the future of technology holds?