Economies around the world are being hit hard by the current crisis, however some sectors within the tech and telecoms industries may see gains from the current pandemic. Here are 5 areas that are likely to come out on top.
1. Cloud Computing
This doesn’t really come as any surprise as cloud computing has been on the rise for years. However, as more employees find themselves working from home, more workloads and information will need to be stored on the cloud, rather than office servers.
In fact, for many cloud companies the current pandemic is forcing both individuals and organisations through a quick digital transformation on to the cloud.
Giants like Amazon Web Services, Microsoft Azure and Google Cloud are the obvious beneficiaries as market leaders, though for companies like Oracle, who might be working with more old-school industries that have so far resisted the digital, it might be necessary to have new conversations about the capabilities of the workforce from home.
Once these businesses have begun their journey towards a cloud-based business and environment, it is highly unlikely they will go back. This could well be a catalyst for accelerating the already rapidly advancing cloud.
2. Electronic payments
Companies like Visa, Mastercard and AMEX are now taking advantage of the fact that physical cash transactions are becoming a thing of the past. The COVID-19 pandemic is likely to be a catalyst for this. There are many shops that are now only taking digital payments, however, as the number of transactions decrease, revenue will as well. Despite this, the pandemic could force more customers into adopting digital payments. and like the above, once the pandemic is over, it is unlikely they or the digital financial world, will revert.
Cash is perhaps becoming a thing of the past however, the older generation are still keen to resist the use of digital currency. Let’s take cheque-books as an example, they took years to fall out of common usage and both banks and shops were obliged to accept them when such a payment was offered. This could also be true for physical cash, as long as individuals wish to use it, it would still persist. However, their refusal to accept payments in the current crisis could be the start of a more rapid advancement to digital transactions, once the pandemic is over.
3. Streaming, gaming and video content platforms
Due to most schools being closed, parents will need to occupy children and adults also need to be entertained as, pubs, bars, restaurants and concerts are all closed. Netflix is already popular but now more people are home at night, it is likely to become more so. In fact, all streaming platforms could benefit. Disney+ has just launched so this is an ideal time to attract the attention of consumers.
In terms of video platforms outside of streaming, YouTube is also enjoying success. Not only are there people trying to entertain themselves, but there is also millions of hours of information (some much more accurate than others) on the pandemic itself.
With the usual entertainment venues shut down, consumers will need to be entertained. The likes of Microsoft Xbox, Google Stadia and PlayStation are also likely securing additional subscriptions as well as in-game purchases.
4. Online grocery delivery
With the rush on supermarkets persisting as the days turn into weeks, online grocery delivery companies are seeing a huge rise in popularity.
Online shopping delivery service Ocado suspended its website last week, telling customers demand exceeded its capacity to deliver. The firm has said it would fulfil its orders and will reopen again soon, placing rations on certain food items. The share price for Ocado has surged this month, though it declined once it announced it would temporarily stop taking orders.
5. The telecommunications industry
The telecommunications industry is becoming increasingly vital in today’s society – although its value (in recent months) has been recognized more. Consumers have expected the internet to work without appreciating the importance of the telecommunications industry.
Thanks to the number of people attempting to entertain themselves, work from home or access educational resources, the telecoms industry has been pushed further into the limelight. Authorities are putting measures in place to protect these valuable assets, not only to ensure consumers are able to continue their daily lives but to ensure emergency services can continue to function, or research labs can collaborate to create a vaccine.
The telco industry underpins the success of almost every element and facet of society, and now the networks are under pressure, everyone realises it.