Services Revenue Mix Could Reach 20% By 2020 Photo: @rwang0 On March 25, 2019, Apple held its special event on services at the Steve Jobs Theater in Cupertino, CA to launch and/or revamp 4 key services including: Apple News+. New service adds 300 magazines, the Wall Street Journal and more publications to 875 million iPhone […]

IBM Gains Mojo On Cloud Vision and Shows Strength in Digital Ecosystems Dreaming of warmer pastures in Las Vegas and golf with colleagues, customers, partners, prospects, and employees slogged through the February rain of San Francisco in Moscone Center for the second iteration of IBM Think.  Think 2019 had many highlights beyond the lukewarm “second […]

Globalization 4.0 Attempts To Address Populist Revolt Global leaders gathered in the icy cold confines of Davos Switzerland for the 2019 edition of the World Economic Forum (WEF).  This 49th annual gathering’s theme focuses on Globalization 4.0 in the fourth industrial revolution.  Though most have not encountered the third industrial revolution, let alone the fourth, […]

Apply the Account Categorization Framework to Succeed in Account-Based Strategies An account-based strategy model needs to focus on re-establishing relationships. With a very-well-defined list of business-to-business contacts, the go-to-market strategy requires a disciplined approach to re-engage with customers. Unfortunately, most field organizations are saddled with tech-laden complexity. Constellation Research suggests that clients put human relationships […]

Retail Innovation Continues To Improve As Budgets And Margin Grow Over 40,000 attendees gathered at Jacob Javitz convention center in New York City for the annual big show (see Figure 1.)  The show kicked off with a keynote from BJ’s Wholesale Club Chairman, President, and CEO Chris Baldwin.  Chris conveyed the impact of retail on […]

Awards Recognize Mostly The Pinnacle and A Tinge Of Nadir For Enterprise Tech In 2018, enterprise tech remained fast-paced, innovative, and action-packed.  The Constellation Research team attended over 250 enterprise tech events, handled 1000’s of inquiries and briefings, dealt with 1000’s of media inquiries, and reached 100’s of millions in the social sphere.  With that […]

Big Tech Still Remains Attractive, Especially With The Recent Valuation Downgrade

Markets are still cautious.  Global outlook looks very different than the US outlook.  Actual economy and Wall Street remain disconnected.  Meanwhile, markets are trying to figure out a rational explanation of which one is the leading vs lagging indicator.  

Algo’s have been reset so we’re operating on different rules and they will be reset again.  Why Big Tech?  They play in a winner takes all market.  Apple and Google provide 99% of all the consumer software in the US.  Facebook, Google, and Amazon drive almost 63% of all advertising dollars
Tech is still strong with 20 to 40% growth. Investors will find it hard to find other asset allocation classes this good and this dominant.  

With valuations down, we can see the shift back to big tech in Q1 2019, especially now with depressed valuations. Everyone’s waiting the Q4 holiday numbers before making the plunge. So FAANG plus MIcrosoft, Adobe, Salesforce, ServiceNow, and Tesla are still all hot and Baidu, Alibaba and Tencent drive the China market.

As for the race to 1T in valuation, We’ll see a resurgence in 2019 of one of the FAANG’s plus Microsoft vie for the title. So here’s the run down:

The Future Of The Internet And Human Rights In A Digital Age In an era where some believe privacy is dead and that human rights will be taken over by dystopian AI, the pioneers of the internet are convening on the 70th international human rights day to talk about the future of the internet and […]

Google Cloud Accelerates Movement To Enterprise, Mass Improvements Seen, Much More Required Ahead Arguably the second or third event for the Google Cloud team brought 25,000 prospects, customers, influencers to Moscone Center for Google Next on July 23rd to 27th, 2018.  Customers could see notable improvements in not only the investment made into the event, […]

Enterprise Adoption of Blockchain Nascent For Now, But Rapidly Growing Recent Constellation Research surveys from Q4 2017 show that less than 20% of our market leading and fast follower clients have either acquired and implemented blockchain or undergoing a proof of concept (see Figure 1).  One-third of survey respondents still mull the implications as they […]

Commerce Finally Comes To Adobe On May 21st, 2018, Adobe announced a $1.68 billion acquisition to acquire Magento for commerce capabilities and the developer ecosystem.   When the transaction closes, the Campbell, Ca based company will be part of the Adobe Digital Experience team with Magento’s CEO Mark Lavelle reporting to Adobe’s executive vice president and […]

It’s The Experience, Stupid! Over 18,000 customers, partners, prospects, and influencers gathered at the Sands Convention Center and Expo in Las Vegas for the annual ServiceNow Knowledge Event (see Figure 1).  The vendor best known for its success in IT Service Management has been on a growth tear.  In March 2017, CEO Frank Slootman handed […]