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The drive for increased corporate efficiency and profitability has driven the
need for innovation in incumbent technology applications such as software,
hardware, communications equipment and semiconductors. Large private equity
firms have provided important investment capital for improving existing
technology platforms while venture capital is providing a vital funding platform
for new emerging technologies including nanotechnologies, robotics, biochips,
photonic computing and identity management solutions. Here are just a few of the
technology sectors attracting private equity and venture capital investment:
The emergence of 3G (third generation) wireless devices has arrived as network
providers are completing 3G high-speed networks, offering enhanced viewing
experiences for consumers. In addition to richer content and higher speed, 3G
devices offer easier to use applications, slimmer, sleeker designs and better
pricing, appealing to a much wider consumer base. The emergence of Apple’s new
iPhone or Cingular’s “BlackJack” (Samsung), exemplifies the convergence of
multiple applications such as telephony, e-mail, text messaging, video
conferencing, music, mapping, Internet and GPS services rolled onto a single
delivery platform at prices within the consumer’s reach.
Nanotechnology is impacting several industry segments including semiconductors,
consumer goods, fuel cells and biotechnology. Strict dimensional control
tolerances employed by nanoelectronics have resulted in processors with millions
and even billions of transistors that deliver high performance computing.
Intel’s dual-core Itanium processor (1.7 billion transistors) and IBM’s Cell
chip (240 million transistors) employed in PlayStation®3 are maintaining the
legacy of Moore’s Law. Nanocomposites provide a scratch-resistant, light-weight
and rustproof surface, reducing weight and increasing durability. Nanoparticles
are being employed in surface fibers on clothing to create stain resistance.
Software advances continue to evolve to meet new challenges. Targeting the next
generation of computer users, free on-line software including word processors,
spreadsheet programs and other tools are emerging and challenging existing
“out-of-the-box” applications. Security issues associated with privacy including
identity, data integrity and web browsing will continue to play a pivotal role
in the improvement of existing programs. New monitoring software programs
provide basic system performance, hardware metrics, distributed enterprise
applications integrity, while ensuring website performance across a network.
SaaS, or software as a service, is again one of the most significant trends in
the enterprise software space. SaaS is the delivery of an application to an
enterprise over the Internet. The application resides on the software vendor’s
servers and customers pay to use it, usually on a monthly, per-user basis. The
application delivery is focused on providing a single solution to multiple
users, versus a custom solution for each enterprise. Companies such as
Salesforce.com (customer relationship management) and Webex (collaborative
software) have been very successful with this revenue/delivery model and have
caused many incumbents to re-examine the traditional licensing model.
Virtualization is not new but it’s a technology which is attracting significant
press and attention from IT departments. Virtualization is software that allows
more efficient use of computer resources (the CPU, RAM, and hard disk) by
allowing multiple operating systems and multiple applications to run on the same
computer, at the same time. Servers have traditionally been dedicated to running
a single operating system and application, often leading to underutilization.
Virtualization breaks this log jam of inefficiency creating better server
utilization rates and reduced power usage.
VRC serves clients across numerous technology sectors including semiconductors,
software, Internet, data storage, and wireless communications. Core services
include financial opinions with respect to valuation, fairness, solvency, and
capital adequacy, and valuations for financial reporting, equity compensation,
intangibles valuation, restructuring, and tax purposes, as well as litigation
support.
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