Market Overview

One Big Difference Between New And Old Tech

One Big Difference Between New And Old Tech

Technology has made our lives better, easier and more productive, however, 15 to 20 years ago, the concept of technology was very different. Consider the modern smartphone. It is not only able to keep us in constant contact with the outside world, but it can also direct us when lost, entertain us when bored and even order food when hungry.

Similarly, cloud-based technology is only beginning to gain momentum, as is streaming music and video.

A Look To The Cloud: Organic Development

Microsoft Corporation (NASDAQ: MSFT) sold software for computers, but today, it dabbles in the smartphone sector, operates a cloud-based platform called Azure and has even gone social by acquiring LinkedIn Corp (NYSE: LNKD) for $26.2 billion.

The Microsoft of today isn't the Microsoft of yesterday. In fact, the same can be said for nearly every prominent technology — both new and old.

Related Link: Facebook To Roll Out Messenger Platform Version 1.2

It's not that Microsoft necessarily planned to become a cloud-focused company that also owns a social media network. It's core business was under pressure, and if Microsoft didn't expand into these new ventures, then a small upstart would have. In such a case, Microsoft could have lost out on dominating multi-billion dollar markets.

Which brings us to an interesting finding that compares new technology to old.

New Versus Old: Legacy Vs. Venture

Legacy companies such as Microsoft didn't need to tap venture capitalist backers for financing.

As noted by, inc. (NYSE: CRM) Vala Afshar, Microsoft raised just $1 million from venture capitalists. As time progressed, new-age technology companies have become increasingly dependent on financing.

Another Example

Facebook Inc (NASDAQ: FB) raised nearly $2.5 billion from venture capitalists, partly because it had to since it was creating a new concept form the ground up.

Facebook likely knew if it was unable to raise large amounts of cash, and do so quickly, the concept of modern social media could have just as easily been created by a legacy tech company that by comparison has infinite resources.

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Posted-In: Azure Microsoft Azure Technology Technology Stocks Vala AfsharEducation Tech General Best of Benzinga


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