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Bell’s Law disrupting business and an investment opportunity

This decade is the next cycle of Bell’s Law & Software eats Hardware. Companies are being disrupted or working to disrupt. The next cycle of wealth creation and creative destruction is unfolding right in front of eyes and although the most obvious is often unseen.

From Wikipedia
“Bell’s law of computer classes formulated by Gordon Bell in 1972 describes how types of computing systems (referred to as computer classes) form, evolve and may eventually die out. New classes create new applications resulting in new markets and new industries.

Roughly every decade a new, lower priced computer class forms based on a new programming platform, network, and interface resulting in new usage and the establishment of a new industry.
http://en.wikipedia.org/wiki/Bell%27s_law_of_computer_classes

This is era of a new computer class. The Networked Sensors that need Mathematical & Statistical Computing (GPUs+CPUs, http://www.nvidia.com/object/what-is-gpu-computing.html) and algorithms that commoditize Analytics form data via HUMINT into business models that drive lower Cash Conversion Cycles, higher Stock Turns and GMROI.

Wherever CAPEX is now OPEX (cloud computing), it’s a utility business and the economics have been around for a long time. The first cloud business model was the in 1889 with the first electric power transmission line in North America operated at 4000V.  http://en.wikipedia.org/wiki/History_of_electric_power_transmission

This era of computer classes is commoditizing data collection via software algorithms and HUMINT to disrupt existing markets and create new ones. There is no exception. Every industry is being disrupted from Agriculture and Healthcare to Aerospace & Defense & Finance.  Sample news clips below reflect the rapid changing landscape.

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This is a great investment and startup opportunity that is already live.

CONSUMERIZATION OF THE “AEROSPACE & DEFENSE” INDUSTRY WILL DOMINATE THIS ERA OF BUSINESS
https://gerardjrego.com/2013/09/17/consumerization-of-the-aerospace-defense-industry-will-dominate-this-era-of-business/

NEXT HEADLINE? GOOGLE ACQUIRES GENERAL MOTORS! SOFTWARE EATS HARDWARE!
https://gerardjrego.com/2013/11/20/next-headline-google-acquires-general-motors-software-eats-hardware/

There are a whole list of opportunities that are being looked at by investors, boards, executives, labs and entrepreneurs alike.  So businesses that are not in this cycle of Bell’s law are ripe for disruption and being disrupted. I have made a sample list for a round table coffee and it’s very exiting the scale of the opportunity.    Software eats Hardware and companies that leverage the cycle of Bell’s Law will generate the highest ROI, IRR and ROE, till the next cycle kicks in.

 

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