Encyclopedia of Computer Science and Technology

108 computer industrypackages serve scientific, manufacturing, and businessneeds. While the general public is unaware of such programs,they make up much of the strength of the softwareindustry.Other Products and ServicesBy the 2000s there were many new niches in the computerindustry landscape. Powerful dedicated game machinessuch as the Microsoft Xbox 360 and the Sony PlayStation3 make for a vigorous software industry that potentiallygoes beyond games (see game consoles). Portable mediaplayers such as Apple’s iPod are ubiquitous (see music andvideo players, digital). The personal digital assistant (seepda) and the cell phone have largely merged and morphed(see smartphone), capable of running a variety of softwareincluding e-mail, Web browsing, games, and music.Meanwhile, digital cameras have virtually replaced film forall but the most high-end and specialized applications (seephotography, digital). The convergence and proliferationof all of these devices is continuing at a rapid pace, andcompetition is fierce.The services sector of the computer industry lacks thevisibility of new hardware products, but provides mostof the industry’s employment and much of its economicimpact. In addition to the hundreds of thousands of programmerswho provide business-related, consumer, andspecialized software, there are the legions of help deskemployees, computer and network technicians, creators ofsoftware development tools, writers of technical books andtraining products, industry investment analysts, reporters,and many others whose livelihood depends on the computerindustry.International ComputingThe computing industry came of age mainly in the UnitedStates. By the 1960s IBM had extended its dominant positionto Britain and Europe despite the efforts of indigenouscompanies and government initiatives. Japan was considerablymore successful in developing a competitive electronicsand computer industry under the long-term guidance ofMITI (Ministry of International Trade and Industry). TheJapanese became dominant in industrial robotics and strongin consumer electronics, including game machines (Sony),digital cameras (Sony and Fujitsu), and laptop computers(Toshiba). They have been less successful in desktop computers,Internet-related technology, and commercial software.China has become an increasingly important playerin the components and peripherals industry. The growingimportance of Asia in the international computer industryis also underscored by the large number of programmers,engineers, and support personnel being trained in India(see globalism and the computer industry).Major Internet industry players such as Google andYahoo! as well as hardware giant Dell have become heavilyinvolved in the Chinese market, which boasted about 100million users in 2006, second only to the United States.A number of initiatives are helping spread computingeven in the limited economies of many countries in Africa,Asia, and Latin America (see developing nations andcomputing). While illicit copying has hindered the marketingof commercial software in many countries, the alternativemodel of open-source software and very inexpensivelaptops (the One Laptop Per Child initiative) may offer aviable path to the true globalization of computing.Emerging TrendsAs the 2000 decade has progressed, a number of trendscontinue to reshape the computer industry. These include:• The recovery from the “bust” years of 2001–3 was followedby more modest but significant growth, withrapid growth in particular sectors such as mobiledevices, Web applications (see Web 2.0), and security.• Desktop PC sales were strong through 2005 (about200 million that year) but now appear to be stagnating(in the United States at least) in favor of laptops,smaller portable computers, and smart phones.• Although a new generation of multicore processorsand the resource-hungry Microsoft WindowsVista operating system may eventually speed up thereplacement of older PCs, businesses have been tendingto keep slightly obsolescent machines and operatingsystems longer.• Free or lower-cost alternative software and operatingsystems (see open source and Linux) are attractingconsiderable publicity, but it is unclear how muchpenetration they will achieve in the mainstream homeand small-business computing sectors.• Besides cost consciousness and other priorities (suchas networking and security), the trend toward Webbasedapplications may be shifting sales away fromhardware and traditional operating systems and softwaresuites. (See application service provider.)• Outsourcing of many IT functions is continuing,including network administration, managed backupand storage, and even security. Meanwhile, there hasbeen concern about lack of sufficient U.S. graduatesin computer science and engineering.While the computer hardware, software, and serviceindustries are likely to continue growing vigorously, theboundaries between sectors and applications are blurring,making it harder to consider the industry as a wholeas opposed to specific sectors and applications (seee-commerce).Further ReadingChandler, Alfred D., Jr. Inventing the Electronic Century: The EpicStory of the Consumer Electronics and Computer Industries.New ed. Cambridge, Mass.: Harvard University Press, 2005.Computer Industry Almanac. Available online. URL: http://www.c-i-a.com/. Accessed June 24, 2007.Computerworld. Available online. URL: http://www.computerworld.com/. Accessed June 24, 2007.Infoworld. Available online. URL: http://www.infoworld.com/.Accessed June 24, 2007.International Data Corporation. Available online. URL: http://www.idc.com/. Accessed June 24, 2007.