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The technology industry provides the basis for chip production, information and communication systems, and computer systems. These companies serve as the developers and manufacturers of the products which drive the increasing efficiency and production of cell phones, computers, televisions, as well as other communication and information systems. It is a large industry with a vast growth potential, but it is also subject to sometimes volatile cycles, such as in the semiconductor industry. As chips continue to get smaller and globalization increases, demand for faster, more efficient technology in new and old places, will help drive the tech industry.
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Computer SystemsThe computer hardware manufacturing industry includes the production of desktops, laptops, servers, storage, processors and other computer related products. IBM and Sun operate more in the diversified computer systems industry which includes Information Technology (IT). IT is the computer based system of managing information from various sources of a company or institution. IT collects this information and stores or displays it in a practical and effective way so that companies or institutions can fully understand different streams of data.
The Need for Collaboration: Companies such as Microsoft (MSFT), Cisco Systems (CSCO), and EMC (EMC) have stressed the need for collaboration in order to successfully shift to new market trends. Consumers are demanding fast, reliable, and compatible communication and IT systmes between companies and the only way to do that is to, in some capacity, work alongside competitors. The effectiveness of these tech companies working together could greatly determine how well they adapt to the change in market trends and the future of technology.
Growth ofChina: Many of the tech companies are expanding into China in order to capture this growing market. Dell (DELL) made a deal with Gome Group, China's largest electronics retailer, to sell Dell computers in its stores. Sun Microsystems (JAVA) has seen substantial gain from its postitions in China, making it Sun's second largest Asian market. China is a huge market and many of the tech companies are trying to build a presence in this market.
Networking & Communication EquipmentCommunication systems provide voice, data, and video communication solutions and services to companies, organizations, and governments. These are the companies that provide the networking products (i.e. routers, gateways, switches) and communication equipment (i.e. fiber optics, copper cables).
Computer SoftwareSoftware companies like Oracle help provide system software, middleware software, and also application software.
MemoryThe two main memory types are DRAM and flash (or NAND). DRAM provides memory storage and retrieval for mainly PCs, but specialty DRAM is also used in mobile phones, servers, and computer peripherals. Flash memory allows data to be stored over a long period of time even after the power has been turned off. The compact form of flash memory makes it very useful for mobile phones, digital cameras, USB drives, MP3 players, and other digital products.



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