Silicon Valley’s position as tech innovation center faces challenge

by CXOtoday Staff    Jun 28, 2012

According to a survey by KPMG, technology executives worldwide believe that China and the US will be at the forefront, with Cloud enabling both the next indispensable consumer technology and business transformation for enterprises. Mobile technologies will continue to build on Cloud, providing the tech breakthrough that will transform businesses.

“The pace of technology innovations today is happening at unparalleled speed and China’s projected rapid rise to prominence as a technology leader would be another example of this,” said Gary Matuszak, partner, global chair and US leader for KPMG’s Technology, Media and Telecommunications practice. “China’s anticipated parity with the US tech sector shows the significant challenge facing the US to retain its position as an innovation leader. Other countries will continue taking steps to boost technology innovation and to attract tech entrepreneurs.”

These survey findings also demonstrate that China’s innovation investment has fostered an environment for the development of disruptive technologies that is growing by leaps and bounds. The Chinese Government is encouraging significant investment in three key areas – (1) shared services and outsourcing, (2) payments and cloud computing. The 12th Five-Year Plan is also driving innovation in these critical areas, in order to create a nationwide virtual environment.

30 percent of the survey respondents globally said Cloud Software as a Service (SaaS) will enable the next indispensable consumer technology. In regard to driving business transformation, 22 percent said Cloud Infrastructure as a Service, followed closely by SaaS, will have the greatest impact. In the US, SaaS was the top selection in consumer and enterprise technologies.

It is clear that technology leaders in countries where technology innovation is thriving believe that the Cloud represents a technology tidal shift. They are placing a huge bet on Cloud, as it has multiple capabilities and benefits for providers and users such as generating revenue, improving operational efficiency, reducing costs and time to market, and enabling other disruptive technologies such as mobile and social applications.

Mobile technologies also are seen as a significant beneficiary of Cloud, as almost 30 percent of global respondents expect that the next tech breakthrough in four years resulting in the greatest business transformation will come from smartphones, tablets and other mobile technologies.