Technology is becoming a necessity
Generating new revenue streams
The mobile phone, the computer and social networking have become an extension of ordinary life and companies providing these
products are reaping the rewards.
Fresh industries have grown around creating applications for mobile communications and gaming, green technology is meeting the
drive for renewable sources of energy whilst the internet is creating new online media and advertising models.
Perfectly suited to a cost-conscious world
As governments and companies seek to lower costs technology can offer streamlined workflows, production line efficiencies, faster
payment systems, teleconferencing and remote hosting of software, profitably providing cost-cutting solutions.
Technology companies have reinvented themselves
Since the technology sector experienced its major crisis more than a decade ago with the bursting of the tech bubble, it has
transformed itself into a sector with companies that can boast strong recurrent revenues and healthy balance sheets
Valuations are inexpensive
Unlike the dotcom era, technology companies are no longer priced at inflated valuations. The aggregate price/earnings multiple for
technology companies globally is 13.7, only slightly higher than the broader global market average of 12.5, despite the sector’s strong
*Source: Datastream global index series.