Servicing the IOT (3/11/2015)
This post was contributed by a representative of Montgomery Investment Management Pty Limited (AFSL No. 354564). The principal purpose of this post is to provide factual information and not provide financial product advice. Additionally, the information provided is not intended to provide any recommendation or opinion about any financial product. Any commentary and statements of opinion however may contain general advice only that is prepared without taking into account your personal objectives, financial circumstances or needs. Because of this, before acting on any of the information provided, you should always consider its appropriateness in light of your personal objectives, financial circumstances and needs and should consider seeking independent advice from a financial advisor if necessary before making any decisions. This post specifically excludes personal advice.
INVEST WITH MONTGOMERY
Stephen
:
Russell,
I came across a report on the McKinsey and Company website this evening titled ‘Preparing IT systems and organizations for the Internet of Things’.
The article is a fascinating read but one particular statistic caught my eye:
“Currently, there are more than nine billion connected devices around the world, including smartphones and computers, and that number is expected to at least triple over the next ten years.”
When I thought of the implications of what I had just read and considered it in the context of the overall article, I was compelled to go back and read some articles on Altium.
The market that Altium operates in and their goals for future leadership in PCB design and development sees them in an industry with almost unlimited expansion of the next 20 years. Assuming of course that they can maintain their reputation for excellence in product development and sales, as well as sound business management, the upside for this company is bright.
Putting Altium aside for one moment, the article does provide an interesting insight into the future of electronics and anyone taking the time to source the article and read it will be provided with some interesting ideas on where investment dollars may be placed in to the future.
Russell Muldoon
:
Hi Stephen, thanks for pointing out the article. Im going to grab a coffee and read with interest. Sounds like its along the same lines as our thinking – this is a market that will grow strongly in the years ahead, providing a structural tailwind to those that service it.
One important point with the growth, is that it will come not only existing players, but many, many other startups. Think of the hundreds, if not thousands on new engineers required to design / produce all of that product to meet that estimated 3 fold increase.
Our research currently suggests that there’s really only one player in the PCB Software market capable of capturing the majority of those startups, given more existing players focus on servicing the ‘big-end’ of town.
No prize for guessing who that might be. Thanks for the insights!