Business Trends 2006: A VC’s Perspective
From the VC world comes a view of what business and tech trends will lead the way for successful companies in the coming year.
Cindy Padnos Outlook Ventures
In 2006: Consumers and business users will expect real-time information access. Compliance will be a driver of ROI. Hosted solutions will reduce risk and costs. Advertising dollars will continue to migrate to the Internet. Users will finally accept off-shoring and outsourcing as a standard element in any IT organization’s mix. Broadband is everywhere. Rich Internet applications…. Service-oriented architectures…. Appliance-based solutions…. Identity and fraud management techniques….
These are just a few of the business and technology trends that moved from murky waters onto solid ground last year. While many trends will influence investment opportunities in 2006, we at Outlook Ventures see two key business trends with the potential to impact a variety of technology sectors significantly: small and mid-size business IT buyer growth and consumer-driven content production and distribution. On the technology side, we’re really excited about a few tech trends that will impact opportunities in 2006 and beyond: next-generation social networking and search, mobiliazation of virtually everything, and convergence of technologies and devices.
Next-Generation Search
The search market is moving quickly in managing unstructured content from the desktop to the web. Vendors like Google, Microsoft, X1, and Copernic are designing search engines that will search all document types from the desktop on out through a single user interface. Next-generation front-ends, such as Watson, will monitor user interactions with their systems and proactively “bubble up” contextually relevant search results based on current documents and user activities in real time without the user ever having to write a single query. Specialized search solutions are being developed to optimize a variety of different tasks—from finding the best priced items in virtually any shopping category to retrieving location-specific information from mobile devices. There is no shortage of companies trying to “build a better Google” for markets where a one-size-fits-most approach does not really satisfy users’ needs. It is quite interesting to see this continued innovation in search technologies at the same time that consolidation is taking place amongst the old-line players, such as Autonomy’s recently announced acquisition of Verity.
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