Monopoly Power in the Computer Industry Essay Example | Topics and Well Written Essays - 750 words

Monopoly Power in the Computer Industry - Essay ExampleIn a slack antitrust environment, Watson swiftly weeded out virtually all of IBMs once many electromechanical equipment rivals. To its huge credit, IBM and Tom Watson Jr. managed to retain this near-monopoly position through the long shift to completely electronic computing, creating the mainframe colossus of the 1960s and 1970s. Since then, monopoly power has been progressively and unavoidably dissipating. First arrived minicomputers, where IBM could never get more than a third of the business. Then, certainly came the PC and IBMs crucial decision to essentially pass its power on to Microsoft and Intel and, much less directly, to Cisco. As great as the power of these three companies is today, its still certified to a few relatively narrow industry segments that account for only a tiny share of total industry revenue. Further, even the joint globular power of the three giants is instantaneouslyhere near what IBM alone enjoyed in its halcyon days. Understandably, the computer business has become more competitive over time. But now the Internet has come up to finish off the job. Already, the emergence of non-PC devices and the invariably problematic plug-compatible chip competition have helped confine Intel. Now, the accelerating shift from packaged parcel to Web services promises to restrain Microsofts once uncontrolled ambitions. Finally, the shift from in-house corporate networks to public carrier services will inescapably undo Ciscos still-iron grip on the data-communications-equipment industry. All three companies should continue to flourish tremendously, but their power has already begun to fade.People frequently ask who the next Microsoft or Intel will be. The simple answer is No one. Although there will certainly be many huge new Internet companies, there probably wont be any major new monopolists.