CPA Practice Advisor

DEC 2012

Today's Technology for Tomorrow's Firm.

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THE BLEEDING EDGE protecting data. Any data that can be shared will be shared with people we don't choose to share it with. New systems are beginning to emerge, but they are too complicated for the average consumer to easily use. Tat means that if we have any hope of securing sensitive data, it will require a new strategy. Or more than one. By 2013, we will begin to see that take shape. I TECHNOLOGY COSTS WILL SOAR. Te tech sector is one of the few areas that seem impervious to the ravages of recession. Sure, many parts of society get left behind. But the upscale, urban early adopters will con- tinue to buy as long as they have a pay- check, and that drives the sales of technology tools and toys. But the down side to this is that everything becomes more expensive. Entertainment companies will con- tinue to push "anywhere, everywhere" viewing, at increasingly higher costs. Data caps will try to push cell phone data bills higher to offset losses in voice revenues. Cable and satellite compa- nies will push to generate higher rev- enues per subscriber. Prediction: we will see total tech costs rise by up to 10 percent due to new taxes and efforts to maintain revenue growth for tech companies. J PC GAMING WILL MAKE A COME- BACK. Gaming consoles have been all the rage for the past decade, because they delivered a superior gaming experience and graphics. But the batle for device space in the living room has caused consoles to move into PC territory, offering streaming video and Internet access. At the same time, PC- based "media centers" have become more prominent as part of the living room entertainment mix. Te arena in which PCs do not have superiority today is gaming. Look for PC soſtware manufacturers to pushing harder in gaming to take on competition from the consoles. K APP STORES WILL BECOME A THING OF THE PAST. Once Apple proved that it could stock iTunes with superior products and get a superior price, the market exploded with app stores. Virtu- ally every company built castle walls and moats around their content, trying to achieve Apple's levels of profit- ability. It did not happen. Instead, many companies found that by making their content proprietary they were simply driving customers toward…well, Apple and its products. Look for companies to dismantle their own app stores, instead rallying around a central store for which they can atain some shared revenue. Sounds like a good deal for Google, or Amazon.com. For an expanded version of this article, with more insight, visit www.CPAPracticeAdvisor.com/10826369. For more information, please visit cpapracticeadvisor.com/10028044 December 2012 t www.CPAPracticeAdvisor.com 15 PC Gaming will make a comeback App Stores will become a thing of the past Technology costs will soar

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