At the center of this continuing wave of innovation is the technology industry, and in particular a set of U.S.-based supercompetitors we call the “Big Five”: Alphabet (Google), Amazon, Apple, Facebook, and Microsoft. Already dominant in their own fields — high-end devices, digital content distribution and app stores, online search and advertising, social media, e-commerce, cloud services, and productivity software — they are actively branching out into new businesses. And they have substantial advantages in doing so: positive network effects inherent in their hyper-scale platform businesses, formidable innovation capabilities, and massive financial muscle.
And yet the Big Five have competition. Many other technology players are making strong efforts to recover (if they have fallen behind) and to build sustainable businesses. These are exemplified by the “Next 20”: the largest U.S.-based technology companies after the Big Five, based on enterprise value: Adobe, Analog Devices, Applied Materials, Broadcom, Cisco Systems, Dell Technologies, Hewlett Packard Enterprise, HP Inc., IBM, Intel, Intuit, Micron, Nvidia, Oracle, Qualcomm, Salesforce.com, Symantec, Texas Instruments, VMware, and Western Digital. Each in its own way is shifting from pure hardware to software-defined hardware and from products to services, managed services, and solutions.