- Tags : Technology
By: ProcurementIQ Analyst, Andrew Krabeepetcharat
Intense competition and innovation among technology manufacturers and vendors has caused prices for many tech products and services to fall. First, increased competition from low cost imports has driven technology prices down. Additionally, developments in technology have made manufacturing cheaper and more efficient overall. Using its proprietary Procurement Data Wizard tool, ProcurementIQ has identified 4 of the tech-related products and services that have experienced price decline. Businesses can integrate these cheaper technologies into their operations to help reduce overall costs and boost efficiency.
3D Printing Services
3D printing and rapid prototyping services have increased in popularity within the aerospace, architecture, dental, biomedical, automotive and apparel industries. Specifically, demand for 3D printing services has grown quickly during the three years to 2016 due to the time savings this service offers businesses. In fact, prototypes used during the research and development (R&D) process can be printed within a matter of hours, whereas the traditional method of prototyping takes several weeks and requires the development of molds or the use of sculptors. Furthermore, 3D printing serves as a relatively inexpensive way for buyers to make multiple prototypes with slight variations by simply adjusting the 3D model in the design software.
Despite demand growth, however, the price of 3D printing and rapid prototyping services is expected to fall 3.8% in 2016 due to fast-growing competition from both domestic and foreign suppliers as well as technological innovation that has made the production of 3D printers substantially less expensive. Falling prices for these services give businesses a way to create prototypes and models without having to invest in a 3D printer.
Network security equipment is used to prevent data theft on computer networks. Suppliers provide businesses with e-mail and web security, security management and secure access control options. Network security equipment is particularly important to businesses that exchange a high volume of sensitive data over the internet or between networks.
In the wake of high publicity network breaches of companies such as Ashley Madison and Anthem in 2015, businesses have become increasingly wary of network vulnerabilities. The compromise of client information can greatly tarnish reputation of a business and lead to substantial financial losses and lawsuits. Buyers that exchange the majority of their information over the internet should invest heavily in network security equipment to ensure that their customers are protected when inputting their private information on the business’ site.
In 2016, the price of network security equipment is expected to fall 2.2% due to falling input costs for suppliers. Specifically, the falling price of electronic components and circuits has reduced operating costs for suppliers, giving them more incentive to reduce prices. Furthermore, increasing competition from Chinese exports has applied downward pressure to equipment prices due to their lower wage requirements and ready access to all upstream suppliers. Despite declining price trends, buyers are advised to purchase network security equipment as soon as possible, before any network security breaches occur.
Online File Storage
Online file storage services allow buyers to archive digital files on remote servers, eliminating the need to purchase their own servers. All types of businesses can use online file storage services to improve efficiency and reduce physical document storage. Furthermore, users can easily scale their amount of storage by purchasing larger plans. In addition, online file storage services allow users to access their data from any location with an internet connection, allowing for greater work efficiency.
In 2016, the price of online file storage services is expected to decline 11.7% due largely to a high level of competition among service providers. Vendors have been entering the market quickly as cloud-based computing has become increasingly popular thanks to major players like Apple, Amazon, Google and Dropbox. Furthermore, technological innovation has made the provision of data processing and storage much less expensive. With rapidly declining prices, buyers need not enter into long term-agreements with service providers to achieve savings. Furthermore, high market competition allows buyers to easily switch from one service provider to another. Therefore, 2016 is a great year for businesses to move to the cloud; prices will only keep falling and competition will continue to grow.
Data recovery services allow businesses to salvage data that cannot be accessed from damaged, failed, corrupted or otherwise inaccessible storage media. These services can also aid in the recovery of data that has been deleted. Businesses of all types benefit from data recovery services when important data has been compromised. Data recovery services are particularly important for buyers that hold clients’ private information, as the loss of this data can greatly tarnish the reputation of the buyer’s business.
In 2016, the price of data recovery services is expected to fall 0.7% because competition from substitutes has reduced the need for data recovery services. For example, data backup software and services have become increasingly popular, making data loss much less common. As a result, data recovery service prices have declined, giving buyers a better price point at which to purchase.
Investing in Tech
Technological integration has become increasingly crucial for businesses to maintain maximum efficiency. Although purchasing new technology can be a large investment, long-term savings can often outweigh the up-front costs. Moreover, as a result of declining prices, buyers need not rush into long-term purchase agreements for these products and services. However, purchasing sooner than later can lead to lower costs overall, improved efficiency and higher customer satisfaction.