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Information Technology

Primary Products

The information technology industry can be divided into six broad sectors: hardware, software, content (entertainment and information), services, infrastructure, and business objectives.

Hardware

Hardware firms produce every piece of equipment used to build a computer system. This includes the equipment inside a computer, such as memory chips, microprocessors, network cards, and motherboards. It also includes the equipment mostly found outside the computer, called peripheral hardware, such as keyboards, monitors, printers, external hard drives, scanners, and digital cameras.

Internal hardware makes the difference between a slow, hard-to-use computer and cutting-edge technology. Memory chips store data and programs, while processors follow program instructions to manipulate the data in a desired manner. For example, when a secretary uses a word processor to type letters, the microprocessor transforms the keyboard input into electrical impulses that are stored on the memory chips. Many companies specialize in improving the speed, accuracy, and overall quality of these devices.

Secondary storage devices, such as flash drives and external hard drives, are used to store information and transfer it physically to another computer location. Hard drives hold a tremendous amount of information.

Input devices are another type of hardware and include keyboards, scanners, and video cameras. Scanners read printed material (such as photographs) and convert it into electrical impulses to be stored in the computer. Then, systems operators can change them in any way desired. They can also use them to prepare formal presentations in different media, including video or PowerPoint presentations.

Output devices, such as a monitor or screen, allow users to access and change data and information. Some television manufacturers specialize in making monitors with higher resolution and better graphics capabilities so that more complex applications can be run and displayed successfully on the systems. Another output device is a printer. Dot matrix printers of the early 1980s soon gave way to ink jet printers, bubble jet printers, laser printers, and now 3D printers. Most printers for PCs are now capable of printing in color or black and white, and many function as scanners, copiers, and fax machines, as well. Many printers have wireless capabilities so they can work with multiple devices on a shared network.

Communications devices, such as modems, enable computers to connect to other systems via cables or telephone lines. The modem allows the transfer of information between computers. Wireless broadband allows fast access to data on the Internet via a home or business Wi-Fi system or a wireless data signal for mobile devices. Internet service providers provide access to the Web via high-speed cable or DSL connections and, in rare cases, through dial-up phone connections. In 2021, 77 percent of Americans who used the Internet had a broadband connection, according to the Pew Research Center, up from 42 percent in April 2006.

Software

Software design and programming are vital roles in the computer industry. Without detailed, precise programs, computers would be useless since they only do exactly what they are told to do. Several programs are necessary to make computers operate properly. Common types of software include:

  • operating systems (Windows, Android, IOS, macOS, Linux)
  • word processors (Word, Google Docs, Pages)
  • spreadsheets (Excel, Sheets, Numbers)
  • presentation software (PowerPoint)
  • database management systems (Access, Oracle, HANA)
  • photo and video editing (Photoshop, PaintShop, GIMP)
  • games (Legend of Zelda, Super Mario, Fortnite, Call of Duty)
  • desktop publishing (InDesign, QuarkXPress)
  • computer-aided design software (AutoCAD, DesignCAD, SolidWorks)
  • e-mail clients (Outlook, Google)
  • Web browsers (Microsoft Edge, Internet Explorer, Chrome, Firefox, Safari, Opera)
  • security (Norton, McAfee, Bitdefender, Malwarebytest)
  • virtual/augmented/mixed reality (Sony, Facebook, Google, HTC)
  • cloud computing (Microsoft, Amazon, IBM, Google, Oracle, Salesforce.com, SAP)

Content

The content sector consists of information and entertainment that is accessed mainly via the Internet (through desktop computers, smartphones, tablet computers, and other devices), but also through CD-ROMs and other external storage devices. Such content includes text (blogs, social media sites, online and downloadable books and magazines, news sites, etc.), video (YouTube, Netflix, Amazon Prime, Disney+, etc.), audio (Apple Music, Qobuz, Spotify, Tidal, etc.), animation, images, video games, and paid advertising. Some Web sites provide many or all of these types of content. Today, the amount and variety of content available on the Internet is awe inspiring, and many people are willing to purchase access to stream or download digital content. Common Internet services include e-commerce sites (offered by both brick and mortar companies such as Wal-Mart and online-only firms), as well as online education, e-mail, maps and directions, product review, social media, and video-conferencing sites, among many others. In 2021, 93 percent of U.S. adults used the Internet, according to the Pew Research Center. Only 52 percent of Americans were online in 2000.

Services

Information technology services that fall under this category include systems design, software support, system integration (e.g., merging an old e-commerce system with a new one), computer and data processing facilities management, troubleshooting and repair of faulty software and hardware, user support to employees and customers, the design of proprietary computer systems and software, and securing company systems and sensitive data against hackers and industrial espionage.

Infrastructure and Business Objectives

The infrastructure sector consists of the hardware and software (including databases, networks, and payment-processing systems) that are used to build and operate the Internet, telecommunications networks, and cloud data centers (on-premise hardware that houses cloud services and cloud-based resources and stores data within an organization’s local network). The related business objectives sector consists of hardware and software that help businesses sell goods and services online, manufacture and deliver products, and oversee various facilities and departments. It also relates to the software that employees of a business or organization use to communicate within company Intranets, as well as collaborate on the cloud.

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