Bell’s Law disrupting business and an investment opportunity

This decade is the next cycle of Bell’s Law & Software eats Hardware. Companies are being disrupted or working to disrupt. The next cycle of wealth creation and creative destruction is unfolding right in front of eyes and although the most obvious is often unseen.

From Wikipedia
“Bell’s law of computer classes formulated by Gordon Bell in 1972 describes how types of computing systems (referred to as computer classes) form, evolve and may eventually die out. New classes create new applications resulting in new markets and new industries.

Roughly every decade a new, lower priced computer class forms based on a new programming platform, network, and interface resulting in new usage and the establishment of a new industry.

This is era of a new computer class. The Networked Sensors that need Mathematical & Statistical Computing (GPUs+CPUs, http://www.nvidia.com/object/what-is-gpu-computing.html) and algorithms that commoditize Analytics form data via HUMINT into business models that drive lower Cash Conversion Cycles, higher Stock Turns and GMROI.

Wherever CAPEX is now OPEX (cloud computing), it’s a utility business and the economics have been around for a long time. The first cloud business model was the in 1889 with the first electric power transmission line in North America operated at 4000V.  http://en.wikipedia.org/wiki/History_of_electric_power_transmission

This era of computer classes is commoditizing data collection via software algorithms and HUMINT to disrupt existing markets and create new ones. There is no exception. Every industry is being disrupted from Agriculture and Healthcare to Aerospace & Defense & Finance.  Sample news clips below reflect the rapid changing landscape.

Screen Shot 2013-11-25 at 2.59.52 PM        Screen Shot 2013-11-25 at 3.00.29 PM

Screen Shot 2013-11-25 at 11.28.41 AM Screen Shot 2013-11-25 at 11.29.39 AM Screen Shot 2013-11-25 at 11.30.15 AM Screen Shot 2013-11-25 at 11.32.50 AM Screen Shot 2013-11-25 at 11.33.12 AM Screen Shot 2013-11-25 at 11.33.19 AM Screen Shot 2013-11-25 at 11.33.47 AM Screen Shot 2013-11-25 at 11.34.03 AM Screen Shot 2013-11-25 at 11.34.21 AM



This is a great investment and startup opportunity that is already live.



There are a whole list of opportunities that are being looked at by investors, boards, executives, labs and entrepreneurs alike.  So businesses that are not in this cycle of Bell’s law are ripe for disruption and being disrupted. I have made a sample list for a round table coffee and it’s very exiting the scale of the opportunity.    Software eats Hardware and companies that leverage the cycle of Bell’s Law will generate the highest ROI, IRR and ROE, till the next cycle kicks in.


2 replies »

  1. Beyond the Break-Fix Model: Predictive Services to Leverage GE’s Record $229 Billion Backloghttp://www.gereports.com/beyond-the-break-fix-model/

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s