Can you name this one?

In this issue we covered some of the emerging technologies that would alter the landscape of the technology industry in the next year or so. The behavior of companies that lead such areas is interesting. Mostly, they can be found on the steep upward slope of growth and reach the peak of inflated expectations, as Gartner's hype curve calls it.

Here's one such company. This US-based products company grew 50% in revenue in the third quarter, compared to same quarter last year. The company's fiscal year revenue guidance has been raised to $500-$530 mn. The growth driver is a new product. As per Gartner's recent report, end user combined spending on this product is expected to increase 43% year-over-year in 2013 and 62% year-over-year in 2014. Worldwide shipments of these products priced less than $100,000 are expected to double in 2015, from the current year's estimate of 56,507 units.

This company caters to three most important market segments identified. Industrial units have an average price of $75,000 and consumer units have a price range in the region of $1,000 to $3,000, as per information from vendors. However, unit prices for products would continue to fall. All vendors have to invest heavily in R&D to sustain growth and the marketing environment is intensely competitive. Further, the product is highly disruptive; it holds the power to disrupt manufacturing in a big way. The market is already highly competitive with at least four other vendors who have similar growth rates and competitive positions. Share prices of these companies are soaring. Interestingly, in 2014, the segment would see the entry of a large company, HP, with a line-up of products across all market categories. There are even rumors of IBM acquiring one of these companies.

The entry of HP or IBM could alter the current dynamics of the industry, analysts say. Moreover, there would be a spate of buyouts of smaller companies by the larger ones.

High growth rates, intense competition, soaring valuations, heightened interest by large companies, vibrant prospects for acquisitions­­-all these are characteristics of a new piece of technology waiting to go mainstream.

Any guesses on the company and the market segment? Do write in to me at ednair@cybermedia.co.in

(Hint: The segment is one of the emerging technologies we covered in this issue)