What are the different type of Technology Companies


The technology field is vast and there are different types of technology companies providing different services and products.  As this is a blog aimed for the beginners, we will not cover all the types or go into the details of particular types, but provide a broad overview.

Technology companies can be broadly categorized based on their business objective or key offering:

1. Software Companies: Companies that build and sell software.  We will describe these in more details in the following section.

2. Software Integration / Software Services Companies:  Companies that perform implementation, support and development services for the software built by other Software companies.   This is described in more detail in the following sections.

3. Hyperscalers:   These are the big cloud infrastructure companies that provide infrastructure to host the software bought by an organization.  As a very simple example, when you purchase a license to Adobe Acrobat or Microsoft Office, you need a laptop where you can install the software.  Similarly large organizations have huge infrastructure needs – e.g. they need databases, servers etc. to host their applications.  Hyperscalers provide these infrastructure – where they don’t have to maintain these hardware components such as Database servers etc. on their own.  Hyperscalers provide this infrastructure on cloud.  The big hyperscalers are – Amazon Web Services, Microsoft Azure, Google Cloud Platform, Alibaba Cloud Platform etc.

There are several other types of Technology companies such as Value Added Resellers, Managed Services Providers, Consulting services, Cyber security providers etc. which we are not covering in detail in this article.

What is a Software Company: A software company is any organization engaged in building and selling software products which help the customers to improve their business or personal lives.  Here are some examples:

• Personal Software: Microsoft Word Document or Excel that you use in your daily lives is an example of personal software.  Microsoft (company) has created this software and sells the licenses for usage of this software to its direct customers.  Word and excel help you create documents, store information and help you work faster.  

• Small Business Software: These are software that help small and medium size businesses run more efficiently.  They help businesses in record keeping, order management and accounting.  Tally is one such software that small businesses use to maintain their accounts.  Expensify is another example of a software which is used to store receipts and record expenses for a business.

• Large Business Software: Very large organizations in different sectors have their own unique requirements.  Consumer goods companies such as Coca Cola, Oil and Gas companies such as Shell, Retail companies such as Walmart , Auto companies such as Suzuki need complex and robust software to keep their business running flawlessly.  These software are used for all the processes such as Order Management, Accounting, preparing financial management, purchasing and managing inventory etc. SAP, Oracle, Microsoft Dynamics, Workday, Salesforce.com are the world’s leading software that form the backbone of the IT organization in such companies.
Increasingly we are seeing that Software companies are providing their application hosted in cloud model called Software as A Service.  Salesforce.com, Oracle Fusion , SAP Public Cloud are such examples.

The world’s largest technology companies are called ‘Big Tech’.  The following companies are classified as Big Tech:
1. Apple
2. Alphabet
3. Amazon
4. Meta 
5      Microsoft

Software services company or System Integrators:  These are companies which provide services on Software products sold in the market by different organizations.  Large software vendors such as SAP , Oracle sell their products to large customers.  However, unlike installing a Word license on a laptop, installing, using and supporting a complex software such SAP and Oracle require specially trained resources.   Now companies like Pepsi, Levi’s and Shell are not in the business of implementation of software.  They hire Software Services companies known as System Integrators to implement, maintain and support the software they have purchased.   Thus System Integrators are companies who are providing IT services to other organization in maintaining and supporting their IT applications.  There are various types of such system integrators.Two major types of System Integrators are as follows:

1. End to End Business consulting and transformation:  These are world’s largest business and IT consulting firms such as Accenture, Deloitte, Ernst and Young etc. that provide consultancy to Fortune 500 companies to improve their processes and provide advisory on best practices in the industry to improve an organizations profit, sales and reduce costs.   Indian firms such as Infosys, TCS, Wipro are also giving competition to these big consulting firms

2. IT implementation, Support and Development Firms:  These are the companies that focus on technical software implementation and support.  India is a big market for such firms which has developed these skill sets at scale and is able to cater to international demand of different skillsets
The different articles on this blog site we will cover the business functions in an organization that provides system integration services to other businesses.  It will help the readers understand how the business of such System Integrators is conducted and what makes them successful.

Disclaimer:

The information provided in this article is intended for educational purposes only and is designed to offer a broad overview of technology companies and their services. While we strive for accuracy, this article does not cover all aspects of the technology field or delve into specific types of companies in detail. Readers should be aware that the landscape of technology is constantly evolving, and the examples given may not reflect the most current trends or developments.

This article is aimed at beginners and is not intended as professional advice. Readers should conduct their own research and seek guidance from industry professionals when making decisions related to technology services or products. The authors and publishers of this blog accept no responsibility for any actions taken based on the content of this article.

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