The document discusses four technologies that have experienced declining prices in recent years: 3D printing services, network security equipment, online file storage, and data recovery services. It notes that the price declines are due to factors like increased competition, technological advances, and falling production costs. The document recommends that businesses consider integrating these more affordable technologies into their operations to help reduce costs and increase efficiency.

1. WWW.IBISWORLD.COM March 2016 1
Slam Dunk Purchases
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Slam Dunk Purchases: 4
Technologies to Implement
While Prices Are in Decline
By Andrew Krabeepetcharat
March 2016
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, IBISWorld has identified 4 of the
tech-related products and services that
have experienced 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
(RD) 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.
The prices of certain technological products and services have
decreased, making now an ideal time to purchase
Businesses
can integrate
these cheaper
technologies
into their
operations to
help reduce
overall costs and
boost efficiency
%
Year
Percentage of Services Conducted Online
SOURCE: WWW.IBISWORLD.COM
6
7
8
9
10
11
12
20181614121008

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Slam Dunk Purchases
Network Security
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.
Tech Products and Services with Declining Prices in 2016
Market Price Change
3D Printing and Rapid Prototyping Services -3.80%
Network Security Equipment -2.20%
Online File Storage Services -11.70%
Data Recovery Services -0.70%
SOURCE: WWW.IBISWORLD.COM

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Slam Dunk Purchases
Data Recovery
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.
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Contact:
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Media Coordinator,
Procurement Research
IBISWorld
Phone: 1-310-866-5033
ashleym@ibisworld.com
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