The coronavirus isn’t just shaking up the medical and travel industries, it’s affecting the technology industry. According to Abacus News, servers across China are crashing because so many are using programs and apps while they are confined to their home. Streaming, gaming, work and school apps are being stressed to the limits as people quarantine themselves while still trying to maintain their routine.
A bull or bear market?
Although server capacity is being taxed and isn’t keeping up with demand, this isn’t necessarily a bad thing. With schools being closed, the online education sector is seeing an uptick, which should translate into significant year-end growth that will expand the market. Online business apps should also see growth. The industry is already crowded, but the coronavirus is showing the gaps in the market. tech companies can see where the holes exist and can now put their money where the needs are.
The coronavirus is burdening food delivery services. Economics 101 – the laws of supply and demand will force those companies to add workers to meet demand. That leads to growth. Online entertainment is showing a boom from the coronavirus quarantine. Live venues and cinemas are closed, pushing movies and entertainers to make online debuts and performances. Homebound users may discover new favorites that they may not come across during average internet use.
Will the market sustain growth?
This sudden boom will certainly help the bottom line in 2020, but the real question is whether the growth will be sustainable? What happens when the coronavirus is no longer a threat? Once the virus is contained, when workers and students go back to offline meetings and classes, what happens then?
The United States needs to pay attention to what’s happening in other parts of the world. Although the CDC reports that the “immediate health risk from COVID-19 is considered low,” the situation could change. The pressing question is how will the United States deal with a potential quarantine? If millions of Americans are forced to stay home, can the internet infrastructure keep up with demand?