What’s next for office tech as Americans return to work

Fueled by increased demand for its notebooks from the current stay-at-home environment, tech giant Dell’s (DELL) Q1 earnings topped expectations, while video conferencing software like (ZM) and Cisco’s (CSCO) WebEx have also seen a dramatic increase due to the COVID-19 pandemic. However, principal analyst of Futurum Research Daniel Newman joined Yahoo Finance to discuss what’s next for Dell and other tech companies as the nation starts to return to work following the pandemic.   

“Will companies be buying data center equipment? Are they going to be putting storage back in their data centers? Are they going to look to do everything in the cloud? And so companies like Dell are really going to be the types of companies we’re going to have to watch and say, is big tech big iron going to make a comeback in the next few quarters?” he said. 

“And the fact that Dell held up so well, even their infrastructure numbers weren’t bad is an indicator that people are still spending and it has a promising future.”

View over businesslady shoulder seated at workplace desk look at computer screen where collage of many diverse people involved at video conference negotiations activity, modern app tech usage concept

When asked what the future might hold for Zoom, Newman thinks demand for video conferencing will take a dip, but not a dramatic one. 

“I think we will find that some of the work, some of the meetings that we felt we had to fly in for … we won’t have to anymore. I think people realize, turn on the camera, we can do this. We don’t have to always get together live. But I also think there’s a pent up demand for in-person. So I think Microsoft (MSFT) Teams, Zoom, Cisco’s WebEx, they will all continue to see a boom and an uptick as businesses have become and comfortable using these technologies,” he said.

“But if I had to make a prediction, I think over time we will see it settle somewhere in between. It’s not going to be all Zoom. I think all of us miss having dinner with our clients or you know, traveling to a conference and getting to see a speaker live or even some of the social get-togethers. So I think it’s a nice fit. But I think over time I think we’ll see a little bit of a pullback and we’ll find more balance.”

Reggie Wade is a writer for Yahoo Finance. Follow him on Twitter at @ReggieWade.

Read more:

Follow Yahoo Finance on Twitter, Facebook, Instagram, FlipboardLinkedIn, and reddit.

Source Article