3 Tech Trends to Watch

Rick Summer: As we're wrapping up earnings across the tech landscape, we are noticing a few different things. First of all, as we are looking across valuations, generally things are pretty fairly valued. The pockets of undervaluation are very sparse.

I think first, though, when we look at the general tech landscape, it has lots of heavy investment, not only from old-line firms like Microsoft (MSFT) and Oracle (ORCL) but also new-line firms like Facebook (FB) and Google (GOOG) that are heavily investing and really depressing margins.

I think, secondly, when we look across this [landscape], we look at software over hardware. Software is going to be much faster growing than hardware, roughly double over the next several years.

And I think, lastly, calling out the telecom sector specifically, looking at wireless, we are seeing increasing competitiveness around that, which should ultimately pressure revenue growth and [average revenue per user] across the landscape.