Computing will be diffused with distributed memory and processing. Three critical ingredients of all information businesses will be information storage (memory), processing, and software-based manipulation (see Figure 4). These capabilities will become widely diffused, utilized by each of three highly computerized information industries: content, devices, and networks. Because the transformation will result in three industries (not five), it will enhance operating efficiencies in the process.

Figure 4. The New Computer Industry

Thus, the computer industry as we know it today will no longer exist. Rather than downstreaming into products, the computer industry will go further upstream to focus on creating superior raw materials. The two raw materials—components (both memory and processing) and software—will be distributed through miniaturization and electronic networks. These capabilities will get diffused to the point that traditional stand-alone computers will be unnecessary; however, many new services will certainly emerge (see Figure 5).

Figure 5. Possible New Services