The name information technology was first used in 1958, in an article in Harvard Business Review and since then this sector has only seen innovations over the course of history. Some problems that the industry is facing are increasing competition from offshore and coastal operators, slow growth in hardware sales, decreasing IT spending globally, etc. But despite all the problems and challenges the sector faces, the opportunities are many. One of the most notable is the increase in the number of smart device users which has established itself as a very profitable segment for the information technology segment. Industry Trends and Business CyclesThe information technology industry is a very innovative segment because it must meet growing customer demand for technology problems and services. A very common trend in this industry right now is cloud computing. According to a Gartner survey, 19% of organizations use cloud computing for the majority of their IT production. Furthermore, an interesting feature of this industry is the integration of smart devices. Nowadays, almost everyone in developed countries uses smartphones and tablets to access the Internet due to the advancements made in these devices. The large number of users of smart devices has a really strong impact on information technology by shaping the structure of this sector in order to satisfy the demand for software, hardware and applications connected to these devices. Problems and challenges• High competition and adaptation of the cloudThe cloud computing market offers high profit margins that can attract many new entrants because the barriers to...... middle of paper ......estopedia.com/terms/a/assetturnover.asp(nd). On Investopedia. Retrieved March 12, 2014, from http://www.investopedia.com/terms/d/dso.asp(nd). On Investopedia. Retrieved March 12, 2014, from http://www.investopedia.com/terms/p/profitmargin.asp(nd). On Investopedia. Retrieved March 12, 2014, from http://www.investopedia.com/terms/b/booktomarketratio.asp(nd). In Investopedia. Retrieved March 12, 2014, from http://www.investopedia.com/terms/c/currentratio.asp(nd). In Investopedia. Retrieved March 12, 2014, from http://www.investopedia.com/terms/q/quickratio.asp(nd). In InvestireAnswers. Retrieved March 12, 2014, from http://www.investinganswers.com/financial-dictionary/financial-statement-analysis/net-cash-flow-2313(nd). In Investopedia. Retrieved March 12, 2014, from http://www.investopedia.com/terms/f/freecashflow.asp