THE new technology cycle is being driven by three key market themes, cloud computing, internet applications and ubiquitous computing (ubicomp) – an advanced computing concept where computing is made to appear everywhere and anywhere whilst invisible to the user.

Cloud computing can no longer be considered a new phenomenon.

The word cloud is basically a marketing term referring to storing and accessing data and programs over the Internet instead of a computer’s hard drive.

This means you can upload your files to a service and then download them again wherever you are.

More and more companies are moving to the cloud for the provision of their IT services and it is effectively changing the way IT is delivered.

Businesses are taking advantage of the cloud’s cost savings, flexibility, scalability and data storage capabilities.

It also frees up IT staff to work on more business-valuable projects by offloading the operation and maintenance of non-core applications.

The most well-known cloud applications include Apple’s iCloud and Dropbox.

Video on-demand services such as LoveFilm and Netflix could also be considered cloud technology.

The rise of the tablet computer has encouraged a major shift towards the development and delivery of cloud computing.

The more traditional PC manufacturers, such as Dell and HP, are faced with serious headwinds and those that cannot adapt will no doubt struggle.

Viruses, and malicious software (malware) threaten people’s confidence in the industry and the appetite to adopt the new way of doing business.

The recent password protection issues with Ebay and GameOver Zeus have caused many to rethink about internet security and how to protect themselves.

For those who don’t already know, GameOver Zeus is an extremely sophisticated type of malware designed specifically to steal banking and other credentials from the computers it infects.

It is predominately spread through spam e-mail or phishing messages and the FBI have announced a multi-national effort to disrupt the cybercriminals.

Despite this, many people believe cloud computing could revolutionise the technology market in the way the internet did in the 1990s.

As always, there are various investment routes should investors want exposure to this fast growing market.

Aside from collective investments, the higher risk option is to invest directly into a company listed on the FTSE 350 or AIM, depending on the level of risk you are willing to take.

Apparently, we are in the midst of a disruptive new cycle favouring small and mid-cap technology companies, with larger companies seeing much poorer prospects.

Merger and acquisition activity is on the rise, bolstered by market confidence, and activity is likely to remain elevated for some time.

Samantha Dolby is an investment manager at Brewin Dolphin and offers advice on a wide range of financial services to private clients, trusts, charities and pension funds. The opinions expressed in this article are not necessarily the views held throughout Brewin Dolphin Ltd. No director, representative or employee of Brewin Dolphin Ltd accepts liability for any direct or consequential loss arising from the use of this document or its contents.