Tag: Gartner

Gartner says public cloud is bigger than Jesus

PAY-Lion-King-cloud-MAINBeancounters at the analyst outfit Gartner group claims that the public cloud just getting bigger, will be worth $200bn in 2016.

After adding up the numbers and dividing by its shoe size, Big G claimed that the global public cloud services market is set to grow by more than 17 percent in 2016.

According to Gartner, cloud services were worth $178 billion in 2015. This is set to increase to $208.6 billion in 2016, higher than the nominal GDP of Portugal.

Apparently all this will be driven by cloud system infrastructure services, which are projected to grow 42.8 percent year-on-year. Cloud application services, one of the largest segments in the global cloud services market, is expected to grow 21.7 percent to reach $38.9 billion.

Sid Nag, research director at Gartner said that the growth of public cloud is supported by the fact that organisations are saving 14 percent of their budgets as an outcome of public cloud adoption, according to Gartner’s 2015 cloud adoption survey.

However at the moment the aspiration for using cloud services outpaces actual adoption and while organisations might be keen to use cloud services, but there are still challenges for organisations as they make the move to the cloud.

“Even with the high rate of predicted growth, a large number of organisations still have no current plans to use cloud services,” Nag wrote.

Ed Anderson, research vice president at Gartner said that his outfit’s position on cloud security has been clear.

“Public cloud services offered by the leading cloud providers are secure. The real security challenge is using public cloud services in a secure manner,” he said.

Hybrid cloud faces challenges, however, and Gartner reported that organisations are concerned about integration challenges, application incompatibilities, a lack of management tools, a lack of common APIs and a lack of vendor support too.

Anderson said that while public cloud services will continue to grow. We also know that private cloud services (of various types) will become more widely used.

“Providers must focus on the top hybrid cloud challenges to be successful in meeting the growing demand for hybrid cloud solutions.”

Security vendor revenues rising as market contracts

securityBeancounters working for analyst outfit Gartner have added up some numbers and divided by their shoe size and worked out that security software revenues have risen  3.7 percent and were worth  $22.1bn in 2015.

The report said that security information and event management  remained the fastest-growing sub segment of the cybersecurity market and saw a 15.8 per cent growth. Consumer security software recorded a 5.9 percent year-on-year decline.

The top five vendors were Symantec, Intel, IBM, Trend Micro and EMC and they accounted for 37.6 percent of the security software revenue market share, down.

These vendors saw a collective decline of 4.2 percent in 2015, while the rest of the market grew strongly at 9.2 percent year on year. In fact, of the top five only Biggish Blue grew and increased its revenue by 2.5 percent to reach $1.45billion.

Both Symantec and Intel Security both suffered from the long-standing decline of the consumer market for anti-virus products and services. But Symantec still remained on top despite suffering a third consecutive year of revenue decline and its highest decline in revenue over a three-year period.

Still at least it did better than Intel which saw revenues fall from $1.83bn to $1.75bn between 2014 and 2015.

IT security market worth $170 billion by 2020

BouncerFoxFeatureThe IT security market will be worth $170 billion by 2020, which means growing by $100 billion from now.

India-based firm MarketsandMarkets says the 2020 total includes security technologies like data leak prevention, denial of service attack mitigation, and compliance, along with security services.

“MarketsandMarkets expects the global cyber security market to grow from US$106.32 billion in 2015 to US$170.21 billion by 2020, at a compound annual growth rate of 9.8 percent,” MarketsandMarkets said.

Gartner  said something similar its latest November figures predicted security spend pegged at $75 billion are reckoned be worth $91 billion by the end of the year. Big G said the security industry will be worth some $116 billion by 2019 with security services including consulting, hardware support, and outsourcing adding a further $73 billion by 2019.

Most of the cash appears to be being spend in North America  while significant revenue growth is expected from Latin America and Asia-Pacific regions. The most popular is expected to be managed security services.


90 percent of ERP projects will fail

Epic_FailResearch outfit Gartner has warned that 90 percent of ERP projects will fail because of integration disorder, greater complexity and cost by 2018.

It warned that nine out of 10 ERP projects will end in failure by 2018 as end users struggle to contend with the increasing complexity of “post-modern” ERP. .

Big G has urged systems integrators to “raise their game” as postmodern ERP represents a shift away from a single-vendor “megasuite” towards a “more loosely coupled and federated ERP environment”.

Despite this shift, by 2018 some 90 percent of firms will lack the ability to integrate postmodern applications, resulting in integration disorder, greater complexity and cost, Gartner said.

Carol Hardcastle, research vice president at Gartner said that this new environment promises more business agility, but only if the increased complexity is recognised and addressed.

The systems integrator partners responsible for rolling out ERP solutions need to take at least some of the responsibility, she said.

Hardcastle said ERP projects are still often compromised in time, cost and business outcomes more than 25 years after hitting the market.

“The focus of postmodern ERP is on improved business agility and flexibility, for example through deployment of solutions and services that are better targeted at the business capabilities and address other needs such as user experience,” she said.


PC sales slip back into the doldrums

pc-sales-slumpPC sales plunged lower than a Hollywood starlet’s dress in the first quarter of this year, according to Gartner Group.

One big reason for the decline was businesses buying fewer desktop computers, according to the Gartner research firm. It noted companies have mostly finished replacing older PCs that used outdated Windows XP software.

PC sales may get a boost later this year when Microsoft releases its next version of Windows, analysts said, but they’re still expecting an overall decline in sales for this year.

Gartner added that there had been an sales of laptop computers and hybrid models that combine features of tablets and laptops. That could help drive a gradual return to growth by next year.

Gartner analyst Mikako Kitagawa estimates PC makers shipped 71.7 million computers in the first quarter, down 5.2 percent from a year earlier.

Some computer makers are doing better than others. China’s Lenovo saw an increase in worldwide sales, as did its nearest competitor, the maker of expensive printer ink HP.. However smaller companies, including Dell, saw sales decline.

Global PC sales have fallen steadily over the last three years, but Gartner are projecting a return to growth in 2016. Tablet users are giving up on the technology and are moving back to notebooks.

The internet of things is here in droves

Internet of ThingsNext year there will be 4.9 billion connected “things” – that is connected semiconductors with IP (internet protocol) connectivity.

But this is only the beginning, according to research from the Gartner Group.  It said that there will be 25 billion such devices in 2020 and next year’s figure of 4.9 billion is up 30 percent from this year.

Jim Tully, a VP at Gartner, said: “The digital shift instigated by the nexus of forces such as cloud, mobile, social and information, and boosed by the internet of things (IoT) threatens many existing businesses.  They have no choice but to pursue IoT, like they’ve done with the consumerisation of IT.”

Gartner estimates that the IoT will support $69.5 billion of service revenues in 2015 and a staggering $263 billion by 2020.

Tully estimates that the automotive industry will show the highest growth rate at 96 percent in 2015. This table shows how it believes things will pan out up to 2020.

There are security implications here.  Gartner thinks that by the end of 2017, over 20 percent of organisations will have digital security services protecting devices and services in the internet of things.

Move your datacentres to Scandinavia!

datacenterWhile many multinational and pan-European businesses have their co-location centres in Amsterdam, Frankfurt, London or Paris, IT managers should think about moving their datacentres to Norway or Sweden.

That’s according to analysts at the Gartner Group and there’s a number of reasons why Sweden and Norway are attractive.

Tiny Haynes, a research director at Gartner, said that power costs in Norway and Sweden have fallen by five percent since 2010. That contrasts with the EU average power costs that have risen 13 percent in the same period.

Also it’s cold in Norway and Sweden and that can give datacentres efficiencies by using outside air cooling.

Gartner believes that managers can save up to 50 percent by moving their infrastructure lock, stock and barrel.

Haynes said: “It’s likely that most organisations will find some workloads that can be moved to a lower cost location without impacting performance.”

One in three jobs replaced by IT by 2025

rewardposterCrystal ball readers at analyst outfit Gartner have seen a future where robots and drones replace  a third of all workers by 2025.

At the start of its major US conference, the Symposium/ITxpo Gartner’s research director Peter Sondergaard predicted a future where a drone may be your eyes and ears.

In five years, drones will be a standard part of operations in many industries, used in agriculture, geographical surveys and oil and gas pipeline inspections, he said.

He also predicted a rise in the a “super class” of technologies that perform a wide variety of work, both the physical and the intellectual kind, said Sondergaard.

Machines, for instance, have been grading multiple choice for years, but now they are grading essays and unstructured text.

This cognitive capability in software will extend to other areas, including financial analysis, medical diagnostics and data analytic jobs of all sorts, Sondergaard said.

Gartner predicts one in three jobs will be converted to software, robots and smart machines by 2025. The new digital businesses require less labour and machines will be make sense of data faster than humans.


Gartner thinks of Internet of Thongs

LOD_Cloud_Diagram_as_of_September_2011While the Internet of Fangs is not with us yet, analysts at Gartner claim that the hype surrounding it has reached its peak.

Each year the research firm puts out a Hype Cycle of emerging technologies, in which it provides a report card for various trends and buzzwords.

This year the Internet of Thongs (IoT) tops the list above some other words such as wearable user interface and consumer 3D printing.

Gartner believes that emerging technologies go through a natural process in which they are triggered by some innovation, then they rise to a peak of inflated expectations.

Big G thinks that as the technologies mature, markets become hacked off that they failed to bring about a cure for cancer before they start to become mainstream and just part of everyday technology.

This year the list is topped by IoT, wearable user interfaces and natural-language question answering which are also just about at the top of their hype. All three of those technologies will be commonplace in the market within 5 to 10 years, Gartner predicts.

Some buzzwords do make it into the mainstream. Cloud computing was something that as just hype and talked about non-stop before it became real. Hybrid Cloud Computing is headed that way, but was still more hyped. Not to mention Chipzilla and the Vole.

Big Data and in-memory database management systems are just beyond the peaks of their hype, while gamification which is when you give rewards using game techniques is coming down from its peak hype. Last year, big data topped the list as the most buzzworthy of tech terms.

3D printing appears everywhere.  Consumer 3D printing is at the peak of its hype, while enterprise 3D printing and 3D scanning are both maturing toward mainstream, according to Gartner.

Gartner has a look that the buzzwords of tomorrow too. These include autonomous vehicles, predictive analytics, smart robots, holographic displays, software-defined anything, quantum computing and the connected home.

Gartner said that its hype graph is useful for companies to work out when it is the best time to release their product.

What worries us is when the Tibetan monks jump on the bandwagon and we get the Internet of No-Things.

Cloud Distribution signs A10

Adam Davison, Cloud DistributionValue added distributor Cloud Distribution said it has signed up A10 Networks.

A10 produces high performance products for accelerating, optimising and securing apps cost effectively.

Adam Davison, director at Cloud Distribution said that the Application Delivery Controller market has gone through a shake up after Cisco discontinued its ACE product.

And, he added, a number of enterprise customers need to refresh existing IT products that have now reached the end of their lives and have discontinued support.

“The recent addition of A10’s dedicated DDoS offering is an added bonus for our partners because it broadens the market opportunity with an enlarged portfolion of products,” he said.

According to Gartner figures, the Application Delivery Controller market and will doubtle to be worth $2.9 billion in the next few years.

BYODs mean IT departments have lost control

A monolithGartner said that while many businesses think it’s time for them to go mobile, there are obstacles to that move and many don’t know how to proceed.

But, said Darryl Carlton, a research director at the market research company, the key to success is appplications architecture and design,

“Designing your applications to meet the demands of BYOD is not the same as setting usage policies or having strategic sourcing plans that mandate a particular platform,” he said. “BYOD should be a design principle that provides you with a vendor neutral applications portfolio and a flexible future-proof architecture. If the applications exhibit technical constraints that limit choice and limit deployment, then the purchasing policy is irrelevant.”

IT departments are losing control of tools accessing corporate systems and data because of changes in the workforce and processes outside organisations’ boundaries.

“The community of users has expanded to include suppliers, customers, employees and a very broad range of stakeholders,” Carlton said. “We are no longer developing applications for deployment to an exclusive user base over which we exert standards and control.”

Partly, IT departments don’t realise that there are users that IT departments can’t control, and that means standards can’t be dictated and proprietary controls can’t be imposed.

“For CIOs to consider BYOD activities within their organization to be a temporary problem generated by a few disaffected employees would be a tragic mistake. This is a leading indicator of change for which an appropriate response is required. Reasserting control is not an appropriate response. This is a permanent and irreversible shift in the way that IT is procured and implemented to support the organisation, suppliers and customers.”

Gartner sees more gloom in PC market

pc-sales-slumpShipments of smartphones and tablets are skyrocketing, while PC shipments are going off a cliff – that pretty much sums up every single market research report over the last couple of years. Gartner’s latest report is just more of the same.

Big G estimates tablet shipments will grow 53.4 percent this year, hitting 184 million units. At the same time, shipments of PCs will be down 11.2 percent compared to 2012. It’s no surprise, but it’s worse than what Gartner forecasted back in April, when it said PC sales would decline 7.3 percent.

The trouble for PC churners is that old form factors are dying, but at the same time new form factors such as hybrids and ultrathins aren’t growing fast enough to balance things out. Even when shipments of ultraportables like Windows 8 tablets are thrown into the mix, the decline is still 8.4 percent. However, Gartner still believes new form factors will help in the long run. Shipments of traditional desktops and laptops are expected to total 303 million units this year.

Tablets are evolving as well and new form factors are emerging. In the high-end we’re seeing more elaborate designs with proper mechanical keyboards, although OS constraints are limiting their success. At the bottom, shoppers are picking up cheap 7-inch tablets like the Nexus 7 and Amazon’s Kindle Fire series. Even cheaper devices are available. Last year was all about the $199 price point introduced by the Nexus 7, while this year is shaping up to be the year of the $99 white-box tablet.

Tablets aren’t just hurting PC sales, cheap and cheerful tablets are also expected to cannibalize holiday smartphone sales. Smartphone penetration is already relatively high and western markets are still in love with pricey high-end devices, so a cheap tablet seems like a good holiday gift idea.

The most impressive figure in the report is the combined shipments estimate. The world will gobble up a staggering 2.32 billion phones, tablets and PCs this year.

Smartphones overtake feature phones

smartphones-genericSmartphone sales are up again, but growth is slowing. The worldwide market gobbled up 435 million phones in the second quarter, up 3.6 percent over the same period last year. However, worldwide smartphone sales have now reached 225 million units, up 46.5 percent from a year ago.

It was only a matter of time before smartphone shipments outpaced feature phone shipments and according to Gartner, this happened last quarter. Feature phone, or dumb phone shipments totalled just 210 million units, down 21 percent year-on-year.

“Smartphones accounted for 51.8 percent of mobile phone sales in the second quarter of 2013, resulting in smartphone sales surpassing feature phone sales for the first time,” said Anshul Gupta, principal research analyst at Gartner. Asia/Pacific, Latin America and Eastern Europe exhibited the highest smartphone growth rates of 74.1 percent, 55.7 percent and 31.6 percent respectively, as smartphone sales grew in all regions.

Samsung still reigns supreme, with 71.4 million units shipped last quarter and a 31.7 percent market share. Apple ranks second with 31.9 million units, but it is losing market share fast. LG and Lenovo had a very good quarter, shipping 11.5 and 10.6 million smartphones respectively. ZTE ranked fifth with 9.7 million units. Nokia, HTC, Blackberry and Sony are no longer in the top five. However, the top five vendors accounted for just 60 percent of the market, while 40 percent went to smaller outfits, including an ever increasing number of Chinese white-box manufacturers.


Gartner found that much of Samsung’s demand is now coming from mid-tier products and high-end devices with ASPs up to $400. It concluded that Samsung needs to do more to make its mid-range offering more appealing.  Oddly enough Apple also saw a dip in ASP, which is currently at the lowest level since 2007. This is the result of surprising strong sales of the iPhone 4 in some markets. Apple has recognized the trend and it plans to introduce a new, cheaper iPhone next month.

But Lenovo is the name to look out for. It’s making a killing in the dreary PC market and it’s doing even better in smartphones, although much of its effort goes unnoticed in the west. Lenovo almost doubled its share over the last 12 months and the company plans to bring its smartphones to western markets soon, possibly even next year.

Android remains the dominant operating system, with a 79 percent share, up from 64.2 percent a year ago. Apple’s iOS ranks second with a 14.2 percent share, down from 18.8 percent in Q2 2012. Microsoft gained some ground, but Windows Phone 8 still has a tiny share, 3.3 percent, up from 2.6 percent last year. Blackberry’s share halved to 2.7 percent and the Canadian company is now looking for a buyer. As with all things Blackberry, the decision comes three years too late.

Pricey PCs kill any hint of recovery

pc-sales-slumpPC shipments have been slow for months and they should start bottoming out soon, but the PC cause is being undermined by pricey laptops, analysts believe. A new breed of high-end designs based on Haswell parts is shipping, but their prices seem out of touch with reality. 

Buyers just don’t want to pay the premium for new chips, touchscreens or new form factors – and that premium can be quite steep. Most new Haswell laptops and ultrabooks cost a lot more than the average budget laptop and quite a few of them are priced north of £1,000.

“The thought that you can sell a $1,400 notebook is ridiculous. The mess is partly credited to Windows 8,” said Roger Kay, president and principal analyst at Endpoint Technologies Associates, reports IDG News Service. “In their bones they don’t get it. They refuse to deal with the reality of what’s going on.”

Mikako Kitagawa, research analyst at Gartner, believes laptop prices have stabilized and may even creep up. PC vendors are trying to position laptops as premium products compared to tablets, which means they are more likely to focus on high-end and mid-range models, with higher margins.
This may leave more room for cheaper brands, who could focus on entry level laptops, but then again such laptops are experiencing high cannibalization rates from tablets, so the trend is a mixed bag at best. Still, someone always finds a way to make the most of a crisis and we reckon Chromebook makers could do well in such a climate.

However, things aren’t that great in the high-end, either. Now that most people are used to dirt cheap laptops and equally cheap tablets, convincing them to pay more for “premium” models won’t be easy.

Other than prestige or brand snobbery, it’s really hard to make a convincing case for high-end laptops right now. There will be no shortage of executives willing to pay £1,000 or more for a stylish piece of kit, or enthusiasts who go for even pricier, boutique offerings. However, most users will probably be better off buying a budget model for £500 and spending the rest on a tablet, or a vacant apartment complex in Spain.

European PC market falls 20 percent in Q2

pc-sales-slumpThe European PC market may be about to bottom out, but before it does several vendors will take massive hits,  research from Gartner reveals. PC shipments in Western Europe totalled just 10.9 million units last quarter, down 19.8 percent year-on-year.

Gartner concluded that the death of netbook PCs, inventory woes caused by the transition to Haswell and Windows 8.1 all played a role in the decline. Acer and Asus were particularly hard hit. Acer’s sales were down 44.7 percent, while Asus took a 41.7 percent plunge. Acer sold just 1.3 million boxes in Q2, down from 2.36 million in the same quarter last year. It faired a bit better in Britain, with a 21.4 percent drop. Asus managed 850,000 units, down from 1.45 million last year.

HP still leads the way with 2.28 million units and a 20.8 percent market share. Unlike Acer and Asus, it managed to maintain its market share, but overall shipments were down 17.4 percent compared to a year ago. Lenovo was the only big vendor to end the quarter on a positive note. It shipped 1.26 million units, up from 1.185 million last year. That was enough to boost its market share from 7.8 to 11.5 percent.

Dell also did relatively well. Although its shipments were down 1.1 percent to 1.17 million units, Dell upped its market share from 8.7 percent to 10.7 percent.


Although all segments of the PC market declined, notebook sales saw a 23.9 percent drop, while desktop sales declined 12.2 percent. The consumer market saw a 25.8 percent dip, while sales of professional rigs were down 13.5 percent.

Gartner concluded that the UK mobile PC market lost 25 percent of its volume since 2010. PC shipments in Blighty totalled 2.2 percent units in Q1, down 13 percent from Q1 2012.

“The second quarter marked the 11th consecutive quarter of decline in the U.K.,” said Ranjit Atwal, research director at Gartner. “During this time the notebook market has shrunk nearly 25 percent in unit volume. The U.K. notebook market totaled over 2 million units in the second quarter of 2010 and has now reached just under 1.5 million units.”

Atwal said PC vendors are now at a “make or break point” in the industry, as the product move to new hardware and Windows 8.1 could turn things around. He also pointed out that the professional market did a lot better than the consumer market.

However, it looks like things will get worse before they get better.