Tag: Gartner

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.

gartner-UKPC-2Q13

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.

Tablets oust PCs

cheap-tabletsA Gartner report says that worldwide shipments of PCs fell in all regions during the second quarter of this year – a fall of 10.9 percent and the fifth consecutive decline.

And, if Gartner analysts are to be believed, the day of the PC is over, with a shrinking installed base of PCs.  Mikato Kitagawa, principal analyst at the company, said: “Inexpensive tablets have become the first computing device for many people, who at best are deferring the purchase of a PC. This is also accounting for the collapse of the mini notebook market.”

Lenovo pipped HP at the post, but showed a decline in the Asia Pacific region.  HP however, still leads in the USA, Latin America, and APAC.

76 million units shipped in the second quarter, but worldwide, Acer’s growth dropped by 35.3 percent, while Asus also see a decline of 20.5 percent.

Dell also fell, but showed steady growth in the USA and Japan.

Kitigawa, however, doesn’t think Windows 8 is responsible for the slowing shipments. However, the impending end of support for Windows XP helped to grow PC sales in the US enterprise sector.

Victor Basta, MD at M&A firm Magister, believes the PC era ended some time ago. He said: “If you’re a store chain called PC World you might want to rethink your brand quickly if you want to be associated with the future of technology rather than antiquity.”  He also warned poor sales of PCs would cast a cloud over the Dell deal.

Gartner slashes 2013 IT forecast

pc-sales-slumpGartner has revised its forecast for worldwide IT spending due to very soft demand for PCs. The outfit believes sales of traditional PCs will continue to lose steam in the second half of the year and there seems to be no end in sight. 

The analyst firm estimates spending on IT will total $3.7 trillion this year, which is actually up two percent from last year, but it is still far short of 4.1 percent predicted earlier this year. A number of other factors are hurting demand. Big G said unfavourable exchange rates and constant currency growth in Western Europe are not helping, either.

Windows 8 and Haswell failed to jump start the PC market, Gartner notes , but there might be light at the end of the tunnel. New devices and new form factors are coming, but at this point it is very unlikely that a bunch of hybrids and touch-enabled Ultrabooks can turn the tide. They will help, but they won’t reverse the trend.

Although IT departments aren’t expected to go on a spending spree over the next six months, things could change in early 2014, as they get ready to phase out XP boxes in Q1 and early Q2. Despite that, there doesn’t appear to be much room for optimism this year.

Windows 8.1 will launch on a number of new devices, but nobody is expecting it to make much of an impact. Intel Haswell and AMD Richland chips are out and the first products are already shipping and they will soon be joined by low-voltage Atoms and AMD Jaguar based APUs. On top of that, new Ultrabooks and hybrids are coming, too.

However, businesses rarely go for Atoms and Jaguars and IT departments tend to view new form factors like hybrids and thin clamshells as unnecessary gimmicks, so most new products that will enter the fray this year will be consumer oriented.

Big G sees more gloom for PC churners

pc-sales-slumpThe PC slump is set to continue, while tablet sales will remain strong well into the future, according to fresh data from Gartner.

Sales of traditional PCs are expected to hit just 305 million units this year, down 10.6 percent from last year. Things might be a bit better in 2014, but Gartner is still forecasting a 5 percent decline.

Even if non-traditional form factors, such as Chromebooks, hybrids and skinny clamshells are added to the PC figures, we’re still looking at a 7.3 percent decline this year.

Meanwhile tablets are still going strong. Tablet shipments are expected to reach 202 million units this year, up from 120 million in 2012. In 2014 tablet shipments should hit 276 million units. Mobiles are growing as well, but not at the same insane pace. Smartphone shipments are expected to grow by about 4.3 percent, with a volume of more than 1.8 billion units in 2012.

As far as non-traditional ultramobiles go, Gartner believes shipments will double this year, hitting 20 million units. Next year they should double again, to 40 million units, but even that won’t be enough to offset the slump across the rest of the PC market.

Demand for tablets and ultramobiles could be propped up by BYOD. Gartner believes that 72 percent of personal computing devices will used in the workplace by 2017 thanks to the new trend, which is already causing plenty of headaches in IT departments across the globe.

However, tablets might be about to run out of steam, as they are maturing fast and demand for high-end gear is evaporating.

“The increased availability of lower priced basic tablets, plus the value add shifting to software rather than hardware will result in the lifetimes of premium tablets extending as they remain active in the household for longer. We will also see consumer preferences split between basic tablets and ultramobile devices,” said Gartner research director Ranjit Atwal.

Interestingly, the combined share of Apple OS devices might overtake Microsoft’s OS share by 2015. Around 296 million Apple devices will ship this year compared to 339 million Windows devices. However, Android will outpace Apple and Microsoft combined, with shipments hitting 866 million units this year and passing the one billion mark next year.

Gartner predicts mobile payment will rocket

crystalWorldwide mobile payment transaction values will rocket this year according to Gartner, which predicts these transactions will hit $235.4 billion in 2013 – a 44 percent boost from $163.1 billion in 2012.

The number of mobile payment users worldwide will reach 245.2 million in 2013, up from 200.8 million in 2012, according to the research.

Sandy Shen, research director, Gartner, said the company expected global mobile transaction volume and value to average 35 percent annual growth between 2012 and 2017. He added the company was forecasting a market worth $721 billion with more than 450 million users by 2017.

Despite this, the company had lowered the forecast of total transaction value “due to lower-than-expected growth in 2012, especially in North America and Africa”.

Near Field Communications’ (NFC’s) transaction value has also been slashed with a reduction of 40 percent throughout the forecast period. Gartner said this is thanks to disappointing adoption of NFC technology in all markets in 2012, and the fact that some high-profile services, such as Google Wallet and Isis, struggled to gain traction.

Gartner predicts NFC will account for just two percent of total transaction value in 2013 and five percent of the total transaction value in 2017. However, growth is expected to increase from 2016 when the penetration of NFC mobile phones and contactless readers increases.

Money transfers and merchandise purchases will account for about 71 percent and 21 percent of total transaction value in 2013, respectively, making them by far the largest contributors. Worldwide, people are not purchasing as much because the buying experience on mobile devices has yet to be fully optimised, though the economic situation must count for something too.

People are spending less using mobile devices than through online e-commerce services and at retail outlets. Merchandise purchases account for about 23 percent of the total value forecast for 2017, Gartner said.

Bill payment value should grow 44 percent in 2013 and maintain consistent growth through the forecast period. Gartner said this is thanks to higher value per transaction figures, as more consumers in developed markets performed bill payments using mobile banking services – along with consumers in emerging markets who are transacting at higher values than originally forecast.

Western Europe’s transaction value is expected to reach $29 billion in 2013, up from $19 billion in 2012.

Worldwide ITOM grew in 2012

gartnerWorldwide IT operations management (ITOM) software revenue raked in a total of $18 billion for the industry in 2012 a 4.8 percent rise from the same time in 2011.

However, according to the latest report by Gartner, the “big four” ITOM vendors – IBM, CA Technologies, BMC Software and HP – paid a price, surrendering market share while a new generation of ITOM vendors grew significantly faster than the market.

Pushing the growth of the ITOM market, although at a less frantic pace, were continued investments in virtualisation management tools and emerging cloud computing technologies, while growth in workload and automation also contributed.

Gartner also highlighted the evolution of IT service desk tools into IT service support management tools as another growth contributor.

The top five ITOM vendors, ranked by revenue, grew 0.6 percent in 2012, compared with a seven percent growth in 2011, and accounted for 55 percent share, or $9.9 billion, of the overall ITOM software market in terms of revenue. The ranking of the top five vendors did not change from 2010 through 2012. Among the top five vendors, Microsoft led the group in year-over-year growth at 16 percent, while the rest of the top five remained flat or saw declining growth.

CA Technologies and BMC Software were neck and neck with less than $200 million between them. And after displacing HP from fourth place in 2010, Microsoft continued to rapidly gain on BMC and CA Technologies, with Microsoft just less than $650 million behind CA Technologies.

At the regional level, North America, Western Europe and mature Asia/Pacific were the prime consumers of ITOM software in 2012, while the biggest laggards were named as Eastern Europe, Eurasia and Sub-Saharan Africa, with decreases of more than 1.5 percent each. All other areas saw low- to mid-single-digit growth.

European PC market continues downward spiral

pc-sales-slumpThe global PC market contracted 13.9 percent in the first quarter of 2013 and Europe seems to have taken the worst hit. Sales of PCs in Western Europe fell off a cliff in the first three months of the year and they are down 20.5 percent year-on-year. Big brands like Acer and HP did even worse, experiencing a drop in excess of 30 percent. 

Gartner gives advice to shops

gartnerDemand driven retail success is dependent on getting a range of factors right, Gartner has said.

According to the company, defining the role of supply chain, span of control and metrics maturity are the key  to  retail success.

Demand-driven retailing is based on a range of technologies and processes that analyze and capture consumer behaviour. This is then teamed up with  demand, supply and product analysis in a bid to to fulfil customer expectations, improve operational performance and in turn give a profitable response across a network of suppliers, employees and sales channels.

In a survey of retail industries in North America, Western Europe and Asia/Pacific, the company said that there were three important bit to  getting this right.

Firstly the supply chain, which Gartner pointed out varied in role by retailer, was
named as one of the key things to help businesses with their strategy. It said its survey highlighted that 64 percent of respondents were more likely to deliver return on assets (ROA) of greater than 16 percent when using this chain properly.

The supply chain so-called “span of control” was another factor highlighted by the company, which said although the role of the supply chain may differ by retailer, the best shared one common trait — they define their supply chains more inclusively than their peers.

It said many retailers use a narrow span of control (such as distribution centre [DC] operations, transportation and procurement) to define their supply chains.

Smarter retail supply chains went a step further and broadened the span of control to include forecasting, replenishment, new product launch and sourcing responsibilities.

Finally, Gartner said that establishing a robust set of end-to-end supply chain metrics was also an important factor with many retailers today measuring aspects of their supply chains, but also identified a need for a more-comprehensive measurement program.

Semiconductor industry rakes in dosh in 2012

gartnerThe global semi foundry market raked in $34.6 billion in 2012, an increase of 16.2 percent from 2011, according to Gartner.

The analyst house said that 2012 was also the year that semiconductor revenue for mobile devices surpassed that of PCs and notebooks, as well as marking the first year that advanced technology for mobile applications drove the foundry revenue.

And 2012 continued to please the industry with major foundries improving the yield of 28 nanometer (nm) technology, but also many foundries fine-tuned the device performance of legacy nodes.

TSMC continued its reign as the number one semiconductor company as a result of its success in the advanced technology nodes sector. Strong performance on 32 nm yields and the availability of sub-45-nm wafer capacity at the Dresden, Germany, fabs allowed Globalfoundries to advance to second place, while UMC’s market share decreased due to reduced wafer shipments.

Driven by the wafers consumed by Apple’s A6 and A6X chips, Samsung moved up four spots to tfifth position with 175.5 percent growth in 2012.

The increase in the foundry business was attributed to the restocking of inventory by customers, along with the increased demand of smartphones, in which wafers for advanced technology are required.

Gartner also pointed out that in the second half of 2012, foundries performed better than the seasonal norm due to the need of 40 nm wafers as a result of the unexpected fast rise of low-cost smartphones in China and other emerging countries.

It said those foundries with sufficient wafer capacity and a good yield of 40 nm and 28 nm technologies have achieved solid revenue growth.

Gartner weans firms off Windows XP

framedwindowsDespite Windows XP and Office 2003 support ending in April 8 2014, more than 15 percent of midsize and large businesses are still, and will continue using the OS Gartner has said.

The company has decided to help heal the IT world and put together some recommendations on how companies can wean themselves off the OS as well as the risks associated with sticking to them.

Michael Silver and Steve Kleynhans, vice presidents in Gartner’s client computing team pointed out that not having support means that organisations’ PCs could be vulnerable to attack.

New vulnerabilities are always being found, and new vulnerabilities that are found in more current products could affect Windows XP and Office 2003, the duo said.

They warned that any unpatched device could be vulnerable to attack, even a private network  that has no internet access. They explained that this was because another device, even one running a supported product, could be infected with malware outside the private network and bring it onto the private network, infecting other devices.

Many applications will no longer be supported while running on Windows XP, which the pair said meant organisations could be on their own to resolve issues and problems leading to system downtime.

Organisations that are not almost or completely finished migrating off Windows XP and/or Office 2003 should reassess their position by reviewing their project plans and ensuring that they are on target to meet the deadline, Gartner said.

It said companies that were afraid they were unlikely to complete their migration projects by April 2014 should prioritise their applications and users so they could reduce the risks by addressing critical resources first.

Conducting several analyses on their application portfolios to help safeguard the company after XP support ends, and in preparation for Windows 7 or 8 migrations would also help businesses.

Gartner consults crystal ball about cloud

crystalAround 10 percent of IT security enterprise products will be delivered through the cloud by 2015, Gartner has said.

Gazing into its crystal ball, the analyst house has also said that these services will also drive changes in the market landscape, particularly around a number of key security technology areas, such as secure email and secure Web gateways, remote vulnerability assessment, and Identity and Access Management (IAM).

It said as a result it expected the cloud-based security services market to reach $4.2 billion by 2016.

Eric Ahlm, research director at Gartner said demand remained high from buyers looking to cloud-based security services to address a lack of staff or skills, reduce costs, or comply with security regulations quickly.

He said the shift in buying behaviour from the more traditional on-premises equipment toward cloud-based delivery models offered “good opportunities for technology and service providers with cloud delivery capabilities.”

He warned that those without such capabilities needed to act quickly to adapt to this “competitive threat.”

Gartner referenced a security survey from January which  it said showed high demand from security buyers for cloud-based security service offerings. Security buyers from the US and Europe, representing a cross section of industries and company sizes, stated that they planned to increase the consumption of several common cloud services during the next 12 months.

The highest-consumed cloud-based security service is email security services, with 74 percent of respondents rating this as the top service.

Furthermore, 27 percent of the respondents indicated they were considering deploying tokenisation as a cloud service, while another area cited for growth was security information and event management (SIEM) as a service.

Gartner is now advising value-added resellers (VARs) to supplement product implementations with cloud-based alternatives that offer large customers reduced operational cost and thereby increase the likelihood of customer retention in this market segment. VARs that fail to offer cloud-based alternatives might experience a decline in implementation revenue from customers seeking cloud-based solutions in certain market segments.
Around 10 percent of IT security enterprise products will be delivered through the cloud by 2015, Gartner has said.

Rubbing its crystal ball the analyst house has also said that these services will also drive changes in the market landscape, particularly around a number of key security technology areas, such as secure email and secure Web gateways, remote vulnerability assessment, and Identity and Access Management (IAM).

It said as a result it expected the cloud-based security services market to reach $4.2 billion by 2016.

Eric Ahlm, research director at Gartner said demand remained high from buyers looking to cloud-based security services to address a lack of staff or skills, reduce costs, or comply with security regulations quickly.

He said the shift in buying behaviour from the more traditional on-premises equipment toward cloud-based delivery models offered “good opportunities for technology and service providers with cloud delivery capabilities.”

He warned that those without such capabilities needed to act quickly to adapt to this “competitive threat.”

Gartner referenced a security survey from January which  it said showed high demand from security buyers for cloud-based security service offerings. Security buyers from the US and Europe, representing a cross section of industries and company sizes, stated that they planned to increase the consumption of several common cloud services during the next 12 months.

The highest-consumed cloud-based security service is email security services, with 74 percent of respondents rating this as the top service.

Furthermore, 27 percent of the respondents indicated they were considering deploying tokenisation as a cloud service, while another area cited for growth was security information and event management (SIEM) as a service.

Gartner is now advising value-added resellers (VARs) to supplement product implementations with cloud-based alternatives that offer large customers reduced operational cost and thereby increase the likelihood of customer retention in this market segment. VARs that fail to offer cloud-based alternatives might experience a decline in implementation revenue from customers seeking cloud-based solutions in certain market segments.

Gartner thinks it knows everything

gartnerThe global energy and utility markets face significant challenges from ongoing environmental sensitivity, policy maker decisions and consumer demands, Gartner has said.

The research company has made the claims within its top ten technology trends within the industry for 2013.

Report author Kristian Steenstrup, vice president and Gartner Fellow said searching for successful business models that will address these issues and generate anticipated shareholder returns in uncertain regulatory settings was a top priority for this industry.

He added this was in addition to protecting the security of critical generation and delivery infrastructure, as well as maintaining system reliability with aging physical assets.

He said one of the top ten technology trends for this sector this year was social media and Web 2.0, which would give utility IT leaders the opportunities to use social media as a customer acquisition and retention medium for competitive energy retailers and as a consumer engagement channel to drive customer participation in energy efficiency programs.

Big data will also play a part this year with Gartner predicting that smart grid development would increase data quantity by several orders of magnitude, driven by a host of edge devices, as well as new IT and OT applications such as advanced metering infrastructure (AMI), synchrophasors, smart appliances and microgrids.

Mobile and Location-Aware Technology was also cited as a trend with Gartner claiming this could lower costs and improve accuracy and effectiveness of the field force, which were the main drivers for utilities to deploy mobile and wireless technologies.

Gartner also pointed out Cloud Computing and SaaS would help in the smart meter, big data analytics, and demand response coordination and GIS industries, while sensor technologies, which would be applied extensively throughout the entire supply, transmission and distribution domains of utilities.

Increasing use of in-memory computing (IMC) application infrastructure technologies as enablers inside multiple types of software and hardware products would, according to Gartner, result in rapid IMC adoption by mainstream, risk-averse IT organisations.

The company added the ability of IMC to support high-scale, high-throughput and low-latency use cases would also make it possible for IT organisations to implement innovative scenarios, such as those addressing processing of the smart-grid-generated metering and real-time sensor data.

Advanced Metering Infrastructure was also highlighted as a priority as it would provide communication backbones for low-latency data aimed at improving distribution asset utilisation failure detection, and facilitating consumer inclusion in energy markets.

PCs lose out to tablets worldwide

Dodo-birdA report from analyst company Gartner said that the traditional PC market will slip in 2013 by 7.6 percent as people open their wallets to spend on tablets and smartphones instead.

Gartner said the availability of low end tablets coupled with the features they’re now able to offer is fueling the move from PCs to tablets.  Said Carolina Milanesi, research vice president at the company: “While there will be some individuals who retain both a personal PC and a tablet… most will be satisfied with the experience they get from a tablet as their main computing device.”

Worryingly for PC vendors and X86 companies, people no longer think of PCs as devices that they have to replace regularly.

She said: “This is not a temporary trend induced by a more austere economic environment; it is a reflection of a long term change.”

Gartner estimates that worldwide tablet shipments will be 197 million units this year, a 69.8 percent increase.

And the Android operating system is set to dominate a mixed market which includes PCs, as this chart shows.
gart2013Gartner said that smartphones are becoming more affordable. “The trend towards smartphones and tablets will have much wider implications than hardware displacement,” Milanesi said.

Worldwide semi revenue falls

gartnerWorldwide semiconductor revenue declined in 2012, figures from Gartner have shown.

According to the analyst company revenues hit $299.9 billion in 2012, down 2.6 percent from 2011. It added that the overall semiconductor market decline also had a knock on effect on semiconductor vendors with the top 25 seeing a faster decline at 2.8 percent, than the industry as a whole.

The reason for the industry decline was put down to the disruption of  the computing, wireless, consumer electronics and automotive electronics sectors, which the semiconductor industry relies on, Gartner said.

Steve Ohr, research director at Gartner pointed out that in addition the industrial/medical, wired communications and military/aerospace sectors, “ordinarily less affected by changes in consumer sentiment” suffered severe declines in semiconductor consumption.

Excess inventory levels were also blamed for the profit declines.

Intel recorded a 3.1 percent revenue decline, due to falls in PC shipments. However, it held the top market share position for the 21st year in a row. Intel’s share was 16.4 percent in 2012, down from 16.5 percent in 2011.

Samsung, the second vendor, was held back by weak DRAM growth in 2012, as well as a dilution of the NAND flash market, although its overall revenue increased from smartphone application-specific integrated circuits and application-specific standard products.

Qualcomm’s semiconductor revenue increased 31.8 percent in 2012 to $13.2 billion. The company climbed from sixth place in 2011 to third in 2012 and now trails only Intel and Samsung. Qualcomm was the fastest-growing semiconductor company in the top 25 and continues to benefit from its leading position in wireless semiconductors.

Texas Instruments retained its fourth-place ranking, although Toshiba slipped to fifth place in semiconductor shipments.

Portable gadgets shape home and office landscape

Apple iPadPortable gadgets are affecting consumer spending habits and lifestyles, research by Gartner has found.

The analyst company spoke to 8,000 consumers in the US, UK, Canada and the BRIC countries (Brazil, Russia, India and China).

It found that household adoption and spending on consumer technology products is shifting faster than expected in favour of gadgets and services that are portable or mobile and those that deliver networking capabilities and entertainment.

It said the major change is that mobility is now reshaping mainstream consumer behaviour in fundamental ways. Many of us, for example, now choose a smartphone or tablet in the lounge in favour of the office and the laptop, Gartner said.

It said service providers had to therefore wake up and begin “innovating” for this trend and mobility. “If they do nothing, they face a potential train wreck as consumers abandon gadgets, services and applications that do not fully support changing mobile lifestyles,” the company said.

And it seems the likes of tablets are taking over the household, with Gartner finding camera’s, e-readers and laptops had been replaced by tablets and similar devices in the household.