Tag: Gartner

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.

Mobiles fell in 2012

mobyGlobal mobile phone sales declined in 2012 as a result of the economic climate and intense market competition Gartner has said.

In its latest report the analyst company said that 2012 mobile phone sales hit 1.75 billion units, a decline of 1.7 percent from 2011. And it was smartphones that bolstered this number with the fourth quarter of last year marking a record sale rate of 207.7 million units, up 38.3 percent from the same period last year.

The last time the worldwide mobile phone market declined was in 2009 and this year’s dismal results were as a result of tough economic conditions, shifting consumer preferences and intense market competition weakened the worldwide mobile phone market this year, the company said.

It added that feature phones were neglected with a 19.3 percent decline in 2012. And there was bad news for this sector with the company predicting that 2013 would continue to see a decline.

Smartphones were given a better future with the company claiming that sales of these would be close to one billion units in 2013, while overall mobile phone sales were estimated to reach 1.9 billion units.

And this market also bought in the bucks for manufacturers with Apple and Samsung both seeing their market shares in this sector rise. However, it was Samsung who had the last laugh ending up in first place for overall mobile and smartphone sales in 2012. Gartner said this was as a result of the company’s ability to build products based on broad needs.

But Samsung was warned that there could be trouble ahead with Gartner’s crystal ball predicting that competition would intensify in 2013 as players such as Sony and Nokia improved.

Huawei also had a good fourth quarter, helping it to take on third position for the first time  in the smartphone sales race. The company sold 27.2 million smartphones, up 73.8 percent from 2011, while its Ascend D2 and Mate models were tipped to drive further sales for 2013.

Nokia’s handset sales improved from a good response to its Asha mobile phones and the launch of the latest Lumia Windows Phone 8 models.

However, this wasn’t enough to stop Nokia to lose further market share, totalling 18 percent, the lowest it has ever been. In 2012, Nokia reached 39.3 million smartphone sales worldwide, down 53.6 percent from 2011.

Half of businesses to get Facebook style not working by 2016

gartnerHalf of large enterprises will have an internal social network, similar to Facebook, by 2016, Gartner has claimed.

Although 30 percent of these firms will consider this medium as essential as email and telephones, Gartner also claims that through 2015, 80 percent of social business efforts will not hit the high levels required to make this a reality, as a result of inadequate leadership and an overemphasis on technology

According to Gartner, using Facebook-like enterprise social not-working software for communication has several advantages over email and traditional collaboration methods. The analyst house said this is because software enabled information and events that are traditionally sent in emails can instead be turned into conversations and logged onto one system that everyone can see.

To ensure that businesses made the most of this, Gartner said head honchos must shift their thoughts away from deciding what the best communication technology is and instead focus on how to implement and understand how social networks work – and how they can be integrated into companies.

Currently, businesses are stifled because there is too much focus on content and technology, and not enough focus on leadership and relationships.

By 2017, Gartner expects to see companies offering social networking with gamified features – possibly rewarding employees through the social networking on a mobile or PC platform with work incentives.

Gartner: Cloud providers need to look at security services to survive

cloud 2Cloud providers must look at offering robust security options to ensure they stay ahead of the game, Gartner said.

Rubbing its crystal ball, the analyst company has gone as far to say the US government could declare cloud services as a critical national infrastructure, as a result of expanding public clouds, along with the ever-persistent threat on private and public sectors’ infrastructures.

It said that in the future this could mean that future network security is based increasingly on virtual security appliances.

By 2016, Gartner said public cloud infrastructure will include and be mandated to critical national infrastructure regulations by the US. It said that this is a result of the economic downturn, with governments continuing to sniff out ways to reduce their IT operating expenditures, eliminate duplication across their IT organisations and optimise their compute resources, making cloud deployments an attractive option.

Apparently several key governments have created initiatives for the adoption of cloud-based services, however, Gartner pointed out that they are yet to see any negative impacts from the technology. Disruptions, brought around by attacks on cloud service providers, were minimal.

By 2015, 10 percent of overall IT security enterprise product capabilities will be delivered in the cloud.

However, Gartner warned that as the economy becomes more dependent on the cloud, the threats against these networks would grow, eventually impacting national security.

The company is advising security providers to prepare their technologies to address potential mandates for critical infrastructure protection of public cloud environments.

It warned that those who lag behind with their security could face difficult sales and be squeezed out of the market by cloud providers who had threat management processes in place.

Growth rates for cloud-based security services are set to overtake those of traditional on-premises security equipment over the next three years with operational cost reduction, flexibility of deployment across multiple IT environments, and fast implementation and product updates among major factors driving demand.

Gartner also pointed out that as cloud matures, security offerings will also evolve, with data loss prevention, encryption and authentication all becoming must-have services offered alongside the cloud.

As new players establish themselves with innovative offerings, existing companies will look to acquire them to expand their portfolios with new capabilities and remain competitive.