Analyst outfit Gartner expects shipments of PCs, tablets and mobile phones to hit 2.21 billion units in 2019.
However this will mean a 0.6 percent decline for the PC market to 258 million units this year. Traditional PCs are predicted to sell three percent in 2019 to 189 million units.
The public cloud services market is set to see massive growth as a third of organisations now see cloud investments as a critical priority, according to a report from the Gartner beancounters.
Big G predicts that more than 30 percent of technology firms’ new software investments will move from cloud-first to cloud-only by the end of 2019.
Beancounters at the Gartner Group have added up some numbers and reached the conclusion that two-thirds of organisations implementing the Internet of Things (IoT) projects are using or planning to use digital twin technology.
For those who came in late, a digital twin is a “software design pattern that represents a physical object with the objective of understanding the asset’s state, responding to changes, improving business operations and adding value”.
Worldwide IT spending will hit a high of $3.76 trillion as it shifts from devices to new areas including cloud services.
Beancounters at Gartner think that despite Brexit uncertainty, trade wars, tariffs and Donald Trump IT spending is predicted to see three percent growth in 2019.
However, John-David Lovelock, research VP at Gartner, said the focus of this spending will shift dramatically.
Beancounters at analyst outfit Gartner say that corporate executives are now worried about IT talent shortages.
With projects like digital transformation, GDPR, cloud, AI on the books Gartner has found the lack of specialists has made talent a number one concern.
Gartner said for most of last year cloud computing was the main problem that customers were grappling with. But in Q4 of 2018,
The much expected rise in PC sales stalled last year because Intel failed to provide its suppliers with enough CPUs.
Analysts at Gartner group said a shortage of CPUs stopped the PC market’s revival in its tracks.
The analyst stated that worldwide PC shipments in the fourth quarter were 68.6 million, down
Analysts working for the prediction and divination department at Gartner group are predicting that infrastructure providers should be raking in cash and need to look beyond the edge to make even more.
Big G said that many think that that edge computing was the place to focus, but they need to look a bit further.
While Gartner is not disputing that the edge is essential but is warning infrastructure providers that they need to keep following the demands for customers to deliver ‘digital touchpoint services’.
The analyst house defines a digital touchpoint as being any interaction with a digital device, product or service. An example would be a question and answer session with a chatbot or communication with a fitness tracker.
Beancounters at Gartner claim that robotic process automation (RPA) is becoming increasingly popular with large enterprises.
This means that global spend on the software will hit $680 million (£524 million) in 2018 a figure which is a 57 percent year-on-year increase from 2017.
Big G said that those adopting the technology are companies that specialise in insurance, utilities and communications and banks.
Cathy Tornbohm, vice president at Gartner said: “Typically, these organisations struggle to knit together the different elements of their accounting and HR systems,
Gartner research VP John Lovelock has warned that the channel should be making contingency plans for a recession triggered by Brexit.
Lovelock explained that although Brexit will have a “dampening effect” on spend in EMEA, full spending on IT will resume 12 months after Brexit.
He warned that a range of scenarios could upend their forecast, such as a no-deal or hard Brexit.
The spending that has come out of the market in 2017 and 2018 is from businesses reacting to the uncertainty of what the deal will be. While businesses are uncertain as to what is happening, they can’t plan and tend to stick their hand back in their pocket and wait until they have more certainty on what the rules will be and how they will be able to engage with them, he said.
His advice was not to necessarily look at our forecast, which is the ‘most likely’ scenario.
“There is a rising chance of a recession in 2019 or 2020 – it’s not so large that it is in our ‘most likely’ scenario – but it is possible and they ought to have a plan should a recession occur.”
Overall IT spending in EMEA is expected to hit £742 billion in 2019, representing a two percent increase from 2018’s estimated total of $954 billion. The UK is predicted to see $204 billion spend next year – a 1.9 percent decrease on 2018’s figure.
Brexit is tiggering IT spending across EMEA, causing it to be the third-slowest-growing region for IT spend in 2019, after Eurasia and Latin America.
Lovelock says this is due to a number of factors, including Brexit, but price problems with mobile phones causing supply and demand to plateau.
Gartner predicts enterprise software will continue to be the area seeing the most expenditure, predicting a growth of 7.3 per cent – a slowdown from the 12.7 percent rate it grew at in 2018.
Enterprise application software can grow at such a strong rate is because it starts to take money from other areas as it goes into the cloud, he said.
“For example, if I am buying licensing software from a vendor, I need to also buy a server and storage, networking and backup equipment. If I buy cloud software, I don’t have any extra charges, so I can take money out of my server and storage spending and put it into cloud software.”
Beancounters at Big G have declared that the fall of the PC is finally over and worldwide PC shipments are finally back up.
Gartner boffins declared a modest growth in PC sales of just 1.4 percent during Q2 2018, year on year, totalling 62.1 million units.
The growth was led by the market’s top five vendors – Lenovo, HP, Dell, Apple and Acer Group. Gartner said as many as three out of four PCs were shipped by these firms in the second quarter of 2018. Vendors outside the top five saw a decline of 12.9 percent year on year.
Principal analyst at Gartner Mikako Kitagawa, said: “PC shipment growth in the second quarter of 2018 was driven by demand in the business market, which was offset by declining shipments in the consumer segment.”
Kitagawa added that long-held troubles in the PC market continue to be influenced by smartphones continuing to dominate consumer behaviour.
“In the consumer space, the fundamental market structure, due to changes on PC user behaviour, still remains, and continues to impact market growth.
“Consumers are using their smartphones for even more daily tasks, such as checking social media, calendaring, banking and shopping, which is reducing the need for a consumer PC.”
However, this joy is not expected to last. Even for vendors currently enjoying PC growth, Kitagawa issued a warning: “In the business segment, PC momentum will weaken in two years when the replacement peak for Windows 10 passes.
“PC vendors should look for ways to maintain growth in the business market as the Windows 10 upgrade cycle tails off.”
Extreme Networks has been named as a Leader by Gartner in the analyst outfits “Magic Quadrant” for Wired and Wireless LAN Access Infrastructure.
According to Gartner: “A vendor in the Leaders quadrant will have demonstrated an ability to fulfil a broad variety of customer requirements through the breadth of its access layer product family. Leaders will have the ability to shape the market and provide complete and differentiating access layer applications, as well as global service and support. Leaders should have demonstrated the ability to maintain strong relationships with their channels and customers, and have no obvious gaps in their portfolios.”
Prior to 2018, Extreme Networks appeared as a “Visionary” in the Gartner Magic Quadrant for Wired and Wireless LAN Access Infrastructure for three consecutive years.
Since the last report published in 2017, Extreme completed its acquisition of Brocade Communications Systems, Inc.’s data center networking business, its third in a series of acquisitions since October 2016. Extreme also launched its Smart OmniEdge solution comprised of a secure, unified wired/wireless infrastructure and AI-driven management capabilities, accessible through a single pane of glass.
Ed Meyercord, President and CEO, Extreme Networks said that Extreme Networks’ entrance into the Leaders quadrant as a vendor offering wired and wireless LAN access infrastructure was a true milestone.
“To us, it is an honour to be recognised by a source like Gartner in its Magic Quadrant. It is our fifth consecutive year appearing in this reference guide for our customers and partners.”
Worldwide server revenues grow by a third but while that is a good thing for vendors it is more due to supply shortages, according to analyst outfit Gartner group.
Apparently a shortage in components for server hardware, alongside currency fluctuations, has driven up the cost of servers in EMEA.
Worldwide server revenue increased 33.4 percent in the first quarter of the year and shipments grew 17.3 percent year over year.
Adrian O’Connell, research director at Gartner, said the EMEA server market’s strong start to 2018 is largely driven by scarcity of materials increasing the cost of gear.
“The cost of certain components is increasing due to supply shortages, and this is compounded by recent currency volatility increasing the figures for revenue when measured in US dollars. The very modest rate of shipment growth demonstrates the effects of system pricing”, he said.
In EMEA, this caused revenue to grow by almost a third year-on-year to $3.7 billion for the quarter, while server shipments totalled just 517,000 units, an increase of only 2.7 percent year-on-year.
Analysts said that ongoing supply constraints in memory would continue into the second half of 2018, and that this is affecting the market and driving most revenue growth.
Dell EMC experienced a huge 51.4 percent revenue growth in the first quarter of 2018, widening the gap between it and second-placed HPE. Dell EMC recorded a 21.5 percent market share, followed closely by HPE with 19.9 percent of the market.
In EMEA, HPE maintained its primary spot, but it was third-placed Lenovo that had the strongest growth of 70 percent, Gartner said. This strong growth is partly due to comparison with a weak first quarter in 2017, as Lenovo’s business has been declining since the System X acquisition.
Dell EMC saw the second strongest growth rate of the top five vendors. “Dell EMC continues to perform well in EMEA”, said O’Connell. “The first quarter is usually a good quarter for Dell EMC, but it’s attained a record revenue share level in in the first quarter of 2018 and reduced the gap between itself and HPE to under 10 percent now.”
Gartner said the modest shipment growth rates suggest that market demand hasn’t increased much, and that ongoing memory supply constraints would continue into the second half of 2018.
“The very positive revenue performance, however, along with strong adoption at the start of this upgrade cycle, means it is at least a much more positive start to 2018 than we saw at the start of 2017”, said the report.
Analyst outfit Gartner has made the astonishing claim that the middleware market is losing its snoozeware handle and becoming interesting.
It is all due to the rise of the digital transformation and spending growing 11.9 percent in 2017.
Gartner claims worldwide spending on application infrastructure and middleware (AIM) hit $28.5 billion last year.
Gartner research vice president Fabrizio Biscotti said that the more companies move toward digital business models, the higher the need for modern application infrastructure to connect data, software, users and hardware in ways that deliver new digital services or products.
Although market leaders IBM and Oracle own nearly a third of the market between them, momentum is shifting from market incumbents to challengers, Gartner said.
The small challenger segments are built predominantly around cloud and open-sourced based application integration (iPaaS) offerings, the market watcher explained.
“In iPaaS we find the groundwork being laid for a digital future, as the products in this segment generally are lighter, more agile IT infrastructure suited for the rapidly evolving use cases around the digital business”, said Bindi Bhullar, research director at Gartner.
“The result is that well-funded, pure-play iPaaS providers, open-source integration tool providers and low-cost integration tools are challenging the dominant position of traditional vendors.”
iPaaS sales grew 60 percent in 2016 before surging a further 72 percent this year to top $1bn, Gartner said, but are still a small part of the overall market.
The most successful challengers in the AIM market will be those that position their products as complementary to — rather than replacements for — the existing legacy software infrastructure that is common in most large organisations, Biscotti said.
IBM’s AIM revenues hit $6.1 billion last year, up 2.7 percent, handing it 21.5 percent market share. Oracle’s AIM revenues were almost flat at $3.1b billion, with Salesforce, Microsoft and Amazon rounding out the top five.
The AIM market will grow even faster in 2018, after which spending growth will slow each year, reaching around five percent in 2022, Gartner concluded.
Gartner’s latest Magic Quadrant for infrastructure as a service (IaaS), saw eight cloud service providers dropped from the rankings.
Virtustream, CenturyLink, Joyent, Rackspace, Interoute, Fujitsu, Skytap and NTT were all vanished from the analyst firm’s Magic Quadrant, leaving only the six largest companies.
The number cruncher’s reasons for this sudden purge was that it wanted to create a more “stringent inclusion criteria” this year, which effectively excludes all but global vendors who currently have IaaS and platform as a service (PaaS) offerings.
This means Google, AWS and Microsoft Azure in the leaders’ box, with Alibaba, Oracle and IBM a long way behind.
“These changes reflect Gartner’s belief that customer evaluations are currently primarily focused on vendors for strategic adoption across a broad range of use cases. While customers still search for more focused, scenario-specific providers, these providers should be evaluated in the context of that specific workload, rather than compared in a broader market context”, according to the analyst firm.
Beancounters at Gartner have added up some numbers and concluded that CRM is now the King of all Software having overtaken database management systems (DBMSs) as the most significant software sub-segment.
It thinks that CRM will continue to become more important thanks to GDPR, which will be enforced from 25 May.
CRM software revenues hit $39.5 billion in 2017, ahead of DBMS sales of $36.8 billion. The market is projected to grow a further 16 percent in 2018, making it not only the largest but also the fastest-growing software market.G
Gartner research director Julian Poulter said that the market’s major suite vendors are showing “stronger than average growth” as they successfully cross-sell additional modules to existing customers.
“Organisations are keen to avoid silos of information and to obtain a 360-degree view of the customer,” he said.
“The 360-degree view allows better application of artificial intelligence to make the users of the CRM system more effective.”
CRM budgets will rise further over the next three years in the wake of GDPR as poor CRM will lead to a privacy violation and a GDPR sanction. Application leaders need to enhance control over personal data usage throughout the data lifecycle and safeguard processed personal data so that it is not used beyond the context of predefined and documented use cases.
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