Tag: IDC

Huawei announces its cunning cloud plans

cunning-planHuawei has been showing off its latest enterprise service strategy designed to support companies undergoing cloud transformation.

Huawei wants to become an industry cloud enabler and a strategic partner to customers across diverse industries by investing USD 500 million in the development of cloud-based professional services, a cloud platform and cloud ecosystem.

This will provide customers with end-to-end cloud transformation service solutions enabling them to build, use, and manage their cloud platforms effectively.

Sun Maolu, President of Technical Service Department for Huawei Enterprise Business Group, said: “With the emergence of a ‘Cloud Only’ era, Huawei is adopting a long term cloud transformation service strategy to support our enterprise customers in their journey to the cloud. Our services strategy centers on the concept of ‘Grow with the Cloud’ and becoming an industry cloud enabler.”

Huawei’s enterprise services will focus on four key areas including cloud innovation, creating a digital platform, supporting smart operations and enabling businesses.

To drive this strategy forward, Huawei will continue to increase its investment in the development of service solutions and Global Service Centers, and tools, platforms and verification labs for professional services.

“In the next five years, we will also focus on research and development of industry clouds, increasing our annual investment by more than 50%. To meet enterprise demand for ICT talent in the cloud era, Huawei will provide a new certification scheme to train ICT architects, ICT developers and industry-specific ICT experts. By 2021, it is estimated that more than 150,000 cloud and industry-specific ICT professionals will have been certified by Huawei,” Maolu said.

The big idea is based around the concept that as enterprises embrace cloud transformation, they will face a new set of challenges across strategy, planning, requirement analysis, business integration, application system evaluation, technology selection, roadmap design, deployment, operations & maintenance (O&M) management, and information security.

According to Xu Jingbin, Director of IT Technical Service Department for Huawei Enterprise Business Group: “With a track record of industry cloud solution delivery, Huawei works closely with our partners to develop end-to-end industry cloud transformation services that cover consulting, assessment, planning and design, migration, disaster recovery (DR), security, and O&M.”

Huawei provides a sophisticated migration process with 4 stages and 17 steps, and professional migration tools developed in-house, which have helped more than 1,000 customers migrate their businesses to the cloud smoothly and efficiently, he added.

To help customers through their cloud transformation, Huawei will invest more than USD 500 million in the next five years to develop all-scenario services and integrated verification capabilities for its enterprise services.

Leslie Rosenberg, IDC Research Director, said: “Huawei invests heavily in the development of Intellectual Property through the establishment of R&D centers to accelerate innovation, differentiation and delivery of its services.  The company has skilled services personnel as well as a channel ecosystem around the globe for consistent consulting and integration engagements.

In a recent IDC MarketScape: Worldwide Network Consulting Services 2017 Vendor Assessment, Huawei is positioned as a Major Player, for its global capabilities and R+D strength.  Additionally, end users surveyed in the study cited Huawei for its ability to lower operational costs and improve security as well as its ability to deliver reliability, quality and adaptability to customer needs and requirements.”

 

 

White box servers are bucking the industry trend

9100-w_cube-favor-boxes476fe5f55ab9e9fbdd0d91e1da43bb0aWhile the server market is in the doledrums, white box servers are doing really well, according to beancounters at IDC.

The white box server market is growing and the IDC numbers from IDC merely serve to reinforce the point, with the revelation that the ODM Direct group of vendors grew revenue by 41.8 percent in the first quarter to $1.2 billion, accounting for 10.4 percent of the market, at a time when overall server revenues declined by 4.6 percent.

Gartner research director Adrian O’Connell found something similar – while there was a global decline of 4.5 percent in server revenues in the same period, revenues in the “others” category rose 4.4 percent. He wrote that leading server vendors are doing all they can to ensure that service providers don’t continue to shift their server purchases toward ODM suppliers.

“Combined with the significant inroads made by China-based suppliers, we expect to see continuing challenges and downward price pressure across the EMEA server market for some time to come,” he said.

HPE struck a deal with Foxconn to sell white box-like servers to cloud and telco providers three years ago. But CEO Meg Whitman recently admitted that server sales had been affected by declining orders from a single customer – probably Microsoft.

Supermicro is one of the key white box venders. In February, it was believed that Chipzilla was the unnamed customer in a deal for more than 30,000 Supermicro servers for a data centre in Silicon Valley.

Death spiral of the tablet continues

iTomb-design-offers-mourners-touchscreen-tributes-from-the-grave-Macworld-AustraliaThe death spiral of the “game changing” tablet is continuing and soon there will be very few people wanting to buy one anywhere and resellers would be more likely to successfully flog used bog-roll tubes.

According to IDC, the tablet market continued its “downward spiral” in Q2 this year with worldwide shipments falling 3.4 percent.

The year-on-year decline was caused by tight consumer spending, IDC said. There was even a decline in shipments of detachables in Q2, as consumers wait for flagship launches from Apple and Microsoft.

Detachables had previously been a shining light for the tablet market, which has now been in a state of decline for 11 consecutive quarters.

IDC research director Linn Huang said that the tablet market has essentially become a race to see if the burgeoning detachables category can grow fast enough to offset the long-term erosion of the slate market.

However he has not given up hope yet as new product launches from Microsoft and Apple are generally accompanied by subsequent quarters of inflated shipments.

“The reintroduction of Windows to the ARM platform could help remedy the aforementioned hollowing of the middle of the market, and we expect a proliferation of Chrome OS-based detachables in time for the holidays.”

Despite the market decline, three of the top five tablet vendors saw their quarterly shipments increase year on year.

First-placed Apple, third-placed Huawei and fourth-placed Amazon all saw growth, while second-placed Samsung saw flat growth and Lenovo saw a decline.

Flogging SD-WAN could be worth loadsamoney

PF-loadsamoney_2177214kBeancounters at IDC have been adding up some numbers and decided that SD-Wan could be a money-spinner over the next five years.

Of course SD-WAN vendors have been telling resellers that it is a technology that the channel needs to get involved with as it starts to ramp up for a year or so, but it looks like now they have the backing of IDC.

IDC is expecting SD-WAN infrastructure and services revenues will see a compound annual growth rate of 69.6 percent to hit $8.05 billion by 2021.

The buzz-phrase of digital transformation is behind the move along with a rise of cloud-based SaaS business applications and a wider acceptance of SDN in general.

IDC’s vice prez of infrastructure Rohit Mehra said that “SD-WAN is not a solution in search of a problem.

“Traditional WANs were not designed for the cloud and are also poorly suited to the security requirements associated with distributed and cloud-based applications. And, while hybrid WAN emerged to meet some of these next-generation connectivity challenges, SD-WAN builds on hybrid WAN to offer a more complete solution.”

IDC promises that detachable market will come together

Beancouacer-aspire-switch-10nters at IDC have added up some numbers and divided by their shoe size and worked out that the recent slowdown in UK sales of detachable devices will be reversed in the second half of 2017.

IDC thinks that thin and light form factors will account for a third of the total UK PC device market this year.

UK PC and tablet sales will shrink 6.8 percent this year to 3.2 million units as Brexit uncertainty, exchange rate fluctuations and public spending cuts put pressure on device spending.

Despite this, the momentum behind thin and light form factors will continue as consumers and businesses gravitate towards features that support mobility and OEMs attempt to decrease exposure to low-margin, entry-level PCs and tablets, IDC said.

Detachables, covertibles and ultra-slims are set to account for a third of the total PC device market in the UK in 2017, up from 25 percent in 2016, IDC said. This figure will rise to 43 percent by 2021, it added.

Convertibles will grow by 28.9 percent this year, ultra-slims by 9.8 percent and Detachables will return to stellar growth in the second half despite losing steam over the past six months.

IDC Western Europe Personal Computing Devices senior research analyst Daniel Gonçalves said that several factors affected the performance of detachables in the UK in the last six months.

“There has been a replacement of notebooks by Windows-based detachables eased off, as the benefits have not been seen to be clear enough. Secondly, there was a growing focus on convertibles by many prominent OEMs, and this has had some negative impact on detachables. Lastly, there was a longer than usual period during which major detachable brands capable of boosting demand weren’t updated.”

Detachable sales will rise by 27.6 percent in the six months to 31 December 2017, IDC predicted.

“We are confident that the number of new models being introduced will help boost shipments from the second half of 2017,” Gonçalves said.

Flash seeing strong demand

flash_gordon (1)Figures out from IDC show a strong demand for Flash Drives in the first part of the year.

Customers are embracing the technology, and the result was a doubling of sales compared to last year.

An IDC analysis of what happened in Q1 would have made great reading for storage vendors that have backed flash with sales growing by 100 percent  year-on-year in EMEA.

That contrasted with a 34.5 percent drop in the traditional hard disk drive market as a number of factors took their toll on the demand for that tech.

IDC research manager, European Storage and Datacenter Research, Silvia Cosso said that Brexit uncertainty, unfavourable exchange rates, major vendors’ internal reorganisations, and increased component costs for SSD have weighed down on EMEA performance once again, making 1Q17 the ninth quarter of uninterrupted decline for the region.

“However, as enterprises progress in their digital transformation paths, sales of all-flash array systems, standalone or converged, see no crisis in sight, doubling their sales compared to the same period a year ago and reaching a quarter of total sales,” he added.

That growth of flash could not happen unless it became a genuine option for the SME community and technology that is now a strong channel play.

IDC Europe research manager Archana Venkatraman the accelerated growth in all-flash arrays this quarter shows that flash storage has entered not just large enterprise data centres but even medium-sized and small businesses in Western Europe.

“With flash storage solutions evolving to support mixed workload consolidation and offer rich data services, many more businesses are exploring the use of flash for their primary storage needs,” Venkatraman said.

Dell remains the market leader in the external disk storage systems market in EMEA, but it suffered a 21 percent drop in growth in the first quarter. It’s rival NetApp had a better start to the year with a 9.2 percent climb, and IBM was also enjoying demand with a 16.2 percent growth year-on-year.

 

Software defined WAN market growing

Networking resellers are seeing a surge in sales for software defined-WANs.

Software defined networking has hit the WAN market and IDC is reporting that demand will grow over the next few years.

IDC reports a gathering momentum around SD-WAN with established vendors and a growing number of start-ups providing options.

It said that there were a growing number of service providers “jumping on the bandwagon” to take a slice of a market that it expects to grow at an average pace of 92 percent a year to hit $2.1 billion by 2021.

Jan Hein Bakkers, senior research manager at IDC said that SD-WAN had emerged as one of the hottest topics in the WAN industry.

“It will become one of the key building blocks of network evolution, driving the flexibility, manageability, scalability, and cost effectiveness that organizations require in their balancing act between rapidly growing requirements and much flatter budgets,” he added.

SD-WAN also got a mention as one of the top things to look for as a major trend from Cisco in its Visual Networking Index.

It expects SD-WAN traffic to grow at a CAGR of 44 percent increase six-fold by 2021 and represent a quarter of WAN traffic.

Wobbly PC market stabilises in EMEA

Bike-blog--Young-child-on-010Figures just in from IDC show that the EMEA PC market stabilised in the fourth quarter.

After adding up some numbers and dividing by their shoe size, the IDC beancounters worked out that the market had declined only 0.2 percent annually, thanks to strong demand in the commercial space and a Chromebooks boom.

If it had not been for Brexit vote caused a slump in Blighty of 6.2 percent year on year everything in the region would have been good – another reason for suppliers to string up Nigel Farrage, Boris Johnson and Michael Grove.

“As the pound has become a turbulent currency following Brexit in the UK, the British traditional PC market was impacted negatively, down 6.2 percent,” said IDC.

In the final quarter of 2016, total PC shipments in EMEA reached 20.7 million, down 0.2 percent year on year. Notebooks performed well in the region, up 2.9 percent, and “strong demand” was triggered in the commercial space, which grew 10.1 percent.

During 2016, PC shipments fell 6.1 percent to 71.6 million units.

The biggest disappointment was that Windows 10 “did not drive extensive renewals.” The money spinners were Chromebooks which led to “strong demand for notebooks” in the second half of the year thanks to a boom in the education market.

Although the whole EMEA region performed well in Q4, the same could not be said for the UK.

Senior research analyst, IDC EMEA Personal Computing Malini Paul, said that the western European PC market performed better than expected in 2016’s Q4, thanks to notebooks in both the consumer and commercial segments.

“While promotions around Black Friday and the post-Christmas period supported the strong seasonality of the holiday period, fulfilling backlogs from 2016’s Q3 due to component shortages contributed to the sell-in uptake in the consumer space.”

IDC says the channel must embrace the DX economy

chinaflagBeancounters at IDC have been telling the Chinese channel that it must rush to embrace the digital transformation (DX) economy and what applies there, should really apply to Blighty.

China’s economy has entered a period of transformation and both the governments and businesses alike are actively seeking new growth modes. Digital transformation (DX) of business, backed by the latest ICT technologies, is the answer.

IDC forecasts that digital transformation will attain macroeconomic scale over the next three to four years, changing the way enterprises operate and reshaping the global and Chinese economy. This is the dawn of the “DX Economy”.

Kitty Fok, Managing Director of IDC China, said: “DX will be a top priority for all business in the coming decade. Executives must adapt to the new rules of competition and accelerate DX process; meanwhile IT executives must take up new roles, transforming IT department into a strong technical partner. Executives of ICT vendors must be aware of their customers’ new demands, changing from its role of tech support to a DX partner for customers. ”

China is expected to continue growing steadily in 2017, with GDP growth of more than six percent.

IDC predicts that the Chinese IT market will expand by 2.3% in 2017, entering a period of adjustment.

Personal device market is likely to remain flat whereas the enterprise infrastructure hardware market is expected to grow 7.3 per cent in 2017. The Software market is forecast to expand 7.5 per cent, while the IT service market to grow 8.7 per cent. Growth in the traditional hardware, software and services is likely to slow, but rapid growth of 15 per cent or higher is forecast for markets that are associated with innovation accelerator technologies (3D printing, robotics, cognitive system, Internet of Things, AR and VR, and the next generation security) and the 3rd Platform (cloud computing, big data, mobile, social).

IDC said that we are looking at the dawn of the DX Economy and that by 2020, 50 per cent of China’s Top 1000 companies will see most their business depends on their ability to create digitally-enhanced products, services and experiences.

There will be mass customization to accelerate business transformation: By 2018, the top 10% of China’s industry leaders will develop the ability to allow customers to build custom product and service bundles. By 2018, Chinese companies investing in IoT-based operational sensing and cognitive-based situational awareness will see 40 per cent improvements in the cycle times of impacted critical processes.

Information-based products and services will start gaining popularity. In 2018, one fourth of China’s Top 1000 companies will gain the revenue from information-based products. By 2020, the demand for digital-related services will account for 30 per cent of total worldwide services spending.

Crowd-funding to improve startup’s success rate, IDC said. By 2019, China’s Top 500 firms and lots of internet companies will use Kickstarter-like methods to allocate capital to 10 per cent of new projects, aiming to increase their new product introduction success rates by over 30 per cent.

Digital revenue streams will drive business growth. By 2019, 20 per cent of China’s IT projects will create new digital services and revenue streams that monetise data. More than 20 per cent of CIOs will shift primary focus from physical to digital and move away from BPM and optimisation by 2018.

 

There will be more self-adaptive security and risk management. The Chinese will tighten policy on security and controllability, driving investment on IT security by governments and large state-owned enterprises to grow by 15 per cent on average annually. By 2018, half of CIOs will help drive global risk portfolios that enable adaptive responses to security, compliance, business, or catastrophic threats.

The new wave of cloud computing (dubbed Cloud 2.0) will facilitate ICT ecosystem revolution. IDC said that by 2020, 40 per cent of all enterprise IT infrastructure and software spending will be for cloud-based offerings.

“The Cloud will morph to become distributed, trusted, intelligent, industry-focused and channel-mediated. By 2018, the number of Industry Collaborative Clouds will be more than 40; by 2020, more than half of China’s Top 100 will be digital services suppliers through ICCs,” IDC said.

Cheap tablets killing the sector

 

cheap-tabletsBeancounters at IDC claim that a flood of cheap tablets are killing off an already dying technology branch.

In a new report, IDC said that 43 million tablets shipped in Q3 2016 but that figure was actually the bad news.  The overall market declined 14.3 percent year-on-year, because of poor sales at the top end of the market. Basically consumers switching to cheap tablets with lower margins.

While there is a .8 percent quarter-on-quarter increase in shipments as vendors get ready for the holiday quarter. the market’s pants.

Amazon with its Fire tablets were the only tablets to see significant growth.  These were up 320 percent year-on-year but still only taking 7.3 percent of the market. Huawei sales increased 28.4 percent to 5.6 percent of the market.

Apple’s shipments fell 6.2 percent and Lenovo was down 10.8 percent. Samsung fell 19.3 percent.

Vendor 3Q16 Unit Shipments 3Q16 Market Share 3Q15 Unit Shipments 3Q15 Market Share Year-Over-Year Growth
Apple 9.3 21.50% 9.9 19.60% -6.20%
Samsung 6.5 15.10% 8.1 16.00% -19.30%
Amazon 3.1 7.30% 0.8 1.50% 319.90%
Lenovo 2.7 6.30% 3.1 6.00% -10.80%
Huawei 2.4 5.60% 1.9 3.70% 28.40%
Others 19 44.20% 26.9 53.20% -29.20%
Total 43 100.00% 50.5 100.00% -14.70%

IDC senior research analyst Jitesh Ubrani said that they -$200 tablets were spoiling the market for everyone.

He said that the “The race to the bottom is something we have already experienced with slates and it may prove detrimental to the market in the long run as detachables could easily be seen as disposable devices rather than potential PC replacements”

IDC thinks the IoT market is set to explode

hindenburg_burningBeancounters at IDC think that the Internet of Things (ioT) is suddenly going to stop being a buzz word and “explode.”

According to an IDC report IoT  is gaining traction as enterprise companies pivot away from proof-of-concept projects to scalable IoT deployments in 2016.

A third of companies have announced IoT offerings incorporating cloud, analytics and security capabilities, while an additional 43 percent of companies are looking to deploy offerings in the next year.

Carrie MacGillivray, vice president of mobility and Internet of Things at IDC said that outfits are starting to understand the benefits that IoT can bring.

She added that a strong partner ecosystem is essential and channel and systems integrators as playing an increasingly important role.

Companies are seeing vendors leading with an integrated cloud and analytics offerings as “critical partners” in an organization’s IoT investment, IDC found.

IDC’s survey found that 55 percent of respondents see IoT as strategic to their business to help them compete more effectively, there are still challenges – many organizations cited lack of internal skills as a top concern in deploying an IoT offering.

Bad time to be flogging servers

titanic-life-preserverBeancounters at IDC have said that it is a jolly bad time to be trying to flog servers and the numbers are sinking so fast that it is unlikely that the spotty kid with the posh girlfriend will escape before Celine Dion starts to sing.

The latest server sales figures for Europe, Middle East and Africa show that branded servers are losing ground to Far Eastern ODMs.

IDC numbers showed revenues down 3.7 per cent to $3 billion despite. All this happened while there was a  modest 0.8 per cent increase in the number of boxes shifted, which means that prices have fallen too.

Eckhardt Fischer, research analyst at IDC, said contract manufacturers, some of whom have launched their own branded gear, are doing well and the  HPEs, Dells and Lenovos of the world are suffering.

“This is strongly driven by the continued expansion of original design manufacturers (ODMs) in EMEA, a trend that IDC predicts will continue as mega datacenters and larger enterprises begin to source their hardware directly.”

HPE is still top server seller with 35.4 per cent market share in the second quarter of 2016, up 0.4 per cent. However its year-on-year revenues fell 2.7 per cent.

Dell grew market share to 17.9 per cent and saw revenues creep up by 1.6 per cent.

However Biggish Blue suffered the worst with a 36.9 per cent slump in revenues and a market share which fell to 9.3 per cent. IDC said the fall could largely be blamed on refresh cycles for IBM legacy mainframes last year – this was big enough to hit overall numbers for all vendors.

Oddly the place to try and peddle servers is Russia and the Ukraine where the improved political situation led to increasing IT investment. But the Middle East and Africa saw a decline of 8.5 per cent in revenues because lower oil prices led to cuts in tech investment.

 

IDC thinks PC sales worse than it thought

tarotreadingIDC has reached the conclusion that the PC market is a bigger mess than it originally thought and reshuffled its tarot cards for another prediction.

It now thinks that PC shipments  will decline by 7.3 percent year over year which is  two percent below what it was telling us before.

The outfit blames weak currencies, depressed commodity prices, political uncertainty, and delayed projects.

Microsoft is partly to blame because it handed out free copies of Windows 10 to everyone who asked, including a lot of people who didn’t.

IDC said that that “while a large share of enterprises are evaluating Windows 10, the pace of new PC purchases has not yet stabilised commercial PC shipments.”.

IDC now predicts just 255.6 million machines will ship in 2016, of which 103.3 million will be desktops. The firm reckons we’ll see “… progressively smaller declines through 2017 followed by stable volume in 2018.”

All up it seems that the PC market is such a mess that no one can effectively say how dire it will be, even half-way through the year. It also looks like most companies have written the year off as an an annus horribilis and only thinking about next year. Sooner or later the bigger companies will have to buy PCs but it looks like it will be much later.

 

Thin clients are thin on the ground

skeleton-woman-615While thin client set ups have been touted as the “next big thing” for nearly two decades, it would appear that no-one can make cash from them.

Bean counters at IDC said that the market leaders HP and Dell suffered double-digit shipment drops last year. Apparently companies are walking away from, or cancelling their thin-client projects. Ironically mostly before the poor economic climate, thin clients were touted as a cost-saving measure.

Thin client projects are being canned or postponed in the face of the faltering economic climate and reduced public budgets, IDC said as it warned that shipments in the sector shrank last year.

According to IDC, thin and terminal-client shipments fell 6.9 per cent to 5.08 million in 2015, with market leaders Dell and HP enduring double-digit drops.

To be fair it is not all doom. Thin-clients did better than PCs which fell 10.6 per cent last year.  IDC insists that the outlook for thin clients and virtual desktop infrastructure (VDI) remains favourable, although people have been saying that since networking became a thing.

Jay Chou, research manager, worldwide enterprise client device trackers at IDC said that while there was a certain amount of slowdown expected as many organisations had just refreshed their systems a year or two ago, the extent of economic and currency-related issues had a definite impact in the budget and timeline of other projects which were supposed to be in the pipeline.

“Nonetheless, awareness around VDI continues to improve, and IDC does expect an improved outlook ahead, especially as companies begin to think about moving beyond Windows 7.”

While the PC market may be consolidating into the hands of fewer players, the same cannot be said of thin clients, where market leaders Dell and HP lost market share hand over fist during the year.

The US duo’s collective share of thin-client shipments fell from 55.1 to 50.6 per cent between 2014 and 2015, with Dell seeing shipments drop 13.8 per cent and HP suffering a 15 per cent fall, IDC said.

NComputing came third as its shipments rose 12.8 per cent to 518,000, IDC said.

Microsoft’s cloud partners make a killing

cloud (264 x 264)Beancounters at IDC have been adding up some numbers and reached the conclusion that Microsoft’s cloud  partners are making a killing.

IDC and Microsoft released a report with the catchy title “The Booming Cloud Opportunity” which appears to be the first in a series. Book two will probably take place a few years after book one and feature some of the original characters.

It is based on detailed interviews with 25 partners with solid credentials, like Christopher Hertz of New Signature, Mark Seeley of Intellinet and Geeman Yip of BitTitan.

Basically it says that Microsoft’s cloud Partners have double the growth of those who are less-cloudy. IDC defines cloud partners as companies that get at least half of their revenues from the cloud. Of the 750 Microsoft partners they surveyed, about a fifth of them hit that mark. That top tier of cloud partners reported overall company revenue growth of 24 percent on average, while the rest saw growth of 12 percent.

Next it says that Cloud Partners have 1.5 the gross profit  of the less-cloudy . The figure for the cloud partner group is 41 percent gross profit, while the rest had 27 percent.

Apparently Cloud Partners have 1.8x the recurring revenue of the others. The cloud partners reported that 52 percent of their overall revenues, not just cloud revenues, came from recurring revenue sources. That compares to about 29 percent of revenues coming from recurring sources for the rest of the partners in the survey.

Other findings are that Cloud Partners sell $5.87 of their own offerings for every dollar of Microsoft Cloud Solutions. The rest of the surveyed partners sold $3.71 of their own offerings for every $1 of Microsoft cloud solutions. Importantly on this one, only a little over 400 partners answered.

The IDC report does warn that the surveys don’t always reveal causation.”There’s a lot going on inside all of these partner businesses that could account for the differences other than how much Microsoft cloud services the companies sell.

The report goes against the  popular channel opinion on cloud — that selling cloud services is a recipe for lower margins and lower profitability.