Tag: revenues

Internet of things worth trillions by 2020

Internet of ThingsA forecast from the International Data Corporation (IDC) is predicting that the market for internet of things (IoT) elements will be worth $3.04 trillion in 2020, up from $1.3 trillion now.

IDC includes elements including hardware, software, services, connectivity and security in its report, and defines the IoT as a network of networks of uniquely identifiable nodes that communicate without people using IP (internet protocol) connectivity.

While the US market has taken the lead in the IoT, it will be outstripped by Western Europe and Asia Pacific in revenues and installed base as the decade continues.

IDC believes no one vendor will dominate the market but growth will depend on the coexistence of different vendors, service providers and system integrators to work to broadly similar standards.

The number of individual nodes worldwide is likely to be around 30 billion devices by 2020 and startups are going to be important as the IoT develops.

Euro semi sales shoot up

12-inch silicon wafer - Wikimedia CommonsThings are on the turn in the chip business, and it’s a turn for the better.

The European Semiconductor Industry Association (ESIA) said today that sales hit $3.231 billion in August, that’s up 10.9 percent compared to August last year.

Its figures represent a three month rolling average.

ESIA said the logic market was pretty strong – that continues a trend that emerged early this year.  MOS (metal oxide semiconductor) based microprocessors grew strongly compared to July. And flash and NAND memory also showed good performance compared to July.

The chip market is, of course, affected by exchange rates with trading in Euro and in dollars affecting the mix.  But, nevertheless, in August this year semi sales were 2.393 billion Euro – which represents a 0.4 percent decrease over July, said ESIA.

ESIA is bullish. It said worldwide sales for August 2014 amounted to a not insignificant $28.435 billion – up 9.4 percent compared to August 2013, and up 1.3 percent compared to July 2014.

Global telco revenues to stay flat

smartphones-genericWorldwide revenues for the telecoms industry are expected to stay mostly flat over the coming years, according to a report.

A deep decline in spending on voice services will be offset by growth in mobile and fixed broadband data services, according to analyst house Ovum. Total telco IT spending is expected to reach US$60 billion in 2017, at a compound annual growth rate (CAGR) of 0.6 percent between now and then. It will be emerging markets such as APAC, Middle East and Africa, and South and Central America that will drive top spending.

For North America, it’s predicted spending will run a CAGR of 0.8 percent to hit $17.5 billion by 2017.

Telcos will have to get their thinking caps on about tariffs and services to build revenues over the next five years. LTE, network optimisation and “creative” approaches to partnerships will become ways for businesses to save cash, according to report author Shagun Bali.

“Telcos need to monetise new business models, leverage customer data by investing in analytics, and define their response to over-the-top players,” Bali said.

Ovum has mapped the overall trend as reducing internal IT spending while increasing spending on external IT projects. Telcos will have to outsource maintenance of legacy systems, and make use of trusted partners that can provide expertise in segments such as big data analytics.

“The combination of middling profits, high capital requirements, high risk, and uncertain economic growth requires telcos to place their bets carefully, including investing in growing revenue streams and managing customer experience more than ever before,” Bali said. “The result is increased opportunities for the IT industry. In the long term, telcos will place more focus than they have before on software to drive innovation”.