Tag: Gartner

One in three jobs replaced by IT by 2025

rewardposterCrystal ball readers at analyst outfit Gartner have seen a future where robots and drones replace  a third of all workers by 2025.

At the start of its major US conference, the Symposium/ITxpo Gartner’s research director Peter Sondergaard predicted a future where a drone may be your eyes and ears.

In five years, drones will be a standard part of operations in many industries, used in agriculture, geographical surveys and oil and gas pipeline inspections, he said.

He also predicted a rise in the a “super class” of technologies that perform a wide variety of work, both the physical and the intellectual kind, said Sondergaard.

Machines, for instance, have been grading multiple choice for years, but now they are grading essays and unstructured text.

This cognitive capability in software will extend to other areas, including financial analysis, medical diagnostics and data analytic jobs of all sorts, Sondergaard said.

Gartner predicts one in three jobs will be converted to software, robots and smart machines by 2025. The new digital businesses require less labour and machines will be make sense of data faster than humans.

 

Gartner thinks of Internet of Thongs

LOD_Cloud_Diagram_as_of_September_2011While the Internet of Fangs is not with us yet, analysts at Gartner claim that the hype surrounding it has reached its peak.

Each year the research firm puts out a Hype Cycle of emerging technologies, in which it provides a report card for various trends and buzzwords.

This year the Internet of Thongs (IoT) tops the list above some other words such as wearable user interface and consumer 3D printing.

Gartner believes that emerging technologies go through a natural process in which they are triggered by some innovation, then they rise to a peak of inflated expectations.

Big G thinks that as the technologies mature, markets become hacked off that they failed to bring about a cure for cancer before they start to become mainstream and just part of everyday technology.

This year the list is topped by IoT, wearable user interfaces and natural-language question answering which are also just about at the top of their hype. All three of those technologies will be commonplace in the market within 5 to 10 years, Gartner predicts.

Some buzzwords do make it into the mainstream. Cloud computing was something that as just hype and talked about non-stop before it became real. Hybrid Cloud Computing is headed that way, but was still more hyped. Not to mention Chipzilla and the Vole.

Big Data and in-memory database management systems are just beyond the peaks of their hype, while gamification which is when you give rewards using game techniques is coming down from its peak hype. Last year, big data topped the list as the most buzzworthy of tech terms.

3D printing appears everywhere.  Consumer 3D printing is at the peak of its hype, while enterprise 3D printing and 3D scanning are both maturing toward mainstream, according to Gartner.

Gartner has a look that the buzzwords of tomorrow too. These include autonomous vehicles, predictive analytics, smart robots, holographic displays, software-defined anything, quantum computing and the connected home.

Gartner said that its hype graph is useful for companies to work out when it is the best time to release their product.

What worries us is when the Tibetan monks jump on the bandwagon and we get the Internet of No-Things.

Cloud Distribution signs A10

Adam Davison, Cloud DistributionValue added distributor Cloud Distribution said it has signed up A10 Networks.

A10 produces high performance products for accelerating, optimising and securing apps cost effectively.

Adam Davison, director at Cloud Distribution said that the Application Delivery Controller market has gone through a shake up after Cisco discontinued its ACE product.

And, he added, a number of enterprise customers need to refresh existing IT products that have now reached the end of their lives and have discontinued support.

“The recent addition of A10’s dedicated DDoS offering is an added bonus for our partners because it broadens the market opportunity with an enlarged portfolion of products,” he said.

According to Gartner figures, the Application Delivery Controller market and will doubtle to be worth $2.9 billion in the next few years.

BYODs mean IT departments have lost control

A monolithGartner said that while many businesses think it’s time for them to go mobile, there are obstacles to that move and many don’t know how to proceed.

But, said Darryl Carlton, a research director at the market research company, the key to success is appplications architecture and design,

“Designing your applications to meet the demands of BYOD is not the same as setting usage policies or having strategic sourcing plans that mandate a particular platform,” he said. “BYOD should be a design principle that provides you with a vendor neutral applications portfolio and a flexible future-proof architecture. If the applications exhibit technical constraints that limit choice and limit deployment, then the purchasing policy is irrelevant.”

IT departments are losing control of tools accessing corporate systems and data because of changes in the workforce and processes outside organisations’ boundaries.

“The community of users has expanded to include suppliers, customers, employees and a very broad range of stakeholders,” Carlton said. “We are no longer developing applications for deployment to an exclusive user base over which we exert standards and control.”

Partly, IT departments don’t realise that there are users that IT departments can’t control, and that means standards can’t be dictated and proprietary controls can’t be imposed.

“For CIOs to consider BYOD activities within their organization to be a temporary problem generated by a few disaffected employees would be a tragic mistake. This is a leading indicator of change for which an appropriate response is required. Reasserting control is not an appropriate response. This is a permanent and irreversible shift in the way that IT is procured and implemented to support the organisation, suppliers and customers.”

Gartner sees more gloom in PC market

pc-sales-slumpShipments of smartphones and tablets are skyrocketing, while PC shipments are going off a cliff – that pretty much sums up every single market research report over the last couple of years. Gartner’s latest report is just more of the same.

Big G estimates tablet shipments will grow 53.4 percent this year, hitting 184 million units. At the same time, shipments of PCs will be down 11.2 percent compared to 2012. It’s no surprise, but it’s worse than what Gartner forecasted back in April, when it said PC sales would decline 7.3 percent.

The trouble for PC churners is that old form factors are dying, but at the same time new form factors such as hybrids and ultrathins aren’t growing fast enough to balance things out. Even when shipments of ultraportables like Windows 8 tablets are thrown into the mix, the decline is still 8.4 percent. However, Gartner still believes new form factors will help in the long run. Shipments of traditional desktops and laptops are expected to total 303 million units this year.

Tablets are evolving as well and new form factors are emerging. In the high-end we’re seeing more elaborate designs with proper mechanical keyboards, although OS constraints are limiting their success. At the bottom, shoppers are picking up cheap 7-inch tablets like the Nexus 7 and Amazon’s Kindle Fire series. Even cheaper devices are available. Last year was all about the $199 price point introduced by the Nexus 7, while this year is shaping up to be the year of the $99 white-box tablet.

Tablets aren’t just hurting PC sales, cheap and cheerful tablets are also expected to cannibalize holiday smartphone sales. Smartphone penetration is already relatively high and western markets are still in love with pricey high-end devices, so a cheap tablet seems like a good holiday gift idea.

The most impressive figure in the report is the combined shipments estimate. The world will gobble up a staggering 2.32 billion phones, tablets and PCs this year.

Smartphones overtake feature phones

smartphones-genericSmartphone sales are up again, but growth is slowing. The worldwide market gobbled up 435 million phones in the second quarter, up 3.6 percent over the same period last year. However, worldwide smartphone sales have now reached 225 million units, up 46.5 percent from a year ago.

It was only a matter of time before smartphone shipments outpaced feature phone shipments and according to Gartner, this happened last quarter. Feature phone, or dumb phone shipments totalled just 210 million units, down 21 percent year-on-year.

“Smartphones accounted for 51.8 percent of mobile phone sales in the second quarter of 2013, resulting in smartphone sales surpassing feature phone sales for the first time,” said Anshul Gupta, principal research analyst at Gartner. Asia/Pacific, Latin America and Eastern Europe exhibited the highest smartphone growth rates of 74.1 percent, 55.7 percent and 31.6 percent respectively, as smartphone sales grew in all regions.

Samsung still reigns supreme, with 71.4 million units shipped last quarter and a 31.7 percent market share. Apple ranks second with 31.9 million units, but it is losing market share fast. LG and Lenovo had a very good quarter, shipping 11.5 and 10.6 million smartphones respectively. ZTE ranked fifth with 9.7 million units. Nokia, HTC, Blackberry and Sony are no longer in the top five. However, the top five vendors accounted for just 60 percent of the market, while 40 percent went to smaller outfits, including an ever increasing number of Chinese white-box manufacturers.

gartner-smartphones-august2013

Gartner found that much of Samsung’s demand is now coming from mid-tier products and high-end devices with ASPs up to $400. It concluded that Samsung needs to do more to make its mid-range offering more appealing.  Oddly enough Apple also saw a dip in ASP, which is currently at the lowest level since 2007. This is the result of surprising strong sales of the iPhone 4 in some markets. Apple has recognized the trend and it plans to introduce a new, cheaper iPhone next month.

But Lenovo is the name to look out for. It’s making a killing in the dreary PC market and it’s doing even better in smartphones, although much of its effort goes unnoticed in the west. Lenovo almost doubled its share over the last 12 months and the company plans to bring its smartphones to western markets soon, possibly even next year.

Android remains the dominant operating system, with a 79 percent share, up from 64.2 percent a year ago. Apple’s iOS ranks second with a 14.2 percent share, down from 18.8 percent in Q2 2012. Microsoft gained some ground, but Windows Phone 8 still has a tiny share, 3.3 percent, up from 2.6 percent last year. Blackberry’s share halved to 2.7 percent and the Canadian company is now looking for a buyer. As with all things Blackberry, the decision comes three years too late.

Pricey PCs kill any hint of recovery

pc-sales-slumpPC shipments have been slow for months and they should start bottoming out soon, but the PC cause is being undermined by pricey laptops, analysts believe. A new breed of high-end designs based on Haswell parts is shipping, but their prices seem out of touch with reality. 

Buyers just don’t want to pay the premium for new chips, touchscreens or new form factors – and that premium can be quite steep. Most new Haswell laptops and ultrabooks cost a lot more than the average budget laptop and quite a few of them are priced north of £1,000.

“The thought that you can sell a $1,400 notebook is ridiculous. The mess is partly credited to Windows 8,” said Roger Kay, president and principal analyst at Endpoint Technologies Associates, reports IDG News Service. “In their bones they don’t get it. They refuse to deal with the reality of what’s going on.”

Mikako Kitagawa, research analyst at Gartner, believes laptop prices have stabilized and may even creep up. PC vendors are trying to position laptops as premium products compared to tablets, which means they are more likely to focus on high-end and mid-range models, with higher margins.
This may leave more room for cheaper brands, who could focus on entry level laptops, but then again such laptops are experiencing high cannibalization rates from tablets, so the trend is a mixed bag at best. Still, someone always finds a way to make the most of a crisis and we reckon Chromebook makers could do well in such a climate.

However, things aren’t that great in the high-end, either. Now that most people are used to dirt cheap laptops and equally cheap tablets, convincing them to pay more for “premium” models won’t be easy.

Other than prestige or brand snobbery, it’s really hard to make a convincing case for high-end laptops right now. There will be no shortage of executives willing to pay £1,000 or more for a stylish piece of kit, or enthusiasts who go for even pricier, boutique offerings. However, most users will probably be better off buying a budget model for £500 and spending the rest on a tablet, or a vacant apartment complex in Spain.

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.