Tag: IDC

Server market tanks

Beancounters at IDC have added up some numbers and divided by their shoe size and worked out that the global server market has tanked for the second consecutive quarter,

Both revenues and shipments have fallen in the third-quarter.  Revenues declined 6.7 per cent year on year to $22 billion while shipments were down by 3.7 per cent to just under 3.1 million units.

Despite the decline, it was still the second-best quarter of volume shipments in history, IDC claims.

IDC a senior research analyst in infrastructure platforms and technologies at Paul Maguranis said: “In fact, third-quarter 2019 represented the second-biggest quarter for global server unit shipments in more than 16 years, eclipsed only by third-quarter of 2018. While the server market did indeed decline last quarter, next-generation workloads and advanced server innovation keep demand for enterprise compute at near historic highs.”

Security spending soars

Worldwide spending on security products and services will enjoy solid growth over the next five years according to beancounters at IDC.

According to the (IDC) Worldwide Semiannual Security Spending Guide, worldwide spending on security-related hardware, software, and services will be $106.6 billion in 2019, an increase of 10.7 percent over 2018. This amount will reach $151.2 billion in 2023 with a compound annual growth rate (CAGR) of 9.4 percent  over the 2019-2023 forecast period.

Private cloud infrastructure spending steady

While public cloud numbers appear to have fallen, the Private Cloud is still stable, according to IDC beancounters.

The analyst house found that private cloud hardware infrastructure spending had remained more stable, increasing in Q2 by 1.5 percent compared to the same period last year. IDC is expecting the public cloud market to cool over the rest of this year as the current market conditions continue.

Apple still the king of tablets

While it is having a miserable time at the moment, the fruity cargo-cult Apple retained its leadership in the EMEA tablet market, according to beancounters at IDC

The fruity cargo cult took a quarter of the total market share in second-quarter thanks to its detachables and the rebirth of the iPad mini.

Rival Samsung took second place, but saw a 13.4 per cent year-on-year decline, with third-place Huawei declining nearly 20 per cent, which the analyst attributed to falling consumer confidence due to its ban in the US.

The EMEA tablet market is predicted to decline by nearly 10 per cent overall in 2019, with the detachables and commercial segment expected to offset the decline in consumer tablets partially.

“The second half of 2019 will remain inhibited as slates continue to decline across regions,” said Nikolin Jurisic, product manager at IDC CEMA.

Global server market contracts for the first time in nine years

Beancounters at IDC have added up some numbers and concluded that vendor revenue in the global server market contracted for the first time after nine quarters.

Apparently, the second quarter of 2019 saw revenue decline by 11.6 percent year on year to just over $20 billion, which is the first time anything has fallen since the first quarter of 2016.

A slowdown in demand from cloud providers and hyperscale customers were the main reasons for the decline

All classes of the server were affected, with high-end systems revenue experiencing the most significant blow, contracting 20.8 per cent to $1.3 billion. Volume server revenue was down 11.7 per cent to $16.3 billion and mid-range server turnover was down 4.6 per cent to $2.4 billion.

Sebastian Lagana, research manager of infrastructure platforms and technologies at IDC said that things are rather different from a year ago when the server market realised unprecedented growth.

Customers are ready for SD-WAN

Beancounters at IDC have added up some numbers and concluded that customers are keen on the much-hyped SD-WAN tech.

The analyst house is expecting impressive growth in the SD-WAN infrastructure market with the enterprise segment of the networking market growing at a 30.8 percent compound annual growth rate between 2018 and 2023 to hit revenues of $5.25 billion.

IDC’s Network Infrastructure expert Rohit Mehra said that SD-WAN is one of the fastest-growing segments of the network infrastructure market and several factors were driving the growth. Traditional WANs were failing to meet the needs of digital businesses, “especially as it relates to supporting SaaS apps and multi- and hybrid-cloud usage”.

European CX market growing

Beancounters at IDC think there are strong prospects for the CX market in Europe, with the analyst house predicting a seven percent CAGR up to 2022.

When 2022 arrives, the market will be worth $128 billion globally.

The analyst outfit said that European verticals spending most on CX this year would be banking, retail and some parts of manufacturing. In the next couple of years, there will be a change in that order with retailers spending more on the technology.

The main drivers of CX spending improving customer care and support, help with digital marketing and order fulfilment. In the longer-term, there will be a growth in omnichannel content with the technology making it easier to make sure that whichever way a business interacts with the customer is kept at the same standard.

IT infrastructure revenues rising

Beancounters at IDC have added up some numbers and concluded that while IT infrastructure spending is slowing actual revenue is rising.

Non-cloud infrastructure sales are continuing to decline and any money being spent is going on servers, storage products and Ethernet switches for hosted environments.

However prominent hardware vendors and their channel partners will get to see cloud infrastructure revenues continue to increase and it is predicting that while total spending on cloud IT infrastructure by 4.5 per cent this year in response to slow growth in the market, somehow vendors will keep coining it in.

Server revenues doing ok

Beancounters at IDC have noted that while server numbers are down, sales revenues are doing OK thanks to higher ASPs.

A review of the global server market from IDC found that although demand had dropped year-on-year in first quarter by 5.1 percent the higher unit prices improved revenue by 4.4 percent.

Low-end and mid-range servers fared much better than higher-end products, which suffered a 24.7 percent decline, a second consecutive quarter of decline.

IDC predicts more digital transformation projects

Beancounters at IDC are forecasting that customers will be splash out on more digital transformation projects.

The analyst outfit said that spending on digital transformation will hit $1.8 trillion this year, an increase of 17.9 percent on 2018.

That growth is set to continue over the next few years and the money will be flowing across all vertical markets.

Big data and analytics revenue growing fast

Beancounters at IDC have been adding up some numbers and dividing by their shoe size and decided that Big Data is going to continue to get bigger.

IDC said that last year saw 12 percent growth over last year, and forecasts have that level, 13.2 percent on a compound annual rate, will continue through to 2022.

There’s more spending on private clouds

Beancounters at IDC think that spending on private clouds is about to increase as the world starts to lose interest in public cloud offerings.

IDC said that Cloud IT infrastructure revenues fell below the volume that headed into more traditional environments in the fourth quarter of last year.

The channel has already encountered many customers that have become disillusioned with the public cloud, mainly because they failed to foresee the costs involved, and has been providing ‘unclouding’ services to get user data and applications back into an on-prem environment.

Dell trolls rivals in advert campaign

Gray tin box shifter Michael Dell has been trolling the company rivals in a front page advertisement in the Wall Street Journal.

Michael Dell tweeted the ad, which displayed figures from analyst IDC, showing the vendor’s dominance in the external enterprise storage space against rivals NetApp, HPE and IBM.

PC market plagued by component shortages

The industry is going to be plagued by component shortages, macroeconomic and political factors across EMEA, according to IDC.

The analyst outfit’s latest quarterly PC tracker forecasting unit thought that sales across EMEA of 67.6 million in 2019. This is a 3.5 percent decline compared to the previous year.

Dell EMC on its way to challenging HPE

Dell EMC is closing the gap on Hewlett Packard Enterprise as EMEA’s top server vendor.

Beancounters at IDC have added up some numbers and divided by their collective shoe size and claimed that Dell EMC saw its server market share in EMEA increase just over three percentage points to 22.4 percent in Q2. HPE’s numbers were disappointing, and it declined over three per cent to 28.4 percent.

IDC senior research analyst Kamil Gregor said total spend for the quarter was up 28.9 percent year on year to $4.1 billion with HPE making up over a quarter of these sales. The number of shipments, however, declined 3.7 percent to 515,000 units shipped.

Some of the largest markets in Europe experienced shipment declines, with Germany seeing a drop of 14 percent and the UK a decline of 8.7 percent. These two regions, however, experienced revenue growth of 23.2 percent and 29.9 percent respectively as the average order of shipments rose.