The peripherals market continues to disappoint – declining 11.7% in the year to the end of March 2016 and by 8.9% to $53b in Q1 2016. Naturally the definition of ‘peripherals’ contains many different items, which we split into 6 classes (see Figure). This is a mature market with 70% of investments made in services and supplies. Printers (ink jet and laser) were just 15.1%, digital cameras 6.8% and other hardware (including mobile speakers, keyboards and mice) were 6.1%. You’ll want to learn more about how the vendors have been performing.
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Mobile device markets fall 2% in Q1 2016
It’s seems strange to report that the mobile device market is falling following years of disproportionate growth, but it is. Revenues fell 2% to $95b in the quarter and in the year by 3.5% to $376b for the year. I include basic and smart phones, smart tablets and wearables and IoT devices I my count (see Figure for a forecast to 2020). The problem here is that all product types apart from smart wearables and IoT devices are mature, with the focus of selling now on replacement phones and tablets for those who already use them. You’ll be interested in finding out more about the winners and losers among the suppliers and technologies. Read more »
The booming EU – and UK! – data center market
The data center market is booming in Q1 2016, having gown by 7% in the last year and despite Brexit it looks likely to contiue. It’s such an exciting subject that we’ve designed a continuous information service for industry business planners to gain essential insights and data from. For those of you who can’t wait, here are some highlights of the 60 pages of research we just published. Read more »
download ITCandor’s ‘EU data center impressions’ flyer
ITCandor has a continuous information service for executives of suppliers and user organisations in Europe. Each quarter you’ll receive 3 reports which size, discuss and analyse the martin in Europe. We are happy to customise our findings for other countries and regions on request.
HPE offloads Enterprise Services to CSC – jettisons traditional outsourcing
HP announced on Tuesday this week that it intends to spin off HP Services to US supplier CSC, The new company will be headed by CSC chairman, president and CEO Mike Lawrie. In the new organisation HPE’s leader Meg Whitman will have a seat on the board, with the other directors nominated 50:50 by HPE and CSC. HP acquired EDS in 2008 for around $13.9 billion (see my Figure for the combined revenues of EDS, CSC and HP Services). HPE claims it will save around $1b in the first year following a schedule which should see the deal completed in a year or so. You’ll want to learn more about the background history. Read more »
Could Brexit increase the taxation of the ITC industry’s £35b profits?
The IT and Communications industry is highly profitable for successful companies, with the smallest and largest enjoying the greatest profitability. In the UK we spent £146B on its products which created profits before tax of around £35B in 2015: an extra 10% of that collected by UK government could help out the struggling National Health Service for instance. It’s hardly surprising there hasn’t been more criticism from market research companies of large suppliers avoiding tax as they are often our customers. The Figure shows our estimates of the pre-tax profits of leading vendors in the UK in 2015. Read more »
Brexit – bad for the UK’s ITC market, says ITCandor survey
The survey shows that it would be better for the success of the ITC market if the UK remains part of the EU. If it leaves:
- You should lower your expectations for ITC spending in the UK, but not for the remaining EU markets,
- Those suppliers currently receiving subsidies from the EU will lose out,
- The UK government will collect more tax from multi-national suppliers, and
- The UK will have (even) closer ties to the US suppliers.
As you will read I believe things will be worse than that. Read more »
Verizon and Yahoo – what if?
Verizon recently bought AOL for $4.4B and Millennial Media for $250M. Adding Yahoo would help it build its online digital advertising further, allowing it to compete with market leaders such as Google and Facebook. Verizon’s deep experience as a mobile telecom service provider should enable it to enhance the search engine’s availability on smart phones and tablets of course. My charts here show the addition of the annual revenues and net profit of both since 2005. From a revenue point of view Verizon’s rise off-sets Yahoo’s fall, making the combination of both virtually level across the 11 years. Read more »
Brexit – good or bad? ITCandor research survey
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Brexit – the consequences for ITC markets
The UK accounted for 16% of total IT and communications spending in EMEA in 2015 – the second largest market after Germany. It is a potent mature market with strong ties to the US, the EU and EMEA, despite being largely devoid of indigenous vendors, plays a pivotal role in the industry. I thought it was time to look at the implications of its exit from the EU, which is a possible result from the referendum the Conservative government has tabled for June. Read more »
Cloud Computing in EMEA reaches €29.9B in 2015
I wanted to shares my cloud forecast and 2015 markets shares for EMEA with you. In 2015 the total grew by 37.0% in Euros (15.0% in $US) to reach €29.9B ($33.3B). The best performing subcategory was IaaS, which grew by 43.8% – followed by PaaS (41.4%): together these accounted for 6.1% of the total IT Service market in 2015. SaaS grew at 31.5% to reach €15.0B – taking 5.9% of the total Software market. This extraordinary growth (see Figure) will continue, with spending almost doubling to €54.4B in 2020.
Storage systems down 5% in 2015
Changes in storage systems are paramount in the development of modern datacentre computing – and yet the market continues to perform badly badly. The downturn in 2015 was 10.5%, making it the fourth year of decline. Customers didn’t spend more on raw storage in the year either – disk drives (-13.4%), DRAM (-12.4%) and Other (-16.5%) all fell. The only category to grow in the year was solid state NAND, which grew by 7.6%. The Figure shows the annual development of the storage market by type. There is some double counting here of course, because storage systems include the integration of drives and components from the other categories). You’ll be interested to look more closely at how the vendors are coping. Read more »
Network markets static in 2015
Network hardware is one of the largest IT markets in the world. It is split between offerings for Telcos/Service Providers and Enterprises. The former is twice the size of the latter -$116b v $52b in 2016. However it has been on a steeper downward slide over the last few years (see Figure). you’ll be interested in looking at the market players and shares. Read more »
Server revenues grow 6.2%, shipments 8.4% in 2015
For an update of this data please click here. Having detailed the market development of each of the client devices over the last few weeks, it’s time to turn to the datacentre. Servers are at the heart of enterprise computing and succeeded in growing both in units (8.4%) to 23.3m and revenue (6.2%) to $76.5b. This is the firs annual growth we’ve seen since 2011 – a welcome sign for the industry as a whole. I’m going to look at market shares, operating systems and virtualisation in this post. Read more »
Cloud services grow 20% in 2015 to reach $107B
Having had a look at client devices last week it’s time to focus on enterprise IT. I’m waiting for HP Enterprise to report its results today before looking at the hardware markets. Today’s subject is cloud services. I’m sure you’ll want to learn more about how things are developing. The Figure shows the annual revenues of all vendors in the three sub-markets: Infrastructure (IaaS), Platform (PaaS) and Software (SaaS) as a Service. In 2015 the market was worth $109B – 22% up on 2014. In the fourth quarter the market grew 28% to $31B. There was strong growth in IaaS (45%) and PaaS (40%), but less so in the SaaS market (11%). Read more »
PC Market down 3.8% in 2015
For an update of these stats please click here. It’s been a long time since PCs were the driving force of our industry. Nevertheless they remain second only to smart phones in terms of revenues and a major ecosystem for application developers and services companies alike. In 2015 the market for PCs was worth $160B – down 3.8%; unit shipments slipped by 1.9% to 235M, while the installed base was stable at 945M. It’s a more democratic market than many, with the top four vendors having similar market shares (see Figure). You’ll want to learn more about developments.
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Printer sales fell 14.5%, peripherals by 12.1% in 2015
For an update to this data click this. Do customers need traditional printers any more? Yes – but not in the same quantity as in previous years. In 2015 total spending declined by 14.5% to reach $34.5B. Unit shipments declined by 11.5% to 138M. It was a close tie for top position in 2015, with HP and Canon separated by only one tenth of a percentage (see Figure). Brother, Xerox, Ricoh and Kyocera took third to sixth positions respectively. I think it’s a good time to look at some of the developments here.
Gaming market down 4.5% in 2015
It’s been some time since we looked at gaming console markets, so I thought you’d like to get the latest on the developments there. In 2015 revenues were 4.5% down at $30.3B, with spending split 65:35 between software and hardware. In all there were 41.6M shipments, with an 89:11 split between consoles and handsets. Sony, Microsoft and Nintendo held 56%, 29% and 15% shares of the hardware market respectively.
Mobile devices – 3% revenue growth, 6% unit decline in 2015
It took many vendors by surprise when users began to prefer their mobile phones to PCs for accessing and interacting with the Internet. Over the last decade mobile devices of all sorts have outgrown all other hardware markets. You’ll want to learn more about the way this market is developing.
AMD ‘Magny Cours’ Processors Endorsed By HP, Dell And Acer At Launch
At the recent analyst event in Austin I met with AMD to discuss its plans for the server market in general and for its new ‘Magny Cours’ chips in particular. During the meeting we had a number of discussion with server vendors – ‘OEMs’ from an AMD perspective – who talked about how they were using the new components and what it was like to do business as a partner. Given all of the publicity surrounding endorsement of Intel’s new Nehalem EX chips, I thought it would also be interesting to see how AMD’s products are going to be positioned by its server partners. I’m publishing three papers to talk about the suppliers we heard from. In particular:
- HP in incorporating AMD processors in its Proliant servers
- Dell’s DCS in using AMD chips in Hyperscale HPC and Cloud Computing custom designs
- Acer in using AMD processors to build out from its PC success into the server business
Overall they gave a very positive endorsement, which leads me to believe that AMD will reverse its declining share following Intel’s Nehalem launch in April 2009. Each of these suppliers offers a different approach for AMD. In particular:
- HP has fully tested and certified AMD products in the past, is its biggest customer, will have the broadest set of announced 4000 and 6000 servers at launch and thinks AMD will become the ‘power performance’ leader
- Dell’s DCS will continue to use AMD products, thinks getting rid of 2 socket chips will help remove complexity, enjoys a positive working relationship with the company and thinks it will help with the ‘the number of threads, per Watt, per dollar’ problems his customers have
- Acer is using AMD chips in its new push into the server market, complementing the Intel products it launched at the end of 2009, will use a flexible chassis, focus more on entry level products, will build an exclusively indirect business and help AMD prove its ‘4 socket at a 2 socket price’ strategy
I believe that IBM – absent at launch – will certainly add its own AMD servers later in the year, but that these will take longer, due to the company’s advanced integration design activities. In 2010 it is no longer a case of one chip vendor taking out a massive lead on the other, although AMD’s concentration on simplification (‘democratising the 4 socket market’) and power/performance/price will secure its position within all server vendor portfolios.