The market for computer peripherals in the year to the end of June it was worth $245b. Read more »
PC market maturity drives new supplier business models
The PC market is now mature with the – slowly declining – worldwide installed base of around 860 million being kept level through shipments of between 55k and 60k per quarter. My Figure above shows the quarterly growth rates of the installed base, revenues (in constant dollars) and unit shipments from 2004 to 2019. Read more »
Storage systems – calm in a stormy storage sea
Spending on storage systems has remained virtually level for number of years, seemingly unaffected by the significant changes in the market mix of raw storage devices. My Figure above shows spending trends on storage systems, spinning disk drives, NAND solid state disk and DRAM memory devices. In the year to the end of June 2019 the market was worth $33.1b and in the second quarter $8.1b – down 2% and 8% respectively on the previous annual period. Read more »
Server market takes a pause in 2019 – still dominated by Windows and x86
The server market took a pause in the last year – spending for the year was down 1% at $81b, while in the quarter it was down 11% at $19b. This is not a sign of decline in an enterprise market being overcome by cloud computing; rather it shows a return to normal levels following the spate of new processors and scarce and expensive memory and storage devices the previous year. Read more »
Network spending at $186b – service providers beat enterprise customers
The network hardware market was worth $186 billion in the year to the end of June – growing by 5%. It is split by customer and product type, with service provider networks growing by 5% and enterprise ones by 4% to $131b and 55b respectively. In the quarter growth was 1% (to $49b) in total; service provider networks grew by 2% to $35b, while enterprise spending remained level at $14b. Read more »
Infrastructure software – largest part of enterprise and second largest software category
The software market is worth over a trillion dollars, but is quite dissipated in terms of vendor performance – the top 7 vendors only took 13.9% of the spending in the year to the end of June 2019. Applications accounted for the majority (52.3%) of the spending to which we could add the 11.9% SaaS spending. Either way infrastructure software is the second largest type, accounting for 17.9% ($198b) in the last year (see my Figure above), which gives market shares by type and the top 7 vendors… and this only covers part of the market because Open Source projects account for a significant amount, which can’t be measured by vendor revenues. In particular docker is perhaps the most important software house, with an influence that goes far beyond its own business. Read more »
The gaming market waits for new Sony and Microsoft consoles
The gaming console and software market is stochastic – the success of the three platform players and the handful of software houses they licence enjoy rapid growth when a new console is released and a slowly decline in business in the quarters beforehand. In the second quarter of 2019 Nintendo is still enjoying the extra business in brought in when in launched the Switch. In the case of both Microsoft and Sony they are maintaining their business largely through software and upgrades to ageing consoles. Things will change significantly with the launch of their new products – most possible next year. Read more »
Mobile device market down 8% to $392b – what’s the next big thing?
The mobile device market is one of the largest in the IT industry. In the second quarter spending worldwide fell by 8% to $86.6b (as it did in the year to June – to $392b); unit shipments were down by 3% to 354m in the quarter and by 5% to 1.519b. The installed base stood at 3.5b at the end of June – 4% down on the previous year. Despite these falls, it’s staggering to think that this business is shipping computerised devices to the equivalent of a quarter of the world’s population on average, even there remain areas of the world in which penetration is relatively low. Read more »
Cloud services $246 billion and still growing at 25%
Cloud computing services continue to grow apace (see my Figure above for the quarterly size of the market by type since 2005). In the year to the end of June spending grew by 25% to $246b and in the quarter, by 39% to $72.4b. Read more »
Microprocessor chip sales $317 billion – highly profitable, but sluggish
In the year to the end of June 2019 the worldwide microprocessor chip market was worth a staggering $317 billion. Sales have been somewhat cyclical, with declines in the first two quarters of 2019 balancing the strong growth in 2018. She my Figure above for quarterly revenue and unit shipment growth by quarter since the beginning of 2011. Read more »
IBM Launches the z15 and LinuxONE III
Yesterday IBM launched the z15 mainframe and LinuxONE III. In this post I look at the new mainframe features and positioning, which – coupled with the pent-up demand the expectation of the new kit has created – will push sales up in coming quarters significantly. Read more »
IBM launches the DS8900F – 2,320k IOPS with encryption built in
IBM launched its DS8900F storage systems yesterday – high-end products which are designed to work securely and at very high speeds when coupled with its mainframes, although they could also be used with other suppliers’ high-end servers. Coincidentally it’s an all-flash device, although IBM isn’t making much fuss about that in the announcement. The launch coincides with the introduction of its z15 server, which I am also on this site. IBM’s storage division is constantly expanding its market into cloud, software and OEM business; this announcement is about securing its important customer base of Financial Services and Government organizations and winning back some of those who tie other vendor’s storage to its mainframes. Read more »
IBM hones its storage for hybrid multi cloud solutions
The adoption and spending on enterprise IaaS and PaaS services continues to rise (see my Figure for the leading supplier revenues on a rolling 4 quarter basis). The question is no longer ‘if’, but ‘how’ to use them effectively, which requires a lot of internal work to bridge the major differences in how these services work and are managed in comparison with traditional on premise enterprise solutions; IBM has continued to provide extensions to its offerings (both software and hardware) to make the process easier and make some money in the process in its latest announcements made today. Read more »
Europe ITC – €1.6T revenue, €160B net profit, 6m workers
The ITC market in Europe was worth €1.6 trillion in the year to the end of March 2019, with total net profit of €160 billion and a workforce of 6 million. Read more »
Europe ITC market – €2.1 trillion, 9% growth in 2021, but still falling behind
Europe is a continent of many nations, natural languages and currencies. Uniting it is an on-going project begun after the second world war to create stability and prevent it (specifically Germany and France) from being the origin of future global conflict. The EC and latterly the EU corralled countries together in a common trading block. The fall of communism led to an extension eastwards with large countries such as Poland, the Czech Republic, Romania, Poland and Bulgaria joining, giving millions of people the chance to share in the economic benefits. Read more »
Brexit uncertainty hits UK IT and comms spending
Nothings kills a market than uncertainty… and we’ve got lots of that in the UK following the referendum in June 2016 to leave the EU and the abject failure of the Conservative party politicians to deliver it. I want to share some of my research on IT and communications spending to show the result in this important part of the UK economy. My Figure above shows the growth rate of spending between Q2 2016 (when the referendum took place) and Q1 2019. Read more »
IBM 2019 strategy – running towards the hard things
IBM gathered a set of industry analysts together in Milan to discuss its strategy. Having made many announcements earlier in the year at its Edge conference, it chose not to cover much in the way of systems and software news; instead it drew a picture of how it’s helping its customers to leverage the newest technology to compete more effectively in a world becoming ever more ‘digital’. Read more »
HPE to acquire Cray – more science for your commerce
HPE announced last month that it intends to acquire Cray Computers for $1.3 billion. As when adding SGI in 2016 HPE will not add much server revenue through the move (see my Figure). Read more »
Huawei at the centre of the global/national 5G battlefield
5G mobile communications will be faster, deeper and wider than 4G, enabling new applications and is being tested in many countries planning to deploy in the next few years. Huawei is the world’s biggest supplier of Service Provider networks and leading developer and supplier of 5G base stations used by mobile telco operators – ahead of European suppliers Ericsson and Nokia. In 2018 it signed 30 contracts and shipped 40k base stations in this new market. Read more »
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