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Tag: IDC

  • Shared Cloud Infrastructure Spending Poised to Surpass Non-Cloud for the First Time

    Shared Cloud Infrastructure Spending Poised to Surpass Non-Cloud for the First Time

    According to a new report, cloud shared infrastructure spending in 2022 is poised to surpass spending for non-cloud IT infrastructure for the first time ever.

    Companies have been racing to embrace cloud computing, with the pandemic and remote work being a major accelerator. The top three providers have seen massive growth, but spending in the general market has continued at an impressive pace. According to IDC, shared cloud infrastructure spending will surpass non-cloud spending for the first time ever in 2022.

    “Spending on shared cloud infrastructure reached $12.5 billion in the quarter, increasing 15.7% compared to a year ago,” the company writes. “IDC expects to see continuously strong demand for shared cloud infrastructure with spending expected to surpass non-cloud infrastructure spending in 2022 for the first time. Spending on dedicated cloud infrastructure increased 20.5% year over year in 1Q22 to $5.9 billion. Of the total dedicated cloud infrastructure, 47.8% was deployed on customer premises.”

    As we covered yesterday, a report from Synergy Research Group shows that the top three providers — AWS, Microsoft Azure, and Google Cloud — accounted for 65% of what was spent on cloud computing in general in the first quarter of 2022. IDC’s report is further good news for the Big Three, as Synergy concluded they would continue to dominate the market for the foreseeable future.

  • Salesforce Economy to Create 9.3 Million Jobs, $1.6 Trillion in Revenue by 2026

    Salesforce Economy to Create 9.3 Million Jobs, $1.6 Trillion in Revenue by 2026

    A new report is demonstrating the breadth of the current digital transformation, claiming the Salesforce economy will create 9.3 million jobs and $1.6 trillion in revenue in the next five years.

    Salesforce is the leading CRM provider in the world, and recently acquired Slack, one of the leading corporate messaging platforms. Salesforce has gone all-in on the hybrid/remote workplace, and aims to be the “digital HQ” for its customers. CEO Marc Benioff is a firm believer that employees “can be successful from anywhere,” and Salesforce is aggressively positioning itself as the company that can make that happen.

    A new study by IDC, shows Salesforce is doing something right, as the company and its ecosystem partners “will create 9.3 million new jobs and $1.6 trillion in new business revenues worldwide by 2026.” Equally impressive, for every $1 Salesforce makes, its partner ecosystem will make $6.19.

    The company attributed its “digital HQ” strategy as a key to IDC’s findings. IDC predicts that cloud-related tech will make up 27% of digital transformation IT spending in 2022, and grow to 37% in 2026. This trend is being driven by the remote work transition initially sparked by the COVID-19 pandemic, and Salesforce is helping its customers make that transition smoother.

    In fact, IDC found that Salesforce solutions had helped 47% of customer respondents expand their workforce to include more suburban and rural areas. In addition, 38% were able to expand their workforce into new demographics, such as stay-at-home parents who would otherwise not be able join the workforce, and 36% are able to support more flexible work environments.

    “The Salesforce partner ecosystem extends the power of Salesforce to companies of all sizes, across industries and helps make customer success possible,” said Tyler Prince, EVP, Alliances & Channels, Salesforce. “As Salesforce grows, so do our partners — and we are committed to providing our expanding partner ecosystem with the tools needed to succeed in the jobs of the future.”

  • NTT Launches Private 5G Network-as-a-Service

    NTT Launches Private 5G Network-as-a-Service

    Japanese telecom company NTT has launched the first global private 5G Network-as-a-Service.

    5G is the next evolution of wireless technology and promises to revolutionize multiple industries. The technology offers speeds measures in gigabits, in some cases far exceeding what some businesses have access to with traditional internet options.

    While 5G is being hyped in the cellphone market, many see it meeting its true potential in the business and enterprise arena. One such application is private 5G networks, combining the speed of 5G with the security of a private network.

    NTT has now launched the first global Private 5G Network-as-a-Service, providing end-to-end management and a greater ROI. The service can be delivered via the cloud, on-premise or at the edge.

    “As data and mobility become more critical to business operations, 5G will enable enterprises to reinvent business operations. With faster speeds and more data, 5G will facilitate advances in artificial intelligence, automation, and IoT,” said Eric Clark, NTT Data Services North America Chief Digital and Strategy Officer. “How a company collects, stores, and uses that data in real-time will be critical to success, and NTT is well positioned to guide our clients on this journey.”

    The service is already winning high praise from NTT partners.

    “As a key partner in our digital transformation journey, NTT has an impressive track record of building and supporting new technologies that help CXOs solve critical business challenges,” said Javier Polit, Chief Information & Global Digital Services Officer of Mondelēz International. “NTT’s unique approach to Private 5G offerings provides the kind of agility and insight that we will need to further accelerate our business.”

    “The private 5G technology has the potential to fundamentally change the way enterprises drive digital transformation,” said Ghassan Abdo, Research Vice President from IDC. “NTT has a strong track record of focusing on breadth of service, and NTT P5G capabilities extend far beyond basic connectivity to offer a comprehensive suite of services geared toward important business outcomes.”

  • Cloud Computing Could Eliminate 1 Billion Metric Tons of CO2 Emissions by 2024

    Cloud Computing Could Eliminate 1 Billion Metric Tons of CO2 Emissions by 2024

    International Data Corporation (IDC) has published new research that indicates cloud computing could eliminate 1 billion metric tons of CO2 emissions by 2024.

    Climate change is increasingly coming front-and-center as an issue for governments and companies alike. One of the promises of cloud computing is the potential to be more environmentally friendly.

    IDC has quantified just how much cloud computing could positively impact the environment, concluding it could eliminate 1 billion metric tons of CO2 emissions between 2021 and 2024.

    Much of this is due to the increased efficiency that comes with aggregated computing resources, and the ability to use economy of scale to improve cooling and power utilization. Another important factor is the ability of cloud computing to shift workloads around the globe, including to areas where renewable energy are more widely used.

    “The idea of ‘green IT’ has been around now for years, but the direct impact of hyperscale computing can have on CO2 emissions is getting increased notice from customers, regulators, and investors and it’s starting to factor into buying decisions,” said Cushing Anderson, program vice president at IDC. “For some, going ‘carbon neutral’ will be achieved using carbon offsets, but designing datacenters from the ground up to be carbon neutral will be the real measure of contribution. And for advanced cloud providers, matching workloads with renewable energy availability will further accelerate their sustainability goals.”

    Cloud computing has already been kicked into overdrive as a result of the pandemic, enabling remote workers to stay productive regardless of their location. IDC’s latest report adds further impetus to cloud adoption, making it the responsible option for climate-friendly companies.

  • Oracle Unveils Roving Edge Devices to Bring Hybrid Cloud to the Edge

    Oracle Unveils Roving Edge Devices to Bring Hybrid Cloud to the Edge

    Oracle has unveiled its Roving Edge Devices (REDs) to help customers bring the power of the cloud to the edge.

    Edge computing is becoming more cortical to organizations across a variety of industries, providing the ability to process data at or near the point of collection. Edge computing is especially important in industries where latency is critical, such as autonomous driving, medical applications and more.

    Oracle’s REDs are ruggedized, portable, scalable server nodes designed to help organizations run cloud applications in the most demanding environments and locations.

    “Customers want choice when it comes to running workloads in the cloud. Each customer has different requirements based on data sovereignty, scale, or wanting the full experience of a public cloud on-premises with all of Oracle’s cloud services. Oracle Roving Edge Infrastructure is the latest example, delivering core infrastructure services to remote locations,” said Clay Magouyrk, executive vice president, Oracle Cloud Infrastructure. “Oracle’s hybrid cloud portfolio essentially delivers a cloud region wherever and however a customer needs it.”

    “With Oracle Roving Edge Infrastructure, Oracle yet again broadens its hybrid cloud portfolio by giving customers a taste of its public cloud wherever they may need it,” said Sriram Subramanian, Research Director, IDC. “Oracle designed its cloud infrastructure portfolio to make it as easy as possible for customers to move workloads to the cloud. Oracle Roving Edge, along with other offerings of the Oracle Cloud portfolio, gives customers multiple deployment and control options to run their most important workloads.”

    Oracle has been working to improve its position among the major US cloud providers. AWS currently sits in the top spot, followed by Microsoft and Google. Innovative solutions like REDs could help the company make up ground.

  • Pandemic Has Driven Digital Transformation Into Every Corner of the Enterprise

    Pandemic Has Driven Digital Transformation Into Every Corner of the Enterprise

    SAP announced that a new IDC economic impact model predicts the revenue SAP partners generate will nearly double over the next four years.

    “The pandemic has driven digital transformation into every corner of the enterprise to allow businesses to adapt and continue operating as usual,” said Steve White, program vice president, channels and alliances, IDC. “As the economic situation continues to unfold and businesses move their focus from resiliency to recovery, those that leverage digital and cloud-based solutions will be more agile and future-proof, and we’re seeing that acknowledgment drive significant adoption.”

    SAP commissioned the research to explore the impact of the current economic landscape on the partner ecosystem. The data shows that due to the pandemic-driven increase in remote work, digital transformation efforts are advancing, and companies are expected to spend more on cloud-based solutions. This translates into a $204.4 billion cloud market opportunity for SAP partners from now until the end of 2024. This cloud revenue figure represents 68% of the total net-new opportunity for our partners over that period of time.

    “This research confirms the vast and continually growing market opportunity for SAP partners,” said Karl Fahrbach, chief partner officer, SAP. “SAP’s next-generation partnering movement drives partners’ sustained growth by establishing partner-centric sales and service and connecting with customers in new ways across their life cycle. This higher level of ecosystem engagement can increase customer satisfaction, lead to faster time to value and enhance customer lifetime value.”

    https://news.sap.com/wp-content/blogs.dir/1/files/SAP_IG_US46867020.pdf

  • IBM, ServiceNow In New AI Partnership

    IBM, ServiceNow In New AI Partnership

    IBM and ServiceNow are partnering to provide enterprise solutions that utilize AI to automate IT operations. The new joint solution combines IBM’s AI‑powered hybrid cloud software and professional services to ServiceNow’s intelligent workflow capabilities and IT service and operations management products. The solution raises up deep AI‑driven insights from their data and then recommends actions for IT organizations to take that help them prevent and fix IT issues at scale.

    “AI is one of the biggest forces driving change in the IT industry to the extent that every company is swiftly becoming an AI company,” said Arvind Krishna, Chief Executive Officer, IBM. “By partnering with ServiceNow and their market-leading Now Platform, clients will be able to use AI to quickly mitigate unforeseen IT incident costs. Watson AIOps with ServiceNow’s Now Platform is a powerful new way for clients to use automation to transform their IT operations.”

    “For every CEO, digital transformation has gone from opportunity to necessity,” said ServiceNow CEO Bill McDermott. “As ServiceNow leads the workflow revolution, our partnership with IBM combines the intelligent automation capabilities of the Now Platform with the power of Watson AIOps. We are focused on driving a generational step improvement in productivity, innovation, and growth. ServiceNow and IBM are helping customers meet the digital demands of 21st-century business.”

    ServiceNow says that in today’s technology‑driven organization, even the smallest outages can cause massive economic impact for both lost revenue and reputation. They note that this partnership will help customers address these challenges and help avoid unnecessary loss of revenue and reputation by automating old, manual IT processes and increasing IT productivity.

    Here is what IBM and ServiceNow are planning:

    • Joint Solution: IBM and ServiceNow will deliver a first of its kind joint IT solution that marries IBM Watson AIOps with ServiceNow’s intelligent workflow capabilities and market‑leading ITSM and ITOM Visibility products to help customers prevent and fix IT issues at scale. Now, businesses that use ServiceNow ITSM can push historical incident data into the deep machine learning algorithms of Watson AIOps to create a baseline of their normal IT environment, while simultaneously having the ability to help them identify anomalies outside of that normal, which could take a human up to 60% longer to manually identify, according to initial results from specific Watson AIOps early adopter clients. The joint solution will position customers to enhance employee productivity, obtain greater visibility into their operational footprint and respond to incidents and issues faster.

    Specific product capabilities will include:

    • ServiceNow ITSM allows IT to deliver scalable services on a single cloud platform estimated to increase productivity by 20%.
    • ServiceNow ITOM Visibility automatically delivers near real‑time visibility from a native Configuration Management Database, into all resources and the true operational state of all business services.
    • IBM Watson AIOps uses AI to automate how enterprises detect, diagnose, and respond to, and remediate IT anomalies in real time. The solution is designed to help CIOs make more informed decisions when predicting and shaping future outcomes, focus resources on higher‑value work and build more responsive and intelligent applications that can stay up and running longer. Using Watson AIOps, the average time to resolve incidents was reduced by 65 percent, according to one recent initial proof of concept project with a client.
    • Services: IBM is expanding its global ServiceNow business to include additional capabilities that provide advisory, implementation, and managed services on the Now Platform. Highly‑skilled IBM practitioners will apply their expertise to facilitate rapid delivery of valuable insights and innovation to clients. IBM Services professionals also will introduce clients to intelligent workflows to help improve resiliency and reduce IT risk. ServiceNow is co‑investing in training and certification of IBM employees and dedicated staff for customer success.

    “Businesses are facing increased pressures to match the digital pace of a cloud‑first market in order to meet the demands of their customers,” said Stephen Elliot, program vice president, DevOps, and Management Software, IDC. “The C‑ suite is transforming workflows to deliver insights and automation for more efficient customer engagement models and cost containment strategies for the business while simplifying IT operations and increasing collaboration between IT and business stakeholders.”

  • Verizon Future-Proofs Network With Quantum Key Distribution

    Verizon Future-Proofs Network With Quantum Key Distribution

    Verizon has become the first wireless carrier to pilot the use of quantum key distribution (QKD) to help secure its network.

    Quantum key distribution is a type of cryptography that relies on the principles involved in quantum mechanics, and specifically quantum entanglement. As a result, because information is transmitted in a quantum state, it’s impossible for a third-party to snoop on the transmission without being detected. This makes QKD one of the only types of encryption that is future-proofed in a world where quantum computing will render other forms of encryption obsolete.

    Verizon has now demonstrated how QKD can be used to protect its network. Quantum keys were created and exchanged over a QKD network and used to encrypt video streams. The recipient was able to watch the videos in real-time, while any hackers would be instantly detected.

    “We continue to innovate and discover new ways to ensure safe networks and communications down the road for both consumers and enterprises,” said Nicki Palmer, chief product development officer at Verizon. “In testing advanced security technologies, our QKD trial demonstrates how quantum-based technology can strengthen data security today and in the future.”

    “The use of quantum mechanics is a great step forward in data security,” said Christina Richmond, analyst at IDC. “Verizon’s own tests, as well other industry testing, have shown that deriving “secret keys” between two entities via light photons effectively blocks perfect cloning by an eavesdropper if a key intercept is attempted. Current technological breakthroughs have proven that both the quantum channel and encrypted data channel can be sent over a single optical fiber. Verizon has demonstrated this streamlined approach brings greater efficiency for practical large-scale implementation allowing keys to be securely shared over wide-ranging networks.”

  • Coronavirus: IDC Forecasts IT Spending Will Take a Hit

    Coronavirus: IDC Forecasts IT Spending Will Take a Hit

    International Data Corporation (IDC) is projecting the coronavirus outbreak will have a significant impact on IT spending during 2020.

    According to the report, the IDC sees hardware spending taking the biggest hit during the first half of the year, with software and services also being impacted. Pessimistically, IT spending growth could drop to as low as 1%, as opposed to the more than 4% growth originally projected.

    “The situation is extremely fluid,” said Stephen Minton, vice president in IDC’s Customer Insights & Analysis group. “Our monthly data and surveys are clearly pointing in one direction, but it’s still early to understand the full impact of the coronavirus crisis across all sectors of the economy. We are using scenario models to illustrate that forecasts have a wider range than usual, and the downside risks in those models seem to be increasing every day. But the duration of the crisis remains a big unknown and will go a long way in determining overall market growth for the year as a whole.”

    “The pessimistic scenario is not a worst-case scenario,” added Minton. “Things are moving so quickly that we need to constantly recalibrate our assumptions and expectations, but the pessimistic scenario reflects an IT market in which weaker economic growth translates into weaker business and consumer spending across all technologies over the next few quarters. Things could get worse, but hopefully not.”

  • Google Cloud Buys Cloud Migration Firm Cornerstone Technology

    Google Cloud Buys Cloud Migration Firm Cornerstone Technology

    Google Cloud has acquired Cornerstone Technology, a firm that helps companies migrate from mainframes to the cloud.

    The move comes as Google Cloud is working to move up from the number three cloud provider in the U.S. CEO Thomas Kurian has made it a goal to move into at least the number two spot within five years. Just days ago, news broke that Google Cloud was reorganizing and eliminating a number of roles in an effort to better streamline operations.

    Purchasing Cornerstone Technology makes sense for the company, as Cornerstone specializes in helping companies modernize their infrastructure and applications, moving from legacy hardware to cloud services.

    “Their capabilities will form the ‘cornerstone’ of our mainframe-to-GCP solutions, and customers are able to take advantage of these new capabilities now through our Professional Services Organization and our partner network,” writes Howard Weale Director, Transformation Practice.

    News of the purchase was welcomed by both customers and analysts alike.

    “Easy mainframe migration will go a long way as Google attracts large enterprises to its cloud,” said Matt Eastwood, Senior Vice President, Enterprise Infrastructure, Cloud, Developers and Alliances, IDC. “Google Cloud is listening to its customers and meeting them where they are, steadily improving its services and attracting businesses across industries.”

    Cornerstone should help Google make significant strides toward its cloud goals.

  • Apple Widened Its Tablet Lead in 2019

    Apple Widened Its Tablet Lead in 2019

    IDC’s year-end report on the tablet market shows good news for Apple and, to a lesser extent, Amazon—and bad news for pretty much everyone else.

    According to IDC’s research, Apple widened its market share lead over the course of 2019, going from 29.6% in 2018 to 34.6% in 2019. In particular, the 10.2-inch iPad was a big hit, accounting for 65% of the company’s tablet sales.

    Amazon also had a decent year. Although the company posted a 29% decrease in 4Q19 shipments, compared with Q418, Amazon saw an overall increase of 9.9% market share for the year in total, compared with 2018.

    In contrast, Samsung, Huawei, Lenovo and others all saw declines in the their market share. Even the segment in general saw an overall decline of 1.5%, making Apple and Amazon’s positive results all the more impressive.

  • Big Surprise: iOS And Android Continue To Dominate

    Big Surprise: iOS And Android Continue To Dominate

    In the smartphone wars, there can be only two – iOS and Android. While alternatives like Windows Phone and Firefox OS are making some decent headway in emerging markets, Apple’s and Google’s mobile operating systems still rule the roost.

    In its latest report, IDC found that smartphone shipments passed the 1 billion mark for the first time in 2013. That feat was accomplished thanks to the combined might of Android and iOS as the former shipped 793.6 million units last year while the latter shipped 153.4 million units.

    As for the competition, Windows Phone saw a 90 percent increase in shipments compared to 2012. In 2013, Windows Phone shipments reached 33.4 million compared to last year’s 17.5 million. On the other hand, BlackBerry continued its slide into irrelevancy with 19.2 million units shipped in 2013 compared to 2012’s 32.5 million units – a 40.9 percent decrease.

    “Clearly, there was strong end-user demand for both Android and iOS products during the quarter and the year,” says Ramon Llamas, Research Manager with IDC’s Mobile Phone team. “What stands out are the different routes Android and Apple took to meet this demand. Android relied on its long list of OEM partners, a broad and deep collection of devices, and price points that appealed to nearly every market segment. Apple’s iOS, on the other hand, relied on nearly the opposite approach: a limited selection of Apple-only devices, whose prices trended higher than most. Despite these differences, both platforms found a warm reception to their respective user experiences and selection of mobile applications.”

    In its look at the fourth quarter, IDC found that Android device shipments had increased by 40 percent to 226.1 million units compared to Q4 2012’s 161.1 million units. iOS saw much less growth during Q4 with 51 million units shipped compared to last year’s 47.8 million units.

    In quarter four, Windows Phone saw some success with 8.8 million units shipped – a 46.7 percent increase over Q4 2012’s shipments of 6 million units. BlackBerry didn’t fare so well with only 1.7 million units shipped in Q4 – a 77 percent decrease compared to Q4 2012.

    So, what does the future hold for iOS, Android, Windows Phone and BlackBerry? According to IDC’s crystal ball, Android and iOS will still dominate. Windows Phone coupled with Microsoft’s acquisition of Nokia will lead to more Windows Phones being shipped. As for BlackBerry, it’s cautiously optimistic if the company can better appeal to an enterprise market.

    Among all of these platforms, it sees Android, and more specifically Samsung, as the big winner in 2014 though.

    “In 2013 we saw the sub-$200 smartphone market grow to 42.6% of global volume, or 430 million units,” said Ryan Reith, Program Director with IDC’s Worldwide Quarterly Mobile Phone Tracker. “While the market moves downstream to cheaper products it makes sense for Samsung and others to continue their marketing investments geared toward high-end products. These efforts build crucial brand perception while having less expensive alternatives that closely relate to these top products helps to close the deal. Samsung has done exactly this with the ‘Galaxy’ line. The family name is associated with Samsung’s high-end products, yet there are ‘Galaxy’ variants offered by Samsung at much lower price points than the Note 3 and S4. This has been an important factor in how Samsung has sustained its market lead.”

    So it would seem that Samsung and Apple have the right idea. They should continue to release premium smartphones alongside entry-level phones that look like those premium smartphones so even the poor masses can look like they’re carrying around the latest tech in their pocket.

    Image via Samsung

  • Android Almost Reaches 80 Percent Global Market Share In Q2

    Android Almost Reaches 80 Percent Global Market Share In Q2

    Android has been rather aggressive as of late in capturing smartphone market share that was previously held by Apple. It was a while ago that Android had surpassed iOS in global market share, but now it looks like it’s an unstoppable juggernaut.

    In its latest report, IDC shared total smartphone shipments from the second quarter of this year. Android came out way ahead of the competition with 187.4 million units shipped last quarter for 79.3 percent of the global market share. Apple’s iOS was in second place with 31.2 million units shipped for 13.2 percent of the global marketshare.

    As for the other guys, Windows Phone came in a respectable third place with 8.7 million units shipped for 3.7 percent of the global market share. BlackBerry OS brought up the rear with 6.8 million units shipped for 2.9 percent of the global market share.

    Android Almost Reaches 80 Percent Global Market Share In Q2

    So, what’s up with Apple? IDC argues that we’ll see iOS device shipments come back in force later this year when Apple launches the iPhone 5S:

    “The iOS decline in the second quarter aligns with the cyclicality of iPhone,” says Ramon Llamas, Research Manager with IDC’s Mobile Phone team. “Without a new product launch since the debut of the iPhone 5 nearly a year ago, Apple’s market share was vulnerable to product launches from the competition. But with a new iPhone and revamped iOS coming out later this year, Apple is well-positioned to re-capture market share.”

    As for Android device manufacturers, IDC reports that Samsung reigns supreme with 73.3 million units shipped for 39.1 percent of the global Android market share in the second quarter. The closest competitor is LG with 12.1 million units shipped, and it can be assumed that most of those are Nexus 4 devices for Google. Chinese manufacturers like Lenovo, Huawei and ZTE round out the major players.

    IDC also took a look at Windows Phone shipments in the second quarter, and found that Nokia rules that particular roost. The Finnish phone manufacturer shipped 7.1 million Windows Phone devices last quarter for 81.6 percent of the global Windows Phone marketshare. The closest competitor was Samsung with only 1 million devices shipped.

    “Last quarter we witnessed Windows Phone shipments surpassing BlackBerry and the trend has continued into the second quarter,” said Ryan Reith, Program Manager with IDC’s Mobility Tracker Programs. “Nokia has clearly been the driving force behind the Windows Phone platform, and we expect that to continue. However, as more and more vendors enter the smartphone market using the Android platform, we expect Windows Phone to become a more attractive differentiator in this very competitive market segment.”

    In short, Android and iOS are still dominating the smartphone market and that’s not going to change anytime soon. What will change is how Windows Phone 8 fits into the market as it continues to mature into an attractive alternative option for those seeking something different.

  • Tablet Shipments Down, Apple Loses Market Share

    Tablet Shipments Down, Apple Loses Market Share

    As has already been reported from multiple analyst firms, tablet shipments were slow during the second quarter of 2013. Analyst firm IDC has now weighed in with its numbers, which show just how drastically Apple is losing market share in the tablet space.

    The firm’s numbers show that the overall tablet market grew over 59% from the second quarter of 2012. Most of the growth, however, came from tablet manufacturers making Android tablets. Samsung grew a whopping 277% year-over-year and now holds 18% of the tablet market. ASUS grew over 120%, Acer increased its shipments nearly 248%, and Lenovo grew its tablet shipments over 313%.

    While Android vendors were having a field day with lower-priced tablets, Apple was the only major tablet manufacturer to see its shipments fall year-over-year. Apple hipped only 14.6 million tablets during the second quarter of 2013, down from 17 million one year ago. This drop was largely due to the lack of a new iPad tablet so far in 2013. A new version of Apple’s device raised sales and shipments during the second quarter of 2012.

    “A new iPad launch always piques consumer interest in the tablet category and traditionally that has helped both Apple and its competitors,” said Tom Mainelli, research director for tablets at IDC. “With no new iPads, the market slowed for many vendors, and that’s likely to continue into the third quarter. However, by the fourth quarter we expect new products from Apple, Amazon, and others to drive impressive growth in the market.”

    Though the company’s shipments will pick up when a new version of the iPad is released later this year, Apple has still lost nearly half of its tablet market share – down to 32.4% of the market from last year’s 60.3%. The rapid drop shows that Apple’s wholesale dominance in the tablet sector is quickly coming to an end, and that innovative products will be needed to combat the lower-priced options now being released.

  • Another Analyst Predicts Declining PC Sales

    Another Analyst Predicts Declining PC Sales

    Following a disappointing 2012 holiday season that saw PC sales decline despite the launch of Windows 8, industry analysts began predicting further declines for PC shipments throughout 2013. Last week, a Digitimes report raised hopes, stating that PC shipments could pick up in the third quarter 2013 due to a combination of new Intel Haswell processors and the release of Windows 8.1.

    Now, yet another analyst firm is cautioning investors against optimism in the PC market. IDC has released its monthly PC Tracker numbers, showing that PC shipments have not grown significantly in Europe and emerging markets throughout the first half of 2013. Though the firm predicts declines to slow throughout the rest of the year, it predicts an overall 7.8% decline in the PC shipments for the year.

    “The expectation for the second quarter was not all that high, showing only minor improvement from the first quarter,” said Loren Loverde, VP of Worldwide PC Trackers at IDC. “But the May results reflect deteriorating conditions rather than improvement and the market will probably fall short of projections. We still expect an improvement in the second half of the year as more new products are launched and we get into the back-to-school and holiday seasons. But the market will likely remain cautious about the second half of 2013.”

  • PC Shipments See Steep Decline In Q1, Windows 8 To Blame [Report]

    PC Shipments See Steep Decline In Q1, Windows 8 To Blame [Report]

    PC shipments and sales are declining. It’s an undeniable fact. What people can’t seem to agree on is the cause. Some say the rise of tablets and smartphones are to blame, while others think it’s just a longer than usual transition period. Both are right in their own way, but one research firm says the root cause can be traced back to Microsoft.

    IDC reports that worldwide PC shipments were at 76.3 million units in Q1 of this year. That’s a drop of 13.9 percent compared to the first quarter of 2012. It’s even worse when you consider that IDC was only predicting a 7.7 percent drop in shipments last quarter. Oh, and to just rub salt in the wound, IDC notes that this is the single worst quarter for PC shipments since it started tracking the market in 1994.

    What could possibly be causing this huge decline in PC sales? IDC says there’s a lot at play here including a decrease in shipments of low-cost Mini Notebooks, and an increase in consumer spending on tablets and smartphones. The high cost of PCs and Ultrabooks are also presenting obstacles as consumers don’t want to spend more than $1,000 on a PC.

    All of the above reasons have contributed to the decline of PC shipments, but IDC points to Windows 8 as one of the leading causes of the current slump the PC industry is facing:

    “At this point, unfortunately, it seems clear that the Windows 8 launch not only failed to provide a positive boost to the PC market, but appears to have slowed the market,” said Bob O’Donnell, IDC Program Vice President, Clients and Displays. “While some consumers appreciate the new form factors and touch capabilities of Windows 8, the radical changes to the UI, removal of the familiar Start button, and the costs associated with touch have made PCs a less attractive alternative to dedicated tablets and other competitive devices. Microsoft will have to make some very tough decisions moving forward if it wants to help reinvigorate the PC market.”

    IDC’s findings jibe with that of UK PC Merchants who in February reported that consumers were still buying Windows 7 PCs over those that came with Windows 8. In fact, one merchant said that he had to start offering Windows 7 as the default OS again lest he lose business.

    While this certainly looks bad, IDC reminds us that there’s at least one silver lining in all of this. Going against all expectations, Lenovo posted double year-on-year growth in the U.S. while everybody else, including Dell and HP, have posted double digit losses.

    So, what can Microsoft do to turn its, and the entire PC industry’s, fortunes around? That’s hard to say, but the company is obviously up to something with Windows Blue. Whether the improvements being made to Windows 8 can actually turn everything around remains to be seen though.

  • Android Tablets To Overtake The iPad This Year

    Android Tablets To Overtake The iPad This Year

    Android devices may be locked in a heated battle for supremacy with the iPhone, but the iPad has never really had much competition. Cheaper devices, like the Nexus 7, has ensured that some players find some form of success, but Apple is still the company to beat in the tablet market. That all may change this year.

    IDC released a revised tablet market forecast for the year today with the major takeaway being that Android tablets may finally become the dominant player in the market. The availability of cheap tablets, most noticeably Android tablets, will lead to tablet shipments to see a sizable increase this year.

    The firm predicts that the worldwide tablet market will ship 190.9 million devices over the course of this year with Android making up 48.8 percent of the shipments. Apple isn’t too far behind, however, with 46 percent of total shipments. Android may become the dominant player this year thanks to the wide breadth of options available, but it’s incredibly impressive to see Apple stand toe-to-toe in shipments with only three models.

    Both iOS and Android will see some losses in their marketshare over the next five years as Windows 8 and Windows RT tablets start to take hold. IDC predicts, however, that these Windows tablets will be much like their Windows Phone 8 counterparts – a distant third place with Windows 8 tablets expected to only command 7.4 percent of the market by 2017.

    “Microsoft’s decision to push two different tablet operating systems, Windows 8 and Windows RT, has yielded poor results in the market so far,” said Tom Mainelli, Research Director, Tablets. “Consumers aren’t buying Windows RT’s value proposition, and long term we think Microsoft and its partners would be better served by focusing their attention on improving Windows 8. Such a focus could drive better share growth in the tablet category down the road.”

    Android Tablets Will Overtake The iPad This Year

    Those who prefer eReaders over tablets may not like what’s coming next as IDC’s final prediction for the next five years sees the tablet precursors only having a few more years of growth ahead of it before the market starts an irreversible downward trend in 2015. By then, however, most consumers will have probably switched to multimedia tablets as the market will drive down prices to super affordable levels by then.

  • PC Sales Declined During Last Year’s Holiday Season

    PC Sales Declined During Last Year’s Holiday Season

    A new report issued this week by International Data Corporation (IDC) shows that worldwide PC shipments during the fourth quarter of 2012 actually declined, down 6.4% from 2011. The 89.8 million units were less than even the predicted decline of 4.4%. This is is spite of the launch of Windows 8 and the accompanying products from companies such as HP, Asus, and Microsoft itself.

    “Although the third quarter was focused on the clearing of Windows 7 inventory, preliminary research indicates the clearance did not significantly boost the uptake of Windows 8 systems in Q4,” said Jay Chou, senior research analyst with IDC’s Worldwide Quarterly PC Tracker. “Lost in the shuffle to promote a touch-centric PC, vendors have not forcefully stressed other features that promote a more secure, reliable and efficient user experience. As Windows 8 matures, and other corresponding variables such as Ultrabook pricing continue to drop, hopefully the PC market can see a reset in both messaging and demand in 2013.”

    The U.S. market in particular took a big hit, dropping 7% compared to holiday 2011. IDC blames the drop on the failure of imagination manufacturers had towards what a good Windows 8 experience would be. However, this could simply be the beginning of the post-PC world that Apple and Microsoft are predicting.

    “Consumers expected all sorts of cool PCs with tablet and touch capabilities,” said David Daoud, research director at IDC U.S. Quarterly PC Tracker. “Instead, they mostly saw traditional PCs that feature a new OS (Windows 8 ) optimized for touch and tablet with applications and hardware that are not yet able to fully utilize these capabilities. Despite a generally weak performance, some leading brands managed do to well relative to the market. HP, Lenovo, Asus, and Samsung were among the top performers, taking advantage of some consumer interest in Windows 8, and a push to build up their presence ahead of 2013.”

    Despite its recent write-downs and accusations of accounting fraud at Autonomy before its acquisition, HP continues to rank highest on IDC worldwide PC shipment rankings. HP seized on this bit of good news, highlighting the fact that the IDC rankings include the workstation segment rather than just the consumer market. From HP:

    IDC announced today that HP maintained the No. 1 position in PC shipments worldwide and in the United States. The IDC analysis also includes the very important workstation segment and therefore represents the most comprehensive analysis of the entire PC market.

    We believe HP’s position as the market share leader demonstrates our ongoing commitment to deliver superior PC products and experiences across customer segments.

    Meanwhile, Bloomberg is reporting that even HP CEO Meg Whitman knows it will take half a decade to pull the company up from its current downward trajectory.

  • Android Made Up Three-Quarters Of All Smartphone Shipments Last Quarter

    Android Made Up Three-Quarters Of All Smartphone Shipments Last Quarter

    Google’s Android OS has grown a lot since its humble beginnings in 2008. Some may have thought that it couldn’t beat iOS, but its spread across multiple devices from multiple OEMs has insured its success. That success can be plainly seen in smartphone shipments during the third quarter.

    The latest report from IDC has found that Android was on three out of every four smartphone shipped during the third quarter. In actual numbers, that comes out to 136 million Android phones shipped over last few months. There were only 181.1 million smartphones shipped in the third quarter which puts Android on 75 percent of all smartphone shipments.

    Chart: Worldwide Smartphone OS Market Share, 2012Q3Description: IDC’s Worldwide Quarterly Mobile Phone Tracker provides smart phone and feature phone market data in 60 countries and 8 regions by vendor, device type, air interface, operating systems and platforms, and generation. Over 20 additional technical segmentations are provided. The data is provided four times a year and includes historical and forecast trend analysis. For more information, or to subscribe to the research, please contact Kathy Nagamine at 1-650-350-6423 or knagamine@idc.com.Further detail about this tracker can be found at:http://www.idc.com/tracker/showproductinfo.jsp?prod_id=37Tags: Samsung, Apple, Mobile Phone, Smartphone, IDC, tracker, Q3 2012, mobile phones, 3Q 2012, market share, galaxy, iPhone, Android, iOS, BlackBerry, Symbian, Windows Phone, Linux, 2012Q3, AnniversaryAuthor: IDCcharts powered by iCharts

    “Android has been one of the primary growth engines of the smartphone market since it was launched in 2008,” said Ramon Llamas, research manager, Mobile Phones at IDC. “In every year since then, Android has effectively outpaced the market and taken market share from the competition. In addition, the combination of smartphone vendors, mobile operators, and end-users who have embraced Android has driven shipment volumes higher. Even today, more vendors are introducing their first Android-powered smartphones to market.”

    So we know that Android is doing incredibly well, but what about the rest? IDC found that Apple shipped 26.9 million iPhones during the quarter which accounted for 14.9 percent of the entire smartphone market. IDC says that the iPhone 5 and lower prices on older models helped Apple reach 57.3 percent growth over third quarter iOS shipments last year.

    BlackBerry and Symbian both saw losses across the board with both operating systems only accounting for 7.7 million and 4.1 million smartphone shipments respectively. IDC notes that Symbian in particular may no longer be in the running in 2013 as Symbian smartphone manufacturers are moving to other operating systems like Windows Phone 8 and Android.

    Speaking of Windows Phone, Microsoft’s mobile operating system saw the largest growth over the same quarter last year. Windows Phone was on 3.6 million devices sold during the third quarter compared to 1.5 million devices sold during the same time last year. That’s a growth rate of 140 percent. It may be growing, but Windows Phone still only makes up two percent of the entire market share for smartphones.

    Regardless of your allegiance, the smartphone is the real winner today. IDC notes that smartphone shipments have increased 46.4 percent over the same time last year. The continued proliferation of the smartphone and other mobile devices may just help put more computers in the hands of those who need them most.

  • Developers Prefer Google Over Facebook … Do You?

    Developers Prefer Google Over Facebook … Do You?

    With Facebook’s nearly 900 million users and over 425 million mobile users, it seems pretty clear that it would be the leader in social mobile development, right? Wrong. A new study from Appcelerator and the International Data Corporation (IDC) found that developers are more interested in Google than Facebook.

    Do you prefer apps developed for Google platforms or for Facebook? Let us know in the comments.

    Also read: Does Google Deserve to be Labeled Evil?

    According to the report, 39 percent of the more than 2,000 mobile developers surveyed plan to focus more on Google initiatives than Facebook’s social graph this year. The reason this number is so significant is due to the fact that Facebook dominates the marketplace in most metrics.

    It’s important to consider that developers have a very strong sway over the use of any platform. They are, after all, the ones creating the apps that you use. Think about how much Zynga has helped Facebook, by providing users with games like Farmville, Cityville and Mafia Wars. These findings are very significant, and have major implications for Google’s social endeavors. Of course, the Google ecosystem is much larger than just Google+. Google’s Vic Gundotra recently talked about how Google counts users who sign into Google+, and use another Google product within a month, as users. Presumably, this includes Gmail, YouTube, a signed in Google search (complete with Search Plus Your World), Google Reader, etc. According to Gundotra, Google+ has 100 million “30-day active” users.

    Google put in a strong showing at the recent Game Developers Conference (granted, so did Facebook).

    Michael King, the principal mobile strategist at Appcelerator, told us that because these findings were “so different than what we expected,” they conducted a follow up study to make sure the results were accurate.

    “For us, it was extremely surprising. When we put together the survey, we actually thought Facebook would just crush Google in terms of social engagement, and quite frankly, we saw Google make a tremendous showing, given the fact that their social initiatives are pretty much dwarfed by Facebook in every measurable manner,” he said.

    They learned that developers are pursuing Google over Facebook for its position in social and mobile. They believe Google is better in terms of its network assets such as YouTube, search, maps, and Android. They also felt Google engages with them better and offers more guidance into how they should approach social applications.

    On the other hand, the developers feel that Facebook gives them a long list of what can be done with its API, but then doesn’t offer any direction for how to do it.

    “They [Facebook] really need to step up their engagement a little bit in order to get the developers excited about the platforms and to get the developers thinking about different ways to use social in their mobile apps,” said King.

    While this data is good news for Google, the study did find some less encouraging news for the search and advertising giant in terms of Android development. The study found that the interest in Android development has dipped more than 10 percent in the past 3 quarters. Incidentally, Mika Mobile announced that it was dropping support for Android earlier this month.

    The iOS platform has remained the steady leader, but in the 2nd quarter of last year, Android was within 2 percentage points of it, said King. According to him, Android is dropping due to continued fragmentation of the platform.

    “This is a very tough line for them to walk because, if you curtail fragmentation, then there’s no way that a developer can effectively write once and work across multiple Android devices,” King pointed out.

    He told us that Google could help to solve this issue by establishing itself as a “centralized authority.” King believes this could help both the distribution and discovery of apps.

    Other significant findings in the study pertained to HTML5 and cloud development. For starters, both areas are growing. Around 79 percent of developers said they planned to integrate HTML5 into the apps they build this year. But, only 6 percent of developers will write their entire apps in HTML5. Most developers plan to build hybrid apps using both HTML5 and traditional code.

    King told us these results were understandable since HTML5 is not always appropriate for the job.

    “HTML5 is only one tool in the bag,” he said. “Or, if you a golf fan, [it’s] one club in the bag to help you get to the PGA tour.”

    Additionally, developers expressed an increased interest in cloud development, especially in the areas of location and notification. However, King said developers still struggle with understanding how to utilize the cloud.

    So, what does all this research mean? Overall, King told us that the mobile/social wars have just begun. He believes that if companies want to succeed in this space, they have to engage with developers.

    Furthermore, he suggested that the deeper implications of the data could mean a shift toward Google+ over Facebook. In fact, when asked if Google+ could catch up to Facebook, nearly 70 percent of respondents said it could.

    Google+ to Overtake Facebook” class=”aligncenter” width=”543″ height=”567″ />

    “If Facebook decides to fall asleep at the wheel here and doesn’t begin to engage those developers, then absolutely Google+ and Google mobile may become the more de facto standard,” said King.

    He went on to say that he hopes both companies will respond to this report by building on their strengths and improving their weaknesses.

    An interesting thing about Google mobile, however, is that Google continues to tie many of its products and platforms together in more ways, making the larger ecosystem more unified. Think Android, YouTube, Google Play, and Google TV. If what co-founder Sergey Brin said holds up, Chrome and Android will likely merge sooner or later, as well.

    If this trend is happening with developers, will it soon transition to consumers too? Tell us what you think.

    WebProNews Senior Writer Chris Crum contributed to this report.

  • Nearly 1 Billion ‘Smart’ Devices Shipped Last Year

    Nearly 1 Billion ‘Smart’ Devices Shipped Last Year

    The International Data Corporation (IDC) added up the numbers from its Worldwide Quarterly PC Tracker, Mobile Phone Tracker, and Media Tablet Tracker this week and came up with the number of PC’s, tablets, and smartphones that shipped worldwide in 2011: 916 million. That’s right, almost 1 billion devices shipped last year, and those products raked in over $489 billion. They estimate shipments will reach 1.1 billion by 2012 and that shipments will more than double by 2016, with 1.84 billion units. The IDC has provided a chart to demonstrate the trend:

    Chart: Worldwide Smart Connected Device Shipments, 2010-2016 (Unit Millions)Description: This data comes from IDC’s WW Quarterly PC Tracker, WW Quarterly Mobile Phone Tracker, and WW Quarterly Media Tablet and eReader Tracker.Tags: Tracker, mobile phones, tablets, forecast, PCs, devices, consumer, IDC …Author: IDCcharts powered by iCharts

    “Whether it’s consumers looking for a phone that can tap into several robust ‘app’ ecosystems, businesses looking at deploying tablet devices into their environments, or educational institutions working to update their school’s computer labs, smart, connected, compute-capable devices are playing an increasingly important role in nearly every individual’s life,” said Bob O’Donnell, vice president of Clients and Displays at IDC.

    IDC made another prediction that seems astounding: that Windows will lose its leading position of operating system market share to Android by 2016. The prediction is that Windows’ market share will fall to about 25%, while Android’s market share will rise to 31%.

    “Android’s growth is tied directly to the propagation of lower-priced devices,” said Tom Mainelli, a research director with ICS. “So, while we expect dozens of hardware vendors to own some share in the Android market, many will find profitability difficult to sustain. Similarly, we expect a large percentage of application developers to continue to focus their efforts on iOS, despite the platform’s smaller overall market share, because iOS end users have proven more willing to pay for high-quality apps.”

    IDC claims this amazing market growth will come about as a result of consumers buying multiple devices for themselves and the growth of Asian markets. “Smartphone growth will be driven by Asia/Pacific countries, especially China, where mobile operators are subsidizing the purchase of 3G smartphones, thus increasing the total addressable market,” said Will Stofega, a program director at IDC.