Is Cloud Computing A Threat To Older Tech Companies? Part 1

Is Cloud Computing A Threat To Older Tech Companies? Part 1

Almost exactly a year ago, The Informational Data Corporation (IDC) made some pretty bold predictions regarding the development of a new high-tech industry in the convergence of social networking, and cloud-based computing and data storage.

IDC suggested that many industry giants may scramble to maintain relevance in 2012, while some startups would gain leadership positions – part of the technology industry’s fastest transition ever.

Today’s major big players may be in trouble if they don’t prepare for change.

Spending on the new technologies will reach nearly $700 billion, or about 20 percent of the $3.5 trillion in hardware, software, and services spent on information technology worldwide, IDC said. As a great deal of spending in the sector goes toward maintaining older systems, such a share for relatively new technologies is a surprising speculation. Spending on these new technologies is growing six times that of traditional computer servers and personal computers, IDC said, and by 2020 will be 80 percent industry growth.

Much of the new development will also take place in emerging markets such as China, IDC said. It predicted that 28 percent of overall spending, and 53 percent of the industry’s growth, would come from outside the United States, Japan and Western Europe. By mid- 2012, China is expected to be the world’s second largest consumer of information technology, eclipsing Japan.

Frank Gens, chief analyst at IDC and head of the study, said: “Hewlett-Packard will be challenged. Microsoft, Intel, SAP, RIM, Oracle, Cisco, Dell – they are all facing the next transition, competing to be around in 2020. At least a third will fade away.”

Among the notable claims in the forecast, IDC said that spending on hardware, software and services in cloud computing systems alone will be $60 billion in 2012. The growth rate in this sector is about four and a half times that of the industry overall. About $36 billion of that was projected spending for companies providing cloud services to businesses, and the balance will be from so-called “arms dealers,” supplying things like servers and networking gear.

Mobile devices, which in 2011 outshipped personal computers worldwide, will in 2012 generate more revenue than PCs for the first time, IDC said. Shipments of mobile devices will outstrip PCs by two to one and 85 million mobile applications, or apps, will be downloaded. More money will be spent on mobile data networks than on networks tethered by lines.

The rapid transition to mobile, driven by an explosion of tablet computers, will challenge both traditional computer software companies like Microsoft and beneficiaries like Apple, which is seeing the dominance of its iOS operating system challenged by the open source Android operating system developed by Google.

By 2013 we’ll know who the leaders are,” Mr. Gens said.

So, how accurate were IDC’s predictions?  Find our by reading Part 2 tomorrow…

By Sharon Florentine

This post is written by Rackspace blogger Sharon Florentine. Rackspace Hosting is the service leader in cloud computing, and a founder of OpenStack, an open source cloud operating system. The San Antonio-based company provides Fanatical Support to its customers and partners, across a portfolio of IT services, including Managed Hosting and Cloud Computing.

About CloudTweaks

Established in 2009, CloudTweaks is recognized as one of the leading authorities in connected technology information and services.

We embrace and instill thought leadership insights, relevant and timely news related stories, unbiased benchmark reporting as well as offer green/cleantech learning and consultive services around the world.

Our vision is to create awareness and to help find innovative ways to connect our planet in a positive eco-friendly manner.

In the meantime, you may connect with CloudTweaks by following and sharing our resources.

View All Articles

Sorry, comments are closed for this post.

Banking On Recurring Revenue In The Cloud

Banking On Recurring Revenue In The Cloud

Recurring Revenue In The Cloud Many common traditions have held up for centuries (Thanksgiving dinner, anyone?), but the post millennial world of business and technology has perennially followed the idea that traditions are meant to be broken. Take a look at the radical change in the way content is consumed.Traditionally, cell phones were used as…

You’ve Moved Your Data To The Cloud…What Now?

You’ve Moved Your Data To The Cloud…What Now?

Data To The Cloud…What Now? You’ve done the research. You’ve vetted multiple cloud solutions. You’ve chosen the right vendor. And you’ve migrated your data to the cloud. All done, right? Not so fast… While it has become a bit of a scary proposition for many organizations to put their trust in the cloud and start…

Your Biggest Data Security Threat Could Be….

Your Biggest Data Security Threat Could Be….

Paying Attention To Data Security Your biggest data security threat could be sitting next to you… Data security is a big concern for businesses. The repercussions of a data security breach ranges from embarrassment, to costly lawsuits and clean-up jobs – particularly when confidential client information is involved. But although more and more businesses are…

Cost of the Cloud: Is It Really Worth It?

Cost of the Cloud: Is It Really Worth It?

Cost of the Cloud Cloud computing is more than just another storage tier. Imagine if you’re able to scale up 10x just to handle seasonal volumes or rely on a true disaster-recovery solution without upfront capital. Although the pay-as-you-go pricing model of cloud computing makes it a noticeable expense, it’s the only solution for many…

Dissecting Mr. Robot TV Series: Spotlight On Burning Online Privacy Risks

Dissecting Mr. Robot TV Series: Spotlight On Burning Online Privacy Risks

Mr. Robot And Burning Online Privacy Risks Despite the rapid development of web tools and computer security systems, online privacy remains a serious issue for most web users. According to some statistics provided by isaca.org, the total number of online security incidents worldwide grew to 42.8 million, leaving a great number of victims behind. As one…

New Smartphones From Apple, Samsung and HTC Promise To Light Up 2016

New Smartphones From Apple, Samsung and HTC Promise To Light Up 2016

New Smartphones from Apple, Samsung and HTC (Sponsored post courtesy of Verizon Wireless) The launch of the Galaxy S7 Edge at the Mobile World Congress in Barcelona during February was the first shot in a vintage year for mobile phones. The S7 is an incredible piece of hardware, but launches from HTC and Apple later in the…

Featured Sponsored Articles
How Successful Businesses Ensure Quality Team Communication

How Successful Businesses Ensure Quality Team Communication

Quality Team Communication  (Sponsored post courtesy of Hubgets) Successful team communication and collaboration are as vital to project and overall business success as the quality of products and services an organization develops. We rely on a host of business tools to ensure appropriate customer interactions, sound product manufacturing, and smooth back-end operations. However, the interpersonal relationships…

Featured Sponsored Articles
How To Develop A Business Continuity Plan Using Internet Performance Management

How To Develop A Business Continuity Plan Using Internet Performance Management

Internet Performance Management Planning CDN Performance Series Provided By Dyn In our previous post, we laid out the problems of business continuity and Internet Performance Management in today’s online environment.  In this article, we will take a look at some of the ways you can use traffic steering capabilities to execute business continuity planning and…

Featured Sponsored Articles

CloudTweaks is recognized as one of the leading influencers in cloud computing, infosec, big data and the internet of things (IoT) information. Our goal is to continue to build our growing information portal by providing the best in-depth articles, interviews, event listings, whitepapers, infographics and much more.

Sponsor