Is Cloud Computing A Threat To Older Tech Companies? Part 2

Is Cloud Computing A Threat To Older Tech Companies? Part 2

Continued From Part 1…. 

So, how accurate were IDC’s predictions?

Hindsight is, as the saying goes, 20/20; so while we won’t know exactly how precise IDC’s projections are, we can certainly determine if their aim was true.

IDC predicted: “Worldwide IT spending will grow 6.9%, surprisingly solid growth in a fragile, recovering economy. Mobile devices and apps and emerging markets will be the biggest growth drivers, while European debt issues will dominate downside risks.”

The reality: It’s close. IT spending is projected to top out at 6 percent in 2012, driven by software, storage, networking and mobile technologies. Research firm Gartner predicts that the release of Microsoft Corp.’s Windows 8 OS could spur a surge of growth in the fourth quarter.

IDC predicted:Emerging markets IT spending will grow 13.8% … In the second half of 2012, China will supplant Japan as number 2 in the IT market.”

The reality: Right on course. Emerging markets are still growing, but China is slowing in response to Europe’s economic troubles. Japan’s growth has stagnated while IT spending in China is on course for fourteen percent growth this year; matching growth in India and Brazil. Russia is expected to finish at eleven percent and South Africa, eight percent.

IDC predicted: “Mobility wins” will be the top theme of the year as mobile devices outship PCs by more than 2 to 1 and generate more revenue than PCs for the first time. 85 billion mobile apps will be downloaded, and mobile data network spending will exceed fixed data network spending for the first time.

The reality: When even Microsoft is conceding that tablets will outsell PCs in coming months, that’s a pretty safe bet. As for the mobile-devices-versus-PC-shipments conjecture, some sources are positing that PC manufacturers have a little more wiggle room – until 2016 – before their former business becomes obsolete. And if projected security spending is any indication – Juniper Research believes that By 2016, 277 million mobile devices will have some kind of protection installed, costing mobile users a collective US$3.6 billion, and that 69 percent of this investment will be made by corporations concerned about corporate data is stored on mobile devices – then, yes, mobile data network spending will surpass fixed data network spending by the end of the year.

IDC predicted: Spending on public and private cloud services, and the building of those services (the “cloud arms dealer” opportunity), will reach $60 billion… and the strategic focus in the cloud will shift from infrastructure to application platforms and the race to build the largest portfolios and ecosystems around those platforms.

The reality: How about $109 billion? That’s what Gartner’s now predicting for public and private cloud spending this year.

And the same Gartner research shows that the majority of this spending is focused on Software-as-a-Service (SaaS), developing process-specific applications (like billing systems, for instance) and on-premise services like phone systems and storage.

IDC predicted: Big Data will join mobile and cloud as the next “must have” competency as the volume of digital content grows to 2.7ZB (1ZB = 1 billion terabytes) in 2012, up 48% from 2011, rocketing toward 8ZB by 2015. There will be lots of Big Data–driven mergers and acquisitions (M&A) activity.

The reality: IT behemoth Oracle certainly believes the hype. CEO Mark Hurd (formerly of Hewlett-Packard) is doubling down on Big Data and looking for ways to capitalize on the opportunity. As far as mergers and acquisitions go, here’s a very short list: Oracle acquired Endeca (a big-data company), IBM acquired HPC firm Platform Computing; Groupon acquired Adku, a big data startup that focuses on the e-commerce sector; and EMC picked up Pivotal Labs, a private agile software development firm.

Despite the ups and downs of the economy, 2012 has been a pretty good year for the IT industry. If the growth trend continues, 2013 could be even better.

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.

Cloud Email Marketing Services vs. Transactional Email Services

Cloud Email Marketing Services vs. Transactional Email Services

Cloud Based Email Marketing Services Every business can benefit from successful implementation of email marketing strategies, but the variety of SaaS on the market can be a little overwhelming at times. Whether you’re interested in learning more about email marketing or hoping to clear up any confusion surrounding transactional email, a little research into these…

The Most Powerful Free Cloudware Tools Available to Modern Businesses

The Most Powerful Free Cloudware Tools Available to Modern Businesses

5 Essential Cloud Tools for Your Innovative Business Why these cloudware tools are a must for any modern business Smart business owners are always on the lookout for ways to save money. One of the best ways is capitalising on some of the best free cloudware tools available to businesses. Sixty percent of small and medium…

Hoarders And Data Collectors:  On The Brink Of Unmanageability

Hoarders And Data Collectors: On The Brink Of Unmanageability

Hoarders and Data Collectors In our physical world, hoarders are deemed “out of control” when they collect too much.  Surely the same analogy applies in our online world.  When providers collect realms of data from us, it seems they lose control of that too?  In the last months it’s not just the frequency of data…

Why Cloud Compliance Doesn’t Need To Be So Overly Complicated

Why Cloud Compliance Doesn’t Need To Be So Overly Complicated

Cloud Compliance  Regulatory compliance is an issue that has not only weighed heavily on the minds of executives, security and audit teams, but also today, even end users. Public cloud adds more complexity when varying degrees of infrastructure (depending on the cloud model) and data fall out of the hands of the company and into…

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