The Lighter Side Of The Cloud – Coffee Break
The Lighter Side Of The Cloud – Cloud Training
The Lighter Side Of The Cloud – The Storage Room

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.

Follow Us!

CloudTweaks

Established in 2009, CloudTweaks.com is recognized as one of the leading authorities in cloud computing information. Most of the excellent CloudTweaks articles are provided by our own paid writers, with a small percentage provided by guest authors from around the globe, including CEOs, CIOs, Technology bloggers and Cloud enthusiasts. Our goal is to continue to build a growing community offering the best in-depth articles, interviews, event listings, whitepapers, infographics and much more...
Follow Us!

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

Support

Recent

Beyond Gaming: Three Practical Applications For Oculus Rift

Beyond Gaming: Three Practical Applications For Oculus Rift

Three Practical Applications For Oculus Rift  Since the announcement of the Oculus Rift in 2012 gamers and game developers alike have been frenzied trying to both get their hands on the unit or build their own proprietary VR machine. The VR gold rush has since lead to the announcement of Project Morpheus from Sony and…

The Lighter Side Of The Cloud – Due Diligence

The Lighter Side Of The Cloud – Due Diligence

By David Fletcher Please support our comics by sharing, licensing or visiting our cloud sponsors (Below). Your support goes a long way in allowing us to continue to produce our lighthearted comics each week.   About Latest Posts Follow Us!CloudTweaksEstablished in 2009, CloudTweaks.com is recognized as one of the leading authorities in cloud computing information.…

Popular

2014 Future Of Cloud Computing Survey Results

2014 Future Of Cloud Computing Survey Results

Engine Yard Joins North Bridge Venture Partners, Gigaom Research and Industry Collaborators to Unveil 2014 Future of Cloud Computing Survey Results SAN FRANCISCO, CA–(Marketwired – Jun 25, 2014) – Engine Yard, the leading cloud application management platform, today announced its role as a collaborator in releasing the results of the fourth annual Future of Cloud Computing Survey,…

The Industries That The Cloud Will Change The Most

The Industries That The Cloud Will Change The Most

The Industries That The Cloud Will Change The Most Cloud computing is rapidly revolutionizing the way we do business. Instead of being a blurry buzzword, it has become a facet of everyday life. Most people may not quite understand how the cloud works, but electricity is quite difficult to fathom as well. Anyway, regardless of…

Cloud Infographic – The Future (IoT)

Cloud Infographic – The Future (IoT)

The Future (IoT) By the year 2020, it is being predicted that 40 to 80 billion connected devices will be in use. The Internet of Things or IoT will transform your business and home in many truly unbelievable ways. The types of products and services that we can expect to see in the next decade…

Three Factors for Choosing Your Long-term Cloud Strategy

Three Factors for Choosing Your Long-term Cloud Strategy

Choosing Your Long-term Cloud Strategy A few weeks ago I visited the global headquarters of a large multi-national company to discuss cloud strategy with the CIO. I arrived 30 minutes early and took a tour of the area where the marketing team showcased their award winning brands. I was impressed by the digital marketing strategy…

Using Big Data To Make Cities Smarter

Using Big Data To Make Cities Smarter

Using Big Data To Make Cities Smarter The city of the future is impeccably documented. Sensors are used to measure air quality, traffic patterns, and crowd movement. Emerging neighborhoods are quickly recognized, public safety threats are found via social networks, and emergencies are dealt with quicklier. Crowdsourcing reduces commuting times, provides people with better transportation…

Sponsored Posts

Moving From Email Into The Cloud

Moving From Email Into The Cloud

Mobile Collaboration In The Cloud Imagine that you, as a manager, are told by the powers that be that you have to find “efficiencies” within your department that will result in one million dollars of savings annually. You struggle with this. You send an email to everyone on your senior team. “Where can we save…

Cloud Logo Sponsors

hp Logo CityCloud-PoweredByOpenstack-Bluesquare_logo_100x100-01
cisco_logo_100x100 vmware citrix100
Site 24x7


Contributor Spotlight

Established in 2009, CloudTweaks is recognized as one of the leading influencers in cloud computing, big data and 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.

Branded Content Programs

Advertising