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WORLDWIDE IT SPENDING is projected to total $3.8 trillion in 2014, a 3.1 percent increase from 2013 spending of $3.7 trillion, according to the latest forecast by Gartner, Inc. In 2013, the market experienced fl at growth, growing 0.4 percent year over year.


Spending on devices (including PCs, ultramobiles, mobile phones and tablets) contracted 1.2 percent in 2013, but it will grow 4.3 percent in 2014. Gartner analysts said convergence of the PC, ultramobiles (including tablets) and mobile phone segments, as well as erosion of margins, will take place as differentiation will soon be based primarily on price instead of devices’ orientation to specifi c tasks.


Enterprise software spending growth continues to be the strongest throughout the forecast period. The 2014 annual growth rate is expected to grow 6.8 percent. Customer relationship management and supply chain management (SCM) experienced a period of strong growth.


“Investment is coming from exploiting analytics to make B2C processes more effi cient and improve customer marketing efforts. Investment will also be aligned to B2B analytics, particularly in the SCM space, where annual spending is expected to grow 10.6 percent in 2014,” said Richard Gordon, managing vice president at Gartner. “The focus is on enhancing the customer experience throughout the presales, sales and post sales processes.”


The Gartner Worldwide IT Spending Forecast is the leading indicator of major technology


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Worldwide IT spending to reach $3.8 trillion


trends across the hardware, software, IT services and telecom markets. For more than a decade, global IT and business executives have been using these highly anticipated quarterly reports to recognize market opportunities and challenges, and base their critical business decisions on proven methodologies rather than guesswork.


“A downward revision of the 2014 forecast growth in spending for telecom services - a segment that accounts for more than 40 percent of total IT spending - from 1.9 percent to 1.2 percent is the main reason behind this overall IT spending growth reduction,” said Mr. Gordon. “A number of factors are involved, including the faster- than-expected growth of wireless-only households, declining voice rates in China and a more frugal usage pattern among European customers. The latter coincides in Western Europe with a breakout of fi erce price competition among communications service providers to retain customers and attract new ones.”


The data center systems spending growth outlook for 2014 has been cut from 2.9 percent in our previous forecast to 2.6 percent. This is mainly due to a reduction in the forecast for external controller-based storage and enterprise communications applications. These segments represent 32 percent of total data center system end-user spending.


Gartner has slightly revised downward the IT services compound annual growth rate between 2012 and 2017. The largest contributor to this revision comes from reductions in IT outsourcing - specifi cally, in colocation, hosting and data center outsourcing growth rates.


“We are seeing CIOs increasingly reconsidering data center build-out and instead planning faster-than-expected moves to cloud computing. Despite these small reductions, we continue to anticipate consistent four to fi ve percent annual growth through 2017,” said Mr. Gordon.


Integrated infrastructure and platforms sales soar


THE INTERNATIONAL DATA CORPORATION (IDC) Worldwide Quarterly Integrated Infrastructure and Platforms Tracker found an impressive 68.5% year-over-year factory value growth in the integrated infrastructure and platforms market during the third calendar quarter of 2013 (2Q13), with system sales totaling $1.4 billion. The market generated 622.6 petabytes of new storage capacity shipments during the quarter, which was up 101% compared to the third quarter of 2012.


“The strong growth in the integrated systems market has become a real bright spot within the IT industry,” said Eric Sheppard, Research Director, Storage. “Server, storage, and networking


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vendors have clearly created a set of offerings that resonate very well with datacenter operators looking for the next level of infrastructure effi ciency for their highly virtualized environments.” “The Integrated systems market continues to gain momentum and we saw strong adoption across all categories in the third quarter,” said Jed Scaramella, Research Director, Enterprise Servers.


“A greater number of IT customers are realizing the value proposition of integrated systems and how they can simplify IT operations. IDC expects integrated systems to be on many customers’ radar during purchasing cycles in 2014.”


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