Click here to close now.




















Welcome!

Microservices Expo Authors: VictorOps Blog, Pat Romanski, Elizabeth White, Liz McMillan, Trevor Parsons

Related Topics: Government Cloud, Java IoT, Microservices Expo, Microsoft Cloud, @CloudExpo

Government Cloud: Blog Feed Post

Why Global ICT Spending Will Reach $3.7 Trillion in 2013

A look at the key trends that are shaping the updated global forecasts?

Economic uncertainty surrounding the U.S. government sequester, European debt crisis and weakening GDP in China has resulted in volatile spending patterns across most segments of the market. According to the latest market study by International Data Corporation (IDC), as a result of the current economic climate, business technology spending was slightly below expectations in the second half of 2012 and first quarter of 2013.

IDC now projects worldwide IT spending growth of 4.9 percent this year in constant currency, down from the previous forecast of 5.5 percent growth -- and representing a slowdown from the 5.6 percent growth recorded in 2012. As a result, IT spending will reach $2.06 trillion in 2013. Including telecom services, ICT spending will increase by 4.5 percent to $3.7 trillion.



So, what are the key trends that are shaping the updated global forecasts?


Deteriorating PC Shipments

The reduction in IDC’s overall forecast for 2013 is largely driven by rapidly deteriorating PC shipments since the second half of 2012. IDC now expects PC spending to decline by 3 percent in constant currency this year, representing a third successive year of declining PC revenues.

The shift to mobile devices remains a key driver for overall tech spending growth. Excluding mobile phones and tablets, worldwide IT spending increased by only 2.8 percent in 2012 and is forecast to grow by just 2.6 percent this year.

Worldwide spending on smartphones will increase by 17 percent in 2013 while tablet spending will grow by 32 percent. The combined growth rate for PCs and tablets, meanwhile, will remain stable in the range of 4-5 percent.



Cloud Services Cannibalizes Software and IT Services

Just as tablets are cannibalizing PC spending, so the growth of managed cloud services

continues to cannibalize commercial software and IT services. Software spending in the U.S. grew slightly slower than forecast in 2012, and IDC has consequently reduced the U.S. software forecast to 6 percent growth for 2013 (from 7 percent).

IT services demand remains stable, but the pass-through from capital spending and software deployment remains tepid by historical standards. IDC now forecasts growth of 5.6 percent in worldwide software spending in 2013 (constant currency), and 3.8 percent in IT services.

Decline in Server Revenues

IDC's assessment also suggests a decline in overall server revenues while storage infrastructure spending will cool somewhat after the major spending cycle of 2011/2012. IDC now projects 2.4 percent growth in worldwide storage hardware revenues this year, down from 6.1 percent growth in 2012.

Network infrastructure investment was strong in 2012, as many carriers invested in the deployment of LTE networks, but this will also cool in 2013. Service provider spending on network equipment will increase by 1.1 percent this year, compared to 5.8 percent in 2012. Enterprise network spending should remain more stable, projected to post growth of 6.8 percent.

The Global Networked Economy

Emerging markets are still the engines of growth for Worldwide IT spending, with strong trends continuing in markets such as India and Brazil in recent months. The weakest-performing geographies will be Western Europe and Japan, where slow economic growth is inhibiting IT spending while the U.S. market remains fragile in the context of political uncertainty.

"It's all about the economy," said Stephen Minton, Vice President at IDC. "Our surveys confirm that underlying demand for IT products and services remains strong, but that businesses are once again being forced to delay new projects or investments in the face of longer decision-making cycles and a lack of short-term visibility. This storm could pass quickly, if governments in the U.S., Europe, China and Japan succeed in steering their ships towards calm waters in the second half of the year."

That being said, it's the savvy forward-looking executive leaders who continue to invest heavily in business technology adoption. They see a window of opportunity to deploy productivity-enhancing applications and thereby make a quantum leap ahead of their conservative competitors that lack the strategic foresight to act boldly. This is the fundamental reason why ICT spending will reach significant levels in 2013.

More Stories By David H Deans

David H. Deans is the Managing Director at the GeoActive Group. He has more than 25 years of experience in the Technology, Media and Telecom sectors.

Comments (0)

Share your thoughts on this story.

Add your comment
You must be signed in to add a comment. Sign-in | Register

In accordance with our Comment Policy, we encourage comments that are on topic, relevant and to-the-point. We will remove comments that include profanity, personal attacks, racial slurs, threats of violence, or other inappropriate material that violates our Terms and Conditions, and will block users who make repeated violations. We ask all readers to expect diversity of opinion and to treat one another with dignity and respect.


@MicroservicesExpo Stories
Early in my DevOps Journey, I was introduced to a book of great significance circulating within the Web Operations industry titled The Phoenix Project. (You can read our review of Gene’s book, if interested.) Written as a novel and loosely based on many of the same principles explored in The Goal, this book has been read and referenced by many who have adopted DevOps into their continuous improvement and software delivery processes around the world. As I began planning my travel schedule last...
Puppet Labs has announced the next major update to its flagship product: Puppet Enterprise 2015.2. This release includes new features providing DevOps teams with clarity, simplicity and additional management capabilities, including an all-new user interface, an interactive graph for visualizing infrastructure code, a new unified agent and broader infrastructure support.
Akana has announced the availability of the new Akana Healthcare Solution. The API-driven solution helps healthcare organizations accelerate their transition to being secure, digitally interoperable businesses. It leverages the Health Level Seven International Fast Healthcare Interoperability Resources (HL7 FHIR) standard to enable broader business use of medical data. Akana developed the Healthcare Solution in response to healthcare businesses that want to increase electronic, multi-device acce...
Any Ops team trying to support a company in today’s cloud-connected world knows that a new way of thinking is required – one just as dramatic than the shift from Ops to DevOps. The diversity of modern operations requires teams to focus their impact on breadth vs. depth. In his session at DevOps Summit, Adam Serediuk, Director of Operations at xMatters, Inc., will discuss the strategic requirements of evolving from Ops to DevOps, and why modern Operations has begun leveraging the “NoOps” approa...
SYS-CON Events announced today that the "Second Containers & Microservices Expo" will take place November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Containers and microservices have become topics of intense interest throughout the cloud developer and enterprise IT communities.
SYS-CON Events announced today that G2G3 will exhibit at SYS-CON's @DevOpsSummit Silicon Valley, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Based on a collective appreciation for user experience, design, and technology, G2G3 is uniquely qualified and motivated to redefine how organizations and people engage in an increasingly digital world.
SYS-CON Events announced today that DataClear Inc. will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. The DataClear ‘BlackBox’ is the only solution that moves your PC, browsing and data out of the United States and away from prying (and spying) eyes. Its solution automatically builds you a clean, on-demand, virus free, new virtual cloud based PC outside of the United States, and wipes it clean...
It’s been proven time and time again that in tech, diversity drives greater innovation, better team productivity and greater profits and market share. So what can we do in our DevOps teams to embrace diversity and help transform the culture of development and operations into a true “DevOps” team? In her session at DevOps Summit, Stefana Muller, Director, Product Management – Continuous Delivery at CA Technologies, answered that question citing examples, showing how to create opportunities for ...
Microservice architecture is fast becoming a go-to solution for enterprise applications, but it's not always easy to make the transition from an established, monolithic infrastructure. Lightweight and loosely coupled, building a set of microservices is arguably more difficult than building a monolithic application. However, once established, microservices offer a series of advantages over traditional architectures as deployment times become shorter and iterating becomes easier.
In his session at 17th Cloud Expo, Ernest Mueller, Product Manager at Idera, will explain the best practices and lessons learned for tracking and optimizing costs while delivering a cloud-hosted service. He will describe a DevOps approach where the applications and systems work together to track usage, model costs in a granular fashion, and make smart decisions at runtime to minimize costs. The trickier parts covered include triggering off the right metrics; balancing resilience and redundancy ...
SYS-CON Events announced today that HPM Networks will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. For 20 years, HPM Networks has been integrating technology solutions that solve complex business challenges. HPM Networks has designed solutions for both SMB and enterprise customers throughout the San Francisco Bay Area.
Whether you like it or not, DevOps is on track for a remarkable alliance with security. The SEC didn’t approve the merger. And your boss hasn’t heard anything about it. Yet, this unruly triumvirate will soon dominate and deliver DevSecOps faster, cheaper, better, and on an unprecedented scale. In his session at DevOps Summit, Frank Bunger, VP of Customer Success at ScriptRock, will discuss how this cathartic moment will propel the DevOps movement from such stuff as dreams are made on to a prac...
SYS-CON Events announced today that Pythian, a global IT services company specializing in helping companies leverage disruptive technologies to optimize revenue-generating systems, has been named “Bronze Sponsor” of SYS-CON's 17th Cloud Expo, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Founded in 1997, Pythian is a global IT services company that helps companies compete by adopting disruptive technologies such as cloud, Big Data, advance...
The pricing of tools or licenses for log aggregation can have a significant effect on organizational culture and the collaboration between Dev and Ops teams. Modern tools for log aggregation (of which Logentries is one example) can be hugely enabling for DevOps approaches to building and operating business-critical software systems. However, the pricing of an aggregated logging solution can affect the adoption of modern logging techniques, as well as organizational capabilities and cross-team ...
Culture is the most important ingredient of DevOps. The challenge for most organizations is defining and communicating a vision of beneficial DevOps culture for their organizations, and then facilitating the changes needed to achieve that. Often this comes down to an ability to provide true leadership. As a CIO, are your direct reports IT managers or are they IT leaders? The hard truth is that many IT managers have risen through the ranks based on their technical skills, not their leadership ab...
In today's digital world, change is the one constant. Disruptive innovations like cloud, mobility, social media, and the Internet of Things have reshaped the market and set new standards in customer expectations. To remain competitive, businesses must tap the potential of emerging technologies and markets through the rapid release of new products and services. However, the rigid and siloed structures of traditional IT platforms and processes are slowing them down – resulting in lengthy delivery ...
Several years ago, I was a developer in a travel reservation aggregator. Our mission was to pull flight and hotel data from a bunch of cryptic reservation platforms, and provide it to other companies via an API library - for a fee. That was before companies like Expedia standardized such things. We started with simple methods like getFlightLeg() or addPassengerName(), each performing a small, well-understood function. But our customers wanted bigger, more encompassing services that would "do ...
Docker containerization is increasingly being used in production environments. How can these environments best be monitored? Monitoring Docker containers as if they are lightweight virtual machines (i.e., monitoring the host from within the container), with all the common metrics that can be captured from an operating system, is an insufficient approach. Docker containers can’t be treated as lightweight virtual machines; they must be treated as what they are: isolated processes running on hosts....
SYS-CON Events announced today the Containers & Microservices Bootcamp, being held November 3-4, 2015, in conjunction with 17th Cloud Expo, @ThingsExpo, and @DevOpsSummit at the Santa Clara Convention Center in Santa Clara, CA. This is your chance to get started with the latest technology in the industry. Combined with real-world scenarios and use cases, the Containers and Microservices Bootcamp, led by Janakiram MSV, a Microsoft Regional Director, will include presentations as well as hands-on...
DevOps has traditionally played important roles in development and IT operations, but the practice is quickly becoming core to other business functions such as customer success, business intelligence, and marketing analytics. Modern marketers today are driven by data and rely on many different analytics tools. They need DevOps engineers in general and server log data specifically to do their jobs well. Here’s why: Server log files contain the only data that is completely full and accurate in th...