Welcome!

@CloudExpo Authors: Elizabeth White, Liz McMillan, Shelly Palmer, Pat Romanski, Yeshim Deniz

Related Topics: @CloudExpo, Microservices Expo, Containers Expo Blog, Agile Computing, @BigDataExpo, SDN Journal

@CloudExpo: Blog Feed Post

How Cloud Service Advances Reward the Bold Leaders

What's your business technology investment strategy for 2013, and beyond?

Are you one of those independent executives that uses strategic foresight to gain a decisive lead over competitors that tend to follow the crowd? Granted, it takes courage to make bold moves -- and follow the path that's less traveled. Big rewards tend to go to the confident, not the cautious.

What's your business technology investment strategy for 2013, and beyond?  Does your corporate foresight anticipate success, based upon your ability to deploy quantum-leap technological advances -- like managed cloud services?



According to International Data Corporation (IDC), the economic slowdown in China has driven them to lower their expectations for worldwide IT spending growth this year. IDC now forecasts IT spending growth of 4.6 percent in constant currency for 2013. That's down from the previous forecast of 4.9 percent growth and a sharp deceleration from last year's growth of almost 6 percent.

Despite the lower forecast, IDC expects IT spending will reach $2 trillion for the first time ever in 2013. Meanwhile, total ICT spending, including telecommunications services, will increase by 3.8 percent at constant currency to $3.6 trillion.

How Market Trends Guide Traditional Strategies
According to IDC, capital spending in China and other emerging markets shows signs of weakening from the rapid pace of expansion recorded since 2010. Meanwhile, PC sales face continued pressure from lower-cost tablets in the first half of 2013 and the rapid adoption of cloud services is cannibalizing revenue from traditional sales of software and IT services.

In the U.S., shipments of smartphones and tablets have buoyed the overall market so far this year, but forecasts have been lowered for other hardware market sectors and IT services.

Expectations have also been scaled back in Canada, Western Europe, Brazil, and Central and Eastern Europe, Middle East and Africa (CEMA) as well as in Asia/Pacific (excluding Japan).

Mobile Device Deployments Gain Momentum
The IDC forecast reduction would have been greater, if not for strong sales of mobile internet devices like smartphones and tablets in the first half of the year. More than half of this year's IT market growth will come from mobile devices.

In fact, excluding smartphones and tablets, IT spending will increase by just 1.7 percent in constant currency (down from the previous forecast of 2.6 percent growth).

Worldwide spending on smartphones is now expected to increase by 18.5 percent in constant currency this year (up from the previous forecast of 17.2 percent), while tablet spending will increase by 39 percent -- that's up from the previous forecast of 32.5 percent.

Further Declines in PC Purchases
The PC market, in particular, performed poorly in the first half of 2013 as cannibalization from tablets continues. The economic slowdown in China, reverberating throughout Asia/Pacific, also took a bite from PC revenues.

IDC says that worldwide PC spending is now expected to decline by 7.2 percent in 2013, that's down from the previous forecast of a 2.6 percent decline.

At the same time, U.S. PC sales are a little stronger than expected in the second quarter, but not enough to offset the overall decline in shipments and average prices.

Further Upside Growth of Cloud Services
Traditional IT services expectations have been impacted by economic weakness in some regions -- and continuing cannibalization from cloud services. IDC has lowered the forecast for U.S. IT Services growth in 2013 to 2.9 percent, and worldwide services growth to 3.4 percent.

Software spending -- including Software as a Service (SaaS) -- has so far remained relatively resilient overall, with growth in constant currency of 5.5 percent still expected this year. However, by the end of 2013, almost 10 percent of annual software spending will have moved to the cloud.

"Enterprises are still investing in new software tools and solutions, especially where rapid cost-benefits have been identified, but more software sales are migrating to SaaS and PaaS delivery models," said Stephen Minton, Vice President in IDC's Global Technology & Industry Research Organization.

IDC believes this puts pressure on software vendors to compete with lower-margin cloud service providers, and the growth of cloud is also cannibalizing revenues from IT outsourcing and application hosting.

Choose Progress -- Explore the Cloud Advantage
Is fear, uncertainty or doubt about shifts and changes in the global networked economy holding back your business technology deployments in 2013? Consider the upside opportunities.

Some savvy business leaders are clearly bucking the trend and moving forward with additional new cloud service trials or increasing their current use of available offerings across their whole operations.

During the remainder of 2013, more executives will likely seek ways to harness the advantages of utilizing the just-in-time deployment benefits afforded by mature cloud service offerings.

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.


@CloudExpo Stories
Cloud promises the agility required by today’s digital businesses. As organizations adopt cloud based infrastructures and services, their IT resources become increasingly dynamic and hybrid in nature. Managing these require modern IT operations and tools. In his session at 20th Cloud Expo, Raj Sundaram, Senior Principal Product Manager at CA Technologies, will discuss how to modernize your IT operations in order to proactively manage your hybrid cloud and IT environments. He will be sharing bes...
SYS-CON Events announced today that DivvyCloud will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. DivvyCloud software enables organizations to achieve their cloud computing goals by simplifying and automating security, compliance and cost optimization of public and private cloud infrastructure. Using DivvyCloud, customers can leverage programmatic Bots to identify and remediate common cloud problems in rea...
SYS-CON Events announced today that Tintri, Inc, a leading provider of enterprise cloud infrastructure, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Tintri offers an enterprise cloud platform built with public cloud-like web services and RESTful APIs. Organizations use Tintri all-flash storage with scale-out and automation as a foundation for their own clouds – to build agile development environments...
SYS-CON Events announced today that Progress, a global leader in application development, has been named “Bronze Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Enterprises today are rapidly adopting the cloud, while continuing to retain business-critical/sensitive data inside the firewall. This is creating two separate data silos – one inside the firewall and the other outside the firewall. Cloud ISVs ofte...
SYS-CON Events announced today that Tappest will exhibit MooseFS at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. MooseFS is a breakthrough concept in the storage industry. It allows you to secure stored data with either duplication or erasure coding using any server. The newest – 4.0 version of the software enables users to maintain the redundancy level with even 50% less hard drive space required. The software func...
SYS-CON Events announced today that Interoute has been named “Bronze Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Interoute is the owner operator of Europe's largest network and a global cloud services platform, which encompasses over 70,000 km of lit fiber, 15 data centers, 17 virtual data centers and 33 colocation centers, with connections to 195 additional partner data centers. Our full-service Unifie...
SYS-CON Events announced today that EARP will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. "We are a software house, so we perfectly understand challenges that other software houses face in their projects. We can augment a team, that will work with the same standards and processes as our partners' internal teams. Our teams will deliver the same quality within the required time and budget just as our partn...
SYS-CON Events announced today that Carbonite will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Carbonite protects your entire IT footprint with the right level of protection for each workload, ensuring lower costs and dependable solutions with DoubleTake and Evault.
SYS-CON Events announced today that Super Micro Computer, Inc., a global leader in compute, storage and networking technologies, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Supermicro (NASDAQ: SMCI), the leading innovator in high-performance, high-efficiency server technology, is a premier provider of advanced server Building Block Solutions® for Data Center, Cloud Computing, Enterprise IT, Hadoop/...
SYS-CON Events announced today that Outscale will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Outscale's technology makes an automated and adaptable Cloud available to businesses, supporting them in the most complex IT projects while controlling their operational aspects. You boost your IT infrastructure's reactivity, with request responses that only take a few seconds.
While some vendors scramble to create and sell you a fancy solution for monitoring your spanking new Amazon Lambdas, hear how you can do it on the cheap using just built-in Java APIs yourself. By exploiting a little-known fact that Lambdas aren’t exactly single threaded, you can effectively identify hot spots in your serverless code. In his session at 20th Cloud Expo, David Martin, Principal Product Owner at CA Technologies, will give a live demonstration and code walkthrough, showing how to ov...
SYS-CON Events announced today that Technologic Systems Inc., an embedded systems solutions company, will exhibit at SYS-CON's @ThingsExpo, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Technologic Systems is an embedded systems company with headquarters in Fountain Hills, Arizona. They have been in business for 32 years, helping more than 8,000 OEM customers and building over a hundred COTS products that have never been discontinued. Technologic Systems’ pr...
As DevOps methodologies expand their reach across the enterprise, organizations face the daunting challenge of adapting related cloud strategies to ensure optimal alignment, from managing complexity to ensuring proper governance. How can culture, automation, legacy apps and even budget be reexamined to enable this ongoing shift within the modern software factory?
As cloud adoption continues to transform business, today's global enterprises are challenged with managing a growing amount of information living outside of the data center. The rapid adoption of IoT and increasingly mobile workforce are exacerbating the problem. Ensuring secure data sharing and efficient backup poses capacity and bandwidth considerations as well as policy and regulatory compliance issues.
SYS-CON Events announced today that Cloudistics, an on-premises cloud computing company, has been named “Bronze Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Cloudistics delivers a complete public cloud experience with composable on-premises infrastructures to medium and large enterprises. Its software-defined technology natively converges network, storage, compute, virtualization, and management into a ...
New competitors, disruptive technologies, and growing expectations are pushing every business to both adopt and deliver new digital services. This ‘Digital Transformation’ demands rapid delivery and continuous iteration of new competitive services via multiple channels, which in turn demands new service delivery techniques – including DevOps. In this power panel at @DevOpsSummit 20th Cloud Expo, moderated by DevOps Conference Co-Chair Andi Mann, panelists will examine how DevOps helps to meet th...
SYS-CON Events announced today that Progress, a global leader in application development, has been named “Bronze Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Enterprises today are rapidly adopting the cloud, while continuing to retain business-critical/sensitive data inside the firewall. This is creating two separate data silos – one inside the firewall and the other outside the firewall. Cloud ISVs oft...
SYS-CON Events announced today that A&I Solutions has been named “Bronze Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Founded in 1999, A&I Solutions is a leading information technology (IT) software and services provider focusing on best-in-class enterprise solutions. By partnering with industry leaders in technology, A&I assures customers high performance levels across all IT environments including: mai...
SYS-CON Events announced today that Peak 10, Inc., a national IT infrastructure and cloud services provider, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Peak 10 provides reliable, tailored data center and network services, cloud and managed services. Its solutions are designed to scale and adapt to customers’ changing business needs, enabling them to lower costs, improve performance and focus intern...
SYS-CON Events announced today that Linux Academy, the foremost online Linux and cloud training platform and community, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Linux Academy was founded on the belief that providing high-quality, in-depth training should be available at an affordable price. Industry leaders in quality training, provided services, and student certification passes, its goal is to c...