Welcome!

Containers Expo Blog Authors: Liz McMillan, Yeshim Deniz, Elizabeth White, Zakia Bouachraoui, Pat Romanski

Related Topics: @DevOpsSummit, Java IoT, Microservices Expo, Linux Containers, Containers Expo Blog, @CloudExpo

@DevOpsSummit: Blog Feed Post

Frugal and Agile DevOps | @DevOpsSummit [#DevOps]

What's driving the ongoing transition to lower business technology spending?

Frugal and Agile DevOps - the Cloud Computing Advantage

Accomplish much more, very rapidly, while spending less -- this is the business technology trend that savvy executives everywhere have embraced. Worldwide IT spending will reach a total $3.7 trillion in 2014, that's a 2.1 percent increase from last year, according to the latest global market study by Gartner.

This forecast, however, is down from their earlier projections of 3.2 percent growth.

What's driving the ongoing transition to lower business technology spending? The slower outlook for 2014 is attributed to a reduction in growth expectations for end-user devices, data center systems and IT related services.

Moreover, the typical IT investment is evolving. It's transitioning from a legacy focus on technology and processes, to a focus on new business models and associated strategic outcomes that are purposefully enabled by digitalization.

Transition within Enterprise Mobile Devices
The IT end-user devices market -- which includes PCs, ultrabooks, smartphones, tablets and printers -- is forecast to grow in 2014, reaching $685 billion -- that's a 1.2 percent increase from 2013.

According to Gartner's assement, this trend is due in part to lower price points across smartphones and tablets. Besides, sales of high-priced tablets will decrease, with the next wave of adopters more attracted to low-priced utility tablets.

"Price pressure based on increased competition, lack of product differentiation and the increased availability of viable alternative solutions has had a dampening effect on the short term IT spending outlook," said Richard Gordon, managing vice president at Gartner.

Transition within the Enterprise Data Center
Cloud computing is already impacting traditional business technology spending patterns. Data center systems spending is projected to reach $140 billion in 2014 -- that's just a 0.4 percent increase from 2013.

The server market also shows weakness as enterprises migrate away from high-cost platforms toward lower-cost alternatives. Furthermore, the ongoing adoption of Hybrid Cloud solutions will increasingly become a factor in shifting budget allocations. It's enabling the frugal and agile DevOps movement.

The hyperscale segment, primarily driven by consumer-oriented services, does provide some positive drivers to the market -- albeit for very low-cost platforms, which further impacts overall spending levels on data center systems.

Transition within IT Services, Software and Telecom
IT services is forecast to total $967 billion in 2014, up 3.8 percent from 2013. Modestly improved spending is expected through 2014. IT outsourcing is growing slower than anticipated, as sharply reduced pricing by the largest vendors is impacting the cloud storage services market.

In addition, public cloud services are proving increasingly cannibalistic to more traditional data center outsourcing services. Implementation services are also growing slower than expected as risk-averse buyers remain focused on smaller, safer projects.

In the enterprise software market, spending is on pace to total $321 billion -- that's a 6.9 percent increase from 2013. Slightly increased growth expectations for infrastructure software are balanced out by slightly lower growth expected for applications software.

Slower growth is expected in the applications market, specifically office suites and digital content creation (DCC), which are being impacted by slow PC sales and the rapid move to cloud-based offerings by many organizations and professionals.

Telecom services spending is projected to grow 0.7 percent in 2014, with spending reaching $1,635 trillion. Voice average revenue per user (ARPU) will decline by about 10 percent annually through 2018 because of a decline in consumer use of voice services -- particularly among prepaid mobile users.

Read the original blog entry...

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.

IoT & Smart Cities Stories
Codete accelerates their clients growth through technological expertise and experience. Codite team works with organizations to meet the challenges that digitalization presents. Their clients include digital start-ups as well as established enterprises in the IT industry. To stay competitive in a highly innovative IT industry, strong R&D departments and bold spin-off initiatives is a must. Codete Data Science and Software Architects teams help corporate clients to stay up to date with the mod...
There are many examples of disruption in consumer space – Uber disrupting the cab industry, Airbnb disrupting the hospitality industry and so on; but have you wondered who is disrupting support and operations? AISERA helps make businesses and customers successful by offering consumer-like user experience for support and operations. We have built the world’s first AI-driven IT / HR / Cloud / Customer Support and Operations solution.
At CloudEXPO Silicon Valley, June 24-26, 2019, Digital Transformation (DX) is a major focus with expanded DevOpsSUMMIT and FinTechEXPO programs within the DXWorldEXPO agenda. Successful transformation requires a laser focus on being data-driven and on using all the tools available that enable transformation if they plan to survive over the long term. A total of 88% of Fortune 500 companies from a generation ago are now out of business. Only 12% still survive. Similar percentages are found throug...
Druva is the global leader in Cloud Data Protection and Management, delivering the industry's first data management-as-a-service solution that aggregates data from endpoints, servers and cloud applications and leverages the public cloud to offer a single pane of glass to enable data protection, governance and intelligence-dramatically increasing the availability and visibility of business critical information, while reducing the risk, cost and complexity of managing and protecting it. Druva's...
BMC has unmatched experience in IT management, supporting 92 of the Forbes Global 100, and earning recognition as an ITSM Gartner Magic Quadrant Leader for five years running. Our solutions offer speed, agility, and efficiency to tackle business challenges in the areas of service management, automation, operations, and the mainframe.
The Jevons Paradox suggests that when technological advances increase efficiency of a resource, it results in an overall increase in consumption. Writing on the increased use of coal as a result of technological improvements, 19th-century economist William Stanley Jevons found that these improvements led to the development of new ways to utilize coal. In his session at 19th Cloud Expo, Mark Thiele, Chief Strategy Officer for Apcera, compared the Jevons Paradox to modern-day enterprise IT, examin...
With 10 simultaneous tracks, keynotes, general sessions and targeted breakout classes, @CloudEXPO and DXWorldEXPO are two of the most important technology events of the year. Since its launch over eight years ago, @CloudEXPO and DXWorldEXPO have presented a rock star faculty as well as showcased hundreds of sponsors and exhibitors! In this blog post, we provide 7 tips on how, as part of our world-class faculty, you can deliver one of the most popular sessions at our events. But before reading...
DSR is a supplier of project management, consultancy services and IT solutions that increase effectiveness of a company's operations in the production sector. The company combines in-depth knowledge of international companies with expert knowledge utilising IT tools that support manufacturing and distribution processes. DSR ensures optimization and integration of internal processes which is necessary for companies to grow rapidly. The rapid growth is possible thanks, to specialized services an...
At CloudEXPO Silicon Valley, June 24-26, 2019, Digital Transformation (DX) is a major focus with expanded DevOpsSUMMIT and FinTechEXPO programs within the DXWorldEXPO agenda. Successful transformation requires a laser focus on being data-driven and on using all the tools available that enable transformation if they plan to survive over the long term. A total of 88% of Fortune 500 companies from a generation ago are now out of business. Only 12% still survive. Similar percentages are found throug...
Scala Hosting is trusted by 50 000 customers from 120 countries and hosting 700 000+ websites. The company has local presence in the United States and Europe and runs an internal R&D department which focuses on changing the status quo in the web hosting industry. Imagine every website owner running their online business on a fully managed cloud VPS platform at an affordable price that's very close to the price of shared hosting. The efforts of the R&D department in the last 3 years made that pos...