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Roughly 75% of mobile app ads are just promoting other apps

CNN Money

Have a look at your smartphone apps. Notice anything peculiar about the ads? In the majority of cases, the only things they’re advertising are … other apps.

Estimates vary, but analysts say a significant majority of ads in mobile apps simply promote other apps. Karsten Weide, an analyst with IDC, pegs the total at between 60% and 75%; mobile ad company Fiksu says it’s between 50% and 85%, depending on the time of year.

What does all this mean for the future of the app business? If most of the advertising dollars are coming from within the industry, is this a bubble about to burst?

Quite the opposite, industry experts say — the numbers show app makers and advertisers simply haven’t yet figured out how to tap this promising business.

Mobile apps overtook desktop browsers earlier this year as the dominant means by which Americans access the Internet.

Read on…

Enterprise Networking Market in India to Remain Strong and Grow

IDC PMS4colorversion no shadow 300x98 Enterprise Networking Market in India to Remain Strong and Grow

According to International Data Corporation (IDC), the Networking market in India witnessed growth due to huge investments in 2Q2014 Q-o-Q as well as Y-oY. According to IDC’s APeJ Quarterly Switch and Router tracker, the Ethernet Switch market  stood strong at USD 128.4 million in terms of customer revenue during Q2 2014 growing 19.2% Q-o-Q and  29.1% Y-o-Y. The router market, however, witnessed sharp decline from previous  quarter that had a spike due to various reasons, by 17.4%. However, the market garnered a total of USD 68.4 M, a 12.3% growth Y-o-Y. Cisco retained its dominance in the Switch & Router market winning deals primarily in the telecom vertical. 2Q 2014 was also attributed to the various announcements and framing of tenders for the government projects that are due to be executed in the coming quarters. Further growth is expected in the coming quarters as well. Large to midsized deals were also visible in the government vertical. SMB segment also witnessed deals in various verticals specially the tier II & tier III banks. Manufacturing, utility and banking were the fastest growing verticals in 2Q and are expected to continue with their spending pattern in the coming quarters as well.

Continue reading…

Africa’s Digital Future Remains Bright Despite Myriad Challenges

IDC PMS4colorversion no shadow 300x98  Africas Digital Future Remains Bright Despite Myriad Challenges

Spurred by increased infrastructural investments, improved connectivity and affordability, positive government interventions, and the spread of mobility, the African digital media landscape is rapidly evolving, according to global IT market intelligence firm International Data Corporation (IDC). Referencing its ‘Assessment and Outlook of the Digital Media Ecosystem in Africa’ report, IDC today said the future remains bright for the continent, although key challenges such as low propensity to pay for applications and content as well as lack of ubiquitous high speed broadband infrastructure continue to hamper progress and will take a while to resolve.

“The digital picture in Africa is changing rapidly,” says Leonard Kore, a research analyst for telecommunications and media at IDC East Africa. “Internet penetration is on the rise, buoyed by increased infrastructure investments, while the landing of undersea fiber-optic cables connecting Africa to the rest of the world has greatly reduced transmission time and costs while increasing bandwidth capacity. Although only an estimated 19% of the continent’s 1 billion population is online, this situation is expected to improve as investments in infrastructure continue to gain momentum; this includes 2G and 3G network infrastructure expansion and fiber to the x (FTTx).”

Mobile usage has had a transformative impact in Africa. Other key factors include the high digital appetite for social media and the impending digital migration, while other sectors such as ecommerce have had a tough time gaining traction. The digital disruption has significantly changed consumer behavior, and service usage patterns have altered as a result, with consumers now seeking devices with intuitive interfaces, content-rich applications, and faster connectivity capabilities as they spend more time online.

Continue reading…

Four New IDC MaturityScape Benchmarks to Assist CIOs, IT and Line of Business Executives to Achieve Industry Superiority

IDC PMS4colorversion 1 300x99 Four New IDC MaturityScape Benchmarks to Assist CIOs, IT and Line of Business Executives to Achieve Industry Superiority

New reports explore enterprise architecture, enterprise IT transformation, vendor and sourcing management, and service management

Framingham, MA – October 6, 2014 – International Data Corporation (IDC) today announced four new IDC MaturityScape Benchmark studies, providing organizations a unique opportunity to compare maturity against that of peers with the IDC MaturityScape system of dimensions and sub-dimensions. The four IDC MaturityScape Benchmark studies explore Enterprise Architecture, Enterprise IT Transformation (EIT), Vendor and Sourcing Management, and Service Management. These studies build on IDC MaturityScapes, unveiled earlier this year, which provide a structured way for organizations to identify their current level of capability or maturity, and the gap between where they are and where they should be to maintain competitive balance or achieve industry superiority.

  • ClicktoTweet, “@IDC Releases Four New #IDCMaturityScapeBenchmarks to Assist CIOs, #IT and Line of Business Executives to Achieve #IndustrySuperiority”

IDC MaturityScape Benchmark: Enterprise Architecture in the United States

This IDC study presents the results of IDC’s 2014 MaturityScape Benchmark: Enterprise Architecture Survey, a companion to IDC MaturityScape: Enterprise Architecture (IDC # 247401, March 2014). This pair of studies provides an opportunity for enterprise-class organizations to benchmark themselves against other similarly sized organizations in terms of their enterprise architecture maturity, to uncover maturity gaps among different dimensions, and to plan for improvement. These studies enable CIOs, IT executives, and other senior leaders to optimize decision making from both a business and a technical perspective.

IDC MaturityScape Benchmark: Enterprise IT Transformation (EIT)

This IDC study presents the results of IDC’s global 2014 Enterprise IT Transformation MaturityScape Benchmark Survey, and complements IDC MaturityScape: Enterprise IT Transformation (EIT) (IDC # 248141, April 2014). The new study enables organizations to assess their capabilities with regard to 3rd Platform strategy and innovation, to identify maturity gaps among different dimensions and areas of capability that need improvement, and to take actions to achieve the level of maturity that satisfies their business needs.

IDC MaturityScape Benchmark: Vendor and Sourcing Management in the United States

This study presents the results of IDC’s 2014 Vendor and Sourcing Management MaturityScape Benchmark Survey and is a supplement to IDC MaturityScape: Vendor and Sourcing Management — A Framework to Maximize Value and Drive Innovation (IDC # 247458, March 2014). This IDC study provides an opportunity for organizations to benchmark their VSM maturity against the industry standard, assess IT vendor and sourcing management competency and maturity and, most important, prioritize their VSM-related investment decisions.

For the full release, click here

Worldwide Integrated Infrastructure and Platforms Revenue Increased 33.8% Year Over Year to $2.4 Billion in the Second Quarter of 2014

IDC PMS4colorversion 1 Worldwide Integrated Infrastructure and Platforms Revenue Increased 33.8% Year Over Year to $2.4 Billion in the Second Quarter of 2014

FRAMINGHAM, Mass. – According to the International Data Corporation (IDCWorldwide Quarterly Integrated Infrastructure and Platforms Tracker, the worldwide integrated infrastructure and platforms market increased revenue 33.8% year over year to $2.4 billion during the second quarter of 2014 (2Q14). The market generated more than 833 petabytes of new storage capacity shipments during the quarter, which was up 63.4% compared to same period a year ago. First half results were comparable with the market value growing 35.9% compared to 1H2013, to $4.3 billion.

“It’s notable that sales of integrated systems have driven considerable and continued growth at a time when many portions of the enterprise infrastructure market have experienced lackluster results,” said Eric Sheppard, Research Director, Storage. “Integrated systems have clearly become a critical go-to market approach and an important source of growth for infrastructure suppliers looking to capitalize on a market need to reduce datacenter infrastructure inefficiencies.”

“IDC continues to find enterprise customers bullish in their adoption of integrated systems; a greater number of customers are considering these solutions in their IT procurement decisions,”said Jed Scaramella, Research Director, Enterprise Servers. “As a result the integrated systems market is shaping up to be a competitive battleground for IT vendors. A critical win in the market translates into increased footprint within the customer base, usually at the expense of a competitor.”

Integrated Platforms vs. Integrated Infrastructure

IDC distinguishes between two market segments: Integrated Platforms and Integrated Infrastructure. Integrated platforms are integrated systems that are sold with additional pre-integrated packaged software and customized system engineering optimized to enable such functions as application development software, databases, testing, and integration tools. Integrated infrastructure systems are designed for general-purpose, distributed workloads that are likely to have differing performance profiles. While integrated infrastructure is similar to integrated platforms in that it will leverage the same infrastructure building blocks, it is not optimized for a specific workload.

During the second quarter of 2014, the Integrated Platforms market generated more than $1 billion in sales, which represented an 11.1% year-over-year growth rate and 43.7% of the total market value. Oracle was the largest supplier of Integrated Platform Systems with $577 million in sales, or 55.0% share of the market segment.

 Continue reading…

 

New IDC Study Finds that Tech Marketing Budgets Will Rebound in 2014 with Average Increase of 3.5% for the Largest IT Vendors

IDC PMS4colorversion 1 New IDC Study Finds that Tech Marketing Budgets Will Rebound in 2014 with Average Increase of 3.5% for the Largest IT Vendors

This in spite of tech marketing turmoil and transformation, as half of tech companies replaced CMO in last 24 months

FRAMINGHAM, Mass. – The 12th Annual Tech Marketing Benchmark Study from the International Data Corporation (IDCCMO Advisory Service finds that marketing budgets among the 101 technology companies surveyed will increase by an average of 3.5% in 2014. Those same companies expect a revenue increase of 3.7% for the same period. Despite this momentum, the CMO role remains very fluid as marketing organizations attempt to reinvent their capabilities and effectiveness in a new era of marketing. In a related study, IDC finds that 51% of tech CMO’s have been in their position for fewer than two years.

Two-thirds of the companies surveyed by IDC will increase their marketing budgets in 2014 while only 20% of the companies will decrease their marketing budgets with the remainder indicating no change in budget levels. Notably, companies with a high percentage of 3rd Platform products (cloud, social, mobile and Big Data and analytics) will receive marketing budget increases upwards of five times that of the average tech company, increasing their budgets 10-20% year over year.

“For the first time in eight years, IDC is seeing that marketing budgets are increasing at about the same rate as revenues. This is positive news for tech marketers and also a clear indication that the C-suite is ready to put additional marketing investment up against more promising business prospects,” saidSam Melnick, Senior Research Analyst, IDC CMO Advisory Service. “However, both the CMO and CEO must understand that momentum is being driven by success in 3rd Platform solution areas. To continue this growth, executives must continue to invest to be competitive in these high-upside segments.”

“We examined 152 tech companies with a current CMO in place and found that 77, just over half, have replaced their CMO in the last 24 months – an astonishing rate of change. CMOs must own the digital disruption of buyer experience for their companies. Those CMOs able to rise to the challenge will be provided more resources and given more power. The unprepared will be replaced,” said Kathleen Schaub, Vice President, IDC CMO Advisory Service. “However, tech CEOs must also wake up to the impact marketing now wields over revenue and reputation. It’s their job to pick the right person for today’s challenges. To get CMO selection right means the CEO needs to understand and get closer to marketing.”

The 12th annual 2014 Tech Marketing Benchmark Study was recently completed by IDC’s CMO Advisory Service and seeks to capture the full marketing spend and marketing headcount allocations of global companies within the technology sector. The research effort surveyed 101 companies, with the average company’s revenue surpassing $7 billion. IDC’s 2015 Marketing Investment Planner containing study details will be published in November and will be available on IDC.com. In a parallel study, the CMO Advisory Service studied 152 tech companies ranging from $50 million to $100 billion in revenue to observe their CMO tenure.

About IDC

International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. IDC helps IT professionals, business executives, and the investment community to make fact-based decisions on technology purchases and business strategy. More than 1,000 IDC analysts provide global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries. In 2014, IDC celebrates its 50th anniversary of providing strategic insights to help clients achieve their key business objectives. IDC is a subsidiary of IDG, the world’s leading technology media, research, and events company. You can learn more about IDC by visiting www.idc.com. Follow IDC on Twitter at @IDC.

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U.S. Federal Cloud Forecast Shows Sustained Growth Through 2018, According to IDC Government Insights

IDC PMS4colorversion 1  U.S. Federal Cloud Forecast Shows Sustained Growth Through 2018, According to IDC Government Insights

FRAMINGHAM, Mass., September 16, 2014IDC Government Insights today announced the availability of a new report, Perspective: Looking Up – U.S. Federal Cloud Forecast Shows Sustain Growth Through 2018 (Doc #GI250735). The detailed report, a follow-up to IDC Government Insights’ inaugural cloud spending forecast in July 2013, evaluates how the U.S. Federal Government is spending part of its IT budget on cloud-based solutions. According to the new forecast, cloud spending now represents about 5% of all IT spending by the federal government. IDC Government Insights expects that the growth will continue into FY2015.

  • ClicktoTweet:  IDC U.S. Federal Cloud Forecast Shows Sustained Growth Through 2018, According to IDC Government Insights

For five years, both the U.S. Federal CIO Council and the Office of Management and Budget (OMB) have been pushing government agencies to move some types of IT systems to the cloud, particularly new systems, stored data, and mobile solutions. The ongoing level of spending on cloud solutions indicates that this effort is finally having a significant long-term effect. Total cloud spending is going up and the nature of cloud spending itself is changing.

Key highlights from the forecast include:

  • Federal cloud spending for FY2014 will come in higher that originally predicted. A year ago, OMB stated that agencies are slated to spend a little over $2.2 billion on cloud solutions for 2014. By the end of this fiscal year, that number will grow to more than $3.0 billion.
  • As in the previous two years, OMB has predicted a slight pull-back on cloud spending for upcoming FY2015. The current estimate is just under $2.9 billion for next year, however, IDC Government Insights believes that cloud spending will actually increase, not decrease, for FY2015, rising to perhaps to as much as $3.4 billion.
  • Software as a Service (SaaS) is passing Infrastructure as a Service (IaaS) as the largest type of cloud spending. Last year, OMB estimated that agencies would spend $1.2 billion on IaaS and $724 million on SaaS for FY 2014. This meant that government was different than other industries, since most spend more of their cloud dollars on SaaS. But by the time FY2014 ends on September 30th, the federal government will have spent just $986 million on IaaS, and over $1.3 billion on SaaS.

Read more…

Infographic: Enterprise Mobility in Asia/Pacific

IDC PMS4colorversion 1 300x99 Infographic: Enterprise Mobility in Asia/Pacific

Improving employee productivity, business agility and customer experiences are the top three reasons companies are supporting enterprise mobility. However, despite the relatively low increase in cost, IDC sees that more organizations testing mobility management are opting for Mobile Device Management (MDM) solutions rather than more holistic Mobile Enterprise Management (MEM) ones. IDC examines the state of place in Asia/Pacific.

For more IDC infographics, click here

APAC enterprise mobility infographic1 Infographic: Enterprise Mobility in Asia/Pacific

 

Tablets with voice calling functions take off in Asia

IDG News Service

Using a tablet to make a phone call may sound unorthodox. But in Asia’s emerging markets, vendors are increasingly shipping 7-inch tablets with voice call functions, according to research firm IDC.

During the second quarter, electronics vendors shipped 13.8 million tablets to the Asia Pacific region, excluding Japan, IDC said on Wednesday. Of those tablets, 25 percent were designed for voice calls over a cellular network. This marked a jump of 10 percentage points from the first quarter.

Voice call tablets are taking off in China, India, Indonesia, Malaysia and Thailand, said Avinash Sundaram, an IDC analyst, who added that it had become a trend unique to Asia.

Although large screen phones are already popular, some consumers in the region have tighter budgets, and want a product that merges all their electronic needs into a single device, Sundaram said.

“They don’t want to walk around with a phone, tablet and PC,” he said. “This is basically addressing budgetary needs.”

Vendors releasing these products include Samsung, which early on incorporated voice call features into its tablets, along with Asus, Huawei and Lenovo. But smaller vendors such as India’s Micromax and Indonesia’s Advan Digital are also fueling the market with rival tablets.

“We definitely see this as a vendor strategy to help differentiate their products,” Sundaram said. Many of these tablets cost between US$100 to $300.

It’s still not known how many consumers in Asia use their tablets for voice calls. But vendors are marketing the features in their advertisements.

“If we look at advertising campaigns in India, Indonesia, they call it a tablet with voice option,” Sundaram said. Vendors could conceivably put cellular features into all their tablets. But bigger companies such as Samsung might refrain from doing so, to better position their smart phone products, he added.

“From a vendor perspective, they want to target every single kind of device, as opposed to selling one kind of device,” he said. “There are no technical hurdles. It’s more about product strategy.”