Big cloud providers got even bigger. IoT spending in Europe should grow this year. And a Chinese OEM has joined the world’s 10 biggest spenders on semiconductors.
That’s some of the latest from IT industry watchers. Here’s your tech provider’s briefing.
Two big cloud providers got even bigger in the fourth quarter of last year.
That’s according to market watcher Canalys. It estimates that Amazon Web Services’ Q4:18 revenue grew 46% year-on-year to reach $7 billion. And that Microsoft Azure grew by an even faster 76% to reach $4 billion.
To drive this growth, cloud service providers have been making massive investments in cloud infrastructure, Canalys says. The spending aims to expand their geographic coverage — thereby bringing data centers closer to customers — and refresh existing data centers to optimize operating costs.
Both providers have new data centers under construction AWS has 60 data centers worldwide, and 12 more under construction. Microsoft has 54, with 10 more under construction.
Internet of Things spending in Europe will grow this year by nearly 20% to reach $171 billion, predicts IDC.
By spending type, nearly half the money will go to hardware ($66 billion this year) and services ($60 billion). The remainder will be spent on software ($35 billion) and connectivity ($10 billion), IDC predicts.
The market watcher expects this double-digit growth to continue through at least 2022, when it forecasts European spending on IoT will top $241 billion.
“We’re still just scratching the surface of how powerful IoT solutions can be when combined with the massive scale of IoT endpoints, world-class connectivity and advanced technology,” says IDC program managers Milan Kalal.
Europe’s top IoT spenders this year by country will be Germany, France, the UK and Italy, IDC predicts. By industry, it adds, the top spenders in European IoT this year will be discrete manufacturing, utilities, retail and transportation.
European consumers will spend a lot on IoT, too. IDC estimates they’ll spend more than $32 billion this year on things like smart-home systems, personal-wellness devices and connected vehicles.
Four OEMs from China are now among the world’s top 10 buyers of semiconductor chips, up from 3 a year ago, says Gartner.
The 4 China-based OEMs are Lenovo, Huawei, BBK Electronics and Xiaomi. The newest member of the Top 10 club is Xiamoi. The company increased its spending on chips last year by nearly 63%, to $7.1 billion.
Huawei also made a big increase in its spending on chips last year — up 45% to some $21.1 billion.
By contrast, Apple and and Samsung slowed the growth of their chip spending last year. They still spent more in 2018 than they did the year before, just at a lower rate than in the past.
One factor behind the spending changes is consolidation, IDC says. Some large Chinese smartphone OEMs have grown market share by acquiring competitors.