Cloud infrastructure services spending is taking off. The Internet of Things has a skills shortage. And machine-to-machine connections will be driven by some fairly old-fashioned tech.
That’s the latest from leading IT market watchers. And here’s your tech provider’s roundup.
Cloud infrastructure services
How strong is the cloud market? Very, says Canalys.
The market watcher’s newest figures show the worldwide spend on cloud infrastructure services swelled 38% during this year’s second quarter, rising to $26.3 billion. That also marked a year-on-year increase of $7.2 billion, the largest quarterly rise ever, Canalys says.
During the same quarter, the top 4 cloud service providers consolidated their hold on the market. A year ago these 4 CSPs — Amazon Web Services, Google Cloud, Alibaba Cloud and Microsoft Azure — together controlled 59.4% of the worldwide market for cloud services. Now their consolidated market share has risen to 63.6%.
However, the order of these 4 leaders over the last year remains unchanged. AWS is still the leader, with a 31.5% market share. No one else comes even close. Microsoft is No. 2 with an 18.1% market share, followed by Google Cloud (9.5%) and Alibaba (4.6%). “Others” collectively account for the remaining third.
IDC just completed its 7th annual survey of Internet of Things decision-makers; it reached respondents across 6 industries and 29 countries. Buying the full report would cost you $4,500. Save your money; here are the survey’s top findings:
> 83% of the organizations surveyed now have budget allocated for IoT.
> IT departments, not business units, control most of those IoT budgets.
> Today’s top goals for IoT spending: improved productivity, lower costs and higher product quality. One key goal of past surveys, security, was not among the top goals this year.
> The skills gap remains a top barrier for many IoT implementers. Professionals with the required skills are still hard to find and expensive to hire. Training current staff is another option, but it can be slow.
> 56% of unsuccessful IoT projects were determined in months, not years. This allowed the organizations to “fail fast” (an Agile concept) and then either revise their goal or move on to another IoT project.
The global market for cellular machine-to-machine (M2M) networks is poised for nearly 4x growth over the next 5 years, predicts ABI Research. Surprisingly, most of that growth will be driven not by newer 5G and low-power wide-area (LPWA) networks, but by older 4G and even 3G networks.
Overall, worldwide cellular M2M networks will expand from 620 million connections this year to 3 billion connections in 2024, the research firm predicts.
During the same period, ABI expects, revenue from these connections will double, reaching $32 billion.
So far, so good. But here’s the surprising part: Of that $32 billion, 72% — that’s roughly $23 billion — will come from older technology, namely 3G and 4G connections.
This result is partly due to the influence of connected-vehicle markets, which will rely heavily on 3G and 4G technologies. But, says ABI VP Dan Shey, “it also reflects supplier focus on bringing full-stack solutions to well serve very specific vertical markets.”
Shey adds: “Regardless of network technology, operators can gain greater share of value-added services revenues by formulating the right set of services and partnerships to create high-value, end-to-end M2M solutions.”