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In the Zone

Research roundup: PC demand, IT spending, cloud migration, healthcare cybersec

Peter Krass's picture

by Peter Krass on 07/14/2021
Blog Category: devices

PC demand is cooling. IT spending is entering a new phase. Cost-cutters are selling the cloud short. And DNS attacks are making healthcare very unhealthy.

That’s some of the latest from leading IT market watchers and industry surveys. And here’s your tech provider’s roundup.

PC forecast: hot today, cooler tomorrow

Last year’s surge in PC purchases made sense, given how many people were suddenly working from home due to the pandemic. But now, hasn’t everyone who needs a new laptop gotten one?

Pretty much, says IDC. While global PC shipments remained strong in this year’s second quarter, the market watcher sees early signs that consumer demand is slowing.

Worldwide shipments of traditional PCs — that’s desktops, laptops and workstations — totaled 83.6 million units in Q2. Compared with the year-earlier quarter, that's an increase of 13.2%.

To be sure, 13% growth is nothing to complain about. But it does mark a slowdown from the previous 2 quarters. In this year’s first quarter, global PC shipments rose 56% year-on-year. And in last year’s fourth quarter, PC shipments worldwide rose nearly 26%, IDC says.

Looking ahead, IDC believes the business and consumer ends of the PC market could head in opposite directions. Business demand for PCs is likely to rise as companies require workers to return to the office at least part-time. But consumer demand seems likely to fall, as consumers shift their spending priorities after a year of aggressive PC shopping.

IT spending: behold a new phase

Overall IT spending this year will rise nearly 9% over last year, hitting a worldwide total of $4.2 trillion, predicts Gartner. But that’s not even the most important part.

This is: “Tech spending is entering a new build phase.” That's according to Gartner research VP John-David Lovelock.

“This means building technologies and services that don’t yet exist,” Lovelock adds, “and further differentiating organizations in a crowded market.”

One area likely to get a big spending boost is IT services. Spending here grew only 1.7% last year, but this year will rise 9.8% to $1.18 billion, Gartner expects.

Gartner cites infrastructure as a service (IaaS) as the big-ticket item. Spending on IaaS can reduce spending for on-premises systems while fully supporting mission-critical workloads.

“Digital transformation can no longer be purchased overnight,” Lovelock says. “Global IT spending projections reflect that.”

Cloud: you get what you come for

Organizations that migrate to the cloud mainly to save money may be setting their sights too low. They'll get those savings. But they may miss out on other, even more valuable benefits.

That's according to a new Accenture report, based on the consulting firm’s survey of some 4,000 C-level execs worldwide.

Accenture finds that when organizations migrate to the cloud for cost-cutting, they do indeed save money. Accenture found that 65% of organizations that migrated to the cloud saw, on average, up to 10% cost savings.

Many of these same organizations see cloud as a fixed endpoint. Accenture calls that a limited migration mindset, which it believes is a big mistake.

For example, 80% of these organizations fail to prioritize the use of cloud-native architectures, applications and data for new initiatives.

By contrast, organizations that set a higher bar for the cloud also enjoy bigger benefits. These organizations see the cloud as a launch pad for both innovation and new ways of operating. As a result, they not only enjoy bigger cost savings than others, but also gain other benefits. They’ll also be better positioned to withstand future shocks, Accenture believes.

Healthcare: unhealthy with cyberattacks

During the pandemic, the healthcare industry suffered more DNS attacks than any other industry, finds a survey sponsored by network and automation vendor EfficientIP.

The average cost of a DNS attack on a healthcare organization last year rose 12% year-on-year, hitting $862,630.

Again, that’s the cost of just one attack. The average healthcare organization was the victim of a DNS attack nearly 7 times last year, the survey finds. On average, mitigating each attack took about 6.5 hours.

More than half of all healthcare respondents (53%) said their organizations suffered application downtime as the result of a DNS attack. Other results of DNS attacks on healthcare organizations included cloud-service downtime (reported by 46%), compromised websites (44%) and damage to their brand (31%).

Healthcare organizations are fighting back. Nearly 80% plan zero-trust initiatives. 

“We all knew the healthcare industry would be a prime target for cyberattacks during the pandemic,” says Ronan David, VP of strategy at EfficientIP. “But it's really fascinating and useful to see the data in black and white."

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