Only vendors that carry out a clear connected device strategy will gain from the $74B connected devices revenue opportunity

HAMPTON, N.H. (July 6, 2015) Technology Business Research Inc.’s (TBR) 1Q15 Devices and Platforms Benchmark shows the connected devices market is primed for explosive growth through 2020, particularly as demand catches up with the rapid pace of product development. TBR believes this market will be significant for device vendors, growing at a nearly 80% CAGR over the next five years, primarily due to successful tandem releases of future Apple’s wearables and iPhones. The opportunity will be available to all vendors, but only vendors that execute strategies successfully will earn a share of the $74 billion revenue opportunity. Continue reading

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1Q15 vendor performance supports a more positive market outlook, potentially resulting in recaptured growth by the end of 2015

HAMPTON, N.H. (July 6, 2015) Vendors remained comparatively upbeat, relative to the past few years, in discussing their public sector businesses during 1Q15 as the top-line impact of budget constraints, particularly among U.S. defense clients, continued to wane during the quarter. The improved U.S. federal market, combined with traction in adjacent market expansion initiatives, pared top-line contraction among many public sector IT and professional services vendors. Continue reading

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Emerging and unpredictable workloads will shift server and storage growth opportunities and cause vendor revenue share to splinter

HAMPTON, N.H. (July 6, 2015) — Global data center server and storage array revenues will rise at a 1.6% CAGR to $87.8 billion from 2014 to 2019 as IT shifts from a cost center to an enabler of business outcomes for customers, according to Technology Business Research Inc.’s (TBR) Data Center Server and Storage Market Forecast. TBR’s research indicates IT spend continues to increase, but opportunities are shifting. Demand for stand-alone proprietary servers and storage is declining as customers seek new ways to improve IT agility, efficiency and simplicity. This will make way for converged systems, hyperscale servers and flash storage to lead the server and storage market in growth through 2019. Continue reading

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Centralized management and control over multicloud environments drive demand for hybrid cloud

HAMPTON, N.H. (July 6, 2015) — The need for collaboration across IT and lines of business (LOBs) in decision making and for a cloud management layer to give customer visibility and control over their cloud environments is driving hybridization. Technology Business Research Inc.’s (TBR) Hybrid Cloud Customer Research report analyzes the increasing opportunities for cloud hybridization, and TBR estimates the hybrid cloud integration market will generate $8 billion in 2015 for integration alone. When taking into account the broader cloud market pull-through driven by hybrid integration, the number grows exponentially.

Currently, 24% of all large enterprises have begun their hybrid transformation, and we expect this number to grow. Not only will more cloud customers begin to hybridize, hybrid customers will expand their integration across cloud-to-cloud and cloud-to-on-premises tools and solutions. Continue reading

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Red Hat will make $2B supporting free software in 2015

By Andrew Smith, Software Analyst, and Geoff Woollacott, Software and BI Principal Analyst and Practice Manager

TBR perspective

The middleware keynote speech by Red Hat CEO Jim Whitehurst during the 2015 Red Hat Summit began with an explanation of Red Hat’s value in the enterprise and its vision for being an open source cloud infrastructure leader. Red Hat Enterprise Linux (RHEL), the vendor’s flagship OS offering, won the open source wars, beating Unix to become one of the only legitimate competitors of Windows in the enterprise. Red Hat is amid a disruptive industry shift, driven by the convergence of social, economic and technology trends forcing enterprises to digitize their business and IP faster than ever. Hybrid cloud is the predominant architecture enabling this shift, and Red Hat wants to be the integration and management technology provider of choice. The vendor will use its entrenched position in the Linux open source community to execute a cloud strategy similar to its RHEL strategy. Through the OpenStack and OpenShift communities, Red Hat will contribute to, build and deliver open cloud platforms that can integrate with the widest set of hardware and applications possible — a strategy that will garner its $2B in annual revenue.

Red Hat is the leader in OpenStack and OpenShift cloud development. The vendor uses its reputation as a leading enterprise Linux provider to extend its value and customer engagement to cloud platform and infrastructure layers as well as storage and virtualization. Red Hat refers to this development model as its open hybrid cloud vision to deliver fully engineered solutions based on RHEL. The vendor plans to simultaneously deliver and support software solutions across four infrastructures: physical, virtual, private cloud and public cloud. Continue reading

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Security is the top customer priority in the $35B cloud professional services market

HAMPTON, N.H. (July 6, 2015) — Cloud “as a Service” adoption follows that of cloud professional services, as enterprises seek advisory and integration in the early stages of cloud adoption. With security a top perceived risk for enterprises and often the key differentiator between vendors, cloud customers look to professional and managed services options to provide the entire spectrum of cloud deployment, delivering the ease of use of cloud offerings with the added security of managed services. The cloud professional services market, which TBR currently values at $35 billion, is expected to grow at a 9% CAGR, reaching $55 billion by 2020. Continue reading

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A rebounding healthcare IT sector in 2015 offers opportunities for vendors struggling against slow global IT services growth

HAMPTON, N.H. (July 1, 2015) — According to Technology Business Research Inc.’s (TBR) 1Q15 Healthcare IT Services Benchmark, global market growth in healthcare IT services (HITS) began to rebound in 1Q15, accelerating 170 basis points sequentially to 6.5% on a trailing 12-month basis. TBR attributes much of the increase to the inorganic impact of the strategic acquisitions made in 2014 by Cognizant (TriZetto) and Cerner (Siemens Health Services). Net of these acquisitions, TBR estimates average weighted year-to-year growth in 1Q15 would have been between 5.3% and 5.6%. Continue reading

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