IT in transition Steve Brazier 2 May 2013 Insight. Innovation. Impact. Presentation download Username: trends Password: visions

IT in transition

Steve Brazier2 May 2013

Insight. Innovation. Impact.

Presentation downloadwww.canalys.com/download/also

Username: trendsPassword: visions

Available until: 31 May 2013


The industry has transformed

Win-dows64%

Others36%

Win-dows25%

Others

75%

PCs worldwide2013: 478 million units

Smart devices worldwide 2013: 1.4 billion units


Q1 2013 produces another steady quarter

Source: Latest reported fiscal results for Apple, Cisco, Dell, EMC, Google, HP, IBM, Intel, Lenovo, Microsoft, Oracle, Samsung, SAPLexmark has been replaced by Lenovo in the IT Titans Index; all historical information has been updated with Lenovo results

Q1 201

1

Q2 201

1

Q3 201

1

Q4 201

1

Q1 201

2

Q2 201

2

Q3 201

2

Q4 201

2

Q1 201

3

6%

19%

12%

6%

14%18%

24%

16%

4%

Market capitalization

Net income growth

Q1 201

1

Q2 201

1

Q3 201

1

Q4 201

1

Q1 201

2

Q2 201

2

Q3 201

2

Q4 201

2

Q1 201

3

16% 15%14% 15%

13%

8% 8% 7% 7%

Net revenue growth

Year-on-year growth

Canalys IT Titans Index

Q1 201

1

Q2 201

1

Q3 201

1

Q4 201

1

Q1 201

2

Q2 201

2

Q3 201

2

Q4 201

2

Q1 201

3

23% 26%17% 21%

28%

-9%

-27%

-12%

3%


But virtually all the growth is in AsiaCanalys IT Titans Index

Revenue growth by region

Q4 201

1

Q1 201

2

Q2 201

2

Q3 201

2

Q4 201

2

Q1 201

3

16%20%

11%12%15%

21%

Q4 201

1

Q1 201

2

Q2 201

2

Q3 201

2

Q4 201

2

Q1 201

3

9% 8%

3% 2% 1%

-0.2%

Q4 201

1

Q1 201

2

Q2 201

2

Q3 201

2

Q1 201

2

Q1 201

3

16%10%10% 9%

6%

-1%

Europe, Middle East & Africa

Americas

Asia Pacific

Source: Vendor financial reports and Canalys estimates, April 2013Lexmark has been replaced by Lenovo in the IT Titans Index; all historical information has been updated with Lenovo results


Most predict better economies in second half

Q1 2012

Q2 2012

Q3 2012

Q4 2012

Q1 2013

Q2 2013

Q3 2013

Q4 2013

Q1 2014

Q2 2014

Q3 2014

Q4 2014

-2%

-1%

0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

10%

France

Ger-many

China

India

UK

US

Japan

GDP growth

GDP growth rates by key economies

Source: Consensus Economics, April 2013


Android38.9%

Apple60.3%

Microsoft0.8%

Tablets in DenmarkQ4 2011: 138,000 unitsQ4 2012: 235,000 units

Growth: 70%

Expect Android to lead by year-end

Apple60.3%

Sam-sung

23.1%

Google6.0%

Others10.6%

OS vendorTablet PC vendor

Source: Canalys estimates, Tablet PC Analysis, February 2013


Partners that transform effectively will profit

One of the best years

ever

A strong, healthy year

A good year in difficult circum-stances

A real struggle;

profits were thin

2012 meant gloom and losses for channel partners

0%

10%

20%

30%

40%

50%

Percentage ofrespondents

Source: Candefero quick poll, 292 respondents, January 2013

What was your impression of overall channel profitability in

2012?


Three Chinese vendors in global top five

APAC49.7%

EMEA23.8%

North America20.5%

Latin America6.0%

Sam-sung

29.0%

Apple22.1%

ZTE4.7%

Lenovo4.4%

Sony4.0%

Others30.5%

Worldwide smart phone shipments

Q4 2011: 158.5 million unitsQ4 2012: 216.5 million units

Growth 36.6%Top smart phone

vendors Regions

Huawei5.3%

Source: Canalys estimates, Smart Phone Analysis, February 2013


Low prices accelerating technology adoption

‘Prosumers’ ‘Confessionals’Only a small proportion could afford the latest and highest

featured technology.Most have access to it, and want to use it for work, with or without

the knowledge of employers.

2000 to 2010… Now…

Now is the time for CTOs to know what technology their employees are using and implement solutions to address

critical issues.

Apps replace people


Technology will become a lifestyle

Sports and fitness

Medical and wellness

Consumer electronics


Security


Data center transformationData center spending

People Equipment Shared

2012

2016

On-premises

Managed HostedCloud

services

71% 12% 13% 3%

53% 19% 21% 7%

Source: Canalys estimates, February 2013


Consumer

Existing outsourced

apps

New

Criticalpain points


Data center

s

30%YOY

Consumer TV, social

Co-location

B2B, cloud

Share price

Profit?

Profit?

Bandwidth& power


AnalyticsAnalytics


An industry and channel in transition

IT in transition

Steve Brazier2 May 2013


Presentation downloadwww.canalys.com/download/also

Username: trendsPassword: visions

Available until: 31 May 2013

Americas: Suite 316, 855 El Camino Real, Palo Alto, CA 94301, US | tel: +1 650 681 4488

APAC: 2532 Wheelock Square, 1717 Nanjing West Road, Jing An District, Shanghai, China, 200040 | tel: +86 21 6157 5113

APAC: 1 Robinson Road, AIA Tower, #14-02, Singapore 048542 | tel: +65 6671 9399

EMEA: Diddenham Court, Lambwood Hill, Grazeley, Reading RG7 1JQ, UK | tel: +44 118 984 0520

e-mail: [email protected] | web: www.canalys.com

The written content of this document represents our interpretation and analysis of information generally available to the public or released by responsible individuals in the subject companies, but is not guaranteed as to accuracy or completeness. It does not contain information provided to us in confidence by the industry. Market data contained in this document represents Canalys’ best estimates based on the information available to it at the time of publication.

Canalys has a liberal policy with regard to the re-use of information that it provides to its clients, whether within reports, databases, presentations,e-mails or any other format. A client may circulate Canalys information to colleagues within his or her organization worldwide, including wholly-owned subsidiaries, but not to a third party. For the avoidance of doubt, sharing of information is not permitted with organizations that are associated with the client by a joint venture, investment or common shareholding. If you wish to share information with the press or use any information in a public forum then you must receive prior explicit written approval from Canalys.


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IT in transition Steve Brazier 2 May 2013 Insight. Innovation. Impact. Presentation download Username: trends Password: visions