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Canalys: IT industry leaders to grow 11 per cent in 2012

Canalys: IT industry leaders to grow 11 per cent in 2012

IT Titans Index reveals 16 per cent collective year-on-year revenue rise in 2011

Canalys, a company that delivers market insights to IT, channel and service provider professionals, has released the findings of its IT Titans Index, which tracks the financial performance of 12 public quoted vendors representative of the IT industry.

The Index tracks Apple, Cisco, Dell, EMC, Google, HP, IBM, Intel, Lexmark, Microsoft, Oracle, and SAP.

Findings revealed a 16 per cent year-on-year rise in 2011. An 18 per cent growth in Q1 and Q2 is attributed to growth in processors, pads, smartphones, storage, and enterprise software.

Additionally, Q3 saw a collective growth of 13 per cent, with Q4 at 15 per cent, even during the European debt crisis. The growth was driven by Apple, Google, and Intel, whereas enterprise-centric vendors only grew six per cent as a result of leadership changes and reorganisations.

Canalys senior analyst, Alex Smith, said, “Fears of a global economic meltdown triggered by the European debt crisis have subsided since peaking at the end of September.”

“Key indicators such as interbank lending and government bond yields are improving daily. Stock markets remain upbeat, particularly for tech companies as new IPOs emerge.”

Canalys predicts that the Index will increase by 11 per cent in 2012, encouraging vendors and channel partners to set this as their benchmark for a successful year in revenue growth.

As the global economic environment is still changing, growth is anticipated to slow in all regions, with only Europe expected to fall into recession in the first part of 2012.

Growth in the US will be moderate, and areas such as China, South-East Asia and Brazil are still booming.

Canalys expects three technology transitions will provide stimulus for growth in IT investments this year:

  • Enterprise mobility: the proliferation of smartphones and tablets in the workplace will make investment in enterprise mobility a priority in 2012. Organisations need to optimise workforce mobilisation to enable new collaboration methods and secure access to information.
  • Datacentre transformation: several factors will lead to an assessment of cloud computing. The transition will drive investment in datacentre new build, expansion and transformation. Growth in big data, analytics and desktop transformation will also be important drivers to infrastructure refresh.
  • Consumerisation: changes in the way users engage with IT will change IT consumption models. IT departments will increasingly be seen as facilitators of a self-service app store environment, presenting hardware, software and service opportunities.

Smith said, “As with GDP growth rates, IT investment projections tend to be too reflective of past economic and technology trends as well as disproportionately shaped by observations of Western markets and what CIOs expect.”

“Assessing forward-looking economic indicators, changing IT consumption models and consumer demand for technology point to stronger growth than many may have anticipated for 2012,


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