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Smartphones, Software Leading Global IT Market Spending

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According to the newly published International Data Corporation (IDC) Worldwide Black Book, recent volatility will gradually give way to a more positive outlook for IT spending in the second half of 2014.

The report contains that with the U.S. and other mature economies mostly heading in the right direction and a significant commercial PC refresh cycle already underway, improvements in business confidence are set to drive a moderate infrastructure upgrade cycle over the next 12-18 months, while investments in software and services will continue to accelerate.

Worldwide IT spending is now forecast to increase by 4.5% in 2014 at constant currency, or 4.1% in U.S. dollars.

A significant proportion of this growth is still being driven by smartphones, as IT spending excluding mobile phones will increase by just 3.1% this year in constant currency (2.8% in U.S. dollars).

Aside from smartphones, the strongest growth will come from software, including rapidly expanding markets such as data analytics, data management, and collaborative applications including enterprise social networks.

The 3rd platform pillars of Big Data, Social, Mobile and Cloud will continue to drive virtually all of the growth in IT spending, while spending on 2nd pPlatform technologies will remain effectively flat.

Meanwhile, although some emerging markets remain constrained by macroeconomic and geopolitical wild cards, there is now significant pent-up demand for IT investment that will drive stronger growth next year in markets including India, Brazil, and Russia.

Pent-up demand has already driven a significant rebound in both consumer and enterprise IT spending in China this year, as confidence stabilizes.

While mature economies are still driving the upside in 2014, emerging markets will once again dominate in 2015.

IDC said that Cold snap and wild cards impacted it spending, but underlying demand is strong

Some IT market segments performed weaker than expected in the first quarter of 2014 (1Q14), in line with the weather-related slowdown in U.S. output and the impact of wild card events including the conflict in Ukraine.

In particular, an overdue enterprise infrastructure refresh cycle was disrupted by short-term declines in business confidence.

However, strong underlying demand for this investment cycle will drive improvements in the server, storage, and network infrastructure markets in the coming months.

“At the beginning of 2014, we asserted that businesses would choose to fix the roof while the sun was shining,” said Stephen Minton, vice president in IDC’s Global Technology & Industry Research Organization (GTIRO).

Minton added that, “Unfortunately, the weather was literally much colder than expected during the first quarter. The good news is that the U.S. economic outlook has already brightened and this will drive a period of moderate but long-awaited investment in mission-critical infrastructure over the next year.

However, accelerating adoption of cloud services will continue to impact sales of traditional on-premise equipment, packaged software, and IT services. This capital spending cycle will be mild by historical standards.”

Meanwhile, PC refresh stronger than expected in mature economies, tablet shipments weaker

The commercial PC refresh has proven stronger than originally forecast.

As a result, IDC now forecasts PC spending will increase by 3.5% in 2014 (the fastest pace since the post-financial crisis rebound of 2010).

Western Europe has also seen an improvement in PC shipments, although PC spending in Europe will still be down by 1% due to average price declines.

The PC cycle has already driven a market upturn in Japan, where economic growth and upcoming tax increases drove a surge in capital spending in 2013 (PC spending in Japan increased by 6% last year, but will decline by -4.5% this year).

“The end of support for Windows XP is obviously part of the story, but there has also been a transition of some spending from tablets to PCs as consumers and businesses have allocated disposable income and IT budget to replacing older notebooks and desktops rather than upgrading their relatively new tablets.

“The tablet market is also more sensitive to economic wild cards and price competition, now that penetration rates have increased. There’s still plenty of growth ahead for tablets, however, and it would be premature to say that improvements in the consumer PC market represent anything like a reversal of the long-term shift to tablets and hybrids over the long term,” said Minton.

The U.S. tablet market is now forecast to increase by just 2% this year, but will rebound to 7% growth in 2015 as the PC cycle begins to wane.

Worldwide tablet spending has slowed from 29% year-over-year growth last year to 8% in 2014, but will accelerate back to double-digit growth next year (10%).

Penetration rates in emerging markets such as China will continue to increase, while some enterprise spending will shift back to tablets.

Pent-up demand and mobile driving growth in china, with other emerging markets to follow

The economic slowdown in 2013 had a negative impact on IT spending in China, but this also created a significant swell of pent-up demand that is now driving improvements in technology investment. IT spending growth in China decelerated to 8% last year but is on course for 13% growth in constant currency in 2014.

According to Minton, “Smartphones are a large factor in China’s growth as Chinese manufacturers have successfully expanded the customer base with new, price-competitive products that have driven overall volume. But while smartphones are a big part of the story, there has also been a significant upturn in business spending on infrastructure and software.”

Excluding mobile phones, IT spending in China will increase by 5% this year (up from growth of just 2%, excluding phones, in 2013).

Server spending in China will increase by 7% (compared to 0% in 2013), storage spending by 8% (up from 1.5% in 2013), and software by 9% (up from 7% last year), but overall market growth is still weighed down by the declining PC market.

Other emerging markets are likely to improve over the next 12 months as business confidence stabilizes.

IT spending in India will increase by 15% next year, up from 8% in 2014. In Brazil, the market will accelerate from 10% growth this year to 13% next year. In Russia, where the crisis in Ukraine has damaged business and investor confidence since the beginning of the year, the market is set to decline slightly in 2014 before rebounding to 7% growth in 2015.

Mature economies have remained more stable since last year, with market growth often outpacing expectations.

The U.S. IT market will increase by 4% this year, and Western Europe will maintain a 2% growth rate overall. Total worldwide IT spending will reach almost $2.1 trillion in 2014.

Including telecommunications services, the worldwide ICT market will increase by 4% to $3.7 trillion, with telecom services growth of 4% driven by mobile data services and increasing broadband penetration.

IDC’s Worldwide Black Book provides forecasts for IT spending in 54 countries around the world.

IT spending forecasts focus on 25 individual market segments across hardware, software, IT services, and telecom services for individual countries in all regions including North America, Latin America, Western Europe, Eastern Europe, Asia/Pacific, the Middle East, and Africa.

The Worldwide Black Book Query Tool presents all data in the following exchange rate views: U.S. dollars in constant currency, annual and year-to-date exchange rates, and local currency.

Additional products in this category include the Worldwide Enterprise Black Book, which analyses annual IT spending in relation to four company size segments based on employee counts.

The Worldwide Black Book, Premium Edition, includes cloud spending forecasts, quarterly IT spending forecasts by region, IT vendor market share analysis, macroeconomic indicators, IT/Internet penetration, and CIO survey data.

The United States Black Book: State IT Spending by Vertical Market is a quarterly analysis of the status and projected growth of the IT industry in 50 states and across 15 vertical markets.


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Phase3 Moves on Multilayer Network Technology Upgrade

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Phase3 Telecom, leading independent fiber optic network infrastructure and telecommunications services provider  has said that it is amplifying the scope of network technology upgrades to enhance its communications, cloud and connectivity solutions across business and enterprise segments in Nigeria and the West African sub-region.

Phase3 Moves on Multilayer Network Technology Upgrade

This followed its ongoing Security Operation Centre (SOC) network capability upgrade.

This development, is targeted at expanding the scope of its enterprise solutions drive for its increasing user portfolio of small/large scale enterprises, institutions, corporates, services sector and multinational companies, contributing to the nation’s thriving broadband penetration drive.

According to Stanley Jegede, chairman, “the principal goal of Phase3 ongoing multilayer technology upgrade is to optimize “network infrastructure capabilities, scalability, interconnect operational capacity, resilience, service optimization and coverage that will enhance communications, cloud and connectivity projects across multiple locations to support more start-ups, growing businesses and institutions to boost economic growth and increase their successes.

He also added that this Phase3 technology upgrade is quite expansive in model, to accommodate the new digital realities and possibilities created by COVID-19.

Especially in the areas of amplified work-from-anywhere and dedicated remote connectivity solutions as well as service delivery that is targeted at increasing networks data handling capacity vis a vis making them faster and smarter as the current global clime demands.

In conclusion, he stated that beyond enhanced network backbone and bandwidth capabilities for point-to-multi point access, chief components such as network security and speed are the driving force of Phase3 new technology upgrade for secured and latency-free connections as well as growing network expansion plan.


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Unitellas Partners Zadara On Data Infrastructure Project

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Unitellas International Limited and its partner Zadara, have taken the bold initiative to save Nigeria from exposure to rising Cybercrime by making significant investment in data infrastructure in the country.

Unveiling the initiative in Lagos, Smith Osemeke, Managing Director and Chief Executive Officer of Unitellas International Limited, revealed that Nigeria is hugely susceptible to cyber attacks due to failure to develop in-country data saving infrastructure.

Osemeke, observed that the COVID-19 pandemic has forced governments around the world to deliver vital Public Services in unprecedented ways and to experiment with Digital Technologies on an unforeseen scale.

According to him, In Nigeria, a lot of organizations had to turn to Local Service Providers and other Public Sector Organizations for help during the crisis, most of which are overburdened and challenged by outdated IT Systems.

As a result, a lot of organizations were forced to move their data to the Public Cloud through the services of AWS, Azure and Google Cloud.

This he continued had led many organizations in Nigeria to default on the guidelines on Local Content law i.e. all organizations operating within Nigeria should have their data stored within Nigeria.

Osemeke, alerted that Storing Data in the Public Cloud outside Nigeria creates the problem of Data Protection since data stored in the public cloud is exposed to Cyber and Ransomware attacks because the existing public cloud service providers do not provide Absolute Data Protection.

He noted that Sensitive Citizens data such as BVN, National Identity Numbers and other private and confidential details needs to be protected from such attacks and exposures.

“It becomes a challenge to uphold “Data sovereignty”- the concept of storing data within the Nation’s Borders. Since Local Service Providers are unable to effectively Store Data not to mention Protect Stored Data due to the fact that present Legacy Storage Infrastructures do not have the capabilities to offer the latest Data Protection Mechanism (DATA STORAGE IMMUTABILITY).”

He said that Local Service Providers in Nigeria cannot compete with international cloud service providers such as AWS, Azure and Google Cloud in terms of Infrastructure, Pricing, Service Delivery and Management and as a result this has caused a lot of companies in Nigeria to patronize International Public Cloud Service Providers by Storing Data from Nigeria in other Countries thereby making it practically impossible to comply with the Local Content Law..

“As a result, Financial Service Institutions (FSI) and other Key Organizations invest Millions of Dollars annually in acquiring and managing IT Infrastructures instead of focusing on their Core Businesses because they must have an IT department to build and manage their Data Storage Infrastructure – a service that is supposed to be handled by Local Service Providers in Nigeria.

“If this sad narrative is not corrected, sensitive Data from Nigeria will continue to be hosted outside Nigeria and inevitably leading to Data Insecurity. Unfortunately, Nigeria is one of the countries lacking Data Security due to the inability of Service Providers to effectively Store and Protect Data Locally.” he said.

To reverse this ugly situation, Unitellas International Limited in Partnership with ZADARA is empowering all Service Providers in Nigeria to meet up with International Standards with regards to Data Storage Infrastructure, Service, Pricing and Security.

Unitellas is the official distributor of Zadara Solution in Nigeria, while Zadara is a renowned World Leader in Infrastructure -as-a-service and Enterprise Data Storage-as-a-service.

Osemeke said that Unitellas in partnership with Zadara is willing to empower local service providers in Nigeria to meet up with International Managed Service Providers (MSP) standards by providing Local service providers with Infrastructure-as-a-service and Enterprise-Storage-as-a-service model which eliminates huge Capital Expenditure (CapEX) with minimum Operational Expenditure (OpEX).

By subscribing to Zadara Data Storage services with Compute Capability, Local Service Providers and MSPs can now offer Data Storage and Compute services with the latest Data Protection Mechanism competing effectively with renowned Public Cloud Providers in Infrastructure, Security, Pricing, Management and Service.


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ICTEL EXPO 2020: Stakeholders Urge Nigerians to Seize Opportunities Provided by Digital Economy

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Nigerians have been urged to seize the opportunities provided by the digital economy especially now, that the nation is seeking ways to overcome the restrictions imposed by the COVID-19 pandemic and are deploying technology needed for economic recovery and sustainability.

The Information and Communications Technology ICT, Stakeholders disclosed this at the virtual Information Communication Technology and Telecommunications Conference and Exhibition, ICTEL EXPO 2020 with theme: ‘Exploring Opportunity in the Digital Economy’, organized by Lagos Chambers of Commerce and Industry.

Mrs. Toki Mabogunje, president, Lagos Chamber of Commerce & Industry LCCI, speaking at the conference, said: “there is no better time to explore the opportunities provided by the digital economy than now when every nation is seeking ways to overcome the restrictions imposed by the COVID-19 pandemic. And as nations face dwindling growth, deployment of technology is key to economic recovery and sustainability.”

She explained that the new normal brought about by the Covid-19 pandemic has ensured that virtually all sectors have now leveraged ICT for optimal performance.

According to her, “This is evident in the financial services sector, where almost all banking transactions are conducted through digital channels, the agriculture sector, where sophisticated technologies, such as robots, temperature and moisture sensors, aerial images and global positioning systems, the GPS technologies, are largely employed.

“Nigeria has witnessed a phenomenal growth in its ICT sector over the past decade.

“The ICT sector remains one of the most resilient sectors of the Nigerian economy, even in the face of the COVID-19 pandemic.

“As a foremost private sector body in Nigeria today, established since 1888, the Lagos Chamber is providing, through this expo, an incredible platform, to advance the opportunities and linkages in the world of ICT”, she concluded.

Dr. Isa Ali Ibrahim Pantami, minister of Communications and Digital Economy, while declaring the conference and exhibition open, said that globally, digital revolution is changing lives and societies, with unprecedented speed and scale, delivering immense opportunities, as well as associated challenges.

“As predicted by the World Economic Forum, over 60% of global Gross Domestic Product, (GDP), will be digitized, by 2022 and that, over the next decade, digital platforms, will be used to create, close to 70% of new value”, Pantami noted.

The Minister, who was represented by the Executive Secretary, Universal Service Provision Fund (USPF), Mr. Ayuba Shuaibu, stressed that: “globally, businesses are shifting from brick and mortar form, to innovative enterprises driven by digital technologies and now is the time for business, enterprises and organisations, to reinvent and automate, to fit into the global digital economy.

“I want to congratulate the Director General and members of the Lagos Chambers of Commerce and Industry for organising this Information Communication Technology and Telecommunications Conference and Exhibition, ICTEL EXPO 2020, to spotlight this national discourse, on how we can take advantage of digital technology for accelerating our economy”, he concluded.

Delivering her keynote address, Ms Funke Opeke, CEO/Managing Director, MainOne and Chairmperson, Presidential Committee on National Broadband Plan, identified three activities that will enable digital economy to work well in our clime. These include connectivity, a device and a platform that enables one to connect with parties at the other end.

“When we look at private sector participation in Nigeria and the challenges we face as an economy, especially with the recession, with the dip growth rate and high inflation economy that we have and I think the recognition, globally, that growth across the world can only be fuelled by digital adoption in the years to come. I think it is important that our government provide more support to the ICT industry”, she concluded.

Some panel discussions also took place on the first day of the event, while some companies exhibited their products and solutions to the general populace, via the online virtual platform.


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