Grim Reaper Ready To Pounce In 2011 - InformationWeek
IoT
IoT
Business/E-Business
Commentary
12/6/2010
07:28 AM
50%
50%

Grim Reaper Ready To Pounce In 2011

The new year is not going to be kind to many high tech suppliers. Slow growth and intense competition will force many vendors to either be acquired or close up shop, according to market research firm In-Stat.

The new year is not going to be kind to many high tech suppliers. Slow growth and intense competition will force many vendors to either be acquired or close up shop, according to market research firm In-Stat.Jim McGregor, In-Stat's Chief Technology Strategist, expects only modest growth in IT spending for a couple of reasons. First, few, new, high growth markets are emerging. Also in 2010, companies increased spending to make up for severe cuts made the previous year. This double whammy will force many struggling suppliers to exit the marketplace.

Smartphones is one area where the number of suppliers may shrink. Only a few mobile OSs will gain sufficient market share to remain viable going forward, which may be bad news for Samsung's bada, Microsoft's Phone 7, and Palm's WebOS. McGregor also thinks that the window of opportunity is closing on WiMAX technology, which does not bode well for Clearwire. In addition as carriers move to LTE networks, the number of equipment vendors will shrink, a trend already taking shape with Intel gobbling up Infineon's wireless group and Broadcom acquiring Beceem.

The changes will create a couple of ripple effects for small and medium businesses. As the market consolidates, management of their network devices may become easier as different systems are combined. On the downside, some product lines may killed off as suppliers find themselves with overlapping systems. Consequently, corporations could wind up with devices that may not to be able to grow and support their future needs.

Comment  | 
Print  | 
More Insights
Comments
Newest First  |  Oldest First  |  Threaded View
How Enterprises Are Attacking the IT Security Enterprise
How Enterprises Are Attacking the IT Security Enterprise
To learn more about what organizations are doing to tackle attacks and threats we surveyed a group of 300 IT and infosec professionals to find out what their biggest IT security challenges are and what they're doing to defend against today's threats. Download the report to see what they're saying.
Register for InformationWeek Newsletters
White Papers
Current Issue
Digital Transformation Myths & Truths
Transformation is on every IT organization's to-do list, but effectively transforming IT means a major shift in technology as well as business models and culture. In this IT Trend Report, we examine some of the misconceptions of digital transformation and look at steps you can take to succeed technically and culturally.
Video
Slideshows
Twitter Feed
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Flash Poll