Semiconductor sales fall could herald cloud computing rise

September 16, 2011 Off By David
Grazed from iHotNews.  Author: PR Announcement.

Worldwide semiconductor sales have slowed, which could mean that more companies are making the most of cloud computing to maximise the use of their existing resources.
 
Gartner has revealed that the market is on pace to shrink 0.1 per cent from last year and will stand at $299 billion (£189 billion) by the end of this year…

This contrasts with its original projection of this year’s performance, in which it estimated that the sector would experience growth of 5.1 per cent.
 
Bryan Lewis, research vice president at Gartner, identified three key drivers behind the trend and the industry’s short-term outlook.
 
He said that a combination of excess inventory, manufacturing overcapacity and slowing demand caused by prevailing economic weakness all have roles to play in the forecast downgrade.
 
The analyst also identified declines in PC production unit growth as another major factor behind the trend, with forecast performance in the sector being cut by two-thirds as a result of economic drivers.
 
Both mobile phone production growth and falling prices for DRAM are also having a significant effect on the market, depressing this year’s predicted growth.
 
Mr Lewis highlighted the fact that next year could see companies replacing and expanding their existing stock of PCs or could see this trend, and the potential rise of cloud computing, continue.
 
He said: "The odds of a double-dip US recession continue to rise and are raising fear that sales prospects will deteriorate further."
 
The analyst highlighted the fact that it will hinge on events taking place in 2012, describing the month as a "wild card" that will determine the fortunes of the industry.
 
Earlier this month, Gartner claimed that using a business-driven sourcing strategy can be an excellent way for companies to maximise the benefits they receive from using IT outsourcing.
 
It stated that using a formal process when dealing with procurement meant that departments could benefit from both the innovation and reduced costs that IT outsourcing can provide.