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Tag: market-data

  • VoIP Investment Remains Strong, IP Line Penetration Rose to 40% in Q3

    According to the recent Canalys report on IP telephony, investment in enterprise telephony remained restricted in EMEA in Q3 2009, with call control line shipments down 17.5% compared with the same period in 2008.

    The research shows volume declined 21.5% in Q1, while Q2 was down 18.6%. In total, 4.8 million lines were shipped in the quarter, a 4.4% sequential increase. IP line penetration increased to 40%, up from 35% one year earlier, as businesses continued to replace aging TDM infrastructure and expand trial projects.

    Canalys claims aggressive cash-back, fixed price, minimum spend and competitor trade-in promotions, as well as 0% financing offers have helped prevent greater reductions in shipments during 2009.

    Alcatel-Lucent, Siemens and Aastra continue to lead in EMEA, with Cisco gaining ground.

    ‘Alcatel-Lucent has been a stable performer in the region over the last eight quarters, overtaking Siemens as the market leader in 2008,’ said Alex Smith, a Research Analyst at Canalys.

    ‘During the recession, it has managed to maintain its market share, though its Q3 shipments were hit by the holiday season in its core markets, particularly France, Spain and Italy,’ Smith added.

    Siemens remained the second largest vendor with a market share of 13.5%, though this has steadily eroded over the last two years. Overall, Siemens is continuing to invest in growing its indirect business, but shifting direct accounts to the channel will take time, according to Canalys.

    In September, it announced plans to accelerate this process by selling its direct sales organisations in 27 non-core countries to Netlink, a deal worth €204 million ($308 million), more than the original €175 million ($275 million) the Gores Group paid Siemens AG for its 51% stake in the overall business.

    Aastra was the third largest vendor in the region, with a market share of 13.0%. During the quarter, Aastra benefited from competitor cash-back trade-in promotions in France, while investment in direct-touch activities helped it improve its German business, finds the report.

    Cisco continued to grow its market share during the recession, primarily driven by gains in Western Europe, particularly in Germany where it has invested heavily in marketing and sales resources. It accounted for 11.6% of total shipments, compared with 11.2% in Q2 and 10.3% in Q3 2008.

    Avaya, which grew its shipments by 4.2% over Q2 with strong sales in the UK, catalysed by the release of IP Office R5, won the auction for the Nortel Enterprise business. Canalys says new entity has the potential to emerge as the leading vendor in EMEA.

    ‘Shipments for the final quarter of 2009, typically the largest in EMEA, are expected to grow sequentially but will still be down annually as many businesses set budgets earlier in the year when economic conditions were worse. Year-on-year growth is expected to resume in 2010, though volumes will still be lower than in 2008 as economic recovery is expected to be slow after the worst recession for decades,’ said Matthew Ball, a Senior Analyst at Canalys.

  • IDC: EMC Led The Overall Storage Software Market in Q3

    According to IDC’s Worldwide Quarterly Storage Software Tracker, the worldwide storage software market experienced another decline in year-over-year growth in the third quarter of 2009 with revenues of $2.87 billion, representing –7.9% growth over the same quarter one year ago, but a 1.2% growth from the previous quarter.

    IDC report shows EMC led the overall market with 23.4% revenue share in the third quarter of 2009. Symantec held onto the second position with 17.8% revenue share, while IBM finished in the third position with 12.2% revenue share.

    NetApp finished in the fourth position with 7.6% revenue share while CA rounded out the top 5 with 3.9 revenue share.

    For the second quarter in a row, only two of the top 5 vendors displayed a positive growth over the previous quarter. EMC and IBM displayed positive growth rates of 5.7%, and 6.9% respectively, while Symantec, NetApp, and CA each had negative growth rates from the previous quarter of –2.1%, –8.9%, and –3% respectively.

    “Two out of the top three vendors in the data protection and recovery market grew sequentially (IBM and EMC) while the leader Symantec declined at 1.2%,” said Michael Margossian, research analyst, Storage Software at IDC.

    Symantec is still the market leader with 31.1% market share, and IBM and EMC having 14.1% and 12.8% market share respectively.

    EMC regain the top spot in the replication market, with 10.7% growth over 2Q09, while NetApp declined 10.1%.

    “The storage software market was barely able to maintain a positive sequential growth rate in the third quarter of 2009,” concluded Margossian.

  • LED Breathes New Life into Monitor Market

    Capitalizing on the slim form factor and energy savings potential, the use of LEDs in LCD monitor panels is growing rapidly, according to DisplaySearch.

    “Although the desktop monitor market is mature, panel makers and brands are working together to develop new features such as slimness and lower power consumption to rejuvenate the sector,” say the analysts.

    Panel makers are using LED backlights in mainstream monitor sizes such as 18.5”, 19”, 22”, and 23”/24”. Although LED backlight penetration in monitor panels was only 1.4% in Q3’09, current panel maker plans indicate that the penetration could reach 22% in Q3’10, assuming adoption by brands.

    According to DisplaySearch’s latest Quarterly LED Backlight Panel Shipment & Forecast Report, InnoLux was the leading supplier of LED backlit monitor panels in Q3’09, with 34.4% of unit shipments.

    Other panel makers producing such panels include LG Display, AUO, Samsung and CMO. Brands like Samsung, Dell, LG, Acer, Lenovo, BenQ and AOC began launching LED backlit LCD monitors ranging from 18.5” to 24” in Q3’09.

    DisplaySearch says in Q1’10, 20”, 23.6” and 27” panels will enter the market. In addition, there are small LCD TV sizes such as 26” that are adapting monitor panels, the LED backlight is also brining the attractions to this segment.

    TV brands like Vizio are promoting 18.5” and 23” LCD TV using LED backlit monitor panels, and more brands are expected to join in 2010.

    “LEDs have significant advantages over traditional backlights, such as power consumption, slim form factor, and product differentiation,” noted Brian Chen, DisplaySearch Research Director for TFT LCD & Materials and the author of the report.

    He claims while there are still some technical concerns such as brightness performance, the LED backlight premium in the LCD monitor is much smaller than LCD TV.

    “Meanwhile, the awareness of green technology and energy savings factors in LEDs has generated consumer demand. We are seeing panel makers and also monitor brands promoting LED backlights—resulting in panel makers’ aggressive target for 22% penetration in Q3’10,” he said.

  • Almost Two Million Mobile WiMAX Subscribers Expected by End of 2009

    Larger-scale mobile WiMAX network deployments are finally becoming a reality, according to recent ABI Research report.

    The research shows Clearwire in the United States has already declared 173,000 subscribers, Yota in Russia has been growing at a decent rate reaching 100,000 subscribers in August and 200,000 in October, and PacketOne in Malaysia has reached 130,000 subscribers.

    “UQ Communications once expected to reach 300,000 subscribers by the end of 2009, but is behind schedule in its rollout and will fall short of that initial target. South Korea has seen KT’s and SKT’s subscriber numbers remain fairly stagnant, while these service providers prepare for another big push as a third WiMAX service provider comes to South Korea,” says the report.

    ABI Research predicts this handful of WiMAX service providers alone will account for a significant minority of the nearly two million mobile WiMAX subscribers expected by the end of 2009.

    "Mobile WiMAX service providers around the world find themselves in very different situations," comments ABI Research practice director Philip Solis.

    "Some are mainly focused on fixed services for homes and businesses, while others are jumping feet first into mobile WiMAX, offering a variety of external modems, laptops, netbooks and even handsets tied into HD multimedia services, as with Yota in Russia. Some have little fixed or mobile broadband competition, while others are competing directly against fixed and mobile broadband services.

    "Some, such as Japan’s UQ Communications, are behind their buildout schedules and subscriber expectations, while others such are Clearwire are increasing the pace of their deployments because of more-than-adequate funding. Still others such as Yota in Russia are exceeding all expectations. Some are remaining local, while others, such as Clearwire and Yota, are building networks in more than one country.”

    The research group also says that just as the mobile WiMAX market is starting to bloom, LTE networks from early movers such as Verizon Wireless and NTT DoCoMo are targeting the same potential customers.

    According to the analysts, LTE ecosystem will eventually be vastly larger than the mobile WiMAX ecosystem. “But just as LTE deployments start picking up in 2011 and 2012, some 802.16e service providers will begin upgrading their networks to 802.16m,” they say.

  • Comcast and GE Form Venture and Take Control of NBC

    Comcast and General Electric announced that they have signed a definitive agreement to form a joint venture that will be 51 percent owned by Comcast, 49 percent owned by GE and managed by Comcast.

    The joint venture will consist of the NBC Universal businesses and Comcast’s cable networks, regional sports networks and certain digital properties and certain unconsolidated investments.

    A portfolio of cable networks and regional sports networks will account for about 80 percent of the new venture cash flow, including USA, Bravo, Syfy, E!, Versus, CNBC and MSNBC. The campanies assure the joint venture will be financially strong “with a robust cash-flow-generation capability.”

    GE will contribute to the joint venture NBCU’s businesses valued at $30 billion, including its cable networks, filmed entertainment, televised entertainment, theme parks, and unconsolidated investments, subject to $9.1 billion in debt to third party lenders.

    Comcast will contribute its cable networks including E!, Versus and the Golf Channel, its ten regional sports networks, and certain digital media properties, collectively valued at $7.25 billion, and make a payment to GE of approximately $6.5 billion of cash subject to certain adjustments based on various events between signing and closing.

    According to Jeff Immelt, GE Chairman and CEO, the combination of Comcast’s cable and regional sports networks and digital media properties and NBCU will deliver strong returns for GE shareholders and business partners.

    “NBCU has been a great business for GE over the past two decades. We have generated an average annual return of 11 percent, while expanding into cable, movies, parks and international media. We are reducing our ownership stake from 80 percent to 49 percent of a more valuable entity. By doing so, GE gets a good value for NBCU. This transaction will generate approximately $8 billion of cash at closing with an expected small after-tax gain,” he said.

    Comcast also announced the creation of Comcast Entertainment Group (CEG), which will house Comcast’s interest in the joint venture and will stand alongside Comcast Cable, which operates the company’s traditional cable business.

    Headquarters for the business will remain in New York. The joint venture board will have three directors nominated by Comcast and two nominated by GE.

    Jeff Zucker, current president and CEO of NBCU, will be CEO of the new joint venture and will report to Steve Burke, Comcast Chief Operating Officer. Zucker said, “I’m genuinely excited that I will be leading this wonderful organization, along with the Comcast team, at this important time in our history."

  • U.S. Smartphone Market – Only the Strong Will Survive

    According to the recent Canalys Smartphone Analysis, the smart phone market continues to increase as a proportion of the overall mobile phone market in the US.

    Despite a drop in market growth to 6% in Q3 2009, down from 37% in Q2 2009, smart phones represented 26% of all mobile phones shipped in Q3 2009. This is up from 24% in Q2 2009 and will continue to rise in coming quarters.

    The top two smart phone vendors increased their combined market share in Q3 to 76.3%. Research in Motion (RIM) held 48.1% while Apple held 28.2%.

    “Despite what looks like a ‘closed shop’, with continued growth expected in the US smart phone market there is still plenty to play for, and new products are coming thick and fast from the competition,” the report says.

    Four other smartphone platforms in the US market today – Android, Symbian S60, webOS and Windows Mobile – represented only 23.7% of the market in Q3.

    Canalys claims the challenge for the handset vendors on the multivendor platforms is to “differentiate their products, especially as the market gets busier, while also providing competition to Apple and RIM and choice to the consumer.”

    Canalys also thinks that with an increasing number of Android and Windows Mobile devices launching, there can be little, by looking at the specifications, to choose between one and another on the same platform. “A key product differentiator will be seen in the software and the user interface. In short it is all about the user experience, particularly how the user organises their favourite applications, content, messages, people and places,” analysts say.

    Canalys says Verizon needs to fight back against the iPhone’s tremendous success and will be hoping the new Android devices (Motorola’s Droid and HTC’s Droid Eris) will “light up its somewhat uninspiring consumer device portfolio.” Demand for Android devices will be helped by the addition of Google Maps Navigation on Android 2.0.

    Analysts reminds us of the fact that AT&T is the only one of the big four US mobile operators not yet to range an Android device.

    RIM’s US device shipments were up 27.5% in Q3. Around 3.8 million net new subscriber accounts were added worldwide in its fiscal quarter and profits beat analyst expectations. According to Canalys estimates, RIM, with only the Storm, held a 2.2% share of US touch-screen smart phones in Q3 2009. As its entry-level and mid-range (mostly keyboard-based) devices increasingly come up against new touchscreen Android devices, buyers’ appetite for BlackBerry devices will be tested.

    The iPhone remains the leading consumer smart phone in the US. The response to the iPhone 3G S was ‘tremendous’ and ‘very surprising’ according to Apple, so much so that many international markets had limited supply for several weeks.

    Canalys says with each software release the iPhone gets more ‘CIO friendly’. According to Apple, the iPhone is being ‘deployed or piloted’ at more than 50% of Fortune 100 companies and is doing well in higher education institutions and government agencies, though increased device security will still be needed for broad deployment to be considered in government.

    The report shows that US smart phone share of HTC, the leading worldwide manufacturer of Android smart phones, supplying T-Mobile and Vodafone (in EMEA) as well as selling under the HTC brand, has hovered around the 5-7% mark for five quarters.

    “HTC devices are ranged by the big four US mobile operators. These relationships and the installed base of customers it has are crucial to HTC, and Microsoft. From being the first, HTC is now one of many Android device vendors,” says Canalys.

    According to the research group, Motorola “rose from the ashes” of the smart phone market recently with the announcement of the new Android-based smart phones, the CLIQ with T-Mobile and the Droid with Verizon.

    “If the CLIQ and the Droid do anything like as well as the RAZR did it will give Motorola a solid base for 2010. Working on Android means that building its own app store need not be a top priority for Motorola.,” according to Canalys.

    They also think Nokia really needs a big hit in the US (“It has failed to get its most popular Nseries devices ranged by the leading US mobile operators and it has thus far failed to make a significant impression with its Ovi services in the US”), Palm needs the old volumes back (“Mobile operators must be convinced that they can profit from ranging Palm webOS devices. Palm needs their commitment”), and Samsung has lagged in smart phones, although it still leads the overall US mobile phone market and continues to roll out new handsets with all leading mobile operators at a “blistering pace.”

    Canalys notices that there are more vendors planning to launch smart phones in the US in the next few months: Dell, Kyocera Wireless, LG (Android handsets) and Acer (Android and Windows phones).

    “They will all be faced with the same challenges: getting their smart phones ranged by the mobile operators and capturing the imagination of consumers. The mobile operators can only range, subsidise and promote a certain number of devices. As Apple did, new entrants need to come up with something special, and that is no easy feat,” the report concludes.

  • iSuppli: California Regulations Could Cut LCD-TV Energy Use Worldwide in Half

    New television power consumption limits imposed by California’s Energy Commission (CEC) could cut aggregate annual power consumption of LCD-TVs worldwide in half by the year 2013, if these standards are adopted universally, according to iSuppli.

    If all of the 200 million LCD TVs set to be shipped in 2013 complied with the CEC standard, they would use a total of 64.4 billion kilowatt hours for the year, compared to 126.8 billion if they didn’t, iSuppli estimates.

    Analysts say this represents a 50 percent decline in power consumption. With indications that other states may follow California’s lead, and with the United States the world’s largest LCD-TVs market, it’s conceivable that CEC-style regulations could spread throughout the country and the world.

    The U.S. Consumer Electronics Association is warning that the CEC mandates will have a deleterious impact on consumer choice and technological innovation. The trade organization stated the regulations will result in higher prices for consumers, job losses for Californians, and lost tax revenue for the state.

    iSuppli believes the regulations could reduce California tax revenue as consumers purchase larger-sized LCD-TVs through out-of-state channels. Furthermore, the regulations could cause a cessation in sales of certain products in the state, such larger-sized plasma televisions.

    However, with both the industry and consumers already embracing greener televisions that consume less power, the negative impacts of the CEC regulations are likely to be limited.

    “While the CEA has legitimate concerns, the CEC regulations simply follow suit with the EPA’s Energy Star 3.0 and 4.0 guidelines,” said Randy Lawson, senior analyst, display electronics, for iSuppli.

    “Television makers already have been working to cut the power consumption of their products so they can earn the coveted Energy Star label.”

    Furthermore, iSuppli’s research indicates that consumers increasingly are aware of power consumption issues, and are likely to gravitate toward sets that use less electricity.

    “Because of this, television brands will still be offering a plethora of product choices that will be attractive to consumers,” said Lawson.

    An iSuppli survey revealed that 46.1 percent of U.S. consumers in the third quarter said green factors influenced their television purchasing decisions. The same survey showed that 43.4 percent of those consumers considered power savings to be the most important green feature.

    According to iSuppli, the ever-more-restrictive television power consumption standards in California and elsewhere definitely will impact the path of technology development for flat-panel TVs, affecting panel materials, LCD backlight designs and system audio/video electronics.

    Lawson said, “Many design changes will occur in the television electronics and OEM-enabled features, including technologies like ambient light sensing to help enable intelligent backlight drive options.”

  • Will Chrome OS Lead Consumers into Cloud Computing?

    "Chrome OS is ideal for ‘smartbooks’ and will lead consumers further into cloud computing," says Canalys in its recent Notebook Pulse Report.

    Google unveiled its Chrome operating system, making the source code available to developers and enabling them to assist in the project a year before Chrome OS is due for public release.

    “Speculation about Chrome OS and its impact on the PC industry has been rife since Google first announced it was working on the project in July. The announcement goes some way to address some of the questions that have since surrounded the OS,” says Canalys.

    Google has provided information on its initial use cases for devices running Chrome OS in documentation released on the platform. Canalys thinks it suggests that Chrome will suit secondary devices for ‘couch computing’, devices that are shared among family members, and those used in coffee shops.

    “To all intents and purposes, Chrome OS is an expansion of Google’s Chrome browser. All applications running on Chrome OS will be web applications that run from within a browser window.”

    But there are additional features that extend the functionality beyond that of a standard web browser. The addition of persistent windows, called ‘panels’, enables developers to create simple applications that can float on top of the browser window or be minimised when not needed.

    Two usage cases of panels that Google has so far demonstrated were an instant messaging client and a window for playing media. According to the analysts, another aspect of Chrome OS that Google is keen to promote is its security.

    “If the OS has been compromised, it is able to repair itself using its verified boot process. If the OS detects any changes to the system on start-up it will automatically initiate a recovery process that will replace the OS with the latest available version,” the report says.

    As Chrome users cannot install native applications, Chrome will not require additional security software. “Instead, Google will take responsibility for securing Chrome OS, possibly extending protection technologies from the Postini acquisition to protect Chrome users before threats reach the devices.”

    Chrome OS stores all of a user’s personal data in the cloud, so that if a chrome OS device is lost or stolen, personal data is not compromised and remains permanently backed up.

    Canalys says, as usual, concerns will remain regarding the storage of personal data with an advertising company. “A further concern is that Chrome’s lack of local data storage and limited offline functionality will make it largely unusable without an Internet connection.”

    Canalys therefore expects that devices running chrome OS will be bundled with mobile data contracts, and support for ARM-based processors will make it an ideal ‘smartbook’ OS.

    Analysts say the fact that the OS is not intended for offline use comes as no great surprise. “After all, unconnected users cannot access Google’s services or be reached by Google’s advertising.”

    “Though much could change between now and Chrome’s release in 2010, it is clear that, at present, the OS is not intended as a replacement for Windows or any other fully functional OS.”

    According to the report, one thing is clear: “However, Chrome OS will be the next step in bringing consumers further into the world of cloud computing, a world where Google provides many applications and most of which are free.”

  • Web & Mobility Summit: European Startups in the Time of Crisis

    The second Web & Mobility Summit, the event that aims to bring together Europe’s most innovative web & mobility start-ups, venture capitalists and industry professionals, took place last week in Montreux, Switzerland.

    The committee consisting of business angels, venture capitalists and industry specialists has named Europe’s most promising web & mobility start-ups – the CEOs and VPs of 25 companies selected from a pool of over 400(!) had an opportunity to present to an international delegation of more than 100 influential investors, technology industry leaders, service providers and academics.

    The selected companies come from some of the strongholds of the European scene, such as mobile social networks, mobile publishing, adserving and gaming, as well as ecommerce, e-business, payment and billing.

    Although it was hard to find any big innovation listening to the presentations of the selected start-ups (they presented rather proven and well-tested ideas), it was noticeable that all of the companies are doing well, moneywise, even during the crisis, and it seems that this was a primary criteria for the selection.

    “In the time of crisis, I’m looking forward to seeing well trained, well disciplined companies who have not gotten any funding for a while that are going to be more fine tuned and well developed, ” Robert Lang, President of the Summit, said Biz-News.com in the earlier interview, and it seems to be the confirmation of our observations.

    Biz-News.com liked the idea of Madvertise – an internet-based mobile advertising network and online market place. The easy-to-use online auction system allows advertisers and agencies to quickly set-up cost effective mobile ad campaigns with a broad reach.

    Aloqa, other interesting, Munich-based start-up, has developed an application that proactively notifies mobile users of social opportunities, such as Facebook friends close by, and recommends interesting places, services and events in their vicinity.

    Path Intelligence’s FootPath product is “Google Analytics for the real world”, as this Portsmouth-based company calls it. FootPath detects anonymous data is broadcast by shopper’s phones and uses that data to provide aggregated and automated market research to mall owners.

    Another interesting start-up, Apprupt aims to become an internationally wide reaching cross platform mobile application affiliate network and to brong relevance and addicional monetization opportunities to a non-transparent market environment.

    Whereas Stockholm-based Videoplaza aims at becoming the number one platform globally for monetizing IP delivered video. The company develops and commercializes advanced web video advertising platform providing media owners a way to monetize IP delivered videos.

    “Many of today’s big businesses come from the insane ideas that ware born in the heads of young entrepreneurs. And the most insane, but at the same time brave and successful ideas are born in the time of crisis,” said Martin Varsavsky, CEO of FON, trying to mobilize but also appreciate the start-ups during the gala dinner that took place in the Olympic Museum in Geneva.

    “It’s important to note that the combo of doing great business and dealings mixed with the fine dining and mingling at a great venue is a surre fire way to keep the interest,” Lang noticed.

    Sven Lingjaerde, Founder and President of European Tech Tour, said, “Getting access to venture financing in the current market situation is still tough for young companies, but the number of investment are increasing again.”

    He thinks that great companies have often been built in times like these, when resources are scarce.

    “Currently, there are many healthy, active companies out in the market with experienced management that could propel their development to the next level, with the appropriate amount of support from sophisticated investors. Since valuations are improving and cash itself is still a scarce resource, the second half of 2009 is going to be very interesting and will lay the foundation for the further development of a whole industry sector,” Lingjaerde added.

  • iSuppli: Cloud Computing Can Effectively Leverage Blade Servers and Virtualization

    Although global shipments of blade servers are set to decline in 2009, the market is expected to return to robust double-digit growth during the following years as global economic conditions improve, according to iSuppli.

    Blade server shipments will amount to 1.04 million units in 2009, down 9 percent from 1.14 million in 2008. This contrasts sharply with the 31.1 percent increase in 2008.

    “In its short history, the blade server market has been able to slash through whatever obstacles the global economy and technology business have placed in front of it. However, in 2009, the blade servers couldn’t cut through the global economic downturn, causing shipments to decline for the first time ever,” said Peter Lin, the iSuppli analyst.

    iSuppli has been continually reducing its shipment forecast throughout the year. According to them, the main factor impacting the market is conservative corporate Information Technology spending at the end of 2008 and in 2009 resulting from the recession.

    Analysts expect that the blade server market will regain its edge somewhat in 2010, when the worldwide economy improves. By 2013, the market will more than double from its 2008 level to more than 2 million units.

    During the period from 2008 to 2013, the blade server market will expand at a CAGR of 13.9 percent, 10 times higher than the server market as a whole. By 2013, blades will account for 23.1 percent of all server shipments, up from 12.9 percent in 2008.

    “This clearly indicates that the blade segment will be the fastest-growing and most important segment of the server industry through 2013,” Lin said.

    Although iSuppli has reduced the total server shipment forecast due to the worldwide economic recession, the company retains its belief that virtualization offers a number of benefits in the consolidation of server infrastructure.

    “Virtualization provides a more efficient server roll-out strategy, which will accelerate enterprise adoption. Therefore, iSuppli’s virtualization forecast is a mid-to-high penetration scenario, where we believe virtualization server penetration of total server shipments will rise at a CAGR of 18.8 percent during the period from 2008 to 2013,” iSuppli states.

    The research group also believes that cloud computing can effectively leverage blade servers and virtualization. “Seeing the potential for cloud computing, there is a race among the main players, which iSuppli believes will become increasingly fierce as the demand for cloud computing keeps growing,” they say.

    According to iSuppli, cloud computing will have a negative effect on server shipments. However, they say, there will be more applications released and users will demand better service levels. Therefore, the demand from the cloud computing service providers will keep increasing, which will offset the negative effect, as they claim.