IT INDUSTRY IN US
Company
LOGO
Agenda
1. Industry Landscape
2. Evolution
3. Key Segments 4. Facts & Figures 5. Major Players in the Industry 6. Trends 7. Regulatory Environment 8. Industry Pain-Points
9. Futures & Forecasts
Overview of the IT Industry
Overview
Overview
Overview
The US IT industry comprises of the hardware, software and other applied services
The country records 40% of the global spending in the production of IT products and services
According to the records of the Commerce Department of the State, the IT industries contribute approximately 8% of the GDP of USA with a growth rate of 4.5%
Evolution of US IT Industry
Evolution
1950s
1960s
1970s
1980s
1990s
2000s
1950s,1960s, 1970s
1950s
Development of IBMs Electronic Statistical Machine The rise of A.I. and its connections to the information technology industry
1960s
In 1963, Douglas Engelbart invented the computer mouse Merit Network created in 1966, an ancestor of Internet
1970s
In 1971 the Intel 4004 was released, the worlds first general microprocessing machine The worlds first electronic message (e-mail) in 1971 Cray-1 supercomputer is developed and installed at Los Alamos National Laboratory in 1976
Introduction of Laterolog, Microlog-caliper, Emergence of transistorized computers
(ARPANET) is the closest precursor to the Internet. Its very first information relay occurred in 1969
IBM introduced and developed the concept of the word processor in the early 1960s.
The technology and concept of voicemail was developed in the early 1970s The first cell phone call happened in 1973
Development and completion of the C programming language
Oldest computer language, Fortran, was developed by IBM
Development of Magnetic Core Memory Systems
The first graphical user interface (GUI) was developed in the early part of the 1960s
World market saw the first pocket calculators, a product of Japan. Ataris Computer Space helped launch the personal gaming (video game) industry to life
1980s,1990s, 2000s
1980s
The success of the Nintendo Entertainment System video games planted the seeds for later IT development in this niche IBM PC was launched in the early 80s
1990s
The World Wide Web became much more public in the early 1990s The Java programming language was developed around 1992 The Pentium Processor was developed in the 90s, a hallmark of Intels marketing and computing efforts
Apple introduces the Macintosh in 1984
MS-DOS operating system was introduced by Microsoft. The Morris Worm, the first Internet virus, was released in 1988 A bus system was developed that allowed computers to interact with external devices like printers and scanners
Microsoft introduces Windows 95 and later Windows 98 to the marketE-commerce-only companies such as Amazon.com, eBay, AOL, and Yahoo! grow rapidly 2G (2nd generation) mobile phones are launched. First touchscreen smartphone is released in 1993
1980s,1990s, 2000s
2000s
A huge jump in broadband internet usage globally. Over 80% of US Internet users were connected via broadband and broadband internet Rise of portable digital audio players typified by Apple Inc.'s iPod, along with other MP3 players Windows XP and Microsoft Office 2003 become the ubiquitous industry standard in personal computer software, although their successors Windows Vista and, by the end of the decade, Windows 7, see increasing market penetration.
2010s
iPads and Tablets by Apple, RIM, HP, DELL
Cloud Computing: IaaS, SaaS, PaaS
Apache Hadoop: a software framework that supports data-intensive distributed applications under a free license. Latest Release: 1.0.0 / December 27, 2011; 2 months ago
Peer-to-peer technology use: internet telephony (Skype), file-sharing Social networking websites like Myspace and Facebook and microblogging platforms like Twitter gain in popularity RFID (Radio Frequency ID) becomes widely used in retail giants such as Wal-Mart ATMs become nearly universal in much of the developed and developing countries
Android: a Linux-based operating system for mobile devices such as smartphones and tablet computers. Latest release: 4.0.3 (Ice Cream Sandwich) on 31/01/2012 Virtualization: is the creation of a virtual (rather than actual) version of something, such as a hardware platform, operating system, a storage device or network resources
Product Offerings by Apple
MacBook Air Mac Pro ipodTouch
MacBook Air
ipod shuffle
ipod Classic
ipod Nano iMac ipad 2 Mac Mini iPhone
Product Offerings by Apple
itunes
iCloud
iLife
Mac App Store
iOS
Mac OS
iWork
Apple TV
Product Offerings by Dell
Inspiron R
XPS
Inspiron
Alienware
Inspiron desktop
All-in-one desktop
Product Offerings by Dell
XPS desktop Gaming
Alienware Game Console & Video Games
Digital Cameras
Product Offerings by Dell
Featured Solutions and Services Desktop Virtualization Data Center Virtualization Storage
Infrastructure Management
Application Services
OEM Solutions
Business Consulting
Product Offerings by Microsoft
Product Offerings by Microsoft
Product Offerings by Google
Search Category
Explore and Innovate Category
Product Offerings by Google
Communicate, Show and Share
Go Mobile Category
Facts and Figures
Google
Apple
RIM
Microsoft
Symbian
5% 17%
2%
48%
28%
Share (%) of Top Smartphones Platforms in Oct11
Facts and Figures
Google
Apple
RIM
Microsoft
Symbian
4% 15%
2%
49%
30%
Share (%) of Top Smartphones Platforms in Jan12
Facts and Figures
HP Dell Apple Others
29% 36%
13%
22%
Top Market Shares for PCs in Oct11
Facts and Figures
Facebook
Youtube
Twitter
Others
15% 2%
20% 63%
U.S. market share of visits to social networking sites
Facts and Figures
Oracle SAP Microsoft Dynamics Others
22%
45%
19% 14%
Top ERP vendors in 2011
Annual Revenue
Google 120,000 100,000 80,000 60,000 40,000 20,000 0 2011 2010 2009 Apple RIM Microsoft
FY for Google is from January 1,2011 to December 31,2011
FY for RIM is from March 1,2010 to February 28,2011
FY for Apple is from September 25,2010 to September 24,2011 FY for Microsoft is from July 1,2010 to June 30,2011
Top Players in the Industry
Company Logo About the company
Google has grown by leaps and bounds. From offering search in a single language they now offer dozens of products and services from around the world. You can also find images, videos, maps, patents and much more. With universal search technology, you may see all of these items combined in one result page for your query, and services such as personalized search help you find even more information tailored to your interests
With more than 380,000 customersincluding 100 of the Fortune 100and with deployments across a wide variety of industries in more than 145 countries around the globe, Oracle offers an optimized and fully integrated stack of business hardware and software systems that helps organizations overcome complexity and unleash innovation. Oracle engineers hardware and software to work together in the cloud and in your data center from servers and storage, to database and middleware, through applications Established on April 4, 1975 to develop and sell BASIC interpreters for the Altair 8800, Microsoft rose to dominate the home computer operating system market with MS-DOS in the mid-1980s, followed by the Microsoft Windows line of operating systems. Microsoft would also come to dominate the office suite market with Microsoft Office. The company has diversified in recent years into the video game industry with the Xbox and its successor, the Xbox 360 as well as into the consumer electronics and digital services market IBM manufactures and sells computer hardware and software, and it offers infrastructure, hosting and consulting services in areas ranging from mainframe computers to nanotechnology. As of December 2011, IBM was the third-largest publicly traded technology company in the world by market capitalization.
Top Players in the Industry
Symantec was founded in 1982 and has evolved to become one of the worlds largest software companies with more than 18,500 employees in more than 50 countries. It provides security, storage and systems management solutions to help our customers from consumers and small businesses to the largest global organizations secure and manage their information-driven world against more risks at more points, more completely and efficiently than any other company Hewlett-Packard Company or HP is an American multinational information technology corporation headquartered in Palo Alto, California, United States that provides products, technologies, software, solutions and services to consumers, small- and medium-sized businesses (SMBs) and large enterprises, including customers in the government, health and education sectors. HP was the world's leading PC manufacturer until 2010, losing the position to Apple Inc in 2011 AMD is an American multinational semiconductor company based in Sunnyvale, California, that develops computer processors and related technologies for commercial and consumer markets. Its main products include microprocessors, motherboard chipsets, embedded processors and graphics processors for servers, workstations and personal computers, and embedded systems applications. AMD is the second-largest global supplier of microprocessors based on the x86 architecture and also one of the largest suppliers of graphics processing units Cisco Systems, Inc. is an American multinational corporation headquartered in San Jose, California, United States, that designs, manufactures, and sells networking equipments. Cisco has more than 60,000 employees and annual revenue of US$ 43.0 billion as of 2011. Cisco is the worldwide leader in networking that transforms how people connect, communicate and collaborate
Top Players in the Industry
Facebook is a social networking service and website launched in February 2004 by Mark Zukerberg, operated and privately owned by Facebook Inc.As of February 2012, Facebook has more than 845 million active users. The Web site's membership was initially limited by the founders to Harvard students, but was expanded to other colleges It gradually added support for students at various other universities before opening to high school students, and eventually to anyone aged 13 and over Adobe Systems Incorporated is an American multinational computer software company founded in 1982 and headquartered in San Jose, California, United States. The company has historically focused upon the creation of multimedia and creativity software products, with a more-recent foray towards rich Internet application software development Apple Inc.formerly Apple Computer, Inc. is an American multinational corporation that designs and sells consumer electronics, computer software, and personal computers. The company's best-known hardware products are the Macintosh line of computers, the iPod, the iPhone and the iPad. Its software includes the Mac OS X operating system; the iTunes media browser; the iLife suite of multimedia and creativity software; the iWork suite of productivity software; Aperture, a professional photography package; Final Cut Studio, a suite of professional audio and film-industry software products; Logic Studio, a suite of music production tools; the Safari web browser; and iOS, a mobile operating system Yahoo! Inc. is an American multinational internet corporation headquartered in Sunnyvale, California, United States. The company is perhaps best known for its web portal, search engine (Yahoo! Search), Yahoo! Directory, Yahoo! Mail, Yahoo! News, Yahoo! Groups, Yahoo! Answers, advertising, online mapping, video sharing, and social media website and services. It is one of the largest websites in the United States
General Trends in IT
1. Next-Gen Mobile Smart Devices and Tablets
Smart mobile devices based on iOS, Android, and even Blackberry OS/QNX are seeing widespread use By 2015 the tablet market will be 479 million units and the PC market will be only just ahead at 535 million units
2. Social Media Social Business and Enterprise
The world is using social networks and other social media-based services to stay in touch, communicate, and collaborate Also, leading organizations are becoming social enterprises According to a survey, it is reported that the revenue growth of social businesses is 24% higher than less social firms
General Trends in IT
3. Cloud Computing
Integrated stack-as-a-service delivery models is expected to grow. Nearly all businesses boost improvements in IT performance after cloud adoption The growth of mobile Cloud: A greater number of the public now operate their social and professional lives via mobile devices and tablet PCs Cloud Computing
*** The BPaaS model assumes that clients will shift to a vendor -provided application platform in a single/multi-tenant hosted model with very limited customization
IaaS: organization outsources the equipment used to support operations, including storage, hardware, servers and networking components
PaaS: service delivery model allows the customer to rent virtualized servers and associated services for running existing applications or developing and testing new ones
SaaS: is a software distribution model in which applications are hosted by a vendor or service provider and made available to customers over a network, typically the Internet.
General Trends in IT
4. Consumerization of IT
Consumerization is an increasingly accepted term used to describe the growing tendency for new information technology to emerge first in the consumer market and then spread into business and government organizations. The primary impact of consumerization is that it is forcing businesses, especially large enterprises, to rethink the way they procure and manage IT equipment and services Large enterprises have become increasingly dependent upon consumerized services as search, mapping, and social media. The capabilities of firms such as Google, Facebook, and Twitter are now essential components of many firms marketing strategies Consumer markets are now changing large scale computing as well The giant data centers that have been and are being built by firms such as Google, Apple, Amazon etc For example, Google is said to support over 300 million Gmail accounts, while executing more than 1 billion searches per day
General Trends in IT
5. Big Data
The term big data was coined to describe new technologies and techniques that can handle an order of magnitude or two more data than enterprises are today Big data offers the promise of better ROI on valuable enterprise datasets while being able to tackle entirely new business problems
6. Virtualization
By providing a logical view of computing resources, rather than a physical view, virtualization solutions make it possible to do very useful things There different type of virtualization: storage, data, network, hardware, software and memory In virtualized environments, it's easier to move things around, to encapsulate, to archive and to optimize. The leading virtualization vendors are providing "live migration" capabilities that make a network administrator's life easier and more productive
Government Regulations on IT Industry
USA PATRIOT Act This act gives federal officials greater authority to track and intercept communications, both for law enforcement and foreign intelligence gathering purposes.
Federal Information Processing Standards (FIPS)
This standard requires that all applications and devices using cryptography have been FIPS or Common Criteria (CC) validated. Federal Information Security Management Act (FISMA) This act requires federal agencies to develop, document, and implement agency-wide programs to secure data and information systems supporting agency operations and assets, including those managed by other agencies or third-parties. California Information Practice Act or Senate Bill 1386 This act requires organizations to disclose any security breach that occurs to any California resident whose unencrypted personal information may have been acquired by an unauthorized person.
Government Regulations on IT Industry
The Sarbanes-Oxley Act (SOX) This act makes it mandatory for organizations to ensure that their financial information is accurate and that systems generating the information are reliable. Management is required to undergo assessment of internal controls over financial reporting. The assessment should be carried out by external auditors. California Assembly Bill 1950 (AB 1950) This bill builds on the privacy requirements of Senate Bill 1386 and requires that organizations take "reasonable precautions" to protect California residents personal data from modification, deletion, disclosure, and misuse rather than just report on its disclosure. Authentication in an Internet Banking Environment(FFIEC November 2005 Guidance) This regulation outlines the US Food and Drug Administrations requirements for electronic records and electronic signatures. Organizations must implement controls to ensure authenticity, integrity, confidentiality, and non-repudiation of electronic records. In some cases, organizations must also implement measures such as encryption and digital signatures.
Problems in IT industry
Cloud Security Social Networks
High potential of commiting fraud and spam launch is observed Koobface worm has been a serious concern
Malware attacks
Malware attacks has been increased upto 11 million in 2011 It can be through: Mobile Apps Social Media Fake Antivirus PDFs & War Games
Information
By 2015, internet traffic will grow upto 64 Exabyte/month Due to this, there will be a gap between information created and storage available
Extensive use of virtualization brings unique security issues Cloud service provider faces a problem with the infrastructure security
Cyber Crimes
Cyber crimes include espionage, financial theft and other cross border crimes Cyber terrorism is also a major concern
Asset Management
Budgetary Inflexibility
70 to 80 percent of most companies IT budget is spent on maintenance More than 20 to 25 percent has to be freed to spend on the backlog
It is difficult to maintain all the softwares once they are deployed
Future & Forecasts
CIOs
By 2014, CIOs will have lost effective control of 25% of their organizations' I T spending
Mobile Apps
By 2015, mobile application development projects targeting smartphones and tablets will outnumber PC projects by 4 to 1
Mobile PCs and Smartfones
By 2016 the installed base of mobile PCs and smartphones will exceed that of desktop PCs
Cloud Computing
It gains foothold as large and med-size organization reduces the legacy of hardware and software to migrate to cloud
3D Mapping
With apple acquiring 3D mapping company, C3 technologies, to reinvent iOS mapping experience which can even pick up small objects like trees
Digital learning
As the world enters in the new era of digital learning, IT helps learners to access vast knowledge, collaborate with others all over the world
Increased Data transfer
By,2016, wireless carriers will find a way to transmit more than 30 times the volume of data than their networks carry today
