The rapid expansion of device connectivity is fueling growth in the market for solutions designed to power the Internet of Things, according to projections from IDC. Analysts say the transition to a more demand-driven market will help drive compound annual growth of 17.5% in the Internet of Things sector through the end of the decade, with revenues expected to reach $7.1 trillion by 2020.
IDC reported virtualized server shipments and software sales declined roughly 20% during the second quarter this year as companies cut back on technology spending. Despite the reduction, the firm noted virtualized servers accounted for 16.5% of total server shipments, an increase of 2% from last year.
IDC said it expects the PC market to begin a turnaround in 2010 after recent declines in shipments and shipment value. The firm reported total global shipments of PCs declined 2.4% in the second quarter this year even as shipments of consumer portables increased 44% thanks to the growing popularity of mini-notebooks.
According to IDC, worldwide sales of server hardware fell 24.5% year over year in the first quarter to $9.9 billion on the largest decrease in unit shipments in five years. Makers shipped about 1.49 million units in the period, down 26.5% year to year, though HP and IBM remain the top two server vendors in the market.
Weak quarterly sales related to server systems pulled down the overall data storage systems market 5.9% compared with 2008, according to IDC. Shipments in terms of total disk storage systems capacity rose 27.3% during the period to 2,460 petabytes.