Cloud computing expected to see flat growth next year

Gartner expects slowed recovery in consumer spending

By Kim Yoo-chul

GOYANG, Gyeonggi Province ― Cloud computing, which allows consumers to store and access files and applications over the Internet, will see a flattened growth from two years after.

A senior executive at Gartner, an information technology research and advisory firm headquartered in Connecticut, the United States, has claimed that the concern spreading through markets about profitability is similar to the dot-com bust in 1999 and 2000.

``Technology innovation drives business innovation. Cloud computing is an emerging trend in today’s technology arena, but it will see a plateau in terms of growth from two years after,’’ Gartner analyst John Roberts said on the sidelines of the ongoing Korea Electronics Show (KES) at the KINTEX Convention Center, Thursday.

He is a research vice president and distinguished analyst at Gartner CIO Research, based in Asia-Pacific.

Roberts’ remarks are drawing attention as businesses are set to be provided huge chances by cloud computing, though a growing number of firms are facing challenges in adopting the technology.

``We need to rethink the social business model. After the dot-com bubble, the technology pipeline has been well-stacked,’’ said the senior analyst.

But he identified cloud computing and Web platforms for business applications as the technology industry’s noticeable trend in the next two to five years, adding social media and location intelligence will take less than two years for mainstream adoption.

With the advent of cloud music services from Apple, offering free storage of music and videos, Google also launched a cloud-based music streaming service, where users could upload their song library to Google’s storage servers.

IBM of the United States and other leading players are also investing heavily to strengthen their capability for the services with the firm belief that cloud computing could generate more benefits amid the world of convergence.

Samsung Electronics is set to start its S-Cloud service, which is similar to those provided by Google and Apple, led by Samsung SDS in an apparent strategy to ride on the new technology wave.

Gartner said digital 3D printing and environmental interfaces will become the new trend in five to 10 years and advised executives to find specific patterns of what consumers want in terms of future marketing campaigns.

``By 2020, 50 percent of information used by consumers and knowledge workers will be delivered automatically and contextually and company executives need to identify how key technologies and trends such as real-world sensing and data-driven decisions will impact strategies and infrastructure.’’

The U.S.-based firm said media tablets and beyond, mobile applications, contextual and social user experience and the Internet of Things will be next year’s top 10 technology trends.

Slowed recovery in spending

Gartner expects consumer spending on digital devices throughout next year will decrease further, as rising economic uncertainties in the United States and Europe are sapping demand for electronics goods.

``Growth in consumer spending for technology products will be cut to 2 percent annually, next year from our early prediction of 5 percent,’’ said the advisory firm, adding economies in emerging countries will also see stalled growth for 2012.

But Gartner was positive for the outlook in the semiconductor market for the following year as it expects steady releases of computing devices such as tablets, smartphones, smart appliances and the launch of Microsoft’s new operating system (OS) Windows 8 to lift the demand for semiconductors.

It sees the semiconductor market will reach $300 billion in terms of revenue by next year ― an increase of 4.6 percent from this year’s estimated $299 billion.

Next year, the market will see major growth factors such as the Summer Olympics in London and the start-up of TV businesses by Google and Apple, according to the advisory.

This outlook is echoed by with Hynix Semiconductor, the world’s second-biggest memory chipmaker.

Hynix chief executive Kwon Oh-chul told reporters the global chip market will improve from the latter half of next year helped by cuts in spending for facilities by cash-strapped Taiwanese chipmakers and clearing inventories.