SAN FRANCISCO – The latest poll of the nation’s CIOs says IT budgets will grow 7.2% during the next year, up from 5.1% in March, says Deutsche Bank. The June poll results rebounded strongly, reversing four consecutive down quarters.
Spending projections improved for all but the largest companies, which DB believes bodes well for improving corporate spending in the second half of the year.
Results for small (101-500) and very small firms (1-100) strengthened in June, with CIOs expecting 11% and 9% growth in the next 12 months (vs. 10% and 2% in March), respectively. Medium firms (501-1,000) were optimistic, expecting 7% growth (vs. 4% in March), while large firms (1,001-5,000) and very large firms (>5,000) were less optimistic, with CIOs expecting 5% growth (vs. 3% and 7% in March, respectively), says the report.
Storage Systems was the top spending priority in the June Poll, with 54.1% of respondents planning to increase spending (vs. 46.3% in March). Security Software took the second spot with 41.6% of respondents planning to increase spending (vs. 43.5% previously), followed by Computer Hardware at 40.8% (vs. 45.5% previously).
Medium-size companies led results for Storage and Computer Hardware for the third consecutive quarter, with 78.6% (vs. 62.5% previously) predicting increased Storage budgets. In addition, Computer Hardware was also a priority for medium-size firms, with 60.0% (vs. 56.3% in March) of CIOs expecting increased spending.
Of the respondents to DB questions, 54.4% said they had implemented server virtualization, while 21.6% cited they were seriously considering it; 7.1%, 15% and 21.3% cited they had reduced server spending by roughly 50%, 30% and 10%, respectively. However, 15% cited they had not reduced server spending through virtualization.
EL SEGUNDO, CA – The market for Internet TV service will reach $5.8 billion in 2011, up 13.7 times from $422.7 million in 2006, iSuppli Corp. predicts.
The Web is quickly growing into the world’s largest on-demand, interactive video library. The Internet also is evolving into the most ubiquitous video distribution platform ever known, says the firm.
iSuppli notes that as more consumer electronic devices like TVs, DVD players, game consoles, iPods and portable gadgets become Web-connected, Internet TV will leap from computer screens into the consumer’s primary media environment: the living room TV.
With Internet TV, content owners face the trade-off of “reach” versus “control,” while video network operators face a new way to reach consumers, as well as a new competitive threat that could put pressure on their long-term position in the market.
Meanwhile, a variety of Internet portal companies, content delivery networks, software platform companies and other technology providers embrace the revenue opportunity, says the researcher.
iSuppli also found that while news was the largest revenue category for advertising supporting professionally generated Internet TV in 2006, it will be third by 2009, behind sports and entertainment. Also, bandwidth required for Internet TV will grow by more than 44 times from 2006 to 2011 to almost 7 million Tebibytes, the company says.
Internet TV will be dominated by North America and Western Europe, says iSuppli. Regions such as Latin America and Eastern Europe will not have significant Internet TV penetration through 2011.
SAN FRANCISCO – Deutsche Bank remains optimistic that PC unit growth will accelerate through year-end.
The firm believes current expectations of 10 to 11% unit growth will trend up toward the company’s previous estimate of 15% year-over-year growth, the result of continued strength in emerging markets, consumer and the beginning stages of a corporate PC upgrade cycle in the second half of the year.
Inventory correction has been largely cleared and manufacturing trends are firming, says DB. A relatively benign PC pricing environment continues, the company adds.
Evidence of an accelerating PC demand trend is visible among Taiwanese manufacturers; Quanta Computer increased its forecast to 30 to 50% year-over-year growth up from 20 million units shipped last year.
More broadly, Asian PC demand is tracking to 10 to 12% year-over-year unit growth in the June quarter, with early indications suggesting 10 to 15% in the September quarter.
Overall, demand appears normal, the firm said, with a slow and steady ramp expected into the second half of the year.
Motherboard units accelerated in May to up 17% year-over-year. Notebook data have also remained strong, with Taiwan notebook units up 63% year-over-year in May, accelerating from 37% growth in April. Notebooks are expected to be up 41% in the second half of the year.
LCD pricing has strengthened recently, DB said. Overall LCD pricing is up 5% in May versus the first-quarter average.
Notebook and desktop pricing was relatively stable this quarter, with average ASPs for notebooks down 1%.
FRANKFURT - The printed circuit board (PCB) market in Germany grew 14% sequentially in March 2007, according to the VdL (Association of the Printed Circuit Board Industry) and the Electronic Components and Systems Group of the ZVEI.
Meanwhile, the PCB market for the first quarter of the year is at the same level as last year.
However, incoming orders slid by 9% compared to February, but VdL and ZVEI attribute this to the large orders in the first half of last year from Asia.The demand remains flat; however VdL and ZVEI are optimistic of the German PCB market this year due to the new lead-free requirements. Book-to-bill ratio was 0.85 in March and 1.0 for the first quarter of the year.
TAIPEI, Taiwan - According to sources, Unimicron Technology anticipates improved revenues in the thrid and firth quarters of 2007 as it adjusts product mix to increase high-end shipments.
Chairman Tzeng Tze-chang, at a recent investor conference said that 2006 was a year of extraordinary growth for the PCB industry and Unimicron is unlikely to see a repeat of 2006 performance in 2007. The chairman remains optimistic about 2007, saying Unimicron's growth will return to pre-2006 levels.
The company continues developing high-end products, including handset-use high-density interconnect (HDI) boards, and chip-scale package (CSP) substrates, Tzeng said. The chairman said the high-end product lines are helping improve the company's margins, which he predicts may hit a record in 2008.
SALO, Finland. The closure of the Salo plant, partnership talks in Asia and a delay in the start-up of the India plant where all announced on June 15, 2007 at 4:40 pm by Aspocomp in the following press release.
The statutory labor co determination negotiations that were launched in May concerning the personnel at Aspocomp Oy and Aspocomp Group Oyj were concluded today. As a result, it was decided that a total of 237 personnel, consisting of 183 non-salaried and 54 salaried employees, will be made redundant. Production at the Group's Salo plant will be closed down and employment of 215 personnel terminated. The aim is to shut down production by mid-July and implement the planned personnel reductions in 2007. Aspocomp intends to use part of the plant's production equipment in its facilities in China and India.
The negotiations concerned about 350 employees in Finland, excluding the personnel of the Oulu plant. After the personnel reductions, headcount in Finland will total 219 employees. Of those, 161 personnel work at the Oulu plant. Part of the Group's research and development will remain in Finland to serve the company's global customers. In addition, the Group will start product development in the premises of its Chinese plant this year.
The goal of the layoffs and the shutting down of the Salo plant is to reach annual savings in excess of EUR 10 million. Balance sheet write-offs and non-recurring costs resulting from the layoffs are estimated to total about EUR 20 million. Of this, write-off of the plant building accounts for about EUR 11 million. The shutting down of the plant is anticipated to decrease the Group's net sales for 2007 by about EUR 10 million and reduce loss before non-recurring items by about EUR 3 million.
The full-year 2007 result is expected to be markedly unprofitable. Aspocomp Group Oyj's liquidity is estimated to remain weak due to the negative result and a reduction in certain credit limits that the company previously had available. A larger than planned part of the net proceeds obtained from the rights offering is used for the company's working capital requirements. After closing down the Salo plant and excluding the effect of the plant project in India, the Group's profit from the continuing operations is expected to improve to the break-even level.
Negotiations on partnership in Asia, delay in the plant project in India Aspocomp has previously announced that it will be active in the industry's consolidation trend. The Group is presently negotiating on potential cooperation with strategic partners in order to accelerate its growth in Asia and to finance its planned investment program.
The possible choice for strategic partnership will affect the timing for the start-up of the plant in India. The Group will also continue negotiations with alternative financiers to the plant project. The duration of the partnership and financing negotiations cannot be estimated and the company cannot guarantee their outcome.
