Archivo de la categoría: Strategy Analytics

Avago, Broadcom, Chris Taylor, Hock Tan, Internet of Things, IoT, M&A, News & Analysis, Strategy Analytics

Avago buys Broadcom for $37bn to create IoT chip dream team

Avago is buying Broadcom for $37bn to create an IoT giant

Avago is buying Broadcom for $37bn to create an IoT giant

It seems every corner of the mobile market is consolidating right now and semiconductors are clearly no exception, with digital signal processing chip maker Avago acquiring communications chip company Broadcom for $37bn, reports Telecoms.com.

Avago was spun off from Agilent Technologies back in 2005, which was itself spun off from HP in 1999, leading to what was at the time the world’s largest IPO. It has a broad portfolio of semiconductor products and is strong in mixed-signal circuits and sensors. Broadcom has long been a leader in communications technologies such as ethernet, wifi and Bluetooth.

“Today’s announcement marks the combination of the unparalleled engineering prowess of Broadcom with Avago’s heritage of technology from HP, AT&T, and LSI Logic, in a landmark transaction for the semiconductor industry,” said Hock Tan, president and chief executive of Avago. “The combination of Avago and Broadcom creates a global diversified leader in wired and wireless communication semiconductors. Avago has established a strong track record of successfully integrating companies onto its platform.”

“This transaction benefits all of Broadcom’s key stakeholders,” said Scott McGregor, president and chief executive of Broadcom. “Our customers will gain access to a greater breadth of technology and product capability. For our shareholders, the transaction provides both compelling up-front value as well as the opportunity to participate in the future upside of the combined business.”

In practice the combination of Avago’s strength in sensors and Broadcom’s in communications looks like a potential IoT dream team, creating the ability to offer unified IoT chips that do everything you could ask of a connected thing.

Chris Taylor, analyst at Strategy Analytics, told explained that Avago’s other strengths include RF power amplifiers and filters. “Their most notable success has been in Apple phones over the past several years with their multi-mode, multi-band power amplifiers,” he said. Taylor also noted their success in RF filters for LTE bands above 1.9 GHz, which are likely to be used more extensively as more capacity is needed.

A similar move was recently announced by NXP and Freescale, which are merging to form a semi company with strengths in NFC, automotive and microcontrollers, and which NXP announced today it would be selling off its RF Power business to fund. Both of these merged companies must compete with mobile chip leader Qualcomm, which acquired wifi chip giant Atheros back in 2011. It will be interesting to see if there’s a response to all this M&A from Asian chip players such as Mediatek.

Amazon AWS, Amazon Cloud Drive, Apple, Digital media, DropBox, Google, Icloud, Research, Storage, Strategy Analytics

Why Apple, Not Dropbox, Amazon or Google Drive, is Dominating Cloud Storage

Apple is dominating the cloud storage wars, followed by Dropbox, Amazon and Google according to Strategy Analytics ‘Cloud Media Services’ survey. Cloud storage is overwhelmingly dominated by music; around 90% of Apple, Amazon and Google’s cloud users store music. Even Dropbox – which has no associated content ecosystem – sees around 45% of its users storing music files. Dropbox’s recent acquisition of Audiogalaxy will add a much needed native music player to the platform in the coming months.

In a recent study of almost 2,300 connected Americans, Strategy Analytics found that 27% have used Apple’s iCloud followed by 17% for Dropbox, 15% for Amazon Cloud Drive and 10% for Google Play (see chart).

Usage of cloud storage is heavily skewed towards younger people, in particular 20-24 year olds, whilst Apple’s service is the only one with more female than male users. Amongst the big four, Google’s is the one most heavily skewed towards males.

“Music is currently the key battleground in the war for cloud domination. Google is tempting users by giving away free storage for 20,000 songs which can be streamed to any Android device, a feature both Amazon and Apple charge annual subscriptions for,” observes Ed Barton, Strategy Analytics’ Director of Digital Media. “However, the growth of video streaming and the desire to access content via a growing range of devices will see services such as the Hollywood-backed digital movie initiative Ultraviolet – currently used by 4% of Americans – increase market share.”

Barton continues, “The cloud’s role in the race to win over consumers’ digital media libraries has evolved from a value added service for digital content purchases to a feature-rich and increasingly device agnostic digital locker for music and movies. Dropbox being used by 1 in 6 Americans shows that an integrated content storefront isn’t essential to build a large user base, however we expect competition to intensify sharply over the coming years.”

Strategy Analytics found that, the big four cloud storage services aside, recognition of other brands was uniformly low. Furthermore 55% of connected Americans have never used a cloud storage service – although, amongst consumers who have used one, one third (33%) had done so in the last week.

“There needs to be considerable investment in evangelizing these services to a potentially willing yet largely oblivious audience,” suggests Barton. “Given the size of bet Hollywood is making with Ultraviolet, this will be essential to their success given a crowded market and widespread apathy. However, more fundamental questions remain – is the use of more than one cloud service going to be too much for consumers to handle and will consolidation in such a fragmented market become inevitable?”

Barton concludes, “Although cloud storage is fast becoming a key pillar of digital platform strategies for the world’s leading device manufacturers and digital content distributors, there’s still a lot of work to do in educating consumers – particularly those over 45. With over half of consumers yet to use any consumer cloud based service, 2013 predictions for the ‘year of the cloud’ seem unrealistic. However given the market influence of the leading players pushing the concept, in particular Apple, Amazon, Google and Ultraviolet, I won’t be surprised to see mainstream adoption and usage spike within the next two to three years in the key US market.”

Asia/Pacific Rim, China, Research, Strategy Analytics

Chinese Companies Taking Hybrid Approach to Business Clouds

Taking a hybrid approach that supports traditional and cloud-based IT solutions is key to business cloud adoption in China, according to the Strategy Analytics Business Cloud Strategies (BCS) service report “Chinese Organizations Adopt SaaS and Other Business Clouds.” It describes the extent to which businesses and other organizations in China have embraced a mix of public and private clouds while maintaining traditional on-premise software deployments.

Chinese organizations are moving to cloud computing due to expectations of superior scalability and other benefits. However, the pace of cloud adoption is affected not only by security concerns which represent the top reason for not moving apps to the cloud for every country surveyed but also reliability concerns which is more of a concern in China than in all but one of the other countries surveyed.

“Chinese organizations are investing in moving applications and infrastructure to public and private clouds,” commented Mark Levitt, Director of Business Cloud Strategies research at Strategy Analytics. “However, continued reliance on traditional on-premise solutions for key business workloads due to reliability and security concerns requires cloud service providers and product vendors in China to fully support hybrid cloud and non-cloud environments.”

“Cloud product and service providers that want to be successful in China need to demonstrate how clouds can actually enhance security, reliability and mobility for Chinese organizations,” said Andrew Brown, Director of Enterprise Research at Strategy Analytics.

Research, Strategy Analytics

Strategy Analytics: SMBs Run on Business Clouds

Keep it simple, scalable and secure is the approach of small and medium businesses in adopting business clouds according to the Strategy Analytics Business Cloud Strategies (BCS) service report, “SMBs Run on Business Clouds According to 2012 Global Survey.” It describes the extent to which SMBs have embraced public clouds for applications more than any other cloud option.

Unlike larger organizations that have invested in both public and private clouds for applications and infrastructure, SMBs prefer public Software as a Service (SaaS) offerings that are easy to use, manage and integrate with other infrastructure and applications. Security remains a concern shared with larger firms.

“Many SMBs have moved nearly all of the applications that they can to public SaaS clouds,” commented Mark Levitt, Director of Business Cloud Strategies research at Strategy Analytics. “In the next 12-24 months, SMBs will explore how to move their remaining applications to run on public Infrastructure as a Service (IaaS) clouds.”

“To compete with larger competitors, SMBs recognize that they must tap the vast resources available in business clouds to act nimbly and quickly in response to business and market needs,” said Andrew Brown, Director of Enterprise Research at Strategy Analytics.