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(Microsoft and Apple, Kings of IT in 2018 )
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http://news.softpedia.com/news/microsoft...8975.shtml      Microsoft and Apple, Kings of IT in 2018 - Analysts

The two firms will drive the profit in the industry
Dec 14, 2017 05:17 GMT  ·  By Bogdan Popa ·  Share:      
Microsoft and Apple will continue to be the two kings of the IT industry next year, according to a new analyst forecast, and the cloud services are going to be the engines powering this strong performance.

Analysts at credit rating house Moody’s said in a new forecast that Microsoft and Apple would “collectively account for about half of the industry’s operating profit,” with IT spending to improve 4 percent versus 3 percent in 2017 and a decline of 2 percent in 2016.

“Revenue growth will be driven by equipment and software purchases and services related to the ongoing migration to cloud-based IT systems from legacy IT architectures,” the analyst said.

PC market still going down
The PC market will continue to decline in 2018, the projection reads, but it’ll only happen “at a low single digit rate,” helping it stabilize after the major collapse in the last few years. This is the result of a gradual replacement cycle that takes place mostly in the corporate segment, with more enterprises moving to new hardware.

Windows 10 has also reached its maturity, and the latest versions introduced a series of enterprise innovations, and the upgrade pace could be accelerated in the coming years.

As far as mobile devices are concerned, the analysts believe Apple’s new iPhone 8 lineup and iPhone X should boost demand, while sales in the server market should also increase thanks to the new Intel processors and the growing demand from cloud service providers.

Ever since Satya Nadella replaced Steve Ballmer at the helm of Microsoft, the software giant has increased focus on cloud services, and now they have become the main catalyst of the company’s continuously increasing revenues.

Furthermore, Ballmer’s original push towards a devices and services firm has evolved into mobile-first, cloud-first, with significant focus on enterprises. This is already paying off for Microsoft, with FY18 Q1 results revealing a growth of no less than 17 percent for server products and cloud services revenue and 90 percent increase generated by Azure alone.

Analysts estimate a growth of the entire industry, mostly powered by Microsoft and Apple
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