Worldwide spending on information security will reach US$71.1bn in 2014, an increase of 7.9% year over year, with the data loss prevention segment recording the fastest growth at 18.9%. Total information security spending will grow by 8.2% in 2015 to reach US$76.9bn.1
By 2015, roughly 10% of overall IT security enterprise product capabilities are forecasted to be delivered in the cloud. A significant number of security markets are being impacted by new delivery models. This is resulting in the growth of cloud-based security services, which are transforming the way security is supplied and consumed by customers. More than 30% of security controls deployed to the small or midsize business (SMB) segment is expected to be cloud-based by 2015. Regulatory compliance has been a major factor driving spending on security in the last three years, particularly in the US.1
Software-defined networking (SDN) continues to gain ground within the broader enterprise and cloud service provider markets for datacenter networking. The worldwide SDN market for the enterprise and cloud service provider segments is expected to grow from US$960mn in 2014 to over US$8bn by 2018, representing a robust CAGR of 89.4%. This forecast for the SDN ecosystem includes in-use physical network infrastructure, controller and network-virtualization software, SDN network and security services and related applications, and SDN-related professional services. Software-defined networking is an innovative architectural model that is capable of delivering automated provisioning, network virtualization, and network programmability to data centers and enterprise networks.2
Intuit posted revenue of US$714mn in Q2’14, up 13%, and reached a key inflection point in Small Business; for the first time more new customers chose QuickBooks Online over QuickBooks Desktop. QuickBooks Online subscribers increased by 40%, with approximately 60,000 new customers. Further, QuickBooks Online subscribers outside the US grew more than 150% to 84,000.
Microsoft Corp’s Devices and Consumer revenue grew 42% to US$10.0bn. Windows OEM revenue grew 3%, driven by 11% growth in Windows OEM Pro revenue. Office 365 Home and Personal subscribers totaled more than 5.6 million, with an increase of more than one million subscribers in the second quarter. The acquired Phone Hardware business from Nokia contributed US$1.99bn to this quarter’s revenue. Bing search advertising revenue grew 40% and US search share grew to 19.2%. Commercial revenue grew 11% to US$13.48bn and commercial cloud revenue grew 147%. Windows volume licensing revenue grew 11%. Server products revenue, including Azure, grew 16%. Microsoft completed the acquisition of the Nokia Devices and Services (“NDS”) business on April 25, 2014.
Amazon announced the US$970 million acquisition of Twitch Interactive, an online video channel for video games that attracts 55 million monthly active gamers. Twitch owns live-streaming technology that supports simultaneous watching for game tournaments and other events.
VMware’s revenues for Q2’14 were US$1.46bn, an increase of 17% year over year. Excluding revenues attributable to Pivotal and all divestitures that occurred in 2013, revenues for Q2’14 increased 18% year over year. Operating income for the second quarter was US$200mn, a decrease of 26% year over year, reflecting the impact of the AirWatch acquisition. Net income in the second quarter was US$167mn or US$0.38 per diluted share, down 32% per diluted share compared to US$245mn or US$0.57 per diluted share in Q2’13.