COMPUTER BANKING REVENUES TO DECLINE, UNITS EXPLODE, AS INDUSTRY GOES MIDRANGE.MOUNTAIN VIEW, Calif.--(BUSINESS WIRE)-- U.S. purchases of computers for banking applications will drop in revenue terms from $4.6 billion in 1993 to $3.6 billion by the year 2000 even as unit sales unit sales Sales measured in terms of physical units rather than dollars. Unit sales data are often used by financial analysts when evaluating the health of a company. balloon by two and a half times, as the industry shifts rapidly toward smaller midrange computers A medium-sized computer system or server. Midrange computers encompass a very broad range and reside in capacity between high-end PCs and mainframes. They cost from $25,000 to more than a million. IBM's AS/400s (iSeries) and HP's 3000 and Alpha families are examples. , projects a new study just released by Frost & Sullivan. The revenue share of midrange computers will expand from 39 percent in 1993 to 64 percent by the 2000 and that of microcomputers from 8 to 13 percent as the mainframe share plunges from 53 to 23 percent in the same period, forecasts the report, U.S. MARKETS FOR COMPUTERS IN BANKING: MOVE TOWARD ON-LINE REAL-TIME STANDARD CREATES NEW OPPORTUNITIES DESPITE DOWNSIZING (1) Converting mainframe and mini-based systems to client/server LANs. (2) To reduce equipment and associated costs by switching to a less-expensive system. (jargon) downsizing . Most banks, particularly the money center banks Money center banks Banks that raise most of their funds from the domestic and international money markets , relying less on depositors for funds. , have returned to profitability after emerging from a period of recession. Banking is continuing to experience downsizing and re-engineering aimed at improving competitiveness in an era of information technology. Shifting toward increasingly networked environments and midrange midrange Epidemiology The halfway point or midpoint in a set of observations; for most data, MR is calculated as the sum of the smallest observation and the largest observation, divided by 2; for age data, one is added to the numerator; a midrange is usually platforms, U.S. banking is moving toward on-line real-time standards that will foster provision of a dramatically expanded array of consumer services Consumer Services refers to the formulation, deformulation, technical consulting and testing of most consumer products, such as food, herbs, beverages, vitamins, pharmaceuticals, cosmetics, hair products, household cleaners, [paints, plastics, metals, waxes, coatings, minerals, , beyond the beginnings of home banking and the sophisticated payment delivery systems already altering the industry. Computer use will increase greatly to meet the challenges of electronic banking. Banks will be shifting toward a newer generation of faster machines that incorporate such technologies as fault-tolerant and symmetric No difference in opposing modes. It typically refers to speed. For example, in symmetric operations, it takes the same time to compress and encrypt data as it does to decompress and decrypt it. Contrast with asymmetric. (mathematics) symmetric - 1. multi-processing computing computing - computer at competitive prices. The banking industry will replace, upgrade and overhaul a majority of existing systems, using faster, cheaper computers and new technology configurations such as local area networks (LANs) and client-server. While computers become cheaper, they will also incorporate more features making them faster and able to process much larger amounts of data. Mainframe computers will see major declines in prices and usage. Midrange computers will incorporate technology that allows them to match mainframe processing power at a fraction of the cost. Microcomputers will become increasingly powerful machines that will complement the increasingly midrange-dominated central hardware infrastructure. While the mainframe market will continue, sales will be largely due to replacement. Mainframe vendors are being forced by declining markets to look towards less costly technologies for their futures. Improved pricing strategies There are many ways in which the price of a product can be determined. The following are the foremost strategies that businesses are likely to use. Competition-based pricing Setting the price based upon prices of the similar competitor products. and product positioning will be central to survival. Frost & Sullivan is an international high-technology research firm. All Frost & Sullivan reports are based on extensive interviews with marketing and technical experts from selected companies in each market segment. Primary research is validated val·i·date tr.v. val·i·dat·ed, val·i·dat·ing, val·i·dates 1. To declare or make legally valid. 2. To mark with an indication of official sanction. 3. by thorough analysis of available secondary research. Frost & Sullivan is the leading publisher worldwide of high-technology research reports. Report: 541-70 Publication Date: 1994 Price: $1995 Total Computers in Banking Market: Unit Shipment and Revenue Forecasts (U.S.), 1990-20003-1 Total Computers in Banking Market: Unit Shipment and Revenue Forecasts (U.S.), 1990-2000gures Revenue Units RevenuesGrowth Rate Year (Million)($ Billion)(%) 1990 142.6 5.23 --- 1991 155.6 4.99 (4.6) 1992 170.4 4.78 (4.2) 1993 187.9 4.59 (3.8) 1994 208.9 4.43 (3.5) 1995 234.6 4.30 (3.0) 1996 266.3 4.19 (2.6) 1997 306.2 4.10 (2.0) 1998 352.9 3.99 (2.8) 1999 407.3 3.83 (4.0) 2000 470.5 3.61 (5.6) Compound Annual Growth Rate (1993-2000): (3.4)% Note: All figures are rounded. Source: Frost & Sullivan CONTACT: For further information please contact: Amy Arnell Kristina Menzefricke Nadge Keryhuel Mountain View London Paris (415) 961-9000 44 71 730 3438 33 1 4742 9127 (415) 961-5042(fax) 44 71 730 3343 33 1 4742 9129 REPEATS: New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of 212-575-8822 or 800-221-2462; Boston 617-330-5311 or |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion