...Weak Revenue Trends: Technology revenue growth declined in 2013, approximately 1% compared with growth of 1% and 4% in 2012 and 2011, respectively. The revenue deceleration reflects lackluster global macroeconomic conditions, particularly in emerging markets, broad pricing pressures (PCs, servers and certain IT services), government spending constraints from continued fiscal challenges, datacenter consolidation enabled by virtualization, accelerating cloud adoption and a shift toward lower-cost hardware products (notebook PCs, x86 servers, tablets and smartphones). Accelerating Cloud Adoption: The effects of accelerating commercial cloud adoption on incumbent technology providers varies by subsector. Fitch Ratings believes the most profound has been in hardware (servers) and software (applications). Despite accelerating adoption, the cloud has not brought any negative rating actions by Fitch in the technology sector thus far. This primarily reflects the measured pace of adoption by large...
