Analyst digest: Grid computing on the rise

For the week of April 19 to April 25, analysts noted that:

-- The grid computing market will be worth US$12 billion in revenue by 2007, according to IDC. Revenue growth will be driven by the expansion of the market beyond traditional high performance computing applications and users and the maturing and standardization of grid software, IDC said.

-- The world semiconductor market grew 18.3 percent in 2003 to US$166.4 billion and will grow a further 29 percent this year to $214.7 billion, according to In-Stat/MDR. The upturn follows a flat market in 2002 and a 32 percent decline in 2001.

-- The Digital Subscriber Line Access Multiplexer (DSLAM) market grew strongly in 2003 with more than double the number of DSLAM ports sold as in 2002, according to In-Stat/MDR. Asia now accounts for 48 percent of DSLAM port shipments and the market should grow again in 2004, by 40 percent.

-- Sales of mobile phones and other handheld devices grew 25.6 percent in the first quarter of 2004 compared to the same period last year, according to IDC. The standard mobile phone market grew by just 9 percent during that time compared with robust 35 percent growth in sales of converged devices such as communication-enabled PDA (personal digital assistants).

-- Businesses located in multi-tenant units (MTUs) represent a significant opportunity for broadband vendors, according to In-Stat/MDR, with worldwide MTU in-building related service revenues predicted to grow from US$365 million in 2003 to $3.7 billion in 2008. These buildings house a significant proportion of businesses worldwide, especially in high-density areas such as New York, Hong Kong and Seoul.

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