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Tech Market Insight: Mary Meeker's 2017 Internet Trends Report Reveals Current State of the Tech Industry

Mary Meeker’s annual Internet Trends Report has arrived, providing well respected and in-depth insight on the current state of the tech industry and what the market can expect into the future.The 2017 report provides considerable promise for the sector, describing the past half-decade as “epic” for public and private internet companies. Furthermore, Meeker points out that "the big are only getting bigger" and global technology mergers and acquisitions are "robust relative to history".We’ve summarized the key enterprise points in this year’s 350+ page slide deck below:Enterprise User Demands & Spend

  • Whilst data center spend continued to hold a significant majority (63%) of 2016 IT infrastructure budgets, this is down 13% from 2013 with public and private cloud spend up 8% and 6% respectively
  • The top cloud computing concerns are shifting, with data security seeing a surprising drop from 42% in 2012 to 35% in 2015 - though it remains the top cited cloud concern. The focus shifted from cost uncertainly to vendor lock-in (from 7% to 22%) and compliance/government (from 21% to 27%)
  • The expectation is that enterprise software will mirror that of consumer apps in terms of design, ease of use and reliability. Unsurprisingly, customers expect that their enterprise services can be delivered via the cloud, on a subscription pricing model and with personalized UX
  • Whilst both public and private cloud spending increased overall, public cloud spending remained static for AWS. However, Microsoft Azure grew significantly with a 14% increase in spend, Google Cloud grew modestly at 5% and IBM managed just 1% (more on Battle of the Cloud in our recent blog post)
  • The way enterprise IT teams perceive their infrastructure is evolving with cloud growth stimulating innovation and creating new opportunities in edge computing, methods of software delivery, containers, microservices and elastic databases
2017 Internet Trends - IT Infrastructure Spend Graph

Security

  • Cost savings and ease of adoption are driving a rapid uptake of enterprises using cloud-enabled apps, particularly with marketing, HR, finance and sales teams who have the most users of cloud services. The report notes this should be arousing security and compliance concerns given 94% of all cloud apps are not “enterprise-ready” (according to Netskope)
  • Since 2014, there have been almost 40 global cases of security breaches in which more than 10 million identities were exposed. The most significant breach being two from Yahoo! which made global headlines thanks to a staggering 500 million user accounts being hacked and published online. Tech companies: Oracle, Verizon and Three also reported security breaches in 2016

Global Internet Market Capitalization Leaders

  • The global internet giant rankings (listed in the table below) saw some movement in the 2017 report with even further lead extensions of the top players with 85% of the top 20 all growing in market value from 2016
  • There were no new entrants to the top 20 which could be thanks to market value growth, coupled with aggressive acquisitions of startups and competitors over the past 12 months, cementing their market capitalization leader status
  • There was 27.8% overall market value growth of the internet market leaders (combined totals) with four Chinese companies reporting the strongest growth: Didi Kuaidi at 50%, JD.com at 41.4%, Tencent at 38.5% and Alibaba 34.7% respectively

CompanyRegion2016 Ranking2017 Ranking2016 Market Value ($B)2017 Market Value ($B)Market Value Growth AppleUSA11$547$80131.7%Google (Alphabet)USA22$510$68025.0%AmazonUSA33$341$47628.4%FacebookUSA44$340$44122.9%TencentChina55$206$33538.5%AlibabaChina66$205$31434.7%PricelineUSA77$63$9231.5%UberUSA88$63$7010.0%NetflixUSA149$44$7037.1%BaiduChina910$62$666.1%SalesforceUSA1111$57$6512.3%PaypalUSA1312$46$6124.6%Ant FinancialChina1013$60$600.0%JD.comChina1614$34$5841.4%Didi KuaidiChina2015$25$5050.0%Yahoo!USA1516$36$4926.5%XiaomiChina1217$46$460.0%eBayUSA1718$28$3826.3%AirbnbUSA1819$26$3116.1%Yahoo! JapanJapan1920$26$260.0%

  • Tech companies dominated 40% of the top 20 global companies (industry-wide) with Apple, Google (Alphabet), Microsoft, Amazon and Facebook securing the five top spots. In 2011, just 20% of tech companies made the top 20 global companies list with Apple and Microsoft the only tech representation in the top five for that period
  • This year's report also draws attention to the fact that many of the top internet giants are “a long way from where they started”:

From: To:ApplePersonal Computer Maker Smartphone/Computer/Tablet Maker, Content/Media Marketplace and Cloud ServicesGoogle (Alphabet)Online Search Engine Ad Ecosystem, Web Browser, Digital Video Platform, Content Marketplace, Navigation Tools, Cloud Services, AR/VR Software and moreAmazonOnline Bookseller Global B2B/B2C/C2C Commerce Platform, Content Ecosystem, Digital Video/Music Platform, eReader/Tablet/IoT/OTT Device Maker, Cloud Services, Logistics and moreFacebookUS Social Network Global Social Network, Instant Messaging Platform, Image Sharing Platform, AR/VR Software/Hardware and Ad EcosystemTencentInstant Messaging Platform Social Network, Gaming, Content Ecosystem, Ad Ecosystem, Cloud Services and moreAlibabaChinese B2B Commerce Platform Global B2B/B2C/C2C Commerce Platform, New Retail, Ad Ecosystem, Cloud Services, Logistics Data Platform, Content Creator and moreThe full 2017 Internet Trends report is available for download now. Looking for more information on global internet and cloud companies? There are 5,000+ cloud service providers and data center operators on Cloudscene and it's free to search.

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