A number of Orange County technology companies will likely capitalize on an explosion in mobile devices and cloud computing next year.
Information-technology spending is projected to hit $1.8 trillion worldwide in 2012, representing a 6.9% increase from 2011 and well outpacing the general economy, according to Framingham, Mass.-based market researcher International Data Corp.
As much as 20% of that growth will be driven by smartphones, tablets, mobile networks, social networking and big data analytics, IDC estimates. 2012 will mark some of the first high-stakes battles for leadership positions in these markets, according to Frank Gens, senior vice president and chief analyst at IDC.
“By the end of the year, we should have a good idea which vendors will and won’t be among the industry’s leaders at the end of the decade,” Gens said.
Corporate tech spending is key for several companies here, including Aliso Viejo-based QLogic Corp. and rival Emulex Corp. in Costa Mesa, both of which make equipment that speeds up storage. The same goes for business software makers such as Sage Software Inc. in Irvine and Aliso Viejo-based Quest Software Inc.
Smartphones, Tablets
Smartphones and tablets next year are projected to surpass PCs in shipments and in spending, according to industry analysts. That’s good news for Irvine-based Vizio Inc., which introduced its first tablet this year.
Vizio is the top seller of flat TVs in North America but a small player in tablets compared with Cupertino-based Apple Inc., the iPad maker, and Seattle-based Amazon Inc.’s Kindle. Vizio will look to pick up market share as it takes its products directly to consumers through launch parties at bars and other VIP and celebrity-gawking events.
Fierce competition among cloud service providers is under way, and 2012 could shake out some winners and losers.
Cloud-computing spending is projected to account for a third of IT growth, according to Cloud Hypermarket, a London-based consultancy.
Santa Ana-based Ingram Micro Inc.—the biggest distributor of computers, software and other technology products in the world, and the largest company in OC with $35 billion in annual sales—rolled out a cloud-computing service this year that’s projected to top $200 million in sales by 2015.
$1 Trillion
Worldwide consumer-electronics sales will surpass $1 trillion next year in a 5% climb from 2011, the Consumer Electronics Association said.
Consumer electronics are a big driver for many local companies, including Irvine-based communications chipmaker Broadcom Corp., Ingram Micro, Irvine-based disk maker Western Digital Corp., Smith Micro Software Inc. in Santa Ana, and SRS Labs Inc., which also is in Santa Ana and makes chips and software that boost sound in audio devices.
PERSON TO WATCH: james peterson
Microsemi Corp. Chief Executive James Peterson is riding a hot streak.
He has the Aliso Vie-jo chipmaker on a path to reach $1 billion in an-nual revenue. That’s due in large part to Micro-semi’s $633 million buy of Canadian chipmaker Zarlink Semiconduc-tor Inc. in October.
The rare hostile take-over was the company’s largest deal and provided inroads in the communications and medical markets—two key segments in its growth plan. Peterson has overseen 10 acquisitions since 2009, including the $430 million buy of Northern California-based rival Actel Corp., which was Microsemi’s priciest before Zarlink.
Peterson will be followed closely as he integrates Zarlink into the Microsemi brand and corporate culture. Analysts and others suggest Microsemi has underwhelmed in some of its past integrations. Microsemi has reportedly cut 50 mostly management positions at Zarlink’s headquarters in Ottawa. Peterson has promised $18 million to $20 million in cost savings from the Zarlink buy.
Microsemi consolidated several other ac-quisitions this year and closed an operation in Scottsdale, Ariz.
—Chris Casacchia
COMPANY TO WATCH: SAGE SOFTWARE
Irvine-based Sage Software Inc., the North American headquarters of Britain’s Sage Group PLC, broke its two-year revenue slump in late November.
The company will look to build on that momentum heading into 2012.
Sage makes software that streamlines accounting, purchasing, payroll processing and other day-to-day tasks.
It saw sales in North America top $629 million for the 12 months through Septem-ber, up 3% from a year earlier.
Adjusted profit came in at more than $160 million, up 11% from a year ago.
The improvements on sales and profits look to be an early win for Sage North America President and Chief Executive Pascal Houillon, who took the top spot in January.
Houillon was instrumental in developing growth strategies, building the brand, shoring up the executive team and refocusing efforts on its core market of small and midsize businesses.
Sage is delivering more products online and marketing newer services with growth potential, such as payment management and marketing software.
Irvine-based Blizzard Entertainment Inc., the top maker of online video games in the world, surpassed Sage as Orange County’s biggest software company by sales a few years ago.
–Chris Casacchia
