|By Business Wire||
|November 29, 2012 12:00 PM EST||
For the past several years, the IT industry's transition to the 3rd Platform, built on mobile computing, cloud services, social networking, and big data analytics technologies, has dominated the annual Predictions from International Data Corporation (IDC). For 2013, IDC predicts the transition to the 3rd Platform will shift into high gear as the industry accelerates past the exploration phase and into full-blown, high stakes competition.
"The IT industry as a whole is moving toward the mobile/social/cloud/big data world of the 3rd Platform much more quickly than many realize: from 2013 through 2020, these technologies will drive around 90% of all the growth in the IT market," said Frank Gens, Senior Vice President and Chief Analyst at IDC. "Companies that are not putting 80% or more of their competitive energy into this new market will be trapped in the legacy portion of the market, growing even slower than global GDP."
For 2013, IDC predicts worldwide IT spending will exceed $2.1 trillion, up 5.7% from 2012. The biggest category driving this growth will once again be smart mobile devices (smartphones, tablets, eReaders), which will grow by almost 20% in 2013 and generate nearly 57% of the industry's overall growth. Excluding mobile devices, the IT industry's growth is forecast to be just 2.9%. Among the other major IT categories, worldwide software and services spending are forecast to grow 6% and 4%, respectively. The PC and server markets are also expected to return to modest positive growth in 2013, aided in part by more favorable year-over-year comparisons.
On a regional basis, IT spending in emerging markets will grow by 8.8% in 2013 to more than $730 billion. While this figure represents 34% of all IT spending worldwide, it represents more than 50% of all new growth in the IT marketplace. The BRIC countries (Brazil, Russia, India, and China) will continue to dominate IT spending among the emerging markets with China capturing more than a quarter of this spending. Equally important, developments in emerging markets will start to reshape key global markets because of their oversized share of industry growth. As an example, IDC expects China's ZTE to compete for a position among the world's top 3 smartphone makers based on its phenomenal growth rate and strong position in emerging markets.
As noted above, mobile devices will continue to be a significant driver of worldwide IT spending. But the anywhere, anytime access offered by these devices is also changing consumer behavior as more and more people turn to their smartphones and tablets as their primary means of going online. This trend will be further accelerated by the popular embrace of "mini tablets" (sub-8" tablets) in 2013. IDC predicts this segment will account for as much as 60% of the 170 million tablets shipped in 2013.
In the battle for primacy over the mobile operating system market, 2013 will be a critical year for Microsoft and Research In Motion. Both vendors need to capture much greater interest from mobile app developers to expand the number of apps that run on devices powered by their respective operating systems. Failure to do so by the end of 2013 will likely be the beginning of their demise in this market. Meanwhile, hardware vendors like Samsung will explore their OS options, including Linux/Tizen, as a hedge against the growing market dominance of Android.
Cloud will also be a powerful contributor to industry developments in 2013 with the merger & acquisition (M&A) activity of the past 20 months actually accelerating. IDC expects to see over $25 billion in acquisitions over the next 20 months as cloud services become the centerpiece of more and more vendors' offerings. As packaged application providers like IBM, Microsoft, and Oracle become software as a service (SaaS) providers themselves, they will increasingly battle with SaaS pure plays like Salesforce.com and Workday for leadership in some of the major application software markets.
Elsewhere in the cloud, IDC expects 2013 will see an explosion in industry PaaS (public platform as a service) offerings as the market moves up the software stack and "horizontal" PaaS becomes commoditized by platforms built on open source-based infrastructure. In industry PaaS, cloud-based shared services environments are being tailored to the needs of a specific industry, while additional industry-focused solution developers are developing and deploying a range of industry-targeted value-added solutions and services on these platforms. Examples of emerging industry PaaS include: NYSE Capital Markets Community Platform in financial services; numerous health information exchanges in healthcare; and Johnson Controls' Panoptix App Marketplace in smart energy.
The trend toward industry-specific solutions will be further driven by the increased participation of line of business (LoB) executives in IT investment decisions. In 2013, nearly 60% of new IT investments will directly involve LoB execs (with them as the decision maker in 25% of the investments). As a result, IDC expects that businesses will spend $65 billion on industry-specific solutions in 2013, with a rapidly increasing number of them leveraging 3rd Platform technologies. This figure will grow to nearly $100 billion in the next 3 years as businesses use these technologies and solutions to create new products and services, and redefine existing customer relationships.
All of the trends outlined above – increased use of mobile devices and apps and the migration toward SaaS and industry PaaS – will also drive profound changes in the datacenters and IT organizations supporting these 3rd Platform solutions. Here, converged systems (combining server, storage and network systems together with the software to manage them) and software-defined networking will transition from market hype to market reality in 2013 with enterprise datacenter and cloud-provider use cases coming to market and getting deployed. Both nascent datacenter technologies will show explosive growth in 2013, reaching a remarkable 30-35% penetration in the datacenter by 2016.
In the social software market, enterprise software vendors will continue to step up their app transformations with social technology acquisitions, accelerating the buying spree that began in 2011. Look for Microsoft to beef up its CRM/Customer Experience offerings by acquiring a community management platform like GetSatisfaction or Lithium. Similarly, Oracle can be expected to abandon its attempt at creating an enterprise social network and acquire a more robust tool with an existing customer base. Meanwhile, businesses will struggle with enterprise social network sprawl in the transition from experimentation to integration.
Elsewhere, "Bring Your Own Identity" (BYOID) will bring consumerization to enterprise security in 2013, as security software vendors and IT shops start using Facebook, Google, and other social and consumer cloud identity services as a core part of their identity management environment, giving them the ability to extend identity management from their enterprise out to wider circles of customers, partners, and prospects. It will become even clearer that "consumerization" is not just about end user devices (smartphones, tablets); but increasingly about many of the core parts of enterprise IT.
Finally, big data will continue on its growth path, with investment in technologies and services growing to nearly $10 billion in 2013. But the focus of this investment will see an important shift in 2013, as more VC funding and M&A goes toward the upper half of the big data stack: analytics and discovery tools, and analytic applications. IDC expects predictive analytics will be a particular hot spot in the months to come.
IDC's predictions for 2013 are presented in full detail in the report, IDC Predictions 2013: Competing on the 3rd Platform (Doc #238044). In addition, Frank Gens will lead a group discussion of this year's predictions in an IDC Web conference scheduled for Thursday, November 29 at 12:00 pm U.S. Eastern time. For more information, or to register for this free event, please go to: http://www.idc.com/getdoc.jsp?containerId=IDC_P26737.
International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. IDC helps IT professionals, business executives, and the investment community to make fact-based decisions on technology purchases and business strategy. More than 1,000 IDC analysts provide global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries. For more than 48 years, IDC has provided strategic insights to help our clients achieve their key business objectives. IDC is a subsidiary of IDG, the world's leading technology media, research, and events company. You can learn more about IDC by visiting www.idc.com.
All product and company names may be trademarks or registered trademarks of their respective holders.
Data is an unusual currency; it is not restricted by the same transactional limitations as money or people. In fact, the more that you leverage your data across multiple business use cases, the more valuable it becomes to the organization. And the same can be said about the organization’s analytics. In his session at 19th Cloud Expo, Bill Schmarzo, CTO for the Big Data Practice at EMC, will introduce a methodology for capturing, enriching and sharing data (and analytics) across the organizati...
Sep. 24, 2016 09:45 PM EDT Reads: 1,583
DevOps at Cloud Expo, taking place Nov 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 19th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long dev...
Sep. 24, 2016 09:30 PM EDT Reads: 3,316
I'm a lonely sensor. I spend all day telling the world how I'm feeling, but none of the other sensors seem to care. I want to be connected. I want to build relationships with other sensors to be more useful for my human. I want my human to understand that when my friends next door are too hot for a while, I'll soon be flaming. And when all my friends go outside without me, I may be left behind. Don't just log my data; use the relationship graph. In his session at @ThingsExpo, Ryan Boyd, Engi...
Sep. 24, 2016 09:15 PM EDT Reads: 1,186
The vision of a connected smart home is becoming reality with the application of integrated wireless technologies in devices and appliances. The use of standardized and TCP/IP networked wireless technologies in line-powered and battery operated sensors and controls has led to the adoption of radios in the 2.4GHz band, including Wi-Fi, BT/BLE and 802.15.4 applied ZigBee and Thread. This is driving the need for robust wireless coexistence for multiple radios to ensure throughput performance and th...
Sep. 24, 2016 08:30 PM EDT Reads: 1,430
The Internet of Things can drive efficiency for airlines and airports. In their session at @ThingsExpo, Shyam Varan Nath, Principal Architect with GE, and Sudip Majumder, senior director of development at Oracle, will discuss the technical details of the connected airline baggage and related social media solutions. These IoT applications will enhance travelers' journey experience and drive efficiency for the airlines and the airports. The session will include a working demo and a technical d...
Sep. 24, 2016 08:00 PM EDT Reads: 1,641
SYS-CON Events announced today the Enterprise IoT Bootcamp, being held November 1-2, 2016, in conjunction with 19th Cloud Expo | @ThingsExpo at the Santa Clara Convention Center in Santa Clara, CA. Combined with real-world scenarios and use cases, the Enterprise IoT Bootcamp is not just based on presentations but with hands-on demos and detailed walkthroughs. We will introduce you to a variety of real world use cases prototyped using Arduino, Raspberry Pi, BeagleBone, Spark, and Intel Edison. Y...
Sep. 24, 2016 07:00 PM EDT Reads: 2,769
Fact is, enterprises have significant legacy voice infrastructure that’s costly to replace with pure IP solutions. How can we bring this analog infrastructure into our shiny new cloud applications? There are proven methods to bind both legacy voice applications and traditional PSTN audio into cloud-based applications and services at a carrier scale. Some of the most successful implementations leverage WebRTC, WebSockets, SIP and other open source technologies. In his session at @ThingsExpo, Da...
Sep. 24, 2016 06:45 PM EDT Reads: 1,463
If you’re responsible for an application that depends on the data or functionality of various IoT endpoints – either sensors or devices – your brand reputation depends on the security, reliability, and compliance of its many integrated parts. If your application fails to deliver the expected business results, your customers and partners won't care if that failure stems from the code you developed or from a component that you integrated. What can you do to ensure that the endpoints work as expect...
Sep. 24, 2016 04:30 PM EDT Reads: 1,498
Information technology is an industry that has always experienced change, and the dramatic change sweeping across the industry today could not be truthfully described as the first time we've seen such widespread change impacting customer investments. However, the rate of the change, and the potential outcomes from today's digital transformation has the distinct potential to separate the industry into two camps: Organizations that see the change coming, embrace it, and successful leverage it; and...
Sep. 24, 2016 03:00 PM EDT Reads: 1,019
SYS-CON Events announced today that China Unicom will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. China United Network Communications Group Co. Ltd ("China Unicom") was officially established in 2009 on the basis of the merger of former China Netcom and former China Unicom. China Unicom mainly operates a full range of telecommunications services including mobile broadband (GSM, WCDMA, LTE F...
Sep. 24, 2016 01:30 PM EDT Reads: 1,671
Enterprise IT has been in the era of Hybrid Cloud for some time now. But it seems most conversations about Hybrid are focused on integrating AWS, Microsoft Azure, or Google ECM into existing on-premises systems. Where is all the Private Cloud? What do technology providers need to do to make their offerings more compelling? How should enterprise IT executives and buyers define their focus, needs, and roadmap, and communicate that clearly to the providers?
Sep. 24, 2016 01:00 PM EDT Reads: 1,478
The Transparent Cloud-computing Consortium (abbreviation: T-Cloud Consortium) will conduct research activities into changes in the computing model as a result of collaboration between "device" and "cloud" and the creation of new value and markets through organic data processing High speed and high quality networks, and dramatic improvements in computer processing capabilities, have greatly changed the nature of applications and made the storing and processing of data on the network commonplace.
Sep. 24, 2016 12:00 PM EDT Reads: 742
SYS-CON Events announced today that SoftLayer, an IBM Company, has been named “Gold Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York, New York. SoftLayer, an IBM Company, provides cloud infrastructure as a service from a growing number of data centers and network points of presence around the world. SoftLayer’s customers range from Web startups to global enterprises.
Sep. 24, 2016 12:00 PM EDT Reads: 753
Digital innovation is the next big wave of business transformation based on digital technologies of which IoT and Big Data are key components, For example: Business boundary innovation is a challenge to excavate third-party business value using IoT and BigData, like Nest Business structure innovation may propose re-building business structure from scratch, as Uber does in the taxicab industry The social model innovation is also a big challenge to the new social architecture with the design fr...
Sep. 24, 2016 11:45 AM EDT Reads: 1,023
SYS-CON Events announced today that Pulzze Systems will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Pulzze Systems, Inc. provides infrastructure products for the Internet of Things to enable any connected device and system to carry out matched operations without programming. For more information, visit http://www.pulzzesystems.com.
Sep. 24, 2016 10:45 AM EDT Reads: 1,718
IoT is fundamentally transforming the auto industry, turning the vehicle into a hub for connected services, including safety, infotainment and usage-based insurance. Auto manufacturers – and businesses across all verticals – have built an entire ecosystem around the Connected Car, creating new customer touch points and revenue streams. In his session at @ThingsExpo, Macario Namie, Head of IoT Strategy at Cisco Jasper, will share real-world examples of how IoT transforms the car from a static p...
Sep. 24, 2016 10:30 AM EDT Reads: 1,470
Big Data has been changing the world. IoT fuels the further transformation recently. How are Big Data and IoT related? In his session at @BigDataExpo, Tony Shan, a renowned visionary and thought leader, will explore the interplay of Big Data and IoT. He will anatomize Big Data and IoT separately in terms of what, which, why, where, when, who, how and how much. He will then analyze the relationship between IoT and Big Data, specifically the drilldown of how the 4Vs of Big Data (Volume, Variety,...
Sep. 24, 2016 10:00 AM EDT Reads: 904
The many IoT deployments around the world are busy integrating smart devices and sensors into their enterprise IT infrastructures. Yet all of this technology – and there are an amazing number of choices – is of no use without the software to gather, communicate, and analyze the new data flows. Without software, there is no IT. In this power panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists will look at the protocols that communicate data and the emerging data analy...
Sep. 24, 2016 09:00 AM EDT Reads: 1,520
Video experiences should be unique and exciting! But that doesn’t mean you need to patch all the pieces yourself. Users demand rich and engaging experiences and new ways to connect with you. But creating robust video applications at scale can be complicated, time-consuming and expensive. In his session at @ThingsExpo, Zohar Babin, Vice President of Platform, Ecosystem and Community at Kaltura, will discuss how VPaaS enables you to move fast, creating scalable video experiences that reach your...
Sep. 24, 2016 09:00 AM EDT Reads: 758
WebRTC adoption has generated a wave of creative uses of communications and collaboration through websites, sales apps, customer care and business applications. As WebRTC has become more mainstream it has evolved to use cases beyond the original peer-to-peer case, which has led to a repeating requirement for interoperability with existing infrastructures. In his session at @ThingsExpo, Graham Holt, Executive Vice President of Daitan Group, will cover implementation examples that have enabled ea...
Sep. 24, 2016 07:00 AM EDT Reads: 1,470