Welcome!

SAP HANA Cloud Authors: Pat Romanski, Liz McMillan, Shelly Palmer, Kevin Benedict, Sematext Blog

News Feed Item

IDC Predicts 2013 Will Be Dominated by Mobile and Cloud Developments as the IT Industry Shifts Into Full-Blown Competition on the 3rd Platform

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.

About IDC

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.

More Stories By Business Wire

Copyright © 2009 Business Wire. All rights reserved. Republication or redistribution of Business Wire content is expressly prohibited without the prior written consent of Business Wire. Business Wire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

@ThingsExpo Stories
The Internet of Things will challenge the status quo of how IT and development organizations operate. Or will it? Certainly the fog layer of IoT requires special insights about data ontology, security and transactional integrity. But the developmental challenges are the same: People, Process and Platform. In his session at @ThingsExpo, Craig Sproule, CEO of Metavine, demonstrated how to move beyond today's coding paradigm and shared the must-have mindsets for removing complexity from the develo...
The 19th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Digital Transformation, Microservices and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportuni...
Basho Technologies has announced the latest release of Basho Riak TS, version 1.3. Riak TS is an enterprise-grade NoSQL database optimized for Internet of Things (IoT). The open source version enables developers to download the software for free and use it in production as well as make contributions to the code and develop applications around Riak TS. Enhancements to Riak TS make it quick, easy and cost-effective to spin up an instance to test new ideas and build IoT applications. In addition to...
Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with the 19th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world and ThingsExpo Silicon Valley Call for Papers is now open.
IoT is rapidly changing the way enterprises are using data to improve business decision-making. In order to derive business value, organizations must unlock insights from the data gathered and then act on these. In their session at @ThingsExpo, Eric Hoffman, Vice President at EastBanc Technologies, and Peter Shashkin, Head of Development Department at EastBanc Technologies, discussed how one organization leveraged IoT, cloud technology and data analysis to improve customer experiences and effi...
"We've discovered that after shows 80% if leads that people get, 80% of the conversations end up on the show floor, meaning people forget about it, people forget who they talk to, people forget that there are actual business opportunities to be had here so we try to help out and keep the conversations going," explained Jeff Mesnik, Founder and President of ContentMX, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
With 15% of enterprises adopting a hybrid IT strategy, you need to set a plan to integrate hybrid cloud throughout your infrastructure. In his session at 18th Cloud Expo, Steven Dreher, Director of Solutions Architecture at Green House Data, discussed how to plan for shifting resource requirements, overcome challenges, and implement hybrid IT alongside your existing data center assets. Highlights included anticipating workload, cost and resource calculations, integrating services on both sides...
Manufacturers are embracing the Industrial Internet the same way consumers are leveraging Fitbits – to improve overall health and wellness. Both can provide consistent measurement, visibility, and suggest performance improvements customized to help reach goals. Fitbit users can view real-time data and make adjustments to increase their activity. In his session at @ThingsExpo, Mark Bernardo Professional Services Leader, Americas, at GE Digital, discussed how leveraging the Industrial Internet a...
Big Data engines are powering a lot of service businesses right now. Data is collected from users from wearable technologies, web behaviors, purchase behavior as well as several arbitrary data points we’d never think of. The demand for faster and bigger engines to crunch and serve up the data to services is growing exponentially. You see a LOT of correlation between “Cloud” and “Big Data” but on Big Data and “Hybrid,” where hybrid hosting is the sanest approach to the Big Data Infrastructure pro...
"My role is working with customers, helping them go through this digital transformation. I spend a lot of time talking to banks, big industries, manufacturers working through how they are integrating and transforming their IT platforms and moving them forward," explained William Morrish, General Manager Product Sales at Interoute, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
A critical component of any IoT project is what to do with all the data being generated. This data needs to be captured, processed, structured, and stored in a way to facilitate different kinds of queries. Traditional data warehouse and analytical systems are mature technologies that can be used to handle certain kinds of queries, but they are not always well suited to many problems, particularly when there is a need for real-time insights.
IoT generates lots of temporal data. But how do you unlock its value? You need to discover patterns that are repeatable in vast quantities of data, understand their meaning, and implement scalable monitoring across multiple data streams in order to monetize the discoveries and insights. Motif discovery and deep learning platforms are emerging to visualize sensor data, to search for patterns and to build application that can monitor real time streams efficiently. In his session at @ThingsExpo, ...
The best-practices for building IoT applications with Go Code that attendees can use to build their own IoT applications. In his session at @ThingsExpo, Indraneel Mitra, Senior Solutions Architect & Technology Evangelist at Cognizant, provided valuable information and resources for both novice and experienced developers on how to get started with IoT and Golang in a day. He also provided information on how to use Intel Arduino Kit, Go Robotics API and AWS IoT stack to build an application tha...
You think you know what’s in your data. But do you? Most organizations are now aware of the business intelligence represented by their data. Data science stands to take this to a level you never thought of – literally. The techniques of data science, when used with the capabilities of Big Data technologies, can make connections you had not yet imagined, helping you discover new insights and ask new questions of your data. In his session at @ThingsExpo, Sarbjit Sarkaria, data science team lead ...
Extracting business value from Internet of Things (IoT) data doesn’t happen overnight. There are several requirements that must be satisfied, including IoT device enablement, data analysis, real-time detection of complex events and automated orchestration of actions. Unfortunately, too many companies fall short in achieving their business goals by implementing incomplete solutions or not focusing on tangible use cases. In his general session at @ThingsExpo, Dave McCarthy, Director of Products...
Amazon has gradually rolled out parts of its IoT offerings in the last year, but these are just the tip of the iceberg. In addition to optimizing their back-end AWS offerings, Amazon is laying the ground work to be a major force in IoT – especially in the connected home and office. Amazon is extending its reach by building on its dominant Cloud IoT platform, its Dash Button strategy, recently announced Replenishment Services, the Echo/Alexa voice recognition control platform, the 6-7 strategic...
WebRTC is bringing significant change to the communications landscape that will bridge the worlds of web and telephony, making the Internet the new standard for communications. Cloud9 took the road less traveled and used WebRTC to create a downloadable enterprise-grade communications platform that is changing the communication dynamic in the financial sector. In his session at @ThingsExpo, Leo Papadopoulos, CTO of Cloud9, discussed the importance of WebRTC and how it enables companies to focus...
Verizon Communications Inc. (NYSE, Nasdaq: VZ) and Yahoo! Inc. (Nasdaq: YHOO) have entered into a definitive agreement under which Verizon will acquire Yahoo's operating business for approximately $4.83 billion in cash, subject to customary closing adjustments. Yahoo informs, connects and entertains a global audience of more than 1 billion monthly active users** -- including 600 million monthly active mobile users*** through its search, communications and digital content products. Yahoo also co...
"There's a growing demand from users for things to be faster. When you think about all the transactions or interactions users will have with your product and everything that is between those transactions and interactions - what drives us at Catchpoint Systems is the idea to measure that and to analyze it," explained Leo Vasiliou, Director of Web Performance Engineering at Catchpoint Systems, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York Ci...
SYS-CON Events announced today that LeaseWeb USA, a cloud Infrastructure-as-a-Service (IaaS) provider, 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. LeaseWeb is one of the world's largest hosting brands. The company helps customers define, develop and deploy IT infrastructure tailored to their exact business needs, by combining various kinds cloud solutions.