Welcome!

@CloudExpo Authors: Yeshim Deniz, Carmen Gonzalez, Pat Romanski, Zakia Bouachraoui, Elizabeth White

Related Topics: @CloudExpo, Mobile IoT, Agile Computing

@CloudExpo: News Item

IDC Predicts Cloud Services to Create a New Mainstream for the IT Industry

Cloud services, mobile computing, and social networking to mature and coalesce in 2011

Transformation has been a recurring theme in the annual International Data Corporation (IDC) Predictions over the past several years. During this time, a wave of disruptive technologies has emerged and evolved, forged by the pressures of a global economic recession. In 2011, and certainly beyond, IDC expects these technologies - cloud services, mobile computing, and social networking - to mature and coalesce into a new mainstream platform for both the IT industry and the industries it serves.

"In 2011, we expect to see these transformative technologies make the critical transition from early adopter status to early mainstream adoption," said Frank Gens, senior vice president and chief analyst at IDC. "As a result, we'll see the IT industry revolving more and more around the build-out and adoption of this next dominant platform, characterized by mobility, cloud-based application and service delivery, and value-generating overlays of social business and pervasive analytics. In addition to creating new markets and opportunities, this restructuring will overthrow nearly every assumption about who the industry's leaders will be and how they establish and maintain leadership."

The platform transition will be fueled by another solid year of recovery in IT spending. IDC forecasts worldwide IT spending will be $1.6 trillion in 2011, an increase of 5.7% over 2010. While hardware spending will remain strong (7.8% year-over-year growth), the industry will depend to a larger extent on improvements in software spending (5.3% growth) and related project-based services spending (3.5% growth), as well as gains in outsourcing (4% growth). Worldwide IT spending will also benefit from the accelerated recovery in emerging markets, which will generate more than half of all net new IT spending worldwide in 2011.

Spending on public IT cloud services will grow at more than five times the rate of the IT industry in 2011, up 30% from 2010, as organizations move a wider range of business applications into the cloud. Small and medium-sized business cloud use will surge in 2011, with adoption of some cloud resources topping 33% among U.S. midsize firms by year's end. Meanwhile, the more nascent private cloud model will continue to evolve as infrastructure, software, and service providers collaborate on a range of new offerings and solutions. Meanwhile, the vendor battle for two cloud "power positions" will be joined to determine on whose cloud platform will solutions be deployed, and who will provide coherent IT management across multiple public clouds, customers' private clouds, and their legacy IT environments.

Mobile computing - on a variety of devices and through a range of new applications - will continue to explode in 2011, forming another critical plank in the new industry platform. IDC expects shipments of app-capable, non-PC mobile devices (smartphones, media tablets, etc.) will outnumber PC shipments within the next 18 months - and there will be no looking back. While vendors with a PC heritage will scramble to secure their position in this rapidly expanding market, another battle will be taking place for dominance in the mobile apps market. The level of activity in this market will be staggering, with IDC expecting nearly 25 billion mobile apps to be downloaded in 2011, up from just over 10 billion in 2010. Over time, the still-emerging apps ecosystems promise to fundamentally restructure the channels for all digital content and services to consumers.

Meanwhile, social business software has gained significant momentum in the enterprise over the past 18 months and this trend is expected to continue with IDC forecasting a compound annual growth rate of 38% through 2014. In a sure sign that social business has hit the mainstream, IDC expects 2011 to be a year of consolidation as the major software vendors acquire social software providers to jump-start or increase their social business footprint. Meanwhile, the use of social platforms by small and medium-sized businesses will accelerate, with more than 40% of SMBs using social networks for promotional purposes by the year's end.

As the new mainstream IT platform coalesces in the months ahead, IDC expects it to lay a foundation for IT vendors to support, and profit from, a variety of "intelligent industry" transformations. In retail, mobility and social networking are rapidly changing consumers' shopping experience as they bring their smartphones into the store for on-site price comparisons and product recommendations. In financial services, mobility and the cloud are bringing mobile banking and payments closer to reality. In the healthcare industry, IDC expects 14% of adult Americans to use a mobile health application in 2011.

More Stories By Liz McMillan

News Desk compiles and publishes breaking news stories, press releases and latest news articles as they happen.

Comments (0)

Share your thoughts on this story.

Add your comment
You must be signed in to add a comment. Sign-in | Register

In accordance with our Comment Policy, we encourage comments that are on topic, relevant and to-the-point. We will remove comments that include profanity, personal attacks, racial slurs, threats of violence, or other inappropriate material that violates our Terms and Conditions, and will block users who make repeated violations. We ask all readers to expect diversity of opinion and to treat one another with dignity and respect.


CloudEXPO Stories
Blockchain has shifted from hype to reality across many industries including Financial Services, Supply Chain, Retail, Healthcare and Government. While traditional tech and crypto organizations are generally male dominated, women have embraced blockchain technology from its inception. This is no more evident than at companies where women occupy many of the blockchain roles and leadership positions. Join this panel to hear three women in blockchain share their experience and their POV on the future of blockchain.
Concerns about security, downtime and latency, budgets, and general unfamiliarity with cloud technologies continue to create hesitation for many organizations that truly need to be developing a cloud strategy. Hybrid cloud solutions are helping to elevate those concerns by enabling the combination or orchestration of two or more platforms, including on-premise infrastructure, private clouds and/or third-party, public cloud services. This gives organizations more comfort to begin their digital transformation without a complete overhaul of their existing infrastructure - serving as a sort of "missing link" for transition to cloud utilization.
Cloud Storage 2.0 has brought many innovations, including the availability of cloud storage services that are less expensive and much faster than previous generations of cloud storage. Cloud Storage 2.0 has also delivered new and faster methods for migrating your premises storage environment to the cloud and the concept of multi-cloud. This session will provide technical details on Cloud Storage 2.0 and the methods used to efficiently migrate from premises-to-cloud storage. This session will also discuss best practices for implementing multi-cloud environments.
In very short order, the term "Blockchain" has lost an incredible amount of meaning. With too many jumping on the bandwagon, the market is inundated with projects and use cases that miss the real potential of the technology. We have to begin removing Blockchain from the conversation and ground ourselves in the motivating principles of the technology itself; whether it is consumer privacy, data ownership, trust or even participation in the global economy, the world is faced with serious problems that this technology could ultimately help us in at least partially solving. But if we do not unpack what is real and what is not, we can lose sight of the potential. In this presentation, John Bates-who leads data science, machine learning and AI in the Adobe Analytics business unit-will present his 4-prong model of the general areas where Blockchain can have a real impact and the specific use...
FinTech is a disruptive innovation that denotes the adoption of technologies that have changed how traditional financial services work. While FinTech is now embedded deeply into the financial services ecosystem, the rise of digital age has paved way to FinTech 2.0 - which is rolling out innovative solutions through emerging technologies at a disruptive pace while maintaining the tenets of security and compliances. Blockchain as a technology has started seeing pilot adoption in FinTech around trade settlements, fraud detection and would need to sort out few of the technology challenges primarily around transaction time, interoperability with existing systems before being fully adopted into mainstream systems. While private blockchain adoption by Banks have taken shape, the challenge of real time transaction settlement, preventing double spend attacks need to be addressed.