Click here to close now.

Welcome!

Cloud Expo Authors: Cloud Best Practices Network, Elizabeth White, Pat Romanski, Carmen Gonzalez, Dana Gardner

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.

@CloudExpo Stories
SYS-CON Events announced today that Vitria Technology, Inc. will exhibit at SYS-CON’s @ThingsExpo, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Vitria will showcase the company’s new IoT Analytics Platform through live demonstrations at booth #330. Vitria’s IoT Analytics Platform, fully integrated and powered by an operational intelligence engine, enables customers to rapidly build and operationalize advanced analytics to deliver timely business outcomes ...
The Internet of Things (IoT) promises to evolve the way the world does business; however, understanding how to apply it to your company can be a mystery. Most people struggle with understanding the potential business uses or tend to get caught up in the technology, resulting in solutions that fail to meet even minimum business goals. In his session at @ThingsExpo, Jesse Shiah, CEO / President / Co-Founder of AgilePoint Inc., showed what is needed to leverage the IoT to transform your business. ...
Business and IT leaders today need better application delivery capabilities to support critical new innovation. But how often do you hear objections to improving application delivery like, “I can harden it against attack, but not on this timeline”; “I can make it better, but it will cost more”; “I can deliver faster, but not with these specs”; or “I can stay strong on cost control, but quality will suffer”? In the new application economy, these tradeoffs are no longer acceptable. Customers will ...
SYS-CON Events announced today that Dyn, the worldwide leader in Internet Performance, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Dyn is a cloud-based Internet Performance company. Dyn helps companies monitor, control, and optimize online infrastructure for an exceptional end-user experience. Through a world-class network and unrivaled, objective intelligence into Internet conditions, Dyn ensures...
DevOps is about increasing efficiency, but nothing is more inefficient than building the same application twice. However, this is a routine occurrence with enterprise applications that need both a rich desktop web interface and strong mobile support. With recent technological advances from Isomorphic Software and others, it is now feasible to create a rich desktop and tuned mobile experience with a single codebase, without compromising performance or usability.
Advanced Persistent Threats (APTs) are increasing at an unprecedented rate. The threat landscape of today is drastically different than just a few years ago. Attacks are much more organized and sophisticated. They are harder to detect and even harder to anticipate. In the foreseeable future it's going to get a whole lot harder. Everything you know today will change. Keeping up with this changing landscape is already a daunting task. Your organization needs to use the latest tools, methods and ex...
The Workspace-as-a-Service (WaaS) market will grow to $6.4B by 2018. In his session at 16th Cloud Expo, Seth Bostock, CEO of IndependenceIT, will begin by walking the audience through the evolution of Workspace as-a-Service, where it is now vs. where it going. To look beyond the desktop we must understand exactly what WaaS is, who the users are, and where it is going in the future. IT departments, ISVs and service providers must look to workflow and automation capabilities to adapt to growing ...
As organizations shift toward IT-as-a-service models, the need for managing and protecting data residing across physical, virtual, and now cloud environments grows with it. CommVault can ensure protection &E-Discovery of your data – whether in a private cloud, a Service Provider delivered public cloud, or a hybrid cloud environment – across the heterogeneous enterprise. In his session at 16th Cloud Expo, Randy De Meno, Chief Technologist - Windows Products and Microsoft Partnerships, will disc...
SYS-CON Events announced today Arista Networks will exhibit at SYS-CON's DevOps Summit 2015 New York, which will take place June 9-11, 2015, at the Javits Center in New York City, NY. Arista Networks was founded to deliver software-driven cloud networking solutions for large data center and computing environments. Arista’s award-winning 10/40/100GbE switches redefine scalability, robustness, and price-performance, with over 3,000 customers and more than three million cloud networking ports depl...
The speed of software changes in growing and large scale rapid-paced DevOps environments presents a challenge for continuous testing. Many organizations struggle to get this right. Practices that work for small scale continuous testing may not be sufficient as the requirements grow. In his session at DevOps Summit, Marc Hornbeek, Sr. Solutions Architect of DevOps continuous test solutions at Spirent Communications, will explain the best practices of continuous testing at high scale, which is r...
HP and Aruba Networks on Monday announced a definitive agreement for HP to acquire Aruba, a provider of next-generation network access solutions for the mobile enterprise, for $24.67 per share in cash. The equity value of the transaction is approximately $3.0 billion, and net of cash and debt approximately $2.7 billion. Both companies' boards of directors have approved the deal. "Enterprises are facing a mobile-first world and are looking for solutions that help them transition legacy investme...
Containers and microservices have become topics of intense interest throughout the cloud developer and enterprise IT communities. Accordingly, attendees at the upcoming 16th Cloud Expo at the Javits Center in New York June 9-11 will find fresh new content in a new track called PaaS | Containers & Microservices Containers are not being considered for the first time by the cloud community, but a current era of re-consideration has pushed them to the top of the cloud agenda. With the launch ...
Skytap Inc., has appointed David Frost as vice president of professional services. David joins Skytap from Deloitte Consulting where he served as Managing Director leading SAP, Cloud, and Advanced Technology Services. At Skytap, David will head the company's professional services organization, and spearhead a new consulting practice that will guide IT organizations through the adoption of DevOps best practices. David's appointment comes on the heels of Skytap's recent $35 million Series D fundin...
Disruptive macro trends in technology are impacting and dramatically changing the "art of the possible" relative to supply chain management practices through the innovative use of IoT, cloud, machine learning and Big Data to enable connected ecosystems of engagement. Enterprise informatics can now move beyond point solutions that merely monitor the past and implement integrated enterprise fabrics that enable end-to-end supply chain visibility to improve customer service delivery and optimize sup...
The speed of product development has increased massively in the past 10 years. At the same time our formal secure development and SDL methodologies have fallen behind. This forces product developers to choose between rapid release times and security. In his session at DevOps Summit, Michael Murray, Director of Cyber Security Consulting and Assessment at GE Healthcare, examined the problems and presented some solutions for moving security into the DevOps lifecycle to ensure that we get fast AND ...
Docker is becoming very popular--we are seeing every major private and public cloud vendor racing to adopt it. It promises portability and interoperability, and is quickly becoming the currency of the Cloud. In his session at DevOps Summit, Bart Copeland, CEO of ActiveState, discussed why Docker is so important to the future of the cloud, but will also take a step back and show that Docker is actually only one piece of the puzzle. Copeland will outline the bigger picture of where Docker fits a...
Even as cloud and managed services grow increasingly central to business strategy and performance, challenges remain. The biggest sticking point for companies seeking to capitalize on the cloud is data security. Keeping data safe is an issue in any computing environment, and it has been a focus since the earliest days of the cloud revolution. Understandably so: a lot can go wrong when you allow valuable information to live outside the firewall. Recent revelations about government snooping, along...
Thanks to Docker, it becomes very easy to leverage containers to build, ship, and run any Linux application on any kind of infrastructure. Docker is particularly helpful for microservice architectures because their successful implementation relies on a fast, efficient deployment mechanism – which is precisely one of the features of Docker. Microservice architectures are therefore becoming more popular, and are increasingly seen as an interesting option even for smaller projects, instead of bein...
The explosion of connected devices / sensors is creating an ever-expanding set of new and valuable data. In parallel the emerging capability of Big Data technologies to store, access, analyze, and react to this data is producing changes in business models under the umbrella of the Internet of Things (IoT). In particular within the Insurance industry, IoT appears positioned to enable deep changes by altering relationships between insurers, distributors, and the insured. In his session at @Things...
Security can create serious friction for DevOps processes. We've come up with an approach to alleviate the friction and provide security value to DevOps teams. In her session at DevOps Summit, Shannon Lietz, Senior Manager of DevSecOps at Intuit, will discuss how DevSecOps got started and how it has evolved. Shannon Lietz has over two decades of experience pursuing next generation security solutions. She is currently the DevSecOps Leader for Intuit where she is responsible for setting and driv...