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IDC’s 10 Predictions for CMOs for 2015

IDC PMS4colorversion 1 IDCs 10 Predictions for CMOs for 2015

By, Kathleen Schaub

What does IDC predict for tech CMOs and their teams in 2015 and beyond?

Sunrise%2B1 IDCs 10 Predictions for CMOs for 2015

Our recent report IDC FutureScape: Worldwide CMO / Customer Experience 2015 Predictionshighlights insight and perspective on long-term industry trends along with new themes that may be on the horizon. Here’s a summary.

1: 25% of High-Tech CMOs Will Be Replaced Every Year Through 2018
There are two dominant drivers behind the increased CMO turnover over the past two years. One driver centers on the cycle of new product innovations, new companies, and new CMO jobs. The second (but equal) driver centers around the required “fit” for a new CMO in the today’s tumultuous environment and the short supply of CMOs with transformational skill sets.

Guidance: Everyone in the C-Suite needs to “get” modern marketing to make the CMO successful.

2: By 2017, 25% of Marketing Organizations Will Solve Critical Skill Gaps by Deploying Centers of Excellence
The speed of marketing transformation and the increased expectations on marketing have left every marketing organization in need of updating its skill sets. In the coming years, CMOs will not only have to recruit and train talent but also create organizational structures that amplify and share best practices. Leading marketing organizations will become masters of the centers of excellence (CoE).

Guidance: Get out of your traditional silos and collaborate.

3: By 2017, 15% of B2B Companies Will Use More Than 20 Data Sources to Personalize a High-Value Customer Journey
Personalization requires a lot of data. CMOs do not suffer from a lack of data — quite the contrary. Today’s marketer has dozens, if not hundreds, of sources available. However, companies lack the time, expertise, and financial and technical resources to collect data, secure it, integrate it, deliver it, and dig through it to create actionable insights. This situation is poised for dramatic change.

Guidance: One of your new mantras must be – “do it for the data”.

4: By 2018, One in Three Marketing Organizations Will Deliver Compelling Content to All Stages of the Buyer’s Journey
CMOs reported to IDC that “building out content marketing as an organizational competency” was their #2 priority (ROI was #1). Content marketing is what companies must do when self-sufficient buyers won’t talk to sales people. While it’s easy to do content marketing; it’s hard to do content marketing well. The most progressive marketing organizations leverage marketing technology and data to develop a buyer-centric content strategy.

Guidance: Remember that it’s the buyer’s journey – not your journey for the buyer.

5: In 2015, Only One in Five Companies Will Retool to Reach LOB Buyers and Outperform Those Selling Exclusively to IT
IDC research shows that line-of-business (LOB) buyers control an average of 61% of the total IT spend. LOB buyers are harder to market to and are even more self-sufficient than technical buyers. To succeed with this new buyer, tech CMOs must move more quickly to digital, incorporate social, broaden the types of content, and enable the sales team to maximize their limited time in front of the customer.

Guidance: Worry less about how much video is in your plan and worry more about your message.

6: By 2016, 50% of Large High-Tech Marketing Organizations Will Create In-House Agencies
Advertising agencies have been slow to recognize the pervasive nature of digital. While many digital agencies exist and many have been acquired by the global holding companies, these interactive services typically managed as just another part of the portfolio of services the agency offers. Modern marketing practitioners realize that digital is now in the DNA of everything they do and are ahead of their agencies.

Guidance: Don’t wait. Take the lead.

Continue reading… 

 

IDC Reveals Worldwide Internet of Things Predictions for 2015

IDC PMS4colorversion 1 IDC Reveals Worldwide Internet of Things Predictions for 2015

Within the next five years, more than 90% of all IoT data will be hosted on service provider platforms as cloud computing reduces the complexity of supporting IoT “Data Blending”

FRAMINGHAM, Mass., December 3, 2014 – International Data Corporation (IDC) today hosted the IDC FutureScape: Worldwide Internet of Things 2015 Predictions Web conference. The presentation provided organizations with insight and perspective on long-term industry trends along with new themes that may be on the horizon. The Predictions Web conference series and accompanying IDC FutureScape reports are designed to help company leaders capitalize on emerging market opportunities and plan for future growth. An audio replay of today’s Web conference will be available this afternoon. To access the replay, please visit: http://bit.ly/IDCioTFutureScape2015.

  • ClicktoTweet:  @IDC Reveals #Worldwideinternetofthings #Predictions2015 – Register for the webcast replay here http://bit.ly/IDCioTFutureScape2015

The predictions from the IDC FutureScape for Internet of Things are:

  1. IoT and the Cloud. Within the next five years, more than 90% of all IoT data will be hosted on service provider platforms as cloud computing reduces the complexity of supporting IoT “Data Blending”.
  2. IoT and security. Within two years, 90% of all IT networks will have an IoT-based security breach, although many will be considered “inconveniences.” Chief Information Security Officers (CISOs) will be forced to adopt new IoT policies.
  3. IoT at the edge. By 2018, 40% of IoT-created data will be stored, processed, analyzed, and acted upon close to, or at the edge, of the network.
  4. IoT and network capacity. Within three years, 50% of IT networks will transition from having excess capacity to handle the additional IoT devices to being network constrained with nearly 10% of sites being overwhelmed.
  5. IoT and non-traditional infrastructure. By 2017, 90% of datacenter and enterprise systems management will rapidly adopt new business models to manage non-traditional infrastructure and BYOD device categories.
  6. IoT and vertical diversification. Today, over 50% of IoT activity is centered in manufacturing, transportation, smart city, and consumer applications, but within five years all industries will have rolled out IoT initiatives.
  7. IoT and the Smart City. Competing to build innovative and sustainable smart cities, local government will represent more than 25% of all government external spending to deploy, manage, and realize the business value of the IoT by 2018.
  8. IoT and embedded systems. By 2018, 60% of IT solutions originally developed as proprietary, closed-industry solutions will become open-sourced allowing a rush of vertical-driven IoT markets to form.
  9. IoT and wearables. Within five years, 40% of wearables will have evolved into a viable consumer mass market alternative to smartphones.
  10. IoT and millennials. By 2018, 16% of the population will be Millennials and will be accelerating IoT adoption due to their reality of living in a connected world.

“The Internet of Things will give IT managers a lot to think about,” said Vernon Turner, Senior Vice President of Research. “Enterprises will have to address every IT discipline to effectively balance the deluge of data from devices that are connected to the corporate network. In addition, IoT will drive tough organizational structure changes in companies to allow innovation to be transparent to everyone, while creating new competitive business models and products.”

The IDC FutureScape report that this Web conference is based on will be published and available within the next 24 hours. To learn more about IDC Predictions and IDC FutureScapes, please visit:www.idc.com/Predictions2015.

For additional information about these predictions or to arrange a one-on-one briefing, please contact Sarah Murray at 781-378-2674 or sarah@attunecommunications.com. Reports are available to qualified members of the media. For information on purchasing reports, contact insights@idc.com; reporters should email sarah@attunecommunications.com.

Read the original release… 

 

Cloud Computing Adoption Continues Accelerating In The Enterprise

Forbes

A recent study by IDG found that 69% of enterprises have either applications or infrastructure running in the cloud today, up 12% from 2012.  The IDG Enterprise Cloud Computing Study 2014 found that cloud investments have increased by 19% in large-scale enterprises (1,000+ employees) spending on average $3.3M MMM -0.96% a year.  In 2015, 24% of IT budgets will be allocated to cloud solutions, with the highest percentage being allocated to SaaS models.

These and other findings are from the IDG Enterprise Cloud Computing Study 2014 published earlier this month. You can download the study and methodology here (PDF, no opt in).

Additional key take-aways from the study include the following:

  • 69% of enterprises have at least one application or a portion of their computing infrastructure in the cloud, up from 57% of enterprises in 2012. 18% plan to use cloud-based applications and/or computing infrastructure via the cloud in the next 12 months, and 13% are planning to use cloud-based applications and/or computing infrastructure via the cloud within 1 to 3 years.  The graphic below compares three years of survey data:

cloud adoption business staple Cloud Computing Adoption Continues Accelerating In The Enterprise

  • Enterprise investment in cloud computing have increased 19% since 2012, with the average investment of large-scale enterprises (+1,000 employees) reaching $3.33M in 2014. Mid- and smaller scale enterprises with less than 1,000 employees spent $400K this year on cloud solutions and technologies.  The following graphic shows the spending breakouts by size of companies:

cloud spending Cloud Computing Adoption Continues Accelerating In The Enterprise

 

Continue reading… 

Year of Accelerating Innovation on 3rd Platform: IDC India

IDC PMS4colorversion 1 Year of Accelerating Innovation on 3rd Platform: IDC India

IDC envisions 2015 will be a year of accelerating innovation on the 3rd Platform

Jaideep Mehta, Managing Director, IDC South Asia says, “It has been about two years since organizations started to explore the benefits 3rd Platform technologies could unlock for them. 2015 is finally expected to be a year of widespread adoption of the 3rd Platform – Social, Mobile, Cloud and Big Data. IDC expects the businesses to move from a saturated 2nd Platform to a now thriving 3rd Platform era. Recovering markets, growing capabilities and innovating leaders will act as catalyst during this transition phase making 2015 a significantly positive year for the India IT eco-system.”

IDC revised IT spending growth in the Asia/Pacific (excluding Japan) (APeJ) region down from 8.7% to 5.8% in 2014 followed by a very modest increase to 6.0% in 2015. IT spending growth for the rest of the 2014-2018 forecast period is expected to climb upwards to 6.4% in 2017.

IDC expects the APeJ region to remain a most reliable engine for growth with multinational companies (MNCs) and Asian enterprises alike continuing to relentlessly look to Asia for future opportunities.

More insights will be revealed in a forthcoming report, “IDC Asia/Pacific (excluding Japan) ICT 2015 Top 10 Predictions”.

Drawing from the latest IDC research and internal brainstorming sessions amongst IDC’s regional and country analysts, the following are the top 10 key ICT predictions in 2015 that IDC believes will have the biggest commercial impact on the APeJ ICT market.

1) US$15 billion of government funding in 2015 will turn ICT plans into battlefields innovators

In 2015, IDC expects government ICT investments to be focused on the consolidation and streamlining of scarce ICT resources, the attainment of better management tools for effective decision making, and cyber-security.

In the next two to three years, IDC expects several regional authorities to utilize new sourcing models for transformational ICT, such as 3rd Platform technologies (i.e. cloud, Big Data/ analytics, mobility and social), continued Smart City programs, connected smart machines and intelligent sensors (i.e. edge computing), and the Internet of Things (IoT).

2) 60% of enterprises in 2015 will structure IT into core vs Lines of Business (LoB) IT

In 2015, IDC predicts that 60% of enterprises will structure their IT departments into two functional groups: Core IT and a separate LoB IT function. For larger organizations, these groups will become physically distinct entities, but for most Asia/Pacific enterprises this separation will be logical, as the two kinds of roles will be distinctly different but the reporting structure may not differ.

3) The software-defined battle lines will get defined in 2015

The hybrid cloud, or federated datacenter, is still the current architecture of choice for organizations trying to align their IT infrastructure to the demands of the business.

Looking ahead to 2015 and based on the IDC Asia/Pacific Transformative Infrastructure (TI) Index, between 20-25% of all organizations will already have adopted Software-Defined Networking (SDN), Software-Defined Storage (SDS), or Software-Defined Datacenter (SDDC) to deliver on their hybrid cloud architecture (such as automation, showback and service catalog capabilities) across the region.

4) The agile development team will be in high demand in 2015 with growth in DevOps adoptions

IDC’s IT Services Survey found that 45% of businesses are undergoing or planning to undergo application modernization projects. Their ability to scale up 3rd Platform adoption will require changes to IT operation that bring agility and overcome siloed legacy systems. This need for speed will bring the first big wave of DevOps adoption in the region and will make agile development the de facto norm.

Continue reading… 

Infographic: Cloud Computing Adoption and Opportunities in the Enterprise

 Infographic: Cloud Computing Adoption and Opportunities in the Enterprise

The 2014 IDG Enterprise Cloud Computing infographic highlights research on today’s cloud computing trends that technology decision-makers are faced with.

Learn more about the study and view sample slides here: http://bit.ly/idgecloud2014

IDG Enterprise’s 2014 Cloud Computing Survey was conducted across more than 1,600 IT and security decision-makers at a variety of industries that visit IDG Enterprise brands (CIO, Computerworld, CSO, InfoWorld, ITworld and Network World), IDG UK brands (CIO, Computerworld, Techworld), or IDG Sweden brands (CIO, Cloud Magazine, Computer, IDG, InternetWorld, TechWorld).

246109036 IDG Enterprise Cloud Computing Infographic 2014 copy Infographic: Cloud Computing Adoption and Opportunities in the Enterprise

Cloud Spending Going Skyward, IDC Predicts

Investors.com

Spending on public cloud computing services is forecast to grow at six times the rate of the overall information technology market over the next five years, IDC says. The research firm predicts that public IT cloud spending will hit $127.5 billion in 2018, up from $56.6 billion this year.

That represents a five-year compound annual growth rate of 22.8%. In 2018, public IT cloud services will account for more than half of worldwide software, server, and storage spending growth, IDC said in a report Monday.

The cloud services market is entering an “innovation stage” that will produce an explosion of new services and value creation on top of the Internet cloud, IDC said.

“Over the next four to five years, IDC expects the community of developers to triple and to create a 10-fold increase in the number of new cloud-based solutions,” IDC analyst Frank Gens said in a statement. “Many of these solutions will become more strategic than traditional IT has ever been.

“At the same time, there will be unprecedented competition and consolidation among the leading cloud providers. This combination of explosive innovation and intense competition will make the next several years a pivotal period for current and aspiring IT market leaders.”

Public IT Cloud Services Spending Will Reach $127 billion in 2018 as the Market Enters a Critical Innovation Stage

IDC PMS4colorversion 1  Public IT Cloud Services Spending Will Reach $127 billion in 2018 as the Market Enters a Critical Innovation Stage

FRAMINGHAM, Mass.– Public IT cloud services spending will reach $56.6 billion in 2014 and grow to more than $127 billion in 2018, according to a new forecast from International Data Corporation (IDC). This represents a five-year compound annual growth rate (CAGR) of 22.8%, which is about six times the rate of growth for the overall IT market. In 2018, public IT cloud services will account for more than half of worldwide software, server, and storage spending growth.

Among the factors driving public IT cloud services growth is the adoption of “cloud first” strategies by both IT vendors expanding their offerings and IT buyers implementing new solutions. More importantly, IDC believes the cloud services market is now entering an “innovation stage” that will produce an explosion of new solutions and value creation on top of the cloud. Many of these new solutions will be in industry-focused platforms with their own innovation communities, which will reshape not only how companies operate their IT, but also how they compete in their own industry. As the number of applications and use cases explode, cloud services will reach into almost every B2B and consumer services marketplace.

“Over the next four to five years, IDC expects the community of developers to triple and to create a ten-fold increase in the number of new cloud-based solutions,” said Frank Gens, Senior Vice President and Chief Analyst at IDC. “Many of these solutions will become more strategic than traditional IT has ever been. At the same time, there will be unprecedented competition and consolidation among the leading cloud providers. This combination of explosive innovation and intense competition will make the next several years a pivotal period for current and aspiring IT market leaders.”

IDC expects software as a service (SaaS) will continue to dominate public IT cloud services spending, accounting for 70% of 2014 cloud services expenditures. This is largely because most customer demand is at the application level. The second largest public IT cloud services category will be infrastructure as a service (IaaS), boosted by cloud storage’s 31% CAGR over the forecast period. Platform as a service (PaaS) and cloud storage services will be the fastest growing categories, driven by major upticks in developer cloud services adoption and big data-driven solutions, respectively.

View the original release here 

 

Chris Carmichael: Why Mobile Marketing Is Important

IDG GlobalSolutions Color Chris Carmichael: Why Mobile Marketing Is Important

We have asked the IDG Mobile Advisory Board why mobile marketing is crucial in the advertising mix. This is what Christopher Carmichael, Director of Media & Digital Marketing at Hewlett-Packard, said…

Mobility is one of HP’s core solutions within what we call the “New Style of IT” along with Cloud, Security and Big Data. Mobile is a trend that is not going to go away, and is equally important across the Consumer and Business worlds. From a marketing perspective, it’s early days still for the medium. And, as it is so often the case with a new medium or technology, people resent being interrupted with advertising at first, but gradually over time they start to accept it.

For mobile marketing, that means 3 things:

1. Some of the processes surrounding the medium are not there yet – the mechanics of planning and buying, the metrics and reporting etc.

2. Tech favours interruption rather than engagement or adding value in some way for consumers.

3. Brands need to take care not to annoy people, and to use the medium thoughtfully in a way that adds value.bit of thought can go a long way!

chris carmichael mobile quote short Chris Carmichael: Why Mobile Marketing Is Important

  • See what James Foulkes, Co-Founder of Kingpin Communications, says about mobile marketing…
  • See what Jon Hook, Head of Mobile at Mediacom International and Mediacom Beyond Advertising, says about mobility for business…

DOWNLOAD THE COMPLETE MOBILE@IDG PLAYBOOK 

 

IDC Retail Insights Arms Retailers with IoT Technology Strategy

IDC PMS4colorversion 1 300x99 IDC Retail Insights Arms Retailers with IoT Technology Strategy

IDC Retail Insights today announced the availability of a new report, “Business Strategy: Developing an IoT Technology Strategy,” (Document# RI250271), which outlines how retailers must plan now for IoT, even if IoT hasn’t made it to the top of the priorities list. According to the new report, applied IoT technology positively impacts top and bottom line business performance by improving omni-channel operations and enabling personalized and contextualized interaction with consumers. Understanding the technology landscape and defining a roadmap for IoT implementation requires uncommonly long range planning, but is rewarded with reduced long term implementation costs and total cost of ownership (TCO).

ClicktoTweet, “@IDCRetailInsights Arms #Retailers with #IoT Technology Strategy

The convergence of cloud, mobile, big data/analytics and sensors has created an opportunity for retailers to engage consumers and employees in radically new ways.  Within 5 years consumers will expect that retailers engage them with personalized and contextualized interactions. In the same time frame, if the retailer hasn’t figured out how to improve real time inventory accuracy to 98% or better, they will struggle to close the online or click and collect sale.

This report provides the following advice for retailers:

  • A definition of IoT technology
  • A thorough examination of the technology landscape for IoT (for retailers)
  • Specific steps to developing a IoT technology strategy
  • Guidance for driving retail IoT programs forward

Leslie Hand, research director, IDC Retail Insights, reports that, “Retailers can improve operations, reduce risk and loss, and wow the consumer with IoT enabled capabilities. Now is the time to establish a strategy and develop a roadmap for IoT. A well thought out plan will guide the reduced cost of ownership of IoT technologies, and enable continued agility and innovation. ”

In another new report announced today, Business Strategy: Understanding the IoT Use Cases For Retail, many of the most common use cases that are being implemented today are discussed including product tracking / traceability, interactive consumer engagement and operations, mobile payments, asset management and fleet and yard management.

The IoT journey, rich in opportunities, is also full of challenges – the biggest of which is enabling tactical applications sometimes in isolation of a plan for an architecture designed for IoT. IoT requires an event oriented paradigm, which includes listening, bi-directional messaging, information distribution, and communications over a variety of networks. The architecture for IoT stretches the limits of retail legacy networks.  When evaluating IoT technologies, IDC Retail Insights recommends retailers gain an understanding of the technology landscape for the variety of technologies and the related intersection points as soon as possible

The new report outlines specific steps to developing a IoT technology strategy and emphasizes that retailers interested in engaging the omni-channel consumer with consistent personalized and increasingly contextualized physical and digital interactions, should consider how to build an architecture for IoT that will continue to adapt to consumer interaction patterns and needs. Meanwhile, technology vendors and consultants should help retail enterprises define and understand the IoT opportunities and the path forward.

To learn more about a related IoT report announced today, please visit”Business Strategy: IoT Use Cases for Retail,”

For additional information about this report or to arrange a one-on-one briefing with Leslie Hand please contact Sarah Murray at 781-378-2674 orsarah@attunecommunications.com. Reports are available to qualified members of the media. For information on purchasing reports, contact insights@idc.com; reporters should email sarah@attunecommunications.com.

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Why Microsoft Azure could have the last laugh in the cloud wars

CITEworld

Venture capitalist Brad Feld recently wrote an interesting post predicting the end of Amazon’s dominance of the cloud computing market, and concluded, “it’s suddenly a good time to be Microsoft or Google in the cloud computing wars.”

I’d go one step farther. Using Feld’s arguments, I’d say that Microsoft is in the driver’s seat.

First, the price war. Microsoft and Google are on approximately equal ground when it comes to cutting prices — both have highly profitable core businesses that they can use to subsidize a price war in cloud infrastructure, even to the point of sustaining losses for a while to gain market share. Amazon does not.

Second, the quality argument. Like Feld, we’ve also pointed out that there are niche cloud providers that do a better job than the big guys at providing infrastructure-as-a-service for specific verticals, but when you move all the way up the stack to full software-as-a-service applications, Microsoft has an edge among the big three with Office 365. Google has been making inroads into smaller businesses with Google Apps for almost a decade now, Microsoft remains the standard in the biggest and most profitable business customers — as this recent investigation from Dan Frommer at Quartz showed, only one company in the Fortune 50 uses Google Apps. (That company happens to be Google itself.)

The third argument, support, is mostly a wash. While Amazon’s support may be terrible (I have no evidence of this, but I’m taking Feld’s word for it), Microsoft and Google and their respective ecosystem partners do a decent job of supporting customers on their stacks. This hasn’t always been the case — Google used to treat support as an expensive afterthought — but in the case of Google Apps, at least, the company and its partners have stepped up significantly.

But then comes the fourth argument. Feld points out that once companies get to $200,000 per month of cloud-infrastructure spend, it’s actually significantly cheaper to build their own data centers.

Microsoft is the only one of the big three players with an on-premise offering — Windows Server and the rest of the Microsoft infrastructure family. Maybe the exact break-even point will change as the cloud price wars continue, but Microsoft has the most pieces customers would need to move from all-cloud to a hybrid or on-premise solution. Or, for that matter, for existing on-premise customers to begin experimenting moving some workloads to the cloud.

There’s one more point favoring Microsoft. Google’s core business is selling online advertising. That business makes up about 90% of Google’s revenue, and it has enviably high operating margins — around 30%, based on Google’s 2011 financial report. (I picked 2011 because that was before Google bought Motorola Mobility, which changed the margin structure.)

It’s unclear how the Google Cloud Engine helps that business. Are customers using Google’s cloud somehow more likely to advertise with Google? I don’t see it. Are Google advertising customers demanding to run other workloads on Google technology? I don’t see it.

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