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IDG Enterprise’s 2013 Consumerization of IT in the Enterprise Research Details Main Stream Adoption of Mobile Devices, the Increasing Use of Business Apps and Cloud and Security Challenges
FRAMINGHAM, MA–(Marketwired – Apr 15, 2013) - IDG Enterprise – the media company comprising Computerworld, InfoWorld, Network World, CIO, DEMO, CSO, CIO Executive Council, ITworld, CFOworld and CITEworld — releases the results from the 2013 Consumerization of IT in the Enterprise (CITE) research, highlighting the adoption of mobile devices for business purposes, the growing use of apps and the cloud and the security concerns this adoption places on an organization.
Main Stream Adoption of Mobile Devices While most organizations are dealing with CITE in a reactive way, they are embracing the use of personal mobile devices. Currently, 60% of organizations support the use of personally owned smart phones and that will remain stable over the next 12-18 months. However, the support of personally owned laptops (57%) and tablets (51%) will swap places in the next 12-18 months with 50% and 58% supported respectively. Overall, organizations have increased their policies in allowing employees to use personal devices to work over the past year.
If I hear “SaaS” or “cloud” in the news one more time, I’m going to scream! Cloud computing has become a hugely overused buzzword over the past few years, although probably for good reason. Cloud companies have taken the technology world by storm, and have seen growth rates unlike any other sector in software. So why not study their adoption of marketing technologies to see if they are changing the way they go to market just as much as they are changing the tech world?
Software as a service (SaaS) had such an immediate impact because it allowed companies to use software over the Internet. Instead of large, upfront capital investments in hardware and software, companies could simply pay a monthly “lease” and use software via the Internet. Gmail is a great example of a SaaS technology. In the list of the largest SaaS companies, you might also recognize companies like Salesforce.com, VMware, and ExactTarget. Taking a closer look at the 17 largest SaaS companies can give us some interesting insight into adoption trends when it comes to marketing technologies.
FRAMINGHAM, Mass.– According to a new forecast from International Data Corporation (IDC), worldwide spending on hosted private cloud (HPC) services – an operational model for deploying computing infrastructure services of many types via a cloud model – will be more than $24 billion in 2016. HPC spending will experience a compound annual growth rate of more than 50% over the 2012-2016 forecast period as companies and IT providers look to cloud in its various forms as a means to transform and make more efficient and scalable the “how” of what they provide to their customers. Along the way, Hosted Private Cloud services will become the backbone of a new set of infrastructure services, transforming existing provider models for IT outsourcing, hosting infrastructure services, and other key IT industries.
At the highest level, there are two types of deployment models for cloud services: public and private. Public cloud services are designed for a market and are open to a largely unrestricted universe of potential users who share the services. Private cloud services are designed for a single enterprise and have user-defined and controlled restrictions on access and level of resource dedication.
Hosted private cloud is a composite view of two private cloud services deployment models, both of which offer customers and providers very different choices about resource dedication, tenancy cost, user access/control of the computing asset, and real and perceived security structures in place. The two HPC deployment models are:
China looks a good bet to be the engine of growth again in 2013, while U.S. will see improving PC market and more software growth
FRAMINGHAM, MA – According to the new International Data Corporation (IDC) Worldwide Black Book Query Tool just released (Document # 239304), IT spending remained broadly strong throughout a difficult end to 2012 as business confidence waned in the shadow of the “fiscal cliff’,” economic growth declined in much of Europe, and economies in Asia struggled to cope with reduced exports. In spite of these headwinds, worldwide IT spending recorded annual growth of 5.9 percent in 2012 in constant currency terms, keeping pace with the 5.8 percent growth recorded in 2011. Total IT spending on hardware, software and IT services reached $2 trillion, while ICT spending (including telecom services) increased by 4.8 percent to $3.6 trillion.
Doesn’t anyone want to talk with the Chief Information Officer?
PricewaterhouseCoopers, the big consulting firm, on Tuesday published its fifth annual survey of “Digital IQ,” or how well executives understand the capabilities of modern technology. It also tries to identify what it will take to realize those capabilities (often, not surprisingly, with the kind of services a big consulting firm can provide).
The key technologies in this year’s survey included mobile, social media, big data and cloud computing. The goal, the report said, is not just to employ these emerging technologies to automate or streamline processes, but to use them in innovating faster and better, and to create more valuable products and services. Making this happen, the authors said, requires open and effective communication at the highest ranks.
“We asked business leaders and information technology professors how strong the relationship was between the chief information officers and others at the top of the organization. Then we had them rate it, on a scale of one to five,” said Chris Curran, one of the study’s authors. “We were looking for the characteristics of companies that had a 4.5 or more.”
Of 1,100 companies surveyed, with both information technology and nontechnical executives surveyed in equal measure, just 13 percent had that strong relationship. At least you can’t accuse these respondents of grade inflation.
The greatest top-level disconnect, Mr. Curran said, appears to be between corporate chief information officers and chief marketing officers. “Which is weird, because there is so much energy around big data and analytics,” he said. “It’s creating a conflict.”
A number of companies have received new funding to drive development and products to market focused on data and analytics for the CMO. Key strategies behind the investments include a focus on ‘Big Data’, the use of predictive analytics to drive marketing efforts, cloud based offerings, and the marketing holy grail of being able to measure the results of every marketing and advertising campaign. A closer look at one of the key players in the space illustrate how all these elements are coming together.
Important Details: Last year (see Insights 13 December 2012, Money Flowing to Customer Insights, Analytics and Big Data) we highlighted a list of firms that had recently received VC money to develop offerings in the data space. One of those was Lattice Engines, a company founded in 2006 which attracted $20 million in funding on top of an earlier funding round of $15 million. The company had already shown success as it built an impressive client list, and is making headway into B2B markets where most of the earlier action among CMOs had been with consumer product companies.
A key driver behind the growth of firms vying for the CMO dollar lies in what digital advertising, social media and web based marketing can do for a corporation. First and foremost, the marketer gets direct and real-time feedback from customers as to whether a campaign is really working. With other forms of advertising and marketing that was not often the case, and the ROI of a dollar spent was never clear. With the shifting of advertising and marketing expenditures to the web and digital marketing, more activity can now be measured. In turn, because more activity can now be measured, marketers want everything to be measured, which drives the developments we are now seeing in the markets. Some industry reports have pointed out that marketing may be responsible for more technology spend than IT in the next few years.
Lattice Engines is a great example of a company going after this opportunity where four key components of data management platforms are necessary in order for a solution to be effective for CMOs and their marketing organizations — technology, client data, third party data, and analytics.
Implications: Increasingly, today’s solution is a SaaS/cloud based service and not an enterprise software offering which is key these days in order to get directly in front of the using organization (marketing in this case) and avoid the dealings of an IT organization. Until recently, solutions for the CMO have had a large consulting component but today’s products have to have a technology platform. Lattice Engines started out as a consultancy like many others and found its way to building a technology, having a platform in order to be able to handle the data, build an engine and offer a service.
Another component is the ability (and client willingness) to use the client’s internal data. This is often a combination of customer data, prospect and CRM data as well as other islands of marketing data floating around inside an organization. It is often ugly, never kept updated, and not usually matched or reconciled. Once an organization starts pulling all these pieces together, it is amazing to see how much data exists; sometimes this is labeled as part of the Big Data phenomenon. Until now, little attention has been paid to this internal data, and the technology has not been available to do much with it. A great example of this is shown in what EMI Music set out to do last year (see Insights 25 July 2012, Market Research Meets Big Data and Social Media). Some companies have begun looking hard at their internal data via solutions from providers like Scout Analytics or nPario, but for the most part, they have not really begun mining the gold in their internal data. More offerings in marketing automation will unearth more value in the internal data.
Matching external third party data match up to the client’s internal data is another hallmark of marketing solutions. Given the amount of web-based transaction data, the number of database offerings being generated from ‘web exhaust’ and the desire of information publishers to monetize their data assets, there is plenty to choose from. On the B2C side, one might find consumer data from Neustar Information, Acxiom or Epsilon, all providing unique attributes of customer behavior. Additionally, the third party data involves a robust set of cookies and tracking data used to identify interests and activities.
Finally, there is the analytic engine. Offerings in this category are not simply about providing a new set of targets for advertising or direct marketing. It is about how good a predictor the service can be. In the case of Lattice Engines, they are providing the marketer some real direction for his/her sales teams as to what opportunities will close quickest. In some other products, it may be about which advertising media will yield the highest return. Each supplier will have their own version of a predictive analytic engine to help drive results which can now be measured by marketers.
In all, we expect 2013 to be quite active, with more marketing money being made available to find the best solutions and plenty of well-funded suppliers stepping in to help.
March 5, 2013 • Santa Clara Convention Center • Santa Clara, California [Register now] March 13, 2013 • John B. Hynes Convention Center • Boston, Massachusetts [Register now]
As the ICT industry continues its shift to the 3rd Platform, challenges, competition and opportunities abound. This new technology platform, leading growth and innovation in both traditional and nascent market segments, is built on mobile devices and apps, cloud services, mobile broadband networks, big data analytics and social technologies. By 2020, when the ICT industry generates $5 trillion in spending, 40% of the industry’s revenues and – incredibly – 90% of its growth will be driven by 3rd Platform technologies that, today, represent just 22% of ICT spending. Countless market players are wisely catching on to the 3rd Platform story now, to advance their competitive edge.
Boiled down, the 3rd Platform story illustrates the idea that the foundational Four Pillars of mobile, cloud, social, and Big Data are connected to each other, forming this new business innovation platform. While 3rd Platform battles and the role of key buyers are shifting, an increasingly strategic area of competition and growth is in the high-value mash-ups of those technologies into “3rd Platform solutions,” many of which involve new business and consumer services that are transforming whole industries. Think social mobile commerce, smarter cities, mHealth/eHealth, mobile/cloud payments, and more.
Register now and join IDC’s leading analysts at Directions 2013 as they address these and other shifting market trends, as well as highlight the innovators leading the charge as the 3rd Platform continues to transform and mature.
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.”
Bubbling around and through the advertising ecosystem is what some have called “Big Data.” Is it demo data? Location data? Or data from that little mouseover you just did with the graphic appended to this post? – It seems like it’s any piece of data we can think of, no?
Time for some ecosystem input!
With previous ideas on the definitions for programmatic buying, programmatic selling and real-time bidding, we reached out to a group of executives who get their hands dirty with data everyday and asked them:
“What is ‘Big Data’?”