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CIO Tech Poll: Economic Outlook Reveals IT Budget Growth, Increased Spending on New IT Projects & IT Talent Concerns

 CIO Tech Poll: Economic Outlook Reveals IT Budget Growth, Increased Spending on New IT Projects & IT Talent Concerns

Increased Focus on External Customer Continues in Upcoming Year

Framingham, Mass. – May 27, 2015 – IDG’s CIO—the executive-level IT media brand providing insight into business technology leadership— reveals the CIO Tech Poll: IT Economic Outlook results for May 2015. The research indicates that half of organizations (50%) are increasing IT budgets within the next year, and overall IT budgets are increasing by 6.4%. As IT leaders look at their organizational needs, a majority (61%) will increase spending on new projects in the coming year. Edge technology spending, including mobile, social, CRM, M-commerce and marketing automation, continues to trend upward in the next one to three years.

Plans For New Project Spending Climbs Sharply
New or discretionary IT budget allocations have soared in the past year. In 2014, 47% of IT leaders said they would increase spending on new projects. This has jumped to 61% this year, which is the highest percentage since the question was first asked in 2009 (25%). Thirty-nine percent of new project spending will be on projects that help increase top line revenue. With one-third of IT budgets being spent on edge technologies, like the SMAC stack (Social, Mobile, Analytics, Cloud), organizations are looking to invest in new companies. Forty-six percent of CIOs surveyed plan to increase spending with new technology companies.

“Emerging technologies are the key to enterprise innovation. IT leaders are spending time learning about these new technologies, and the vendors creating them, and are allocating budget for technologies like the SMAC stack,” said Adam Dennison, SVP and publisher, CIO. “Enterprises are looking for the best solution and are not worried that those solutions are coming from ‘straight-to-the-enterprise start-ups.’ Emerging tech vendors should take this cue to showcase how their agile and innovative technology solutions can help businesses succeed.”

Increased Focus Continues on External Customer
External customers are a big focus for new IT projects. Nearly three-quarters (73%) believe IT is interacting with external customers more than two years ago while 37% will focus their new IT spending on external customer interaction, relationship or experience-related investments, up from 33% in 2013. Looking at the budget allocation, CIOs currently allocate 68% of their budget for core technologies like infrastructure, network, storage and 32% to newer “edge” technologies. However, in the next one to three years, the budget allocation for core technologies drops to 55% and the budget for edge technologies increases to 45% of their budgets.

IT Remains Involved in Technology Purchases Funded Outside of IT
Over three-quarters of IT leaders surveyed (76%) said they have a policy or process to ensure IT remains involved in tech purchases to reaffirm there is the right level of support and oversight from IT to keep problems at bay. When technology purchases are funded by other departments or functions, 58%say IT’s involvement varies depending on the individual department’s experience and expertise as well as on the scope of the project. In fact, 50% of IT leaders said line of business (LOB) counterparts identified their specific business need and came to IT for recommendations on technology and solution providers. For 21% of the CIOs we surveyed IT identifies the business need and makes recommendations regarding technology solutions or providers while 16% say LOB identifies the need and solution/provider then brings to IT for vetting. Just three percent say IT is not typically involved unless a problem arises and only one percent believe IT is not involved even if there’s a problem.

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FreeWheel Video Monetization Report: Q4 2014 Report


Digital video’s impressive growth this quarter was headlined by the crown jewels of the TV industry; first-run shows and live events. With considerable growth in both the digital monetization of the Broadcast networks’ Fall programming and live streaming, there is ample evidence to indicate that the TV ecosystem is expanding and becoming screen-agnostic.

Key Highlights:


  • Live viewing grew 297% year-over-year, driven by strong growth in Sports streaming and News simulcasts.
  • First-run broadcast shows attracted far more viewers this quarter than the year prior, as seen by a 67% increase in digital video ad views.
  • Over-the top (OTT) streaming devices, overwhelmingly used for long-form and live viewing, overtook tablets, accounting for 8% of all video ad views.
  • Authenticated viewing grew 591% year-over-year, as 56% of all video ad views on long-form and live content now come from behind authentication walls.

Screen Shot 2015 03 09 at 1.08.06 PM FreeWheel Video Monetization Report: Q4 2014 Report

Download the full Video Monetization Report Q4 2014

With Numerous Product Launches, India Tablet Market Grows Steadily In Q4 2014: IDC

IDC PMS4colorversion 1 With Numerous Product Launches, India Tablet Market Grows Steadily In Q4 2014: IDC

After witnessing strong growth in the festive third quarter, the India tablet market posted further growth in Q4 2014, ending the year on a positive note. According to International Data Corporation (IDC), the India tablet market reported shipments of 0.96 million units in Q4, a quarter-on-quarter gain of 3.6%. Strong performance by local vendors as well as increasing interest among PC OEMs in the tablets space contributed to the expansion of the market over Q3. The share of PC OEMs in the market has more than doubled from one year ago. Despite the gains in the second half of the year, shipments for all of 2014 declined -15% year over year at nearly 3.5 million units.

Click To Tweet: With Numerous Product Launches, India Tablet Market Grows Steadily In Q4 2014: IDC

“The market saw a correction after the introduction of BIS regulation in July 2013. Unbranded tablets were wiped off from the market, thereby contracting the bubble of growth witnessed in 1H 2013 and hence resulting in year-on-year decline in growth,” said Tanvi Mann, Market Analyst, Client Devices IDC India.

Form Factor Highlights: 7 inch tablets in the less than $150 price band populated the market and will continue to do so in the foreseeable future. While Android still has majority of the pie, we do see vendors exploring the 8-9 inch segment.

“Consumers are driving the wave of adoption of low-cost tablets as a preferred mobility solution. We are also witnessing a higher inclination of consumers towards online buying platforms and vendors are keeping up with the trend,” said Kiran Kumar, Research Manager, Client Devices IDC India.

 With Numerous Product Launches, India Tablet Market Grows Steadily In Q4 2014: IDC Figure 1

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Digital Advertising and Marketing: $160B in 2020

Myers Media Business

Total digital advertising and marketing investments are forecast to increase to $160 billion in 2020 from $36 billion in 2012, according to a new report issued by Jack Myers Media Business Report. With average annual compounded increases of 25.4% between 2013 and 2015, and 17.7% annual increases between 2016 and 2020, every media and marketing category is positioned to benefit from digital growth, except yellow pages directories. Digital advertising and marketing growth is forecast by Myers at 25.9% in 2013, compounding 25.3% growth in 2012. While legacy media categories such as network television and magazines are positioned for significant increases in revenues that enable them to compensate for declines in traditional ad revenues, the primary beneficiaries from digital expansion are social marketing, online originated video content, mobile and apps advertising, and interactive TV advertising. Myers’ search marketing forecasts have been published separately.

Click here for Jack Myers Video Report on Marketers Shifting Billions in Promotional Spending to Digital. The full Myers forecast covering 52 legacy and digital media and marketing categories from 2010 to 2020 is available to subscribers at www.jackmyers.com.

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IDC Forecasts Hard Disk Drive Industry Will Return to Growth After a Difficult 2011

IDC PMS4colorversion  300x99 IDC Forecasts Hard Disk Drive Industry Will Return to Growth After a Difficult 2011

IDC Press Release 

FRAMINGHAM, Mass.– In the wake of two massive and tragic natural disasters, worldwide hard disk drive (HDD) unit shipments experienced a year-over-year decline of 4.5% in 2011. Although efforts to clean and repair flooded factory buildings and equipment will take most of the first half of 2012, HDD and HDD component production is expected to return to preflood output levels in the second half of this year. According to a new forecast from International Data Corporation (IDC), the HDD industry will record year-over-year unit shipment growth of 7.7% in 2012 and a compound annual growth rate (CAGR) of 9.6% for the 2011-2016 forecast period.

For the full press release click here

Where’s the Growth in Marketing? Follow the BRIC Road – Ten Emerging Markets Will Account for Half of Ad Spending Growth in Next Three Years

Ad Age 

Where is the ad market going? Consider this: Total ad spending in emerging markets is expected to pass that in the U.S. in 2014. And hotspots, including BRIC and others, are moving up the ranks.

China, the biggest of BRIC, surged past Germany to become the third-largest ad market in 2010, according to Publicis Groupe’s ZenithOptimedia. China major-media ad spending is on track to overtake No. 2 Japan in 2015.

For more information and charts click here

Worldwide External Disk Storage Systems Post Double Digit Growth for Sixth Consecutive Quarter, According to IDC

IDC2 e1322687983514 Worldwide External Disk Storage Systems Post Double Digit Growth for Sixth Consecutive Quarter, According to IDC




IDC Press Release 

FRAMINGHAM, Mass. – Worldwide external disk storage systems factory revenues posted year-over-year growth of 10.8%, totaling just under $5.8 billion, in the third quarter of 2011 (3Q11), according to the International Data Corporation (IDCWorldwide Quarterly Disk Storage Systems Tracker. For the quarter, the total disk storage systems market grew to $7.6 billion in revenues, representing 8.5% growth from the prior year’s third quarter. Total disk storage systems capacity shipped reach 5,429 petabytes, growing 30.7% year over year.

“The third quarter of 2011 was a strong quarter for Enterprise Storage, posting solid growth in factory revenue and signaling a return to ‘business as normal’,” said Liz Conner, senior research analyst, Storage Systems. “The trend of increased spending during the economic recovery period, specifically on high-end systems, has started to draw to a close. As IDC predicted, year-over-year growth has started to slow and is now approaching pre-economic crisis levels.”

For the full release click here

Mobile Advertising Exploding


According to the Q3 S.M.A.R.T.™ report, an in-depth look at the mobile advertising landscape, brands are spending more, and trying a variety of things to drive campaign success. Local market targeting grew 50% quarter-over-quarter, and certain “post-click” options like the ability to watch video, grew 78% quarter-over-quarter. In addition, 6 different verticals grew over 140% year-over-year.

Some other highlights from the report include:

Click here to find out… 

Worldwide Mobile Phone Market Experiences Slower Growth as Smartphone Purchases Soften in the Third Quarter, According to IDC

IDC2 e1322687983514 300x96 Worldwide Mobile Phone Market Experiences Slower Growth as Smartphone Purchases Soften in the Third Quarter, According to IDC



IDC Press Release

Worldwide Mobile Phone Market Experiences Slower Growth as Smartphone Purchases Soften in the Third Quarter, According to IDC

FRAMINGHAM, Mass. The worldwide mobile phone market grew 12.8% year over year in the third quarter of 2011 (3Q11), as smartphone growth declined in key mature markets. According to the International Data Corporation (IDCWorldwide Mobile Phone Tracker, vendors shipped 393.7 million units in 3Q11 compared to 348.9 million units in the third quarter of 2010. However, the 12.8% growth was higher than IDC’s forecast of 9.3% for the quarter and stronger than the 9.8% growth in 2Q11.

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IDG Enterprise’s 2011 Role & Influence of the Technology Decision Maker Survey Details

Involvement in IT Purchase Process and Information Sources Used
IDG Enterprise news release

IDG Enterprise—the media company comprising CFOworld, CIO, CIO Executive Council, Computerworld, CSO, DEMO, InfoWorld, ITworld and Network World—releases the results from the annual 2011 Role & Influence of the Technology Decision Maker survey, examining the involvement of IT decision-makers at each stage of the IT purchase process, IT vendor/customer relationship, and the information sources these professionals rely upon during the purchase process.

The study, completed by more than 1,400 IT and business respondents, from a range of industries, shows that while the IT organization overall leads the purchase process, different levels within IT lead at different stages. The study also shows that IT is much more involved in every stage of the IT purchase process than their business management colleagues. At enterprise companies, the decision making is more segmented, and the number of stakeholders increases, with an average of 11.5 people influencing major IT purchases.

“IT marketers recognize that traditional IT decisions have been elevated to business decisions as transformative technologies are increasingly being applied to generate business opportunity and revenue growth.  This development has increasingly engaged business leaders within the purchase process, but survey results demonstrate a distributed decision making process with IT organizations leading each stage,” said Bob Melk, SVP/Group Publisher, IDG Enterprise.  “The Role & Influence of the Technology Decision Maker results indicate that the still growing complexity of enterprise IT architectures requires savvy marketers to target their communications at all levels within the IT organization, with perspective oriented messaging.”

The study, now in its 7th year, provides new data on the relationship between IT vendors and their customers, including critical attributes of customer-selected strategic partners and the effect of familiarity/existing relationships on the sales cycle. Approximately one-third of vendors currently doing business with a company are considered strategic partners. To be considered a strategic partner, IT respondents look for vendors that have the ability to understand business with the top three attributes being: understand goals and objectives (75%); customer service and response time (75%); and knowledge of business/vertical industry (71%). The study found that on average the length of the sales cycle, given familiarity with a vendor, decreased by 3 months.

The study also finds that the top information sources used throughout the purchase process have remained consistent, with Technology Publications (75%), Technology Content Sites (74%), White Papers (69%), Peers (69%), and Webcasts/Webinars (60%) as the top five. Online Communities/Discussion Forums showed the largest shift with an increase from 39% in 2010, to 46% in 2011.

Key findings include:

  • IT is significantly more involved in every stage of the IT purchase process than business management (chart 1).
  • IT executives bookend the IT purchase process by determining the business need and authorizing/ approving investments.
  • IT management controls the middle stages of the purchase process: determining requirements, evaluating solutions, and recommending and selecting vendors.
  • Top resources used throughout the purchase process remain consistent: Technology Publications (75%), Technology Content Sites (74%), Peers (69%) and White Papers (69%).
  • IT purchase cycle is reduced by 3 months when organizations are working with vendors they already have a relationship with.
  • Organizations use many vendors; however only one-third are considered strategic partners (chart 2).

“Two challenges vendors face are reducing the sales cycle and being considered a strategic partner, which enhances future discussions and purchases,” said Michael Friedenberg, president and CEO, IDG Enterprise.  “A consistent message from this survey is that sales cycles are shorter for familiar vendors and vendors need to understand business goals and objectives in order to gain a strategic position. IDG Enterprise’s marketing and promotional services foster familiarity between IT decision-makers and IT vendors with targeted, consistent programs well suited to their prospects pain-points.”

To receive the complete study results contact Bob Melk at bmelk@idgenterprise.com.

About IDG Enterprise

IDG Enterprise, an International Data Group (IDG) company, brings together unique editorial brands (CFOworld, CIO, CIO Executive Council, Computerworld, CSO, DEMO, InfoWorld, ITworld and Network World) to serve the information needs of our technology and security-focused audiences.  As a digital-centric media company we serve our reader and advertiser audiences with award-winning content and community, driving conversation and conversion, across our entire portfolio of awarding-winning, websites, events, magazines, products and services. In addition, the CIO Executive Council, a peer advisory service, brings together the nation’s top CIOs, as well as provides community and leadership development tools for their staffs.

Company information is available at www.idgenterprise.com.