These and other insights were shared today by IDC during the webinar, IDC FutureScape: CIO Agenda Leading the 3rd Platform business and technology transformation through 2015 and beyond. IDC sees the shift to a service paradigm in IT accelerating, along with a greater reliance on partners, clouds and global sourcing through 2017. Based on how often analytics was mentioned in the webinar, it’s clear IDC is getting a large number of client queries in this topic area. Demand for analytics continues to skyrocket according to Joseph Pucciarelli, Group Vice President of IT Executive Programs Research.
The research firm also sees active cognition from smart analytics replacing passive analysis and interrogation, and the proliferation of analytics applications that are more contextual than today.
IDC also is predicting that by 2017, each person will have 24 digital IDs and five or more Internet-connected devices. The research team emphasized that these devices will require more extensive platforms than exist today for supporting the wide array of services these devices will deliver. The proliferation of devices will lead to IT departments embracing a more flexible cost model that has the potential to reduce fixed costs and permit multiple sourcing arbitrage.
IDC’s methodology included interviews with 209 CIOs globally. IDC mentioned that a full report of the results will be available later in the week. I will update this post with the link once it is available.
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.”
The Business Times
NEW data released by IDC on smartphone sales last week shows that there’s a new kid on the block. According to the research agency’s Worldwide Quarterly Mobile Phone Tracker, in the third quarter of this year, Chinese phonemaker Xiaomi zoomed to the No 3 slot in the global list of top five smartphone makers in the world, behind Samsung (No 1) and Apple (No 2). The Chinese company sold 17.3 million units in the quarter for a 5.3 per cent market, pipping Lenovo (5.2 per cent) and LG (5.1 per cent) to the third spot.
It’s true that, as IDC notes, Xiaomi benefited from its focus on China and adjacent markets. This, coupled with innovative marketing, brought triple-digit year-on-year growth. But, as IDC notes again, it remains to be seen how quickly the company can move beyond its home territories to drive volumes higher.
Was this a fluke, one-off phenomenon?
No, expect more non-traditional brands in the Top 5. This is because the next billion smartphone users are not going to come from established and wealthy markets such as those in North America, Europe, Japan and pockets of Asia such as Australia, Singapore and Hong Kong. They will come from emerging markets such as India, China, Indonesia and Brazil. These markets are characterised by less brand loyalty and extreme price sensitivity.
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
New practices need new language to describe them. When IDC’s smart, experienced, forward-looking, clients and special guests got together at our recent Marketing Leadership board meeting in New York, I jotted down these terms they used as particularly useful for describing their challenges and ideas.
- Product selfie: A type of content where it’s all about the product and nothing about the buyer/user (Guidance: Keep to a minimum – you know why.)
- Snackable content: Short-form, easy-to-consume, desirable, content (Guidance: As attention spans get shorter, you’ll need more of this.)
- Brand-as-a-Service: Offering beneficial, free, and minimally-self-serving, customer service that extends your brand promise. Examples: USAA offering car-buying services, Pantene offering tips for creating celebrity hair-styles during an Academy Awards social media campaign; (Guidance: Powerful! Find yours.)
- Budget slush fund: Holding back 5-15% of your budget so that you can respond with agility to unexpected opportunities such as a social media fire or an idea from a regional marketer that is worth testing. (Guidance: Great strategy to you get beyond the same-old, same-old, but you’ll need a seeking and vetting process to make sure this doesn’t go to waste)
- Off-domain: Use of non-owned capabilities such as content syndication, outside point-of-view, 3rd-party voices; curated content, and community/social/partner media or events (Guidance: This fast growing practice will require a different mind-set than the traditional “owned and ads first” Start with some pilots now and plan to expand.)
The Columbus Dispatch
SAN FRANCISCO — The personal-computer market is still ailing, despite showing some signs of recovery in several key markets.
PC sales in the third quarter rebounded in the U.S. and western Europe. But shipments continued to fall in China, Japan and other Asian countries, where more people with smartphones and tablets apparently see little reason to buy laptop and desktop machines.
The contrasts emerged in two separate reports released Wednesday by research firms International Data Corp. and Gartner Inc.
IDC estimates worldwide PC shipments during the three months ended in September totaled 78.5 million units, a 2 percent decline from last year. Gartner pegged sales at 79.4 million units, a decrease of less than 1 percent.
This marks the ninth time in the past 10 quarters that worldwide PC shipments have dropped, a slump driven by the growing popularity of mobile devices for work, entertainment, information and communications.
Have a look at your smartphone apps. Notice anything peculiar about the ads? In the majority of cases, the only things they’re advertising are … other apps.
Estimates vary, but analysts say a significant majority of ads in mobile apps simply promote other apps. Karsten Weide, an analyst with IDC, pegs the total at between 60% and 75%; mobile ad company Fiksu says it’s between 50% and 85%, depending on the time of year.
What does all this mean for the future of the app business? If most of the advertising dollars are coming from within the industry, is this a bubble about to burst?
Quite the opposite, industry experts say — the numbers show app makers and advertisers simply haven’t yet figured out how to tap this promising business.
Mobile apps overtook desktop browsers earlier this year as the dominant means by which Americans access the Internet.
According to International Data Corporation (IDC), the Networking market in India witnessed growth due to huge investments in 2Q2014 Q-o-Q as well as Y-oY. According to IDC’s APeJ Quarterly Switch and Router tracker, the Ethernet Switch market stood strong at USD 128.4 million in terms of customer revenue during Q2 2014 growing 19.2% Q-o-Q and 29.1% Y-o-Y. The router market, however, witnessed sharp decline from previous quarter that had a spike due to various reasons, by 17.4%. However, the market garnered a total of USD 68.4 M, a 12.3% growth Y-o-Y. Cisco retained its dominance in the Switch & Router market winning deals primarily in the telecom vertical. 2Q 2014 was also attributed to the various announcements and framing of tenders for the government projects that are due to be executed in the coming quarters. Further growth is expected in the coming quarters as well. Large to midsized deals were also visible in the government vertical. SMB segment also witnessed deals in various verticals specially the tier II & tier III banks. Manufacturing, utility and banking were the fastest growing verticals in 2Q and are expected to continue with their spending pattern in the coming quarters as well.