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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.

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In 2015, Technology Shifts Accelerate and China Rules, IDC Predicts

NYT

In the year-end predictions game, most technology forecasts tend to be either blue sky or boring, flights of imagination or a firm grasp of the obvious.

For the last several years, IDC has published prediction reports that generally avoid the pitfalls of the genre, and offer a useful framework for thinking about the trajectory of trends in technology. The technology research firm’s predictions for 2015, published on Tuesday, come in a 17-page report that is rich in numbers and analysis.

Beyond the detail, a couple of larger themes stand out. First is China. Most of the reporting and commentary recently on the Chinese economy has been about its slowing growth and challenges.

“In information technology, it’s just the opposite,” Frank Gens, IDC’s chief analyst, said in an interview. “China has a roaring domestic market in technology.”

In 2015, IDC estimates that nearly 500 million smartphones will be sold in China, three times the number sold in the United States and about one third of global sales. Roughly 85 percent of the smartphones sold in China will be made by its domestic producers like Lenovo, Xiaomi, Huawei, ZTE and Coolpad.

The rising prowess of China’s homegrown smartphone makers will make it tougher on outsiders, as Samsung’s slowing growth and profits recently reflect.

More than 680 million people in China will be online next year, or 2.5 times the number in the United States. And the China numbers are poised to grow further, helped by its national initiative, the Broadband China Project, intended to give 95 percent of the country’s urban population access to high-speed broadband networks.

In all, China’s spending on information and communications technology will be more than $465 billion in 2015, a growth rate of 11 percent. The expansion of the China tech market will account for 43 percent of tech-sector growth worldwide.

Another theme in the IDC report is the quickening pace of the move from older technologies to new ones. Overall spending on technology and telecommunications, IDC estimates, will rise by a modest 3.8 percent in 2015. Yet the top-line numbers mask the trends beneath. IDC predicts there will be growth of 13 percent in what the research firm calls “3rd platform” technologies (cloud, mobile, social and big data). By contrast, older technologies will face a no-growth “near recession,” according to IDC, and “will shift fully into recession” by the second half of next year.

IDC’s 3rd platform is similar to what Gartner, another big research firm, has called a “nexus of forces” sweeping through the industry. (Gartner’s ingredients are virtually the same as IDC’s with slightly different labels — social interaction, mobility, cloud and information.) The 1st platform, in IDC’s taxonomy, was the mainframe era, running from the 1960s into the 1980s. The 2nd platform included personal computers and the Internet, and began in the 1980s and ran through the middle of the first decade of this century.

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11 technologies Apple has killed

CITEworld

Out with the old

One of the things that makes Apple so successful is that it’s not afraid to abandon/kill popular technologies in the interest of something new. In doing so, the company often creates a bit of controversy, even if in the long run it seems to pan out well. At the same time, Apple’s revolutionary products have helped bring down entire product categories. Here is a rundown of technologies and products that Apple has killed (or is in the process of killing) over the last 17 years.

Floppy Drive

The first product released during Steve Jobs’s second stint at Apple was the Bondi Blue iMac. The all-in-one design was an immediate hit with consumers, and the machine was notable as much for its iconic look and performance as it was for the features it didn’t include. Specifically, the first iMac shipped without a floppy drive. At the time, back in 1997, this was a huge deal. To some critics, Apple was running a huge risk by completely doing away with what was then a common storage medium. Jobs and Apple, though, had the foresight to realize that computing was rapidly becoming Internet-centric, thereby eliminating the need for old-fashioned floppy drives.

Apple’s 30-pin connector

For over a decade, iPod, iPhone, and iPad users alike relied on Apple’s tried-and-true 30-pin connector for charging and to connect their devices with computers and accessories. But Apple said goodbye to the 30-pin connector in 2012 when it introduced the Lightning connector, a superior standard for a number of reasons. In addition to being smaller and more robust, the Lightning connector is reversible, which makes for a more efficient user experience. Naturally, abandoning the 30-pin connector on new iOS devices caused temporary problems for individual consumers and even large companies who had spent lots of money on older iOS accessories.

Netbooks

Remember Netbooks? A few years back, these hyper-small laptops were poised to be the next big thing in computing. In fact, back in 2008 and 2009, netbooks were flying off the shelves. As a result, there was a lot of pressure for Apple to enter the netbook market. Apple, however, went a different route when it released the iPad. Rather than opting for a compromised device, the company entered a new product category entirely with the iPad. The end result was a rather quick demise for the netbook, and in parallel, a reinvigorated market for tablets.

FireWire

FireWire was a proprietary Apple technology which allowed for incredibly fast transfer speeds between devices. Indeed, it was one of the features that made the original iPod so compelling. Beyond that, FireWire was, for a time, the de-facto standard for transferring digital movie footage to Macs.

Unfortunately, Apple ultimately began phasing out FireWire on Macs in 2008 as transitioning to USB expanded the company’s pool of potential users. It’s a shame, though, because USB 2.0, while decent, was vastly inferior to FireWire. The staggered abandonment of FireWire ultimately gave way to Thunderbolt.

View the other seven items… 

Are You Using Programmatic Yet?

eMarketer

If you haven’t gotten on the programmatic advertising bandwagon already, you may be getting left in the dust. According to a Chango survey of marketers in North America and the UK, 75% are already using programmatic advertising, including 18% who have been at it for more than two years. Though nearly twice as many have only been on board for the past year or less, there are still 9% who have no plans to even begin with programmatic.

182012 Are You Using Programmatic Yet?

It’s not surprising that with so many respondents saying they’ve begun their programmatic efforts relatively recently, most also agreed that they would be increasing their usage of programmatic at least somewhat during 2015. Nearly three in 10 expected significant increases in usage next year.

What’s driving the shift? More than eight in 10 respondents cited better targeting opportunities across devices and platforms, and 77.6% said they saw increased ad performance with programmatic. But not everything about the rise of programmatic is so rosy.

182016 Are You Using Programmatic Yet?

There are a number of factors still inhibiting its growth among marketers responding to the Chango survey. Two-thirds complained about problems with measuring their results, and integration of data from multiple resources or devices were also a problem for majorities of respondents.

Most marketers have caught up with the basics, though, like the buying process and creative execution.

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

 

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DEMO Fall 2014 Conference Wraps Day Two of Launching New Startups — and Crowned DEMO Gods

 DEMO Fall 2014 Conference Wraps Day Two of Launching New Startups — and Crowned DEMO Gods

Technology Innovators and Venture Capitalists Like Matt Rogers, Keith Rabois, Steve Papa Share Knowledge at Tech Launchpad Event

SAN JOSE, CA–(Marketwired – Nov 20, 2014) – DEMO Fall 2014 (www.DEMO.com) today welcomed the launch of another 20 technology products and services focused on solving real-life problems. The conference showcased a hand-selected group of entrepreneurs demonstrating new technologies in the areas of Bitcoin and personal finance, cloud, messaging and the Internet of Things, and setting the pace for future technology. Executives, founders, engineers and investors all gathered at the San Jose Convention Center in San Jose to crown the DEMO Gods.

DEMO God Award™ Winners
The Fall DEMO God Awards are presented to the DEMO Fall companies that exhibit exceptional potential to thrive in the market while inspiring and stimulating the DEMO audience. Congratulations to the following companies that were honored with Fall DEMO God Awards during DEMO Fall 2014:

The Work Cloud: Student Loans (www.goslb.com)
Wearables & Hardware: Curb (www.energycurb.com)
Mobile: PathSense (www.pathsense.com)
Smart Data: Celect (www.celect.net) and Ghostery (www.ghostery.com)
Traction Showcase Winner: Templafy (www.templafy.com)

“We traveled the world, meeting with promising startups to look for solutions that harness emerging technology to tackle big problems,” said DEMO executive producer Erick Schonfeld. “The core concept of creativity is looking at problems in new ways, and that is what we celebrated onstage at DEMO Fall.”

Speaker highlights of day two included key executives as well as “founder judges” who provided critiques and feedback to each demonstrating company:

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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.

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B2B Marketing: Where Are We Now?

IDG Connect 0811 300x141 B2B Marketing: Where Are We Now?

Often, the more you read, hear and write a word the less it begins to mean. Its cadence and calligraphy repeated ad infinitum become little more than shapes and white noise. The word ‘digital’ has dogged the marketing profession for the last few years, used in every event, article and plan to complete exhaustion. However despite its repetition, it seems we’re still only just unpacking what ‘digital’ will mean for the B2B marketing community. In fact, according to the 2014 Marketing Perspectives report, 9 out of 10 marketers believe the digital revolution is still gearing up – when it’s actually already here.

Over the next year marketers expect to see even more disruption from a younger generation, completely at home with on-demand technology, dominating the buying market. This disruption will grant even more power to those making purchase decisions as they obtain more information and make more knowledgeable choices. This empowered consumer is set against the challenge of an increasingly fragmented audience as the volume of marketing channels continues to grow.

However, there are two sides to the digital coin and this proliferation of channels and digitally savvy consumers provides marketers with an unprecedented opportunity to know their customer. With increasingly diverse demographics, marketers need data analytics to better understand the behaviour of the digital native, or ‘millennials’, as well as an ageing population and everyone else in between. Marketers are able to use the real-time insights from a huge range of digital channels to their advantage.

It’s no surprise then that web and customer analytics have been identified as the most important disciplines for marketers to master. The ability to mine data for crucial customer insight is a skill set that businesses prize, not just in the marketing function. But despite this, many marketers lack the competence and skills in data analytics that would help them incorporate insights from digital and mobile channels into their overall marketing mix.

Despite the recognition that mobile and on-demand media is changing the marketing landscape, marketers are still not confident with developing mobile strategies and activating mobile-ready campaigns. In fact, 1 in 3 marketers say their organisation’s mobile competence is below average or poor. This needs to change quickly if the brand wants to capture the attention of a mobile driven marketplace.

The Marketing Perspectives report by SAS and Marketing Week reveals that B2B marketers are more digitally inclined than their consumer focused counterparts, reporting more use of social, location based and mobile marketing. Thirty-five per cent of B2B marketers fell into the ‘SoMoLo Maven’ category (those who invest more, have greater skill and confidence in social, mobile and location marketing) compared to 19% of B2C marketers. However, with empowered buyers and digital natives driving change, the requirement for real-time data analytics skills is only set to grow. And yet, many still struggle with it.

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The New Breed of Marketers: the Digital Native

IDG Connect 0811 300x141 The New Breed of Marketers: the Digital Native

The rise of the digital native and empowered consumers is transforming the marketing landscape, and marketers are responding to this change in very different ways. Many marketers lack the digital skills to fully adapt to this rapidly burgeoning breed of consumer and its always-on culture. They can build websites and design banners for example, but are they able to optimise the design and improve targeting? First generation digital marketing may have been achieved, but they now need to accomplish digital marketing 2.0.

Under pressure to deliver ROI against limited budgets, many tend to choose channels or approaches that have been tried and tested before. Whilst this gives them confidence to generate results, it prevents them from truly engaging with a millennial generation moving fast into the social and mobile arena.

But, as a new breed of consumer takes centre stage, so too does a new breed of marketer need to emerge. As millennials take up position on both sides of the buyer- supplier relationship, the current and future marketer needs to learn new skills and master a different set of tools. Understanding data analytics will be the key to success.

The behaviour of the millennial demographic is distinctly different from its predecessors in many respects. A strong relationship with technology, social media and a willingness to impart personal information in exchange for better services, are some of the most defining traits. Digital natives expect to converse, interact and purchase as, when and via the channel that they choose. In return they expect marketers to remember their likes and preferences; to understand them. Understanding and assimilating these differences and the behaviours that accompany them is crucial if marketers are to survive the digital revolution.

The always-connected nature of the millennial generation is a behavioural gold-mine for marketers – providing both the means to engage and a source of information to guide that engagement.

Assailed with marketing messages from an early age, these empowered buyers are experts at filtering out irrelevant, poorly timed or boring marketing campaigns. Social and location data is providing the means for marketers to connect with millennials in a way that is instantaneous, personal and relevant.

Effective digital marketing relies on big data analytics and real-time decision-making. These twin pillars help businesses to identify, understand, hone in on and engage their customers by providing them with crucial and timely customer insight. Coincidentally, they are also two of the weakest areas amongst marketers today according to research of nearly 600 marketers, which is why many are struggling to engage their customer in a digitally driven world.

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Control over personal info nearly dead, Pew survey respondents say

PCworld

Internet companies have run amok with our personal data, and people aren’t entirely sure what to do about it, judging from the results of a new survey.

More than 90 percent of Americans feel they’ve lost control over how their personal information is collected and used by companies, particularly for advertising purposes, according to the results of a survey by the Pew Research Center, published Wednesday.

Eighty percent expressed concern over how third parties like advertisers accessed the data they share on social media sites. Pew did not gather the names of which sites specifically respondents meant, but you could likely venture a guess.

The survey, which polled 607 adults online, was the Washington, D.C.-based think tank’s first in a series to tackle Americans’ views toward surveilance 100042486 medium Control over personal info nearly dead, Pew survey respondents sayprivacy after the leaks around government surveillance made by Edward Snowden last year.

The majority of respondents did indeed say that people should be concerned about whether the government is listening in on their phone calls, or viewing their online communications and other sensitive data.

But beyond government surveillance, the findings also reflect people’s attitudes amid the increasing sophistication by which Internet companies leverage people’s data for advertising.

“It’s a bundle of concerns,” said Lee Rainie, one of Pew’s lead researchers on the project, in an interview. “It’s partly surveillance, it’s partly tracking, and this generalized sense that I’m losing control of my identity and my data,” he said.

The constant flood of stories related to data breaches, whether it’s at Target, Snapchat, or P.F. Chang’s, don’t help either.

But voicing concern about the level of access companies, governments and other groups have to data is one thing; taking action in response is another.

Some respondents said they have taken actions to protect their privacy, like using a pseudonym, but a majority of respondents agreed that achieving anonymity online is not possible.

People’s concerns around privacy might be part of the trade-off in using a free service. Some 55 percent of respondents said they were willing to share “some information about myself with companies in order to use online services for free.”

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