idc asia/pacific it services futurescape 2016

IDC FutureScape: Worldwide Services 2016 Predictions

APEJ Implications: Realizing Digital Transformation

#IDCFutureScapes

Presenter: Linus Lai

Research Director, Services, IDC Asia/Pacific

Presenter: Cathy Huang

Research Manager, Services and Cloud Research

Group, IDC Asia/Pacific

Agenda

Introduction / Housekeeping Reminders

IDC FutureScape: Worldwide Services 2016 PredictionsAPEJ Implications: Realizing Digital Transformation

Q&A

Wrap-up

#IDCFutureScapes

Introduction

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© IDC Visit us at IDC.com and follow us on Twitter: @IDCAP 5

Source: NYT, 2016

We ain’t out

of the woods

yet…

Asia Pacific including JapanTotal IT Services growth expectations in USD

-15%

-10%

-5%

0%

5%

10%

15%

ANZ GreaterChina

India Korea ASEAN Japan

2014 2015 2016 2017

Source: Asia/Pacific IT Services Tracker, January 2016 (growth in yoy USD)

6© IDC Visit us at IDC.com and follow us on Twitter: @IDCAP

© IDC Visit us at IDC.com and follow us on Twitter: @IDCAP

Top Performers 2015*

7Source: IDC Asia/Pacific IT Services Tracker for GTS markets (Oct 2013 release)

* Source: IDC Asia/Pacific Semiannual Services Tracker, 1H2015

Mega Trends

8© IDC Visit us at IDC.com and follow us on Twitter: @IDCAP


Digital Transformation

Third Platform Adoption

Urban Corridors

Talent Quest

East-West Shift

IoT and Other Innovation Accelerators

IT Productivity


Note: The size of the bubble indicates complexity/cost to address. Source: IDC, 2015

IDC’s Worldwide Services Top Ten Predictions APEJ Implications

1

2

3

4

5

6

7

8

9

10

5

TIME (MONTHS) TO MAINSTREAM

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0-12 12-24 24+

5 10

2

3

81

9

7

4

6

LOB/IT PartnersCloud First

Ecosystems of Engagement

Platforms from Digital Disruptors

Software Defined IT infrastructure

XaaS substitutes for managed services

NexGen Security Mgt.

Self-Service Gains in Customer Care

IoT changes require outside assistance

DX a component of 65% of strategies

4

10

6

8

9

1

2

37

Cloud First — 33% of Asia/Pacific Enterprises Will

Pursue a “Cloud First” Strategy and the Share of Overall

IT Budgets Dedicated to Cloud Services Will Increase to

26% by 2016

XaaS Substitutes Managed Services — By 2016, 50-55%

of Traditional Outsourcing Managed Services Will Have a

Cloud Delivery Model

Self-Service Grows in Customer Care — By 2018,

Voice-based Interactions in the Contact Center Will

Decline by 25% Due to Accelerated Demand for Newer

Options Like Self-Service.

DX — By 2016, 65% of APEJ Enterprise Strategies Will

Include a Significant “Digital Transformation” Component

IoT Changes Require Outside Assistance — In the IoT

Age, Value Derived Will Be Based on the Successful

Leverage of Data, and Most Firms Will Look Outside of

Their Organizations for Help in Addressing the Broad

Changes Required

LOB/IT Partners — By 2018, 80% of Major IT Decisions

Will Involve a Partnership Between the IT Organization

and LOBs

Software-Defined IT infrastructure — By 2016, 30% of

Enterprises Will Implement Software-Defined

infrastructure in Their Datacenters

Platforms from Digital Disruptors — By 2018, 20% of

All Enterprises Will Be Leveraging Digital Platforms from

Such Firms as WeChat, Uber, GE/Predix, and PTC

In 2020, in Excess of 75% of Ideas, Talent, and Innovation

Will Be Sourced Through Ecosystems of Engagement

Next-Gen Security Management — By the End of 2017,

55% of Enterprises Will Rely on Third-Party Management

of Their Security Infrastructure

© IDC Visit us at IDC.com and follow us on Twitter: @IDCAP11


IT departments transform

into internal brokers of

cloud

Realize value of integrated

DevOps

Willing to replace/add

traditional IT with cloud-

based solutions or services

Ensure cloud services can

be integrated with

traditional IT

Build OpenSource-based

solutions and services

capabilities

Impact

Guidance


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Cloud First Strategy

1

Services Opportunities

Prediction #1. 33% of APeJ enterprises will pursue a “Cloud First” strategy and the share of overall IT budgets dedicated to cloud services will increase to 26% by 2016

© IDC Visit us at IDC.com and follow us on Twitter: @IDCAP 12Note: The size of the bubble indicates complexity/cost to address. Source: IDC, 2016

Use of pay-as-you-go

services combined with

increase of shadow IT

spending

Greater security and

continuity risks

Enterprises may lose

critical IP

Break down cost

structures between

business units

Service catalog based on

service levels

Measuring business

outcomes will become

important

Impact

Guidance


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XaaS Substitutes Managed Services

Prediction #2. By 2016, 50–55% of traditional

outsourcing managed services will have a cloud

delivery model

2

Services: Realizing Digital Transformation




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4

DX a key component of 65% of enterprise

strategies

4

8


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10

NexGen Security

Management

10

9

Platforms from Digital Disruptors

Ecosystems of Engagement

6

IoT changes require outside assistance

3 Self-Service Gains in Customer Care

Prediction #4. By the end of 2016, 65% of APeJ

enterprise strategies will include a significant

“digital transformation” component


Source and deliver IT in

an agile, flexible and

efficient manner

IT functions evolve to

become more as of

business service

provider

Greater risk &

compliance

requirements

Educate the

procurement team

Upskill IT resources &

invest in staff training

Agility is increasingly a

given expectation

Impact

Guidance


OR

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4

DX a key component of 65% of enterprise

strategies

4

Prediction #6. In the IoT Age, value derived will be

based on the successful leverage of data, and

most firms will look outside for help


Create new challenges

and opportunities to

convert "human,

machine" data into

business insights

Push data at the core

of the new DX

ecosystem

Asses your current

information mgt.

process and data

governance

Invest in tools and

processes to collect

and analyze

unstructured data

Develop a competency

center

Impact

Guidance


OR

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0-12 12-24 24+

6

IoT changes require 3rd party vendor

support

6

Prediction #10. By the end of 2017, 55% of

enterprises will rely on third party management

of their security infrastructure



Broadens the scope,

size, and impact of

attacks

Relate the business

outcomes and risk

appetite

Analytics improves

security management

Strive to have modern

IT, not futuristic IT

Invest based on

quantified IT risk

metrics.

Constantly educate

board members on

the topic of security

Impact

Guidance


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10

NexGen Security

Management

10


Essential Guidance

Technology Buyers

Technology Suppliers

Digital transformation (DX) is a

multipart journey

Prepare for sourcing strategies to

change

Governance and risk management

play an important role

Support buyer shift to digital business

that encompass end-to-end capabilities

Focus on providing business value and

enduring services quality values

Choose your battleground and establish

ecosystems of partnerships that can

provide access to new buyers and

opportunities

Please refer to www.idc.com for the full report #AP4032115

IDC:AP Services Research CY 2016 Schedule (Syndicated Research)

18

Document Title Document TypePublication Date

Asia/Pacific Services FutureScape Top 10 Predictions Futurescape Published

Analysis of Top IT Services Deals in the APeJ Region IDC Presentation Published

Value of hyperconverged solutions in building private cloud Insight Q1 2016

Professional Services Market Opportunities for Analytics and its Key Players Market Forecast Q1 2016

Digital Transformation, Next-gen Security: Tech buyer perspective Survey Insight Q1 2016

Asia/Pacific IT Services Survey 2016 Result Analysis IDC Survey Q1 2016

Asia/Pacific Infrastructure Services and DevOps-- Tech buyer perspective IDC Presentation Q2 2016

Best practices for security and risk management in a cloud environment PeerScape Q2 2016

ITO, ISO and managed services: Market forecast for APEJ and countries Market Forecast Q2 2016

IT Ops in a DevOps world: ITSM meets BSM Insight Q2 2016

ITO, ISO and managed services: Market shares of managed services providers Market Share Q3 2016

Enterprise Application Transformation: Impacts on Services IDC MarketScape Q3 2016

Market Analysis Perspective: Asia/Pacific: Security Services Market 2016 IDC Presentation Q3 2016

ITO, ISO and managed services: BuyerPulse deal analysis IDC Presentation Q4 2016

IDC MarketScape: Asia/Pacific Managed Security Services 2016 Vendor Assessment

IDC MarketScape Q4 2016

The actual number of publications under this program is 29 in 2015. See more details

http://to.idc.asia/AP_ITServices_PublishedResearch

http://to.idc.asia/AP_ITServices_PublishedResearch

FutureScapes Documents

IDC FutureScape: Worldwide Cloud 2016 Predictions – APeJ

Implications

IDC FutureScape: Worldwide Services 2016 Predictions –

APeJ Implications

IDC FutureScape: Worldwide Telecommunications 2016

Predictions – APeJ Implications

IDC FutureScape: Worldwide Big Data and Analytics 2016


IDC FutureScape: Worldwide Manufacturing 2016


IDC FutureScape: Worldwide CIO Agenda 2016 Predictions –

APeJ Implications

#IDCFutureScapes

http://www.idc.com/getdoc.jsp?containerId=AP40350315






FutureScapes Documents

IDC FutureScape: Worldwide IT Security Products and

Services 2016 Predictions – APeJ Implications

IDC FutureScape: Worldwide Digital Transformation (DX)

2016 Predictions – APeJ Implications

IDC FutureScape: Worldwide IT Industry 2016 Predictions –

Leading Digital Transformation to Scale – APeJ Implications

3rd Platform Innovation: Leading Digital Transformation to

Scale

IDC FutureScape: Worldwide Internet of Things 2016

Predictions

IDC FutureScape: Worldwide Datacenter 2015 Predictions

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Q&APresenter: Linus Lai

Research Director, Services, IDC Asia/Pacific

Email: [email protected]

Twitter: @linuslai

Presenter: Cathy Huang

Research Manager, Services and Cloud Research

Group, IDC Asia/Pacific

Email: [email protected]

Twitter: @cathyhuang

#IDCFutureScapes



Thank you!

www.ap.idc.asia

@IDCAP

IDC Asia/Pacific Group

#IDCFutureScapes