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IDC FutureScape: Latin America IT Industry 2016 Predictions
Jay Gumbiner
Research Vice President, Latin America
December 10, 2015
IDC Predictions: How the Process Works
Global brainstorm of over 1,000
IDC analysts
How we choose our prediction themes…
• Opportunity-oriented
• Impact many market segments
• Involve structural changes, require strategic choices
• Unique opportunities to establish market leadership
2
Latin America Predictions Team
Alejandro Floreán
Jay Gumbiner
Marcelo Leiva
Jerónimo Piña
Enrique Phun
Waldemar Schuster
Juan Pablo Seminara
Paola Soriano
Ricardo Villate
Daniel Zegarra
Leandro Agion
Diego Anesini
David Ayvar
Luciano Crippa
Carlo Dávila
3
IDC FutureScape: Latin America IT Industry 2016 Predictions
Figure
© IDC Visit us at IDC.com and follow us on Twitter: @IDC 4
Note: The size of the bubble indicates complexity/cost to address. Source: IDC, 2015
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By the End of 2017, one in three CEOs of the Top 3,000
Companies in Latin America will have Digital
Transformation at the center of their corporate strategy
3rd Platform Workload First will be the initial IT
infrastructure decision point in the DX era and involve more
than 40% of IT infrastructure investments by 2018
By 2018, at least 40% of enterprise IT spending will be
cloud based, reaching more than half of all IT Infrastructure,
software, services, and technology spending by 2020
By 2016, 45% of Latin American Companies will align IT
and LOB efforts towards a definitive Mobile Strategy
Disruptive computing form factors will change how workers
create, access and interact with data for their companies
with over 14 million ‘hybrid’ devices shipped in Latin
America in 2016
In 2016, 30% of Latin American consumer goods and retail
businesses will invest in 3rd Platform IT to exploit the
ecommerce explosion happening beneath the economic
slowdown surface
By the end of 2016, nearly half of Latin American
companies will be implementing a Next Generation Security
strategy by investing in specialized security consulting,
services and technologies
During 2016, more than two-thirds of IT project initiatives
will require demonstration of cost savings, forcing ‘open
sourced’ 3rd Platform into the spotlight
As IoT crosses the chasm, ten use cases in manufacturing,
transportation, consumer, government, and utilities will
become mainstream in LA and represent 80% of IoT
spending in 2016
By 2018, one third of companies pursuing DX will add
cognitive and VR/XR design capabilities to their app design
strategies
TIME (MONTHS) TO MAINSTREAM
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0-12 12-24 24+
CEO-led DX strategy
Cloud Core
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10
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Workload First Infrastructure
IT-LOB Mobile Strategy
4
Hybrid Devices
NG SecurityOpen sourced 3rd
Platform
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eCommerce
IoT use cases
Cognitive, AR/VR design capability
“Digital Transformation (DX) Scales Up”
© IDC Visit us at IDC.com and follow us on Twitter: @IDC 5
Source : IDC
IT/BU
Impact
Guidance
DX initiatives will rest on 3rd
Platform Pillars, mobility and
Cloud first
New mission critical
applications will be developed
mostly in a Cloud environment.
Most DX oriented strategies
will require the creation of an
executive DX position
IT suppliers should accelerate
the shift of the offerings from
the 2nd Platform to the 3rd
Platform, mapping them to DX
initiatives.
CIOs/CTOs must transform
their role from technology
expert and project execution to
a DX enabler.
1. By the End of 2017, one in three CEOs of the Top 3,000
Companies in Latin America will have Digital Transformation
at the center of their corporate strategy
© IDC Visit us at IDC.com and follow us on Twitter: @IDC 6
Note: The size of the bubble indicates complexity/cost to address.Source: IDC, 2015
$4.5 BIT spending driven by digital transformation initiatives
in 2016
TIME (MONTHS) TO MAINSTREAM
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ingle
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sCom
panyw
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0-12 12-24 24+
CEO-led DX strategy
Cloud Core
52
3
8
1
7
6 10
Workload First Infrastructure
IT-LOB Mobile Strategy
4
Hybrid Devices
NG SecurityOpen sourced 3rd
Platform
9eCommerce
IoT use cases
Cognitive, AR/VR design capability
2. 3rd Platform Workload First will be the initial IT infrastructure
decision point in the DX era and involve more than 40% of IT
infrastructure investments by 2018
© IDC Visit us at IDC.com and follow us on Twitter: @IDC 7
Note: The size of the bubble indicates complexity/cost to address.Source: IDC, 2015
IT/BU
Impact
Guidance
SDx related investment will
continue to grow 50% in 2016
Multi-cloud orchestration will
need to address network
transport, storage, and security
IT staff should reduce cost of
legacy without massive
migration as IT operation
budgets will reduce 10 to 15%
Beyond cloud and/or 3rd
platform strategy, organizations
must become "App first" ones
IT organizations should
evaluate software-defined and
open source elements in
infrastructure implementation
Skills development will remain
a great challenge
TIME (MONTHS) TO MAINSTREAM
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sCom
panyw
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0-12 12-24 24+
CEO-led DX strategy
Cloud Core
5 102
3
8
1
7
6
Workload First Infrastructure
IT-LOB Mobile Strategy
4
Hybrid Devices
NG SecurityOpen sourced 3rd
Platform
9eCommerce
IoT use cases
Cognitive, AR/VR design capability
3. By 2018, at least 40% of enterprise IT spending will be
cloud based, reaching more than half of all IT Infrastructure,
software, services, and technology spending by 2020
© IDC Visit us at IDC.com and follow us on Twitter: @IDC 8
Note: The size of the bubble indicates complexity/cost to address.Source: IDC, 2015
IT Impact
Guidance
Faster business transformation
becomes the expected
business outcome of cloud
Hybrid ecosystems will persist
and will be the rule
Industry cloud platforms will
transform many Latin American
enterprises into cloud services
providers
CIOs must integrate a "cloud
first" vision into their IT top
initiatives for 2016
Many companies
will incorporate IT
workload dashboards to their
operational balanced
scorecards
$3.6 BInvestment in public cloud services and in hosted
private clouds in 2016
TIME (MONTHS) TO MAINSTREAM
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ingle
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unit
Mult
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or
busi
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unit
sCom
panyw
ide
0-12 12-24 24+
CEO-led DX strategy
Cloud Core
52
10
3
8
1
7
6
Workload First Infrastructure
IT-LOB Mobile Strategy
4
Hybrid Devices
NG SecurityOpen sourced 3rd
Platform
9eCommerce
IoT use cases
Cognitive, AR/VR design capability
4. By 2016, 45% of Latin American Companies will align IT and
LOB efforts towards a definitive Mobile Strategy
© IDC Visit us at IDC.com and follow us on Twitter: @IDC 9
Note: The size of the bubble indicates complexity/cost to address.Source: IDC, 2015
IT/BU
Impact
Guidance
As mobility becomes strategic,
stakeholders change. The LOB
acquires a leading role
Business application
development will need to
incorporate wider cycles of
prototyping
The API becomes a critical part
of the platform
As IT moves from a support
role to a strategic role, metrics
by which IT is measured will
need to adapt
The concept of Fast Design or
Agile Design will become a
condition
Tools must deal with OS
fragmentation
Only 6%Organizations distribute their applications through an
Enterprise Mobility/Device Management Platform
TIME (MONTHS) TO MAINSTREAM
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ingle
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Mult
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or
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unit
sCom
panyw
ide
0-12 12-24 24+
CEO-led DX strategy
Cloud Core
52
10
3
8
1
7
6
Workload First Infrastructure
IT-LOB Mobile Strategy
4
Hybrid Devices
NG SecurityOpen sourced 3rd
Platform
9eCommerce
IoT use cases
Cognitive, AR/VR design capability
5. Disruptive computing form factors will change how workers create,
access and interact with data for their companies with over 14 million
‘hybrid’ devices shipped in Latin America in 2016
© IDC Visit us at IDC.com and follow us on Twitter: @IDC 10
Note: The size of the bubble indicates complexity/cost to address.Source: IDC, 2015
IT/BU
Impact
Guidance
Employees will have smaller
and lighter computing devices
with them at all times
Business applications built to
take advantage of these
devices will have a profound
impact on how internal/external
processes are completed
Business managers must
analyze internal and external
processes to determine better
screen size and functionality
Use country specific ROI
Ensure applications running in
new form factors makes proper
use of the functionality
14 million
Hybrid devices shipped in Latin America in 2016
TIME (MONTHS) TO MAINSTREAM
OR
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NIZ
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MPA
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A s
ingle
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or
a b
usi
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unit
Mult
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depart
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or
busi
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unit
sCom
panyw
ide
0-12 12-24 24+
CEO-led DX strategy
Cloud Core
52
3
8
1
7
6 10
Workload First Infrastructure
IT-LOB Mobile Strategy
4
Hybrid Devices
NG SecurityOpen sourced 3rd
Platform
9eCommerce
IoT use cases
Cognitive, AR/VR design capability
6. In 2016, 30% of Latin American consumer goods and retail
businesses will invest in 3rd Platform IT to exploit the ecommerce
explosion happening beneath the economic slowdown surface
© IDC Visit us at IDC.com and follow us on Twitter: @IDC 11
Note: The size of the bubble indicates complexity/cost to address.Source: IDC, 2015
IT/BU
Impact
Guidance
Online commerce platforms will
shift from a ‘nice to have’ to a
‘must have’
Companies will invest in
adaptable, scalable and secure
online payment systems
Pursue a seamless omni-
channel experience
Optimize physical and online
supply chain and establish
policies for returned goods
Optimize the user experience
regardless of the device being
used to access the data
$68 BillionOnline spending in top six countries in the region in
2016
TIME (MONTHS) TO MAINSTREAM
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unit
Mult
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depart
ments
or
busi
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unit
sCom
panyw
ide
0-12 12-24 24+
CEO-led DX strategy
Cloud Core
52
3
8
1
7
6 10
Workload First Infrastructure
IT-LOB Mobile Strategy
4
Hybrid Devices
NG SecurityOpen sourced 3rd
Platform
9eCommerce
IoT use cases
Cognitive, AR/VR design capability
7. By the end of 2016, nearly half of Latin American companies will be
implementing a Next Generation Security strategy by investing in
specialized security consulting, services and technologies
© IDC Visit us at IDC.com and follow us on Twitter: @IDC 12
Note: The size of the bubble indicates complexity/cost to address.Source: IDC, 2015
IT/BU
Impact
Guidance
Implementing an NGS strategy
demands specialized security
services
In 2016 2 out of 3 companies
will face challenges for
underutilizing security
Cloud and Mobility exacerbate
the need to address risk of
data in motion
Companies need to develop an
Incident Response strategy,
which could mean setting up
an IR team or outsource it
Consider a network
segmentation strategy
LOB’s cloud initiatives need to
adhere to corporate security
strategy
53%Growth in 2016 in spending on security solutions
offered from a cloud platform
TIME (MONTHS) TO MAINSTREAM
OR
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or
a b
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Mult
iple
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or
busi
ness
unit
sCom
panyw
ide
0-12 12-24 24+
CEO-led DX strategy
Cloud Core
52
3
8
1
7
6 10
Workload First Infrastructure
IT-LOB Mobile Strategy
4
Hybrid Devices
NG SecurityOpen sourced 3rd
Platform
9eCommerce
IoT use cases
Cognitive, AR/VR design capability
8. During 2016, more than two-thirds of IT project initiatives will
require demonstration of cost savings, forcing ‘open sourced’
3rd Platform into the spotlight
© IDC Visit us at IDC.com and follow us on Twitter: @IDC 13
Note: The size of the bubble indicates complexity/cost to address.Source: IDC, 2015
IT/BU
Impact
Guidance
LOB managers will request
consideration of open source
elements in half of the Cloud
investments in 2016.
30% of CIOs have recognized
open source and born-in-the-
cloud vendors as best qualified
to support on-demand projects
Cost vs. ease of
implementation and
governance will define
decisions in 2016
Companies driving IT initiatives
related to open source will
select those vendors with
better local support and SLAs
30%+
Growth in spending on open source solutions
TIME (MONTHS) TO MAINSTREAM
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unit
sCom
panyw
ide
0-12 12-24 24+
CEO-led DX strategy
Cloud Core
52
3
8
1
7
6 10
Workload First Infrastructure
IT-LOB Mobile Strategy
4
Hybrid Devices
NG SecurityOpen sourced 3rd
Platform
9eCommerce
IoT use cases
Cognitive, AR/VR design capability
9. As IoT crosses the chasm, ten use cases in manufacturing,
transportation, consumer, government, and utilities will become
mainstream in LA and represent 80% of IoT spending in 2016
© IDC Visit us at IDC.com and follow us on Twitter: @IDC 14
Note: The size of the bubble indicates complexity/cost to address.Source: IDC, 2015
IT/BU
Impact
Guidance
Network is an essential asset
to ensure quality in data
transport
Analytics tools of fundamental
importance
During 2016, Latin America will
also see the birth of hundreds
of companies developing IoT
solutions
Interoperability, adaptability,
scalability, and security are
essential
Industry forums,
standardization and
orchestration will greatly
accelerate the development of
an ecosystem
59%Organizations in Latin America actively exploring IoT
initiatives for 2016
TIME (MONTHS) TO MAINSTREAM
OR
GA
NIZ
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ION
AL I
MPA
CT
A s
ingle
depart
ment
or
a b
usi
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unit
Mult
iple
depart
ments
or
busi
ness
unit
sCom
panyw
ide
0-12 12-24 24+
CEO-led DX strategy
Cloud Core
52
3
8
1
7
6 10
Workload First Infrastructure
IT-LOB Mobile Strategy
4
Hybrid Devices
NG SecurityOpen sourced 3rd
Platform
9eCommerce
IoT use cases
Cognitive, AR/VR design capability
10. By 2018, one third of companies pursuing DX will add
cognitive and VR/XR design capabilities to their app design
strategies
© IDC Visit us at IDC.com and follow us on Twitter: @IDC 15
Note: The size of the bubble indicates complexity/cost to address.Source: IDC, 2015
IT/BU
Impact
Guidance
Curated content, content
aggregation, integration and
collaboration are required
These technologies promise a
revolutionary change in the
experience
The marketplace will be quickly
exposed to applications
originating around the globe
Early adopters: educate on
platform maturity
Vendors and application
developers: consider the
implications of multiple existing
platforms
All: integration to legacy must
not slow down innovation
TIME (MONTHS) TO MAINSTREAM
OR
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A s
ingle
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or
a b
usi
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unit
Mult
iple
depart
ments
or
busi
ness
unit
sCom
panyw
ide
0-12 12-24 24+
CEO-led DX strategy
Cloud Core
52
3
8
1
7
6 10
Workload First Infrastructure
IT-LOB Mobile Strategy
4
Hybrid Devices
NG SecurityOpen sourced 3rd
Platform
9eCommerce
IoT use cases
Cognitive, AR/VR design capability
IDC FutureScape: Latin America IT Industry 2016 Predictions
Figure
© IDC Visit us at IDC.com and follow us on Twitter: @IDC 16
Note: The size of the bubble indicates complexity/cost to address. Source: IDC, 2015
1
2
3
4
5
6
7
8
9
10
By the End of 2017, one in three CEOs of the Top 3,000
Companies in Latin America will have Digital
Transformation at the center of their corporate strategy
3rd Platform Workload First will be the initial IT
infrastructure decision point in the DX era and involve more
than 40% of IT infrastructure investments by 2018
By 2018, at least 40% of enterprise IT spending will be
cloud based, reaching more than half of all IT Infrastructure,
software, services, and technology spending by 2020
By 2016, 45% of Latin American Companies will align IT
and LOB efforts towards a definitive Mobile Strategy
Disruptive computing form factors will change how workers
create, access and interact with data for their companies
with over 14 million ‘hybrid’ devices shipped in Latin
America in 2016
In 2016, 30% of Latin American consumer goods and retail
businesses will invest in 3rd Platform IT to exploit the
ecommerce explosion happening beneath the economic
slowdown surface
By the end of 2016, nearly half of Latin American
companies will be implementing a Next Generation Security
strategy by investing in specialized security consulting,
services and technologies
During 2016, more than two-thirds of IT project initiatives
will require demonstration of cost savings, forcing ‘open
sourced’ 3rd Platform into the spotlight
As IoT crosses the chasm, ten use cases in manufacturing,
transportation, consumer, government, and utilities will
become mainstream in LA and represent 80% of IoT
spending in 2016
By 2018, one third of companies pursuing DX will add
cognitive and VR/XR design capabilities to their app design
strategies
TIME (MONTHS) TO MAINSTREAM
OR
GA
NIZ
AT
ION
AL I
MPA
CT
A s
ingle
depart
ment
or
a b
usi
ness
unit
Mult
iple
depart
ments
or
busi
ness
unit
sCom
panyw
ide
0-12 12-24 24+
CEO-led DX strategy
Cloud Core
52
10
3
8
1
7
6
Workload First Infrastructure
IT-LOB Mobile Strategy
4
Hybrid Devices
NG SecurityOpen sourced 3rd
Platform
9
eCommerce
IoT use cases
Cognitive, AR/VR design capability
Joining us for Q&A:
Ricardo Villate, Group VP
Alejandro Floreán, Consulting
Diego Anesini, Enterprise Solutions
Juan Pablo Seminara, Enterprise HW
Paola Soriano, Devices
Carlo Dávila, Security Solutions
Daniel Zegarra, Emerging Markets
Leandro Agion, Telecom Services
Jerónimo Piña, Software
Luciano Crippa, Devices
Marcelo Leiva, Software
17