predictions idc2013

IDC Predictions 2013

Competing on the 3rd Platform

Steven Frantzen Senior Vice President, EMEA Region

January 2013

Competing on the 3rd Platform

From 2013 through 2020, 90% of

IT industry growth will be driven by

3rd Platform technologies that,

today, represent just 22% of ICT

spending

80% of competitive energy

should be focused on

strengthening 3rd Platform

offerings and capabilities

Outcomes will provide new

challenges and opportunities for

users and redefine their choices

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The Third Platform for IT Industry

Growth & Innovation

#1 – WW IT Growth Modestly Down

Worldwide IT spending

growth in 2013 will be 5.5%

Mobile devices alone will

drive 57% of IT growth

Software, Services

momentum will continue

PCs and Servers will return

to modest growth but from a

smaller base

Downside risks remain


Mixed Picture in Europe, 2013

4

Software and mobile

devices support some

growth

Infrastructure spending

down

Mobility, network

development and

software demand

benefit Austrian market

Source: IDC, Q1 2013 Blackbook

-3,6%

-2,4%

-1,8%

0,2%

1,1%

1,9%

2,0%

2,4%

2,5%

2,6%

2,8%

2,8%

3,3%

3,3%

3,8%

4,0%

4,1%

-4,0% -2,0% 0,0% 2,0% 4,0% 6,0%

Greece

Portugal

Spain

Italy

Ireland

Netherlands

France

Denmark

United Kingdom

Western Europe

Sweden

Finland

Austria

Belgium

Switzerland

Norway

Germany

#2 – Emerging Markets’ Impact Rising

Emerging Markets IT

spending will be up 8.8%

• 34% of WW IT spending, and

51% of worldwide growth

BRIC will grow 12%,

account for 48% of

emerging markets growth

• China growth will dip to 10%

Emerging markets will drive

new designs, leadership


#3 – Mobile Devices Dominating

Sales of Smart MobileDevices (SMDs) will surge20% to $430 billion• PC sales will grow 1.7%, to

$237 billion

Internet access via SMDswill exceed PC access by2015

Mini tablets will jump from33% to 60% of the tabletmarket• Tipping point in schools’ shift

from textbooks to tablets


#4 – Mobile Platforms Reckoning

The real “PC vs.

SMD” battle is over

the quest for

developers and apps

A year of reckoning

for Microsoft and RIM

in the mobile app

platform battle


#5 – Cloud Apps Consolidating, Winning

The SaaS acquisitionspending spree willaccelerate, to $25 billion inthe next 20 months

Cloud services’ capabilitiesand scale are essential tocompeting in the thirdplatform marketplace

SaaS vendors will begin tograb software marketleadership in key marketsand segments


# 6 – Cloud Platforms Verticalizing

PaaS is now strategic

An explosion in “Industry

PaaS” offerings

• Less than 100 in 2012, will

grow ten-fold by 2016

“Horizontal PaaS” will

become more commoditized

• Adoption of open source

stacks, frameworks and tools

is expanding

• Horizontal PaaS vendors

need to move “up the stack”


#7 – Data Center Transforming

New technologies, designs

• Converged systems will account

for over 1/3 of enterprise cloud

deployments by 2016

• Software-defined networks will

penetrate 35% of Ethernet

switching in the data center

“Bring Your Own ID (BYOID)”

will bring consumerization to

enterprise security

Service Providers will drive

more IT spend by 2016


#8 – Industry Solutions Expanding

Spending on Industry-specific solutions will near$100 billion by 2016, up from$65 billion in 2013

Retailers will use 3rd Platformtechnologies to grab $2billion of “showrooming”customer’s sales

Line of business executiveswill be involved with 80% ofIT sales by 2016, decision-makers for 40%


#9 – Social Proliferating & Sprawling

Social technologies arebecoming embedded in agrowing number ofenterprise apps

Social technologies willdrive M&A, again• Microsoft, Oracle and

Salesforce.com will hunt

• Oracle will do a social “reset”

“Social everything” willcreate an integrationchallenge for enterprise IT


#10 – Big Data Shifting Focus

The “Digital Universe” willexpand to over 4 zettabytes in2013 • Over 50% growth from 2012 –

and will continue to double

• Increased variety with over 90%of all data unstructured, and fromheterogeneous sources

• Increased data velocity, oftendynamic and changings

The Big Data focus will shift“up the stack”, toward analyticsand discovery,and analytic applications• Spending will reach $10 billion in

2013, over $20 billion by 2016


1000 Gigabytes = 1 Terabyte ·

1000 Terabytes = 1 Petabyte ·

1000 Petabytes = 1 Exabyte -

1000 Exabytes = 1 Zettabyte

NextGen CIOs will focus on businessservices, analytics and controls

They’ll own the adoption of newbusiness services while ensuringsecurity and a seamless informationarchitecture.

• Chief Information Architect

• Services Sourcing andManagement

• Business Process and ChangeManagement

• Compliance and Risk Management

• Policy Specialist

• Driver of Innovation

Technology remains important, butNextGen CIO may be a non-IT businessexecutive who excels at innovation,communication and change

0% 20% 40% 60%

Strongly Disagree

Disagree

Neither Agree or Disagree

Agree

Strongly Agree

With the increased adoption of cloud services in an

organization, I see the role of CIO transforming to

become Chief Information Architect, where one of the

primarily responsibilities of the CIO is to ensure

information flows between internal systems and

cloud services?

Source: IDC CIO Agenda Survey. November-December, 2011

n= 86

The Extended Enterprise will Define

the NextGen CIO

Essential Guidance The 3rd Platform is now the

“real” IT industry• 80% of competitive energy

should be on this platform

Quickly reaching scale ismandatory• 2013 M&A investments will be

bigger

Platform strategy is essential

Consumerization ispermeating Enterprise IT

New customer types a priority


predictions idc2013

Technology

spending growth

growth software

industry growth innovation

leadership idc

modest growth

mobile app platform

segments idc

stack idc