3rd PLATFORM predictions

1. IDC Predictions 2013
Competing on the 3rd Platform
Steven Frantzen
Senior Vice President, EMEA Region
January 2013

2. 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
The Third Platform for IT Industry
Growth & Innovation
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3. #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
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4. Mixed Picture in Europe, 2013
Germany
4,1%
Norway
4,0%
Switzerland
 Software and mobile
devices support some
growth
3,8%
Belgium
3,3%
Austria
3,3%
Finland
2,8%
Sweden
2,8%
Western Europe
United Kingdom
2,5%
Denmark
 Infrastructure spending
down
2,6%
2,4%
France
2,0%
Netherlands
1,9%
Ireland
Italy
 Mobility, network
development and
software demand
benefit Austrian market
1,1%
0,2%
-1,8% Spain
-2,4% Portugal
-3,6%
-4,0%
Greece
-2,0%
0,0%
2,0%
4,0%
Source: IDC, Q1 2013 Blackbook
6,0%

5. #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
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6. #3 – Mobile Devices Dominating
 Sales of Smart Mobile
Devices (SMDs) will surge
20% to $430 billion
• PC sales will grow 1.7%, to
$237 billion
 Internet access via SMDs
will exceed PC access by
2015
 Mini tablets will jump from
33% to 60% of the tablet
market
• Tipping point in schools’ shift
from textbooks to tablets
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7. #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
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8. #5 – Cloud Apps Consolidating, Winning
 The SaaS acquisition
spending spree will
accelerate, to $25 billion in
the next 20 months
 Cloud services’ capabilities
and scale are essential to
competing in the third
platform marketplace
 SaaS vendors will begin to
grab software market
leadership in key markets
and segments
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9. # 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”
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10. #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
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11. #8 – Industry Solutions Expanding
 Spending on Industryspecific solutions will near
$100 billion by 2016, up from
$65 billion in 2013
 Retailers will use 3rd Platform
technologies to grab $2
billion of “showrooming”
customer’s sales
 Line of business executives
will be involved with 80% of
IT sales by 2016, decisionmakers for 40%
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12. #9 – Social Proliferating & Sprawling
 Social technologies are
becoming embedded in a
growing number of
enterprise apps
 Social technologies will
drive M&A, again
• Microsoft, Oracle and
Salesforce.com will hunt
• Oracle will do a social “reset”
 “Social everything” will
create an integration
challenge for enterprise IT
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13. #10 – Big Data Shifting Focus
 The “Digital Universe” will
expand to over 4 zettabytes in
2013
• Over 50% growth from 2012 –
and will continue to double
• Increased variety with over 90%
of all data unstructured, and from
heterogeneous sources
• Increased data velocity, often
dynamic and changings
 The Big Data focus will shift
“up the stack”, toward analytics
and 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
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14. The Extended Enterprise will Define
the NextGen CIO
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?
Strongly Agree
Agree
Neither Agree
or Disagree
Disagree
Strongly
Disagree
0%
20%
40%
60%
Source: IDC CIO Agenda Survey. November-December, 2011
n= 86
 NextGen CIOs will focus on business
services, analytics and controls
 They’ll own the adoption of new
business services while ensuring
security and a seamless information
architecture.
• Chief Information Architect
• Services Sourcing and
Management
• Business Process and Change
Management
• Compliance and Risk Management
• Policy Specialist
• Driver of Innovation
 Technology remains important, but
NextGen CIO may be a non-IT business
executive who excels at innovation,
communication and change

15. Essential Guidance
 The 3rd Platform is now the
“real” IT industry
• 80% of competitive energy
should be on this platform
 Quickly reaching scale is
mandatory
• 2013 M&A investments will be
bigger
 Platform strategy is essential
 Consumerization is
permeating Enterprise IT
 New customer types a priority
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16. “IDC Predictions Central” @idc.com
http://www.idc.com/research/Predictions13/index.jsp
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