THOUGHT LEADERS FOR MANUFACTURING & SUPPLY CHAIN
By John Moore, et. al.
This year will close with promising signs
that the long recession in IT spending is
abating. The coming year will see a
number of changes as spending
increases, consolidation continues and a
wide-range of suppliers position
themselves for RFID.
DECEMBER 18, 2003
2003 Closes Out as Planned
Rays of Sunshine for IT Market in 2004
Trends, 2004, RFID, PLM, SCM, EAM, Wireless
2003 came in like a lamb and may not leave like a
lion, but will none the less be stronger, can we infer a
ram? Of ARC’s 10 predictions for 2003, 7 were on
target and remaining were mixed. For 2004, 3 predic-
tions are modifications to ones in 2003, the remaining
7 target new significant new developments.
For 2003, ARC’s predictions were on target with seven clear “Hits” and
1. Spending for Large Enterprise Applications Remains Weak
HIT: Enterprise application sales were anemic most of the year, show-
ing only modest recovery from the later half of third quarter onward.
2. Consolidation of Independent Software Vendors (ISVs) Continues
HIT: Consolidation continued at a frenetic pace in 2003, particularly
among ERP companies as consolidators looked to bulk-up on new ca-
pabilities, markets, and most importantly customers.
3. Collaborative Production Management Market Comes into Its Own
HIT: One of the few bright spots for IT spending growing over 10%
(eliminating the semi-conductor sector and growth exceeded 18%), as
manufacturers replace proprietary systems with commercial solutions.
4. Web Services Moves beyond Trial Applications to Broad Roll-outs
MIXED: Web services is no longer and “if” but a “when & where” phe-
nomena as companies look to deploy such capabilities internally.
Broader roll-outs remain elusive.