What's Hot in ICT in 2014?


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Every year, Frost & Sullivan surveys its customers to gain true end-user insight into the trends that will deliver new growth opportunities across the ICT industry. From M2M and Cloud to UC and Big Data, we look at the major trends that will influence strategies and revenue potential in 2014.

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What's Hot in ICT in 2014?

  1. 1. What’s Hot in ICT in 2014? A View from Our Customers Ajay Sule, Business Unit Leader Adrian Drozd, Research Director ICT 26 March 2014 © 2014 Frost & Sullivan. All rights reserved. This document contains highly confidential information and is the sole property of Frost & Sullivan. No part of it may be circulated, quoted, copied or otherwise reproduced without the written approval of Frost & Sullivan.
  2. 2. 2 Today’s Presenters Adrian Drozd, Research Director, ICT Europe Frost & Sullivan Responsible for Frost & Sullivan’s European ICT research programme, spanning areas including Mobile & Wireless, Cloud, UC&C and Network Security. In addition, Adrian is Global Programme Manager for the Connected Industries research stream. Ajay Sule, Business Unit Leader, ICT Europe, Israel & Africa Frost & Sullivan Seasoned research industry professional, who has held executive level positions in key analyst firms such as Informa Telecoms & Media, Yankee and Probe Research. Strong international experience with 27 years in the ICT Research and Consulting sector. http://www.linkedin.com/groups/Future-Growth-Opportunities-in-ICT-4876870
  3. 3. 3 Focus Points During the briefing we will: 1. Identify the key trends to follow across the ICT industry in 2014 2. Show a true end-user perspective on hot topics 3. Provide Frost & Sullivan's opinion on key ICT growth drivers Every year, Frost & Sullivan surveys its customers to gain true end-user insight into the trends that will deliver new growth opportunities across the ICT industry. From M2M and Cloud to UC and Big Data, we look at the major trends that will influence strategies and revenue potential in 2014.
  4. 4. 4 CEO/ Leadership 15% R&D/ Innovation 15% Sales Leadership 11% Corporate Develop-ment 5%Market Research 8% Competi-tive Intelli-gence 4% Investors/ Finance 3% Marketing 16% Corporate Strategy 9% Other 16% ICT Firms are Well Represented in the Survey Sample Source: Frost & Sullivan analysis. Industry Function A&D 5% A&T 14% CMF 8% EPS 9% EBT 3% BFS 8%HC 13% IPC 3% ICT 18% MI 2% Other 17% A&D = Aerospace & Defence A&T = Automotive & Transportation CMF = Chemicals, Materials & Food EPS = Energy & Power Systems EBT = Environment & Building Technologies BFS = Business & Financial Services HC = Healthcare IPC = Industrial Automation & Process Control ICT = Information & Communication Technologies MI = Measurement & Instrumentation
  5. 5. 5 Poll Question For those of you who represent the ICT industry: based on your knowledge, how much will the whole ICT industry grow/decline in your region in 2014? 1. Decline by more than 10% 2. Decline by 0-10% 3. Remain relatively stable 4. Grow by 0-10% 5. Grow by more than 10%
  6. 6. 6 ICT Respondents are Optimistic About Growth Prospects N=1,937 Q Based on your knowledge, how much will the whole industry grow in your region next year? Q Based on your knowledge, how much will your business grow/contract next year? IndustryGrowth Bubble size = number of respondents Business Growth 4% 6% 8% 10% 12% 14% 4% 5% 6% 7% 8% 9% 10% 11% 12% 13% 14% A&D A&T CMF EPS EBT HC IPC ICT MI Source: Frost & Sullivan analysis. Strong growth potential exists across the global ICT industry – perhaps unsurprisingly, most respondents expect their company to outperform the wider industry in 2014!
  7. 7. 7 Voice of the Customer 784 survey respondents tracking ICT Mobile & Wireless Cloud Computing IT Services Big Data & Analytics Comms Services Digital Media UC&C Network Security Digital Identification Contact Centers Source: Frost & Sullivan analysis.
  8. 8. 8 ICT Hot Topics What our Customers will be Focusing on in 2014 Unified Comms & Collaboration Mobile & Wireless Cloud Hosted/Cloud UCC Services Mobile UC The Future of Work BYOD Trends Video Collaboration Smartphones & Mobile OS Machine-to-Machine 4G Networks & LTE Next Generation Tablets Location-based Services Big Data in the Cloud Software as a Service (SaaS) Cloud Security Infrastructure as a Service (IaaS) Platform as a Service (PaaS) 1 5 1 5 Big Data & Analytics Business Intelligence Customer Experience Management Customer Experience Analytics Online/Digital Analytics Mobile Marketing 1 5 1 5 Source: Frost & Sullivan analysis.
  9. 9. 9 Mobile Trends 2014 Source: Frost & Sullivan analysis.
  10. 10. 10 Poll Question Wearable devices are a hot trend in the mobile market, with leading vendors seeking to gain an early advantage – notably in the wrist-worn (or smart watch) arena. Which of the following statements best matches your opinion on the potential for such devices in 2014? Smart watches… 1. Are nothing but a fad – by 2015, nobody will be talking about them 2. Will gain strong traction among early adopters 3. Will hit the mainstream in developed mobile markets
  11. 11. 11 Samsung & Apple Dominate in Developed Mobile Markets 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Africa/ME Latin America Asia Pacific Europe NA Others Nokia Samsung Apple MarketShareofShipments,2013 Source: Frost & Sullivan analysis.
  12. 12. 12 Android Set to Maintain European Dominance 18.5% 70.7% 1.0% 4.1% 5.6% 22.4% 67.0% 3.4% 5.7% 1.5% iOS Android BlackBerry Windows Phone Others Europe 2012 Europe 2018 Source: Frost & Sullivan analysis.
  13. 13. 13 M2M is Transitioning Towards the Internet of Things More than three-quarters of European MNOs will offer M2M in 2014 Standardisation helps to break down market entry barriers Presence of 2 MNO-driven M2M groups simplifies efforts to develop M2M offerings New market creation in industries such as retail and industrial automation Focus shifts to the Internet of Things (IoT), as more data will be generated by machines than by human beings
  14. 14. 14 Cloud – 3 Hot Trends to Watch in 2014 Software-Defined Data Center (SDDC) solutions increase in the market Bare Metal Cloud will be introduced by more cloud providers Enterprises increase adoption of Public Cloud
  15. 15. 15 Digging Deeper into Cloud Security Source: Frost & Sullivan. Although security is recognised as an issue, few view it as insurmountable 9 25 50 16 OVERALL SAMPLE Our security concerns are such that our Cloud adoption will either be severely limited or delayed Security is a concern, but not a roadblock We think we shall improve security through adopting cloud We have no real Cloud-related security issues
  16. 16. 16 Cloud – Strong Growth Expected in 2014 Data Centre Services Europe: $5.6bn S. Africa: $342m +16% +12% Platform-as-a-Service APAC: $225m +68% Infrastructure-as-a-Service Europe: $2.3bn U.S.: $8.4bn APAC: $800m +68% +63% +52%
  17. 17. 17 Big Data – Even the Vendor Ecosystem is Complex! • 400+ providers • 2014 will bring new offers and new competitors • Consolidation will continue
  18. 18. 18 Poll Question Which of the following best describes how your company is engaging with Big Data analytics? 1) We don’t have a Big Data strategy 2) We’re at the proof of concept stage 3) We have deployed it in one or two areas 4) We are using Big Data to analyse how customers use our services 5) We are using Big Data to optimize internal operations
  19. 19. 19 Big Data – What to Expect in 2014 Privacy advocates will shift their focus from PII and CPNI to the NSA Retail/Wi-Fi Analytics (RWA) will level the playing field for traditional retailers Artificial General Intelligence (AGI) becomes commercially viable
  20. 20. 20 Big Data = Big Revenue Potential 24.8 27.9 31.5 35.5 40.0 0 5 10 15 20 25 30 35 40 45 2013 2014 2015 2016 2017 Global Market for Big Data, Analytics and Business Intelligence Solutions Revenue($Billion) 13% Growth in 2014 Source: Frost & Sullivan.
  21. 21. 21 Increasing complexity of IT/comms infrastructure (virtualization, UC) Tough macro-economic conditions Maturing VoIP and cloud technologies Large and untapped SMB market The Perfect Storm for Cloud UCC Growth of the virtual organization—increasingly dispersed and mobile workforce Hosted IP Telephony & UCC Services—Market Readiness Source: Frost & Sullivan New business models: UCaaS, cloud UCC Customer focus on flexibility and cost management Introduction of more compelling hosted/cloud service offerings
  22. 22. 22 The Hosted IP Telephony and UCC Services Market Source: Frost & Sullivan 2 SMBs require simple, cost-effective solutions; larger businesses need advanced functionality for some user profiles. 3 Nurturing a local channel with IP telephony/ UCC expertise and a consultative approach can be critical for service provider success. 4 Service quality and reliability will be increasingly important as the market matures. 5 Providers can differentiate and deliver greater customer value through customization and integration with other communications and business applications. 1 There is a huge untapped potential for compelling hosted IP telephony and UCC services globally. North America $1.9bn +31% Europe $3.2bn +29%
  23. 23. 23 Mega Trends that will Drive Opportunities for the ICT Sector Source: Frost & Sullivan analysis. N=1,640 (All respondents interested in Mega Trends) Q Below you will see the list of the nine Mega Trends we just introduced. Please help us prioritizing these Mega Trends by ordering them of importance for you from one to nine. 12% 13% 15% 22% 25% 26% 34% 39% 41% 46% 51% 63% 68% 0% 10% 20% 30% 40% 50% 60% 70% 80% Bricks and Clicks Urbanization: City as a Customer Innovating to Zero Beyond BRIC: The Next Game Changers Health, Wellness, and Well-Being Smart is the New Green Future Infrastructure Development Smart Cities Social Trends New Business Models: Value for Many Connected Living Connectivity and Convergence Future of Mobility
  24. 24. 24 Links to Mega Trends A Visionary View for the ICT Industry •Smart City Infrastructure •Pervasive Computing •Office of the Future •Enterprise IT in 2025 •Smart Manufacturing •Smart Transportation •Smart Healthcare •Smart Energy •Etc ICT Core Focus Areas Visionary ICT Deliverables Mega Trends Focus
  25. 25. 25 Vertical Market Focus is Essential Vertical Markets ICT Industry Mega Trends Visionary perspective – globally relevant trends that will drive societal and business change Vertical-specific opportunities for ICT providers Visionary viewpoint – how will Mega Trends impact the ICT landscape? On average, ICT respondents track 2.2 additional industries, with M&I, IPC, A&D, HC, A&T being the most relevant
  26. 26. 26 Drawing on Frost & Sullivan’s Wider Vertical Expertise • Smart Transport • Smart City Infra ICT Spend Model • Mobile Health • Smart City • Data Privacy • Smart Energy • Meter Data Mgt • Smart City Infra • Critical Infra • Smart City • Smart Manuf • M2M / IoT • Big Data • Cloud • M2M / IoT • Big Data • Cloud • Biometrics • Managed Security • LTE / NGN • M2M / IoT • Big Data • LTE / NGN • Big Data • Mobile Devices • M2M / IoT • Cloud • M2M /IoT • LTE • Data Privacy • Cloud Core ICT Coverage Connected Industries Programme Energy & Environment Automotive Industrial Automation Healthcare Aerospace & Defence Measurement & Instrumentation
  27. 27. 27 Next Steps Develop Your Visionary and Innovative Skills Growth Partnership Service Share your growth thought leadership and ideas or join our GIL Global Community Join our GIL Community Newsletter Keep abreast of innovative growth opportunities
  28. 28. 28 Your Feedback is Important to Us Growth Forecasts? Competitive Structure? Emerging Trends? Strategic Recommendations? Other? Please inform us by “Rating” this presentation. What would you like to see from Frost & Sullivan?
  29. 29. 29 Follow Frost & Sullivan on Facebook, LinkedIn, SlideShare, and Twitter http://twitter.com/frost_sullivan http://www.facebook.com/FrostandSullivan http://www.slideshare.net/FrostandSullivan http://www.linkedin.com/groups/Future-Growth-Opportunities-in-ICT-4876870
  30. 30. 30 For Additional Information Chiara Carella Head of Corporate Communications Frost & Sullivan +44 (0) 207 343 8314 chiara.carella@frost.com Ajay Sule Business Unit Leader, EIA Information & Communication Technologies +44 20 7343 8301 ajay.sule@frost.com Adrian Drozd Research Director, Europe Information & Communication Technologies +44 1865 398699 adrian.drozd@frost.com