HorizonWatch: Technology Trends To Watch In 2016

© 2016 IBM Corporation
IBM Market Development & Insights
Technology Trends To Watch In 2016
The CAMSS platform paves the way for Cognitive IoT
IBM HorizonWatch 2016 Trend Report – External Version
Contact: Bill Chamberlin, Principal Client Research Analyst / HorizonWatch Community Leader
February 5, 2016

Table of contents
 Preface
 2016 Environment
 Top Trends to Watch In 2016
 Important Trends to Watch within the Top Trends
 15 Emerging Trends To Watch
 Appendix
 HorizonWatch Resources
2 05Feb2016 HorizonWatch: Technology Trends To Watch In 2016 (external version)

Table of contents
 Preface
 Appendix

About this report
This annual trend report, developed for an internal IBM audience, has been published for
IBM Clients.
The objective is to develop a list of the most important current technology trends…the
ones impacting the IT industry over the next 12 months. In doing so, we can all
improve our understanding of these important technology trends.
Note: This report is based on internal IBM analysis and is not meant to be a statement of
direction by IBM nor is IBM committing to any particular technology or solution.
This client version (and other HorizonWatch Trend Reports for 2015) will be available
publically on Slideshare at http://www.slideshare.net/horizonwatching

Table of contents
 Preface
 Appendix

Global Economy: Slow return to growth. Fed rate hikes. China
deflation? EU/EM politics.
6
World Economic Forum: Davos
2016 - The Global Economic Outlook
1. U.S. economy slows / Fed
tightens rates
2. Questions about growth in China
3. Rising income inequality
4. Declining productivity
5. Divergence in monetary policies
among major economies
6. Build-up of sovereign and
corporate debt
7. Significant adjustment in
commodity prices
World Economic Forum Summary:
05Feb2016 HorizonWatch: Technology Trends To Watch In 2016 (external version)

Top 10 biggest global challenges
7
1. Food security
2. Inclusive growth
3. Future of work
4. Climate change
5. Future of global finance
6. Future of the internet
7. Gender equality
8. Global trade and investment
9. Long-term investing
10. Healthcare
Source: World Economic Forum
World Economic Forum: What are
the 10 biggest global challenges?

We are now in the deployment phase of the 5th wave of economic and
social transformation
8 Source: HorizonWatch, IBM Market Insights05Feb2016 HorizonWatch: Technology Trends To Watch In 2016 (external version)

In the deployment phase, we are entering a new Cognitive
Computing era driven by data harvested from the Internet of Things
9
3 phases of the internet
4 generations of computers
New Platform
1900’s 2016
Static
Mainframe Client/server PC Mobile “Things”
Web2.0
Characteristics of Computing Systems
Tabulating Programmable Cognitive
Social/Mobile
+
+
+
+
+
+
+
+
+
Volume of data

Table of contents
 Preface
 Appendix

The 2016 HorizonWatch Technology Trends To Watch list
11
1. Industrial IoT
2. Enterprise Robots and Drones
3. Digital Transformation: The API-
economy
4. Digital Marketing &
Personalization of UX
5. The Data Economy
6. Internet of Things Security
7. Enterprise Wearables
8. Healthcare IoT and Analytics
9. Intelligent Vehicle Transportation
10. Cognitive Computing & the Future
of Education
11. Industry Clouds
12. Software Development
13. BlockChain
14. Affective Computing
15. Quantum Computing
Security
Cloud Computing
Mobile Computing
Social Business
Internet of Things
Analytics Platforms & Tools
Analytics Solutions
Cognitive Computing
Emerging Trends

Table of Contents
 Preface
 Appendix

13
Summary: Top Trends To Watch In 2016
13
1 Security
A C-Level and boardroom issue. Complexity of external threats high with cloud, social, big data, mobile, and IoT.
Spending is increasing, but companies are looking to reduce number of vendors. Strong demand for professional
services and network security applications. Demand increases for SIEM, IAM, mobile security solutions.
2
Cloud
Computing
Hybrid adoption grows. Cloud brokerage as an account control point. Development platforms mature. Enterprises
demand vertically tailored cloud solutions. Containers are a must-have. Increased demand for IoT platforms
drives up demand for cloud solutions. Watch the intersection with mobile, IoT, cognitive and security trends.
3
Mobile
Computing
Device growth slows. Application growth drives initiatives. Mobile apps that make use of analytics are in high
demand. Application management solutions are in demand, but enterprises are still in early stages of Enterprise
Mobility Management deployments. Security and real-time risk awareness are top concerns.
4 Social Business
The social journey continues. Connecting people before, during and after every task, every business transaction.
Mobile and social combined creates an “always on” work culture. Social analytics is a growth area. Developers
are demanding innovative platforms, tools and APIs. The competitive landscape is crowded.
5
Internet of
Things
Continued explosive growth of connected devices. IoT data is the new currency. Developers rush to build apps.
Vendors rush to court developers. Today’s small IoT projects pave the way for future transformation. Security and
Interoperability remain barriers. 2016 is year of OT and IT business integration. Big services opportunity
6
Analytics
Platforms &
Tools
Explosion of new data continues. How to collect, store, manage the data securely so it can be analyzed?
Interoperability of databases a requirement. Rise of low-cost data store alternatives. Hadoop, Cloudera, Spark.
Users demand improved experience. Decision makers increasingly ask for real time analysis of data streams.
Cloud adoption continues. IoT & digital drives demand for distributed data.
7
Analytics
Solutions
Organizations become more data-driven, spurring analytics solution demand. IoT drives analytics services
demand. Demand for improved back- and front-office solutions. IT and LOB participate in both buying decisions
and deployments. Changes in culture, skills, business processes required. Analytic skills in huge demand.
Integration and management services in demand
8
Cognitive
Computing
Expect increased ecosystem activity. Consultants partner with solution providers. Low-cost service providers enter
market. Acquisitions accelerate. Vendors court developers by improving their APIs and platforms. Integration of
cognitive computing capabilities with cloud, IoT, and other platforms will emerge as a priority. Vendors rush to
focus on industry-specific solution offerings. First mover advantage window of opportunity still open for now.
Source: MD&I HorizonWatch05Feb2016 HorizonWatch: Technology Trends To Watch In 2016 (external version)

Security: 5 trends to watch in 2016
14
1. Market growth. The security market continues to grow
as the result of increased number of endpoints, increased
complexity and new external threats
2. Enterprises look to services vendor for help. Security
services, especially professional services, are in
increased demand. Network security services is a large
segment. Expect strong demand for both mobile
enterprise management and managed security services.
3. Enterprises reduce the number of security vendors
with which they work. Enterprises will place a higher
value on solutions from vendors with broad security
portfolios.
4. Growth in SIEM, IAM, mobile security and services.
Enterprises will increase their demand for security
solutions such as identity and event management (SIEM),
Identity and Access Management (IAM) as a Service and
mobile payment security in 2016.
5. Internet of Things applications create new security
revenue opportunities. The increased security risk of
IoT over pure IT systems remains a key challenge for IoT
implementations. Enterprise look to consultants for help.
IBM Security video: Collaborate
for Better Cybersecurity Defenses
Source: MD&I HorizonWatch, TBR
“The global cyber security Market to
grow from $106.32 Billion in 2015 to
$170.21 Billion by 2020, at a Compound
Annual Growth Rate (CAGR) of 9.8%.”
MarketsandMarkets
“By 2017, 75% of large enterprises will
receive custom threat intelligence
information tailored to their industry,
company, brand, and environment” IDC

Cloud Computing: 6 trends to watch in 2016
15
1. Growing hybrid adoption. Hybrid is the end game for
the most enterprises. Enterprises increasingly demand
IT services as integration and management are
complicated.
2. Cloud brokerage services. Both enterprises with
more mature cloud environments and new cloud
adopters will realize the benefits of brokerage
platforms, tools and services.
3. Development platforms mature. Cloud development
and test platform markets consolidate with Cloud
Foundry the leading open-source option. Enterprises
seek vendors with simplified development options,
more monetization options and large ecosystems.
4. Enterprises demand vertical solutions. Vertical
solutions, sales and consulting teams will be desired,
bringing strategy consultancies to the forefront of
enterprise purchasing decisions.
5. Containers are a must-have. For both IaaS and
PaaS vendors, development and integration services
around containers are in demand.
6. IoT platforms drive cloud solutions. Cloud allows
for secure storage of massive amounts of structured
and unstructured data central to IoT core function.
IBM Center for Applied Insights:
Growing up hybrid
“More than 80% of enterprise IT
organizations will commit to hybrid cloud
architectures by 2017, vastly driving the
rate and pace of change in IT
organizations” IDC
"End users often cite the agility of IT
infrastructure and economic reasons as
drivers for cloud adoption, but we also
expect that the proliferation of next
generation applications born and run in
the cloud will fuel its further growth."” IDC

Mobile Enterprise: 5 trends to watch in 2016
16
1. Enterprises pair mobile initiatives with analytics.
Expect growth in back-end of mobile enterprise platforms
analytics (e.g. sales and cloud collaboration platforms),
analytics for VoIP, customer resource management and
other productivity software platforms.
2. Applications drive mobile initiatives. Enterprise IT is
leveraging applications accessed by a plethora of mobile
endpoints to provide a degree of stability to their chaotic
infrastructures.
3. Managing apps and information. Application and
information management software helps enterprises
reduce the complexity of managing increased amounts of
applications as well as a heady volume of information
generated and accessed by endpoints.
4. IBM/Apple Partnership. Apple and IBM are redefining
the mobile enterprise one industry and role at a time by
combining the exponential power of corporate data with
the world’s best mobile technology.
5. Security and real-time risk awareness are top
concerns. Increased in mobile devices accessing a
growing number of applications that use corporate
resources and data cause security professionals to want
to know immediately when security is compromised.
bluemine Mobile
Enterprise (feeds updated daily)
“Mobility continues to challenge
enterprises across a number of fronts
led by security, data integration, and
device management. But the prognosis
is good if not extremely good when we
consider the massive new sources of
efficiency and innovation that mobility
delivers” IDC

Social Business: 4 trends to watch in 2016
17
“Collaboration itself isn't the goal. The
goal is improved business outcomes.”
Gartner
1. Continued demand for social business solutions. The
need for connection and collaboration across mobile
devices, desktops and other devices continues to drive
social business technology adoption, despite challenges
regarding culture change.
2. Business Process Transformation: Embedding social
and collaboration technology into traditional front and
back office applications does not insure success.
Enterprises will need to develop new business processes,
systems, and planning methodologies. New skills will be
required.
3. Social analytics is a growth area. As the market
matures, the rise of the data economy will drive demand
for social analytics. Enterprises focus on developing the
analytic capability needed to mine the conversations of
customers, advocates, influencers and their collective
networks
4. Developers demand innovative platforms and tools.
Collaboration technologies need to be fully integrated into
new enterprise applications. Developers need to leverage
mobile, cloud, big data/analytics, and IoT initiatives and
thus are looking for innovative collaborative platforms and
tools.
IBM Infographic: Social Business
“The ability to link customer experience,
workforce, commerce, business
networks, and innovation together in
order to deliver a holistic view of digital
and social transformation is at the
epicenter of where businesses will find
differentiation” IDC

Internet of Things: 6 trends to watch in 2016
18
1. IoT is a growth market. Hundreds of billions of dollars will be
spent on IoT projects over the next five years, benefitting the
broad technology market.
2. Small IoT projects pave the way for future transformation:
Low-cost, intelligent sensors and devices, networks and
gateways enable a new path to IoT. Small IoT projects with an
inexpensive approach, specific goals and planned rapid ROI.
3. IoT drives business integration opportunities by marrying
IT & OT. Business integration occurs when IoT vendors, LOB
and IT teams drive a new outcome, creating solutions that
coordinate client’s business needs, operational technologies
(OT) and IT.
4. Data is the new currency: Data acquired through the IoT can
and will be used by third parties, requiring a new kind of IoT
business: the data broker
5. IoT drives demand for other solutions, especially analytics
and cloud computing. Virtually all types of IT products and
services will be used in IoT solutions with a large focus on
cloud and analytics technologies.
6. IoT is a solutions play, driven by consulting. The bulk of
IoT revenue will come from services, specifically consulting,
software, cloud and security. Business consulting helps identify
IoT opportunities, define IoT solutions and develop a data
security strategy.
IBM Video Watson Internet of
Things Platform - Welcome to
the era of cognitive IoT
“By 2019, 45% of IoT-created data
will be stored, processed, analyzed,
and acted upon close to, or at the
edge of, the network” IDC
“Internet of Things (IoT)-enabled
applications are poised to
revolutionize digital customer
experience and enhance digital
operational excellence” Forrester
Research

Big Data Analytics Platforms & Tools: 5 trends to watch in 2016
19
1. Interoperability of databases. Adoption of Internet of
Things (IoT) systems brings increased volume and
variety of data, enabling the data economy. Enterprises
demand simple ways to ingest data from multiple
sources and form factors.
2. Rise of low-cost data store alternatives (Hadoop,
Cloudera, Spark). Services companies are shifting data
to lower-cost data storage configurations, further
impacting traditional legacy analytics vendors.
3. Users demand improved interfaces and overall
experience. An increased backlog of legacy apps in
need of user interface (UI) modernization causes
pressure on IT. Many IT teams lack the skills on staff for
rapid solution development.
4. Cloud adoption/consumption. Cloud adoption of big
data storage solutions continues to grow. IT teams need
help with the transformation, causing increased demand
for services.
5. Developers demand improvements. Developers flock
to container technology, seeking simple configuration
management structures to rapidly push applications and
updates. They also demand easy ways to integrate data
from competing platforms.
IBM Center for Applied Insights:
Stories from data leaders
“Through 2020, spending on cloud-
based BDA technology will grow 4.5x
faster than spending for on-premises
solutions” IDC

Analytics Solutions: 6 trends to watch in 2016
20
1. Organizations become more data-driven, spurring
analytics solution demand. Enterprises worldwide
increasingly adopt analytics solutions to reduce costs and
fuel business outcomes.
2. IoT drives analytics services demand. Internet of
Things (IoT) complicates decisions about where to invest
analytics dollars, driving professional services demand,
led by consulting.
3. Distributed “Edge” Analytics: Expect increased
interest in pushing analytics closer to the edge devices
(e.g mobile devices, intelligent routers, sensor and
actuators)
4. Improved back- and front-office solutions. Customers
demand solutions that improve performance and
operational efficiency, reduce risk and assist with
compliance processes.
5. Predictive Analytics: Business leaders demand
predictive analytic algorithms and modeling techniques to
help them understand potential future trends in the data.
6. IT and LOB participate in both buying decisions and
deployments. Vendors must be able to address both IT
and Line of Business (LOB) requirements when delivering
forward-thinking advice and technical expertise.
IBM Analytics: Cognitive Analytics:
What’s coming in 2016?
“Advanced analytics solutions are
becoming increasingly popular in driving
business innovation and
experimentation, and creating
competitive advantage. Analytics
leaders must now exploit new business
models and ecosystems that will drive
the operation of algorithmic business”
Gartner

Cognitive Computing: 5 trends to watch in 2016
21
1. Leadership Required: As with any new technology, the
Cognitive Era will require leaders who are able to
transform business processes and corporate culture in
order to leverage the technology.
2. Integration with IoT and cloud. Enterprises want
cognitive systems that can be easily integrated with
emerging IoT and cloud platforms. IBM’s launch of an
integrated Watson IoT unit fills this gap.
3. Increased ecosystem activity. Consulting firms will
partner with cognitive solutions providers. Acquisitions
will accelerate as vendors aim to extend offerings. IBM
will lead the way, but expect more announcements from
companies like Google, Baidu, and Microsoft
4. Vendors increasingly court developers to their
platforms. To accelerate innovation and monetize
assets, platform players will increasingly target
development communities. Example: Microsoft, FB &
Google open sourced AI technologies in late 2015.
5. Pilots / Case Studies: Enterprises seek industry
specific thought leadership content, including case
studies and findings from early adopters within their
industries.
IBM: What is Watson?
“Smart machines are increasingly
penetrating customers' lives and
learning the behavior and preferences
of their owners. Some will become
smart agents that take actions on
behalf of their owners and become a
customer of digital commerce” Gartner
“By 2018, over 50% of developer teams
will embed cognitive services in their
apps (vs. 1% Today)” IDC

Table of Contents
 Preface
 Appendix
 Other HorizonWatch Resources

23
Summary: Top Emerging Trends To Watch In 2016
23
1 Industrial IoT
M2M, OT & IT systems converge. IIoT => digital transformation, data economy and adaptive supply chains. Ecosystem
partnership activities (e.g. GE & PTC Thingworx). New business models & revenue streams.
2
Enterprise Robots &
Drones
Commoditization of components. Improvements in technologies. Industry specific solutions in healthcare, agriculture,
manufacturing, etc., Drone collision avoidance systems, ‘highways’, logistics, video analytics
3 Digital: API Economy APIs drive digital transformation. Firms view APIs as strategic assets and software products.
4 Digital Marketing & UX Customer data a strategic asset. Data-driven marketing. Personalization technologies emerge. Mobile & social.
5 Digital: Data Economy
Data emerges as revenue source. Cross-enterprise integration unlocks data monetization opportunities. Rise in
connected devices and IoT platforms create new feeds. Personalization will be a key data economy driver.
6 IoT Security
IoT enables new types of security attacks. Services opportunity for 1) monitoring IoT systems/networks, 2) authentication
platforms, 3) Device and Edge security systems
7 Enterprise Wearables
Startups begin to focus on enterprise, pushing pilots and industry-specific solutions. Improvements in analytics, mobility
and security drives adoption. Design thinking is applied to enterprise wearables.
8 Healthcare Analytics
IoT drives digitalization and demand for analytics. Volume of patient data grows. Shift to personalized healthcare.
Providers restructure and demand analytics solutions. Integration of research and operational analytics
9
Intelligent Vehicle
Transportation
Safety will emerge as a key selling point for autonomous vehicles. Cost of autonomous vehicles must be reduced.
Advanced Transportation Management Systems make travel smarter, safer, faster. Vehicles leverage IoT. Vehicle
ownership questioned.
10
Cognitive Computing
& Education
Personalized learning is the future. Cognitive apps & robots will assist the learning process and improve retention.
Cognitive apps will mine the library of education content and improve the teacher / student experience.
11 Industry Clouds
LOB influence creates demand for industry clouds. Access to domain expertise and best practices is a key driver.
Industry specific data economies form & drive demand. First mover advantage still available, but closing.
12 Software Development
Increased rate of change stresses developer capacity. Developers demand new open source tools, processes, and
flexible platforms. Expect increased focus on UX & design principles. LOB demands mobile app versions of legacy apps.
13 Blockchain
Awareness and initiatives grow. It’s more than just digital currencies, but potential impact on Financial Services huge.
Linux Foundation unites industry leaders. Blockchain enables a secure IoT. Developers embed blockchain capabilities
into industry clouds.
14 Affective Computing
Detecting emotions from videos, audio, text, facial expressions and gestures is a growth market and important part of
future cognitive systems. Many potential applications. Companies to Watch: Affectiva, Realeyes, Sension, tACC, nVisio,
CrowdEmotion, PointGraB, Omek InteractivE, SoftKinetic, and Elliptic Labs
15 Quantum Computing
Mass market still many years away. Researchers focus on solving complex technical challenges. Governments continue
to invest huge sums of money. Companies to watch include MSt, D-Wave, Alphabet, IBM, Alibaba, Intel, and Toshiba.
Source: MD&I HorizonWatch05Feb2016 HorizonWatch: Technology Trends To Watch In 2016 (external version)

Table of Contents
 Preface
 Appendix
 Other HorizonWatch Resources

More Insights on Technology Trends are Available
25
Other slide decks in this IBM HorizonWatch 2016 Trend Report series have been
posted to Slideshare
You are also invited to check out the following IBM websites and resources
– IBM Academy of Technology
– IBM Center for Applied Insights
– IBM Institute for Business Value
– IBM Research and Research News and 5 in 5
– IBM’s THINK blog

HorizonWatch: Technology Trends To Watch In 2016

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HorizonWatch: Technology Trends To Watch In 2016