Purpose: The slides provide an overview of trends impacting the information technology industry in 2017 Content: Summary information about trends in the marketplace, including trends drivers, spending trends, industry business cases, and adoption challenges. Also included are links to additional resources. How To Use This Report: This report is best read/studied and used as a learning document. You may want to view the slides in slideshow mode so you can easily follow the links Available on Slideshare: This presentation (and other Trend Reports for 2017) will be available publically on Slideshare at http://www.slideshare.net/horizonwatching Please 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.

1. 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.
A new cloud-based cognitive platform emerges
Bill Chamberlin, Distinguished Market Intelligence Professional, MD&I HorizonWatch
whchamb@us.ibm.com
February 15, 2017
Tech Trends to Watch in 2017

2. 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.
About This Trend Report
19Feb2017
 Purpose: The slides provide an overview of trends impacting the information
technology industry in 2017
 Content: Summary information about trends in the marketplace, including
trends drivers, spending trends, industry business cases, and adoption
challenges. Also included are links to additional resources.
 How To Use This Report: This report is best read/studied and used as a
learning document. You may want to view the slides in slideshow mode so you
can easily follow the links
 Available on Slideshare: This presentation (and other Trend Reports for
2017) will be available publically on Slideshare at
http://www.slideshare.net/horizonwatching
 Please 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.
2 Tech Trends to Watch in 2017 (External Version)

3. 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.
About IBM’s HorizonWatch Trends Research Program
 Our focus is on tracking, researching and analyzing emerging trends, business
issues, and technologies so we can:
– Develop better IBM strategies for the future
– Help our clients develop better strategies for the future
 While we do share some research externally, our primary audience is IBM
employees
 The program has been active since January 2001
3 19Feb2017 Tech Trends to Watch in 2017 (External Version)

4. 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.
“Segment” Description
2017 Tech Platform Trends
These topics are the current core technology growth categories. These are the topics that
make up the '3rd IT Platform' and are all topics that our clients are all focused on.
Emerging Tech Trends
These emerging (typically 2017-2025) tech trend topics are growing in importance. These
trends have the potential to be disruptive to current business processes, business models and
entire industries.
Longer Range Tech
Trends
These trends are longer-range (2025- 2050). They are all interesting and have the potential to
disrupt our industry and our client’s businesses. Have ideas on those types of trends?
Vertical Industry Topics
As the 'Third Platform' matures, vertical solutions are becoming much more important. There
will be an explosion of new applications and services built off this new platform.
Business Trends
Business trends are important to watch as they can enable and accelerate the adoption of
technology trends.
Consumer Trends
Consumer trends can also enable and accelerate the adoption of technology trends within the
enterprise. Many business technology trends are a direct result of a consumer technology
trend.
There are over 120 topics on the current IBM
HorizonWatch Trends Radar List
4
"We combine crowdsourcing and secondary research scanning and analysis to identify what is trending"
19Feb2017 Tech Trends to Watch in 2017 (External Version)

5. 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.
1. Provide context on what we see trending/what trends to be aware of
2. Share our research agenda and focus for 2017
– Current Platform - Trends to watch
– Emerging Trends - 23 to watch
Objectives of this deck
5 19Feb2017 Tech Trends to Watch in 2017 (External Version)

6. 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.
The current IT Platform (2017) is comprised of the
following enabling technologies and capabilities
6
1. Cloud Computing
2. AI/Cognitive Computing
3. (Modern) System Infrastructure
4. Mobile Devices
5. Internet of Things
6. Security
7. Big Data Platforms & Tools
8. Analytic Solutions
9. Collaboration Platforms & Tools
19Feb2017 Tech Trends to Watch in 2017 (External Version)

7. 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.
Like a tree grows from it’s roots, a whole new set of
trends will branch out from this cognitive platform
7
Some Examples….
1. Conversational Services & Chatbots
2. Blockchain
3. Robotic Process Automation (RPA)
4. Service Robots
5. Industrial Robotics
6. Robotic Logistics
7. Drones
8. Driverless Vehicles
9. Enterprise Wearables
10. Augmented Reality
11. Virtual Reality
12. Fog (Edge) Computing
13. Quantum Computing
14. Affective Computing
15. Swarm Computing
19Feb2017 Tech Trends to Watch in 2017 (External Version)

8. 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.
The new IT platform will enable the 4th wave of
economic revolution
8
1st 2nd 3rd 4th
Key
Technologies
Steam Engine Combustion Engine,
Electricity
Computers, Internet Cloud, AI, Quantum
Computing, Nanotechnology,
Blockchain
Key Resource Coal / Iron Steel / Oil Silicon / Internet Sensors, Data, Renewables,
Next-Gen Nuclear
Manufacturing Machinery, Tooling,
Interchangeable parts
Assembly Line Just in Time, Programmable
machines
Intelligent Automation,
Robots, Robotics
Transportation Trains, Canals, Ships Bikes, Cars, Buses,
Planes
Commercial, Infrastructure,
Electrification
On demand, Swarming
Communication Telegraph /
Newspapers
Phone, Radio, Printed
Ads
TV, Screens, Internet,
SmartPhone, Wireless, Social
Cryptography, AR/VR,
Holographic, Photonics
Financial
Services
Paper Money, Stock
Exchanges
Checks Credit, Funds, Credit Cards,
online payments
Blockchain, Digital Currency
Healthcare Traditional / Medical
Classification
Organic Chemistry,
Microbiology
Drug Development, Molecular,
DNA
Life enhancement & extension,
Bio-Printing
Food Crops, Ranches Machinery, Fertilizers,
Irrigation
Science, Chemistry,
Corporations
3D Printed, Plant based
Clothing Cotton, Power Loom Synthetics Large Retailers Custom, 3D Printed
Companies /
Sectors
Banks, Railways Ford, GM, US Steel,
GE, Chrysler, Standard
Oil, Amoco, CBS,
AT&T
Alphabet, Amazon, Apple,
Comcast, Cisco, Facebook,
IBM, Intel, Microsoft, Samsung
?? ?? ??
Source: Morgan Stanley: Technology: Disruptions and productivity growth in the next decade of the digital revolution, IBM HorizonWatch
19Feb2017 Tech Trends to Watch in 2017 (External Version)

9. 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.
9
Industrial Intelligent Automation will
be enabled by IoT, Cognitive/AI,
Analytics, Intelligent Machines and
Assembly Lines, Robots and Robotics,
Edge (Fog) Computing and Swarming
Technology
The future of manufacturing is intelligent automation
19Feb2017 Tech Trends to Watch in 2017 (External Version)

10. 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.
We are seeing an increased number of robots
designed for industry specific applications
Connie (Concierge)
Tug (Hospitals)Fetch (warehouse)Botlr (Hotel supplies)
Robonaut (NASA)
Kompaï (elder care)
10
Tally (Retail) LoweBot (Retail)
Molly (Kitchen)
Pepper (emotion
detection / advisor) Baxter (repetitive tasks)
19Feb2017 Tech Trends to Watch in 2017 (External Version)

11. 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.
The future of farming involves robots and drones
Hortibot (weeding)
Bonirob (weeding & fertilizing)
LettuceBot (thinning)
Precision Farming
Yamaha RMAX (Fertilizing)
Image sources: see speaker notes
11 19Feb2017 Tech Trends to Watch in 2017 (External Version)

12. 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.
12
Technologies such as IoT, Cognitive/AI, analytics, advanced vehicle
communications, edge (fog) computing and swarming technology, will enable
driverless on-demand vehicles… virtually eliminating accidents, reducing
congestion and pollution, while increasing productivity.
Source: US Department of Transportation
Intelligent Automated Transportation Systems
19Feb2017 Tech Trends to Watch in 2017 (External Version)

13. 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.
Driverless cars get all the press but think about all the
other autonomous vehicles that are coming…
Semi’s Construction Equipment
Cargo Ships
Cargo Planes
Trains
Delivery vehicles
13 19Feb2017 Tech Trends to Watch in 2017 (External Version)

14. 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.
14
Enabling technologies will
include IoT, AI, Cloud, Fog
Computing, Swarming
Technology, Quantum
Computing technology.
Companies to watch:
• Uber
• Airbus
• Kitty Hawk / Zee.Aero
• Joby Aviation
• Urban Aeronautics
• Lilium Aviation
• AeroMobile
• Volocopter
Image by: Chris J Magdalenski
The future of air transportation will be autonomous
and on demand
19Feb2017 Tech Trends to Watch in 2017 (External Version)

15. 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.
The Future of Work: The organizational structure will
look something like this….
Management
Smart Robots,
Vehicles & Things
Employees
Smart Robots &
Things
Cognitive Coach
Customers
Smart Robots &
Things
Cognitive Coach
Other
Stakeholders and
their “Coaches”
Cognitive Coach
15 19Feb2017 Tech Trends to Watch in 2017 (External Version)

16. 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.
The Future of Work will involve a partnership between
humans and cognitive systems technology
Cognitive Systems will excel at
 Locating Knowledge
 Pattern Identification
 Natural Language
 Machine Learning
 Eliminating Bias / Emotion
 Endless Capacity
Humans will excel at
 Common Sense
 Morals
 Imagination
 Compassion
 Abstraction
 Dilemmas
 Dreaming
 Creativity
 Generalization
 Judgement
16 19Feb2017 Tech Trends to Watch in 2017 (External Version)

17. 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.
The future (2040-50) IT platform will be very fast and
optimized for distributed cloud-based cognitive apps
17
Characteristics:
• Distributed / Edge Computing
• Secure
• Data as an Asset
• Blockchain
• Analytics
• Cognitive
• UX by Design
• Very Fast  Zettascale computing (1021)?
19Feb2017 Tech Trends to Watch in 2017 (External Version)

18. 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.
Let’s look at the some trends happening around the
cognitive era platform
18
• Security
• System Infrastructure
• Cloud Computing
• AI/Cognitive Computing
• Mobile Devices
• Internet of Things
• Analytics
19Feb2017 Tech Trends to Watch in 2017 (External Version)

19. 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.
Security: Trends to watch in 2017… and beyond
19
 Increased pressure on CISOs
 Security services in demand
 Focus turns to “Response and Remediation”
 Growth in SIEM, IAM, mobile security and
services
 Edge of IoT devices and apps create new
security revenue opportunities
 Cognitive security
IBM: Step up to the Cognitive Era with
Watson for Cyber Security
“Built upon security intelligence, cognitive
solutions generate not just answers, but
hypotheses, evidence-based reasoning
and recommendations for improved
decision making in real time. As a result,
cognitive security will help address the
current skills gap, accelerate responses
and help reduce the cost and complexity
of dealing with cybercrime.” IBM
19Feb2017 Tech Trends to Watch in 2017 (External Version)

20. 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.
Systems Infrastructure: Trends to watch in 2017 …
and beyond
20
 Migration to Cloud continues
 Shifts in vendor landscape
 Popularity of x86 and Linux OS
 Emerging tech to watch
 Hyperconverged infrastructure
Blog: IBM Systems Blog
451 Research: 40% of Enterprises Are
Using Hyperconverged Infrastructure
19Feb2017 Tech Trends to Watch in 2017 (External Version)

21. 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.
Cloud Computing: Trends to watch in 2017 … and
beyond
21
 Convergence of IaaS and PaaS Cloud services
 AI and IoT use cases drive cloud adoption
 Industry Clouds will be one of the fastest growing
segments
 Containers will alter cloud platform and
management strategies
 Cloud hyperscale providers growth creates
virtuous cycle
IBM developerWorks: 5 Things to Know
about Shifts in Key Business Drivers for Cloud
Computing Usage
“As enterprises continue to focus on
implementing a cloud infrastructure, many
still face roadblocks when it comes to
hiring candidates with the right skills.” CIO
19Feb2017 Tech Trends to Watch in 2017 (External Version)

22. 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.
Mobile Enterprise: Trends to watch in 2017 … and
beyond
22
 Incorporating new technologies
 IoT projects drive mobile initiatives
 Developers demand better tools and UX
 Self-Service analytics capabilities
 Managing apps and information
 Security and real-time risk awareness are top
concerns
IBM: How a mobile development platform
can help IT pros cut through clutter
IBM & SMG: 2016 Mobile Security &
Business Transformation Study
19Feb2017 Tech Trends to Watch in 2017 (External Version)

23. 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.
Internet of Things: Trends to watch in 2017 … and
beyond
23
 IoT drives demand new technologies
 Early adopters move to larger projects
 Innovation occurs with IT & Operational Technology
Integration
 Increased focus on “Edge Computing”
 IoT is a solutions play, driven by consulting
 IoT drives “data economy”
 Security issues remain
 IoT is a solutions play, driven by consulting
IBM 3 trends driving IoT innovation
“The Internet of Things will be one of
the primary drivers of the digital
transformation that enterprises will
undergo in the coming years, creating a
self-learning environment that will drive
digital disruption in physical world.” IBM:
Top five Internet of Things trends for 2017
19Feb2017 Tech Trends to Watch in 2017 (External Version)

24. 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.
Analytics: Trends to watch in 2017 … and beyond
24
 Key driver is IoT data
 Focus on data and source agnostic analytic tools
 Emergence of data lakes
 Spark / Hadoop growth continues
 Rise of machine learning
 LOB influence grows
 Self service analytics
Forbes Driving Value By
Monetizing Data From The
Internet Of Things
IBM: Analytics: Dawn of the cognitive era
19Feb2017 Tech Trends to Watch in 2017 (External Version)

25. 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.
AI/Cognitive Computing: Trends to watch in 2017 …
and beyond
25
 VCs and startups
 Patents
 Acquisitions continue to accelerate
 Vendors court developers to their platforms
 Consumer AI tech drives market
 Conversational services explode
World of Watson: Ginni Rometty keynote
IBM: The cognitive advantage report
19Feb2017 Tech Trends to Watch in 2017 (External Version)

26. 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.
Other trends we are watching in 2017
26
1. Conversational Services & Chatbots
2. Blockchain
3. Augmented Reality
4. Virtual Reality
5. Enterprise Wearables
6. Industrial IoT
7. Fog (Edge) Computing
8. Industrial Robotics
9. Robotic Logistics
10.Enterprise Service Robots
11.Enterprise Drones
12.Driverless Vehicles
13.Vehicle to Vehicle Communications
14. Intelligent Vehicle Transportation
15.On Demand Aviation
16.Swarm Computing
17.Cognitive Computing & Education
18.Healthcare Analytics
19.Sports Technology
20.Data Monetization
21.Digital Marketing
22.The API economy
23.Robotic Process Automation
24.Affective Computing
25.Quantum Computing
26.Software Development
19Feb2017 Tech Trends to Watch in 2017 (External Version)

27. 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.
Conversational Services and Chatbots: Trends to
watch in 2017 … and beyond
27
 Experimentation accelerates
 Potential benefits attract adopters
 Awareness grows of top industries & use cases
 Characteristics of best services
 Vendors court developers
VentureBeat: The state of bots: 11
examples of conversational commerce in
2016
“User experiences with such applications
remain disappointing. Although it is easy to
get a system to produce words, none of the
current agents or bots display general
conversational competence.” IBM Research
Conversational UX Design CHI 2017 Workshop
19Feb2017 Tech Trends to Watch in 2017 (External Version)

28. 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.
BlockChain: Trends to watch in 2017 … and beyond
 Activity builds in Financial Services
 Awareness / activity also builds across other verticals
 Standards
 Blockchain will enable a secure IoT
 Apps developed with an eye for vertical clouds
 Regulation
 Technical challenges
28
“Blockchain is beginning to play a
major part in the Internet of Things
by enhancing security, enabling
inclusion of low-value devices to be
increasingly viable and making
managing a device easier for
decades to come.” IBM: What
blockchain means for you, and the Internet
of Things
Forbes: How Blockchain Will Evolve In
2017
CB Insights: Banking Is Only The Start: 27
Big Industries Where Blockchain Could Be
Used
19Feb2017 Tech Trends to Watch in 2017 (External Version)

29. 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.
More Insights on technology trends are available
29
Other slide decks in this 2017 Trend Report series will be posted to Slideshare
You are also invited to check out the following IBM websites and resources
– IBM Academy of Technology
– IBM Institute for Business Value
– IBM Research and Research News and 5 in 5
– IBM’s THINK blog
– IBM Think Academy on YouTube
19Feb2017 Tech Trends to Watch in 2017 (External Version)