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ICT Outlook 2016
Abhishek Chauhan
Senior Director, Digital Transformation Practice
January 2016
Key events that shaped 2015
2
This image cannot currently be displayed.
This image cannot currently be displayed.
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This image cannot currently be displayed.
Movers & Shakers of 2015
3
#1 Services to drive spending in Internet of Things
4
Growth rate
26.8%
CAGR 2015-2020
Total spending
US$24.2B
2015
Total spending
US$79.3B
2020
-
10
20
30
40
50
60
70
80
90
2015 2018 2020
Bn
APAC IoT Spending
Services
Hardware
Software
Major IoT Initiatives
5
Preparing for the Next Wave of ‘Cloudification’
6
2010
‘Cloudification’ of IT
2016
‘Cloudification’ of OT
#2 Security paradigm shifts to physical domain
7
2014 2015
0%
10%
20%
30%
40%
50%
60%
70%
80%
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Cyber Crime Cyber Espionage
Cyber War Hacktivism
PercentageofHighProfileAttacksRecorded(2014)
0%
10%
20%
30%
40%
50%
60%
70%
80%
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Cyber Crime Cyber Espionage
Cyber War Hacktivism
PercentageofHighProfileAttacksRecorded(2016)
Source: Frost & Sullivan, Hackmagaddeon
#3 Data Center construction frenzy
8
Total raised floor space expected to double in 10 years.
Factors driving building frenzy:
Strong economic growth – China,
India and Indonesia.
Global players expanding in APAC
– AWS, Equinix, DRT, Microsoft,
etc.
Local players gaining reckoning,
especially in China, India, and
Indonesia.
New age businesses driving strong
adoption.
110.8
204.6
70.8
181.4
2015 2025
Captive Outsourced
Asia-Pacific Data Center Space Forecasts
(mn sq. ft.)
181.6
386.0
Data Center building activity heat map
9
Australia & New Zealand
APAC Hyperactive
Gaining Momentum
Limited Activity
#4 Product as a Service Model
10
>70%of fortune 500 companies will operate
product-as-a-service business models
15%
13%
8%8%
8% 3%
Energy
Healthcare
Telecommunication
Aviation
Electronics
Automotive
Examples of Product as a Service business model
11
Ownership Access
GE’s fuel-use data analytics
Shared-usage model – New
mobility services .
Allows physicians to monitor
patients’ devices.
Customers can improve their
game performance while
Babolat receives useful data to
improve product quality.
Industry Company Product Service
Aviation
GE
(GE Aviation)
Manufacturer of aircraft
engines and systems
Value added services
such as Flight Efficiency
Services through data
analytics
IT HP Hardware provider
Separation of Products
and services business
Automotive
Daimler
(Car2Go)
Manufacturer of cars
Carsharing service on a
pay-per-usage system
Toyota (Dash)
GM
(RelayRides)
Healthcare Biotronik
Medical device
manufacturer
Health-monitoring
system
Consumer
goods
Babolat (Play
Pure Drive)
Fitness equipment
manufacturer
Smart technology
allows data analytics
and value added
services
B2B
B2C
Improved focus on services
Digital Transformation Leading to New Business Models
12
Source: Frost & Sullivan
Enable
Utilities
Automotive
Healthcare
Building Management
Manufacturing
Urban Management
Smart Grids
Connected Cars
Connected Health
Smart Buildings
Smart Manufacturing
Smart Cities
Transform
2016 Predictions
13
1 Industrial IoT cloud takes off
2 Security moves to Physical domain
3 Datacenter building frenzy accelerates
4 Product as a Service model emerges across industries
5 Digital Transformation leading to new business models
Frost & Sullivan, the Growth Partnership Company, works in collaboration with
clients to leverage visionary innovation that addresses the global challenges and
related growth opportunities that will make or break today’s market participants.
For more than 50 years, we have been developing growth strategies for the
Global 1000, emerging businesses, the public sector and the investment
community. Is your organization prepared for the next profound wave of industry
convergence, disruptive technologies, increasing competitive intensity, Mega
Trends, breakthrough best practices, changing customer dynamics and emerging
economies? Contact Us: Start the Discussion
www.frost.com

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ICT Outlook 2016

  • 1. ICT Outlook 2016 Abhishek Chauhan Senior Director, Digital Transformation Practice January 2016
  • 2. Key events that shaped 2015 2 This image cannot currently be displayed. This image cannot currently be displayed. This image cannot currently be displayed. This image cannot currently be displayed.
  • 3. Movers & Shakers of 2015 3
  • 4. #1 Services to drive spending in Internet of Things 4 Growth rate 26.8% CAGR 2015-2020 Total spending US$24.2B 2015 Total spending US$79.3B 2020 - 10 20 30 40 50 60 70 80 90 2015 2018 2020 Bn APAC IoT Spending Services Hardware Software
  • 6. Preparing for the Next Wave of ‘Cloudification’ 6 2010 ‘Cloudification’ of IT 2016 ‘Cloudification’ of OT
  • 7. #2 Security paradigm shifts to physical domain 7 2014 2015 0% 10% 20% 30% 40% 50% 60% 70% 80% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Cyber Crime Cyber Espionage Cyber War Hacktivism PercentageofHighProfileAttacksRecorded(2014) 0% 10% 20% 30% 40% 50% 60% 70% 80% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Cyber Crime Cyber Espionage Cyber War Hacktivism PercentageofHighProfileAttacksRecorded(2016) Source: Frost & Sullivan, Hackmagaddeon
  • 8. #3 Data Center construction frenzy 8 Total raised floor space expected to double in 10 years. Factors driving building frenzy: Strong economic growth – China, India and Indonesia. Global players expanding in APAC – AWS, Equinix, DRT, Microsoft, etc. Local players gaining reckoning, especially in China, India, and Indonesia. New age businesses driving strong adoption. 110.8 204.6 70.8 181.4 2015 2025 Captive Outsourced Asia-Pacific Data Center Space Forecasts (mn sq. ft.) 181.6 386.0
  • 9. Data Center building activity heat map 9 Australia & New Zealand APAC Hyperactive Gaining Momentum Limited Activity
  • 10. #4 Product as a Service Model 10 >70%of fortune 500 companies will operate product-as-a-service business models 15% 13% 8%8% 8% 3% Energy Healthcare Telecommunication Aviation Electronics Automotive
  • 11. Examples of Product as a Service business model 11 Ownership Access GE’s fuel-use data analytics Shared-usage model – New mobility services . Allows physicians to monitor patients’ devices. Customers can improve their game performance while Babolat receives useful data to improve product quality. Industry Company Product Service Aviation GE (GE Aviation) Manufacturer of aircraft engines and systems Value added services such as Flight Efficiency Services through data analytics IT HP Hardware provider Separation of Products and services business Automotive Daimler (Car2Go) Manufacturer of cars Carsharing service on a pay-per-usage system Toyota (Dash) GM (RelayRides) Healthcare Biotronik Medical device manufacturer Health-monitoring system Consumer goods Babolat (Play Pure Drive) Fitness equipment manufacturer Smart technology allows data analytics and value added services B2B B2C Improved focus on services
  • 12. Digital Transformation Leading to New Business Models 12 Source: Frost & Sullivan Enable Utilities Automotive Healthcare Building Management Manufacturing Urban Management Smart Grids Connected Cars Connected Health Smart Buildings Smart Manufacturing Smart Cities Transform
  • 13. 2016 Predictions 13 1 Industrial IoT cloud takes off 2 Security moves to Physical domain 3 Datacenter building frenzy accelerates 4 Product as a Service model emerges across industries 5 Digital Transformation leading to new business models
  • 14. Frost & Sullivan, the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today’s market participants. For more than 50 years, we have been developing growth strategies for the Global 1000, emerging businesses, the public sector and the investment community. Is your organization prepared for the next profound wave of industry convergence, disruptive technologies, increasing competitive intensity, Mega Trends, breakthrough best practices, changing customer dynamics and emerging economies? Contact Us: Start the Discussion www.frost.com