2013 Predictions: IT Market Trends

2013 IT Market Trends and Predictions

Applications IT Spend Analyst Summary Analytics

Mobile Cloud Database & Technology Hot Topics

IT Market Trends and Predictions for 2013

IT Spend GDP growth falls from 2012 while IT and software growth accelerate

Analyst Summary SAP’s innovation areas are aligned with 2013 market trends

Applications Industry focus, integration, and user experience redefine the application market

Analytics Usability, relevance, and speed will drive adoption of analytics

Mobile Enterprise mobility moves beyond bring your own device (BYOD)

Cloud Integration, platform, and services will be pivotal as the cloud market expands

Database & Technology “Big Data” evolves into the mainstream in 2013

Hot Topics Social, business networks, and emerging markets are highlighted for 2013

2013 IT Market Trends & Predictions

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2013 SAP AG. All Rights Reserved

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GDP Growth

IMF2 IHS1

IT Market Growth

Forrester4

SW Growth

Forrester4 IDC5 Gartner3

5.4%

2.9% 2.6%

IDC5

6%

Gartner3

4.2%

6.4%* 6.5%


GDP growth falls from 2012 while IT and software growth accelerate

IT Spend

Note: All growth rates in constant currency * Different methodologies used by IDC and Gartner to determine software growth Sources: 1IHS – “Top 10 Economic Predictions for 2013” – Dec 2012; 2IMF – “World Economic Outlook Database” – Oct 2012; 3Gartner – “Market Data Book 4Q 2012 Update” – Dec 2012; 4Forrester Research Inc – “Global Tech market Outlook 2013-2014” – Jan 2013; 5IDC – “Black book Q3 2012” – Nov 2012




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Source Trend #1 Trend #2 Trend #3 Trend #4 Trend #5

IDC1 Mobile proliferation New generation of industry solutions

M&A in cloud SaaS

Social network sprawl

Rapid growth in discovery and predictive analytics

Gartner2 Internet of things “Big Data” meets social

Actionable analytics

Mainstream in-memory computing

Mobile apps and HTML5

Saugatuck3 Mobility will dominate

Velocity of business

Integrated, vertically optimized cloud solutions

Analytics in cloud offerings

Evolution of IT organization

Forrester4 iPads in enterprise Cloud and smart computing Emerging markets Demand for

consulting services -

Deloitte5 Mobile only (and beyond)

Social reengineering and beyond

Design as discipline

Reinventing ERP engine

Finding the face of your data


Sources: 1IDC – “IDC Predictions 2013: Competing on the 3rd platform” – Doc # 238044 – Nov 2012; 2Gartner – “Top 10 Strategic Technology Trends for 2013” – Oct 2012; 3Saugatuck – “Looking Back and Forth: Ten Emergent Trends and Planning Positions for the 2013 Boundary – Free Enterprise” – Dec 2012; 4 Forrester Research Inc– “Global Tech market Outlook 2013 and 2014” – Jan 2013; 5Deloitte – “Technology trends 2013” – Dec 2012; 6UBS – “Global I/O: Technology” – Nov 2012

SAP’s innovation areas are aligned with 2013 market trends

Analyst Summary




http://www.deloitte.com/view/en_US/us/Services/consulting/technology-consulting/technology-2013/index.htm

Sources: 1IDC – “Predictions 2013: Competing on the 3rd platform” – Nov 2012; 2Gartner – “Predicts 2013: PPM leaders must embrace constant innovation and change” – Nov 2012; 3Gartner – “Predicts 2013: Application Integration” – Nov 2012; 4Ovum – “2013 Trends to Watch: Business Process Management” – Oct 2012; 5Ovum – “2013 Trends to Watch: Sustainability technology” – Oct 2012; 6IDC – “Insights Predictions 2013: Cross Industry Overview” – Dec 2012

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Enterprises will spend $65 billion on industry-specific solutions in 20131

58% of new investments in 2013 will involve direct participation by LoB executives1

Enterprise gamification will eclipse consumer gamification in 2013 and gamification market will grow 10x over next four years2

Application integration spend will increase by 33% from 2013 to 20163

User experience will be one of the most important criteria for product selection in 20134

Microsoft may strengthen its CRM/ customer experience offerings by acquiring a community management platform3

Investments in sustainability solutions will be influenced by challenging market conditions and volatile energy prices5

IT spend will grow fastest in healthcare, utilities, oil and gas, and mining verticals. Slowest growth will be in government6

Industry focus, integration, and user experience redefine the application market

Applications





Sources: 1Gartner – “High- Tech Tuesday Webinar: BI and Analytics Market Trends: 2020 Vision” – Dec 2012; 2Forrester Research Inc – “Global Tech market Outlook 2013-2014” – Jan 2013”; 3Gartner – “The SMB market in 2013 Drivers, Trends & Predictions” – Nov 2012; 4IDC – “Predictions 2013: Competing on the 3rd platform” – Doc #: 238044– Nov 2012; 5Ovum – “2013 Trends to Watch: BI and Analytics” – Nov 2012

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Data discovery market will grow 28% to reach $1 billion in 20131

40% of BI purchasing will be led by LoBs by 20141

54% of users will be actively using, planning, or piloting mobile BI in 2013 (20% in 2012)1

Analytics and smart process apps will grow by 17% in 20132

BI/analytics cloud adoption in SMB will grow 20% YoY3

VC funding and M&A activities are expected in visual discovery, predictive analytics, and text/rich media analytics4

Packaged analytic applications will gain traction and be offered by SIs, vertical providers, and traditional BI vendors3

Ease of use and implementation will become key criteria for purchasing BI5

Context-aware data will drive demand for analytics1

Predictive analytics will extend into unstructured data leveraging “Big Data” tools5

Usability, relevance, and speed will drive adoption of analytics

Analytics





Sources: 1Gartner – “Top Technology Predictions for 2013 and Beyond” – Nov 2012; 2Gartner – “The SMB market: trends, drivers and predictions for 2013” – Nov 2012; 3IDC – “Insights Predictions 2013: The CIO Agenda” – Dec 2012; 4IDC – “Predictions 2013: Competing on the 3rd platform” – Doc# 238044– Nov 2012; 5IDC – “Insights Predictions 2013: Cross Industry Overview” – Dec 2012; 6Ovum – “2013 Trends to watch: Mobile Consumerization” – Oct 2012; 7IDC – “Role of Collaboration In Mobile Enterprise” – Doc # 237858– Nov 2012

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Proliferation of smart technology (M2M) will drive a 25% increase in software spending by 20141

SMB’s mobile connectivity to enterprise business will grow 25% in 20132

33% of all new apps will target a mobile platform3

Tablet market will grow by at least 42% in 20134

Smart mobile devices will generate 57% of overall IT market growth in 20134

Developer adoption will be crucial for RIM and Microsoft’s mobile platforms in 20134

Mobility will be a game changer in retail, government, healthcare, and oil and gas verticals5

Mobile wallets and POS integration solutions will be key battlegrounds among vendors5

MDM market will consolidate and move toward mobile application management6

Enterprise content management vendors will increasingly compete to support mobile collaboration7

Enterprise mobility moves beyond bring your own device (BYOD)

Mobile





Sources: 1IDC – “Predictions 2013: Competing on the 3rd platform” – Doc # 238044– Nov 2012; 2Gartner – “Market Trends: Platform as a Service, Worldwide, 2012 -2016, 2h12 Update” – Oct 2012; 3Gartner – “Emerging Technology Analysis: How Consumer Device Technologies Can Support Cloud Adoption” – Mar 2012; 4Gartner – “Forecast: Public Cloud Services, Worldwide, 2010- 2016, 3Q 12 Update – Sep 2012; 5IDC – “Insights Predictions 2013: The CIO Agenda” - Doc # 238464 - Dec 2012; 6Ovum – “2013 Trends to watch: Cloud Services” – Oct 2012; 7Gartner – “Top 10 Strategic Technology Trends for 2013” – Oct 2012

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More than $25 billion will be spent in SaaS acquisitions by mid 20141

Integration services (iPaaS) market will grow ~34% in 20132

By the end of 2013, 90% of consumer connected devices will have access to the personal cloud3

Cloud security services will grow ~30% from 2012 to 20134

Two-thirds of mid-size firms will use cloud services in 2013, compared with just half in 20123

Industry-specific PaaS offerings will show rapid growth – generic PaaS will be commoditized1

“Cloud first” strategy will double to 70% over the next four years among CIOs5

Cloud governance and integration will emerge as a top priority6

Cloud services will be more strategic and transformational in 2013, encompassing the nexus of cloud, mobility, and data6

IT organizations will play a key role in providing cloud brokerage services7

Integration, platform, and services will be pivotal as the cloud market expands

Cloud





Sources:; 1Gartner – “Big Data Drives Rapid Changes in Infrastructure and $232B in IT spending through 2016” – Oct 2012; 2IDC – “IDC Government Insights Predictions 2013: Government” – Dec 2012; 3IDC – “IDC Predictions 2013: Competing on the 3rd platform” – Doc # 238044– Nov 2012; 4IDC – “Worldwide Hadoop-Mapreduce ecosystem software 2012-2016 Forecast” – Doc #234294– May 2012; 5IDC – “Worldwide data integration and access software by segment 2012-2016 forecast and 2011 vendor shares” – Doc # 237752– Nov 2012; 6Ovum – “2013 trends to watch: Big data” – Oct 2012; 7IDC – “IDC Insights Predictions 2013: Cross Industry Overview” – Dec 2012; 8Gartner – “Predicts 2013: In-Memory Computing: Growing Gains, but Also Growing Pains” – Nov 2012

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Application integration and DBMS will contribute more than 50% of “Big Data” IT spend in 20131

“Big Data” deployments in U.S. government are expected to grow 30% in 20132

The “digital universe” will reach 4 zettabytes (~4B TB) by 2013 (50% YoY growth)3

Hadoop MapReduce ecosystem software revenue will grow by ~81% in 20134

Demand for data scientists will continue to exceed supply5

Real-time integration initiatives are heating up and will help drive adoption of composite data frameworks5

Data governance, data quality, and stewardship will emerge as key issues for enterprises6

Operational efficiency will drive “Big Data” demand in utilities, financial services, and manufacturing7

At least one-third of companies will adopt in-memory computing to grow revenue and improve margin8

“Big Data” evolves into mainstream in 2013

Database & Technology





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35% of government organizations will evaluate or implement social analytics tools in 2013 for collaboration and sentiment analysis1

Team collaboration applications market will grow to ~$1.5 billion in 20133

A vast majority of SMB retailers plan to spend up to 24% of their IT budget on social media in 20134

15% of BI deployments will combine BI with collaboration and social software into decision-making environments in 20132

Enterprises will use consumer social networks’ identity management systems as a new foundation for enterprise authentication5

Social software platform spend will increase as organizations shift from point offerings to integrated suites6

Oracle will likely acquire a more robust social networking tool with an existing customer base in 20135

Businesses will struggle with enterprise social network sprawl as more businesses move from experimentation to integration5

Social technologies proliferate across the enterprise

Social

Business Networks

Social

Emerging Markets


Sources: 1IDC – “IDC Government Insights Predictions 2013: Government” – Dec 2012; 2Gartner – “Predicts 2013: BI and analytics need to scale up a support explosive growth in data sources” – Dec 2012; 3IDC – “Worldwide Collaborative Applications 2012 – 2016 Forecast” Doc # 235279– Jun 2012; 4IDC – “Perspective: The 3rd platform provides advantages for SMB retailers” – Doc # GRI237483– Oct 2012; 5IDC – “IDC Predictions 2013: Competing on the 3rd platform” – Doc # 238044– Nov 2012; 6Gartner – “Market trends: Community and suite applications flourish in enterprise social software marketplace” – Dec 2012




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Integration brokerage will grow 17.3% in 2013 to $1.8 billion1

B2B e-commerce traffic will increase 10x in the five years ending in 20132

50% of B2B collaboration will take place through Web APIs by 2016 with the widespread adoption of cloud, mobile, social, and data3

Cloud hubs, accounting for 18% of U.S. government cloud market, will continue to grow in 2013 and create new business models for IT procurement4

End user supply chains will improve upstream (suppliers) and downstream (customers) collaboration to compete better in a faster world5

Networked supply chain will dramatically improve business process opportunities in the manufacturing industry6

As service excellence becomes a priority in 2013, supply chains will take a holistic lifecycle view integrating disparate systems (PLM, ERP, CRM, SRM) across the globe5

Community-based clouds will be the preferred cloud model in financial services6

Networked supply chains will become a critical part of B2B collaboration

Business Networks


Sources: 1Gartner – “Competitive landscape: Integration brokerage” – Nov 2012; 2Gartner – “Predicts 2013: Application Integration” – Nov 2012; 3Gartner – “Predicts 2013: Application Development” – Nov 2012; 4IDC – “IDC Government Insights Predictions 2013: Government” – Dec 2012; 5IDC – “IDC manufacturing insights: top 10 2013 predictions” – Dec 2012; 6IDC – “IDC Financial Insights Predictions 2013: Financial Services” – Dec 2012



Business Networks

Social

Emerging Markets


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IT spending in emerging markets will grow by 8.8% to exceed $730 billion in 2013, 2x developed markets’ growth1

Software market in China will grow 14% in 20132

Russia’s banking market for enterprise software is expected to grow 10% in 20133

Mobile phone market in India will grow 14% in 2013, reaching 251 million units4

Enterprise application software in Sub-Saharan Africa is expected to grow ~8.4% in 20135

Increasing adoption of mobile devices and services will spur new opportunities in telecom and retail sectors in Indonesia6

Social and mobile will experience strong growth in Brazil, driven by rapid growth of middle class7

Financial institutions will primarily use “Big Data” for online analysis of client behavior data in Latin America8

Reverse innovations – emerging market developments translated to solutions for developed countries – will increase in 20139

Emerging markets will continue to be a growth engine in 2013

Emerging Markets


Sources: 1IDC – “Predictions 2013: Competing on the 3rd platform” – Doc # 238044 – Nov 2012; 2 Forrester Research Inc – “China tech market outlook: 2012 to 2013” – Oct 2012; 3Gartner – “Emerging market analysis: IT, Russia, 2012 and beyond” – Apr 2012; 4Gartner – “Predicts 2013: Indian IT industry set to embrace uncertainty to secure the feature” – Nov 2012; 5Gartner – “Market Statistics Online” – Dec 2012; 6Gartner – “Market trends: IT services Asia/ Pacific and Japan 2012 – 2013” – Oct 2012; 7Gartner – “Predicts 2013: Brazil, a new IT giant” – Nov 2012; 8IDC– “Financial insights predictions 2013 – Financial services” – Dec 2012; 9Global Trends Report 2013 – “Strategy Dynamics Global SA” – Dec 2012



Business Networks

Social

Emerging Markets


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Documents

2013 Predictions: IT Market Trends