Cloud Computing and Enterprise Software Forecast Update, 2012

The latest round of cloud computing and enterprise software forecasts reflect the growing influence of analytics, legacy systems integration, mobility and security on IT buyer’s decisions.

Bain & Company and Gartner have moved beyond aggregate forecasts, and are beginning to forecast by cloud and SaaS adoption stage.  SAP is using the Bain adoption model in their vertical market presentations today.

Despite the predictions of the demise of enterprise software, forecasts and sales cycles I’ve been involved with indicate market growth.  Mobility and cloud computing are the catalysts of rejuvenation in many enterprise application areas, and are accelerating sales cycles.  Presented in this roundup are market sizes, forecasts and compound annual growth rates (CAGRS) for ten enterprise software segments.

Key take-aways from the latest cloud computing and enterprise software forecasts are provided below:

• Software as a Service (SaaS) and cloud-based business application services will grow from $13.4 billion in 2011 to $32.2 billion in 2016, a five-year CAGR of 19.1%. Source:  Market Trends: Platform as a Service, Worldwide, 2012-2016, 2H12 Update Published: 5 October 2012 ID:G00239236.

• Public and private cloud computing will be strong catalysts of server growth through 2015. IDC reports that $5.2B in worldwide server revenue was generated in 2011 or 885,000 units sold.  IDC is forecasting a $9.4B global market by 2015, resulting in 1.8 million servers sold. Source:  IDC Worldwide Enterprise Server Cloud Computing 2011–2015 http://www.idc.com/getdoc.jsp?containerId=228916

• IDC reports that enterprise cloud application revenues reached $22.9B in 2011 and is projected reach $67.3B by 2016, attaining a CAGR of 24%.  IDC also predicts that by 2106, $1 of every $5 will be spent on cloud-based software and infrastructure. Report, Worldwide SaaS and Cloud Software 2012–2016 Forecast and 2011 Vendor Shares, Link: http://www.idc.com/getdoc.jsp?containerId=236184

• According to the Cisco Global Cloud Index, global cloud traffic will account for nearly two-thirds of total data center traffic by 2106. Cisco is forecasting cloud traffic as a percent of total data center traffic will grow from 39% in 2011 to 64% in 2016.  Cisco is also predicting that by 2016, three out of five data center workloads will be processed in the cloud. The Cisco Global Cloud Index also includes many  insightful documents including the Cisco Global Cloud Index: Forecast and Methodology, 2011–2016 and the  Cisco Global Cloud Index Supplement: Cloud Readiness Regional Details.  The following video provides an excellent analysis of the Top Trends behind the Cisco Global Cloud Index (2011 — 2016).

• 11% of companies are transformational, early adopters of cloud computing, attaining 44% adoption (as defined by % of MIPS) in 2010, growing to 49% in 2013. This same segment will reduce their reliance on traditional, on-premise software from 34% to 30% in the same period according to Bain & Company’s cloud computing survey results shown below.  SAP is using this adopter-based model in their vertical market presentations, an example of which is shown here.

• Bain and Company has defined a Cloud Go-To-Market System and is actively promoting it in their research insights and other publications. Examples of Bain’s research on cloud computing include Selling the cloud, The five faces of the cloud, How Rackspace turns customers into brand fanatics, and Identifying and monetizing cloud computing’s five customer types.  The Bain and Company Cloud Go-To-Market Strategy framework is shown below.

• Gartner is predicting Infrastructure-as-a-Service (IaaS), cloud management & security devices, and Platform-as-a-Service (PaaS) are growing from $7.6B in 2011 to $35.5B in 2016, a CAGR of 36%.  Source:  Forecast Analysis: Enterprise Infrastructure Software, Worldwide, 2011-2016, 3Q12 Update Published: 18 October 2012 ID:G00234775.

• The global Platform-as-a-Service (PaaS) market is growing from $900M in 2011 to $2.9B in 2016, achieving a 26.6% CAGR. At this projected rate, PaaS will generate an average of $360M a year in revenue between 2011 and 2016.  Gartner projects that the largest segments will be Application Platform Services (aPaaS) which generated 35% of total PaaS spending in 2011, followed by cloud application lifecycle services (12.5).    Source: Market Trends: Platform as a Service, Worldwide, 2012-2016, 2H12 Update Published: 5 October 2012 ID:G00239236.

• The three most popular net-new SaaS solutions deployed are CRM (49%), Enterprise Content Management (ECM) (37%) and Digital Content Creation (35%). The three most-replaced on-premise applications are Supply Chain Management (SCM) (35%), Web Conferencing, teaming platforms and social software suites (34%) and Project & Portfolio Management (PPM (33%). The following graphic shows the full distribution of responses. Source: User Survey Analysis: Using Cloud Services for Mission-Critical Applications Published: 28 September 2012

• In 2011, the worldwide enterprise application software market generated $115.1B in revenue, and is projected to grow to $157.6B by 2016, attaining a 6.5% CAGR in the forecast period. Gartner reports that 38% of worldwide enterprise software revenue is from maintenance and technical support; 17% from subscription payments; and 56% from ongoing revenue including new purchases.  An analysis of the ten enterprise software markets and their relative size and growth are shown in the figure below along with a table showing relative rates of growth from 2011 to 2016. Source: Forecast: Enterprise Software Markets, Worldwide, 2011-2016, 3Q12 Update Published: 12 September 2012 ID:G00234766

• The Gartner forecast for Global IT spending by vertical market shows transportation, insurance, banking and securities, and communications, media and services (CM&S); and manufacturing providing g the greatest growth opportunities through 2016.  The following graphic shows the industries graphed by Annual Growth Rate (AGR) and Compound Annual Growth Rate (CAGR). Source: Forecast Analysis: Enterprise IT Spending by Vertical Industry Market, Worldwide, 2010-2016, 3Q12 Update Published: 7 November 2012

Courtesy – Louis Columbus

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Social Media Landscape 2012

An interesting InfoGraphics, that is an attempt to provide a visual view of how devices and other elements of consumer and/or our daily life like buying, networking, sharing, playing, etc are getting much more integrated than we would have imagined.

Popular Educational Twitter Hashtags

Courtesy – Online Courses

Its Special to be Ordinary

Starting this wet and raining week with a nice quiz that I had received in my inbox over the weekend.

1. Name d 5 wealthiest ppl in d world.
2. Name d last 5 winners of Ms. Universe.
3. Name d last 10 ppl who won d Nobel prize.

How did you do?

The point is, none of us remembers the headlines of yesterday.

Even though these ppl must be d best in their fields... applause dies, awards are tarnished and achievements are forgotten...!!

Here's another quiz...let's see how this goes:

1. Name 5 teachers who aided ur journey through school.
2. Name 5 friends who helped u thru difficult times.
3. Name 5 ppl who taught u something worthwhile.
4. Name 5 ppl who make u feel special.
5. Name 5 ppl u enjoy spending time with.

Easier...right? :)

The people who make a difference in your life are NOT the ones with the most awards and loads of money...

Life is full of ordinary people who have made d world a better place 4 u!

Cherish them!!!Hold them tight!!!

Perhaps sometimes its special to be ordinary....!

Using Search Analytics To See Into Gartner’s $232B Big Data Forecast

By combining search analytics and the latest Gartner forecast on big data published last week, it’s possible to get a glimpse into this areas’ highest growth industry sectors.  Big data is consistently a leading search term on Gartner.com, which is the basis of the twelve months of data used for the analysis.

In addition, data from Gartner’s latest report, Big Data Drives Rapid Changes in Infrastructure and $232 Billion in IT Spending Through 2016 by Mark A. Beyer, John-David Lovelock, Dan Sommer, and Merv Adrian is also used.  These authors have done a great job of explaining how big data is rapidly emerging as a market force, not just a single market unto itself.  This distinction pervades their analysis and the following table showing Total IT Spending Driven by Big Data reflects the composite market approach.  Use cases from enterprise software spending, storage management, IT services, social media and search forecasts are the basis of the Enterprise Software Spending for Specified Sub-Markets Forecast.  Social Media Analytics are the basis of the Social Media Revenue Worldwide forecast.

Additional Take-Aways

• Enterprise software spending for specified sub-markets will attain a 16.65% compound annual growth rate (CAGR) in revenue from 2011 to 2016.

• Attaining a 96.77% CAGR from 2011 through 2016, Social Media Revenue Is one of the primary use case catalysts of this latest forecast.

• Big Data IT Services Spending will attain a 10.20% CAGR from 2011 to 2016.

• $29B will be spent on big data throughout 2012 by IT departments.  Of this figure, $5.5B will be for software sales and the balance for IT services.

• Gartner is projecting a 45% per year average growth rate for social media, social network analysis and content analysis from 2011 to 2016.

• Gartner projects a 20 times ratio of IT Services to Software in the short term, dropping as this market matures and more expertise is available.

• By 2020, big data functionality will be part of the baseline of enterprise software, with enterprise vendors enhancing the value of their applications with it.

• Organizations are already replacing early implementations of big data solutions – and Gartner is projecting this will continue through 2020.

• By 2016 spending on Application Infrastructure and Middleware becomes one of the most dominant for big data in Enterprise Software-Specified Sub Markets.

• $232B is projected to be sold in total across all categories in the forecast from 2011 to 2016. From $24.4B in 2011 to $43.7B in 2016, this presents a 12.42% CAGR in total market growth.

Search Analytics and Big Data

Big data is continually one of the top terms search on Gartner.com, and over the last twelve months, this trend has accelerated.  The following time series graph shows the weekly number of inquiries Gartner clients have made, with the red line being the logarithmic trend.

Banking (25%), Services (15%) and Manufacturing (15%) are the three most active industries in making inquiries about big data to Gartner over the last twelve months.  The majority of these are large organizations (63%) located in North America (59%) and Europe (19%).

What unifies all of these industries from a big data standpoint is how critical the stability of their customer relationships are to their business models.  Banks have become famous for bad service and according to the American Customer Satisfaction Index (ACSI) have shown anemic growth in customer satisfaction in the latest period measured, 2010 to 2011.  The potential for using big data to becoming more attuned to customer expectations and deliver more effective customer experiences in this and all services industries shows great upside.

Bottom line: Companies struggling with flat or dropping rankings on the ACSI need to consider big data strategies based on structured and unstructured customer data.  In adopting this strategy the potential exists to drastically improve customer satisfaction, loyalty, and ultimately profits.

Courtesy – Louis Columbus

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Social Media Guidelines for Students and Job Seekers

When Should I Post this?

As we all know that your readers or potential readers are not online at all the times. They read your post or update on generally at a specific time. Or let me say that your ability to reach to your audience is higher at specific times vs others. You as who is posting information need to understand the trend and identify what time of the day works best for you. Kindly be informed that it may vary based on a lot of factors including (but not limited to) country you are targeting, type of content, your existing reach, influential power  of your followers, etc. For the twitter the one tool that I extensively use for such and much broader research on my friends and followers is SocialBro.

While you may be creating the best content for your audience, its equally imperative for you to understand when they are coming to your blog or reading your post.

Kindly note, that the below is only for reference and understanding, however you may need to create your posting schedule based on your need, content and most importantly the country(s) that you are focusing on.

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