IDC offers up its annual predictions for 2014

Comments Off December 6, 2013 at 10:58 am

International Data Corporation (IDC) this week released the first of its annual predictions for the coming year in the information and communications technology (ICT) industry. IDC’s predictions for 2014 were heavily influenced by the 3rd Platform, the industry’s emerging platform for growth and innovation built on the technology pillars of mobile computing, cloud services, big data and analytics, and social networking.

“The 3rd Platform’s impact was felt throughout the ICT industry in 2013 as a high-profile CEO lost his job, a major IT player went private, numerous vendors endured cash cow stagnation, and billion-dollar bets were placed on 3rd Platform technologies,” said Frank Gens, senior vice president and chief analyst at IDC. “In 2014, we’ll see every major player make big investments to scale up cloud, mobile, and big data capabilities, and fiercely battle for the hearts and minds of the developers who will create the solutions driving the next two decades of IT spending. Outside the IT industry, 3rd Platform technologies will play a leading role in the disruption (or “Amazoning”) of almost every other industry on the planet.”

IDC’s predictions for 2014 in a Web conference include the following:

1. Worldwide IT spending will grow 5% year over year to $2.1 trillion in 2014. 2. Emerging markets will return to double-digit growth of 10%, driving nearly $740 billion or 35% of worldwide IT revenues

3. Within the 3rd Platform, value will start to migrate “up the stack”, from infrastructure as a service (IaaS) to platform as a service (PaaS) and from generic PaaS to data-optimized PaaS.

4. The mobile device onslaught will continue in 2014 with sales of tablets growing by 18% and smartphones by 12%.

5. Cloud spending, including cloud services and the technology to enable these services, will surge by 25% in 2014, reaching over $100 billion. IDC expects to see a dramatic increase in the number of data centres as cloud players race to achieve global scale.

6. Spending on big data technologies and services will grow by 30% in 2014, surpassing $14 billion as demand for big data analytics skills continues to outstrip supply.

7. Social technologies will become increasingly integrated into existing enterprise applications over the next 12-18 months.

8. Data centres represent the physical foundation underneath the cloud, and are thus a crucial component of the 3rd Platform. As cloud-dedicated data centres grow in number and importance, the market for server, storage, and networking components will increasingly be driven by cloud service providers, who have traditionally favored highly componentized and commoditized designs.

9. The 3rd Platform will deliver the next generation of competitive advantage apps and services that will significantly disrupt market leaders in virtually every industry

10. Finally, the 3rd Platform will continue to expand beyond smartphones, tablets, and PCs in 2014 to the Internet of Things (IoT). With IoT momentum building in 2014, IDC expects to see new industry partnerships to emerge as traditional IT vendors accelerate their partnerships with global telecom service providers and semiconductor vendors to create integrated offerings in the consumer electronics and connected device spaces.

More detailed information on each of the predictions can be found at www.idc.com.