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IDC's survival tips for ICT vendors

Paul Booth
By Paul Booth
Johannesburg, 03 Apr 2013

The IDC estimates that 25% of total IT spend in 2013 will be based on mobile, social, big and cloud.

Speaking at the IDC's annual Directions conference, in the US, Frank Gens, SVP and chief analyst at the IDC, unpacked what vendors need to do to remain competitive. He discussed what the IDC terms the "third platform", which is its view of the new wave of computing that has replaced the mainframe era and the LAN/Internet client/server era. According to the IDC, ICT vendors will need to address eight key items in order to succeed in 2013.

The conventional sales approach is no longer valid, said Gens, as the number of applications available and the number of users to be addressed will grow exponentially. In line with this, he described subscription models as being "the name of the game", adding that models will need to be adapted appropriately to include and embrace application stores.

Gens called on vendors to build "enterprise" offerings on a consumer base. Within three years, almost 50% of total IT delivery will be through some form of public or private cloud, he noted, thus vendors should prepare themselves for the end of dedicated IT.

He advised that applications should be built around multiple bits and pieces. According to an IDC tracker survey, the top six applications to succeed in this new wave of computing are mash ups involving data, mobile and social technologies such as e-mail, archiving, collaboration applications, mobile applications, personal productivity applications and storage cloud.

Applications are increasingly being developed by a diverse set of industry players not in IT, thus Gens stressed the importance of developing an "industry PaaS" strategy. Companies are realising the value of business solutions built on platforms created by organisations such as Amazon and as such have created an appropriate "business as a service" capability, he said.

By 2016, 40% of new initiatives will have the line-of-business executive as a decision-maker. This statistic highlights the importance of establishing strong relationships with this collection of individuals, he said.

According to Gens, vendors should be looking to exploit beyond smartphones and tablets. This is vital as the number of intelligent systems/devices shipped in 2016 will reach roughly five billion units, less than half of which will be PCs, tablets or phones. Thus, there is a need to exploit these devices, he said, many of which will be embedded within larger entities.

Finally, Gens called on vendors to follow the data. There is no doubt that the next few years will drastically change the shape of the ICT industry, he concluded, stressing that those vendors that have not already realised the implications of not moving and adapting to the new wave of computing may be out of business in the not too distant future.

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