In early December, Forbes published the International Data Corporation’s (IDC) top 10 technology predictions for 2014; a yearly list that is much-anticipated because, well, IDC is pretty accurate. In 2013 for example, the market research, analysis, and advisory firm predicted that businesses will turn to visual analytics and predictive analytics technology to make the most use out of their massive amounts of data.
The IDC 2014 list includes a wide range of predictions, from the perpetuation of “Android vs. Apple,” to Amazon (and possibly Google) taking on traditional IT suppliers.
The firm’s top 10 countdown also includes predictions especially pertinent to the Cloud CPM & BI market. Here’s our view on a few of IDC’s predictions that are particularly interesting to Adaptive Planning, our customers, partners, and the broader future of enterprise cloud applications.
There’s a $100 billion cloud in our future
IDC’s Take: Spending on cloud services and the technology to enable these services, “will surge by 25% in 2014, reaching over $100 billion.” IDC predicts, “a dramatic increase in the number of datacenters as cloud players race to achieve global scale.”
Adaptive’s Take: We recently discussed a survey in which financial executives revealed their need for more collaborative software. Cloud applications meet this need, in terms of CPM and otherwise, by allowing multiple users to access and collaborate on a single data source. The collaboration, efficiency, and scalability benefits of the cloud are creating an exponentially growing demand for cloud solutions among international enterprises, with multiple locations, in multiple countries. That enterprise-level demand is already causing cloud solution providers to go global. It stands to reason that as cloud providers grow, datacenters will grow with them.
Cloud service providers will increasingly drive the IT market
IDC’s Take: As cloud-dedicated datacenters 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.” The incumbent IT hardware vendors will be forced to adopt a “cloud-first” strategy, IDC predicts. 25–30% of server shipments will go to datacenters managed by service providers, growing to 43% by 2017.
Adaptive’s Take: When it comes to Cloud-based CPM & EPM, this is more of a perpetuation of a current trend than something new in 2014. Legacy providers like Oracle, IBM, and SAP are already planting the seeds for a full-on cloud-switch by migrating their on-premise solutions, Hyperion, Cognos, and BPC, to the cloud. But as Matthew Grove explained, there’s a huge difference for business customers between applications built for the cloud, and putting on-premise applications into the cloud. Rebuilding enterprise apps that are truly designed for the cloud will take a significant time and financial investment, which will be paid by customers of course, through the sales pipeline.
Bigger big data spending
IDC’s Take: IDC predicts spending of more than $14 billion on big data technologies and services or 30% growth year-over-year, “as demand for big data analytics skills continues to outstrip supply.” The cloud will play a bigger role with IDC predicting a race to develop cloud-based platforms capable of streaming data in real-time. There will be increased use by enterprises of externally sourced data and applications and “data brokers will proliferate.” IDC predicts explosive growth in big data analytics services, with the number of providers to triple in three years. 2014 spending on these services will exceed $4.5 billion, growing by 21%.
Adaptive’s Take: The growth numbers IDC predicts are striking. But again, we’ve seen the trend already taking form. Companies are realizing that cloud visual analytics and financial forecasting software motivate department leaders outside of finance to become a part of the budgeting and forecasting process, creating a more holistic view of overall corporate performance. Cloud tools are helping more companies turn big data into big data analytics that reveal a clearer picture of top KPIs. Combine this with the proliferation of a mobile workforce, and you get a huge demand for a real-time, streaming view of data analytics (just ask Thiess mining how cloud-based visual analytics has worked for them).