idc la prediction 2014 vf

Latin America Predictions 2014 3rd Platform technologies creating new business models

IDC Predictions: How the Process Works

© IDC Visit us at IDC.com and follow us on Twitter: @IDC 2

Global brainstorm of over 1,000

IDC analysts

How we choose our prediction themes…

• Opportunity-oriented

• Impact many market segments

• Involve structural changes, require strategic choices

• Unique opportunities to establish market leadership

Latin America Predictions Team

Jay Gumbiner

Marcelo Leiva

Cesar Longa

Abraham Llández

Evelyn Pineda

Cristina Rivas

Juan Pablo Seminara

Paola Soriano

Ricardo Villate

Romina Adduci

Leandro Agion

Diego Anesini

Luciano Crippa

Alejandro Floreán

Latin America 3.0: From consumption-

based to investment-based growth

Foreign direct investment (FDI) directed

towards business-focused tech

investments, after mass consumption cool

down.

Moderate Brazil GDP growth at 2.6%,

below regional average of 3.2% in 2014.

Rising economies (Peru, Chile, and

Colombia) attracting investments driven by

value and innovation

Migration to Third Platform at the center of

innovation and value.

© IDC Visit us at IDC.com and follow us on Twitter: @IDC

US$358 Billion

Combined IT and

Telecommunications

spending in 2014

#1. Shifting Powers: C-Suite Execs Will

Continue Gaining Importance in IT Decisions

3rd Platform technologies tied to business processes in 2014, bringing new business rather than technology models

LOBs will increasingly buy specific solutions. CIOs and LOBs will put processes to work in a synergetic way

IT as a services broker will provide a framework for IT operations and governance

Competencies will reshape in both sides, as knowledge production ties to communities of practice


US$ 10 billion

IT spending will be

funded from LOB

budgets

#2. Third Platform Technologies Will Heat Up

Network Capacity Pressures

3rd Platform will drive network upgrades:

• Voice and video over IP

• Proliferation of network-attached wireless devices

• Virtualization and cloud computing

Hybrid technology strategy will need combine fixed (FTTx) and mobile (3/4G) and incorporating Wi-Fi offload / Hotspot 2.0

Data will be the pivot of the services plan

Security in the WAN will become a top priority in the network


2x

Expected traffic

increase in 2014

derived from 3rd

Platform technologies

#3. Workload Management Will Define the Infrastructure,

Paving the Way for Converged Infrastructure (CIS) and

Software-Defined Everything (SDx)

CIS architectures will become next step in

virtualization roadmap in a context of

dynamic provisioning

With the increase of as-a-service, workload

and software will define infrastructure

demand

SDx will advocate a ‘simpler network’

Market players will redraw alliances and

ensure interoperability between

components to be handled under SDx-type

of solutions


1 of 2

Companies will prioritize

workload management

through infrastructure

consolidation and

virtualization

#4. Big Data/Analytics Will Evolve From

Evangelization to Reality

Underlying forces are stronger in Latin

America, with 2 of 3 companies using public

social networks for marketing / customer

service / sales, and 1 in 3 capturing more

than 2 non-transactional data varieties

The pressing need for “the best insight” will

be a top priority for senior management • 60% of companies will use public social networks for

marketing/sales

• Data scientists and business consultants will be

sought

• Security and event management will be in the radar

Use will evolve from internal process

improvement to ‘vertical’ revenue generation


$820 million

Expected spending in

Big Data technologies

in Latin America in

2014

#5. Application Modernization Will Continue

Leading the Way to Public Cloud Adoption

Competition heating up, as demand is fueled by

changes in transactional systems

Front-end/ presentation layer (web) applications

are the first workloads to be moved to Cloud

App modernization key to move next wave of

workloads to the Cloud • ERP, Data Analytics, Mobile apps, Email, Media intensive

streaming, Social Business

Public Cloud spending to grow over 67% in

2014, rising over USD 1 billion


1/3

of Latin American

companies plan to invest

in the modernization of

“Front Office”

applications in 2014

#6. From BYOD to “Mobile First”: Mobile

Management Tools Will Push Business

Strategy to the Next Level

Companies have realized the importance

of developing an integrated mobility

strategy

Mobile management will be a foundation

to ensure administration of components • Device, connectivity, apps, security, back-end

systems, access, identity, content and information

control, analytics and reporting

Mobile First will push management

beyond the device: • Mobile enterprise

• Mobile application platform

• Mobile device management

• Mobile enterprise security


50%

of companies deploying

mobile policies will

include personally- liable

devices in MDM platform

#7. Next Wave of Enterprise Mobility: From

Email to Corporate Apps

Factors driving ongoing business process-

related apps mobilization

• IT industry giants expanding mobility

offerings

• Booming growth of mobile workforce

(expected to reach 40% in 2014)

• Value perceived by IT leaders: broadening

customer channels and communication

interfaces

App mobilization will take diverse in-roads • Email, messaging and conferencing will be

mobilized through smartphones.

• Business-related apps will be accessed via tablets


30%

of Latin American

business organizations

will mobilize business-

related apps during 2014

#8. Internet of Things Will Pick Up Speed

through B2B Industry-Led Solutions

Internet of Things (IoT) recognized as a tool to drive end-user productivity and innovation

Tied to intelligent industry transformation. Greatest opportunities in 2014 will be found in vertical implementation

• Healthcare: Asset management

• Insurance: Vehicle localization

• Logistic & transportation: Fleet management

• Manufacturing: Process automation

An IoT ecosystem will incorporate both traditional and specialized players that

• Identify critical processes in selected verticals

• Develop the right alliances to come up with turnkey solution


$4 Billion

Will be IoT business

opportunity in Latin

America in 2014

#9. Device Adoption Drivers Will Shift Away

from Device to Content Use and Creation

Shift away from traditional PCs to tablets,

smartphones, ‘phablets’ or even hybrid

PC/tablets 2-in-1

‘Walled Garden’ value will shift from the

operating system to content offerings

Device-agnostic content providers will

disrupt the ecosystem

Partnerships across operators & content

providers will serve as gatekeepers


142 million units

Tablets and smartphones

to be shipped to Latin

America in 2014 (28% YoY

growth)

#10. Gen-Y and Education-Related Projects Will

Drive Computing Devices Growth in Latin America

Tablet price point attracting governments

to deploy mega education projects

Gen Y’ers will evolve tablet use from

content browsing to content creation as

hybrid tablet/PCs gain market penetration

Traditional PC vendors will use entry-level

price point (under USD150) and basic

specs to compete with tablets

During 2014, questions will rise around

decisions based on price-points or hype


8 of 11

Largest PC educational

deals in the world will go

to Latin America

Joining us for Q&A:

• Ricardo Villate, Group VP, Latin America

• Jay Gumbiner, VP Research, Latin America

• Alejandro Florean, VP Consulting, Latin America

• Romina Adduci, Telecom Director, Latin America

• Diego Anesini, Enterprise Director, Latin America

• Cesar Longa, Software Program Manager, Latin America

16

Web conference replay will be available tomorrow (Email will be sent as a reminder)

More information:

Complementary document

about these predictions.

www.idclatin.com/predictions

http://www.idclatin.com/predictions

idc la prediction 2014 vf

Technology