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Monday, June 26, 2017

Exploring the Online Payment Fraud Prevention Market

The convenience and global reach made possible by online channels has led to the development of a broad set of digital eCommerce services. However, the accessibility of the Internet and the ability to commit fraud remotely creates an environment for cyber criminals to prosper.

Meanwhile, the potential attack surface for miscreants is enormous -- about 94 billion transactions were made for remote goods purchases in 2016, which is only a fraction of the total eCommerce landscape.

That said, advanced security measures are increasingly being implemented to protect against fraud carried out at physical locations. It's for these reasons that fraudsters have developed, and are continually developing, new methods to illegally siphon cash over the Internet.

Online Payment Protection Market Development

Juniper Research has found that retailers stand to lose $71 billion globally from fraudulent Card-Not-Present (CNP) transactions over the next 5 years. Their latest worldwide market study found that a number of factors -- such as the shift to EMV cards, delays in 3DS 2.0 (3D-Secure) and click-and-collect fraud -- were key drivers behind the rise.

Many merchants still believe that eliminating all fraud is too expensive. Therefore, they've been unprepared to deal with the shift to online fraud following the introduction of EMV (CHIP and signature) payment cards in the United States.


A cost analysis of fraud detection and prevention (FDP) solutions found that in most instances, merchants would receive value from their protection investment. Juniper has urged vendors across the value-chain to increase their efforts in educating merchants on the benefits of FDP.

According to the Juniper assessment, fraudulent CNP physical goods sales will reach $14.8 billion annually in 2022. It argued that click-and-collect services were particularly vulnerable given the lack of a residential delivery address. But retailers are reluctant to impose rigorous ID checks on pick-up for fear of damaging the consumer experience and reducing conversion rates.

Outlook for Enhanced Protection Technology

The research predicted that three key battlegrounds would emerge in the fight against fraud in 2018. It cited machine learning as a key tool in identifying genuine users, while the shift to mobile eCommerce would rely on 3DS 2.0 and biometrics.

"2018 will herald the arrival of new tools in the fight against fraud," said Steffen Sorrell, senior analyst at Juniper Research. "3DS 2.0 will finally begin to rollout and will mark a paradigm shift in terms of merchants and issuers leveraging shared data. We also expect passive biometrics, such as the manner in which a device is handled, to become key in the future."

Friday, June 23, 2017

Explore the Global Autonomous Vehicle Readiness Index

Managing urban transportation challenges in large metropolitan areas has motivated local government leaders to consider alternative solutions to traditional public transit. More major cities across the globe now have programs in place to test the applications of autonomous vehicle (AV) technologies.

According to the latest worldwide market study by Canalys, four cities are leading the way to being prepared for autonomous vehicles. To date, San Francisco is out in front, followed by Shanghai, Singapore and London.

These rise to the top of a group of cities that, due to their size and populations, have some of the most complex transport networks in the world. The leaders have a significant need for autonomous vehicles to transform and evolve their transit systems, combined with the ability and desire to make it happen.

Autonomous Vehicles Market Development

These conclusions come from the recently published Autonomous Vehicle Readiness Index (AVRI), which ranks, weights and scores cities based on a set of specific criteria drawn from public sources and their own data and estimates.

"Naturally, San Francisco leads the way and is the city best able to implement autonomous vehicles. The Bay Area is renowned as the world’s AV testing capital," said Chris Jones, chief analyst at Canalys.

Large populations play an important part in the AVRI assessment criteria, which is partly why Shanghai rates so highly. Shanghai’s rapid population growth has negatively affected its public transport infrastructure, which in turn has increased the number of vehicles registered.

According to the Canalys assessment, such growth has meant the city has struggled to keep up with its 'green' or sustainability objectives. These factors combine with the fact that Shanghai has significant future strategy ventures and major 'smart city' projects to move it toward the top of the index.

The Shanghai International Automobile City (SIAC) is on the outskirts of the city – the first and biggest automotive technology R&D zone in China. Other factors that propel it toward the top of the index are its propensity to use ride-sharing and the fact that it is a hub for technology and automotive OEMs.

In Singapore, the population is small but growing fast and extremely high density. There is government pressure to limit car ownership. It has a world-class public transport system and, thanks to its small size and short average commuting times, taxi and ride-sharing demand is high.

Singapore has instigated multiple smart city initiatives, including using the One-North business park as a testing zone for a range of urban digital experiments. This focus on specific technology projects has helped AV testing thrive.

Outlook for Autonomous Vehicles in Europe 

Though vehicle ownership in central London is low, in the metropolitan area it is far higher. This makes commuting difficult for many Londoners, who must deal with major traffic issues. Because of both this and the bustling and overcrowded public transport network, there has been a large increase in ride- and car-sharing services.

Several companies have been undertaking AV testing, and London has been involved in several key smart city initiatives, such as setting up a Smart London Innovation Network and using £200 million ($260 million) to demonstrate smart city approaches by 2018, which boost its place in the Canalys rankings.

Canalys has analyzed all the world’s major cities and their findings also show that several key German cities ranked highly in the index.

Wednesday, June 21, 2017

Augmented Reality and Virtual Reality Headset Upside

Augmented Reality (AR) and Virtual Reality (VR) continue to gain momentum in the emerging technology marketplace. Dedicated AR and VR headsets are now expected to grow from just under 10 million units in 2016 to about 100 million units in 2021 -- that's a 5-year CAGR of 57.7 percent.

VR headsets have led the device shipment volume to date, according to the latest worldwide market study by International Data Corporation, (IDC). Within that category, screen-less viewers (VR headsets powered by a smartphone), which are the least expensive available form factor, have been leading the charge.

AR and VR Market Development

The second half of 2016 saw an increase in volume from three market leading VR device products - the Sony PlayStation VR, the HTC Vive, and Facebook's Oculus Rift.

The next few months will further advance the VR market as PC vendors introduce tethered headsets and high-end standalone VR headsets also enter the market. With lower hardware requirements on the PC and lower prices on headsets, VR will be more accessible than ever before.

In terms of dedicated devices, AR continues to sit slightly in the background of VR. The reason for this is not that AR is less important, but rather it is harder to achieve.


IDC believes VR headsets will continue to lead in terms of volume throughout the forecast, but maintains that AR in general will have a much bigger impact overall on the industry.

Consumers are very likely to have their first AR experience via a mobile phone or tablet rather than a dedicated headset, and Apple's recent introduction of ARKit further supports this.

IDC belives the large opportunity for dedicated AR headsets exists in the commercial segment. A huge level of interest and investment is happening as we speak around vertical markets such as healthcare, manufacturing, field service workers, and design.

"It is very clear to us that augmented reality is the larger of the two plays here when looking at AR and VR combined,” said Ryan Reith, vice president at IDC. "Companies like Microsoft, Epson, Intel, Meta, ODG, and DAQRI are already providing devices that are being deployed in real-time commercial projects with significant ROI."

Outlook for Industrial Applications

The list goes well beyond that of other companies which have either deployed or are readying for deployment of similar devices. IDC believes that many industrial jobs will fundamentally change because of AR in the next five years, and these are much more opportunistic markets for dedicated AR headsets than within the consumer market.

According to the IDC assessment, commercial shipments will likely account for just over 80 percent of all AR headsets shipped during the next five years.

Tuesday, June 20, 2017

Connected Car Commerce Revenue will Reach $100B

The notion of Connected Cars refers to devices installed in a vehicle which allow Machine-to-Machine (M2M) communication. Moreover, M2M is typically wireless communication between two single machines or systems, without requiring any human interaction.

In relation to vehicle telematics, this capability enables data to be sent from the vehicle to another location and thereby used for vehicle conditioning, or to monitor the vehicle driver's behavior.

Beyond the connected car ecosystem, there are opportunities for integration with other emerging technology ecosystems -- such as the smart home and smart city technology. The ultimate commercial value of the ecosystem will be determined by others, such as government policymakers and Mobile Network Operators (MNOs).

Connected Car Market Development

A new market study by Juniper Research has revealed that, by 2022, 50 percent of consumer vehicles on the road will have at least one connectivity service -- such as telematics, vehicle-to-everything (V2X) communications, or connected car commerce services.

The study found that revenues from consumer connected car services will rise from $18.4 billion in 2017 to $49.2 billion in 2022 -- that's a 21.6 percent compound annual growth rate (CAGR).

According to the Juniper assessment, increasing industry involvement from OEMs and network operators, combined with the development of new V2X services, will be key drivers for future growth.

The research found that automotive OEMs are preparing to capitalize on the opportunities for V2X services, such as smart parking and automated fuel payments. North America is likely to emerge as the leading region in this space, accounting for 39 percent of all end-user spend on connected car commerce platforms by 2022.


Juniper analysts believe that stakeholder investments and public-private partnerships will be as critical to future vehicle-to-infrastructure (V2I) services as OEM involvement.

Additionally, the study found that in-vehicle services must remain specific to the vehicle or risk being viewed as unnecessary and invasive. Lucrative services will therefore be restricted to fuel payments, smart parking and toll roads.

That being said, the analyst also highlighted that early roll-outs of infrastructure could take up to five years to implement, allowing ecosystem stakeholders time to cultivate the appropriate use cases.

Outlook for Connected Car Commerce

While vehicle sales will limit the adoption of vehicle-integrated commerce services, the high average spend per user will offer a significant revenue opportunity to entice stakeholders. Juniper predicted that total consumer spend over connected car commerce platforms will exceed $100 billion by 2022.

"OEMs will begin competing on the level of convenience that their in-vehicle services offer," said Sam Barker, analyst at Juniper Research. "Soon, the level of service will be more important to drivers than vehicle performance itself."

Monday, June 19, 2017

Enterprise Wearable Device Market Reaches $10.5B

Wearable technologies are entering the workplace. ABI Research forecasts enterprise wearable device revenue -- such as smartwatches, smart glasses, and wearable scanners -- will exceed $55 billion in 2022, which is growing from an estimated $10.5 billion in 2017.

With a compounded annual growth rate (CAGR) that surpasses 39 percent, these devices will improve productivity, reduce errors, and save time training both new and seasoned enterprise workers.

The implementation of strong supporting IT platforms is now essential to ensure proper employee access, storage, and security of all wearable device data.

Enterprise Wearables Market Development

"Wearables have much less in-built security and authentication protocols than other devices and so require robust security platforms to ensure data safety," said Stephanie Lawrence, research analyst at ABI Research.

Supporting platforms enable IT teams to determine what business information the wearables can access, monitor their usage, create customized applications, and remotely control the devices. This ultimately safeguards the commercial data from being compromised.

Companies such as Augmate, PTC, Salesforce, Total Communicator Solutions, and Upskill provide these supporting platforms to interested enterprises. Often these applications are available via Software as a Service (SaaS) or Platform as a Service (PaaS) offerings, and can come with a one-time set up fee with a monthly or yearly fee based on number of devices, users, and/or applications.

According to the ABI Research assessment, as companies require stronger security protocols, these device management platforms will mature. However, wearable platforms differ from other device platforms, as they require specific applications that can support a wide variety and wearables from different vendors.

For example, the diversity of smartwatches -- with different operating systems and face shapes -- often causes hardware technology or software incompatibility issues when creating new applications.

Outlook for Wearable Application Management

However, most wearable platforms can be supported by enterprise mobility management (EMM) solutions -- such as mobile device management (control over the whole device), mobile application management (control over a software application), and mobile content management (control over the digital media within an application).

Each solution provides its own benefits, allowing enterprise IT teams to control certain aspects of the wearable platform deployment. ABI Research finds that the best supporting platforms supply several of these solutions to ensure that all data and devices are kept secure.

Friday, June 16, 2017

Enterprise Mobile App Demand is Evolving in 2017

Many enterprises across the globe are not creating mobile applications. According to the findings from a recent Gartner survey, 39 percent of respondents said they had not built, customized or virtualized any mobile apps in the previous 12 months.

"Many IT teams will have significant backlogs of application work that need completing, which increases the risk of lines of business going around IT to get what they want sooner," said Adrian Leow, research director at Gartner. "Development teams need to rethink their priorities and span of control over mobile app development, or risk further erosion of IT budgets and the perceived value of IT development."

Enterprise Mobile App Market Development

According to the survey, those enterprises that have undertaken mobile app development have deployed an average of eight mobile apps, which has remained relatively flat when compared with 2016. On average, another 2.6 mobile apps are currently being developed and 6.2 are planned for the next 12 months, but not yet in development.

"It's encouraging to see significant growth in the number of mobile apps that are planned, but most of this growth is in mobile web apps as opposed to native or hybrid mobile apps," said Mr. Leow. "This indicates that some enterprises may be frustrated with developing mobile apps and are instead refocusing on responsive websites to address their mobile needs."

Gartner's survey reveals that 52 percent of respondents have begun investigating, exploring or piloting the use of bots, chatbots or virtual assistants in mobile app development, which is surprisingly high given how nascent these technologies are.

"While this response may be more indicative of greater awareness of these technologies than of anything else, it's still good to see that enterprises have begun to consider these technologies, because they will grow in importance relatively rapidly," said Mr. Leow.

According to the survey, the primary barriers to mobile initiatives are resources related -- lack of funds, worker hours and skills gaps. Cost concerns are pervasive in IT organizations so this is not surprising, but it points to the need to enhance productivity with the budgets that IT development organizations already have. Other barriers include a lack of business benefits and ROI justification.

In terms of spending, the survey revealed that organizations' actual IT spend on mobile apps is consistently lower than they forecast. Despite 68 percent of organizations expecting to increase spending for mobile apps, the average proportion of the overall software budget is only 11 percent.

Outlook for Mobile Applications Adoption

Those that plan on increasing spending in 2017 expect to do so by 25 percent over last year. For the past few years, Gartner's research has shown that while organizations have indicated that they will increase their mobile app development budget spend, the reality is that spending allocation has decreased.

"Application leaders must turn around this trend of stagnating budgeted spend on mobile app development, as employees increasingly have the autonomy to choose the devices, apps and even the processes with which to complete a task," said Mr. Leow. "This will place an increasing amount of pressure on IT to develop a larger variety of mobile apps in shorter time frames."

Tuesday, June 13, 2017

Managed Security Services will Reach $1B in LatAm

Effective IT infrastructure security is a growing concern to most organizations that have expanded their use of eCommerce applications. It's especially important to senior executives at public companies that are held responsible for security breaches and any related impact on customers.

IT security expertise demand is increasing worldwide, including managed services. As an example, the Latin American managed security services (MSS) market is transforming as CIOs focus on higher levels of security and risk management for their IT infrastructure.

According to the latest market study by Frost & Sullivan, this is due to increasing threats such as targeted Internet attacks, advanced persistent threats, more sophisticated distributed denial of service (DDoS) attacks, and of course ransomware.

IT Security Services Market Development

"Traditionally, the mindset about cyber security in Latin America has been more reactive rather than proactive, with investments occurring after attacks have taken place," said Mauricio Chede, research analyst at Frost & Sullivan.

Hackers also realize that many companies are not prepared to deal with attacks, and therefore view the region as an open environment for financial crimes, industrial espionage, and corporate data theft.

However, IT security and regulatory compliance is now becoming an important issue for many organizations across the region. As a result, Frost & Sullivan has forecast that the overall MSS revenues for Latin America will reach $1 billion by 2021.

According to the Frost & Sullivan assessment, while security asset management and monitoring will experience the most demand in Latin America, services such as threat intelligence, research, detection and remediation are gaining momentum.

CIOs and IT managers now want solutions that solve their IT security related problems, rather than merely provide an alert of a potential problem.

Demand for Managed Security Solutions

Successful managed security service providers (MSSPs) will be those that can demonstrate trustworthiness in remediation without interrupting their customer's business operations.

They will likely have deep vertical industry knowledge and win customer trust to outsource to third parties based on relevant experience and specific knowledge on compliance and business requirements. Furthermore, the most capable service providers will offer complete security solutions instead of merely generating low fidelity security alerts.

"The challenge and complexity that security brings to companies will only increase, so agile MSSPs will be the ones that interact closely with customers and offer the best solutions to keep them safe," concluded Chede.

Monday, June 12, 2017

Growing Global Demand for Hybrid Flash Array Storage

The emergence of hyperscale cloud service providers transformed the enterprise computing environment. IT infrastructure vendors have learned to adapt to shifts in market demand and embrace the ongoing changes that have affected the data center server and storage markets. Enterprise CIOs and CTOs have also modified their traditional budget allocations.

Total worldwide enterprise storage systems factory revenue was down 0.5 percent year-over-year, reaching $9.2 billion in the first quarter of 2017 (1Q17), according to the latest global market study by International Data Corporation (IDC).

Data Center Storage Market Development

Total capacity shipments were up 41.4 percent year-over-year to 50.1 exabytes during the quarter. Revenue growth increased within the group of original design manufacturers (ODMs) that sell directly to hyperscale data center operators.

This portion of the market was up 78.2 percent year-over-year to $1.2 billion. In contrast, sales of server-based storage were down 13.7 percent during the quarter and accounted for $2.7 billion in revenue.

External storage systems remained the largest market segment, but the $5.2 billion in sales represented a modest decline of 2.8 percent year-over-year.

"The enterprise storage market closed out the first quarter relatively flat, yet adhered to a familiar pattern," said Liz Conner, research manager at IDC.


According to the IDC assessment, spending on traditional external arrays continues to shrink, while spending on all-flash deployments once again posted strong growth and helped to drive the overall storage market. Meanwhile, the hyperscale data center business segment displayed solid growth in 1Q17.

Dell held the top position within the total worldwide enterprise storage systems market, accounting for 21.5 percent of spending. HPE held the second position with a 20.3 percent share of revenue during the quarter.

HPE's share and year-over-year growth rate includes revenues from the H3C joint venture in China that began in May of 2016. As a result, the reported HPE/New H3C Group combines storage revenue for both companies globally.

NetApp finished third with 8 percent market share. Hitachi and IBM finished in a statistical tie for the fourth position, each capturing 5 percent of global storage spending.

As a single group, storage systems sales by original design manufacturers (ODMs) selling directly to hyperscale datacenter customers accounted for 13.2 percent of global spending during the quarter.

The total All Flash Array (AFA) market generated almost $1.4 billion in revenue during the quarter, up 75.7 percent year-over-year. The Hybrid Flash Array (HFA) segment of the market continues to be a significant part of the overall market with $2 billion in revenue and 22 percent of the total market share.

Friday, June 09, 2017

General Data Protection Regulation - Why it Matters

Compliance with IT security and data privacy regulation is of growing concern to most European organizations. Businesses large and small are scrambling to assess their General Data Protection Regulation (GDPR) readiness, with less than a year to go until its implementation on 25 May, 2018.

GDPR is a regulation by which the European Parliament, the Council of the European Union and the European Commission intend to strengthen and unify data protection for all individuals within the European Union (EU). The new framework demands a reassessment of the everyday operational structure for businesses that handle personal data in the EU.

The aim of the GDPR is to protect all EU citizens from privacy and data breaches in an increasingly data-driven world that is vastly different from the time in which the 1995 directive was established. Although the key principles of data privacy still hold true to the previous directive, many changes have been proposed to the regulatory policies.

Penalties for Non-Compliance

Organizations in breach of GDPR can be fined up to 4 percent of annual global revenue or €20 Million (whichever is greater). This is the maximum fine that can be imposed for the most serious infringements -- i.e. not having sufficient customer consent to process data or violating the core of 'Privacy by Design' concepts.

There is a tiered approach to fines -- i.e. a company can be fined 2 percent for not having their records in order (article 28), not notifying the supervising authority and data subject about a breach or not conducting impact assessment. It is important to note that these rules apply to both controllers and processors -- meaning 'clouds' will not be exempt from GDPR enforcement.

European IT Security Market Development

Canalys forecasts that this will spur the IT security market in Western and Central Eastern Europe to grow 16 percent to $11.5 billion in 2018. However, Canalys believes that there are significant differences in preparedness between companies of varied sizes.

"Our research shows that large businesses are well informed on information security regulations, with resources in place to ensure compliance. With ransomware threats such as WannaCry causing havoc, shareholders will be more willing to accept increased data security and compliance budgets to protect their long-term investment," said Nushin Vaiani, senior analyst at Canalys.

Small and medium businesses (SMBs) naturally have fewer resources, placing obvious constraints on implementation. But there are potentially massive fines for non-compliance with GDPR, potetially putting some SMBs under the threat of bankruptcy.

According to the Canalys assessment, all businesses must take action now to safeguard from this danger. Overall, the net effect on SMBs will be significant and many are turning to their existing relationships with IT channel partners for help.

Canalys expects this trend to accelerate in the coming weeks and months, as SMBs realize they have little time left to implement changes if they are to meet the May 2018 deadline.

Thursday, June 08, 2017

Cloud Services Continue to Drive IT Server Market Shift

The shift to public cloud computing continues to impact on-premises IT data centers. Vendor revenue in the worldwide server market declined 4.6 percent year-over-year to $11.8 billion in the first quarter of 2017 (1Q17), according to the latest market study by International Data Corporation (IDC).

Overall server market growth continues to slow down with most hyperscale service providers waiting until the second half of the year for new investment. High-end server sales continue to be a drag on overall market performance.

The market has also been negatively affected by DRAM pricing issues. Worldwide server shipments increased 1.4 percent year over year to 2.21 million units in 1Q17. That said, one customer accounted for more than 10 percent of the servers shipped in 1Q17.

IT Server Market Development

Volume server revenue declined by 3.4 percent to $9.5 billion, while mid-range server revenue grew 16.5 percent to $1.3 billion. Demand for high-end systems experienced a year-over-year revenue decline of 29 percent to $1 billion. IDC expects continued long-term secular declines in high-end system revenue.

"The server market continues to struggle to find growth," said Kuba Stolarski, research director at IDC.

According to the IDC assessment, as the market prepares for the switch to Intel Skylake this year, we may be witnessing a shift in how workloads are deployed in the future, and what architectural choices will be made around modularity, operating environments, software, and cloud services.

As indicated by this quarter's results, one large server customer appears to be betting on a major transition to cloud services, as it alone accounted for approximately a quarter of a million servers deployed in the first quarter.

Results for the quarter were right in line with what IDC had forecast in the fourth quarter of 2016. Demand for two-socket form factors continues to control a majority of unit shipments now and going forward as they are the focal point for density-optimized servers.

Two-socket machines are attractive for data center deployment in terms of both power usage and cost per server. Their growth rate may slow down over the short term and, because they control a significant portion of the overall server market, the growth rate will be dampened worldwide.

Outlook for Server Market Momentum

On a geographic basis, Central and Eastern Europe (CEE) was the fastest growing region with 7.2 percent year-over-year growth, followed by Canada with 2.8 percent, and Asia-Pacific (excluding Japan) with 0.9 percent.

Within the Asia-Pacific region, China grew a modest 1.7 percent. the United States declined 2.3 percent, Japan declined 4.3 percent, Western Europe declined 14.3 percent, Latin America declined 14.6 percent, and Middle East and Africa declined 14.8 percent.

Demand for x86 servers was flat (0 percent) in 1Q17 with $10.6 billion in revenues. Non-x86 servers declined 30.9 percent year-over-year to $1.3 billion. These results continue to indicate an apparent lack of server market momentum.