Technology | Media | Telecommunications

Monday, May 21, 2018

Could 5G Wireless Disrupt the Broadband Status-Quo?

Across the globe, most wireline service providers operate in a monopoly or duopoly environment where competition is limited and somewhat predictable. The prior limitations of wireless broadband internet access have not impacted the wireline status-quo. That could change.

The worldwide fixed wireless broadband access market has been growing steadily over the past several years. ABI Research now forecasts that the market will grow by 30 percent in 2018 and will generate $18 billion in service revenue. That being said, let's explore the market dynamics.

Wireless Broadband Market Development

As 5G fixed wireless broadband access is about to be launched in North America during 2018, it's likely to expand and provide some telecom service provider customers with better quality service in the years to come.

Today, LTE is the most widely used technology to provide fixed wireless broadband service across the world. Fixed LTE is mainly deployed for residential broadband service in the areas where fixed broadband infrastructure is poor, enabling network operators to provide residential broadband service more cost effectively compared to wired broadband deployment.

Recently, United States’ operator Verizon Wireless announced its plans to launch 5G fixed wireless broadband service to a 'select' group of its residential customers in the second half of 2018.

Verizon plans to first launch 5G fixed wireless broadband service in California followed by additional markets later and expects initial 5G fixed wireless broadband deployment to cover around 30 million U.S. households.

In addition to Verizon, other network operators -- including AT&T and Charter -- are also carrying out 5G fixed wireless broadband tests in 'select' markets in the United States. 5G fixed wireless trials are not limited to North America.

In Europe, Orange, Elisa, and telecom infrastructure company Arqiva are performing 5G fixed wireless trials. In APAC, Australia’s Optus is planning for 5G fixed wireless service launch in 2019.

"5G fixed broadband access is expected to enable robust services with a reliable capacity to meet the need of residential broadband users. 5G technology can support a theoretical speed up to 20 Gbps with latency 1 ms, enabling operators to provide superior broadband access without installing fiber-optic cables to every single household," said Khin Sandi Lynn, industry analyst at ABI Research.

According to the ABI assessment, early 5G fixed wireless broadband access is likely to focus in dense urban areas and in rural areas when 5G is widely launched commercially. They forecast that the worldwide fixed wireless broadband market will grow at a CAGR of 26 percent, generating $45.2 billion in revenue during 2022.

Outlook for Increased Broadband Competition

Governments have an important role to play in setting public policies that encourage wireless broadband services to compete directly with incumbent wireline broadband service providers. The current 5G 'select' deployment plans seem to indicate that telecom service providers won't utilize the technology to increase competition.

If they're left alone to decide where they choose to deploy 5G services -- without government intervention -- then it's likely there won't be any meaningful disruption of the current status-quo. Furthermore, in North America, local telecom regulators -- such as the 'State Utility Commission' -- are unlikely to act in the interests of consumers, given their prior track record. Therefore, the Federal government is where consumer groups must seek policy change that results in more real competition.

In the Global Networked Economy, every nation competes via telecom infrastructure investment. In this environment, myopic thinking is the enemy of progress. Incumbent telecom service providers investment strategy typically focuses on their own commercial interest, not in the national interest.

Friday, May 18, 2018

How Digital Business Skill Demand Drives IT Investment

Strategic investment in business technology is led by CIOs and CTOs that launch new digital transformation initiatives. Those digital growth plans result in the modernization of IT infrastructure. However, an internal IT staff skills shortfall will continue to fuel demand for more savvy and experienced digital business talent.

Worldwide revenues for IT Services and Business Services totaled $502 billion in the second half of 2017 (2H17) -- that's an increase of 3.6 percent year-over-year (in constant currency), according to the latest market study by International Data Corporation (IDC).

Digital Business Services Market Development

"As customers look to digital transformation initiatives to stay relevant in the new economy, vendors face both opportunities and challenges," said Xiao-Fei Zhang, program director at IDC. "While automation and new cloud delivery models reduce overall price, new digital services will require clients to spend more time and resources to modernize their existing IT environment,"

For the full year 2017, worldwide services revenues came to just shy of the $1 trillion mark. Year-over-year growth was around 4 percent, which slightly outpaced the worldwide GDP growth rate.

The growth in professional services reflects stronger business confidence that's fueled by a brighter economic outlook and a shared sense of urgency for large-scale digital transformation projects.

Looking at different services markets, project-oriented revenues continued to outpace outsourcing and support & training, mainly due to organizations freeing up pent-up discretionary spending from earlier years and feeling the need to digitize their organizations via large scale projects.

Specifically, project-oriented markets grew 4.6 percent year-over-year to $186 billion in 2H17 and 5 percent to $366 billion for the entire year. Most of the above-the-market growth came from business consulting: its revenue grew by almost 7.8 percent in 2H17 and 8.2 percent for the entire year to $115 billion.

In large digital transformation projects, high-touch business consultants continue to extract more value than mere IT resources do. Most major management consulting firms posted strong earnings in 2017.

IT-related project services, namely custom application development (CAD), IT consulting (ITC), and systems integration (SI), still make up the bulk -- more than two thirds -- of the overall project-oriented market.

While growing slower than business consulting, these three markets showed significant improvement over the previous year: CAD, ITC, and SI combined grew by 3.7 percent year-over-year to $251 billion for the full year 2017.

IDC believes that some 2015 and 2016 projects were pushed out to 2017, which helped to drive up spending during 2H17. This coincides with the strong rebound on the software side, as IT project-related services are largely application driven.

Because large digital business projects not only drive up new services but also pull in traditional services, IDC believes that the actual volume of IT project services grew even faster in 2017 but was offset somewhat by lower pricing.

In outsourcing, revenues grew by 3.3 percent year-over-year to $238 million in 2H17. Application-related managed services revenues (hosted and on-premise application management) outpaced the general market – growing more than 6 percent in 2H17 and 5.8 percent for the entire year.

Enterprise buyers have leveraged automation and cloud delivery to reduce the cost of operating IT applications. For example, infusing artificial intelligence (AI) into application life-cycle activities to drive better predictive maintenance and application portfolio management.

However, in their continuing drive for digital transformation, organizations are increasingly relying on external professional services providers to navigate complex technical environments and supply talent with new skills (hybrid cloud, big data analytics, machine learning, blockchain, etc.).

Digital transformation also requires organizations to standardize and modernize their existing IT application assets. Therefore, IDC forecasts application outsourcing markets to continue outpacing other outsourcing markets in the coming years.

Outlook for IT Outsourcing Service Growth

On the infrastructure side, while hosting infrastructure services revenue grew by 4.9 percent in 2H17, positively impacted by cloud adoption, IT Outsourcing (ITO), a larger market, declined by 2 percent. Combined, the two markets were essentially flat.

IDC believes that while overall infrastructure demand remains robust, the ITO market is negatively impacted the most by cloud cannibalization across all regions: cloud, particularly public cloud, reduces price far greater than new demand grows. For example, IDC estimates that, by 2021, almost one third of ITO services revenue will be cloud-related.

Monday, May 14, 2018

How AI Business Value Will Reach $3.9 Trillion in 2022

More CIOs and CTOs are exploring the commercial value of intelligent systems that can enhance their organization's performance. Global business value from artificial intelligence (AI) is forecast to total $1.2 trillion in 2018 -- that's an increase of 70 percent from 2017, according to the latest market study by Gartner.

Moreover, AI-derived business value is forecast to reach $3.9 trillion in 2022. According to the Gartner assessment, there are three different sources of AI business value:

  1. Customer experience: The positive or negative effects on indirect cost. Customer experience is a necessary precondition for widespread adoption of AI technology to both unlock its full potential and enable value.
  2. New revenue: Increasing sales of existing products and services, and/or creating new product or service opportunity beyond the existing situation.
  3. Cost reduction: Reduced costs incurred in producing and delivering those new or existing products and services.

AI Technology Market Development

"AI promises to be the most disruptive class of technologies during the next 10 years due to advances in computational power, volume, velocity and variety of data, as well as advances in deep neural networks (DNNs)," said John-David Lovelock, research vice president at Gartner.

Gartner analysts believe niche solutions that address one specific use-case very well will be a key adoption strategy for new AI-enhanced products and services acquired by the leading enterprises.

AI business value growth shows the typical S-shaped curve pattern associated with an emerging technology. In 2018, the growth rate is estimated to be 70 percent, but it will slow down through 2022. After 2020, the curve will flatten, resulting in somewhat low growth over time.

In 2021, driving new digital revenue streams will become the dominant application, as companies uncover business value in using AI to increase sales of existing products and services, as well as to discover opportunities for new products and services.

Breaking out the global business value derived by AI type, decision support or augmentation (such as DNNs) will represent 36 percent of the global AI-derived business value in 2018. By 2022, these apps will have surpassed all other types of AI initiatives to account for 44 percent of global AI-derived business value.

"DNNs allow organizations to perform data mining and pattern recognition across huge datasets not otherwise readily quantified or classified, creating tools that classify complex inputs that then feed traditional programming systems. This enables algorithms for decision support or augmentation to work directly with information that formerly required a human classifier," said Mr. Lovelock.

'Virtual agents' allow corporate organizations to reduce human labor costs as they take over simple requests and tasks from a call center, help desk and other service 'human agents', while handing over the more complex questions to their human counterparts.

Virtual agents will account for 46 percent of the global AI-derived business value in 2018, and 26 percent by 2022, as other AI types mature and contribute to business value.

Outlook for Emerging AI Applications Growth

As unstructured data growth accelerates in the corporate world, utilizing decision automation will bring significant new business value to organizations. For now, decision automation accounts for just 2 percent of the global AI-derived business value in 2018, but it will grow to 16 percent by 2022.

Furthermore, smart products account for 18 percent of global AI-derived business value in 2018, but will likely shrink to 14 percent by 2022 as other DNN-based system types mature and overtake smart products in their contribution to business value.

Tuesday, May 08, 2018

Technology, Media and Telecom 2018 M&A Deal Update

As more companies use technology innovation to improve their scale, automation and robotics continue to generate interest among investors. Mapping and software development have significant potential, particularly as most business leaders seek to digitize their commercial operations.

This trend will continue for some time. Consulting on the various types of new technology tools will also likely be an area to follow in the near future, according to the latest worldwide market study by Mergermarket.

Technology, Media & Telecom Market Development

Moreover, emerging applications for artificial intelligence (AI) are in vogue, and China has emerged as a potential leader in this space, with dealmakers looking to invest in startups specializing in this area.

Until the Facebook data protection issue became public knowledge in mid-March, first-quarter (Q1) 2018 activity within the global Technology, Media & Telecommunications (TMT) sector as a whole was experiencing a boost from several large transactions.

Overall, global TMT activity was up 87.1 percent in value in Q1 2018 to $134 billion worth of deals compared to $71.6 billion announced in Q1 2017. However, deal count fell by 20 transactions -- from 815 deals in Q1 2017 to 795 in Q1 2018 -- continuing a downward trend over the last three quarters.

The largest transaction, and the only mega-deal (>$ 10 billion) of Q1 2018 was the $10.5 billion takeover of Denmark-based TDC -- a telecom company providing both traditional and digital services -- by a consortium including PKA Pension Funds, Arbejdsmarkedets Till√¶gspension, and Macquarie’s European Infrastructure and Real Assets Group.

Other notable transactions for the sector in Q1 2018 approaching mega-deal status were Microchip Technology’s $ 9.8 billion bid for Microsemi Corporation, a maker of analogue and mixed-signal integrated circuits and semiconductors, and FUJIFILM Holdings’ $8.6 billion bid for a 50.1 percent stake in Xerox Corporation.

Regionally, the U.S. market was responsible for the largest share of global TMT deal value in Q1 2018 with 40.4 percent ($54.1 billion) of market share. This figure was up from the 38.5 percent share by value that the U.S. had claimed in Q1 2017 with $27.6 billion.

Europe, meanwhile, accounted for 33.5 percent of Q1 2018’s total TMT deal value with $44.9 billion, up from a 13.7 percent market share in Q1 2017 with $9.8 billion.

Asia-Pacific was down from its 38.1 percent market share in Q1 2017 with $27.3 billion, and was responsible for 21.9 percent of total TMT deal value with $29.4 billion in Q1 2018.

Overall, Technology accounted for 62.2 percent of TMT’s total deal value with $83.4 billion, down slightly compared to 63.8 percent in Q1 2017. However, Tech’s total deal value was at the same time 82.5 percent higher than Q1 2017’s total of $45.7 billion.

Meanwhile, there were only 621 Technology transactions announced in Q1 2018, seven fewer than during the same period last year.  The Media and Telecommunications segments were on par with each other in the first quarter of the year, reaching just over $25 billion each, though the former recorded 141 transactions while Telecom recorded 33.

Outlook for TMT Global Market Growth

According to the Mergermarket assessment, with anxiety surrounding the culpability and responsibility of the hyperscale web technology firms -- such as Facebook and Google -- now under scrutiny, the rest of the year remains somewhat uncertain. Therefore, we'll have to wait and see how the TMT market evolves.

Friday, May 04, 2018

How China is Driving Industrial IoT Application Growth

Worldwide information and communications technology (ICT) spending -- including new technologies -- is expected to exceed $5.6 trillion in 2021 with growth accelerating through the end of the forecast period, according to the latest worldwide market study by International Data Corporation (IDC).

By 2021, new technologies, including Internet of Things (IoT) solutions, robots and drones, augmented reality and virtual reality (AR/VR) headsets, and 3D printers, will account for almost a quarter (23 percent) of total ICT spending.

ICT Market Development

Overall, new technology investments -- including the four pillars of cloud, mobile, big data analytics, and social -- will make up more than 70 percent of worldwide ICT spending. IDC reports that the fastest-growing technology markets last year were AR/VR, cognitive and artificial intelligence (AI), 3D printing, and robotics.

Meanwhile, IoT has already grown to account for 15 percent of ICT spending, including new operational technology software and services, which represent expanding opportunity and potential disruption for traditional software and services vendors.

But while the adoption of new technologies is broadly positive across all countries, there are key geographic differences in terms of early adoption and short-term opportunities.

"Mature economies are leading the way in some markets, thanks to more advanced cloud infrastructure and software innovation driving rapid adoption of solutions around big data and analytics, cognitive AI, and cloud-based software," said Stephen Minton, vice president at IDC.

According to the IDC assessment, it's a different story with technologies that are focused on industrial use cases in the manufacturing industry, such as IoT and robotics. Emerging leaders like China are driving much of the innovation in real-world deployments around these industry-focused technologies.

China accounted for 28 percent of worldwide IoT spending in 2017, and 29 percent of total robotics investments, compared to just 12 percent of traditional ICT spending categories (hardware, software, services and telecom).

Japan and some other Asia-Pacific countries are also early adopters of robotics and IoT. 3D printing has seen strong early adoption in China and Germany. Cognitive AI investments are dominated by U.S. businesses, who are also leading the way in AR/VR prototypes.

Emerging markets, such as India and Brazil, are major contributors to overall mobility spending, but are still playing catch up when it comes to cloud.

Outlook for ICT Market Growth

"While the traditional ICT market has become more homogenous in the last few years, as emerging markets caught up to mature economies and often leapfrogged legacy technologies in their adoption of mobile solutions, the 3rd Platform brings with it a new period of fragmentation," added Minton.

The U.S. is once again at the forefront of much new software innovation, while countries like China and Germany are driving industry-focused categories. Understanding these regional and country-level differences, including the drivers and inhibitors behind likely adoption curves for new technologies, will be key to ICT vendor strategy in the next 5-10 years.

Wednesday, May 02, 2018

Why Fintech Innovators will Disrupt B2B Money Transfer

The money transfer segment of the commercial financial services sector is vast, with transactions taking place on both a domestic and international cross-border basis. A recent Juniper Research market study found that global cross-border B2B money transfers totalled $136 trillion in 2017.

Yet, to date, the B2B money transfer industry has not experienced the start-up innovation and disruption like other areas in the finance and commerce space. That being said, we can anticipate that 2018 will be pivotal, as more fintech entrepreneurs pursue this previously untapped opportunity.

B2B Money Transfer Market Development

New study findings have concluded that the cross-border B2B money transfer market is ripe for disruption, as new technologies and legislative changes redefine traditional banking practices across the globe. Cross-border B2B transactions will exceed $218 trillion by 2022, up from $150 trillion this year.

In comparison, global GDP was placed at just $77 trillion last year, rising by 3 percent in 2018. The new market research found that fintech was starting to have a profoundly disruptive effect on traditional cross-border B2B transactions.

"Whilst traditional banks still facilitate the vast bulk of B2B cross-border transactions, new technologies, such as virtual accounts, eInvoicing, and blockchain technology will aid in driving businesses to solutions which provide savings in time, efficiencies, and transparency," said Lauren Foye, senior analyst at Juniper Research.


The proportion of cross-border B2B transfer values facilitated by newer fintech start-ups and disruptive technologies, will grow from 7.5 percent in 2017 -- equating to $10.4 trillion, to reach 13.3 percent or $29 trillion by 2022. This will occur as more businesses utilize these efficient and transparent methods in a notoriously cloudy industry.

Juniper identifies payment facilitators Visa and Mastercard as beacons in this space. Visa has partnered with fintech start-up ‘Billtrust’ to provide virtual cards for B2B transactions, as well as offering its own ‘Visa B2B Connect’ service which utilizes Chain Core, an enterprise blockchain solution. Likewise, Mastercard is working with Optal, to offer virtual accounts to businesses.

Outlook for B2B Money Transfer Growth

Juniper believes that banks are well placed to benefit from the opportunity posed in B2B transfers. For instance, legislative changes such as PSD2 in Europe, serve as a perfect opportunity to partner with fintechs to deliver innovative services to companies; lest institutions fall behind and see fintechs ultimately out manoeuvre them.

Meanwhile, proactive banks will seek to implement blockchain technology -- with Ripple now hosting more than 100 banks on its network. Clearly, the market outlook is very promising for the most progressive technology vendors and service providers.

Monday, April 30, 2018

How Augmented Reality Aids Automobile Manufacturers

Many CIOs and CTOs are pursuing a competitive advantage that's enabled by emerging technologies. As an example, early-adopters in the automobile industry are exploring use cases with Augmented Reality (AR), because it offers benefits to the whole value chain -- from product design through production and sales.

As a result, smart glasses shipment for global automotive industry use will reach 1.7 million units in 2022. The total automotive AR market is expected to grow at CAGR of 177 percent during the forecast period and reach $5.5 billion in 2022, according to the latest worldwide market study by ABI Research.

Augmented Reality Apps Market Development

"Augmented Reality benefits automotive manufacturers at many stages of a product cycle, including design, prototyping, manufacturing, and marketing," said Marina Lu, senior analyst at ABI Research.

In design, digital 3D visualization and analysis of body structure and components can save time and resources. Collaboration is streamlined and improved, evaluating the same content in real time, which ultimately speeds up decision-making.

AR technology supplements traditional tools, such as clay modeling, with virtual components on top of an existing physical object, to show design variants or to support design reviews, again shortening cycles and saving on design and prototyping costs.

High-end, head-worn AR devices are on a path to being applied for more complicated use cases in the automotive industry. Moreover, AR has already begun to transform the marketing and sales process for the automotive industry. Customers can interact with the customized digital vehicles in high detail before making a purchase decision.

Using Apple’s ARKit, Audi has released an AR app which enables users to place photorealistic 3D models of Audi vehicles on a surface wherever you are located and resize it as you find fit. Hyundai, Jeep, and Volvo have also begun to leverage AR for virtual test drives and digital showroom experiences, saving time, real estate, and cost.

According to the ABI assessment, while it is still early for automotive AR use, the applications at play have already shown a proven return on investment. The anticipated ROI is always the first question to answer for any new technology, and this is especially true for AR.

Outlook for AR Application Deployment

Collaboration, step by step instruction, remote expertise, 3D spatial visualization, and more have all been tried across industries, with positive and predictable results. The importance of design and prototyping combined with the slim margins of the automotive industry make it a prime candidate for wide AR adoption.

From 3D visualization with designers to enhancing employee efficiency and safety on the plant floor to enticing buyers with digital experiences, the symbiotic relationship between augmented reality applications and the end-to-end automotive market will continue to strengthen and grow.

Tuesday, April 24, 2018

Public Cloud Revenue will Reach $186.4 Billion in 2018

Around the globe, CIOs and CTOs continue to transition to a hybrid multi-cloud service delivery model, supported by on- and off-premises IT infrastructure. Meanwhile, the worldwide public cloud services market is projected to grow 21.4 percent in 2018 to reach $186.4 billion -- that's up from $153.5 billion in 2017.

The fastest-growing segment of the market is cloud Infrastructure as a Service (IaaS), which is forecast to grow 35.9 percent in 2018 to reach $40.8 billion, according to the latest worldwide market study by Gartner.

Public Cloud Market Development

Moreover, Gartner expects the top ten cloud service providers to account for nearly 70 percent of the IaaS market by 2021 -- that's up from 50 percent in 2016.

"The increasing dominance of the hyperscale IaaS providers creates both enormous opportunities and challenges for end-users and other market participants," said Sid Nag, research director at Gartner.

According to the Gartner assessment, while public cloud enables efficiencies and cost benefits, organizations need to be cautious about IaaS providers potentially gaining unchecked influence over CIO and CTO budgets.

In response to multi-cloud adoption trends, organizations will increasingly demand a simpler way to move workloads, applications and data across cloud providers' IaaS offerings without penalties. And, cloud migration and management tools will be instrumental in easing the transition to hybrid IT scenarios.

Software as a service (SaaS) remains the largest segment of the cloud market, with revenue expected to grow 22.2 percent to reach $73.6 billion in 2018. Gartner expects SaaS to reach 45 percent of total application software spending by 2021.

"In many areas, SaaS has become the preferred delivery model," said Mr. Nag. "Now SaaS users are increasingly demanding more purpose-built offerings engineered to deliver specific business outcomes."

Within the platform as a service (PaaS) category, the fastest-growing segment is database platform as a service (dbPaaS), expected to reach almost $10 billion by 2021. Hyperscale cloud providers are increasing the range of services they offer to include dbPaaS.

"Although these large vendors have different strengths, and customers generally feel comfortable that they will be able to meet their current and future needs, other dbPaaS offerings may be good choices for organizations looking to avoid lock-in," said Mr. Nag.

Outlook for Public Cloud Market Growth

Although public cloud revenue is growing more than initially forecast, Gartner expects growth rates to stabilize from 2018 onward, reflecting the maturity that public cloud services will gain within a wider IT spending mix that includes private cloud and traditional on-premises IT infrastructure.

Note, this forecast excludes cloud advertising, which was removed from Gartner's public cloud service forecast segments in 2017.

Thursday, April 19, 2018

Cloud IT Infrastructure Market to Reach $52.3B in 2018

Cloud service adoption continues to grow, as traditional IT vendors react to market demand. Total spending on IT infrastructure products for deployment in cloud environments is forecast to reach $52.3 billion in 2018 -- that's year-over-year growth of 10.9 percent, according to the latest worldwide market study by International Data Corporation (IDC).

Public cloud data centers will account for a majority of this spending, 65.9 percent, growing at the fastest annual rate of 11.3 percent. Off-premises private cloud environments will represent 13 percent of cloud IT infrastructure spending, growing at 12 percent year over year.

On-premises private clouds will account for 61.7 percent of spending on private cloud IT infrastructure and will grow 9.1 percent year-over-year in 2018.

Cloud IT Infrastructure Market Development

"Growing expansion of digital transformation initiatives enables further adoption of cloud-based solutions around the globe. This will result in a continuous shift in the profile of IT infrastructure buyers. SaaS, PaaS, and IaaS offerings address a broad range of business and IT needs of enterprises from 'lift-and-shift' to emerging workloads," said Natalya Yezhkova, research director at IDC.

Worldwide spending on traditional, non-cloud, IT infrastructure is expected to decline by 2 percent in 2018 but nevertheless will account for the majority, 54.7 percent, of total end-user spending on IT infrastructure products -- that's down from 57.8 percent in 2017.

This latest decline represents a faster share loss than in the previous three years. Moreover, the growing share of cloud environments in overall spending on IT infrastructure is common across all regions of the world.


In cloud IT environments, spending in all technology segments, except for storage platforms, is forecast to grow at double digit rates in 2018. Ethernet switches and compute platforms will be the fastest growing at 20.9 percent and 12.4 percent, respectively, while spending on storage platforms will grow 6 percent. Investments in all three technologies will increase across all cloud deployment models – public cloud, private cloud off-premises, and private cloud on-premises.

Long-term, IDC expects spending on off-premises cloud IT infrastructure will grow at a five-year compound annual growth rate (CAGR) of 10.8 percent, reaching $55.7 billion in 2022.

Public cloud datacenters will account for 83.6 percent of this amount growing at a 10.6 percent CAGR while spending on off-premises private cloud infrastructure will increase at a CAGR of 11.4 percent.

Outlook for Cloud IT Infrastructure Growth

Combined with on-premises private cloud, overall spending on cloud IT infrastructure will grow at an 10.9 percent CAGR and by 2022 will surpass spending on non-cloud IT infrastructure.

Spending on on-premises private cloud IT infrastructure will grow at a 11.5 percenet CAGR, while spending on non-cloud IT (on-premises and off-premises combined) will decline at a 2.7 percent CAGR during the same period.

Traditional IT vendors must act now to assure their survival in the evolving domain of hyperscale multi-cloud service offerings, and prepare for the predictable reduction in demand for legacy data center infrastructure. New momentum this year signifies the acceleration of a pivotal transformation in the shift to a hybrid multi-cloud era.

Monday, April 16, 2018

Cybersecurity Solution Spending will Reach $134 Billion

The online security market is expanding globally, and for good reason. The dramatic increase in connected devices has created a huge attack surface for cyber criminals. Whether their motive is mischief, or theft, the impacts can be far-reaching and very costly.

As an example, the downtime cost on Amazon’s North American sales operations as a result of the 2016 'Dyn' cyberattack -- ~211 minutes of service disruption -- resulted in a loss of $32 million.

Most companies don't have the same eCommerce revenue as Amazon, but this event demonstrates the impact a cyberattack can have on targeted companies.

Cybersecurity Solution Market Development

Global business investment on cybersecurity solutions will grow by 33 percent over the next 4 years, reaching $134 billion annually by 2022, according to the latest worldwide study by Juniper Research.

Their new research analysis found that nearly 70 percent of 2022 spending would originate from medium-sized businesses, as cybercriminals target some of the least protected commercial operations.

In the context of strategies for financial services, mobile operators, enterprise and IoT service providers, the research highlighted that digital transformation and IoT were key catalysts for increasing spend to defend IT assets from cyber threats.


Juniper anticipates that the cumulative cost of data breaches between 2017 and 2022 will reach $8 trillion, with variable per-business losses depending on the nature and scale of the attack.

Organizations must now plan for risk mitigation, rather than prevention. Moreover, service providers in high-risk environments will be forced to restructure their networks to avoid potential compliance breaches, data theft or service outage.

"Once a single endpoint is breached, the big danger is lateral movement across the network. Layered networks, proper lifecycle management and user ‘least privilege’ approaches will prove key to containing serious breaches," said Steffen Sorrell, senior analyst at Juniper Research.

Outlook for Cybersecurity Solutions

Securing the IoT, with 46 billion connected units anticipated in 2021, would require more forward-thinking. With devices ‘in the field’ for years at a time, adopting a cybersecurity strategy that can adapt to future demands is essential.

The study also uncovered that cybercriminal efforts can defeat some approaches. For example, the Cerber family of ransomware has analyzed how machine learning systems detect malware behavior and applied evasion techniques.