Advances in both the consumer and business technology sectors have driven the adoption of mobile internet access and associated service delivery. Applications of mobile devices -- by customers, business partners, or employees -- delivers unprecedented access to information, improved collaboration, and increased productivity.
Worldwide investment in mobility solutions is forecast to reach $1.8 trillion in 2022, according to the latest worldwide market study by International Data Corporation (IDC). While annual growth will vary somewhat, IDC expects the overall five-year compound annual growth rate (CAGR) will be 2.8 percent.
Furthermore, mobility spending is already on track to reach $1.63 trillion in 2018.
Mobility Solutions Market Development
Consumers will likely provide more than 70 percent of worldwide mobility spending, with slightly more than half of this amount spent on mobile connectivity services and most of the remainder going toward new devices, such as smartphones. Growth in the consumer mobile telecom sector will experience a five-year CAGR of 2.2 percent.
From a business use perspective, the professional services industry is forecast be the leader for mobility spending in 2018 at $44.9 billion, followed closely by the banking industry at $44.5 billion. Discrete manufacturing, retail, and education will round out the top 5 industries this year.
More than half of business mobility spending -- and nearly three quarters for the professional services industry -- will go to connectivity and enterprise mobility services. While mobile devices will be the second largest area of spending, most industries will also make considerable investments in mobile application development platforms.
The industries that will see the fastest growth in mobility solutions spending are discrete manufacturing and utilities (each with a 5.9 percent CAGR), telecommunications (5.8 percent CAGR), and process manufacturing (5.7 percent CAGR). Healthcare, with a 5 percent CAGR, is forecast to move ahead of the education sector by 2022.
"While the overall mobility market matures, with less device and platform differentiation, the use cases for mobile devices and apps in the enterprise continue to expand," said Phil Hochmuth, program director at IDC. "Business is moving beyond using mobile devices for basic communications and productivity applications to more advanced, task- and industry-specific apps and workloads."
From a technology perspective, mobility services will be the largest area of spending throughout the 2017-2022 forecast period, surpassing $1 trillion in 2021. Hardware will be the second largest technology category with spending forecast to reach $738 billion in 2022.
Despite being the smallest technology category, software spending will experience a 12.9 percent CAGR over the five-year forecast. Mobile enterprise applications will be the largest category of mobile software spending, growing to nearly $8 billion in 2022.
Businesses will also increase their efforts with mobile application development platforms, with a five-year CAGR forecast of 15.1 percent, making it the fastest growing technology category overall. In fact, all four software categories -- including mobile enterprise security and enterprise mobility management -- are forecast to deliver double-digit five-year CAGRs.
Outlook for Mobility Applications Investment
The United States and China will be the two largest geographic markets, with each seeing more than $300 billion in mobility spending in 2018. Japan will be the third largest country for mobility spending at nearly $107 billion, followed by India and Brazil at $51 billion and $44 billion, respectively.
India will see the fastest growth in mobility spending with a five-year CAGR of 7.9 percent. Venezuela and the Philippines will also have CAGRs greater than 7 percent while three countries -- Israel, Taiwan, and Saudi Arabia -- are forecast to experience a decline in mobility spending over the next five years.
Moreover, large and very large businesses combined will account for nearly $197 billion in mobility spending in 2018, growing to more than $245 billion in 2022. The small business sector will grow to more than $100 billion in 2022 while medium-size businesses will surpass $94 billion in 2022. The small office market will spend more than $70 billion on mobility solutions in 2022.
Technology | Media | Telecommunications
Monday, September 17, 2018
Friday, September 14, 2018
How Biometrics will Advance Mobile Payment Security
With password-based personal identity solutions becoming increasingly impractical, device vendors and mobile network service providers have begun implementing an alternative second factor -- using a fingerprint, iris, facial feature or vein pattern to establish an individual's identity.
Biometric identifiers provide the user an additional layer of smartphone security. There is increased reliance on biometric user identification in the security industry itself -- iris and fingerprint scanning are commonplace in the U.S. market, as well as Europe and some other parts of the world.
In the mobile communications arena, biometric recognition technologies are increasingly being deployed to identify mobile subscribers and to allow them to unlock their handsets, as well as being used as a method to authenticate the user when making a payment through mobile devices.
Mobile Payments Market Development
Juniper Research now predicts that the biggest shift in mobile payment security will be the move towards software-based methods, which rely on standard smartphone components.
They forecast that users of these methods will increase from an estimated 429 million in 2018 to over 1.5 billion in 2023. Juniper analysts believe that this will usher in an era where mobile payments authentication utilizes multiple biometrics based on people’s device usage patterns.
The latest Juniper Research worldwide market study found that the use of software-based biometrics -- such as that offered by voice or facial recognition -- will fuel growth in smartphone mobile payments across all price ranges.
The hardware-agnostic nature of this will be key to driving adoption, increasing biometrically authenticated transactions at an average of 76 percent per year globally. The major growth for this will come from Asia, with North American usage growing at just 46 percent per year.
"Mobile payment security will broaden hugely thanks to the implementation of pure software solutions," said James Moar, senior analyst at Juniper Research. "The key battle now will be to convince users, particularly those in Europe and North America, that these methods are just as secure as traditional hardware-based security."
Juniper Research anticipates that fingerprint biometrics will become increasingly prevalent, with an estimated 4.5 billion smartphones using the technology by 2023.
Outlook for Mobile Biometric Technologies
However, with the Apple iPhone X and other smartphones offering facial and eye-based identification, Juniper believes that fingerprint sensors will decline as a proportion of smartphone biometric hardware.
This will reduce from just over 95 percent of smartphones using fingerprint-based security in 2018, to under 90 percent by 2023. Thanks also to the increase in software-based biometrics, fingerprint sensor use will become much more contextual, rather than the default biometric option.
Biometric identifiers provide the user an additional layer of smartphone security. There is increased reliance on biometric user identification in the security industry itself -- iris and fingerprint scanning are commonplace in the U.S. market, as well as Europe and some other parts of the world.
In the mobile communications arena, biometric recognition technologies are increasingly being deployed to identify mobile subscribers and to allow them to unlock their handsets, as well as being used as a method to authenticate the user when making a payment through mobile devices.
Mobile Payments Market Development
Juniper Research now predicts that the biggest shift in mobile payment security will be the move towards software-based methods, which rely on standard smartphone components.
They forecast that users of these methods will increase from an estimated 429 million in 2018 to over 1.5 billion in 2023. Juniper analysts believe that this will usher in an era where mobile payments authentication utilizes multiple biometrics based on people’s device usage patterns.
The latest Juniper Research worldwide market study found that the use of software-based biometrics -- such as that offered by voice or facial recognition -- will fuel growth in smartphone mobile payments across all price ranges.
The hardware-agnostic nature of this will be key to driving adoption, increasing biometrically authenticated transactions at an average of 76 percent per year globally. The major growth for this will come from Asia, with North American usage growing at just 46 percent per year.
"Mobile payment security will broaden hugely thanks to the implementation of pure software solutions," said James Moar, senior analyst at Juniper Research. "The key battle now will be to convince users, particularly those in Europe and North America, that these methods are just as secure as traditional hardware-based security."
Juniper Research anticipates that fingerprint biometrics will become increasingly prevalent, with an estimated 4.5 billion smartphones using the technology by 2023.
Outlook for Mobile Biometric Technologies
However, with the Apple iPhone X and other smartphones offering facial and eye-based identification, Juniper believes that fingerprint sensors will decline as a proportion of smartphone biometric hardware.
This will reduce from just over 95 percent of smartphones using fingerprint-based security in 2018, to under 90 percent by 2023. Thanks also to the increase in software-based biometrics, fingerprint sensor use will become much more contextual, rather than the default biometric option.
Wednesday, September 12, 2018
How Digital Commerce Will Transform Global Retail
After two years of collecting data from payment networks, payment processors, financial institutions, digital wallet providers and retailers worldwide, 451 Research has launched its Global Unified Commerce Forecast. Here's a summary of their findings.
"The confluence of new technologies, new entrants and new consumer demands has catapulted retail into a state of flux," said Jordan McKee, research director at 451 Research. "These market shifts are influencing not only the way in which shoppers choose to obtain their desired goods and services, but also how and where they spend their money."
Digital Commerce Market Development
Their new research report provides quantitative guidance on these shifts in purchase activity in developed and emerging markets around the world. Among many findings, the latest 451 Research market study found several unique trends that will transform the retail sector in the years ahead.
One out of every ten dollars spent globally this year will be spent online.
Consumers are increasingly turning to online and mobile channels to make retail purchases that they traditionally would have made in-store in prior years -- thanks to new online purchasing experiences like click-and-collect and mobile order-ahead.
According to their global forecast, online commerce will continue to expand with speed through 2022, growing at more than six times the rate of in-store sales and cresting at $5.8 trillion.
China has become an e-commerce and m-commerce powerhouse in recent years, rapidly evolving into the world’s largest market for digital sales.
That said, the forecast predicts that China will exceed $1 trillion in online retail spending by year-end, making it the first country in the world to cross this significant digital commerce milestone.
Mobile has already become the primary computing platform for the world’s population, and by 2019 it will become the top digital commerce platform for consumers around the globe.
Mobile will increasingly be the first, and often the only, touchpoint retailers will have with a shopper.
Sales executed via mobile contactless payment methods -- such as Apple Pay and Google Pay -- are growing at an impressive 30.7 percent CAGR through 2022.
However, to keep this in perspective, consider that they will account for just 1.4 percent of global brick and mortar in-store retail sales in 2018 and reach only 3.8 percent by 2022.
According to 451 Research, their Global Unified Commerce Forecast is intended to become an annual market-sizing, segmenting and forecasting of omni-channel commerce across 60+ countries.
"The confluence of new technologies, new entrants and new consumer demands has catapulted retail into a state of flux," said Jordan McKee, research director at 451 Research. "These market shifts are influencing not only the way in which shoppers choose to obtain their desired goods and services, but also how and where they spend their money."
Digital Commerce Market Development
Their new research report provides quantitative guidance on these shifts in purchase activity in developed and emerging markets around the world. Among many findings, the latest 451 Research market study found several unique trends that will transform the retail sector in the years ahead.
One out of every ten dollars spent globally this year will be spent online.
Consumers are increasingly turning to online and mobile channels to make retail purchases that they traditionally would have made in-store in prior years -- thanks to new online purchasing experiences like click-and-collect and mobile order-ahead.
According to their global forecast, online commerce will continue to expand with speed through 2022, growing at more than six times the rate of in-store sales and cresting at $5.8 trillion.
China has become an e-commerce and m-commerce powerhouse in recent years, rapidly evolving into the world’s largest market for digital sales.
That said, the forecast predicts that China will exceed $1 trillion in online retail spending by year-end, making it the first country in the world to cross this significant digital commerce milestone.
Mobile has already become the primary computing platform for the world’s population, and by 2019 it will become the top digital commerce platform for consumers around the globe.
Mobile will increasingly be the first, and often the only, touchpoint retailers will have with a shopper.
Sales executed via mobile contactless payment methods -- such as Apple Pay and Google Pay -- are growing at an impressive 30.7 percent CAGR through 2022.
However, to keep this in perspective, consider that they will account for just 1.4 percent of global brick and mortar in-store retail sales in 2018 and reach only 3.8 percent by 2022.
According to 451 Research, their Global Unified Commerce Forecast is intended to become an annual market-sizing, segmenting and forecasting of omni-channel commerce across 60+ countries.
Monday, September 10, 2018
Telecom Providers Adopt Software-Defined Infrastructure
Within the telecom sector, the ongoing shift to software-defined infrastructure -- where IT workloads run virtualized or containerized on industry-standard hardware and software platforms -- is happening at an unprecedented pace.
This transformation is visible across the whole communications industry, where entire data centers are now being converted from vertically integrated systems to software-defined IT infrastructure.
Telecom IT Infrastructure Market Development
According to the latest worldwide market study by International Data Corporation (IDC), this trend will continue unabated as telecom service providers seek to expand their sphere of influence on initiatives such as mobile media delivery, edge computing, the Internet of Things and connected devices.
In an industry where legacy business models and government regulations can no longer guarantee revenue growth, telecom service providers must address intense competition by advancing digital innovation and reducing their traditional IT operating costs.
Initiatives such as 5G wireless communications or rich media delivery via mobile platforms cannot be delivered via legacy platforms that are rigid, have scaling challenges, and require months of planning to deploy efficiently.
An assessment from IDC sized the market for IT compute and storage infrastructure at $10.81 billion in 2017. However, as telecom service providers aggressively build out their infrastructure, IDC projects this market to experience a five-year compound annual growth rate (CAGR) of 6.2 percent with investment totaling $16.35 billion in 2022.
Moreover, communication network providers worldwide have followed the hyperscale public cloud services provider operations model. They have focused on increasing their in-house software development efforts using open source stacks and embraced Agile development practices.
They've also partnered with systems integrators to convert their data centers to software-defined architectures, participated in industrywide infrastructure consortiums, and made a concerted effort to adopt cloud-native technologies and also move network function workloads onto a virtualized or containerized infrastructure.
They are shifting to a single infrastructure platform that supports current and new generation telecom-specific as well as business applications that can run interchangeably in virtual machines, containers, and bare metal.
IDC analysts observed that many telecom service provider CIOs and CTOs have already ushered in a model for flexible and scalable consumption of IT compute, storage, and networking resources.
Outlook for Telecom IT Infrastructure Innovation
"Telecoms are the forefront of the innovation curve," said Ashish Nadkarni, group vice president at IDC. "The shift to a software-defined infrastructure enables them to focus on innovation, drive operations costs down, and continue to differentiate based on the uniqueness of their products and services."
The resulting report from the market study presents IDC's inaugural forecast for a significant portion of the IT infrastructure market for telecom service providers. Revenue is presented for the overall market and each of the two market segments (infrastructure hardware -- consisting of servers, storage -- and infrastructure software).
This transformation is visible across the whole communications industry, where entire data centers are now being converted from vertically integrated systems to software-defined IT infrastructure.
Telecom IT Infrastructure Market Development
According to the latest worldwide market study by International Data Corporation (IDC), this trend will continue unabated as telecom service providers seek to expand their sphere of influence on initiatives such as mobile media delivery, edge computing, the Internet of Things and connected devices.
In an industry where legacy business models and government regulations can no longer guarantee revenue growth, telecom service providers must address intense competition by advancing digital innovation and reducing their traditional IT operating costs.
Initiatives such as 5G wireless communications or rich media delivery via mobile platforms cannot be delivered via legacy platforms that are rigid, have scaling challenges, and require months of planning to deploy efficiently.
An assessment from IDC sized the market for IT compute and storage infrastructure at $10.81 billion in 2017. However, as telecom service providers aggressively build out their infrastructure, IDC projects this market to experience a five-year compound annual growth rate (CAGR) of 6.2 percent with investment totaling $16.35 billion in 2022.
Moreover, communication network providers worldwide have followed the hyperscale public cloud services provider operations model. They have focused on increasing their in-house software development efforts using open source stacks and embraced Agile development practices.
They've also partnered with systems integrators to convert their data centers to software-defined architectures, participated in industrywide infrastructure consortiums, and made a concerted effort to adopt cloud-native technologies and also move network function workloads onto a virtualized or containerized infrastructure.
They are shifting to a single infrastructure platform that supports current and new generation telecom-specific as well as business applications that can run interchangeably in virtual machines, containers, and bare metal.
IDC analysts observed that many telecom service provider CIOs and CTOs have already ushered in a model for flexible and scalable consumption of IT compute, storage, and networking resources.
Outlook for Telecom IT Infrastructure Innovation
"Telecoms are the forefront of the innovation curve," said Ashish Nadkarni, group vice president at IDC. "The shift to a software-defined infrastructure enables them to focus on innovation, drive operations costs down, and continue to differentiate based on the uniqueness of their products and services."
The resulting report from the market study presents IDC's inaugural forecast for a significant portion of the IT infrastructure market for telecom service providers. Revenue is presented for the overall market and each of the two market segments (infrastructure hardware -- consisting of servers, storage -- and infrastructure software).
Friday, September 07, 2018
Hybrid Industrial Cloud Computing Gains Momentum
Why do most internet of things (IoT) analytics operations occur in the cloud? The public cloud offers a centralized location for large amounts of affordable storage and computing power. But there are many instances in which it makes more sense to perform analytics closer to the thing or activity that is generating or collecting data – equipment deployed at customer sites.
This is particularly true in industrial and manufacturing environments, which are familiar with the challenges of managing massive amounts of unstructured data, but may lag when it comes to the virtualization of IT infrastructure.
Industrial Cloud Market Development
Advances in intelligent process manufacturing, factory automation, artificial intelligence and machine learning models all benefit from edge analytics implementations, yet will likely become islands of automation without a cohesive industrial cloud computing platform.
The industrial cloud covers everything from the factory floor to the industrial campus, and it is unifying the supply chain as companies employ a combination of digital business, product, manufacturing, asset, and logistics planning to streamline operations across both internal and external processes.
Industrial cloud applications make it easier to optimize asset and process allocations by modeling the physical world and use data and subsequent insights to enable new services or improve control over environmental, health, and safety issues.
The virtualization of business-critical infrastructure is transforming the production and distribution of goods and services throughout the supply chain, as industrial organizations shift focus to hybrid cloud computing deployments that connect and integrate on-premise IT resources with public cloud resources.
According to the latest worldwide market study by ABI Research, hybrid industrial cloud adoption will more than double over the next five years at a respectable 21.1 percent CAGR.
Initial IoT deployments in industrial markets reflect the sector's Machine to Machine (M2M) heritage: private cloud Infrastructure-as-a-Service (IaaS). The private IaaS model served as a solid starting point for many organizations that wanted the benefit of cloud scale, but with minimal interruption to normal IT operations.
The industrial cloud Platform-as-a-Service (PaaS) model extended the functional capabilities of on-premise IaaS solutions by shifting commodity tasks -- i.e. capacity planning, software maintenance, patching -- to public cloud service providers. Software-as-a-Service (SaaS) took it a step farther but in the form of managed services.
"Manufacturing and industrial organizations were not born from the same digital core as the people they employ or the products they produce," said Ryan Martin, principal analyst at ABI Research. "But they also harness some of the greatest potential thanks to massive amounts of untapped plant and process log data. Harvested with the right analytical tools and guidance, these data streams can deliver value greater than the sum of their parts."
The factory floor’s historical predisposition toward on-premise solutions has been supplanted by a campus-led approach underscored by a more recent push to connect HMI, SCADA, and control networks to higher-level enterprise systems, as well as the public cloud.
However, getting to the point where all these moving pieces come together in a real-world, production environment can be messy. Many Operational Technology (OT) devices come up short in key areas such as interoperability and security due to the prevalence of proprietary protocols in the legacy M2M market.
Outlook for Industrial Cloud App Development
"Most OT systems depend on infrastructure with lifetimes measured in decades, while IT systems can be upgraded frequently at little or no cost," concludes Martin.
As a result, industrial and manufacturing markets typically employ a staged technology integration strategy that favors suppliers whose hardware, software, and services can be acquired incrementally, with minimal disruption to existing operations. The hybrid IT infrastructure models can fit very well in this operational environment.
This is particularly true in industrial and manufacturing environments, which are familiar with the challenges of managing massive amounts of unstructured data, but may lag when it comes to the virtualization of IT infrastructure.
Industrial Cloud Market Development
Advances in intelligent process manufacturing, factory automation, artificial intelligence and machine learning models all benefit from edge analytics implementations, yet will likely become islands of automation without a cohesive industrial cloud computing platform.
The industrial cloud covers everything from the factory floor to the industrial campus, and it is unifying the supply chain as companies employ a combination of digital business, product, manufacturing, asset, and logistics planning to streamline operations across both internal and external processes.
Industrial cloud applications make it easier to optimize asset and process allocations by modeling the physical world and use data and subsequent insights to enable new services or improve control over environmental, health, and safety issues.
The virtualization of business-critical infrastructure is transforming the production and distribution of goods and services throughout the supply chain, as industrial organizations shift focus to hybrid cloud computing deployments that connect and integrate on-premise IT resources with public cloud resources.
According to the latest worldwide market study by ABI Research, hybrid industrial cloud adoption will more than double over the next five years at a respectable 21.1 percent CAGR.
Initial IoT deployments in industrial markets reflect the sector's Machine to Machine (M2M) heritage: private cloud Infrastructure-as-a-Service (IaaS). The private IaaS model served as a solid starting point for many organizations that wanted the benefit of cloud scale, but with minimal interruption to normal IT operations.
The industrial cloud Platform-as-a-Service (PaaS) model extended the functional capabilities of on-premise IaaS solutions by shifting commodity tasks -- i.e. capacity planning, software maintenance, patching -- to public cloud service providers. Software-as-a-Service (SaaS) took it a step farther but in the form of managed services.
"Manufacturing and industrial organizations were not born from the same digital core as the people they employ or the products they produce," said Ryan Martin, principal analyst at ABI Research. "But they also harness some of the greatest potential thanks to massive amounts of untapped plant and process log data. Harvested with the right analytical tools and guidance, these data streams can deliver value greater than the sum of their parts."
The factory floor’s historical predisposition toward on-premise solutions has been supplanted by a campus-led approach underscored by a more recent push to connect HMI, SCADA, and control networks to higher-level enterprise systems, as well as the public cloud.
However, getting to the point where all these moving pieces come together in a real-world, production environment can be messy. Many Operational Technology (OT) devices come up short in key areas such as interoperability and security due to the prevalence of proprietary protocols in the legacy M2M market.
Outlook for Industrial Cloud App Development
"Most OT systems depend on infrastructure with lifetimes measured in decades, while IT systems can be upgraded frequently at little or no cost," concludes Martin.
As a result, industrial and manufacturing markets typically employ a staged technology integration strategy that favors suppliers whose hardware, software, and services can be acquired incrementally, with minimal disruption to existing operations. The hybrid IT infrastructure models can fit very well in this operational environment.
Tuesday, September 04, 2018
Mobile Merchant Transaction Growth in Emerging Markets
Through its ubiquity and reach, the mobile phone has become an enabler of financial inclusion for developing nations across the globe. Many countries in areas such as Sub-Saharan Africa and the Asia-Pacific region have experienced the rapid adoption of 'mobile remittance' services.
Numerous telecom service providers have expanded and tailored their services to offer the world’s poorest populations access to more sophisticated products -- such as personal savings and loans. Worldwide a large number of people who remain 'unbanked' are without a bank account or credit history.
Financial Services Market Development
According to the latest global market study by Juniper Research, the use of mobile devices to make retail and store payments will act as a driver for financial services inclusion of the unbanked in emerging markets.
The research forecasts that mobile merchant transactions by unbanked individuals will grow from 1.8 billion per annum in 2018 to 3.8 billion by 2023.
The new study found that Kenya and India will be core incubator markets for merchant services. Safaricom’s Lipa Na M-PESA product already has over 100,000 merchants enrolled, and by 2023, merchant payment transactions in the Middle East & Africa alone will surpass $16 billion per year.
The research acknowledged Mastercard as a key innovator in this emerging financial services sector. The company has launched a QR code-based solution with the aim of connecting 40 million micro and small merchants to its payments network by the end of 2020.
"Previously merchant payments relied upon SMS to facilitate transactions, with customers texting a code to initiate payment; thus the process was slow and inefficient. With QR code solutions, shoppers simply scan a merchant code to rapidly initiate the payment process," said Lauren Foye, senior analyst at Juniper Research.
Juniper analysts praised mobile merchant payments, as they make digital transactions accessible to a much broader segment of society. To nurture this offering, Juniper recommends that mobile network providers offer value-added services, such as microloans, analytical tools and advice for businesses, in addition to SMS-based marketing services.
Outlook for Unbanked Financial Service Offerings
However, Juniper cautions that associated mobile service tariff rates must remain low, citing the fact that Lipa Na M-PESA was obliged to impose a 50 percent reduction in transaction fees last year, both to address customer indifference and resist new competition.
Also, in some emerging markets, mobile money will provide those in financial need with greater access to welfare and state payments. While bulk dispersal (G2P) payments have had some success, with the GSMA reporting 27 mobile money providers offering such transactions at the end of 2017, many users have been concerned about rising costs, negating their effectiveness.
Numerous telecom service providers have expanded and tailored their services to offer the world’s poorest populations access to more sophisticated products -- such as personal savings and loans. Worldwide a large number of people who remain 'unbanked' are without a bank account or credit history.
Financial Services Market Development
According to the latest global market study by Juniper Research, the use of mobile devices to make retail and store payments will act as a driver for financial services inclusion of the unbanked in emerging markets.
The research forecasts that mobile merchant transactions by unbanked individuals will grow from 1.8 billion per annum in 2018 to 3.8 billion by 2023.
The new study found that Kenya and India will be core incubator markets for merchant services. Safaricom’s Lipa Na M-PESA product already has over 100,000 merchants enrolled, and by 2023, merchant payment transactions in the Middle East & Africa alone will surpass $16 billion per year.
The research acknowledged Mastercard as a key innovator in this emerging financial services sector. The company has launched a QR code-based solution with the aim of connecting 40 million micro and small merchants to its payments network by the end of 2020.
"Previously merchant payments relied upon SMS to facilitate transactions, with customers texting a code to initiate payment; thus the process was slow and inefficient. With QR code solutions, shoppers simply scan a merchant code to rapidly initiate the payment process," said Lauren Foye, senior analyst at Juniper Research.
Juniper analysts praised mobile merchant payments, as they make digital transactions accessible to a much broader segment of society. To nurture this offering, Juniper recommends that mobile network providers offer value-added services, such as microloans, analytical tools and advice for businesses, in addition to SMS-based marketing services.
Outlook for Unbanked Financial Service Offerings
However, Juniper cautions that associated mobile service tariff rates must remain low, citing the fact that Lipa Na M-PESA was obliged to impose a 50 percent reduction in transaction fees last year, both to address customer indifference and resist new competition.
Also, in some emerging markets, mobile money will provide those in financial need with greater access to welfare and state payments. While bulk dispersal (G2P) payments have had some success, with the GSMA reporting 27 mobile money providers offering such transactions at the end of 2017, many users have been concerned about rising costs, negating their effectiveness.
Monday, September 03, 2018
Global Public Cloud Computing Revenue Trends
The global public cloud computing market continues its predictable growth trend. By and large, it's viewed as an IT commodity, where customers have no loyalty to cloud service providers that follow a 'race to the bottom' mindset -- providing the lowest price at a given moment in time. That said, everything about this business model seems somewhat tentative.
The worldwide cloud Infrastructure-as-a-Service (IaaS) market grew 29.5 percent in 2017 to reach a total revenue of $23.5 billion -- that's up from $18.2 billion in 2016, according to the latest market study by Gartner. Moreover, Amazon was the leading vendor in the IaaS market during 2017, followed by Microsoft, Alibaba, Google and IBM.
Cloud IaaS Market Development
"The top four providers have strong IaaS offerings and saw healthy growth as IaaS adoption is being fully embraced by mainstream organizations and as cloud availability expands into new regions and countries," said Sid Nag, research director at Gartner. "Cloud-directed IT spending now constitutes more than 20 percent of the total IT budget for organizations using cloud. Many of these organizations are now using cloud to support production environments and business-critical operations."
In the IaaS market, the competitive landscape is consolidating around the current leaders. The top four providers are all hyperscale IaaS providers and represent approximately 73 percent of the total IaaS market and 47 percent of the combined IaaS and infrastructure utility services (IUS) market.
Amazon is the clear leader in the worldwide IaaS market with an estimated $12.2 billion revenue in 2017 -- that's up 25 percent from 2016. Growth in 2017 was driven not only by customers that are migrating from traditional data centers to cloud IaaS, but also by customers implementing digital transformation projects, reflecting a broad range of use cases.
According to the Gartner assessment, Microsoft has secured the number two position in the IaaS market with growth of more than 98 percent on its IaaS offering, with revenue surpassing $3.1 billion in 2017. Microsoft delivers its IaaS capabilities through its Microsoft Azure offering, which is a collection of infrastructure and platform services.
In the third position, China's Alibaba growth in 2017 of 63 percent reflects the company's successful investment in research and development (R&D). Alibaba has the financial capability to continue this trend and invest in global expansion, giving them the potential to become an alternative to the leading global hyperscale cloud providers in select regions. Alibaba could disrupt the current cloud incumbents.
Outlook for Cloud Service Adoption and Growth
"This reflects a fundamental change in what and how organizations are consuming technology. Some legacy infrastructure offerings, such as IUS, are seeing lower and slower uptake that impacts the combined IaaS and IUS market," Mr. Nag said. "Additionally, a groundswell of demand for cloud-skilled personnel is forcing technology providers to change how they compete to meet this exploding demand."
There is no doubt that the IT infrastructure future will be driven by increased cloud computing adoption within on-premises data centers and in public cloud service platforms. A broad variety of hybrid cloud combinations and multi-cloud vendor deployments will be commonplace. What's unclear is the viability of cloud providers that are unable to maintain their ROI, as the competitive battle evolves over time.
The worldwide cloud Infrastructure-as-a-Service (IaaS) market grew 29.5 percent in 2017 to reach a total revenue of $23.5 billion -- that's up from $18.2 billion in 2016, according to the latest market study by Gartner. Moreover, Amazon was the leading vendor in the IaaS market during 2017, followed by Microsoft, Alibaba, Google and IBM.
Cloud IaaS Market Development
"The top four providers have strong IaaS offerings and saw healthy growth as IaaS adoption is being fully embraced by mainstream organizations and as cloud availability expands into new regions and countries," said Sid Nag, research director at Gartner. "Cloud-directed IT spending now constitutes more than 20 percent of the total IT budget for organizations using cloud. Many of these organizations are now using cloud to support production environments and business-critical operations."
In the IaaS market, the competitive landscape is consolidating around the current leaders. The top four providers are all hyperscale IaaS providers and represent approximately 73 percent of the total IaaS market and 47 percent of the combined IaaS and infrastructure utility services (IUS) market.
Amazon is the clear leader in the worldwide IaaS market with an estimated $12.2 billion revenue in 2017 -- that's up 25 percent from 2016. Growth in 2017 was driven not only by customers that are migrating from traditional data centers to cloud IaaS, but also by customers implementing digital transformation projects, reflecting a broad range of use cases.
According to the Gartner assessment, Microsoft has secured the number two position in the IaaS market with growth of more than 98 percent on its IaaS offering, with revenue surpassing $3.1 billion in 2017. Microsoft delivers its IaaS capabilities through its Microsoft Azure offering, which is a collection of infrastructure and platform services.
In the third position, China's Alibaba growth in 2017 of 63 percent reflects the company's successful investment in research and development (R&D). Alibaba has the financial capability to continue this trend and invest in global expansion, giving them the potential to become an alternative to the leading global hyperscale cloud providers in select regions. Alibaba could disrupt the current cloud incumbents.
Outlook for Cloud Service Adoption and Growth
"This reflects a fundamental change in what and how organizations are consuming technology. Some legacy infrastructure offerings, such as IUS, are seeing lower and slower uptake that impacts the combined IaaS and IUS market," Mr. Nag said. "Additionally, a groundswell of demand for cloud-skilled personnel is forcing technology providers to change how they compete to meet this exploding demand."
There is no doubt that the IT infrastructure future will be driven by increased cloud computing adoption within on-premises data centers and in public cloud service platforms. A broad variety of hybrid cloud combinations and multi-cloud vendor deployments will be commonplace. What's unclear is the viability of cloud providers that are unable to maintain their ROI, as the competitive battle evolves over time.
Wednesday, August 29, 2018
Big Data and Analytics Revenues will Reach $260 Billion
Enterprise data lakes are an essential component of many digital transformation projects. Numerous insights about customers, partners and other stakeholders are extracted from these significant commercial assets. Given the benefits, IT infrastructure and associated software investment will increase to support new use cases.
According to the latest worldwide market study by International Data Corporation (IDC), revenues for big data and business analytics (BDA) solutions will reach $260 billion in 2022 with a compound annual growth rate (CAGR) of 11.9 percent over the 2017-2022 forecast period.
BDA revenues are expected to total $166 billion in 2018 -- that's an increase of 11.7 percent over 2017.
Big Data and Analytics Market Development
The industries making the largest investments in big data and business analytics solutions throughout the forecast are banking, discrete manufacturing, process manufacturing, professional services, and federal or central government. Combined, these five industries will account for nearly half ($81 billion) of worldwide BDA revenues this year.
They will also be the industries with the largest BDA opportunity in 2022 when their total investment is forecast to reach $129 billion. The industries that will deliver the fastest BDA revenue growth are retail (13.5 percent CAGR), banking (13.2 percent CAGR), and professional services (12.9 percent CAGR).
"At a high level, organizations are turning to Big Data and analytics solutions to navigate the convergence of their physical and digital worlds," said Jessica Goepfert, program vice president at IDC.
According to the IDC assessment, the transformation takes a different shape depending on the industry. For instance, within the banking and retail sector investments are about managing and reinvigorating the customer experience. Whereas in manufacturing, they're reinventing themselves to become more high-tech.
Furthermore, over half of all BDA revenues will go to IT and business services during the course of the forecast. Services-related revenues will also be among the fastest growing areas of opportunity with a combined CAGR of 13.2 percent.
Software investments will grow to more than $90 billion in 2022, led by purchases of End-User Query, Reporting, and Analysis Tools and Relational Data Warehouse Management Tools.
Two of the fastest growing BDA technology categories will be Cognitive or AI Software Platforms (36.5 percent CAGR) and Non-relational Analytic Data Stores (30.3 percent CAGR). BDA-related purchases of servers and storage will grow at a CAGR of 7.3 percent, reaching nearly $27 billion in 2022.
Outlook for Regional Market Growth
The U.S. market is the largest by far, delivering nearly $88 billion in BDA revenues this year and more than half of the worldwide total throughout the five-year forecast. Western Europe is the second largest market with 2018 revenues expected to reach $35 billion, followed by the Asia-Pacific region with $23.9 billion.
Japan will be the second largest country for BDA investments in 2018, followed by the United Kingdom, Germany, and China. The countries with the fastest growth in BDA solutions are Argentina (20.8 percent CAGR), Vietnam (19.8 percent CAGR), Philippines (19.5 percent CAGR), and Indonesia (19.4 percent CAGR).
According to the latest worldwide market study by International Data Corporation (IDC), revenues for big data and business analytics (BDA) solutions will reach $260 billion in 2022 with a compound annual growth rate (CAGR) of 11.9 percent over the 2017-2022 forecast period.
BDA revenues are expected to total $166 billion in 2018 -- that's an increase of 11.7 percent over 2017.
Big Data and Analytics Market Development
The industries making the largest investments in big data and business analytics solutions throughout the forecast are banking, discrete manufacturing, process manufacturing, professional services, and federal or central government. Combined, these five industries will account for nearly half ($81 billion) of worldwide BDA revenues this year.
They will also be the industries with the largest BDA opportunity in 2022 when their total investment is forecast to reach $129 billion. The industries that will deliver the fastest BDA revenue growth are retail (13.5 percent CAGR), banking (13.2 percent CAGR), and professional services (12.9 percent CAGR).
"At a high level, organizations are turning to Big Data and analytics solutions to navigate the convergence of their physical and digital worlds," said Jessica Goepfert, program vice president at IDC.
According to the IDC assessment, the transformation takes a different shape depending on the industry. For instance, within the banking and retail sector investments are about managing and reinvigorating the customer experience. Whereas in manufacturing, they're reinventing themselves to become more high-tech.
Furthermore, over half of all BDA revenues will go to IT and business services during the course of the forecast. Services-related revenues will also be among the fastest growing areas of opportunity with a combined CAGR of 13.2 percent.
Software investments will grow to more than $90 billion in 2022, led by purchases of End-User Query, Reporting, and Analysis Tools and Relational Data Warehouse Management Tools.
Two of the fastest growing BDA technology categories will be Cognitive or AI Software Platforms (36.5 percent CAGR) and Non-relational Analytic Data Stores (30.3 percent CAGR). BDA-related purchases of servers and storage will grow at a CAGR of 7.3 percent, reaching nearly $27 billion in 2022.
Outlook for Regional Market Growth
The U.S. market is the largest by far, delivering nearly $88 billion in BDA revenues this year and more than half of the worldwide total throughout the five-year forecast. Western Europe is the second largest market with 2018 revenues expected to reach $35 billion, followed by the Asia-Pacific region with $23.9 billion.
Japan will be the second largest country for BDA investments in 2018, followed by the United Kingdom, Germany, and China. The countries with the fastest growth in BDA solutions are Argentina (20.8 percent CAGR), Vietnam (19.8 percent CAGR), Philippines (19.5 percent CAGR), and Indonesia (19.4 percent CAGR).
Monday, August 27, 2018
Technology, Media and Telecom 2018 M&A Trends
The Technology, Media and Telecommunications (TMT) sector has experienced numerous mergers and acquisitions (M&A) within 2018 thus far. All sub-sectors are already showing signs of upside potential as new pockets of growth fuel the Global Networked Economy.
By the end of the first half (H1) of 2018, global TMT values had reached $371.1 billion and 1,693 deals, representing a 19 percent share of global M&A. The strong results nearly surpassed H1 2015 record high of $383 billion, which represented a market share of 21 percent, according to the latest worldwide market study by Mergermarket.
TMT Deal Sub-Sector Analysis
The total deal value in the overall TMT sector also marked a 107 percent jump, when compared to figures from H1 2017 ($179.4 billion), though the deal count fell by 53 transactions (from 1,746).
Technology sub-sector accounted for the largest share of TMT’s total deal value -- 46.2 percent with $171.5 billion, while the Technology deal count of 1,329 transactions was responsible for 78.5 percent of TMT’s total volume for the period.
Telecommunications accounted for the second-largest share of deal value with $111.2 billion, or 35.1 percent of the TMT total, and 59 transactions, or 3.5 percent of volume. The sub-sector was boosted by the largest deal of the period, Sprint’s $58.9 billion bid for T-Mobile, which accounted for 53 percent of the total value.
Media, the sub-sector that was under the spotlight the most in H1 2018, registered $88.4 billion in total deal value and 305 transactions, or 27.9 percent of TMT’s total value and 18 percent of total volume.
M&A Market Segmentation
Geographically, the U.S. led in market share with $143.9 billion and 646 deals, representing a 39 percent share of global TMT value, with Europe following with $129.8 billion and 569 deals, representing a 35 percent share of total value.
Asia-Pacific, though behind both the U.S. and Europe regions in terms of market share, recorded $86.3 billion and 376 deals, representing a 23.3 percent share of total value, boosted by two mega-deals that took place in India.
Note, all data is based on transactions valued at over $5 million and is sourced from the Mergermarket M&A deals database. Deals with undisclosed deal values are included where the target’s revenue exceeds $10 million. Deals where the stake acquired is less than 30 percent will only be included if the overall value is greater than $100 million.
By the end of the first half (H1) of 2018, global TMT values had reached $371.1 billion and 1,693 deals, representing a 19 percent share of global M&A. The strong results nearly surpassed H1 2015 record high of $383 billion, which represented a market share of 21 percent, according to the latest worldwide market study by Mergermarket.
TMT Deal Sub-Sector Analysis
The total deal value in the overall TMT sector also marked a 107 percent jump, when compared to figures from H1 2017 ($179.4 billion), though the deal count fell by 53 transactions (from 1,746).
Technology sub-sector accounted for the largest share of TMT’s total deal value -- 46.2 percent with $171.5 billion, while the Technology deal count of 1,329 transactions was responsible for 78.5 percent of TMT’s total volume for the period.
Telecommunications accounted for the second-largest share of deal value with $111.2 billion, or 35.1 percent of the TMT total, and 59 transactions, or 3.5 percent of volume. The sub-sector was boosted by the largest deal of the period, Sprint’s $58.9 billion bid for T-Mobile, which accounted for 53 percent of the total value.
Media, the sub-sector that was under the spotlight the most in H1 2018, registered $88.4 billion in total deal value and 305 transactions, or 27.9 percent of TMT’s total value and 18 percent of total volume.
M&A Market Segmentation
Geographically, the U.S. led in market share with $143.9 billion and 646 deals, representing a 39 percent share of global TMT value, with Europe following with $129.8 billion and 569 deals, representing a 35 percent share of total value.
Asia-Pacific, though behind both the U.S. and Europe regions in terms of market share, recorded $86.3 billion and 376 deals, representing a 23.3 percent share of total value, boosted by two mega-deals that took place in India.
Note, all data is based on transactions valued at over $5 million and is sourced from the Mergermarket M&A deals database. Deals with undisclosed deal values are included where the target’s revenue exceeds $10 million. Deals where the stake acquired is less than 30 percent will only be included if the overall value is greater than $100 million.
Friday, August 24, 2018
Cybersecurity and Data Protection Global Market Analysis
Cybercrime is a growing threat to corporations and their customers, who are increasingly using online web services and mobile apps. Several regulatory mandates, including GDPR (General Data Protection Regulation) to PSD2 (Payment Services Directive 2), all require high standards of cybersecurity.
From a compliance perspective, secure IT systems and data storage is now a 'must-have' requirement. In the event of a data breach, there are significant fines for non-compliance with the appropriate data protection guidelines.
Due to ongoing regulation enforcement, some companies are already facing fines for not disclosing data breaches. Furthermore, the lingering damage to their commercial reputation may be difficult to quantify.
Cybersecurity Market Development
According to the latest worldwide market study by Juniper Research, over 33 billion records will be stolen by cybercriminals in 2023 alone -- that's an increase of 175 percent over the 12 billion records expected to be compromised in 2018, resulting in a cumulative global loss of over 146 billion records.
The new research found that regardless of regulations like GDPR and PSD2 mandating strong cybersecurity and authentication measures to protect personal and financial data, average levels of cybersecurity spending will remain relatively static.
Moreover, data protection investments by small businesses in 2018 will only make up 13 percent of the overall cybersecurity market, despite over 95 percent of all companies being classified as small businesses. In addition, the cost of breaches can exceed millions of dollars, dwarfing the revenue and profit of such businesses.
Many of these smaller companies use consumer-grade software protection products, spending on average under $500 per year on cybersecurity. With many such businesses digitizing, this will leave them vulnerable to newer forms of malware which require more advanced cybersecurity, beyond simple endpoint protection.
"Juniper’s strategic analysis of 48 leading cybersecurity companies shows that AI and predictive analytics are now table stakes for this market," said James Moar, analyst at Juniper Research. "These technologies need to be made available to all businesses, regardless of size."
Outlook for New Cyber Crime Disclosure
Additionally, the market study uncovered that the U.S. market will likely become a more prominent target for cybercriminal activity over the next 5 years. Juniper analysts expect over half of all data breaches globally to occur in the U.S. marketplace by 2023.
This is because the country has much national and international consumer and corporate data in a disparate range of institutions and regulations; making it easier to find and exploit systemic weaknesses.
In contrast, the lowest report of new breaches will be within Asia-Pacific, which has little in the way of mandatory reporting requirements, and Japan, where cultural predilections will overrule the disclosure requirements, helped by relatively low regulatory fines.
From a compliance perspective, secure IT systems and data storage is now a 'must-have' requirement. In the event of a data breach, there are significant fines for non-compliance with the appropriate data protection guidelines.
Due to ongoing regulation enforcement, some companies are already facing fines for not disclosing data breaches. Furthermore, the lingering damage to their commercial reputation may be difficult to quantify.
Cybersecurity Market Development
According to the latest worldwide market study by Juniper Research, over 33 billion records will be stolen by cybercriminals in 2023 alone -- that's an increase of 175 percent over the 12 billion records expected to be compromised in 2018, resulting in a cumulative global loss of over 146 billion records.
The new research found that regardless of regulations like GDPR and PSD2 mandating strong cybersecurity and authentication measures to protect personal and financial data, average levels of cybersecurity spending will remain relatively static.
Moreover, data protection investments by small businesses in 2018 will only make up 13 percent of the overall cybersecurity market, despite over 95 percent of all companies being classified as small businesses. In addition, the cost of breaches can exceed millions of dollars, dwarfing the revenue and profit of such businesses.
Many of these smaller companies use consumer-grade software protection products, spending on average under $500 per year on cybersecurity. With many such businesses digitizing, this will leave them vulnerable to newer forms of malware which require more advanced cybersecurity, beyond simple endpoint protection.
"Juniper’s strategic analysis of 48 leading cybersecurity companies shows that AI and predictive analytics are now table stakes for this market," said James Moar, analyst at Juniper Research. "These technologies need to be made available to all businesses, regardless of size."
Outlook for New Cyber Crime Disclosure
Additionally, the market study uncovered that the U.S. market will likely become a more prominent target for cybercriminal activity over the next 5 years. Juniper analysts expect over half of all data breaches globally to occur in the U.S. marketplace by 2023.
This is because the country has much national and international consumer and corporate data in a disparate range of institutions and regulations; making it easier to find and exploit systemic weaknesses.
In contrast, the lowest report of new breaches will be within Asia-Pacific, which has little in the way of mandatory reporting requirements, and Japan, where cultural predilections will overrule the disclosure requirements, helped by relatively low regulatory fines.
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