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Monday, July 15, 2019

The Blockchain Platform Market will Reach $3.1 Trillion

In theory, a blockchain is an open, distributed ledger technology that can record transactions between two parties efficiently, in a verifiable and permanent way. That said, there is still some confusion in the marketplace for blockchain-related products and services that apply this emerging technology.

By 2021, 90 percent of current enterprise blockchain platform implementations will require replacement within 18 months to remain competitive, secure and avoid obsolescence, according to the latest worldwide market study by Gartner.

Blockchain Application Market Development

"Blockchain platforms are emerging platforms and, at this point, nearly indistinguishable in some cases from core blockchain technology," said Adrian Lee, senior research director at Gartner.

According to the Gartner assessment, many CIOs overestimate the capabilities and short-term benefits of blockchain as a technology to help them achieve their business goals, thus creating unrealistic expectations when assessing offerings from blockchain platform vendors and service providers.

Today, the blockchain platform market is composed of fragmented offerings that often overlap or are being used in a complementary fashion, making technology choices confusing for IT and/or business decision makers.

Compounding this challenge is the fact that blockchain platform vendors typically use marketing messaging that does not link to a target buyer’s use cases and business benefits. For example, ‘transactions’ was the term mentioned the most in relation to blockchain, followed by ‘secure’ and ‘security.’

"While these may be functions of blockchain-enabling technology, buyers are still confused as to how these functions are achieved or what benefits blockchain adds compared to their existing processes," said Mr. Lee.

Nonetheless, as enterprise interest in blockchain technology increases, the number of blockchain platform vendors continues to increase with more new market entrants. So, are there already too many eager vendors chasing too few adequately informed customers? What's holding back progress?

"Due to the lack of an industry consensus on product concept, feature set, core application requirements and target market, we do not expect there to be a single dominant blockchain platform within the next five years. Instead, we expect a multiplatform world to emerge," said Mr. Lee.

Outlook for Blockchain Platform Growth

By 2025, the business value added by blockchain applications will grow to slightly more than $176 billion, then surge to exceed $3.1 trillion by 2030, according to a recent forecast by Gartner.

"Product managers should prepare for rapid evolution, early obsolescence, a shifting competitive landscape, future consolidation of offerings and the potential failure of early-stage technologies or functionality in the blockchain platform market," said Mr. Lee.

Similar to the hybrid multi-cloud market, perhaps the distributed ledger adoption trends will result in a hybrid multi-blockchain environment within the foreseeable future. We'll have to wait and see if the blockchain potential for digital transformation develops into yet another complex multiplatform market.

Friday, July 12, 2019

Wi-Fi Device Shipments will Reach 4 Billion by 2024

Unlicensed wireless communication has transformed internet access across the globe. The upward growth trajectory continues to rise for Wi-Fi applications. More than 20 billion Wi-Fi devices are forecast to ship between 2019 and 2024, according to the latest worldwide market study by ABI Research.

Continued adoption in traditional markets of strength, alongside traction in mesh networking systems, smart home, automotive, and IoT applications will drive the Wi-Fi market forward to nearly 4 billion annual device shipments by 2024.

Wi-Fi Device Market Development

"2019 marks the 20th anniversary of Wi-Fi, though the technology shows no signs of slowing down," says Andrew Zignani, principal analyst at ABI Research. "Wi-Fi 6 is quickly gaining momentum in networking devices, while client devices are already arriving into the market and are anticipated to ramp up considerably over the next 12-18 months."

According to the ABI assessment, demand for faster, more reliable, more efficient, and more widespread Wi-Fi coverage is becoming increasingly vital in a world filled with more Wi-Fi devices at both ends of the performance spectrum -- from high resolution streaming and low latency gaming to battery constrained IoT devices.

Wi-Fi’s expansion into the 60GHz and sub-1GHz bands through WiGig and HaLow have been considerably slower, though ABI Research anticipates these technologies will carve out their own success in the coming years.

WiGig still has considerable potential for point-to-point applications such as wireless video streaming, virtual reality, and docking, and has recently seen considerable traction in fixed wireless access applications.

HaLow chipsets and IP are finally coming to the market thanks to efforts from numerous start-up vendors, and the inherent flexibility of the technology could make it very attractive in LPWA type applications.

However, most exciting of all is the anticipated availability of 6GHz wireless communication spectrum over the next few years.

Outlook for Wi-Fi Performance Improvements

"Though there is much work to be done here from a regulatory perspective, the addition of a possible 1.2GHz of additional spectrum for Wi-Fi that will be unencumbered by legacy Wi-Fi technologies could lead to an unprecedented performance and capacity boost for Wi-Fi in the future," says Zignani.

"The Wi-Fi 6 standard is adding support for 6GHz capabilities, and work is already underway for the next generation that will take full advantage of the new spectrum. These enhancements combined will ensure that Wi-Fi will continue to drive value well into its 30th anniversary and beyond," Zignani concludes.

Monday, July 08, 2019

Public Cloud Drives Demand for Cybersecurity Solutions

Ongoing investment in cybersecurity solutions continues to grow. According to the latest worldwide market study by Canalys, cybersecurity solutions for public cloud and 'as a service' accelerated in the first quarter of 2019. Those deployment models collectively grew 46 percent year-on-year.

These type of solutions accounted for 17.6 percent of the total cybersecurity market value -- that's up from 13.8 percent in the same period a year ago. Virtual security appliances and agent solutions also grew significantly, up by 18.2 percent on an annual basis.

Cybersecurity Solutions Market Development

Traditional security hardware and software deployments still dominate, representing almost 75 percent of the total market. Both deployment models continued to grow but at a slower rate of just over 8 percent. This growth highlights the ongoing transition in cybersecurity solutions, as organizations look to protect more data assets and workloads located in the public cloud.

Moreover, IT vendors have introduced new ways of doing business with channels and enterprise customers in terms of purchasing, consumption and servicing -- as well as helping simplify security operations within increasingly complex IT environments.

The worldwide cybersecurity market reached $9.7 billion in terms of shipments in the latest quarter -- that's up 14.2 percent from $8.5 billion in Q1 2018.


According to the Canalys assessment, enterprise IT investment in cybersecurity shows no sign of slowing down. "The security industry will be immune to the increasingly challenging macro-economic and political environment," said Matthew Ball, principal analyst at Canalys.

There's a troubling trend that has raised awareness about the ultimate cost of an inadequate defense to counter online criminal activity. Recent high-profile ransomware attacks have resulted in some organizations paying large sums to regain access to critical IT systems and their related data.

Strengthening security strategies across devices, infrastructure, perimeters and applications will continue to be critical. Increasing employee training and gaining more comprehensive cybersecurity insurance will also be important.

As new cyber threats appear in the online arena, more security software startups will likely emerge, adding to an already crowded market. Product differentiation will be key, but also offering customers a choice of deployment models and simplified licensing will be vital.

Outlook for Cybersecurity Solutions Growth

The challenge for enterprise organizations in both the public and private sectors is to maintain pace with the evolving and diverse range of online security threats. Many think they're too small or not high-profile enough to be targeted, but online hackers will seek to exploit any IT vulnerabilities.

This threat landscape is creating opportunities for IT channel partners to expand their capabilities to provide more holistic cybersecurity offerings to assess, recommend, deploy, integrate and manage multi-vendor solutions and services incorporating several deployment models.

Overall, the channel represented 92.3 percent of the cybersecurity solutions shipment value in the first quarter of 2019.

Friday, July 05, 2019

How AI will Transform Programmatic Digital Advertising

The ongoing commitment to spend more on advertising is primarily driven by legacy marketers. The majority of CMOs in these organizations have difficulty embracing progressive methods of market development, such as digital content marketing. They continue to explore new media but stay within their comfort zone.

As traditional advertisers witnessed the growth in smartphone use, they've shifted their digital ad spend -- such as display and search advertising -- to focus more on mobile devices. Most types of online advertising growth are now due to mobile internet use, which will overtake online desktop use.

Digital Advertising Market Development

According to the latest worldwide market study by Juniper Research, the total spend on digital advertising is forecast to reach $520 billion by 2023 -- that's rising from $294 billion in 2019.

That's a CAGR of 15 percent over the next 5 years; driven by the adoption of AI-based programmatic advertising to deliver highly targeted ads. Note, the overall digital advertising market includes online, mobile browsing, in-app, SMS, DOOH (Digital-Out-of-Home) and OTT (Over-the-Top) TV services.

The new market study found that Amazon's emerging digital advertising business, driven by its vast store of consumer retail data, will enable the company to capture 8 percent of global digital ad spend by 2023. Moreover, Amazon's ad growth is forecast to rise from just 3 percent in 2018.


The Juniper report predicts that Amazon’s advertising revenues will eventually reach $40 billion by 2023 -- that's a growth of 470 percent from its estimated advertising revenues in 2018.

Amazon will leverage its retail data and ongoing investment in machine learning technology to offer efficient targeting via its advertising platforms. That automation will attract users away from the established digital ad duopoly of Google and Facebook.

According to the study, Google’s advertising revenues will exceed $230 billion by 2023. Despite this, Juniper forecasts that the Google global market share of digital advertising spend will fall by 1 percent over the next 4 years due to the growth of competing platforms, including Amazon and Baidu.

Outlook for Digital Advertising Revenue Growth

Juniper analysts anticipate ad platforms will focus on increasing access to contextual advertising traffic data to maximize the efficiency of machine learning for targeting abilities. As a result of these efforts, 75 percent of global online and mobile ads are forecast to be delivered via AI-based programmatic advertising by 2023.

"Giving algorithms access to the vast amounts of data generated by advertising traffic, including purchasing habits, user buckets and geographical location, is critical to enabling advertisers to secure a return on their ad spend," said Sam Barker, senior analyst at Juniper Research.

Tuesday, July 02, 2019

IT Spend on Digital Transformation to Reach $6+ Trillion

Many enterprises are now investing in technologies and services that enable the digital transformation (DX) of their business models, products and services. According to the latest market study by International Data Corporation (IDC), global DX spending will reach $1.18 trillion in 2019 -- that's an increase of 17.9 percent over 2018.

"Worldwide DX technology investments are expected to total more than $6 trillion over the next four years," said Eileen Smith, vice president at IDC. "Strong DX technology investment growth is forecast across all sectors, ranging between 15 and 20 percent, with the financial sector forecast to be the fastest with a compound annual growth rate (CAGR) of 20.4 percent between 2017 and 2022."

Digital Transformation Market Development

The two industries that will invest the most in digital transformation in 2019 are discrete manufacturing ($221.6 billion) and process manufacturing ($124.5 billion). For both industries, the top DX spending priority is smart manufacturing, supported by significant investments in autonomic operations, manufacturing operations, and quality.

Retail will be the next largest industry in 2019, followed closely by transportation and professional services. Each of these industries will be pursuing a different mix of strategic priorities, from omni-channel commerce for the retail industry to digital supply chain optimization in the transportation industry and facility management – transforming workspace in professional services.

An expected CAGR of 21.4 percent will enable the professional services industry to move ahead of transportation in terms of overall DX spending in 2020.

The DX use cases – discretely funded efforts that support a program objective – that will see the largest investment across all industries in 2019 will be autonomic operations ($52 billion), robotic manufacturing ($45 billion), freight management ($41 billion), and root cause ($35 billion).

Other use cases that will see investments in excess of $20 billion in 2019 include self-healing assets and augmented maintenance, intelligent and predictive grid management for electricity, and quality and compliance.

The use cases that will experience the greatest spending growth over the 2018-2022 forecast period are virtualized labs (108.6 percent CAGR), digital visualization (53.5 percent CAGR), and augmented design management (43.9 percent CAGR).

From a technology perspective, hardware and services investments will account for more than 75 percent of all DX spending in 2019. Services spending will be led by IT services ($154 billion) and connectivity services ($102 billion).

Hardware spending will be spread across several categories, including enterprise hardware, personal devices, and cloud computing IaaS infrastructure. DX-related software spending will total $253 billion in 2019.

The fastest growing DX technology categories will be cloud IaaS (35.9 percent CAGR), application development and deployment software (26.7 percent CAGR), and business services (26.5 percent CAGR).

Outlook for Digital Transformation Regional Growth

According to the IDC assessment, the United States and China will be the two largest geographic markets for DX spending, delivering more than half the worldwide total in 2019.

In the U.S., the leading industries will be discrete manufacturing ($63 billion), professional services ($37 billion) and transportation ($34 billion) with DX spending focused on IT services, applications, and enterprise hardware.

In China, the industries spending the most on DX will be discrete manufacturing ($55 billion), process manufacturing ($31 billion), and state/local government ($21 billion). Connectivity services and enterprise hardware will be the largest technology categories in China.

Friday, June 28, 2019

Growth: Why CEOs Crave Digital Transformation Results

Digital transformation fuels upside market opportunities, and related growth goals are now the CEO's top business priority, according to the latest worldwide study by Gartner. Moreover, a growing number of CEOs will focus more on financial priorities -- especially profitability improvement.

The annual survey of CEO and senior business executives in the fourth quarter of 2018 examined their business issues, as well as some areas of technology agenda impact. In total, 473 business leaders of companies with $50 million or more -- and 60 percent with $1 billion or more -- in annual revenue were qualified and surveyed.

Digital Business Market Development 

"After a significant fall last year, mentions of growth increased this year to 53 percent, up from 40 percent in 2018," said Mark Raskino, vice president at Gartner. "This suggests that CEOs have switched their focus back to tactical performance as clouds gather on the horizon."

The survey results showed that a popular solution is to look in other geographic locations for growth. Responses mentioned other cities, states, countries and regions, as well as 'new markets' would also include some geographic reach -- although a new market can also be industry-related, or virtual.

Twenty-three percent of CEOs see significant impacts arising from recent developments in tariffs, quotas and other forms of trade controls. Another 58 percent of CEOs have general concerns about this issue, suggesting that more CEOs anticipate it might impact their businesses in the future.

Another way that CEOs seem to be confronting softening growth prospects and weakening margins is to seek diversification -- which increasingly means the application of 'digital business' to offer new products and revenue-producing channels.

Eighty-two percent of Gartner's survey respondents agreed that they had a management initiative or transformation program underway to make their companies more digital -- that's up from 62 percent in 2018.

Cost management has risen in CEO priorities. When asked about their cost-control methods, 27 percent of respondents cited technology enablement, securing the third spot after measures around people and organization, such as bonuses and expense or budget management.

However, when asked to consider productivity and efficiency actions, CEOs were much more inclined to think of digital business technology as a tool. Forty-seven percent of respondents mentioned technology as one of their top two ways to improve productivity.

According to the Gartner assessment, digital business planning must include the whole executive committee. However, the survey results showed that CEOs are concerned that some of the executive roles do not possess strong or even sufficient digital skills to face the future.

On average, CEOs believe that sales, risk, supply chain and human resource officers are most in need of more digital expertise. And, once all executive leaders are more comfortable with the digital sphere, new capabilities to execute on their business strategies will need to be developed.

Outlook for Digital Transformation Skills Development

When asked which organizational competencies their company needs to develop the most, 18 percent of CEOs named talent management, closely followed by technology enablement and digitalization (17 percent) and data centricity or data management (15 percent).

"Datacentric decision-making is a key culture and capability change in a management system that hopes to thrive in the digital age. Executive leaders must be a role model to encourage and foster data centricity and data literacy in their business units and the organization as a whole," Mr. Raskino concluded.

Monday, June 24, 2019

Digital Wallet Transactions will Reach $9 Trillion in 2024

The benefit of a digital wallet is that, for both online and offline transactions, it enables the wallet user to easily make secure, quick transactions, thereby removing the requirement for a plastic card -- or the need to enter bank account details for every online purchase.

For the 'unbanked' populous across the globe, the availability of a digital wallet and cryptocurrency on a mobile phone will provide a means of financial inclusion, both as an alternative to cash payments and as a way of accessing services such as personal loans and savings accounts.

Digital Wallet Market Development

For the savvy digital wallet provider, the fintech revolution in online payments and person-to-person remittance has enabled several new players to achieve a growing presence across the global financial services and retail ecosystems.

In some cases, this transition enables vendors to provide offline or online payments on their own and via third-party storefronts, together with consumer loyalty programs, bill payments and other financial transactions.

According to the latest worldwide market study by Juniper Research, the number of people using digital wallets will increase from 2.3 billion in 2019 to nearly 4 billion -- that's ~50 percent of the world’s population -- by 2024. This will push digital wallet transaction values up by more than 80 percent to about $9 trillion per year.

New growth is expected to be fueled by online payments for remote purchases. The study found that increases here would be driven by a greater volume of transactions conducted via stored credentials. For example, in the U.S. market, annual spend per digital wallet is expected to increase from around $3,350 this year to more than $6,400 by 2024.


Furthermore, Juniper believes that usage would be boosted by the increased security for online payments afforded by the introduction of Secure Remote Commerce (SRC) standards during the second half of 2019, with transactions protected via tokens and dynamic cryptograms.

Meanwhile, the ongoing challenge posed to NFC-based contactless wallets by the emergence of digital wallets based on QR codes means that growth may be boosted by the implementation of EMVCo standards.

However, Juniper believes that the primary opportunities for QR code wallets outside their Chinese heartland will occur in developing Asia, where there is a scarcity of POS infrastructure and merchants can use smartphones to fulfill QR-based transactions.

Outlook for Digital Wallet Growth Opportunities

The market study findings also enabled the comparative assessments of 14 national and 22 international digital wallet offerings, combining analyses of product range and banking partnerships with customer feedback to gauge their growth prospects.

"The Juniper Innovation Index and Leaderboard enable us to see at a glance precisely where these wallets are positioned relative to one another and how well placed they are to capitalize on the opportunities afforded to them," said Dr Windsor Holden, head of forecasting and consultancy at Juniper Research.

Friday, June 21, 2019

Cloud IaaS Revenue will Reach $150.7 Billion in 2023

Demand for cloud computing Infrastructure-as-a-Service (IaaS) is expected to drive the current $45.6 billion market toward $150.7 billion by 2023 -- that's a compound annual growth rate of 27 percent, according to the latest worldwide market study by Frost & Sullivan.

Enterprises are using cloud services for strategic benefits such as supporting digital transformation efforts rather than for tactical ones, like reducing IT infrastructure costs and the hardware or software maintenance burden.

This market shift has changed the way enterprises choose and manage their IT infrastructure, and led them to deploy applications across multiple infrastructures, from on-premises private cloud to public cloud (multi- and single-tenant), resulting in higher demand for IaaS offerings.

Hybrid Multi-Cloud Market Development

"As the mix of deployment models and best-of-breed cloud IaaS vendors becomes increasingly diverse, single-tenant IaaS will gain revenue share over multi-tenant services," said Maiara Munhoz, senior industry analyst at Frost & Sullivan.

Meanwhile, the emergence of cloud brokerage and cloud management platforms is boosting the trend of hybrid and multi-cloud deployment strategies, making managed cloud services providers key in supporting enterprises and their CIO or CTO requirements.

Frost & Sullivan analysts believe that managed service providers (MSPs) will support their customers with workload assessment and placement, workload migration, and hybrid cloud integration.

The North America region continues to be the most mature cloud IaaS market globally, followed by EMEA, but they are expected to gradually make room for the APAC and LATAM regions.

Some countries in APAC, such as Japan and Australia, are more mature, while India, China, Singapore, South Korea, and Hong Kong are fast-growing markets.

Outlook for Cloud IaaS Applications Growth

Going forward, it will be essential for vendors of cloud computing IaaS to invest in integrated services, on-premises and in the public cloud. For further growth opportunities, vendors should:

  • Offer more advanced services in the cloud -- such as containers and serverless architecture -- and tools for enterprises to manage, analyze, and act on their data.
  • Support hybrid deployment models, as enterprises realize that a single cloud or deployment model will not address all their application requirements.
  • Partner with MSPs to deliver training, programs and features to support them.
  • Invest in educating clients on cloud computing technology, as enterprises still need guidance on how to use cloud services to meet goals for business innovation and digital transformation.

Tuesday, June 18, 2019

Factory Simulation Software Revenue will Reach $4.1B

Simulation software applications have more upside growth potential across the globe. Industrial companies have already applied the software for use cases to build manufacturing systems, deploy new production lines, and evolve factory planning methodologies.

While no single manufacturing technology drives this transformation movement, simulation software now holds the potential to act as a significant catalyst for a new Industry 4.0 platforms.

Simulation Software Market Development

If simulation software can accurately predict the effects of other technologies on the core goals of manufacturers -- i.e. more production, more uptime, improved time to market, improved quality, fewer delays, more efficiencies, greater utilization of assets, all at lower costs -- then companies will deploy more technologies at scale with greater confidence.

The market for factory simulation software products will grow at a compound annual growth rate of 11 percent to reach $4.1 billion for over 172,000 users in 2030, according to the latest worldwide market study by ABI Research.

Vendor revenue includes software that uses computer modeling to analyze how production might work in any given factory or situation, and implement virtual commissioning to test proposed changes and upgrades before they're put into effect.

"Today, many manufacturing enterprises have started to use simulation software, but most have not yet realized the added benefits of using simulation software as part of a larger smart manufacturing platform or to virtually test other new technologies," said Nick Finill, principal analyst at ABI Research.

Cloud-based platforms can help to provide a similar user interface for simulations from the different points of view of process engineers, operations support managers, plant engineers, and control engineers.

Companies can assign user roles so that engineers only see and modify the details and information that they need for their job or level of expertise, and engineers in different locations can work on different parts of the same model.

The new research uncovered that this customization process increases manufacturing data security, speeds up the simulation process, and makes the product easier to use.

Outlook for Automotive Simulation Apps Growth

According to the ABI assessment, the automotive industry represents the largest opportunity globally, with $1.8 billion in factory simulation software revenues forecasted for 2030.

"Automotive manufacturing leads the way for many transformative technologies and therefore has a higher demand to simulate those technologies. It also has an edge on most industries in sheer size and organizational transformation, with more holistic solution deployments due to cross-functional technology transformation teams," concludes Finill.

Friday, June 14, 2019

Digital Money Transfer will Reach $525 Billion by 2024

The World Bank estimates that remittance flows to low- and middle-income countries reached $529 billion in 2018, an increase of 9.6 percent over the previous record high of $483 billion in 2017. All global remittances -- including money transfer flows to high-income countries -- reached $689 billion in 2018.

Mobile and online (digital) money transfer offerings will continue to transform the market. New technologies, such as blockchain, will further accelerate the trend.

Money Transfer Market Development

According to the latest worldwide market study by Juniper Research, international digital remittances will reach $525 billion by 2024 -- that's up from an estimated $332 in 2019.

The mobile channel will become increasingly popular; accounting for 41 percent of international digital money transfers by volume in 2024 -- that's up from 33 percent in 2019.

Meanwhile, blockchain-based payments have the potential to increase digital payments further, as the technology has a high possibility of disrupting existing business models.

Juniper recommends that traditional money transfer operators aggressively pursue partnerships to effectively leverage blockchain technologies for future transformation.


According to the Juniper assessment, by utilizing a blockchain-powered network, operators can offer their customers a much faster, cheaper and more transparent service.

Solutions such as RippleNet and IBM Blockchain World Wire are set to transform the sector, by connecting diverse sets of partners in different markets to enable more effective payments.

This is an opportunity for traditional money transfer operators to change the way they operate -- reorienting their business models around the inherent benefits that blockchain enables.

The rise of fintech players -- such as TransferWise and WorldRemit -- has meant that traditional money transfer operators have had to evolve rapidly, with Western Union and MoneyGram both focusing on digital strategies going forward.

Outlook for Digital Money Transfer Apps

However, mere digitization of strategies is not sufficient. Juniper found that fintech players offer a superior user experience, with heightened transparency on fees a crucial differentiator.

"While traditional operators have launched digital solutions, they have yet to adopt transparent pricing of transfers. Unless operators accept this requirement, they will continue to lose market share. Innovation must be the number one priority," said Nick Maynard, senior analyst at Juniper Research.