Gartner Predicts More Cloud and Loss of IT Control in 2012Added 3rd Dec 2011
IT budgets and responsibilities are moving out of the control of IT departments and into the hands of others, thanks to trends such as consumerization and cloud computing, Gartner says in its vision for 2012 and the coming years.
That means, to be successful, IT organizations will have to excel at relationship management and be adept at coordinating more widely distributed activities, according to Daryl Plummer, managing vice president and Gartner fellow.
"As users take more control of the devices they will use, business managers are taking more control of the budgets IT organizations have watched shift over the last few years," Plummer said in a statement. "The IT organization of the future must coordinate those who have the money, those who deliver the services, those who secure the data, and those consumers who demand to set their own pace for use of IT."
IT departments need to adapt now or be swept aside, Plummer warned.
With that in mind, here are Gartner's top 11 predictions for 2012:
1. Low-cost cloud services will cannibalize up to 15 percent of top outsourcing players' revenue by 2015.
Just as low-cost airlines disrupted the transportation industry, the projected $1 trillion IT services market is facing further disruption from industrialized low-cost IT services (ILCS), which Gartner describes as "an emerging market force that will alter the common perceptions of pricing and value of IT services." Vendors will need to invest in and adopt a new cloud-based, industrialized services strategy, the research firm says.
2. The investment bubble will burst for consumer social networks in 2013, and for enterprise social software companies in 2014.
In the consumer social network space, there's a large crop of vendors with overlapping features competing for a finite audience. In the enterprise market, small vendors are struggling to grow, consolidation is imminent, and big players such as Microsoft, IBM, Oracle, Google and VMware are muscling in on the action, Gartner says. "While substantial excitement will be raised by private firms going public, valuations of smaller independent vendors will diminish as recognition sets in that the opportunities for market differentiation and fast growth has eroded."
3. At least 50 percent of enterprise email users will rely primarily on a browser, tablet or mobile client instead of a desktop client by 2016.
As the options for email clients continue to grow, the need for mobile device management platforms will soar and suppliers will be pressured to support more collaboration services, including instant messaging, Web conferencing, social networking and shared workspaces, Gartner predicts.
4. Mobile application development projects targeting smartphones and tablets will outnumber native PC projects by a ratio of 4-to-1 by 2015.
"Smartphones and tablets represent more than 90 percent of the new net growth in device adoption for the coming four years, and increasing application platform capability across all classes of mobile phones is spurring a new frontier of innovation, particularly where mobile capabilities can be integrated with location, presence and social information to enhance the usefulness," Gartner says.
5. 40 percent of enterprises will make proof of independent security testing a precondition for using any type of cloud service by 2016.
Third-party testers won't be the only way for enterprises to evaluate cloud services for their security capabilities. Inspectors' certifications will become a viable alternative or complement to third-party testing, Gartner says. "This means that instead of requesting that a third-party security vendor conduct testing on the enterprise's behalf, the enterprise will be satisfied by a cloud provider's certificate stating that a reputable third-party security vendor has already tested its applications."
6. More than 50 percent of Global 1000 companies will have stored customer-sensitive data in the public cloud by year-end 2016.
Under pressure to reduce costs and operate more efficiently, more than 20% of organizations are already selectively storing customer-sensitive data in a hybrid cloud environment, Gartner says.
7. 35 percent of enterprise IT expenditures for most organizations will be managed outside the IT department's budget by 2015.
Business managers and individual employees are demanding more control over the IT expenditures related to their jobs. "CIOs will see some of their current budget simply reallocated to other areas of the business. In other cases, IT projects will be redefined as business projects with line-of-business managers in control," Gartner predicts.
8. 20 percent of Asia-sourced finished goods and assemblies consumed in the U.S. will shift to the Americas by 2015.
Many companies that serve the U.S. market will shift their sources of supply from Asia to the Americas, including Latin America, Canada and the U.S., thanks to political, environmental, economic and supply chain risks, Gartner says. "Except in cases where there is a unique manufacturing process or product intellectual property, most products are candidates to be relocated."
9. The financial impact of cybercrime will grow 10 percent per year through 2016, due to the continuing discovery of new vulnerabilities.
Growth in consumerization and cloud computing will lead to the introduction of new software vulnerabilities and attack methods by financially motivated hackers, Gartner warns. "The combination of new vulnerabilities and more targeted attacks will lead to continued growth in bottom-line financial impact because of successful cyber attacks."
10. The prices for 80 percent of cloud services will include a global energy surcharge by 2015.
Some cloud data center operators already include an energy surcharge in their pricing package, and Gartner expects to see more providers follow suit. Business and IT leaders should be prepared to see it included in future cloud service contracts.
11. More than 85 percent of Fortune 500 organizations will fail to effectively exploit big data for competitive advantage through 2015.
Most organizations are in no shape to handle the technical and management challenges posed by big data, Gartner says. "Collecting and analyzing the data is not enough -- it must be presented in a timely fashion so that decisions are made as a direct consequence that have a material impact on the productivity, profitability or efficiency of the organization." As a result, most won't be able to exploit available data for competitive advantage.
For more details, check out Gartner's report, "Gartner's Top Predictions for IT Organizations and Users, 2012 and Beyond: Control Slips Away."
Apple has delayed the production of its larger-screen iPads, as it works out the final design and features for the product targeted at businesses.
Chief executive Peter Sands looks to technology to support cost cutting plans
Soon-to-retire Cabinet Office minister Francis Maude has warned legacy IT poses one of the greatest risks to efforts to modernise government digital and technology services.
China seeks to help the country's Internet firms gain a bigger foothold in the international market, and is preparing to pour more state funds into its emerging tech sector, according to one of its top leaders.
E-books must be subject to the full rate of value-added tax (VAT), and European Union countries may not extend tax exemptions for books to include e-books, the EU's highest court ruled Thursday, adding that it considers downloadable e-books to be services.
Only a few more days until Tim Cook will stride onto the stage at the Yerba Buena Center for the Arts and show off his Apple Watch. You know, again. We got the broad strokes in September, but the watches shown to the press weren't running final software, so Apple still has more painting to do to give us the whole picture.
While users wait with bated breath to see if Google Inbox ends up becoming the new Gmail, Google has unveiled an incremental change to Gmail: a newly redesigned contacts page. It hasn't yet been rolled into Gmail proper, but is now available in preview form.
The Culture Amp platform provides HR teams with surveys that they can distribute to their employees.
Intel graphics integrated inside the company's computer processors power the vast majority of all PCs, and now Intel has brought its most powerful version--Iris Pro--to both the desktop and to a new NUC.
A security system undergoing testing by a San-Francisco-based company aims to speed up the detection of websites and domains used for cybercrime.
Telstra has moved one of Asia's largest retailers, Dairy Farm Group, to a private Cloud solution in a multi-million dollar deal.
Aruba Networks has unveiled a new all-in-one Cloud controller which consolidates branch IT functions into a single solutions.
Peel is about to truly become the "smart universal remote" app that it has always claimed to be. The company, fresh off a $50 million investment from Chinese internet giant Alibaba, has announced that it plans to add connected-home commands to its TV remote app, which it claims handles over 7 billion infrared (IR) remote commands each month from upwards of 100 million smartphone and tablet users.
Health and employment services should intervene earlier to help people with mental illness find and stay in work, according to a new OECD report.
First there was the Asus Taichi: a laptop featuring screens on both sides of lid, and one of the more interesting 2-in1 designs we've seen. Now there is simply the Chi: a 2-in-1 laptop featuring one screen, but a removable one so that you can use it as a tablet or as a laptop whenever you please. It's a more conventional product, and one that makes use of Intel's Core M processor in order to cut down on thickness, weight, and noise.
Adobe Systems launched a new program that encourages security researchers to find and report vulnerabilities in the company's websites and other online services.
Symantec has released the latest update to its Security Response: State of Financial Trojans 2014 whitepaper.
The Challenge Up! IoT accelerator is aimed at startups in the Emea region, and promises to allow startups to go to market faster with their innovations through joint projects, mentoring, networking and using the suppliers' corporate assets.
Tinder is currently processing 1.7 billion swipes a day on its match-making platform but that could change with the newly introduced caps that now apply to everyone except Tinder Plus users.
The number of tech enterprises grew by 8 percent in 2014, double the rate for industry overall, according to tech industry body the Tech Partnership.