2014 Server and Data Center Predictions

As the new year looms, thoughts turn once again to our annual reading of the tea leaves, in this case focused on what I see coming in server land. We’ve just published the full report, Predictions for 2014: Servers & Data Centers, but as teaser, here are a few of the major highlights from the report:

1.      Increasing choices in form factor and packaging – I&O pros will have to cope with a proliferation of new form factors, some optimized for dense low-power cloud workloads, some for general purpose legacy IT, and some for horizontal VM clusters (or internal cloud if you prefer). These will continue to appear in an increasing number of variants.

2.      ARM – Make or break time is coming, depending on the success of coming 64-bit ARM CPU/SOC designs with full server feature sets including VM support.

3.      The beat goes on – Major turn of the great wheel coming for server CPUs in early 2014.

4.      Huge potential disruption in flash architecture – Introduction of flash in main memory DIMM slots has the potential to completely disrupt how flash is used in storage tiers, and potentially can break the current storage tiering model, initially physically with the potential to ripple through memory architectures.

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Modest Growth For Japan’s Tech Market In 2014

Japan remains the second-largest tech market worldwide after the US and accounts for a massive 40% of total IT spending in Asia Pacific. Japanese companies devote most of their annual IT budget and staff — 70% to 80% — to maintaining existing back-end infrastructure and applications. But we expect this budget to shift rapidly over the next two to three years as local organizations embrace disruptive technology innovations in their efforts to succeed in the Age of the Customer.

Forrester’s team of Asia Pacific analysts recently published our regional tech market predictions for 2014. Below are my predictions for Japan:

  • Japan’s technology spending will show modest growth of 2% in 2014. Thanks to the positive economic impact of the government’s stimulus package and the depreciation of the yen, enterprise IT spending will likely grow by 3.7% in 2013. However, due to the consumption tax increase planned for April 2014 and the waning effects of the stimulus package, Forrester expects IT spending growth to slow to around 2% in 2014, driven by large application modernization projects in banking, manufacturing, and the public sector.
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Telefonica – Horizontal Play to Consolidate Global Networks through the Southern Hemisphere

Henning Dransfeld and Jennifer Belissent

Telefónica invited us recently to its European Analyst day at the headquarters of Telefonica UK (O2) in Slough. Jose Luis Gamo Global Solutions CEO Multinationals started off the day with an ambitious outlook on strategy and revenue growth. He highlighted Telefónica plans to deepen customer engagements by addressing their needs for global contract consolidation, as well as demands for M2M solutions, big data & s analytics and cloud services. Telefónica certainly has a lot to offer. But is Telefónica doing enough to position itself well in the evolution to markets driven by customer experience? We believe that there is potential because: 

  • Telefónica is increasingly competitive in winning global enterprise network contracts. After the global landmark deal with DHL, Telefónica has added large companies including Ferrovial to its customer base. Telefónica, the largest European operator by capitalization, is increasing contract values with existing customers through cross selling activities. Their ability to do so is enabled by a demonstrable focus on the following initiatives: Strengthening professional account management, increased commitment by Telefónica group to the enterprise market, as well as initiatives to improve service management, the technical architecture, customer services and the terms and conditions.
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For Australian IT Shops, 2014 Is About Customer Obsession

I regularly hear CIOs and IT suppliers discussing the “four pillars” of cloud, social, mobile, and big data as if they’re an end in themselves, creating plenty of buzz around all four. But really, they’re just a means to an end: Cloud, social, mobile, and big data are the tools we use to reach the ultimate goal of providing a great customer experience. Most CIOs in Australia do understand that digital disruption and customer obsession are the factors that are changing their world, and that the only way to succeed is to embrace this change.

We recently published our predictions for CIOs in Asia Pacific in 2014 (see blog post here). Our entire analyst team in region was involved in the process — all submitting their thoughts and feedback. Here are some of our thoughts about Australia in 2014:

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