Asia Pacific Tech Market To Grow By 4% In 2013

Fred Giron

The Asia Pacific (AP) growth engine did not fire on all cylinders in 2012, leading Forrester to revise its IT purchases growth forecasts for the year. While Australia, South Korea, and several ASEAN tech markets are showing continued solid growth, in other markets like China, India, Japan, Malaysia, and Vietnam, political leaders are struggling in the face of growing economic problems. My colleague Andy Bartels and I, with the help of Forrester’s AP analyst team, have recently published our revised IT purchase growth forecasts for 2013. Here are our key expectations by country:

  • 2012’s slowdown in China will be short-lived. Despite a slowdown in 2012, China continues to attract intense vendor interest because of its size and potential for further growth. The expected government stimulus efforts in the country will offset factors such as weak demand from businesses and governments. The slowdown in 2012 (+9%) is therefore likely to be short-lived, with stronger growth resuming in 2013 (+10%).
  • India’s IT growth will remain slower than expected through 2014. 2012 (+7%) was a relatively lackluster year for the tech market in India. Worse than expected economic growth, combined with political gridlock on economic reforms, kept the tech market from reaching its full potential in 2012. While we expect the public sector to drive India’s IT spending growth, the impact will be limited through 2014 due to the parliamentary elections scheduled for that year.
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What's Your APAC Enterprise Software Strategy — SAP Or SaaP?

A number of Forrester analysts from the Asia Pacific region attended the recent SAP analyst event in Singapore. Meetings with SAP global and regional executives and a large number of detailed breakout sessions over the 1½-day event all clearly indicate that SAP is continuing to try and reposition itself as a true generalized application platform player.

At the core of (almost all) initiatives is the HANA in-memory database technology. Whatever the problem, HANA will solve it (said with tongue planted very firmly in cheek). While the technology clearly has immediate performance benefits, particularly for existing SAP clients, net-new customers will likely need to compare the value of SAP’s offerings with others much more seriously.

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IT Industry Disruptions Will Fuel Renewed Asia Pacific Market Growth In 2013

Michael Barnes

The Forrester team of Asia Pacific (AP) analysts has just published its 2013 IT industry predictions. Below is a sneak peek at some key regional trends I wanted to highlight.

2013 will be a transformative year for IT adoption in AP, as multiple IT trends converge to drive industry disruptions and help spur renewed growth in IT spending. Forrester expects IT spending in AP to rebound in 2013, with regionwide growth of 4% — rising to 8% when the large but slow-growing Japan market is excluded. While India IT spending growth will remain sluggish, the 2012 economic slowdown in China will be short-lived as government stimulus policies take effect in 2013. The Australia, New Zealand, and ASEAN markets will all remain resilient, with Vietnam, Indonesia, and the Philippines leading the way in IT spending growth.

Below are some other key predictions shaping the Asia Pacific IT industry in 2013:

  • End user computing strategies will be limited to mobile device management (MDM). AP organizations are feeling the pressure to deliver applications and services across multiple devices, including traditional desktops/laptops, smartphones, and tablets. But lack of skills will hinder bring-your-own-technology (BYOT) policies, which will remain limited to MDM, including basic device control and security/identity management.
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IBM STG Is Upbeat On PureSystems And Growth Markets

Manish Bahl

 

Last month, I attended an IBM Systems and Technology Group (STG) Executive Summit in the US, where IBM outlined its key strategies for accelerating sales in growth markets, including:

·         Aggressively marketing PureSystems. IBM is positioning PureSystems (a pre-integrated, converged system of servers, storage, and networking technology with automated self-management and built-in SmartCloud technology) as an integrated and simplified data center offering to help organizations reduce the money and time they spend on the management and administration of servers. 

·         Continuing to expand in “tier two” cities. Over the next 12 months, IBM plans to continue its expansion outside of major metropolitan areas by opening small branches in nearly 100 locations in growth markets, most notably India, China, Brazil, and Russia.

·         Expanding channel capabilities and accelerating new routes to market. IBMplans to certify 2,800 global resellers on PureSystems in 2013 and upgrade the solution and technical expertise of 500 of its partners. Also, the company plans to drive the revenue of managed service providers (MSPs) by working with them closely to develop cloud-based services and solutions on PureSystems.

Considering the vast potential demand from growth markets and slowdown in developed markets, IBM is among the growing camp of multinational vendors aggressively targeting them as an engine for future business. Some of my key observations on IBMs event and recent announcements:

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SingTel Makes Good Progress, But Questions Over IT Services Capabilities Remain

Fred Giron

Clement Teo, Dane Anderson, Frederic Giron

At an analyst briefing in Singapore on November 7, newly minted SingTel Group Enterprise CEO, Bill Chang, laid out his vision on how the group’s reorganization aims to build the foundation for SingTel to become the largest ICT services provider in Asia Pacific in an ambitious five years.

For Sourcing and Vendor Management professionals, here’s a quick summary:

  • SingTel Group Enterprise: SingTel Business Group, NCS, Enterprise Data and Managed Services (EDMS) and Optus Business (including Alphawest) are now one entity as of 1 Nov 2012.
  • Converged capabilities: This organizational transformation converges SingTel’s Telco and IT service competencies for a one-stop ICT experience, and simplifies delivery capabilities to enable large scale global deployments. In a nutshell:  SingTel is aiming to create a repeatable and more scalable product set.
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SingTel Makes Good Progress, But Questions Over IT Services Capabilities Remain

Clement Teo

At an analyst briefing in Singapore on November 7, newly minted SingTel Group Enterprise CEO, Bill Chang, laid out his vision on how the group’s reorganization aims to build the foundation for SingTel to become the largest ICT services provider in Asia Pacific in an ambitious five years.

For Sourcing and Vendor Management professionals, here’s a quick summary:

  • SingTel Group Enterprise: SingTel Business Group, NCS, Enterprise Data and Managed Services (EDMS) and Optus Business (including Alphawest) are now one entity as of 1 Nov 2012.
  • Converged capabilities: This organizational transformation converges SingTel’s Telco and IT service competencies for a one-stop ICT experience and simplifies delivery capabilities to enable large-scale global deployments. In a nutshell: SingTel is aiming to create a repeatable and more scalable product set.
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BI Adoption In Asia Pacific: Four Factors To Consider

Michael Barnes

As John Brand and I recently wrote, business intelligence (BI) adoption drivers, technology understanding, and organizational process maturity continue to vary widely across Asia Pacific (AP). But there is one constant in this market: the regularity with which BI appears at or near the top of CIOs’ priority lists.

While the gap between global best practices and regional implementations is closing, social, cultural, economic, and underlying technology trends will continue to affect BI adoption in the region for the foreseeable future:

  • Social. The adoption of social computing is expanding rapidly across all AP markets, but is particularly strong in growth markets like China, Indonesia, and the Philippines. As in North America and Western Europe, this adoption is already having profound effects on how organizations identify, understand, and engage with customers and other market influencers. But the lack of significant BI investments means that organizations in these growth markets are far more likely to consider issues like sentiment analysis, predictive analytics, and near real-time data access when sourcing initial BI projects.
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4G Data Exchange: Another Option Arises For Mobile Operators

Clement Teo

At a briefing last week, I spoke with Tejaswini Tilak, global head of carrier services at Telstra, who updated me on its newly launched mobile operator IPX (IP Exchange) platform. Marketed as the Telstra Global IPX Service, this service aims to enhance international roaming and next-generation mobility services for operators seeking to exchange long-term evolution (LTE) data traffic. The service promises:

  • An optimized network. Using a single channel, the Telstra Global IPX Service allows mobile operators to optimize their networks to accommodate growing mobile data consumption while providing end users with a consistent customer experience.
  • Greater efficiency. This is possible as it runs over a private network — Telstra Global’s own managed IP MPLS core network — which can maximize traffic on both legacy and new mobile platforms. 
  • Diameter signaling support. Telstra provides support for diameter signaling, a relatively new protocol that works with core IMS on IP data traffic. Tilak claims that Telstra will be able to set up multiple roaming agreements by acting as a diameter signaling hub and providing interoperability and mediation between different diameter deployments among mobile operators.
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IT Services Markets In Asia: Preparing For New Growth Opportunities

Fred Giron

Last Friday, we hosted our first roundtable in Singapore focusing on the IT services industry in Asia. The goal of these quarterly events is to create a community of services leaders who can network and exchange ideas on the growth opportunities and challenges in the region.

Senior leaders from 14 large services vendors gathered this morning to discuss how a perfect storm of technologies (including cloud, social, big data, and mobility) is transforming the way clients engage with service providers in Asia. Forrester analysts John McCarthy, Frederic Giron, and Dane Anderson brainstormed with business leaders from services vendors including Atos, BT, HCL, HP, and IBM around the four factors that are reshaping the IT services industry (see Figure 1):

  • The restructuring of the Asian economy. The economic uncertainty has now spread to emerging markets, and economic growth is expected to slow down significantly in India and China this year. Forrester has revised its IT services spending forecasts downward by two to four percentage points in these countries for 2012 and 2013. Participants corroborated this downgrade and mentioned they were seeing the process of making decisions on large transformation projects getting longer, especially in the manufacturing industry.
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Asia Pacific CIOs Learn Similar Lessons on the Path to Business Technology

Dane Anderson

 

Forrester’s Asia Pacific team is working at a fast and furious pace preparing for our CIO Summits in Singapore, Sydney and New Delhi throughout September.  As the content champion for the event, I have been working with about a dozen regional CIO speakers to prepare presentations on their journeys from IT to Business Technology, which is the focus of our summits.

Our distinguished line-up of CIO speakers provides an insightful cross-section of the countries, cultures and industries they span.  As they all embark on their respective BT journeys, it has become clear that they must each chart their own course and sequence activities in a way that makes sense for their unique circumstances.  Nevertheless, across these varied landscapes I have identified three key themes that are critical to the BT journeys regional CIOs will be forced to make:

  • Taking Care of the Basics: Although innovation and the power of BT are alluring, the BT journey starts with some basic plumbing.  All of our CIO speakers have emphasized that their BT journeys wouldn’t have taken the first step without first ensuring they were doing the basic things well.  They cannot convince the CEO that they deserve a seat at the table of business strategy without showing they know how to handle the basics first. In our Singapore Summit, Krishnan Narayanan, Managing Director and Head of IT at UBS will share his experience and provide recommendations for setting a solid foundation to enable the BT transition.
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