The hyperscale global clouds seem to crop up pretty much everywhere, these days. But we all know that customer requirements differ, from industry to industry, and from country to country. So... how do they cope, and how do we account for the peculiarities of different markets?
The report (my first Wave, so allow me to feel pleased with myself) is, of course, interesting and useful in and of itself. But what's more interesting, perhaps, is that it's part of a collaboration that allows Forrester to account for those regional quirks.
Charles Dickens once wrote that: “Change begets change. Nothing propagates so fast.” In today’s evolving marketplace, where innovators are setting new customer expectations and companies are racing to meet rising demands, Dickens’ words ring true. The first step on a company’s path to thriving in this environment is understanding customers accurately – specifically, identifying how consumer expectations are changing and how fast.
Our Empowered Customer Segmentation measures critical shifts in customer behaviors and attitudes to gauge how consumers are both responding to innovation and demanding it. While the segments are globally consistent, we see insightful differences when applying the framework to unique markets. For example, Forrester’s Consumer Technographics® data shows how the segments differ between Spain and France:
These country differences reveal unique opportunities and challenges for companies aiming to win or retain customers in Europe. For example, forward-looking brands such as Banco Sabadell and BBVA can engage Progressive Pioneers in Spain to test innovative concepts before planning a broader rollout. On the other hand, brands with large proportions of French Settled Survivors or Reserved Resisters can retain customers by convincing them of the effectiveness of an experience.
As soon as the news of the Brexit vote in the UK came out, the Forrester team began revising our UK and European tech market forecast to take into account the economic implications and uncertainties of the voters’decision that the UK should leave the EU. Based on this revised analysis, we predict the UK tech market will grow by just 1% (pounds sterling) in 2016 with zero growth in 2017, compared with our prior forecast of 5% in both years.
Europe as a whole, will post no growth in 2016 (euros), and just 1% growth in 2017 — two percentage points slower than our earlier forecast. With the plummeting pound and enervated euro, European tech market measured in US dollars will be similarly weak with 0.2% growth in 2016 and 1.1% in 2017.
The slowing of UK and European tech market growth results from multiple uncertainties created by the Brexit vote coming on top of what was already a weak and shaky European economy. As a result:
The UK economy, which had been outperforming most of the Eurozone countries, will take a hit. The Belgian, Dutch, French, German, Italian, and Swiss economies, which are growing by 1-1/2% or less, are vulnerable to declines, with Italy especially exposed due to a looming banking crisis.
Greece and Portugal are struggling once again, with threats of renewed recessions leading to declines in tech spending.
The only countries with decent economic growth and above average tech market growth are Ireland and Spain in the Eurozone, and Sweden, Poland, and other Central European countries outside it.
Two weeks on, the result of the UK referendum on membership of the European Union (EU) continues to reverberate around the world. Forrester provided advice for clients needing to understand the business implications. Looking at the specific impact on public cloud deployments in Europe introduces a number of additional points. These are best considered in three separate contexts:
that of companies wishing to serve customers in the UK
that of companies wishing to serve customers in the remaining 27 EU member states (the EU27)
that of companies wishing to serve customers in the EU27 from a base in the UK.
Forrester’s Digital Transformation Europe 2016 Forum in London starts today, and our first industry speaker will be Blake Cahill, Head of Digital, at Royal Philips. Over the past 20 years, Blake has led a series of marketing, creative, client management, product innovation, and thought leadership projects for both Fortune 500 organizations and digital start-ups. At Philips, Blake is helping to lead the Dutch company’s international rebranding and expansion into new technologies and markets. In his presentation, he will talk about the role of digital marketing in the transformation of Philips into a global digital business, and in entering the Chinese market, providing key best practices and lessons learnt.
As I prepared for my role as Forum co-chair, together with Benjamin Ensor, I spoke to Blake about his views on the age of the customer and the impact of digital on companies like Royal Philips. Here is what Blake shared with me, and I hope you will enjoy his answers as much as I did. If you would like to attend Blake's presentation in person, there is still time to register!
Q. How is digital transforming Philips' business and, as a digital marketer, how are you collaborating with and/or advising your peers in other parts of the business on the transformation?
This week, Forrester’s European Digital Transformation Europe Forum 2016 kicks off in London at the Lancaster on June 8-9. Myself and Forum co-host Benjamin Ensor are very excited about the program that we have been able to put together across the two days. Our list of industry speakers is impressive, and includes Blake Cahill, Global Head of Digital and Social Marketing, at Philips, Toby Wright, Chief Technology Officer, at Telegraph Media Group, Nina Jones, Global Owner Experience Director, at Jaguar Landrover, and Dr. Horst J. Kayser, Chief Strategy Officer, at Siemens AG.
On day one, we will also be hearing from Fergus Boyd, Vice President, Digital and IT at Yotel. Fergus is responsible for this start-up affordable luxury hotel brand’s digital strategy and services (web, mobile, social), IT innovation, and all back-end and guest-facing technology. He is a serial digital entrepreneur and technology transformation agent and led award-winning IT, eCommerce, and innovation initiatives at Virgin Atlantic and British Airways (BA).
In the run-up to the Forum, we asked Fergus to answer a number of questions on how Yotel uses digital to differentiate itself in the hospitality and accommodation market. His answers are a must-read for other tech management and digital business leaders facing similar challenges. I look forward to hearing Fergus’ presentation, “From Raw Fish To Moving Beds,” this Wednesday. Come and join us by registering today!
Q. How does Yotel use digital (web, mobile, social) to differentiate itself as a startup hotel brand?
When we think about the public cloud, the list of credible providers can sometimes seem rather short.
(The Great Wall of China. Source: Paul Miller)
In North America, Europe, and elsewhere, the same few names tend to dominate. But not in China. There, big local brands continue to command impressive market share. And now they're looking to expand into new territories, including Europe.
Huawei hardware and Huawei's distribution of the OpenStack open source cloud platform power T-Systems' Open Telekom Cloud. This was launched, with some fanfare, at CeBIT in Hannover.
Alibaba Cloud, which leads the Chinese public cloud market, is also coming to Europe this year.
In my latest report, I take a look at what both Alibaba and Huawei bring to Europe's public cloud market, and ask whether they can repeat their domestic success in this market.
TL;DR - it would be unwise to discount either of them.
Finovate came to London again this week and I was lucky enough to attend. Here are my thoughts from the two days:
This year’s big theme was robo-advice. Every Finovate seems to have an unofficial, accidental theme with a large group of start-ups clustered around the same disruption, like PFM, mobile payments, small business banking or digital wallets. This year it was robo-advice.
Robo advice is starting to look crowded. Each of the new digital investment managers has a distinct story. Scalable Capital offers a sophisticated quantitative, value-at-risk strategy. MeetInvest helps investors mimic the strategies of famous investors like Benjamin Graham or Peter Lynch.* Investify lets investors choose themes that feel right. DriveWealth offers fractional share investing to allow low-cost access to the US markets. SwipeStox makes it easy to follow other investors through an app. Capitali.se converts ideas into trading rules. Europe has many countries and investors are diverse. Even so, the market is starting to seem crowded. Clearly the cost of managing investment portfolios is falling, which should enable firms to break even with fewer assets under management, but the costs of regulatory compliance and marketing to achieve growth have not diminished. Investment performance will sort the unicorns from the donkeys.
Combined, online display and social media advertising spend will double between 2015 and 2020, growing from €14.4 billion to €28.7 billion.
Among the factors driving growth, the combination of mobile and premium video advertising will drive an upsurge in demand for both online display and social advertising. Advertisers will increase their investments in video and mobile ads as media consumption evolves and targeting accuracy improves.
Native mobile video advertising is already proving a winning formula in the social media sphere, and publishers will take notice as they further refine their video ad offerings to provide more premium inventory, preventing a decline of video ad CPMs as supply increases. In fact, mobile ad spend will overtake PC as PC flatlines in the next five years.
Other developments will continue to disrupt online ad revenue in the next five years:
Programmatic will become the default mechanism for trading online display
Ad blocking will force new behaviors on the publisher side, and a greater struggle to hit the sweet spot between monetization and consumer experience.
Growing rivalries between Apple, Facebook, and Google for news aggregation services will further dis-intermediate publisher mobile advertising revenue.
The big public cloud providers, most of which are still from the United States, sometimes have a hard time finding ways to balance their legal obligations at home with the quite different sensitivities they encounter amongst their new international customers. For a long time, the toolkit has been pretty consistent: site data centres as close to the customer as possible, vehemently support political efforts to harmonize laws, and ocassionally be seen to stand up to the worst execesses of Government over-reach.
(Source: Flickr user Luigi Rosa. Image licensed under Creative Commons Attribution License)
Microsoft's announcements in Germany today appear, on the surface, to follow that model pretty closely. But there's a twist that's potentially very important as we move forward.
First, the standard bit. Microsoft, yesterday, announced new data centres will be operational in the UK next year, joining existing European facilities in Dublin and Amsterdam. Big competitor Amazon did much the same last week, announcing that a new UK data centre will be online in the UK by "2016 or 2017." Given the vague timescales, it might be easy to assume that Amazon was trying to steal a little of Microsoft's thunder with a half-baked pre-announcement. And then, today, Microsoft announced two new data centres in Germany. Amazon already has a facility there, of course.