- Forrester Councils
- Councils Overview
- log in
Posted by Chris Mines on March 14, 2012
In 2009, my research team here at Forrester published a report on what we called "smart computing," a new generation of hardware, software, and networks that connects physical infrastructure with analytic computing systems.
Next month we will publish an update to that research, outlining why we continue to think that smart is the next wave of IT industry growth, likely to outstrip cloud and mobile computing in its eventual impact.
We believe that smart computing -- sensors, M2M networks, and analytics, along with collaboration tools -- will be as transformative of business in the coming decade as the Internet and Web browsers were during the 1990s.
Why is smart still the next big thing? Consider:
While smart computing does not receive nearly the attention devoted to the cloud, we see some evidence in our enterprise surveys that they have plans for significant investments in at least some of the component technologies that comprise smart computing solutions.
Looking at 2012 implementation plans, we see that process management software ranks No. 3 and predictive analytics No. 5, with other smart computing technologies sprinkled further down the list (see chart below). We have done further analysis of these implementation plans by industry, finding that, for example, manufacturing firms are more likely to be investing in M2M technologies, retailers in analytics capabilities, and financial services firms in process management.
The growing adoption of smart computing will be one of the drivers of continued economic out-performance by the tech industry in 2012. By our reckoning, U.S. GDP will grow by about 4 percent this year in nominal terms, while total domestic IT purchases will grow by 7.5 percent. That market growth will be paced by software spending increasing by 11 percent+, accompanied by 8-9 percent growth in spending on consulting and systems integration services.
The connection of physical assets with computing and analytic systems has big implications for corporate sustainability, as we have written about regularly in this space.
This week at GreenBiz's VERGE conference, I am hosting a panel on energy and emissions management featuring sustainability managers from Avaya, Deloitte, and Dow Chemical. We'll be talking about how they are using IT systems to set, monitor, and improve their firms' sustainability profile, both in internal operations and external product and service delivery. If we don't see you there, please engage via the comments section below.
Save Money On Your Next Software Negotiation
Work with our software negotiation experts to save 10–20% on your next contract »
Lead BT Transformation
Develop customer-obsessed strategies to drive growth »
Forrester's CX Index
Predict how actions to improve CX will affect revenue performance.
Measure the customer experiences that matter most »