Where in the world?

Jennifer Belissent, Ph.D.

Calling all tech industry marketing and strategy professionals!  We need some help with our current research on market opportunity assessement. 

"Where in the world are you?  And, how'd you get there?"

Strategists in the tech industry face a continuous stream of critical decisions in today’s complex global market. One of those is “where in the world?”  One the one hand, globalization expands the options available, making it “easier” to enter new markets.  However, those decisions aren’t always themselves easy.  To better understand how strategists are undertaking the tasks of identifying, evaluating and prioritizing technology market opportunities in new geographies, we have launched a short survey.  The survey questions include background on market presence and intended entry, data sources and factors that influence these decisions, stakeholders' involvement, and the process itself. This is where we need your help. If you are part of a team or team leader for strategic planning in global markets, we’re interested in your input.  The data gathered will be used for an upcoming report – Where in the World? Tech vendor strategists weigh opportunities (and risks) of expansion (working title). The report will also use public data and research interviews (where we'd also like your help).

Click here to take the survey

The survey should take no more than 15 minutes and participants who complete the survey will receive a complimentary copy of the completed report. Terms and conditions (the fine print): As always, we keep your individual responses confidential. 

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IBM's Q1 2010 Results In Align With Our Expectations -- A Bellwether for Other Vendor Results To Come

Andrew Bartels

TECH DEVELOPMENTS: Like half a dozen Forrester colleagues, I have been stuck in London since last week due to the Icelandic volcano's disruption of air travel.  So, this allows me a UK perspective on IBM's results for Q1 2010.   These turned out to be very much what I expected (see "US And Global IT Market Outlook: Q1 2010 -- The Tech Market Recovery Has Begun").  I thought IBM's revenues would grow by mid-single digits; in fact, they grew by 5%.  I expected its software revenue growth to be in low double-digits; its hardware revenues to be around 3%-5%; its outsourcing revenues up about the same; and its consulting and SI revenues down by 5% to 10%.  Again, actual results came in pretty close: software revenues were up 10.6%; systems and technology revenues up 4.9%; outsourcing (GTS outsourcing) up 6%; and IT consulting and systems integration services (Integrated Technology Services and Global Businesses Services) flat with the year before. 

Based on the results we have seen so far from IBM, Oracle (quarter ending February 28), Accenture (quarter ending February 28), and Atos Origin, here's what I think we will see for vendors for the rest of the quarter:

  • Software will be strong, up 10% or more growth in US dollar revenues for most vendors.  Microsoft will do better than this, thanks to strong sales from Windows 7.
  • Hardware will also be strong, with PC vendors posting 15% growth and server/storage vendors coming in around 5% to 8%. 
  • IT consulting and systems integrations servies will still be down, lagging the upturn in software investment.
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Building B2B Markets: One Entrepreneur at a Time

Jennifer Belissent, Ph.D.

Last December I wrote about Building B2B Technology Markets, looking at how to penetrate a market with almost none of the traditional characteristics of a mature technology market? As technology vendors increasingly look to emerging markets as a significant opportunity and source of growth, this question becomes more pressing.  The report explored some of the elements of Cisco’s Country Transformation initiatives in order to identify steps in the process of building market infrastructure:

For example, the report looked at partnering with governments to encourage market-friendly policies and investment in the necessary technology infrastructure to support market development and overall economic growth.  And, from a sales perspective, trade associations provided an alternative channel to reach small and medium businesses in markets where distributors and resellers weren't available.  

But, another element critical to successful market development is the ecosystem of partners developing solutions specific to the particular market, or even just contributing local innovation for new approaches to broader global issues.   Building B2B Technology Markets discussed finding local organizations to act as partners in the market, and even investing in educational initiatives, but missed the next step of how to help create these new local ecosystem partners. 

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Upside-down is right-side up for Telefónica: Latin America shows growth and opportunity

Jennifer Belissent, Ph.D.

The word for “crisis” in Chinese apparently comes from two roots meaning “risk” and “opportunity” – there is both a downside, and the potential for an upside.  That’s how César Alierta, Telefónica Chairman and CEO, began the opening keynote of their 2010 Leadership Conference in Miami (where I spent several days last week).  For Telefónica, that definition has played out with the global economic crisis.  While results in Spain have been their downside, Latin America has been the opportunity.  Telefónica has a presence in 15 countries in Latin America (and 42 countries worldwide), with offerings in mobile and fixed telephony and in IT services.  Not all offerings are available in all markets but in many countries Telefónica has leveraged a strong position in one offering to expand into the others becoming the first integrated operator in the region. 

According to José Maria Pallete, CEO of Telefónica Latinoamérica, Latin America represents 65-70% of their total customer base, 40% of revenues and about 40% of the operating income. In the enterprise space (as opposed to consumer services), 37% of Telefónica revenue comes from Latin America.  That corporate segment (including public sector) marked double digit growth in Latin America in 2009, with its biggest markets in Brazil and Mexico. 

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The Fed CIO Looks To The Cloud - Should You?

Nigel Fenwick

Federal CIO Vivek Kundra’s recent presentation to the Brookings Institution outlined how the US administration is moving to a “Cloud-first” approach to consolidating the US government technology infrastructure. Since the US government is the largest buyer of information technology in the world, spending over $76 billion supporting over 10,000 systems, we can be sure that a Cloud-first policy will have a major impact on technology vendors and the services they offer - not only to the US government but to all IT buyers.

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With 4.0, Apple Is Listening To Enterprise Concerns

Ted Schadler

Apple yesterday announced OS 4.0, it's latest iPhone and iPad operating system. This release confirms what we believed last year: that Apple is actually listening to what enterprise IT needs from iPhones. Let's review the history:

  • July 2007. Apple launches iPhone with OS 1.0 as a consumer device without anything that companies require.
  • July 2008. Apple releases iPhone 3G with OS 2.0 and introduces Exchange support, including remote wipe, but little else that companies need. Even so, some firms allowed their employees to bring their own iPhones and get email support.
  • July 2009. Apple releases iPhone 3GS with OS 3.0 and hardware encryption and enough policy-based control to give IT professionals the ability to more comfortably support the devices, particularly in non-regulated industries. The big remaining gaps in 3.0 from our 100+ conversations with IT pros? The inability to distribute applications wirelessly, to push software and policy updates to the device, and to manage iPhones or iPads in the same way that BlackBerry Enterprise Server (or Server Express, the $0-cost version) does.
  • July 2010. Apple will release OS 4.0 that includes wireless app distribution, better data encryption, more APIs for device management, and a significicant number of enterprise features that are outlined below. For other details, check out these Forrester posts on consumer functions and on mobile advertising.
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The Tech Recovery of 2010 Is Underway

Andrew Bartels

As I predicted in January 2010 (see January 11, 2010, "US and Global IT Market Outlook: Q4 2009"), a tech recovery has started in the US and around the world.  In my updated IT market forecast (see April 8, 2010, "US and Global IT Market Outlook: Q1 2010"), I point out that IT market indicators from Q4 2009 showed an end to declines, setting the stage for stronger growth in 2010.  Since IT market trends are playing out as I expected, I have made only modest changes to my 2010 IT market forecasts.  I now expect the US IT market to grow by 8.4%, a bit higher than my earlier forecast, because of better-than-expected performance in communications equipment.  My forecast for the global IT market in US dollars is a bit lower at 7.7%, with the unexpected strength in the US dollar (due to the weaker Euro after the Greek debt crisis) dampening dollar-denominated growth.  I continue to see computer equipment and software as the strongest product categories in 2010, with PCs, peripherals, and storage equipment leading the computer category and operating system software and applications setting the pace for software. Communications equipment purchases are looking up, especially for enterprise and SMB buying.  IT services will lag a bit, with systems integration project work waiting for licensed software purchases to rise. 

In this report, I provide our first look at 2010 IT purchases on an industry basis in the US.  Confirming past research, the largest US industry market for tech products and services is the professional services industry ($103 billion), followed by financial services ($81 billion), and government ($71 billion).  In terms of 2010 growth prospects, US manufacturers, financial services firms, utilities, and health care will see the strongest growth in 2010. 

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OpenText Getting Serious about Content Analytics

Craig Le Clair

Analytics is getting a lot of attention these days for additional business insight, improving the customer experience, and understanding the online experience. But these exciting areas tell only part of the story. Analytics is after all a horizontal technology that can also help improve content management and transactional business processes by helping to classify documents, improve business processes, and enhance the value of packaged apps. Open Text is adapting to this trend with announced plans to integrate the content analytics capabilities of Nstein Technologies, acquired  on April 1,  that will drive additional value in a  number of areas including - regulated documents, email, social media, Web content, OCR-treated scanned images, and content in business systems, such as Microsoft, SAP and Oracle. While Open Text's first integration of Nstein technology will integrate content analytics with Vignette Content Management system, and the Media Management DAM solution, the bigger value will come from  integration with its Enterprise Library, the core repository,  and will be marketed as Open Text Content Analytics. I have three related research projects that touch on analytics – a review of the content integration market, top use cases for content analytics, and how analytics can take capture to the next level. Analytics will be a foundation component for the enxt generation of ECM - and OT is moving that direction.

The Ultimate Grocery Shopping App?

Nigel Fenwick

Apple iPadGeorge Colony nailed it when he wrote “the iPad signals the future of software”. So where do smart-device app’s go from here? Basically, any application that focuses on saving people time is likely to be a winner but the biggest game changer will come when consumers start to benefit from customized services that save time and money while increasing brand loyalty. For example, here’s a glimpse into how we might see applications for our phones and tablets evolve to make food shopping and preparing meals at home easier…

Let’s imagine the future of a typical suburban home. In our future world we’ll follow Mr. and Mrs. Smith, working parents with little time to spare.

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Cisco Networkers 2010 Bahrain

Jennifer Belissent, Ph.D.

I just returned from Cisco Networkers 2010 in Bahrain, and wanted to put a few thoughts to paper (or the electronic equivalent).  First of all, thank you Cisco.  What a fantastic event for all involved!

The event was held at the Bahrain International Circuit (BIC), and boasted attendance of over 3,000 delegates from Bahrain and more than 60 other countries.   Not only was the event an opportunity for technical training for the attendees but it was also an opportunity for local Cisco partners to present their products and solutions.  Both are consistent with Cisco’s emerging markets strategy of country transformation – to create an environment conducive to expanding opportunity in emerging markets rather than merely exploiting existing opportunity.  Cisco works with governments and other non-governmental organizations in certain emerging markets to help develop the ICT infrastructure and local technical skills in order to build the market, and further enable economic development of the country.  Holding Networkers 2010 in Bahrain demonstrated Cisco’s commitment to their country transformation strategy.

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