Disruptive tech poses threat to traditional IT firms

by CXOtoday News Desk    Nov 21, 2013

disruptive tech

The ongoing transformation of the ICT industry is giving rise to a number of innovative products and solutions. As trends like cloud and mobility increasingly drive disruptive innovation, the traditional IT vendors will struggle to grow or even maintain their market share, according to Frost & Sullivan. “Cloud and Mobility are the two main themes driving significant change in the ICT industry and driving disruption in the ICT market” says Audrey William, Head of Research, ICT Practice, Frost & Sullivan Australia & New Zealand.

The major trends that will create significant impact in 2014 include BYOD, Internet of Things, M2M, besides other mobility-based apps.

Enterprises need a mobility strategy

As mobile devices are increasingly used for business, BYOD (Bring Your Own Device) and CYOD (Choose Your Own Device) will become important themes for businesses in developing a mobility strategy, says Frost & Sullivan.

Whilst the device itself is one part of the equation, greater challenges lie in how to manage apps, how to control which apps should be allowed and disallowed from employee’s devices and having the right security measures in place as part of a wider enterprise mobility strategy.

Given the sheer volume of devices and applications being used by employees, security is very critical for every organization and specialist Mobile Device Management (MDM) vendors and security vendors will play crucial roles. Security has been highlighted in Frost & Sullivan’s research as the single biggest challenge faced by organizations in implementing an enterprise mobility strategy.

Cloud-driven disruption

Cloud based MDM applications as well as cloud based private enterprise App stores will become more relevant in 2014, says the report. Some of the benefits include greater control over which apps are used by employees. An enterprise App store also allows employees to download apps that have been approved by the organisation, without the need to worry about security or reliability issues.

With the rise of ‘Internet of Things’, Frost & Sullivan estimates that there will be close to 80 billion connected devices by 2020 globally. M2M (machine-to-machine communication) is growing rapidly,  and we will see rapid growth in the number of devices with smart sensors, RFID tags and other intelligent input and output automated sensory systems, enabling high level connectivity between machines, devices and individuals.

This will lead to innovation in how services are delivered in industries such as Healthcare, Automotive, Logistics, Transportation, Retail and Mining. Frost & Sullivan believes that the impact of IT on multiple industries will become increasingly pronounced over the next year.

Service providers will ramp up

With cloud and mobility driving significant change within businesses, the role of telecommunications service providers will also become more prominent. Frost & Sullivan believes that telecommunication vendors will ramp up their service offerings across cloud, mobility, managed hosting, contact centres and enterprise communication services.

Although telecommunication providers will face competition from Infrastructure-as-a-Service (IaaS) players such as Amazon Web Services, they will play an increasingly important role in the delivery, management and hosting of cloud services. Additionally, in the era of the Internet of Everything and of mobility, telcos will play an increasingly vital role in the delivery of ICT services.

Threat from Google, Amazon

Although Google’s penetration into the Enterprise Communications space is currently well behind traditional vendors that have been selling into the voice and video markets, Google has all the right pieces in place to now make significant inroads into the market.

A number of large organizations have moved to Google’s cloud mail, and Frost & Sullivan expects more organizations will follow in 2014. Google is also working on upgrades to its video Hangouts, to be better able to handle high definition video. This could potentially challenge traditional vendor offerings. In 2014, more integrators will offer hosted telephony for enterprise grade voice services from their own hosted telephony solution and bundle in Google hangouts as a hosted/cloud offering for enterprises. Google is also working on a number of ambitious plans in the areas of cloud, big data and the internet of things. Google’s influence in the enterprise space will only get stronger.

Amazon Web Services will continue to grow fast 2014. Although many companies will continue to buy servers and storage from the likes of HP, IBM and Dell, a growing number of organizations now feel comfortable with buying servers and storage in the cloud for a fraction of the cost of on-premise storage.