IT Industry Predictions

5 IT Industry Predictions for 2016 from Forrester and IDC

Over the past months, IDC and Forrester Research, two of the largest and most venerable analyst firms, have released 2016 predictions – and many readers will find their reports disquieting indeed companies big or small will have to embrace cloud services whether willingly or unwillingly.

1. Legacy vendors face a bleak future

IDC states in its report that by 2020, more than 30 percent IT vendors will not exist as we know them today. They will be out of business, stripped-down shells of their former selves, or combined via mergers. We’re already seeing this, of course. HP just cleaved itself into two companies. Citrix announced it will offload the GotoMeeting business unit and lay off 10 percent of its workforce. And Dell is in the midst of buying (or perhaps not) EMC.

2. Cloud providers will be winnowed down

Forrester has predicted that the major public cloud providers will gain strength, and Amazon, IBM SoftLayer and Microsoft will capture greater shares of the business-cloud services market. Despite excellent technology and scale, Google will only begin to develop momentum in large-enterprise business in 2016. Even with innovative new players like Aliyun and DigitalOcean emerging, the number of options for general infrastructure-as-a-service (IaaS), cloud services and cloud management software will be much smaller at the end of 2016 than the beginning.”

3. Big data gets, well, bigger

Big data is a phrase on everyone’s lips, and it has made data scientist, according to the Harvard Business Review, the most sought after job of the 21st century. This intense interest reflects the growing understanding that analyzing large amounts of data can offer insights previously unavailable or, worse, ignored in favor of “gut feel” and intuition. According to IDC, big data is only getting started. Today, only 1 percent of all apps use cognitive services; by 2018 (in other words, in three years), 50 percent will. Essentially, analytics will be embedded in every application.

4. Enterprises turn into software companies

So enterprises are turning away from traditional vendors and towards cloud providers. They’re increasingly leveraging open source. In short, they’re becoming software companies, or, as IDC puts it, “by the end of 2017, two-thirds of the CEOs of global 2000 enterprises will have digital transformation at the center of their corporate strategy.”

5. Developers are the scarce commodity

Of course, CIOs can’t do it on their own. They require an organization staffed with people capable of implementing the applications that will make the company a digital enterprise. Of course everything about those applications will be different. They’ll use different languages. Different databases, Different frameworks. Different execution environments. In short, nearly everything will be new – and require a different set of skills as IDC puts it, “by 2017, over 50 percent of organizations’ IT spending will be for 3rd platform technologies, solutions and services, rising to over 60 percent by 2020.”