ICT Outlook 2016
Abhishek Chauhan
Senior Director, Digital Transformation Practice
January 2016
Key events that shaped 2015
2
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Movers & Shakers of 2015
3
#1 Services to drive spending in Internet of Things
4
Growth rate
26.8%
CAGR 2015-2020
Total spending
US$24.2B
2015
Total spending
US$79.3B
2020
-
10
20
30
40
50
60
70
80
90
2015 2018 2020
Bn APAC IoT Spending
Services
Hardware
Software
Major IoT Initiatives
5
Preparing for the Next Wave of ‘Cloudification’
6
2010‘Cloudification’ of IT
2016‘Cloudification’ of OT
#2 Security paradigm shifts to physical domain
7
2014 2015
0%
10%
20%
30%
40%
50%
60%
70%
80%
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Cyber Crime Cyber Espionage
Cyber War Hacktivism
Perc
enta
ge o
f H
igh P
rofile
Att
acks R
ecord
ed (
2014)
0%
10%
20%
30%
40%
50%
60%
70%
80%
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Cyber Crime Cyber Espionage
Cyber War Hacktivism
Perc
enta
ge o
f H
igh P
rofile
Att
acks R
ecord
ed (
2016)
Source: Frost & Sullivan, Hackmagaddeon
#3 Data Center construction frenzy
8
Total raised floor space expected to double in 10 years.
Factors driving building frenzy:
Strong economic growth – China,
India and Indonesia.
Global players expanding in APAC
– AWS, Equinix, DRT, Microsoft,
etc.
Local players gaining reckoning,
especially in China, India, and
Indonesia.
New age businesses driving strong
adoption.
110.8204.6
70.8
181.4
2015 2025
Captive Outsourced
Asia-Pacific Data Center Space Forecasts (mn sq. ft.)
181.6
386.0
Data Center building activity heat map
9
Australia & New Zealand
APAC Hyperactive
Gaining Momentum
Limited Activity
#4 Product as a Service Model
10
>70%of fortune 500 companies will operateproduct-as-a-service business models
15%
13%
8%8%
8% 3%
Energy
Healthcare
Telecommunication
Aviation
Electronics
Automotive
Examples of Product as a Service business model
11
Ownership Access
GE’s fuel-use data analytics
Shared-usage model – New
mobility services .
Allows physicians to monitor
patients’ devices.
Customers can improve their
game performance while
Babolat receives useful data to
improve product quality.
Industry Company Product Service
AviationGE
(GE Aviation)Manufacturer of aircraft engines and systems
Value added services such as Flight Efficiency Services through data analytics
IT HP Hardware providerSeparation of Products and services business
Automotive
Daimler(Car2Go)
Manufacturer of carsCarsharing service on a pay-per-usage system
Toyota (Dash)
GM(RelayRides)
Healthcare BiotronikMedical device manufacturer
Health-monitoring system
Consumer goods
Babolat (Play Pure Drive)
Fitness equipment manufacturer
Smart technology allows data analytics and value added services
B2B
B2C
Improved focus on services
Digital Transformation Leading to New Business Models
12
Source: Frost & Sullivan
En
ab
le
Utilities
Automotive
Healthcare
Building Management
Manufacturing
Urban Management
Smart Grids
Connected Cars
Connected Health
Smart Buildings
Smart Manufacturing
Smart Cities
Tra
nsfo
rm
2016 Predictions
13
1 Industrial IoT cloud takes off
2 Security moves to Physical domain
3 Datacenter building frenzy accelerates
4 Product as a Service model emerges across industries
5 Digital Transformation leading to new business models
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