2016: the tipping point for 3rd platform, says IDC

IDC’s Third Platform –the next computing generation—rests on cloud computing, big data and analytics, social business, and mobility. Together, these form a foundation to provide scalable anywhere-anytime-any device computing. As these trends become ubiquitous, they enable and accelerate the Internet of Things (IOT), cognitive systems, robotics, 3D printing, virtual reality, self-driving cars, or better security.

At the same time, this brave new world wreaks havoc on the old one of PC’s, client-server software and legacy apps. I would also add another disruptive ingredient to the mix—open source software, which is no longer for hobbyists and is now embedded in most new applications. IDC predicts that 2016 is the year in which spending on third platform IT will exceed that for the second platform, with a CAGR of 12.7% for 2015-2020. At the same time, they predict that second platform investment will be down 5%.

Their recent surveys show that, in terms of maturity, today most companies are in the digital exploration or early platform development phase, with 14% having no interest in digital transformation, and only 8% already using digital transformation to disrupt competitors or markets. That will change by 2020 as 50% of businesses will be using this platform to disrupt and transform.

Other predictions:

  • Business owners, not IT will control more of the IT budget
  • Health services and financial services are two of the top industries to invest, reaping the rewards of faster, cheaper, and more comprehensive uses of their data.
  • Other top applications now in the works include marketing and sales, retail, security, education, media and entertainment.
  • Technology will be embedded in most applications and devices.
  • Start-ups are rife, and the shakeup has not yet begun
  • Cognitive computing and AI is a requirement for developer teams—by 2018, more than 50% of developer teams will be using AI for continuous sensing and collective learning (cognitive applications and IOT).

Where does existing IT infrastructure play in this game? In our scramble as analysts to pin down trends, we often neglect the fact that existing systems and applications a still valuable. They may well be good enough for a given task or process, or they may continue to churn on, feeding into newer layers of technology stacks when appropriate. Unlike newer versions, the kinks have been worked out. The challenge for business and IT managers will be to distinguish between the promise of the new and the security of the old: when to invest, when to explore, and when to stand back and watch. Good question!

Click here or more information on IDC’s take on the 3rd Platform

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