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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