Software Market Trends 2012 2.0

Software
Market
Trends -
2012

Are you geared-up for 2012

Rule of thumb is, when the economy is bad, that’s when
development occurs; and you’ll see a lot of new innovations, not
only from the big players, but from new small startups.

2012 would be a trend setter in the area of Enterprise
Mobility, Cloud Offering and Retail Automation in India.

Cost Reduction is the primary area of importance for CXO’s of all
organizations

IT Cost Components
Hardware

Support & Software
Sustenance

Implementation
Consulting
& Customization

Resources

Market Insights
Approx 47 per cent of India's 1 + billion people were under the age of 20, and teenagers among
them numbered about 160 million.

Together, they wielded INR 14000 Cr worth of discretionary income, and their families spent an
additional INR 18500 Cr on them every year.

By 2015, Indians under 20 are estimated to make up 55% of the population - and wield
proportionately higher spending power.

Means, companies that are able to influence and excite such consumers would be those that win
in the market place.

India's Rs.460 billion FMCG market

India is home to six million retail outlets, including 2 million in 5,160 towns and four million in
627,000 villages.

More than 1.1 Million Distributors/Wholesale Traders

Enterprise Mobility
A survey of around 500 Jaspersoft business intelligence users found that two thirds of them have
already deployed or now have concrete plans to deploy BI tools on mobile phones in their
organisation

According to Gartner's Predicts 2011 report, more than 33 percent of BI functionality will be
consumed by handheld devices by 2013.

To date, says Gartner, mobile BI has largely consisted of existing reports and dashboards ported
to mobile devices. But the analyst house predicts that this year organisations and vendors will
develop mobile analytic applications for specific tasks or domains.

All told, 71 percent of respondents were discussing custom applications for smartphones and
tablets, a survey commissioned by Symantec reveals. The research also found that 59 percent of
respondents were running line-of-business applications on mobile devices, and 66 percent were
considering development of corporate app stores for internal application distribution.

Enterprise Mobility
Forrester studied 61 companies and found a range of approaches to delivering or
expanding mobile services. Some enterprises have their eyes on mobile self-service apps;
others envision an IT group focused on how people engage with smart phones and tablets.

Forrester - The consultancy expects business spending on mobile projects to grow by 100%
by 2015, and it expects spending on mobile apps to hit $55 billion in 2016.

Forrester also suggested that companies allot more money to mobile projects. The average
amount spent on a typical mobile app for customers -- $50,000 to $150,000 -- turns out to
be just 35% of the true two-year cost.

The survey's principle recommendations are to enable broadly, think strategically, manage
efficiently, enforce appropriately, and secure comprehensively.

The BYOD (bring your own device) phenomenon, in which employees utilize the device of
their own choice for work instead of just for personal use is also picking up significantly.

1 Billion Smart Phones by 2015

Emergence of SaaS
Getronics Report - 17% of corporate financial decision-makers in a recent UK poll
believe the position of chief information officer will disappear from the business
landscape in the next five years.

Of the 203 CFOs and finance directors who participated in the January
survey, part of a report titled "The Changing Role of the CFO," just released by
Getronics UK,

Another 43% say that the CIO's role eventually will be subsumed within finance.
Further, 31% believe those in a CIO role will be coming from a non-technical
background in the future

More than half (56%) of the CFOs and financial directors surveyed believe that a
lack of integration between finance and IT limits the impact on cost savings
achievable from IT projects within their business

Emergence of SaaS

Maintaining IT infrastructure is a key concern among
64% of respondents, while 48% say they are concerned
by the level of expenditure paid to consultancies, and
47% list license payments for software.

Respondents indicate that they believe their own tech
understanding is increasing, with only 2% saying they
are "not aware of the term cloud computing." Most
were able to provide a meaningful description of its use.

Gartner Report - 2012

SaaS is forecast to have a 23.8% compound
annual growth rate through 2012 for the
aggregate enterprise application markets, far
exceeding the total market CAGR of 11.4%.
Adoption is strong in select markets, but has
limited potential in other markets and sub
segments.

The Key Player: Hybrid Cloud
Computing
There will be a steep rise in the usage of hybrid clouds, which could satiate the company’s need to deal
with securing the data and privacy concerns associated with the Public cloud.

Interestingly, the Hybrid cloud serves the NASA’s Jet Propulsion Laboratory (JPL), where the computing
powers are leveraged to its image processing tasks for celestial bodies.

The dependence on mere Public clouds could prove fatal for more real-time processing tasks, which
could also make the organization, a potential prospect for data thefts and increase the vulnerability.

As a way of clear demarcation of business data, the critical and most valued data could be stored on the
Private cloud premises, while the huge repertoire of less prominent information could go on to Public
cloud. Nevertheless, the regulations and curtailing factors across the demographics are ruled out in a
hybrid model.

The Cloud Bursts as the Global
Economic Crisis Swell
As more financial markets continue to rumble persistently, the Cloud gets luckier.

Its necessity will be insurmountable as the need for Data Analytics and storage of colossal
information by the public sectors will be in multiples.

The scalable feature of public cloud could be a savior for business houses and other
establishments at occasions such as IT system shutdowns and sudden outbursts in sales.

The Cloud could play as backup computing device during such catastrophe and also to store
sudden bursts of data.

According to Ovum, the leading technology adviser, though there is a natural inclination towards
Cloud during such times of uncertainty, it also underlines the call for prudent evaluation of the
perils along with the merits.
Research Director, Ovum, Dr Steve Hodgkinson said “Governments need to look beyond the hype
and see the reality of both the opportunities and risks of cloud computing and factor these into
both their industry development policies and their internal IT strategies.”

The Rapid Demand for Cloud Security
The reliability factor is a decisive player in the success of a cloud implementation across corporate houses.

People find it hard to transgress from the notion that Public clouds are less secure than the Private clouds.

However, a further in-depth analysis has revealed that proper security mechanisms and designs, tools are of paramount
significance, regardless of the data location.

A security service such as Identity management is preeminent in multi-tenant cloud providers, where a single instance of
an Operating System runs on Cloud premises, delivering services to multiple clients, offering differentiated services.

For security reasons, documenting the access of some of the key business data is quintessential along with the creation
and maintaining logs; which aids the administrator in monitoring and audits.

Furthermore, the service should be available for the stipulated or the agreed time.

The masking of personal data using robust Cryptographic methods is an imperative task for a cloud implementation.

In addition, the Cloud system should be well-provisioned to automatically generate warning messages and failure
notifications.

OpenStack: the Future of Open
Source Cloud Solutions
OpenStack, the Open Source cloud project initiated by NASA and RackSpace, has
massive support from IT big-wigs across the globe.

The platform comprises of two components: OpenStack Compute and OpenStack
Storage.

True to its name, the former maintains a pool of servers for scheduling and assign
jobs dynamically to cloud subscribers, while OpenStack Storage runs the task of
storing huge chunks of data, which could be terabytes in length.

The OpenStack makes full usage of the scalable feature of Cloud while constantly
releasing the updates and patches for the software.

India’s cloud computing mkt to be
worth $1 bn in five years
The country’s nascent cloud computing market, a platform where software applications and related resources
can be shared online, is expected to touch USD 1 billion in the next five years, says a survey

“India’s cloud computing market will be around USD 1 billion over the next five years,” consulting firm Zinnov
Management Consulting said in a report.

Cloud computing, which is Internet-based, facilitates sharing of technological resources, software and digital
information. The emerging field would function on a pay-per-use model, helping technology companies to
bring down cost

Going by EMC estimates, the storage market in India will be over USD 1 billion in the next five years.

Digital information in India will grow from 40,000 petabytes to 2.3 million petabytes (one petabyte equals
1,000 terabytes) over the next decade (2010 to 2020), twice as fast as the worldwide rate. Courtesy: The
Economic Times

Mideast a boon for India IT
The Middle East has become more attractive for India’s exporters of electronic goods, IT
and its related services as the sector’s exports increased by 40 per cent to $3 billion to the
region during 2010-11 over 2009-10, according to a top official of India’s largest electronics
and IT trade facilitation organisation

The sector contributed more than 26 per cent of the total exports of India across the
world. Total exports of the country reached $251 billion during 2010-11 while the sector
contributed $66.48 billion in the same fiscal year.

The exports of electronic goods, computer software and services includes IT-enabled
services to the Middle East jumped to more than $3 billion in 2010-11, compared to $2.15
billion in the previous year, showing an increase of 39.5 per cent.

Credit goes to Electronics and Computer Software Export Promotion Council, or ESC, as it
helps facilitate companies for boosting their exports, Kamal Vachani, honourary regional
director of ESC for the UAE and Middle East, told Khaleej Times in an interview.

Analysts tag mobile, BI as hot SAP
trends in 2012
• With 2011 now in the rearview mirror, we turned to a
number of analysts to ask them what SAP trends they see
coming in 2012. Here’s what they had to say, on everything
from SAP’s recent acquisition of SuccessFactors, to SAP
Business ByDesign and SAP’s cloud strategy.

• SAP’s mobile strategy: This year proved to be a big year for
SAP mobility; next year needs to be bigger. They’ve
showcased some really good developments this year at the
various Sapphire conferences and what they’ve put to
market, and what they’re partner ecosystem is doing. But
next year’s going to have to be a higher magnitude of
intensity to convince people they’ve cracked mobility.

trends in 2012
• Business ByDesign: I think this is really going to be a really big year
in terms of SAP’s cloud strategy. It obviously doesn’t take a genius
to see some of that, in terms of the SuccessFactors acquisition. But
I think this is sort of a make-or-break year for Business ByDesign.
Some people have speculated that the acquisition of SuccessFactors
means the end of ByDesign because they assume SuccessFactors
will become SAP's dominant SaaS [Software as a Service] platform
and subsume ByDesign within it. I don’t really see that myself. *At
the same time,] they set a goal of 1,000 Business ByDesign
customers by the end of this year. They say they’re going to make
that goal. But 1,000 is really kind of a drop in the bucket in terms of
the balance sheet. It’s a nice year if it had happened four years ago.
But the markets move awful fast. They’re going to need more like
5,000 or 10,000 customers next year. So that’s going to be
interesting.

trends in 2012
• HANA and business intelligence: SAP’s BI *business
intelligence] market presence will continue to
grow, mostly because SAP is doing a pretty job of
convincing SAP ERP customers that they should
consider [SAP] BusinessObjects. That trend will
continue. *And with SAP’s in-memory analytics
appliance] HANA, we’re just beginning to see the cusp
of client interest. But I think in 2012, they’ll make
progress with that appliance in terms of adoption and
interest. It is a very unique appliance that can do things
that other tools can’t, but it’s expensive. I think
adoption will increase, but I think it will be slow.

trends in 2012
• The convergence of cloud and mobility: I see
a lot around cloud computing and mobility
converging, and starting to have a major
impact in the coming year. SAP has a good
cloud strategy now, and the SuccessFactors
acquisition is only going to accelerate that
[move to cloud] just as the Sybase acquisition
accelerated mobility.

Symantec - Better security, business
case for mobile

I think one of the hurdles for some companies is security.

We’re seeing new technologies, but also the device companies and
the mobile applications continue to improve on their security to
address the buyers concern in those areas.

So we’ll see *more of features such as+ the ability to shut down the
devices if they go missing or better tracking of the devices
themselves.

CRM on SaaS
According to a Gartner Group estimate, SaaS sales
in 2010 reached $10b, and were projected to
increase to $12.1b in 2011, up 20.7% from 2010.

Gartner Group estimates that SaaS revenue will
be more than double its 2010 numbers by 2015
and reach a projected $21.3b.

Customer relationship management (CRM)
continues to be the largest market for SaaS. SaaS
revenue within the CRM market was forecast to
reach $3.8b in 2011, up from $3.2b in 2010.[5]

Recommendations
• Solutions cutting down the cost would be the mindshare and huge
IT spends would be curtailed as much as possible.

– Infrastructure on Long Lease
• Hardware
• Software
• Maintenance & Bandwidth
• Resources
• Consulting

– Productivity tools on SaaS
• Enterprise Mobility
• BI
• CRM
• Distribution & Retail Management

For more details Contact

Syed Ahamed Tameem K
Product Head – Sales & Distribution
Sify Software Limited
scm.cpg@gmail.com
9884078656

Software Market Trends 2012 2.0

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