bt\'s market view
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Presentation prepared for HULT in Dubai (23 July 2009) explaining the role of ICT to thrive in a global recessionTRANSCRIPT
BT’s market view
Benedicte HenneboHead of MarketingBT Global Services, Middle East
and North Africa
HULT Intl, 23rd July 2009
£21,4bn Revenue £2.9bn Profit 111,858 people
Sir Michael RakeBT GroupChairman
BT Global Services
Hanif LalaniCEO
41%
BT Wholesale
Sally DavisCEO
16%
BT Retail
Gavin PattersonCEO
38% 5%
Openreach
Steve Robertson CEO
Al-noor Ramji CEO & Group CIO
BT Design
Matt Bross Group CTO
BT Innovate
BT Group
Ian Livingsto
ne BT Group
CEO
Group Operations & Strategy
Roel LouwhoffCEO
BT Operate
BT Group
BT Global ServicesUK
Professional Services experts: 3,000
UK12,600 employees2,500 major customers 9,000 connections
North America2,600 employees3,500 customers8,000 connections
Asia Pac
Professional Services experts: 2,000
Asia Pac4,750 employees650 customers11,000 connections
EMEA
Professional Servicesexperts: 3,000
US
Professional Servicesexperts: 2,000
MEA250 employees600 customers3,000 connections
Western Europe8,300 employees6,700 major customers46,000 connections
CEE/Russia400 employees350 customers3,000 connections
Latin America1,000 employees500 major customers2,000 connections
BTGS serves 8,500 major multi-site
customers worldwide
If a picture is worth 1000 words…
Recession?
World GDP and World Trade %YoY growth forecast
-10-8-6-4-202468
1012
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Trade in goods World GDP
World economy in deep recession
Source: EIU, May 2009
Economy
World economy recovery is not expected until 2010
The recovery will be slow, and growth take longer to return
However, some leading indicators point to the fact that economy is approaching the bottom of the cycle, e.g.:
Global Stock Market mini rally starts in March 2009, oil price moves higher
OECD report (published in May 2009): Index of composite leading indicators for major economies indicates that some of them may have now reached the through of the economic cycle
The above signs are still tentative
2009 will be the first year after WWII that the global economy will decline
World trade is expected to decline by 8.2% in 2009, as a result of the recession
“Don’t waste the crisis”
Source: EIU, 30 May 2009
Forecast GDP growth for selected countries (%)
ItalyBelgium
UKFrance
Hong Kong
India China
Spain Nether-lands
Russia
USA
GermanySouth Korea
Japan
Canada Brazil
-8
-6
-4
-2
0
2
4
6
82009 2010
Economy
EU
BRICs
Developed Asia
North America
Developed countries: In recession in 2009 and they will see little growth in 2010. USA and Canada will be the first to see the recovery.
BRIC countries: mixed picture for 2009, all BRICs are expected to grow in 2010, India and China continue with strong growth throughout the recession
The shifting power equation
-3.7% GDP estimated
growth 2009
4.8% GDP estimated
growth 2009
$1.4bn raised in IPOs last
quarter
21 million page views per month
3.8 billion page views per month
6.7 million eBay listings
added per day
Sovereign wealth funds $3.22 trillion
60 days+ to build a
datacentre
West East
Publiclisting
SovereignWealth Funds
Corporate Community
Infrastructure Customer
8
Crisis: unleash your innovation
1948/91st Post war Recession
Cellphone, Transistor
1958GDP depression
Lazer
70’s Graphic User InterfaceEthernet, TCP/IP, DNA recombination
80’s PC, Walkman,…
.com bubble Google, YouTube…
Innovation
Don’t waste the crisis
Companies
Useable Business Intelligence Virtualisation end user in
charge Mobility, always on Social Computing, everyone
is an information source UCC, your colleague is one
click away
Technology
Outsourcing/hosting/managed services continues to be very relevant
Federated approach to IT. Global players Leverage green IT capabilities as customers look to be ‘Lean
and Green’ Provide them top class service to end customer. Customer
dictates the market
Business Opportunities / Implications
Severe economic downturn Stalled globalisation Increased Gov. intervention and
regulatory burdens Increase in protectionism and
nationalism Continued importance of green
and CSR issues
Regulatory, political & economic
Increasing competitive rivalry some providers are chasing smaller but more profitable deals
Keeping the customer is key, sometimes to the price of margin
M&A activity has expectedly cooled in 2009
Competition
How does this impact the marketplace?
Most companies are trying to survive, contain costs and/or improve operational efficiency
Short term demonstrable ROI is a pre-requisite for CAPEX investment
Focus on core business activities/disposal of non-core
Sector view
Finance
Impact of the crisis on
companies:
survival modecost cuttingoperational efficiency
low impactbenefiting
Oil & Gas
Retail
Government
Utilities
Packaged goods
Manufacturing/Automotive
Pharmaceutical
New Regulatory Burden
CEO Priorities
Source: Gartner CEO Concerns 2009: Dealing With the Downturn, March 2009
CEO Priorities for 2009
Restructuring Write-offs Loss of Business Trust
Globalisation InstabilityGreen issues
80-20 ratio: Spend less on internal IT issues and more on external, customer-facing projects
Capture and communicate the business value of IT efforts and expenses on global projects
Shifting the internal outlooks of worldwide IT organisations to reflect global perspectives rather than domestic ones
CIO Priorities
Sources: Global CIO Survey, Information Week, May 2009, Goldman Sachs Global CIO Survey, March 2009
CIO Priorities for 2009
Reducing overall IT function costs
by
Reducing facilities costs, including through energy efficiency initiatives
Increasing off-shoring where possible
Exploring cost saving benefits of cloud computing, e.g. SaaS
Rationalisation of software purchasing, vendor standardisation
Reducing staff, scaling back projects, delaying purchases
Network is the intelligent enabler Strategies:
Business Process:
Applications:
Infrastructure:
Highly-interfaced applications automate and standardise information-intensive business processes
Complex transactions unique to the enterprise
Growth, profitability and efficiency
•Performance
•Availability
•Scalability
•Security
Must be able to support requirements for:
The network becomes an intelligent enabler of strategies, processes and applicationsBest practice
21 CN global networked services platform
Single BT Global Contract
Converged Service Management
£857m Open Innovation
21 CN global networked services solutions
iVPN, SOI Platform, Virtualisation, SaaS & Re-usable Capabilities
21 CN global networked services benefits
Securely connects global operations
Enables efficient globalisation
Provides foundation for global
collaboration
Strengthens operational risk
profile
Enables technology renewal and
transformation
Provides access to open innovation
• Reduced operational costs
• Improved enterprise performance
• Service delivery transformation (CRM)
• Securely. Resiliently with minimum risk
Transition
Transformation
Innovation
A consistent and proven methodology
Impacting the bottom line
Existing barriers to effective communication
Sources: Sage Research
At least Monthly 35%
…results in lost time, delays and missed deadlines
Daily 52%
…have to use multiple methods of reaching coworkers…
Up to 6 types of devices
Communication devices and apps proliferating…
47% travel at least once per month
employeesincreasingly mobile…
Communication today and tomorrow
Unified communications link communication and
collaboration technologies to improve and accelerate
business processes
What is Unified Communications?
Squeeze the lemon: Travel banGartner’s CIO priorities survey 2009,
1. Business Process Improvement2. Reducing Enterprise Cost
ICT is seen as a major tool for improving business processes and operational efficiencyTelepresence at Southbank Symphonia
Just 36% of organisations have a single view of the customer across their multiple channels/systems4
Multiple systems
Only 40% of contact centres advisors haveprevious experience3
Different levels of agent skills& knowledge
41% of organisations don’t record channel preference1
Multiple Communication Channels Multiple sites
56% of contact centres have more than one operational site
Contact centre
Cherish your customer: “Fragvergence”
Getting things right presents opportunities
ICT Spend is focused on customer-centric activities
Customerexperience
Sources: 1 Datamonitor 2 & 3 Contact Babel 6 4 Dimension data
Smart Customer InteractionsExtracting maximum potential from today’s complex contact centres
Sustainability is a key road to profitable growth
BT is able to deliver sustainable business through its Networked
IT portfolio
While the sector (ICT) plans to significantly step up the energy efficiency of its products and services, ICT’s largest influence will be by enabling energy efficiencies in other sectors, an opportunity that could deliver carbon savings five times larger than the total emissions from the entire ICT sector in 2020
Smart 2020: Enabling the low carbon economy in the information age
Enterprise green IT services spending will grow by 60% annually to reach $4.8 billion in 2013.
From Web 1.0 to Web 2.0 to Web 3.0
Source: Social Media Bootcamp by Akanksha Goel
The importance of new media
Iranian elections
Corporate usage of social media
Source: Technorati
The new marketing rules
Source: Social Media Bootcamp by Akanksha Goel
Key Emerging Technologies for 2009Emerging Technologies
Source: Gartner, Forrester, Morgan Stanley
Technologies rated as the key and emerging by most technology analysts:
Machine to Machine (M2M)
User Interfaces
Crowdsourcing
Semantic Web
Augmented Reality
Given the weak economic scenario most organisations are currently focusing on cost reduction. For many short term ROI is a pre-requisite for IT
investment. In 2009, technologies like Unified Communications, Telepresence, SaaS, Outsourcing that help organisations reduce
costs and capex will experience growth, while spending on SOA, Enterprise Mash-ups, Virtualisation are expected to be delayed
Cloud Computing
SaaS
Virtualization (Desktop, Server)
Green IT
Social Computing
Unified communications
Mash-ups and Enterprise portals
Business Intelligence
Mobility – Mobile apps and Internet
Web Oriented Architecture
Disruptive technologies that radically transform
markets, create wholly new markets or destroy
existing markets for other technologies
Source: Analyst & Industry Reporting
More Info?
Thank You
Appendixes
Total size of the business market for ICT in 2009
North America$809.3bn
YOY Growth in 2010 = 1.2%CAGR 2007-12 = 2.5%
North America is the largest market but it experiencing the second lowest
growth due to economic pressure
Latin America$115.4bn
YOY Growth in 2010 = 4.1%CAGR 2007-12 = 6.1%
Mexico is the largest market in terms of size in Latin America
followed by Argentina
Western Europe$597.7bn
YOY Growth in 2010 = 0.2%CAGR 2007-12 = 2.1%
The UK is by far the largest market but economic pressure has meant that WE has the lowest YoY growth and CAGR
Asia Pacific$485bn
YOY Growth in 2010 = 3.1%CAGR 2007-12 = 4.5%
Japan is by far the largest market in the Asia-Pac Region followed by Korea which
is less than half the size of Japan
Middle East & Africa$81bn
YOY Growth in 2010 = 3.4%CAGR 2007-12 = 6.7%
Turkey represents the largest market in this region followed by the UAE
Russia, Central & Eastern Europe$69.3bn
YOY Growth in 2010 2.2%CAGR 2007-12 = 7.4%
The smallest regional market but RC&EE has the largest CAGR
The worldwide ICT market in 2009 in worth US$2.2tr and is expected to grow YoY (2010) by 1.6% with a 2007-12 CAGR of 3.3%
The severity of global economic pressures are impacting on the regions at different levels with North America and Western Europe seeing the brunt of the economic
downturn with many countries in recession.Source: BTGS Market Sizing Team May 2009 (figures rounded to the nearest 0.1 of a billion/percentage point)
NB: Market size is indicative of the total business market
Market Data
Worldwide IT outsourcing contracts analysis
2007 to 2008 YoY Growth
Total Contract
Value
Average Contract
Value
Run Rate
Average Contract Length
Number of Deals
Worldwide (all sectors) -17% -13% -9% -3% -4%
Commercial (only) -9% -2% 2% -7% -7%
Commercial (global scope)
22% 2% 5% -5% 19%
Source: IDC, May 2009
Analysis based on IDC’s IT contracts database on deals >$10m
60
7864
7895
104112
169
138
115
90
-29%
-17%-19%
30%
15%23% 21%
10% 8%
50%
0
50
100
150
200
19981999200020012002200320042005200620072008
(US
$B
)
-40%
-20%
0%
20%
40%
60%
TCV - Worldwide Y/Y Growth Rate
Worldwide TCV and growth rates – 11 year view
Worldwide TCV ($10M+ deals) reached $115B, resulting in a decline of 17% in 2008, though levels are still higher than all years previous to 2005.$10M+ deals declined in TCV and across all metrics due to the economic downturn and deferring of contracts.Large decline in TCV and small decline in number deals indicates customer preference for smaller deals.Rise in the number/value of deals with global scope as global enterprises look to generate savings via a federated IT approach.Average TCV in Government has fallen by 30% from 2007 to 2008. Mega deals numbers fallen from 38 in 2007 to 11 in 2008.
Outsourcing Deal Analysis
Outsourcing Deals in 2008 - EMEA
Help desk and/or support services were in highest demand in 2008
Source: Forrester, March 2009
Source: Forrester, March 2009
Forrester tracked 341 deals (>€10m) in 2008Overall spending significantly down.Preference for smaller, shorter deals increases resulting in decline in number of mega deals (3 in 2008 down from 7 in 2007) Q408 saw a dramatic increase signed deals from 59 in Q308 to 92 in Q408.UK firms continue to lead outsourcing in EMEA followed by Germany and the Netherlands.Finance saw the largest YoY drop in spending (over $6bn)Manufacturing enterprises spent the most money while Government and the public sector closed the most deals.51% of deals in government were for less than €20m (35% and 33% in finance and manufacturing. respectively).
Outsourcing Deal Analysis
Source: IMF, Reuters; industry reporting
Key Trends ImplicationsPositive/ Negativ
ePotential Head
-line Props
Severe Global Economic Recession
Under the scenario, ICT projects with longer pay-back period are likely to be deferred in most industries, impacting growth rate of the overall ICT market negatively. ICT trend in emerging countries is likely to face significant downward pressure. The abrupt change in scenario will negatively impact on ICT opportunities.
Improve Operational Efficiency IP/IT, Make Contact Centres Efficient
Focus on Operational Efficiency and Cost Reduction
Technology leaders are faced with the challenge of trimming the fat out of their budgets. Gartner’s CIO survey on their top10 business priorities for 2009, 'Business Process Improvement' and 'Reducing Enterprise Cost' ranked 1st and 2nd respectively. ICT is seen as a major tool for improving business processes and operational efficiency; the focus is most likely to contribute positively to the ICT market revenues
Improve Operational Efficiency IP/IT
Stalled Global-isation
For the first time in decades, growth in world trade will lag behind growth in world GDP. This implies that the share of trade in world GDP will decline - a poignant illustration of ‘stalled globalisation’. Globalisation is a major driver of ICT needs, especially connectivity and integration, in the enterprise world; stagnation in the activity is likely to inject passivity in the market
Improve Operational Efficiency IP/IT, Optimise Network Centric Security
Downtrend in M&A Activity
So far this year, the merger volumes in Americas, Europe, Asia Pacific and Japan have declined by 30%, 47%, 34% and 11% respectively. M&A is a major driver of ICT needs, especially connectivity and integration needs; the downtrend in the activity comes as a major offsetting factor from the global ICT opportunity standpoint.
Improve Operational Efficiency IP/IT, Unify Comms
Trends driving the ICT demand (1/3)Market Trends
Key Trends Implications Positive/ Negative
Potential Headline Propositions
Increasing Adoption of Social Computing
Through 2010, the adoption of social computing software in IT operations will increase by 100%. Social computing comes as a major driver for connectivity and integration needs in the enterprise world. The growth in its trend should contribute to increase the overall ICT market revenues markedly.
Unify Comms, and Improve Operational Efficiency IP/IT
Increasing Interest in Green IT
More often than not disguised as cost reduction in the current economic climate. Enterprise green IT services spending will grow by 60% annually to reach $4.8 billion in 2013. Green IT is a driver of enterprise ICT needs, acceleration in its demand is going to strengthen it further.
Unify Comms, and Improve Operational Efficiency IP/IT
Increased Focus on Compliance Management
Process and technology strategies in 2009 will focus on risk standardisation, increasing oversight, performance and risk management coordination, evolving expectations of corporate responsibility and big shifts in governance, risk, and compliance (GRC) technologies. Increasing focus on compliance management should impact the overall ICT market positively.
Unify Comms, Improve Operational Efficiency IT and Optimise Network Centric Security
Virtualising the Enterprise
Virtualisation remains a high priority for CIOs as they look to increase the capacity and reduce the cost. Benefits of virtualisation are being increasingly recognised in the enterprise world. The market is expected to experience good growth in the next few years, representing an opportunity enhancing trend for the overall ICT market.
Improve Operational Efficiency IP/IT and Optimise Network Centric Security
Trends driving the ICT demand(2/3)
Source: Gartner; Forrester; industry reporting
Market Trends
Key Trends ImplicationsPositive/ Negativ
ePotential Headline
Propositions
Interest in Offshoring and Outsourcing Continues
Outsourcing will continue to grow in 2009 despite economic slowdown. Although things look gloomy for the larger global economy, the outsourcing market represents a dichotomy: on the downside, organisations' cost-cutting outsourcing strategies may negatively impact market growth, but at the same time, the upside is that outsourcing will be adopted by more organisations to help them work through financial and competitive challenges.
Improve Operational Efficiency IP/IT, Unify Comms, Work Anywhere and Optimise Network Centric Security
Mobility Continues to be a Top Priority
Mobility is a top priority for enterprises and will continue to place a high priority on mobility initiatives primarily for productivity increases, with mobility activities heating up in emerging markets. Increase in demand for mobility solutions would have positive impact on overall ICT market.
Work Anywhere and Improve Operational Efficiency IP/IT
Collaboration Vibrant
The tough economy is forcing companies to restrict travel while keeping distributed teams in touch. Changes in the composition of the workforce mean enterprises must capture the knowledge of retiring Baby Boomers and provide Gen Yers with their favored tools to work efficiently. These trends have created opportunities for collaboration vendors within global and multi-national enterprises.
Unify Comms and Improve Operational Efficiency IP
Anywhere IT/Cloud Computing Advances
During the next few years, cloud computing will advance further to underpin Anywhere IT as four distinct “clouds”—the enterprise cloud, software as a service (SaaS), platform as a service (PaaS) and infrastructure as a service (IaaS). Growth in “Anywhere IT” market comes as a major positive trend from the ICT opportunity standpoint.
Unify Comms and Improve Operational Efficiency IP
Trends driving the ICT demand (3/3)
Source: Gartner; Forrester, Yankee; industry reporting
Market Trends
Sector Trends
CPG Increasing importance of emerging markets Recession leads to lower disposable income for consumers which leads to declining brand loyalty and increasing price pressures
Oil & Gas Lower oil price results to capex reduction New exploration and production is having
low return. Companies will invest in IT that will enable them to explore difficult oil fields more effectively
M&A activity will result to some mid-size players being acquired by larger, stronger competitors
Government Government spending results in large
deficits, which will bring budget cuts in future years
Drive to improve efficiencies
Utilities Energy efficiency becomes a priority Opportunities to invest in innovative
projects such as intelligent grid, carbon management, smart metering
Sector trends
Manufacturing Focus on improving supply chain Manufacturing activity is low
Retail Lower demand results to capex reductions Retailers scale back expansion plans
Finance Need to improve risk management M&A: players that find themselves in a strong position will act as consolidators Customer acquisition and retention Business intelligence seen as key to success
Analyst predictions – business focus (1/2)Predictions
IDC predicts global IT spending growth to slow to
2.6% (half of 2008's 5% growth rate). The slower
growth will effectively strip out $35 billion of potential
growth in 2009 and will take three years for IT to return to 2008 growth rates. As a result of this poor growth
environment, it will be critically important for
suppliers to look below the surface and more quickly and decisively orient their
businesses toward customer segments that are spending
at above-market growth rates, and toward offerings
with benefits that are magnified in a down
market.
Whether the economy is running low or high,
finding qualified people remains a full-time pursuit. When it comes to the types of
expertise they will seek in the future,
CIOs expect to increase expertise in information design, business process
design, and relationships and sourcing, while decreasing their
expertise in technology
infrastructure and services.
Growth opportunities for telecom services in mature economies can come only from a wide
range of advanced digital services. In emerging markets,
carriers need to innovate to face competition and
support advanced users, but they can
only invest marginally in the more advanced
services needed in mature economies. Services will include mobile messaging
m/presence, advertising,
information services, video and
identification.
Global growth will be cut in half and take three years
to come back
Through 2012, business demand
for IT-driven growth and
innovation will outstrip the supply of qualified people
to fulfil it.
Through 2012, truly global companies
offering communications and cloud computing will show more revenue growth than their peers not offering these services.
Source: Gartner Forrester, IDC and Industry Reporting
Analyst predictions – business focus (2/2)Predictions
Outsourcers will look to make strategic
investments, part of which will be acquiring (or merging with) other
services firms with the goal of achieving the
extension of capabilities, ensuring scalability for growth, pursuing more
strategic investments for long-term growth and
competitive advantage. IDC believes that with the economic downturn, the
services industry will enter a new phase of
restructuring over the coming years, with these
host-based models becoming a more focused
option for meeting customer outsourcing
needs.
In the last decade, Indian service providers and traditional service providers have been
competing in the market while focusing on filling their respective delivery
gaps. As Indian providers seek new
revenue growth opportunities, the
potential for acquiring an indigenous European service provider versus organic growth presents a favourable option in terms of speed, access
to an existing client base, local country
presence, and optimizing
complementary strengths.
The capital crisis will further exacerbate consolidation in the
telecom sector, stimulating more
mergers in all regions. Telcos will expand
aggressively into cloud services. The emerging cloud services delivery
model presents a once-in-a-generation opportunity for the telecom industry to
accelerate what they've attempted do
for decades with limited success:
diversify into broader business and
consumer value-added services
Outsourcing services market to consolidate
and restructure
By 2011 a large Indian service
provider will buy a large European
service provider.
The telecom industry will
consolidate, and expand, in 2009
Source: Gartner Forrester, IDC and Industry Reporting
Analyst predictions – technology focus (1/2)Predictions
The purpose of UC is to expand the scope of
traditional coms possibilities. IDC believe UC will change
the way companies do business internally and
externally, and ultimately the coms culture of
companies. This means that UC will shape enterprise coms, infrastructure, and related services for many years to come. The impact
will be seen in the changing nature of enterprise
telephony (with software becoming more dominant),
business applications, enterprise mobility, and in consulting, integration, and
managed services.
As part of outsourcing engagements, customers will
increasingly look toward new
technologies (e.g., virtualization, Web
services, and unified communications) and service models (e.g.,
SaaS, cloud/utility computing, hosting, and homeshoring) to support customers' need to drive down
costs as well as improve quality of
service and operational capabilities.
Most organizations are already using, piloting
or investigating at least some social software
such as social networking tools, wikis.
Although awareness, interest and willingness
to deploy social software will continue to increase, several factors
will prevent large organizations from
investing in broad pre-integrated suites of
social software functionality for use by
all their employees such as uncertainties about
business benefits
Unified communications will change the
way companies do business
Acceleration in offering new
technologies and new delivery
options as part of outsourcing
engagements
By 2012 more than 30% of large organizations will have deployments of social software suites available to
all their employees
Source: Gartner Forrester, IDC and Industry Reporting
Analyst predictions – technology focus (2/2)Predictions
According to IDC's 2008 European WAN Manager
survey, the overall number of companies
that expect to be using legacy data network services at the end of
2009 is, unsurprisingly, down on 2008. The
number of companies expecting to use carrier Ethernet services is 15% higher, making Ethernet the only service to see
any significant increase in customer numbers.
Awareness initiatives by the MEF and individual providers will further
highlight the attractiveness of Ethernet
services in 2009.
With the global economy on hold,
enterprises are seeking to maximize
efficiency, reduce capital spending,
rationalize assets and infrastructure, and control opex. In the
datacenter, this translates into a
continued increase in the use of blade
servers, looking for energy efficiency
gains, higher utilization rates,
datacenter consolidation, and
greater use of third-party datacenters in
the form of collocation.
Virtualization is becoming standard on
x86 servers in the datacenter, and will be accelerated further by the current economic
situation, as companies seek
efficiencies improvements. The emergence of cloud computing will up
datacenter requirements from both enterprise and
service provider customers and will, again, be stimulated by the credit crisis; in
absolute size, however, it will remain
a small part of the market in 2009.
Ethernet will be the rising star in data services in
2009
Datacenter Providers Will
Have a Good 2009
Virtualization and Cloud Computing in the Datacenter
Market
Source: Gartner Forrester, IDC and Industry Reporting
Key Emerging Technologies for 2009
Cloud Computing – Moving IT delivery into the cloud. The efficiency, scalability, and cost savings make cloud computing something that businesses must consider, especially with 2009 set to be another slow year for the economy.
Drivers/ Issues & Challenges – Cost, built-in elasticity and scalability are potential benefits. However, customers are confused about what it actually can do for them.
Implications for BT - Leverage partnerships with VMware software, vCloud Initiative to deliver enterprise-class cloud computing
Virtualisation - Virtualisation impact on the overall IT industry has been dramatic and will continue to be the most change-driving catalyst for infrastructure and operations software through 2013.
Drivers/ Issues & Challenges - Boosts IT productivity and expedites server setting-up, accelerates time to provision end-user PCs and upgrade cycles of desktop OS.
Implications for BT - Use BT as case study to demonstrate virtualisation in action
Emerging Technologies
Software as a Service – SaaS is forecast to have a 19.4% CAGR through 2013 for the enterprise application market, more than triple the total market CAGR.
Drivers/ Issues & Challenges – Lower initial TCO, upgrade and switching costs. Faster implementation. TCO could turn out to be more expensive in the long run.
Implications for BT - Leverage the power of its 21CN SOI platform that delivers SaaS to further reduce costs, meet business demand and to tap the growth in the market
Context Aware Computing - Conditions will develop in 2009 through 2012 that will lead to mainstream adoption of context-aware computing using location, presence, social computing and search-based to enhance context enriched services.
Drivers/ Issues & Challenges - Enhances computing user experience using and Increased set of sensor-based inputs.
Implications for BT - BT with significant collaboration and SI capabilities can take advantage of the growth in the technology
Source: Analyst & Industry Reporting
Key Emerging Technologies for 2009
Green IT – Forrester forecasts very healthy growth of 60% CAGR for Green IT market, peaking at $4.8 billion in worldwide user spending in 2013. In 2009 many Green IT initiatives will be disguised as cost reduction.
Drivers/ Issues & Challenges – Cost efficiencies, Government stimulus packages and strengthen the brand/goodwill.
Implications for BT – promote BT green credentials and Market virtualization, UC and collaboration tools to meet Green IT objectives of customers.
Business Intelligence – BI remains the top technology priority in Gartner’s 2009 CIO survey, mirroring CIO’s focus on business process improvement.
Drivers/ Issues & Challenges - The events that led up to the global economic recession call for greater transparency and financial disclosure, thus regulatory reforms will drive the adoption of interactive BI tools
Implications for BT - Successful implementation requires secure, efficient and application aware networks to support the applications, playing to BT’s core strengths
Emerging Technologies
Social Computing – By 2012 more than 30% of large organisations will have deployments of social software suites available to all their employees.
Drivers/ Issues & Challenges – Inexpensive set of tools to support collaboration and customer relationships but difficult to calculate ROI
Implications for BT - Unified communications and collaboration services offered by BT can help organizations meet their social computing needs by building user-center communication applications.
Unified Communications - Enterprise spending on UC is displacing spending on best-of-breed stand-alone communications, in both the premises-based, and hosted services market domains.
Drivers/ Issues & Challenges - Improved business results, decrease process cycle time by significantly reducing human latency
Implications for BT - Provide interoperability and deep integration of the communications, mgt and reporting functions with product partners in order to differentiate.
Source: Analyst & Industry Reporting
Disruptive Technologies
Crowdsourcing – Proving to be a disruptive model that can displace antiquated business practices by utilizing the power of communities.
With the advancements in crowdsourcing, innovators need not sit in the same building or campus, and companies can move innovation activities to anywhere in the world. Thus, lot of innovation projects are expected to move to India and China in near future
BTGS could look at use of crowdsourcing as a tool for innovation within its business model, products and services
Semantic Web – Over the next decade, Web 3.0 will spawn multi-billion dollar technology markets that will drive trillion dollar global economic expansions to transform industries as well as our experience of the internet, Ovum, Jan 2009.
Semantic Web should benefit BTGS by enhancing the business driver for efficient and reliable networking environment
Emerging Technologies
User Interfaces – According to Gartner, within the next five years, information would be presented via new user interfaces such as organic light-emitting displays, digital paper and billboards, holographic and 3D imaging and smart fabric
By YE12, 20% of non-video Internet traffic will be data-derived from a rapidly growing number of sensor-based inputs, Gartner, Feb 2009
Using its BT Balance technology it can tap the boom in the new motion sensitive user interface market.
Machine to Machine - The M2M market has been poised for strong growth, which has partly materialized, but not to the expected degree
Berg Insight estimates there were 14.1 million machines connected to mobile networks in Europe at the end of 2008, up by 34.2% from in 2007, and it expects its to rise to 58.6 million by 2013
Increased adoption of M2M technology would act as a business driver for networking and system integration services.
Source: Analyst & Industry Reporting