IDC 2006 Predictions

[via Sadagopan] IDC predicts “that moderate IT spending growth will force many information technology vendors to rethink their product and service offerings, merger and acquisition opportunities, innovation strategies, delivery models, and the competitive landscape.” Among the predictions:

* IT delivery has been shifting from products to services over the past several years. But in 2006, IDC expects this model shift to accelerate. The most obvious evidence of this shift reaching a tipping point will be the announcement in 2006 of next-generation versions of applications delivered as an online service (e.g., from one or more of the packaged application leaders (SAP, Microsoft, Oracle).

* The “Google effect” will spur traditional players to hasten their move to disruptive models. In 2006, Google will increase its presence as a disrupter in the information, application, and services segments of the IT industry. While much of this disruption will be years in the making, and will be over-hyped in 2006, the more important impact of “Google as a disrupter” will be as a spur for traditional suppliers to disrupt themselves before competitors do. This will be evident in enterprise applications, information management and IT services.

* In the consumer space, 2006 will see IPTV get off the ground, but altitude will still be low with only one million telco subscribers (vs. 70 million cable in the U.S.). Sony’s Blu-ray will crowned as the winner in the next-generation DVD format war. And online music subscribers will generate over $1.4 billion for the embattled music industry in the coming year.

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Rajesh Jain

An Entrepreneur based in Mumbai, India.