Analyst firm predicts ‘hyperdisruption’ in 2007

IDC reckons that 2007 will be a year of ‘hyperdisruption’ in the worldwide IT market as IT vendors embrace new business models to open up pockets of growth. With global IT spending expected to climb a modest 6.6% in 2007, IDC also believes IT vendors will adopt new technologies and cross traditional market boundaries.

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By  Stuart Wilson Published  December 20, 2006

IDC reckons that 2007 will be a year of ‘hyperdisruption’ in the worldwide IT market as IT vendors embrace new business models to open up pockets of growth. With global IT spending expected to climb a modest 6.6% in 2007, IDC also believes that IT vendors will adopt new technologies and cross traditional market boundaries. The analysts at IDC also contend that with moderate IT spending growth on a global level, 2007 will witness a sustained focus on fast growing emerging markets. While BRIC (Brazil, Russia, India, China) markets will continue to drive global growth, IDC reckons that a new group of ‘beyond BRIC’ regions will show their potential as the next hot markets. These ‘beyond BRIC’ opportunities will be greatest in the emerging Asia countries, Latin America’s southern cone, the Middle East and North, East and West Africa. “While overall IT market growth will appear almost boringly moderate, its impact will be the opposite,” said Frank Gens, senior VP of research at IDC. “As IT market leaders step up their relentless hunt for growth, we’ll see many disruptive shifts, with the importance of small business becoming very big, secondary economies becoming primary, software offerings becoming services, services offerings becoming software, channel-oriented players going more direct, direct players developing radically new channel strategies, and less distinction between business and consumer players and technologies.” The hunt for new market opportunities in the SMB space is also predicted to accelerate in 2007. IDC reckons that the ability of vendors to scale down offerings will be critically important and that ‘software as a service’ initiatives will move into high gear. IDC also claims that there will be heightened competition in the information access and management space and that virtualisation and software appliances will reshape the infrastructure landscape. The IDC report also suggests that the consumer and telecom markets will be their usual concoction of convergence, creativity and confusion. “These disruptions will force many market leaders out of their comfort zones, and open up new opportunities to those that choose to surf with the disruptive tide, rather than stand against it,” added Gens.

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