Home / / Third platform to be primary ICT growth driver: IDC

Third platform to be primary ICT growth driver: IDC

Research firm says social, cloud, mobile, analytics to form 75% of global tech growth

Third platform to be primary ICT growth driver: IDC
The third platform is set to drive the majority of global ICT growth for the next decade.

The so-called third platform, consisting of social media, cloud, mobility and analytics will serve as the primary growth driver of the ICT industry over the next decade, according to International Data Corporation (IDC) research.

The technology set is forecast to be responsible for 75% of new growth as worldwide ICT spending moves from $3.7trn in 2013 to more than $5trn in 2020. The proliferation of third platform solutions - and new customer expectations - is rapidly disrupting software business models, changing them forever.

"The third platform is not just a technology revolution; it's also a customer revolution," said Amy Konary, research vice president for Software Licensing, Provisioning, and Delivery.

"As a result, expect the rise of new software business models that align more closely with business outcomes and customers' experiences. Customers should expect to see models that enable access to and consumption of applications when and where they want. Pricing will scale up or down according to consumption or need, allowing customers to pay only for what they use."

Additional IDC analysis shows that the third platform makes possible a broad proliferation of two important, value-generating overlays: big data analytics and social technologies.

The research also indicated that most net-new commercial applications - as much as 82%, according to IDC - are being built specifically for cloud delivery in 2013. By 2016, nearly $1 of every $6 spent on packaged software and $1 of every $5 spent on applications will be consumed via the software-as-a-service (SaaS) model.

"Customers want access to positive outcomes, and subscription pricing has proven to be a better means of facilitating this access than the perpetual license model," IDC said.

Start-ups are not the only businesses offering subscription license models. Some 16% of the top 100 software vendors have more than 50% of their revenue coming from subscription and virtually all software vendors are at various stages of transition in how they build, sell, and deliver their products as services hoping to generate more revenue and improve customer satisfaction.

"Disruption rarely, if ever, leads to wholesale replacement," cautions Konary. "IDC believes that while packaged software applications are being slowly re-platformed for virtualised use on converged systems in data centres, they will be available for distributed client-server computing environments [the second platform], and they will be priced and licensed accordingly. These applications will just become less interesting than they once were, as software developers shift innovation to where the growth opportunity exists - the third platform."

Follow us to get the most comprehensive IT business news delivered fresh from our social media accounts on Facebook, Twitter, Youtube, and listen to our Weekly Podcast. Click here to sign up for our weekly newsletter on curated technology news in the Middle East and Worldwide.