Turbotodd

Ruminations on IT, the digital media, and some golf thrown in for good measure.

The IM Software Future’s So Bright

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It was one of those rare sports weekends: All my teams won!

The Longhorns beat Mizzou, the Cowboys beat Atlanta, and the Yankees took the ALCS.

I should come to Vegas more often…I get good odds here.

Of course, wagering on the past is just Monday quarterbacking, and here at the Information on Demand Conference, it’s the future most folks are concerned about.

IBM information management (IM) market insight analyst Stacy Novack held a session yesterday to give us the lay of the land, and the future seems to be so bright for IM software that you gotta wear a two-phase commit.

First, in broad strokes, Stacy indicated that the IM market is expected to be $237B next year, with software being about $63B of that (the other slices are services and hardware).

Though the clouds are starting to lift on IT budgets everywhere, their recovery will be tied to continued GDP improvement, but Novack expects relative resilience in software spending as companies prepare for the uptick.

The recovery is expected to vary widely by region (ranging from -2.0 to +2.0) in 2010, and the information management software opportunity is expected to grow twice that in “growth” countries versus the G7.

Some CAGR expectations: 5.9% from 2009-2013 for the overall IM software market, with analytics applications leading the pack at an expected 7.8% (some $9B in 2010).

Business intelligence isn’t far behind at 6.0% (~$12B next year).

And there are big picture trends and forces shaping the climate: Global recession has led to cost cutting, govt stimulus, the “hyperconnected” enterprise, corporate social responsibility, and, ultimately, the drive for more security and transparency.

On the tech front, factors include continued proliferation of data, content, and information — Did you know the digital universe, by 2011, is expected to be 10 times the size it was in 2006??

And that’s not even yet counting last night’s killer live concert by U2 on YouTube!

Seventy percent of that digital universe is created by individuals (you know, like Larry from down the hall who likes to take pictures of the stuff growing on the office coffee pot and post them on Facebook), yet enterprises are responsible for the security, privacy, and compliance of 85% of that content.

Shhh, nobody tell the lawyers!

Many companies are increasingly seeking information-led innovation that treats information as an asset, not a liability, but there are challenges: need to improve the levels of integration, analytics capabilities, the breadth of access, the currency of information…there are still substantial gaps.

But the opportunities are prevalent and often immediate: Information management software capabilities are well positioned to address immediate and emerging business challenges.

Though cost reduction initiatives brought about by the downturn continue to be a priority, many organizations realize effective analytics capabilities can help drive short-term results, even as those organizations prepare for longer term IT investments.

To take advantage of those, IT leaders need to translate those solutions so they meet the needs of business decision makers, and work to link those shorter-term investments to longer-term infrastructure visions.

IBM’s Global CIO study found that CIOs spend 55% of their time on activities that spur innovation and help the business, including leveraging analytics to gain competitive advantage.

There are good odds that your time spent here in Vegas at IOD will help you along the way.

Now, if you’ll excuse me, I have to go find some breakfast…along with 6,000 of my new closest friends!

Written by turbotodd

October 26, 2009 at 2:01 pm

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