1. ICT Outlook 2016
Abhishek Chauhan
Senior Director, Digital Transformation Practice
January 2016

2. Key events that shaped 2015
2
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3. Movers & Shakers of 2015
3

4. #1 Services to drive spending in Internet of Things
4
Growth rate
26.8%
CAGR 2015-2020
Total spending
US$24.2B
2015
Total spending
US$79.3B
2020
-
10
20
30
40
50
60
70
80
90
2015 2018 2020
Bn
APAC IoT Spending
Services
Hardware
Software

5. Major IoT Initiatives
5

6. Preparing for the Next Wave of ‘Cloudification’
6
2010
‘Cloudification’ of IT
2016
‘Cloudification’ of OT

7. #2 Security paradigm shifts to physical domain
7
2014 2015
0%
10%
20%
30%
40%
50%
60%
70%
80%
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Cyber Crime Cyber Espionage
Cyber War Hacktivism
PercentageofHighProfileAttacksRecorded(2014)
0%
10%
20%
30%
40%
50%
60%
70%
80%
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Cyber Crime Cyber Espionage
Cyber War Hacktivism
PercentageofHighProfileAttacksRecorded(2016)
Source: Frost & Sullivan, Hackmagaddeon

8. #3 Data Center construction frenzy
8
Total raised floor space expected to double in 10 years.
Factors driving building frenzy:
Strong economic growth – China,
India and Indonesia.
Global players expanding in APAC
– AWS, Equinix, DRT, Microsoft,
etc.
Local players gaining reckoning,
especially in China, India, and
Indonesia.
New age businesses driving strong
adoption.
110.8
204.6
70.8
181.4
2015 2025
Captive Outsourced
Asia-Pacific Data Center Space Forecasts
(mn sq. ft.)
181.6
386.0

9. Data Center building activity heat map
9
Australia & New Zealand
APAC Hyperactive
Gaining Momentum
Limited Activity

10. #4 Product as a Service Model
10
>70%of fortune 500 companies will operate
product-as-a-service business models
15%
13%
8%8%
8% 3%
Energy
Healthcare
Telecommunication
Aviation
Electronics
Automotive

11. Examples of Product as a Service business model
11
Ownership Access
GE’s fuel-use data analytics
Shared-usage model – New
mobility services .
Allows physicians to monitor
patients’ devices.
Customers can improve their
game performance while
Babolat receives useful data to
improve product quality.
Industry Company Product Service
Aviation
GE
(GE Aviation)
Manufacturer of aircraft
engines and systems
Value added services
such as Flight Efficiency
Services through data
analytics
IT HP Hardware provider
Separation of Products
and services business
Automotive
Daimler
(Car2Go)
Manufacturer of cars
Carsharing service on a
pay-per-usage system
Toyota (Dash)
GM
(RelayRides)
Healthcare Biotronik
Medical device
manufacturer
Health-monitoring
system
Consumer
goods
Babolat (Play
Pure Drive)
Fitness equipment
manufacturer
Smart technology
allows data analytics
and value added
services
B2B
B2C
Improved focus on services

12. Digital Transformation Leading to New Business Models
12
Source: Frost & Sullivan
Enable
Utilities
Automotive
Healthcare
Building Management
Manufacturing
Urban Management
Smart Grids
Connected Cars
Connected Health
Smart Buildings
Smart Manufacturing
Smart Cities
Transform

13. 2016 Predictions
13
1 Industrial IoT cloud takes off
2 Security moves to Physical domain
3 Datacenter building frenzy accelerates
4 Product as a Service model emerges across industries
5 Digital Transformation leading to new business models

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