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Business Impact of Managed Cloud Services

David H Deans

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Many industries are facing accelerating pressure for fundamental business process transformation -- including embracing digital business technology, in order to survive and stay competitive -- according to the latest market study by Gartner.

"Transformation remains a critically important phenomenon across all industries. Many industries will face intense challenges in 2014 and beyond, and will have no choice but to radically change their established business models," said Kimberly Harris-Ferrante, vice president and distinguished analyst at Gartner.

Last year saw many industry decision-makers focusing on adopting new technologies to improve business operations by addressing developments such as the convergence of social, mobile, cloud and Big Data.

Gartner believes that this trend is driven in part by the challenges of consumer empowerment and market commoditization, which in many ways are greater than in the past, and are particularly difficult for traditional enterprises to address.

Business leaders and CIOs must carefully assess their industry-specific strategic requirements, including the demands of consumers and business partners, to map out transformation plans based on new technology availability, consumer demographic or behavioral changes and market conditions.


Gartner's Top Industry Predictions for 2014 Include:
  • By 2016, poor return on equity will drive more than 60 percent of banks worldwide to process the majority of their transactions in the cloud.
  • By year-end 2017, at least seven of the world's top 10 multichannel retailers will use 3D printing technologies to generate custom stock orders.
  • By 2017, more than 60 percent of government organizations with a CIO and a chief digital officer will eliminate one of these roles.
  • By 2017, 40 percent of utilities with smart metering solutions will use cloud-based big data analytics to address asset-, commodity-, customer- or revenue-related needs.
  • By year-end 2015, inadequate ROI will drive insurers to abandon 40 percent of their current customer-facing mobile apps.
  • Full-genome sequencing will stimulate a new market for medical data banks, with market penetration exceeding three percent by 2016.
  • By 2016, 60 percent of U.S. health insurers will know the procedure price and provider quality rating of shoppable medical services in advance.
  • Through 2017, K-12 online education spending will increase 25 percent, while budgetary constraints will keep spending on traditional instructional categories stagnant.
  • By 2018, 20 percent of the top 100 manufacturers' revenue will come from innovations that are the result of new cross-industry value experiences.
  • By 2018, 3D printing will result in the loss of at least $100 billion per year in intellectual property globally.
  • By 2017, 15 percent of consumers will respond to context-aware offers based on their individual demographics and shopper profiles.
  • By 2015, 80 percent of life science organizations will be crushed by elements of big data, exposing poor ROI on IT investments.

"The pressures of consumerization continue to disrupt many enterprises, forcing them to change their traditional business processes and operational models," said Ms. Harris Ferrante. "The necessity to adopt digital business models transcends all industry verticals, and its diverse impacts are creating business opportunities that were not possible in the past."

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David H. Deans is the Managing Director at the GeoActive Group. He has more than 25 years of experience in the Technology, Media and Telecom sectors.