2009 was a tough year for the IT industry, largely as a result of the global economic downturn, which had a direct impact on enterprise IT spending. Like others, the IT industry faced lower sales, cost cutting and job losses. Thankfully, the global economy appears to be heading out of recession, which is good news for the IT industry, as history has shown that the economy and enterprise IT spending are closely tied. But what does 2010 hold for technology vendors? Are enterprise IT budgets going to increase? Which areas of the IT industry will be most attractive to enterprises? The Enterprise Technology Trends report addresses these questions through primary and secondary research into the enterprise IT market. Exclusive research from Business Insights gives insight into enterprise IT budgetary changes in 2010 and the broader business trends underpinning enterprise IT decisions next year. The remainder of the report examines 10 key industry trends to watch next year. 2010 may not mark a return to the freewheel spending of three to five years ago, but it still promises to be an interesting year for the IT industry.

Key features of this report

• Independent survey data of CIOs from organizations working in different vertical sectors and geographic regions
• Secondary research from analyst sources, annual reports, company materials and press articles
• Breakdown of enterprise IT spending forecast for 2010 by geography, vertical and sizeband

Scope of this report

• Gain insight into the 10 key technology trends affecting enterprise IT spending in 2010
• Identify key areas of innovation and new market opportunities in 2010
• Tailor sales and marketing messages to meet enterprise expectations
• Identify competitive threats

Key Market Issues

1. Mashups/DIY IT: By 2013, Business Insights estimates that the market for enterprise mashups will be worth $1.74bn, driven by the growing involvement of major software players, evolving market definition and knowledge about mashups, emerging standards, increased uptake of SOA and cloud computing, and the recession.
2. Virtualization: In 2010, virtualization will continue to to extend further into the enterprise with desktop virtualization and application virtualization set for rapid growth.
3. Collaboration: The launch of Google Wave in 2009 could spur the adoption of enterprise collaboration 2.0 platforms and threaten the long-term viability of traditional productivity tools and applications.

Key findings from this report

1. 34% of organizations are increasing their IT budget in 2010 – however, this increase is less than we have seen in previous years.
2. The IT spending outlook for North America is more bullish than it is for Europe: 60 per cent of organizations expect IT budgets to improve in 2010.
3. The three fundamental trends underpinning IT investment in 2010 are: cost cutting, doing more with less and working smarter.
4. Desktop virtualization will move towards mainstream adoption in 2010, and by 2011 as many as 16 million desktops could be virtualized.

Key questions answered

• What technologies are enterprises investing in next year?
• What’s the enterprise IT spending outlook for 2010?
• Which regions / sizeband / verticals will be increasing investment in IT in 2010?

TABLE OF CONTENTS

Chapter 1 Introduction

What is this report about?
Who is this report for?
Methodology

Chapter 2 Enterprise IT investment in 2010

Summary
Introduction
IT spending in 2010
The bigger picture
Enterprise spending patterns in 2010
Factors affecting IT purchasing decisions
The vertical outlook for IT investment in 2010
The outlook for IT investment in 2010, by geography
The outlook for IT investment in 2010, by sizeband
The underlying trends driving technology investment in 2010
Cutting costs
Doing more with less
Working smarter
Outsourcing core processes

Chapter 3 Do It Yourself IT

Summary
Introduction
The rise of DIY IT
Defining mashups
The wider trends underpinning growth in DIY IT
Increasing efficiency
Cost Saving
Simplification
Mobility / ubiquitous access
Collaboration
Looking outside the enterprise
Consumer-led innovation
Green IT / sustainability
Market development
Market drivers
Market opportunity
Impact on vendors
Barriers to future growth

Chapter 4 Virtualization moves towards mainstream adoption

Summary
Introduction
Emerging areas of virtualization
The bigger picture
The wider trends underpinning global growth in virtualization
Increasing efficiency
Cost saving
Simplification
Convergence
Mobility / ubiquitous access
Looking outside the enterprise
Consumer-led innovation
Green IT / sustainability
Market development
Desktop virtualization set for rapid growth in 2010
Application virtualization will also see widespread adoption in 2010
Impact on vendors
Competition heats up in the desktop virtualization space
Microsoft and VMware square up for battle in application virtualization
Virtualization management: a future growth area?
Barriers to growth
VDI isn’t necessarily suited to large-scale deployments
Lack of standards interoperability could limit growth
Virtualizing the desktop and application delivery has different challenges to server and storage virtualization

Chapter 5 Collaboration is big business in 2010

Summary
Introduction
Enterprise collaboration: the story so far
The bigger picture
Collaboration trends in 2010
Cloud computing and SaaS provide a low-cost way of trying out collaboration services
Could the collaboration platform become irrelevant?
Impact on vendors
Google poses a disruptive threat to the status quo
Incumbents embrace enterprise collaboration 2.0
There’s all to play for in 2010
Vendor recommendations

Chapter 6 Securing the cloud

Summary
Introduction
Cloud computing
The bigger picture
Enterprise concerns
Security and shared resources
Lack of security in the cloud
Impact on vendors
Vendor actions
Recommendation 1: publish security audits
Recommendation 2: go beyond SLAs
Recommendation 3: guarantee security
New market opportunities
The consequences of doing nothing

Chapter 7 The smartphone battle for the enterprise heats up

Summary
Introduction
The past, present and future of smartphones
The bigger picture
The market for smartphones is dividing
Prosumers influence enterprise smartphone buying decisions
Further convergence between smartphones and netbooks
The market for business-focused applications takes off
Impact on vendors
RIM’s market share under threat
Apple iPhone breaks into the enterprise
The rise of Android-based devices
What about Nokia?
Where next for Windows?

Chapter 8 Technology for free

Summary
Introduction
The history of ‘free’
The bigger picture
Market outlook
The growth of ‘free’ software
Microsoft Office 2010
Open source continues to build momentum
Impact on vendors
Vendors compete on price for productivity apps
Enterprises embrace hybrid buying strategies
The cost of ‘free’
The downward spiral to commoditization
Enterprise concerns

Chapter 9 Customer service 3.0

Summary
Introduction
The bigger picture
Market development
Listening to customers
User testing and focus groups
Online problem resolution
Impact on vendors
Expansion of product portfolios into customer service suites
There is everything to play for in a diverse vendor landscape
Competition comes from several quarters:
Challenges to market take-up in 2010
People and processes
Technological issues
Vendor recommendations

Chapter 10 Videoconferencing market ripe for a shake-up

Summary
Introduction
The ‘next big thing’ technology
The bigger picture
Market opportunities
Asia
Healthcare
Developments in the videoconferencing market in 2010
Enterprise videoconferencing systems move into the mainstream
3D videoconferencing around the corner?
Impact on vendors
Market consolidation
Skype: a threat to videoconferencing vendors?

Chapter 11 Security remains high on the corporate agenda

Summary
Introduction
The enterprise security outlook in 2010
The bigger picture
Trends within enterprise security in 2010
Security vendors capitalizing on a security gap in the SMB market
Securing the extended enterprise
Managing the security infrastructure more efficiently
Continuation of the security-as-a-service trend
Web 2.0 still causes security headaches

Chapter 12 New computing interfaces

Summary
Introduction
The rise of alternatives to the desktop
The bigger picture
Impact on vendors
Competition in the desktop space drives market innovation
Diversification in the touchscreen market
Desktop virtualization drives demand for innovation in thin clients
Netbook growth threatens desktop market hegemony
The ones to watch
The ones causing market excitement
Barriers to adoption
Index

List of Figures

Figure 2.1: Changes to enterprise IT budgets in 2010
Figure 2.2: Top business priorities for IT investment in 2010
Figure 2.3: External forces have a high impact on enterprise IT spending
Figure 2.4: Enterprise IT buying priorities
Figure 2.5: The business priorities driving IT investment in 2010
Figure 3.6: Enterprise mashup market development phases
Figure 3.7: What end-users want from an enterprise mashup vendor
Figure 4.8: The application virtualization stac
Figure 4.9: Virtualization adoption
Figure 5.10: Enterprises expect collaboration technologies to have the biggest impact on their business in 2010
Figure 5.11: The global enterprise collaboration applications market growth, 2007-2013
Figure 6.12: Cloud computing market forecast, 2008-2012 ($bn)
Figure 6.13: Enterprise security concerns from cloud computing
Figure 7.14: Smartphone shipments by OS, 2008-2014
Figure 8.15: Open source software market size and forecast, 2006-2011 (analyst consensus)
Figure 10.16: Videoconferencing is high on most enterprises’ agendas
Figure 10.17: Transformations in communications have driven the most change within organizations
Figure 11.18: Global enterprise security market size, 2006-2010
Figure 12.19: Microsoft Surface in action at AT&T

List of Tables

Table 2.1: IT spending forecast for 2010, by region (% respondents to Business Insights survey)
Table 2.2: IT spending forecast for 2010, by sizeband (% respondents to Business Insights survey)
Table 4.3: The potential savings from desktop virtualization
Table 6.4: Cloud computing taps into many business goals
Table 7.5: Top business apps on iTunes (US)
Table 7.6: Smartphone shipments by OS, 2008-2014 (000’s)
Table 8.7: Cost saving is the primary motivating factor behind IT spending decisions in 2010 (1 = Low impact – 4 = High impact)
Table 10.8: The potential CO2 savings from using videoconferencing are not as great as those generated by other energy-saving initiatives
Table 10.9: Videoconferencing vendor landscape (worldwide unit shipments for H1, 2009)
Table 11.10: Global enterprise security market size, 2006-2010
Table 12.11: Touchscreens have yet to break into the enterprise (impact on organization indicated by 1 = Low impact – 4 = High impact)