This is how Malaysia's ICT industry will transform in the next three years: IDC

The top emerging technologies and market shifts are picked out in this new IDC survey of Malaysia's operating environment.

By AvantiKumar
March 8, 2017


Looking into the future (GraphicStock)

Photo (GraphicStock) - Looking into the future

 

  Following the recent leadership interview covering Malaysia's 2017 industry expectations with IDC Malaysia country manager Vijay Sundararaman, the ICT analyst company's team has now released its formal predictions for 2017 and beyond.
 
Many other industry leaders in Computerworld Malaysia's 2017 insights special [What's really in store for Malaysia's IT industry?] also discussed the disruption of local industries by emerging technologies among other drivers.
  
Pranabesh Nath (pic below), research director, IDC Malaysia, also noted the market changes that will drive the future of the Malaysian ICT industry in the next one to three years.

Pranabesh Nath_IDC Malaysia Research Director

"Drawing on IDC's industry-defining research and insights, the predictions explore the user trends and vendor strategies that will redefine the ICT market, redistribute market share in Malaysia, and help leaders capitalize on emerging market opportunities and plan for future growth," said Nath.
  
Malaysian organisations face the need to transform while steering past heightening economic pressures in 2016, he said.
 
  DX momentum

"Enterprises across diverse industries such as retail, manufacturing, construction, finance, and oil and gas are at various stages of exploration and adoption of new technologies," said Nath.
 
"Some enterprises are focused on internal transformation, where technologies such as enterprise mobility, data warehousing, and security technologies remain highly relevant," he said.
 
 "Others, however, want to focus more on building new external applications and services, using tools such as augmented reality/virtual reality," Nath said.
 
He said IDC expected that digital transformation (DX) will reach "macroeconomic scale over the next three to four years. This is changing the way organisations operate and is reshaping the Malaysian economy, leading to the dawn of the 'DX Economy'."
 
  Analysts speak
 
 These are some of IDC Malaysia analyst team's top predictions across major trends:
 
- Big Data in the Cloud: By 2018, new cloud pricing models will emerge for specific analytics workloads, where the growth for cloud analytics solutions will be three times more than on-premises analytics solutions.

Quan Xiong Ng, associate market analyst, IDC Malaysia, said: "According to IDC Asia/Pacific's Software Study 2016, a total of 42 percent respondents from Malaysian organisations are planning to deploy cloud-based analytics software in the next 1-2 years while some have already deployed analytics solutions. IDC foresees that Malaysian organisations will continue to shift more critical applications into the cloud platform, the demand for cloud analytics will grow exponentially."

- Enterprise Mobility & Device Deployment Models: By 2019, 30 percent of unregulated enterprise organisations will offer a choose-your-own-device (CYOD) program for eligible employees as their default device policy.

According to IDC Asia/Pacific's Enterprise Mobility Survey, bring your own device (BYOD) has become the primary choice in organizations, with 31 percent preferring this approach - a stark contrast from 2015 at 19 percent.

Jensen Ooi, market analyst, Client Devices, IDC Asia/Pacific, commented: "Interestingly, 19 percent pointed to a CYOD model already in place, compared with just 14 percent when the same survey was conducted in 2015, indicating a growing interest among organizations to strike a balance between employee choice and IT manageability."

- Internet of Things: By 2018, connected vehicles, insurance telematics, personal wellness, and smart buildings will be four Internet of Things (IoT) use cases in the spotlight across Malaysia, accounting for US$700 million in spending.

IoT investment trends, attitudes, and use cases vary across regions, strongly driven by different business structures and scenarios, regulations, and innovation levels. Nevertheless, the four use cases that will be among the fastest growing worldwide in 2017/2018 are connected vehicles, insurance telematics, personal wellness, and smart buildings. These use cases show rosy expectations in Malaysian markets, accounting for US$700 million in forecast spending in 2018.

Nikhil Batra, research manager, Telecommunications, IDC Asia/Pacific, said: "This use case will take centre stage in 2018 as heralded by the high concentration of players from different sectors (e.g., automotive manufacturing companies, IT players, utilities) progressively characterizing the market."

"In comparison, insurance telematics, which gives insurance companies the possibility to monitor drivers' behaviour and adjust premium calculation accordingly, will continue its growth, slowly becoming the new normal for players in the sector," he said.

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