Forrester on App Internet 2011
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Transcript of Forrester on App Internet 2011
© 2011 Forrester Research, Inc. Reproduction Prohibited1 © 2009 Forrester Research, Inc. Reproduction Prohibited
The Mobile “App Internet” Recasts The Software And Services LandscapeEllen Daley, Vice President, Practice Leader
Based on research from John McCarthy, Thomas Husson, Charlie Golvin
© 2011 Forrester Research, Inc. Reproduction Prohibited2
© 2011 Forrester Research, Inc. Reproduction Prohibited3
Agenda
What does the “App Internet” future hold?
Where are the opportunities for Indian firms?
How to grab the opportunity?
© 2011 Forrester Research, Inc. Reproduction Prohibited4
The perfect storm of ‘networked innovation’ replaces serial waves of change
Minis PCs
Cloud
Mobile
Social
Smart
Analytics
Internet
Enterprise apps
© 2011 Forrester Research, Inc. Reproduction Prohibited5
The “App Internet”
“The App Internet is an application architecture of native apps on a
range of smart mobile devices, cars, televisions, and appliances
linked to a broad array of cloud-based services to provide a
optimized, context-rich experience anytime, anywhere . . .”
Source: February 28, 2011, “Mobile App Internet Recasts The Software And Services Landscape” Forrester report
© 2011 Forrester Research, Inc. Reproduction Prohibited6Source: Proxima Mobile
(http://www.proximamobile.eu/article/isommeil)
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This is not a technical discussion!App Internet will convert predominantly search behaviors to a subscription channel model.
Injected by
cloud services
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Who is ready for this innovation?
Base: *Base: 2,245 US adults (18+) who own a mobile phone Source: North American Technographics Survey, Q2 2010 (US, Canada)
Base: 18284 European adults (18+) who own a mobile phone Source: European Benchmark Technographics Survey, Q2 2011
"Which of the following activities do you do on your primary cell phone or handheld wireless
device AT LEAST MONTHLY?"
SMS Check news,etc. Send/receive work email
Download applica-tions
Access operator por-tal
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%Metropolitan India US Europe
In the U.S. 33% of smartphone
users download apps.
Base: 1,729 Indian adults (18+) who own a mobile phone Source: Asia Pacific Technographics Survey, Q2 2010
© 2011 Forrester Research, Inc. Reproduction Prohibited9
“As-A-Service” changes the economics of the tech industry
Year 1 Year 2 Year 3 Year 4 Year 50.0
0.2
0.4
0.6
0.8
1.0
1.2
1.4
CIOs in-house budget
"As-a-service" econom-ics
At 35-40% off, CFO starts
calling the shots
At 35-40% off, CFO starts
calling the shots
Source: Forrester Research, 5/2011
India (after china) prioritizes cloud
the most (56% call it a top mgmt priority)
geographically
© 2011 Forrester Research, Inc. Reproduction Prohibited10
The App Internet Market is big (by 2015):- $37b market for apps- $13.2b market for app services
Source: Mobile App Internet Recasts Software and Services Market, Forrester Research 2011
© 2011 Forrester Research, Inc. Reproduction Prohibited11
Traditional suppliers are not innovating fast enough to meet rising expectations
Business & Consumer
Expectations rise
‘Traditional’ Tech Industry Supplier Innovation
New Supplier Entry
© 2011 Forrester Research, Inc. Reproduction Prohibited12
The problem is not one of opportunity, but distribution.Applications are the currency of the tech industry
Customer
Cloud Vendors
Telcos
ISVsServices Vendors
Devices Vendors
AppsApps
AppsApps
Apps
© 2011 Forrester Research, Inc. Reproduction Prohibited13
Attributes of successful young players in this market
Partner with those that can provide the cross-channel experience
A product development model, (for services as well as ISVs)
Integration of a cross-section of skills:
– Gaming
– UI/UXP
– Legacy enterprise apps
– Agile
– Domain expertise
– ‘smart’ experience
© 2011 Forrester Research, Inc. Reproduction Prohibited14
The overall implications
The chief mobility officer (CMoO) emerges as a new buyer.
Telcos use apps as their currency to reduce churn
Mobile apps drive the intersection of product development and IT services.
Developers potentially turn to crowdsourcing for modules.
The tech sector sees the elimination of the business/consumer.
Forget smart city and smart grid — smart consumer devices & apps will be
the bigger market.
Enterprise mobility will be propelled by consumer market.
© 2009 Forrester Research, Inc. Reproduction Prohibited
Thank you
Ellen Daley+91 9818632652
www.forrester.com
© 2011 Forrester Research, Inc. Reproduction Prohibited16 © 2009 Forrester Research, Inc. Reproduction Prohibited
Appendix/ Back-up slides
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India and other economies leapfrog in cloud.
“Which of the following initiatives are likely to be your IT organization’s top IT management priorities over the next 12 months?”
Forrsights Budgets and Priorities Tracker Survey, Q2 2011
“Create a comprehensive cloud/as-a-service adoption/migration plan”
UK (n=199)
US (n=1,015)
Japan (n=114)
Russia (n=155)
Germany (n=186)
All respondents (n=2,741)
France (n=177)
Brazil (n=146)
India (n=144)
China/Hong Kong (n=184)
32%
34%
36%
37%
38%
38%
39%
45%
56%
58%
High and Critical Priority
Base: IT executives and technology decision-makers who selected ‘High’ or ‘Critical Priority’
© 2011 Forrester Research, Inc. Reproduction Prohibited18 © 2011 Forrester Research, Inc. Reproduction Prohibited
2010 2011 2012 2013 2014 2015$0
$10,000
$20,000
$30,000
$1,900
$4,500
$9,400
$14,800
$22,500
$29,400
$300 $1,100$2,300
$3,800$5,700
$8,100
App sales for smartphones App sales for tablets
Even at $2.00/app, it’s a huge market.And cloud services on the back end fuel it further
Worldwide sales of smartphone and tablet apps (US$ millions)
Source: February 28, 2011, “Mobile App Internet Recasts The Software And Services Landscape” Forrester report
© 2011 Forrester Research, Inc. Reproduction Prohibited19 © 2011 Forrester Research, Inc. Reproduction Prohibited
The specialized services opportunity is large from mobile app development services to SI work.
Source: February 28, 2011, “Mobile App Internet Recasts The Software And Services Landscape” Forrester report