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TCS Shows Continued Momentum in Continental Europe | Sherpas in Blue Shirts

By | Sherpas in Blue Shirts

I recently attended TCS’ analyst summit in Paris. In this blog I examine the objectives that it set out at the summit and its latest financials, focusing on TCS’ investments and localization strategies for growth in Europe.

Q3 2015

TCS’s push into continental Europe continues apace. Its Q3 results for the financial year 2014/15 (for period ended December 31 2014) shows revenue growth in constant currency (CC) of 6.6% in the region. The growth outpaced that of the U.S. at 2.1% CC, and the UK which declined by 1% CC.

Group-wide revenue in Q3 was US$3.93 billion, flat sequentially, up 2.5% CC, and up 14.3% year on year.  The operating margin at 27% was marginally higher than Q2.

Investments in Europe

TCS has been targeting growth in major European countries such as France and Germany for some time. It has been investing in Europe, e.g., acquiring Alti, for €75 million in 2013. Alti, a French IT services and consulting business had annual revenues of €126 million at the time of the acquisition. It has a strong presence in the banking, financial services and insurance (BFSI) as well as luxury, manufacturing and utilities sectors. Following Alti’s integration, today BFSI accounts for nearly half (49%) of TCS France’s revenue. Alti also added 1000 consultants to TCS ranks.

Other TCS investments have included:

  • The opening of a SAP innovation center in Paris in May 2014
  • Hiring of local staff
  • Investment in local facilities such as Lille and Poitiers.

TCS is aiming high in Europe. In France, Alti’s French market presence has already helped and led to major contract wins such as a GDF Suez contract, won in March 2014.

Localization

One aspect of TCS’ strategy for growth in Europe is its localization program. It is investing in more locally hired staff and is enhancing training and induction programs. For example, it has recruited 500 staff in France since July 2013.  A local presence would help TCS allay concerns over offshoring, increase customer intimacy and allow it to tap into local knowledge and specialist skills.

Other measures include a focused programme on employer branding and a recruitment campaign to fast track local graduates. This is needed if TCS is to compete for top talent against bigger and better known brands in Europe.

Contract wins

Major contract awards that are helping TCS grow in continental Europe include:

  • A multi-million, multi-year award by GDF Suez, won by Alti in March 2014. The deal pans across France, Belgium, and the Netherlands and is to rationalize and standardize CRM and billing applications
  • A major IT infrastructure contract by Germany’s Bombardier Transportation awarded in October 2013. The contract includes Remote Infrastructure Management (RIM), managing newly commissioned data centers and SAP Basis support.

UK Woes

The picture is a little different in the UK where Diligenta policy run-offs continue to drag on revenue growth despite other major contracts such as the UK government’s NEST and the Disclosure and Barring Service contracts.

Diligenta revenue has declined for the past two/three quarters and is expected to continue to decline in the next two/three quarters also. Revenue from the new multi-million pound, multi-year contract with Friends Life, for its International operation, should start to make a difference soon. Friends Life is an existing client. Awarded in 2011, its closed book administration contract alone is worth £1.4 billion over 15 years to Diligenta. There is a potential risk to this deal since Aviva agreed to acquire Friends Life in December 2014. Aviva has an ongoing contract and a long- term relationship with WNS.

Excluding Diligenta, UK revenue grew but no growth figures were provided for Q3. In Q2 growth excluding Diligenta was 4.3% CC.

The Road Ahead

The investments and localization strategies are essential for TCS to succeed in Europe. Service providers with local/nearshore delivery capabilities will always find it easier to grow in continental Europe and this is true in many countries such as Switzerland, France, and Germany.

TCS Europe

European investments and localization raise the issue of higher costs and the effect on the bottom line. TCS will have to draw on its productivity methodology, automation and other capabilities to ensure that margins remain high as it grows its local presence in Europe.

TCS also has to steer a path to growth through economic uncertainty in Europe. There is the spectre of a Greek exit from EU monetary union and default on its debt, a declining Euro against other major currencies and deflation.

The macro-economic conditions could create as many opportunities as threats in the market, given that uncertainty and the tightening of enterprise budgets often drive outsourcing and change and transformation programs.


Photo credit: Flickr

Obama Goes to India | Sherpas in Blue Shirts

By | Sherpas in Blue Shirts

What could be the implications for global services from President Obama going to India?

It’s clear what the United States wants. We want to sell technology and nuclear equipment to India. And the U.S. wants to move India out of the China camp geopolitically into the U.S. camp. The U.S. wants trade and joint efforts in the areas of climate change and energy.

What does India want? They’re also focusing on trade. One of the key flagship industries for India has been outsourcing and global services. Of particular interest is protecting the spectacular growth of the Indian heritage firms such as Infosys, TCS and Wipro and allowing the next generation to flourish. In that important area, what could they ask of Obama?

It’s clear that with two years left in Obama’s term without a Democratic congress, there is a limit to what President Obama can agree to. But there is something big he could agree to that’s within his administrative powers. He could agree to direct the U.S. immigration service to be more flexible in how they interpret the visa laws, specifically around H-1B and L-1 visas.

Obama goes to India

As written, the immigration laws include a great deal of ambiguity, giving much discretion to the immigration services on whether to grant visas and the degree of freedom that companies or individuals have in what work they can do under those visas.

This is an area that is clearly within Obama’s ability to affect, and it would be a substantial win for India. So, Mr. Modi, I don’t know if you have asked for this – but you should.

And in no way would such a move hurt the U.S. It would not only help India but also help the U.S. economy with competitiveness. There simply isn’t enough U.S. tech talent and we have to rely on Indian talent if we’re going to be competitive in driving cloud and other new service models. The agreement could even be constructed to fit in with Obama’s ongoing pressure on Republicans to reform immigration laws.

So it’s a win for both countries.

The Innovation Dance Floor is Getting Crowded | Sherpas in Blue Shirts

By | Sherpas in Blue Shirts

The innovation dance floor is getting awfully crowded with a lot of eager participants. CIOs want to re-establish their traditional role of custodian of technology driving innovation. CMOs wants to be at the forefront of using innovation to change the customer experience and outreach. Data scientists are using the new analytics tools and want to participate in innovation strategy. And as I blogged recently, an IBM study found even chief purchasing officers are making a bid to join the innovation party. Unfortunately, they’re all joining the product managers, who are historically in a slow dance; so not only is the dance floor getting more crowded, but there are also a lot of different beats that they’re dancing to.

Each of these positions has its own point of view, its own agenda, and sees innovation differently. On the plus side, this provides for a rich mix of opportunity. But on the downside, few innovative ideas have come out of committees.

The IBM study indicates that CPOs are attempting to become more strategic and influential and they believe they are more critical to the enterprise. So by necessity, they have to better align with the corporate strategy and therefore want to participate in developing strategy.

I think it opens up even bigger questions:

  • In what areas will they seek to set strategy?
  • Do CPOs have the right background and perspective to do this?

Particularly in the area of services, which are an important ingredient to a change strategy and require deep understanding of the business and how to shape or manipulate the components to create a differentiated position as an advantage, CPOs may struggle as the champions of change.

Enterprises need to protect the innovation strategy

My view is that CPOs are not the right people to influence innovation. Their idea of innovation is do it at half the price rather than doing something different. A data scientist, for example, can get at a certain kind of innovation because they bring a fresh, different capability to the table. I don’t see purchasing bringing something fresh and different.

So this poses some very significant questions to the enterprise:

  • How do you allow for innovation?
  • Who do you want driving it?
  • How do you protect innovation from amateurs who may not be helpful?

Problems for service providers

With purchasing and other departments trying to crowd onto the innovation dance floor, service providers wanting to bring new innovative ideas or capabilities will have to navigate a gauntlet of powerful stakeholder groups. It certainly makes for an intriguing tango.


Photo credit: Piotr Pazola

Procurement Ups Its Game | Sherpas in Blue Shirts

By | Sherpas in Blue Shirts

A recent IBM study indicates that purchasing is attempting to become more strategic. It’s a very intriguing study. It shows that purchasing is not only trying to extend its influence but also recognizes some of its shortcomings – notably that it historically has been a tactical vehicle that deals with the simple execution of attempts at driving price down and is less adept at supporting transformational agendas that require fitting into a strategic plan.

As procurement garnered more and more influence across the services space, they often failed to understand the quality and strategic implications of the behavior that they drove. Their influence in driving down cost assumes that all solutions are equal and buyers can discriminate against them only based on cost. This results in sometimes optimizing for lower unit cost but higher total cost and at other times developing solutions that don’t meet business requirements as well as they could.

For example, they give less weight to a provider’s ability to drive transformation and more weight to the pricing. This sets up a situation where often the opposite happens. The buyer selects a lower-priced vendor that is less capable of driving transformation, which results in higher total cost and a less-effective implementation. Look at any ERP implementation if you want to see an example of this.

In attempting to step up to a more moderate strategy and even shaping and designing strategy in some instances, as the study points out, chief purchasing officers attempt to deal with one of their most vocal criticisms – that all they focus on is price and they often don’t align well with business needs.

When the context of driving down the cost of a supply chain is important to strategy, it’s natural that CPOs become more influential. But in the area of services, where services are an important ingredient to a change strategy and require deep understanding of the business and how to shape or manipulate the components to create a differentiated position as an advantage, CPOs are likely to struggle as the champions of change.

In the work we’re doing at Everest Group, we’re seeing business executives outside of purchasing starting to push back on purchasing to get them to stay in their swim lanes. They have become a very powerful entity in many organizations, but they’ve started to dictate in areas that are necessarily the provenance of those who drive strategy.

This new study indicates that CPOs are starting to recognize that as their influence has grown, their activities cast a much longer shadow and are more critical to the organization. By necessity, they must better align themselves with corporate strategy. The better aligned with the strategy they are, the more impactful they can be. This naturally guides them to want to be an active participant at the table where the business develops the strategy so that they can better align with it.

There is question about whether or not they will be allowed full access to those discussions or whether, like their companion the CIO, their influence will be turned back to be more and more tactical.

The Vexing Aspect of Service Delivery Automation | Sherpas in Blue Shirts

By | Sherpas in Blue Shirts

The advantages of service delivery automation add up to significant value realization. Unfortunately, it’s not a one-time step change. Automating is a continuous shift, and it’s never over. You first assess where it should happen. Then you get comfortable with the tools, get data on the process, get comfortable with the organizational implications of automation, then you learn from automating the functions. And then you do it again. And then you get comfortable with an even higher degree of automation. And then you do it again. And again.

Moving into an increasingly automated world is an ongoing journey – which poses a number of challenges for service providers.

Perhaps the most significant challenge is customers’ interests often are not aligned with their service provider. This quickly becomes obvious when the services are priced in FTEs. Automation reduces the quantity of FTEs, which means revenue loss for the provider. But if services are in a transaction-based model, automation dramatically reduces the cost of processing the transaction, and the customer wants a share of that cost reduction.

I think this is a startling challenge to the BPO industry. At a time when revenue growth is already slowing, if revenue drops proportionately with the level of automation (and it makes sense that it would), service providers not only won’t be able to grow revenues but will have to run very fast to stay even with their revenues.

Certainly automation won’t remove all people from a process; but more and more will be removed over time as the tools expand and become more mature and as companies become more comfortable in using the tools and as their learnings and the data from the tools allow them to continue to drive deeper levels of automation. So we can expect the effect of service delivery automation to increase over time.

Thus I believe we’re looking at substantial change and disruption coming to the services industry. And it’s not a one-time impact. It will be an ongoing impact.

As-a-Service Implications for IT | Sherpas in Blue Shirts

By | Sherpas in Blue Shirts

One of the great struggles in today’s enterprises is the ongoing shift of influence from the CIO community into other stakeholder groups. I’ve blogged about this before. An important aspect of this influence shift is the fact that IT has increasingly become unaligned with business goals. But the pendulum is now swinging back. The mechanism the pendulum is using is the as-a-service offer set.

During the recession, companies focused on cost reduction and operational excellence, and IT increasingly lost touch with the business. Purchasing departments focused relentlessly on driving up unit costs and countless operational process improvement vehicles to further lean out organizations. As a result, IT organizations became more efficient — but also less aligned with business needs.

Business users reacted by demanding greater focus on business outcomes and began taking things into their own hands and purchasing as-a-service offerings.

The as-a-service path is a reorganization

One of the benefits of the as-a-service model is that it creates a seamless linkage between business functionality and delivery. And it cuts through layered IT organizations, reorganizing according to business functionality.

As a service

The benefits that an organization extracts once it goes down this path is tight alignment by business functionality — close to functionality on demand — and far more flexibility. It enables focusing on the business impact of technology. Businesses can move more quickly and flexibly to adopt the functionality and also scale their consumption to usage.

The implications for IT are enormous in that it requires a rethinking of the classic IT functional organization, which has been in place for the last 15 years. It requires a reconceptualization of the following aspects:

  • How IT is organized
  • How assets, services and software are procured
  • How IT is measured and managed

The benefits of the functionality and scaled consumption to usage are extremely powerful and can only continue to reshape how IT is delivered. But the reconceptualization of IT is far from trivial. It is not just a new pose for IT. The as-a-service model fundamentally reshapes the IT philosophy on how it’s organized, procured, measured and managed.

Remedying IT Overcapacity | Sherpas in Blue Shirts

By | Sherpas in Blue Shirts

Too much. That’s an accurate assessment of IT environments in most, if not all, enterprises. They have more data center space than they need and more servers than they can use at any point in time. They have more software operating systems, middleware, and enterprise licenses than necessary. They also have more of the wrong resources and never enough of the right resources in application development and maintenance. The as-a-service movement seeks to address this, but the journey to get there isn’t as simple as it appears.

So how much overcapacity is present in enterprises? At every level there seems to be a 25-50 percent overcapacity in IT. Since IT varies from 1-7 percent of revenues, the 25-50 percent overcapacity is in the range of 40 percent overcapacity overall.

As we at Everest Group look at applying as-a-service principles into IT environments, we see an opportunity to remove 40 percent of the IT cost by eliminating the wastage in service capacity. But the journey to achieve this as-a-service cost benefit is neither quick nor easy.

Renegotiating enterprise licenses takes time and often requires waiting until they expire. Reconceptualizing the infrastructure and application support is also complicated and requires a resolute effort and substantial patience.

It can take a year to three years to complete the journey. But the benefits are very substantial, starting with a 40 percent cost reduction in IT — a heady prize for the journey. In a future blog I’ll discuss other benefits.

Global Services Trends and Tipping Points for 2015 | Sherpas in Blue Shirts

By | Sherpas in Blue Shirts

It’s the season when analyst/advisory firms flood the media their predictions and top-10 lists. One problem with those lists is the services world rarely has 10 things that are different from the year before. Another problem is we tend to hype new technologies and business models and make predictions about their impact in the next year, when in reality they take multiple years to validate and start to build traction. So rather than falling into this trap that I and others fall into every year, here are my thoughts on a few big secular services trends and their tipping-point positions.

Cloud

We’re over the tipping point here. As I blogged previously, the cloud experiment is over. The last three years have been a grand experiment in examining cloud and the cloud products family. 2015 will see enterprises increasingly planning and implementing new functionalities in the cloud environment.

Labor arbitrage

We’re now atop an inflection point for change in the labor arbitrage market. It’s alive and well and still powerful, but in 2014 we saw value propositions that are dominantly arbitrage based diminish in effectiveness. We also saw the growth areas increasingly shifting to an “arbitrage-plus” model in new areas. The implications are that arbitrage-based offerings will be less effective and their growth rates will continue to drop.

2015 will be a year in which provider growth is driven by differentiation around industry knowledge, firm knowledge and functional knowledge, rather than cheap resources from India. Firms that pivot and provide more and better resources in country, more focus around industry and function, more specialization for those that will succeed.

Service providers talked the talk of differentiation in 2013-2014, but they didn’t walk the walk. In 2015 providers that are successful in growing share will execute really great, meaningful differentiation rather than just giving lip service to differentiation.

Automation

The tipping point for automation is still in the future. The industry has had a couple of years of experimentation with automation, but we don’t think the experimentation phase is finished. We have yet to see the automation play done at scale either on infrastructure or BPO; it is yet to move into the mainstream and is yet to be acknowledged for the full power and capability that it possesses. So the stories of automation destroying the arbitrage game are premature.

We think that, much like cloud in the last three years, in 2015 the automation journey will continue its experimentation and advance toward a time where it is implemented at scale and is able to change the value proposition in a meaningful way.

In 2015, we do not expect automation to take meaningful share from the BPO or infrastructure players. But we expect many more proof points to develop and more hype or industry attention to focus on automation.

As a service

We’re not near a tipping point in moving to a consistent as-a-service model, but we’re definitely seeing a growing uptick in experimentation with this model. In 2014, we saw a number of important companies experimenting with implementing as a-service solutions, but they weren’t multi-tenant. What they’re doing is taking their entire supply chain and turning it into a consumable, as-a-service supply chain and achieving similar benefits that are derived from a multi-tenant SaaS offering but without having the multi-tenant characteristic.

The implications of early experimentation are very significant for legacy environments. We expect 2015 to have a number of announcements of leading firms implementing this approach. We believe this is an important development but will not become an industry standard for several years to come.

Service provider landscape

As to the service providers, in 2015 we expect some changes in dominance and success. Cognizant and TCS always do well and will do so again in 2015. What’s interesting is to look at those that are going to change their fortunes. Specifically we’re watching two companies: IBM and Wipro. In 2013-2014 both made structural changes that position them well for entering 2015.

IBM decided to address the cloud issue head on. Big Blue’s purchase of SoftLayer, the moving of IBM’s middleware suite to an as-a-service delivery vehicle and willingness to deal directly and forthrightly with customers on cannibalization issues positions IBM for a potentially strong turnaround in 2015. We already see signs of that in the three megadeals IBM announced in the last quarter of 2014. We believe IBM is in for a strong year in 2015 if it stays the course.

Likewise, I’ve blogged before about Wipro laying the groundwork for a resurgence. Specifically I call out the firm’s early adoption of automation and increased focus on the large megadeal space. We believe Wipro’s adoption of automation allows the provider to be a cost challenger without giving up margins in the multi-tower megadeal space. I expect Wipro will continue its momentum into 2015, building on early successes.

This is not to say that other service providers won’t do well. I highlight these two because they took big steps to turn around their business and position themselves for the future and for velocity coming into 2015.


Photo credit: harmish khambhaita

The Cloud Experiment is Over, but are Buyers Waiting for Godot? | Sherpas in Blue Shirts

By | Sherpas in Blue Shirts

The cloud experiment is over and the debate in enterprises about its benefits and risks is settled. We know it works, it’s more flexible and cheaper, and it makes it easier for IT to align with business needs. So should buyers put their applications into a cloud environment?

My advice: Don’t rearchitect your legacy applications that were designed and implemented in a legacy environment and port them over to the cloud. Organization of all sizes have been waiting for providers’ porting solutions. Unfortunately, that’s sort of like the Samuel Beckett tragicomedy play, “Waiting for Godot,” in which two characters wait days for Godot even though they don’t know where or when he might arrive. Buyers wait, thinking cloud porting solutions will arrive in the market, but it just doesn’t happen. That’s because porting is really expensive and really risky.

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I’ve blogged in the past about CSS Corp Cloud Services and Redwood Software platforms for easily migrating legacy apps to the cloud. But as we get further into the cloud story, it looks like replatforming offerings will be far rarer than we anticipated. I’m not saying they won’t exist; I’m just saying they won’t be the dominant model.

As the smoke clears from cloud experimenting and pilots, the best-practice dominant model for moving into the cloud is shaping up as follows:

  • Look for opportunities to make incremental improvements to your legacy environment. Rework legacy by increasing the level of virtualization and automation in your data center.
  • When you develop new applications, architect them for the cloud environment.

This strategy of adding virtualization and automation may get your legacy environment into a private cloud, but it doesn’t get you into the agile low-cost public cloud environment. However, it allows you to improve the efficiency and resiliency of the existing legacy environment without the huge cost and risk of rearchitecting.

The strategy also helps CIO organizations regain some of the influence and credibility they’ve lost with business units as they’ve addressed new functionalities enabling where the business is moving. It enables the organization to be more agile, better aligned and do so with lower cost, which significantly relieves the tension of having to get a huge amount of funding for a set of high-risk legacy projects.

The fact is for many legacy applications the best you can do is make incremental progress. You can move them out of dedicated hardware into virtualized hardware. And other than some potential cost savings, there is little to no business benefit from taking on the risk of reengineering them for a public infrastructure or shared environment.

We saw this same best-practice model happen with distributed computing; new applications went into distributed computing and eventually we reached a tipping point where we needed to move legacy apps. I anticipate the new functionalities, new work will similarly drive the shift from legacy to cloud.

Going forward until the tipping point occurs, put all your efforts into standing up your organization’s new environment to take full advantage of the business alignment, flexibility and cost that the cloud family offers and just make incremental changes to your legacy environment. If you wait for a huge re-platforming surge of cloud porting solutions, I believe you’ll be waiting for Godot.

Enterprise Technology 2015: Heavier Apps, More PaaS, Troubled Security… and more | Sherpas in Blue Shirts

By | Sherpas in Blue Shirts

As enterprises freshen their technology mandate for 2015, they stand at the cusp of a multi-dimensional interplay of agility, flexibility, and rising security considerations. Beyond the usual SMAC stack, enterprises are also grappling with challenges to the status quo in terms of faster application development, automated IT operations, the Internet of Things, and process fragmentation.

Following are five technology trends that rose to the top of our list for the important role they will play in enterprise technology in 2015.

    1. Mobile Apps – Will Need a RethinkThe IBM-Apple partnership to tackle enterprise mobility is a significant development that validates our earlier hypothesis. However, the enterprise apps now require a rethink. These apps were conceived to be “light weight” and easy to use, focused on a specific range of capabilities. But, due to increased adoption and constant demand for additional functionality, enterprises are going against this fundamental tenet by coding in multiple features that are making mobile apps heavy and difficult to use. Yet, this same “overhead bulk” has become compulsory to provide features such as analytics across apps usage, offline access, and cloud collaboration that help enterprises perform meaningful tasks. In 2015, enterprises will need to walk a fine line between honoring the basic principles of mobile apps and the persistent demand for increased functionality.
    2. PaaS – The Needle Will Move FurtherWhile Platform-as-a-Service (PaaS) has been touted as the “next wave” since its inception, it never fulfilled its purported potential of adding meaningful value. However, enterprise technology may see that change in 2015 given the push from leading vendors such as Microsoft (Azure), IBM (Bluemix), Red Hat (OpenShift), Salesforce (Salesforce1), and AWS (Elastic Beanstalk). The PaaS business case will be enhanced by IaaS providers offering “PaaS-like” features (which is already happening), as well as PaaS platforms getting integrated with IaaS (e.g., the recent partnership between Apprenda and Piston Cloud). Although we do not believe PaaS will become the face of the cloud, we indeed expect 2015 to push its adoption within enterprises.
    3. Cyber Security and Open Source – Conundrum Won’t be SolvedThe Sony hacking scandal reiterated the importance of enterprise security – which is often taken lightly as compared to most cool next-gen initiatives – and has turned cyber security into a top priority for 2015. However, with the proliferation of Open Source Software (OSS) in enterprises, this “insecure” perception will surge. Enterprises are aggressively looking toward OSS with a host of next-generation technology areas such as cloud (OpenStack), Big Data (Hadoop), mobility, IT operations automation (Chef, Puppet), and content management (Drupal, Joomla!). With marquee B2C corporations such as Netflix, Samsung, and Facebook already having undertaken major, well-publicized OSS initiatives, other traditional enterprises will be pushed hard, despite a concern for security. Google teaming up with Samsung to include Knox (additional enterprise security features) to make Android more appealing for the enterprise is a step in answering this conundrum. However, it won’t be solved in 2015.
    4. Battle for Container Supremacy – Docker Will be ChallengedApplication development is getting a relook within enterprises with increased interest in container technology. Docker, the poster child for containers, whose open platform helps developers to build, ship, and run distributed applications, was rocketed in 2014 with competition from CoreOS. While Docker container technology is now supported by most platforms such as Amazon, Google, IBM, Microsoft, and VMware, its shortcomings are becoming visible. Developers believe Docker “replaces” virtualization but provides limited platform-type support, and its containers are becoming resource intensive. Moreover, given Docker’s early foray into container management, it will be pitted against the might of Google Kubernet and AWS, as well as nimble players such as Giant Swarm. This may dilute Docker’s focus on developing next-generation container technology, leaving an ample field for competitors to exploit.
    5. Analytics – Focus Will be on Bread and ButterWith millions of dollars invested in data analytics initiatives, 2015 will make enterprises reassess the opportunity cost and value of data. While tools such as Hadoop and NoSQL have greatly reduced the entry barriers to analytics, they have witnessed middling adoption. Enterprises still have a long way to go to embed analytics in their existing processes. Therefore, despite the Internet of Things and wearable devices taking off and generating more machine data for organizations to tap into, these new initiatives will not be an immediate priority for 2015. In 2015, enterprises will get their analytics act together to focus on existing processes, consolidation, rationalization, and targeted spending, with data management, governance, and security taking priority.

Danish physicist and Nobel Prize winner Niels Bohr once commented that, “prediction is very difficult, especially if it’s about the future.” So, please join us out on the limb. What are your predictions for 2015 enterprise technology?