Tag: IT

IT Service Provider 2023 Forecast: The Top 5 Themes for Growth and Wallet Share | Webinar


IT Service Provider 2023 Forecast: The Top 5 Themes for Growth and Wallet Share

The demand for technology services continues to remain strong, despite being in a recessionary period. However, the nature of these deals is evolving. This webinar will offer service providers insights into the emerging themes, challenges, and growth pockets in the technology services market.

Within technology services, this webinar will deep dive into the top five demand themes – data and AI, cloud, experience, platforms, and security – driving growth for IT service providers in 2023.

We will answer the following questions in this webinar:

  • What are the unique themes driving enterprise consumption in cloud, data and AI, platforms, security, and interactive services, respectively?
  • What are the prominent themes that will drive service provider growth?
  • What should service providers do to gain higher wallet share?

Who should attend?

  • CIOs and CTOs
  • IT service provider executives
  • IT growth leaders
  • IT functional leaders
  • Technology leaders
Singh Abhisek Refresh gray square
Gupta Vishal Refresh gray square
Vice President
Krishan Nisha gray square 1
Practice Director
Sekhri Deepti
Senior Analyst
Senior Analyst

Productization Emerges in Media Services – A Shift Driven by Technology | Blog

Leveraging the power of Artificial Intelligence (AI) and data and analytics tools, media and communications companies are redefining themselves from being service providers to product creators. Read on to learn how emerging technology is changing the game in media services. 

While technology has played a pivotal role in media services for some time, use cases have increased and grown in complexity in recent years. AI and data and analytics are now widely used across the media planning and buying value chain. Moreover, media agencies are emphasizing developing in-house tools, solutions, and products based on data and analytics, AI, and the Internet of Things (IoT) to gain a competitive edge and propose a distinguished value proposition to their clients. Let’s explore this shift further.

Rising momentum in adopting emerging technology in the media services value chain

Essentially, the media services value chain consists of four broad components – media strategy and planning, creative development, buying and execution, and analytics and measurement as depicted below:

Exhibit 1: Media planning and buying value chain

Picture1 5

In the early days, technology was mainly used for basic tasks such as segmenting audiences, measuring media campaign analytics, and automating simple processes that were focused on a single segment.

Next, the focus shifted to programmatic advertising, automating the media buying process. Further advancements in AI-enabled programmatic media buying have spurred media agencies to invest in media marketplaces.

For example, GroupM launched Premium Marketplace, a unified programmatic marketplace with increased media buying transparency and efficiency. Omnicom Media Group introduced a programmatic marketplace for point-of-purchase screens in the US. Moreover, Publicis Media launched a programmatic marketplace that allows brands to reach underrepresented communities.

The advancements in the ease of use of AI and IoT combined with the growing prowess of data and analytics has unleashed intricate new use cases across the entire media services value chain, opening new avenues for media agencies.

As the number of channels and consumer touchpoints continue to proliferate, the emphasis has shifted to analyzing complex audience segments; automating complex processes; developing accelerated, customized, and optimized media plans across channels; and analyzing and maintaining elaborate data sets of user journeys.

AI and a data-driven approach enables audience building at a granular level, creating a single customer view and delivering highly personalized customer experiences.

Exhibit 2: Use cases of technology in the media services domain

Picture2 3

Rise of productization in media services

Increasingly, media companies are investing in platforms, in-house solutions, and tools to expand their offerings and reposition themselves from being pure play professional service providers. Agencies under the parent brand also are leveraging these investments to drive greater synergies by maintaining large in-house data sets and collecting user journey data.

As margins become thinner in the core media services, the momentum toward productization has opened a new revenue stream for media agencies. Some notable examples of these investments include:

  • Wavemaker’s media planning tool Maximize, an AI-powered media planning platform, creates media plans to reach multiple audiences and optimize media investments
  • Omnicom Group’s Omni, a precision marketing and insights platform, is designed to identify and define personalized consumer experiences at scale
  • Performics’ suite includes tools for search optimization, customized user journeys, brand discovery, and Amazon advertising bid strategy
  • Tinuite’s Mobius suite includes proprietary apps consisting of MobiusOS, Mobius Apps, and MobiusX
  • Havas Media’s Converged, an identity-based planning and buying platform, aims to deliver stronger insights, tighter targeting, and a more consistent customer journey

Other investments and partnerships to elevate the power of these platforms by integrating additional data sources include Omnicom’s Omni partnerships with Walmart Connect and NBCU Audience Insights Hub; and Wavemaker working with Amazon Advertising’s Overlapping Audiences API to access Amazon’s audience insights into media plans and campaigns.

The launch of channel-specific solutions is another example of the growth in productization. This can be seen in GroupM Australia’s launch of a custom-built, data-driven Digital Out of Home (DOOH) planning and activation platform that enables advertisers to deliver audience-based DOOH campaigns across premium sites. Further, GroupM developed Sightline, a dedicated digital out-of-home solution, which combines programmatic technology and AI with GroupM’s buying scale.

In addition to media agencies, neutral ad-tech platforms such as The Trade Desk and Xandr have invested in developing in-house platforms. Solimar by The Trade Desk has cross-channel precision and measurement capabilities and unleashes the power of first-party data. LiveRamp’s Safe Haven enterprise platform enables data gathering from multiple sources, transforms it into a connected customer view, and then activates at scale.

Is metaverse the next big thing for media services?

Interestingly, as the industry still explores the potential of the metaverse, media agencies have started executing pilot projects in this area. Publicis Groupe now has over 1000 employees dedicated to metaverse projects. WPP has incubated a metaverse foundry, while Wavemaker recently executed a wedding in the metaverse.

The outlook

Driven by in-house data sets and aggregating data through APIs, technology has changed the focus of media agencies toward offering products. This has given them new opportunities to unlock additional revenue streams and deliver distinguished value propositions.

Looking ahead, AI, data and analytics, and enablers such as the metaverse will continue to impact the dynamics of the media services value chain, and we can expect to see more investments in the near term.

To discuss technology in media services, please reach out to Nisha Krishan or Aakash Verma.

Explore more about evolving technologies what we could expect from the metaverse, watch our webinar, What to Expect from the Metaverse in 2023: Moving Beyond Hype.

Five FinTech Trends to Watch for in the New Year | Blog

Since every past economic slowdown in this century has led to accelerated innovation and growth for FinTech firms, 2023 should be no different. We expect financial technology players to answer investors’ demands for increased profitability by tweaking business models and product innovation. To learn what FinTech trends will dominate in the coming year, read on.

FinTech firms have a history of responding to tough economic times by adapting and coming up with new business approaches. Looking back at the downturn in 2008, new FinTech trends emerged, including personal finance management (PFM), insurance aggregators and marketplace, robo-advisors, crowdfunding, challenger/neo/digital-only banks, and cryptocurrencies. Following the same pattern for innovation, the pandemic-led slowdown has resulted in buy now pay later (BNPL), metaverse payments, decentralized finance (DeFi), and Web 3.0.

Let’s explore the following FinTech trends on the horizon for 2023:

Investors will push for profitability

Rising interest rates and slow economic growth have pushed FinTech investors to demand profitability improvements. As a result, FinTech firms that were built to drive growth at the expense of profitability to scale and acquire customers are now forced to adapt their business models and investments. We expect FinTechs to find alternative monetization models. One such alternative that FinTechs are exploring is selling/licensing their technology, such as core systems and machine learning models (that they built and trained), to other financial services firms. Accessing already built and trained machine learning models will enable financial services to adopt AI at speed and scale without additional time and expense.

FinTechs will target eliminating operational inefficiencies and data silos in core processes

The last decade has seen FinTechs eat into the front-office surplus of incumbent financial services firms. Now, they are increasingly moving into mid-and-back-office processes to streamline these processes and data systems. We see FinTechs targeting the hard problems that incumbent financial services firms are slow to resolve because of legacy systems, data, and established processes. For example, eight of the top 10 retirement plan providers in the US are struggling with legacy mainframe-based technology and processes. Newer firms such as Retirable, Penelope, Smart, and Silvur have entered the market to provide better retirement experiences. Firms like Alto are bringing innovation from the Web 3.0 space to the retirement market by offering Individual Retirement Account (IRA) platforms. These IRA platforms simplify investing in alternative assets, such as start-ups and cryptocurrencies, by using tax-advantaged retirement funds. Beyond the retirement and pension segment, we see similar activity in the treasury, investment banking, group benefits, and specialty insurance markets

FinTechs will move away from bundling/aggregation to financial ecosystem orchestration

Wallets and super apps are becoming the foundational blocks for enabling ambient banking, which is focused on meeting the business and/or customer at the moment of their need, crossing other industries. Firms like Roostify and Ribbon want to orchestrate the end-to-end home-buying experience. Players such as Nomi Health and PayGround seek to simplify the end-to-end healthcare payments experience. We expect to see more vertically integrated FinTech firms at the intersection of financial services and industry experiences (e.g., car buying, small business invoicing and billing, supply chain, loyalty, and travel). Cloud and APIs are two technology components enabling the technical architecture necessary for embedded banking.

FinTechs will tap into the sustainability opportunity

Environmental, social, and governance (ESG) is a major demand theme that represents a relatively untapped market by FinTechs. We expect areas such as carbon credit marketplaces, ESG data and analytics solutions, and ESG customer transparency solutions to dominate most FinTech activity in 2023. FinTechs that can offer support for ESG reporting and compliance for small- and mid-size financial services firms is a white space that should see significant growth in 2023.

Payments, wealth management, treasury, Web 3.0, and risk and compliance (RegTech) will be the fastest-growing FinTech segments in 2023

We expect a slowdown in lending and BNPL and challenger banking because of profitability challenges, whereas segments such as cryptocurrency will see some slowdown due to the tightening of regulatory controls and the FTX collapse, which led to a crash in prices. Markets such as supply chain finance, crowdfunding, PFM, and robo-advisory are becoming saturated and remain highly competitive for new FinTech entrants. Wealth management is an attractive adjacent market for banks, lenders, Non-Banking Financial Companies (NBFCs), and insurance firms. These new entrants in the wealth management space are working with FinTech firms that are configurable and born in the cloud architecture to assemble their technology stack. Web 3.0 is an emerging space with a broad ambit across industries with possibilities to manage the entire asset lifecycle better. These assets could be physical assets, digital assets, media, identity, equity, bonds, or even virtual assets in the metaverse. Breaking down process complexity and reducing costs of operations across payments, treasury, and RegTech areas will drive the growth of FinTech activity.

The FinTech outlook for 2023

In the upcoming year, we expect to see FinTech firms make deliberate moves to increase their profitability to meet investors’ demands. These actions will include firms selling/licensing their machine learning models, eliminating operational efficiencies through Web 3.0 innovations, focusing on the intersection of financial services and industry experiences, and making sustainability a priority.

If you have questions about FinTech trends or would like to discuss developments in this space, reach out to Ronak Doshi.

Also, watch our webinar, Key Issues for 2023: Rise Above Economic Uncertainty and Succeed, as we explore major concerns, expectations, and key trends expected to amplify in 2023.

Managed Detection and Response (MDR) Services PEAK Matrix® Assessment 2023

Top Managed Detection and Response (MDR) Services

The rise in enterprise touchpoints in the form of IoT, SaaS, and cloud have added to the woes of CISOs by significantly increasing the attack surface. To address this challenge, providers have built expertise in Managed Detection and Response (MDR) services, which not only provide telemetry coverage across sources such as cloud, IoT, OT/ICS, SaaS, endpoints, and network, but also allow enterprises to realize RoI faster than when implementing solutions on their own.

Providers are building localized Security Operations Centers (SOCs), hiring specialized talent, developing accelerators for quicker RoI realization, creating vertical-specific use cases to onboard newer logos more seamlessly, and providing converged IT-OT SOC services. Certain providers have carved a niche for themselves within MDR services and built industry-dedicated SOCs for industries such as automotive, manufacturing, and energy & utilities.

In this research, we assess 27 MDR service providers featured on the MDR Services PEAK Matrix® Assessment.

DOWNLOAD THE FULL REPORT Managed Detection and Response (MDR) Services PEAK Matrix® Assessment 2023

What is in this PEAK Matrix® Report

In this PEAK Matrix® assessment, we:

  • Examine the profiles of 27 MDR service providers globally
  • Study each provider’s strengths and weaknesses
  • Evaluate enterprise sourcing considerations


  • All industries and geographies
  • Services: MDR
  • The assessment is based on Everest Group’s annual RFI process for the calendar year 2022, interactions with leading MDR service providers, client reference checks, and ongoing analysis of the MDR services market

LEARN MORE ABOUT Managed Detection and Response (MDR) Services PEAK Matrix® Assessment 2023

Our Thinking

The Intersection of Cyber Security and Climate Resilience
Market Insights™

The Intersection of Cyber Security and Climate Resilience

Categories of Use Cases in Sustainability Enablement
Market Insights™

Categories of Use Cases in Sustainability Enablement

Everest Group Events

RSA 2023 Conference Sizzles with Focus on Artificial Intelligence for Cybersecurity

Organizations Want to Embrace Multi cloud
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Organizations Want to Embrace Multi-cloud, but Perceived Challenges Are Limiting Adoption

What is the PEAK Matrix®?

The PEAK Matrix® provides an objective, data-driven assessment of service and technology providers based on their overall capability and market impact across different global services markets, classifying them into three categories: Leaders, Major Contenders, and Aspirants.

LEARN MORE ABOUT Top Service Providers

Key Issues for 2023: Rise Above Economic Uncertainty and Succeed | Webinar


Key Issues for 2023: Rise Above Economic Uncertainty and Succeed

As we look toward 2023, economic uncertainty is prime and center. Rising inflation, interest rate hikes, and GDP contraction – matched with low unemployment rates and high talent demand – have left business leaders unsure of what to expect and how to prepare for 2023.

Join Everest Group’s Key Issues 2023 webinar as our experts provide insights into the outlook of the global IT-BP industry and discuss major concerns, expectations, and key trends expected to amplify in 2023.

All the data is based on input from global leaders across enterprises, Global Business Services (GBS), and service providers.

Our speakers will discuss expectations for 2023, including:

  • The outlook for global services
  • Top business challenges and priorities
  • Changes in sourcing spend and service delivery costs
  • In-demand digital services and next-generation capabilities
  • The evolving strategy for talent, locations, and the workplace

Who should attend?

  • CIOs, CDOs, CTOs, CFOs, CPOs
  • Service providers
  • GBS / Shared services center heads
  • Global services leaders
  • Locations heads

Application and Digital Services (ADS) in Life and Annuity Insurance – PEAK Matrix® Assessment 2023

Top Application and Digital Services (ADS) in Life and Annuity (L&A) Insurance Providers

Life and Annuities (L&A) insurers are partnering with providers to improve their digital transformation journeys and meet customer expectations by enabling accelerated underwriting, improved sales and distribution, and faster new products’ launch. Macro challenges such as rising inflation and demographic & life expectancy changes are compelling carriers to modernize their legacy technology stack and future-proof their businesses to achieve their cost reduction mandates.

In recent years, insurance carriers have been leveraging emerging technologies such as RPA, AI/ML, and IoT to achieve business-oriented outcomes and improve customer and agent experiences.

In this report, we assess the capabilities of 21 Application and Digital Services (ADS) providers and feature them on Everest Group’s ADS in L&A Insurance PEAK Matrix®. The study will enable buyers to choose the best-fit provider based on their sourcing considerations, while providers will be able to benchmark their performance against each other.

DOWNLOAD THE FULL REPORT Application and Digital Services (ADS) in Life and Annuity (L&A) Insurance – PEAK Matrix® Assessment 2023

What is in this PEAK Matrix® Report

In this report, we:

  • Assess 21 ADS providers in the L&A insurance market on Everest Group’s Products PEAK Matrix® evaluation framework
  • List the characteristics of Leaders, Major Contenders, and Aspirants in the L&A insurance ADS market
  • Examine the ADS providers’ offerings, along with their vision, product capabilities, adoption characteristics across geographies, case studies, partnerships, and investments


  • Industry: insurance
  • Geography: global

LEARN MORE ABOUT Application and Digital Services (ADS) in Life and Annuity (L&A) Insurance – PEAK Matrix® Assessment 2023

Our Thinking

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Transforming the Game: How Consolidation is Revolutionizing the Insurance Brokerage Industry

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Future Insurance Technology Trends: A Closer Look at the Need for Building Humanized Insurance Experience, Data-driven Intelligent Operations, and SaaS Integration


The Role of Insurance Intermediaries in the Digital Age: Challenges, Opportunities, and the Future

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Pension Risk Transfer: The Next Greenfield Opportunity in Retirement and Insurance

What is the PEAK Matrix®?

The PEAK Matrix® provides an objective, data-driven assessment of service and technology providers based on their overall capability and market impact across different global services markets, classifying them into three categories: Leaders, Major Contenders, and Aspirants.

LEARN MORE ABOUT Top Service Providers

Open Finance IT Services PEAK Matrix® Assessment 2023

Top Open Finance IT Services

The concept of open banking is no longer restricted to payment services. Open finance has widened its scope to include mortgages, wealth management, insurance, savings, and capital markets. These use cases are giving rise to concepts such as embedded finance, buy now pay later, and super-apps, which will allow banks to deliver hyper-personalized products and become more customer-centric. Open finance can disrupt traditional banking models and give rise to innovative models such as marketplace banking.

Additionally, regulators across geographies are implementing regulations and data sharing agendas to synergize banks and FinTechs. This will give rise to open data, which will allow customers to share data across multiple industries. In turn, enterprises and providers are building new solutions, establishing partnerships, and undertaking mergers and acquisitions to strengthen their position in the marketplace.

In this report, we assess 26 Banking and Financial Services (BFS) IT service providers’ vision & capability and market impact and position them on Everest Group’s PEAK Matrix® as Leaders, Major Contenders, and Aspirants. Each provider profile provides a comprehensive picture of its service focus, key Intellectual Property (IP)/solutions, domain investments, and case studies.

DOWNLOAD THE FULL REPORT Open Finance IT Services PEAK Matrix® Assessment 2023

What is in this PEAK Matrix® Report

In this report, we:

  • Classify 26 BFS IT service providers as Leaders, Major Contenders, and Aspirants on Everest Group’s proprietary PEAK Matrix® framework
  • Examine key trends in the BFS open finance space
  • Study IT service providers’ competitive landscape for open finance solutions
  • Assess the key enterprise sourcing considerations (strengths and limitations) for each provider


  • Industry: BFS
  • Geography: global
  • The assessment is based on Everest Group’s annual RFI process for the calendar year 2022, interactions with leading IT service providers, client reference checks, and an ongoing analysis of the open finance IT services market

LEARN MORE ABOUT Open Finance IT Services PEAK Matrix® Assessment 2023

Our Thinking

Key Parameters for Outsourcing Specialized
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Key Parameters for Outsourcing Specialized Banking, Mortgage, and Risk and Compliance in Emerging Geographies

CASE Framework for Realizing Full Potential of Low-code - No-code Technology
Market Insights™

CASE Framework for Realizing Full Potential of Low-code/No-code Technology

Top Drivers of Low-Code - No-Code Technologies in Banking & Financial Services
Market Insights™

Top Drivers of Low-Code/No-Code Technologies in Banking & Financial Services

Sustainability Needs to Infuse All Banking and Financial Services Firms’ Strategic Thinking
Market Insights™

Sustainability Needs to Infuse All Banking and Financial Services Firms’ Strategic Thinking

What is the PEAK Matrix®?

The PEAK Matrix® provides an objective, data-driven assessment of service and technology providers based on their overall capability and market impact across different global services markets, classifying them into three categories: Leaders, Major Contenders, and Aspirants.

LEARN MORE ABOUT Top Service Providers

2023 Predictions for Tech and Services Demand | Blog

The technology and services market this year experienced strong growth. But we have a slight deceleration at the end of this year as the prospect of a potentially deep recession grows. There is now a slowdown in consulting, particularly strategic consulting, and a slowdown in discretionary spending. Will that continue? Here is an overview of what I predict for the coming year.

Read more in my blog on Forbes

Building Web 3.0 Infrastructure – Moving to a Decentralized Architecture | Blog

Web 3.0 offers great promise for enterprises and service providers. Moving to a decentralized internet can provide users with many benefits. The foundational infrastructure needed to create this truly open technology is evolving. Read on to learn about the features and requirements for the web’s next evolution.

Web 3.0 (or Web3) – a new intelligent and decentralized internet that will be more responsive, interactive, and tailor-made to enhance customer experience – is poised to take off. By allowing for advanced user and device interaction, the next version of the internet will recognize and interpret content and contexts.

Web 3.0 will enable newer business models based on data ownership where owned digital assets will be the key to unlocking access to the richer areas of the internet, moving away from the concepts of “trust” and “permission” presiding in the current internet version.

Seamless lending and borrowing that does not rely on creditworthiness, transaction-based user identification (goodbye Know Your Customer), intelligent marketing, and much more are on the verge of becoming a reality – all enabled by Web3.

Despite its many promising benefits, the transition to Web3 has been slower than initial estimates. But with the underlying technologies’ rising maturity, applications by startups and other enterprises are surging. Established firms also are rapidly exploring Web3 and innovating their existing business models.

Building blocks of Web3

As the industry experiments with Web3 to unlock benefits, the supporting infrastructure that enables the next internet version also is evolving. While creating and interacting with content on websites will continue to be done on existing web servers, the underlying network will facilitate owning and controlling created data.

Let’s take a deep dive into the building blocks of Web 3.0 infrastructure to better understand the following ideal core features required to create this truly open technology:

  • Smart contracts: These pieces of code stored on the underlying blockchain technology get executed when conditions are met. Smart contracts play a critical role in authenticating certain outcomes without needing an intermediary. The automation can continue the governance-free workflow and, once authenticated, update the blockchain. These contracts are enforceable by code, maintaining transparency and autonomy.
  • Tokens (fungible and nonfungible): Monetary incentives like these are vital for Web3’s growth. Tokens can be offered to anyone who contributes to the platform’s governance and improvement. Digital assets lie at the core of the decentralized internet vision and serve as authenticity and ownership proof.
  • Artificial Intelligence (AI): Contextualizing interactions will be critical for hyper-personalization in Web3. AI can bring about increased accuracy, enhanced security, and greater scalability. To achieve these outcomes, Machine Learning (ML) will be used to filter and analyze content to gain meaningful insights, prioritize content, and create user-friendly interfaces in web apps. AI is already changing internet usage in the current Web 2.0 version and will become more dominant in Web3.

Underlying infrastructure requirements

The foundational elements unlock an ecosystem of decentralized, open infrastructure for everyone to use and build Web3. While AI remains an essential building block, smart contracts and tokens are implemented using blockchain. The underlying infrastructure that can seamlessly run blockchain applications and AI/ML models has the following requirements:

  • Computing: Although the Web3 model can converge excess computational resources, running blockchain nodes will require access to high-performance computing infrastructure. Running AI/ML models to serve customized results requires quantum computing to be prevalent. Moreover, running 3D graphics over Web3 in real-time in use cases such as Metaverse would require high-power Graphics Processing Units (GPUs)
  • Storage: AI in Web3 will feed on vast amounts of data to enable personalization. Storing such huge amounts of data requires larger disk sizes. Extremely fast disk read speeds are essential to leverage stored data. The underlying Web 3.0 infrastructure would need to support data of applications that leverage Augmented Reality/Virtual Reality (AR/VR) and other media/video use cases. Finally, Web3 will require decentralized storage solutions to preserve the technology’s sanctity
  • Network: High speed and low latency are foundational requirements to enable Web3. Higher network speed will determine the data transfer and blockchain update speed, enabling real-time processing. Maintaining low latency and high throughput also becomes critical for the transactions and interconnections to prevent delays and enhance the user experience. However, the decentralized nature is concerning because it inherently increases latency and the latency data of leading blockchain networks need improvement

To summarize, all the infrastructure elements must be upgraded to create an efficient Web3 network. Different types of nodes (servers that run blockchain applications) will have varying requirements for computing, storage, and speed.

Edge centers thereby become a natural choice for this ecosystem as they will bring computing and storage closer to devices with varying configurations. These centers will enable cost-effective analysis and processing of Web3 application data.

As far as reliability, the default peer-to-peer nature of blockchain networks enables Web3 to withstand physical hardware failure and network outages. Thus, the extra cost of redundancy would not give enterprises any sizeable operational benefits.

Evolving landscape

Both cloud providers and dedicated server providers have recognized this space’s potential and have made inroads with various startups such as Ankr and ChainSafe. The higher computation power of bare metal servers makes them a natural choice for multiple Web3 projects and protocols. Without redundancy and resiliency concerns, enterprises can easily grow their applications. Firms that are developing performance-sensitive applications will prefer dedicated hardware resources.

Cloud computing’s established reputation and market stronghold will create tough competition for physical server providers and may be able to attract more enterprises. Cloud computing models can strengthen blockchain and increase Web3 security.

Even leading cloud vendors such as AWS and Google Cloud are launching node services. Their Web3 units will provide support for blockchain developers with tools and platforms that can enhance their blockchain journey. However, expanding presence in the Web3 space will require a lot of effort from these hyperscalers to dismiss centralization concerns of using public cloud computing services.

Since all service providers are promoting firms to enhance their applications on their blockchain infrastructure offerings, those who can help enterprises build the next set of innovative applications will stand out as leaders.

With investments pouring in from venture capitals, hedge funds, private equity firms, and other investors, Web3 holds great opportunity that strategy, technology, and consulting providers can cash in by building 3.0 businesses for clients.

To discuss the evolving cloud and Web 3.0 infrastructure, contact  Mukesh Ranjan and Kaustubh K.

Learn more in our webinar, Web 3.0 and Metaverse: Implications for Sourcing and Technology Leaders.

Evolution of the Web – The Rise of the Decentralization of the Internet | Blog

By democratizing data and giving power back to internet users, Web 3.0 offers many new computing possibilities and growth opportunities for enterprises and IT service providers. Learn more about the evolution of the web and how the decentralization of the internet is poised to shake up business and operating models.

The evolution of the Web – from Web 1.0 to Web 3.0

The first internet version (Web 1.0) was limited in scope and interactivity. Users could only read what was displayed or shown to them, and communication was one-way with website hosts primarily focused on delivering content and information.

With Web 2.0, the internet became all about interactivity and collaboration. Web 2.0’s emphasis on social connectivity and user-generated content completely replaced Web 1.0’s bland read-only web pages. Users now could produce and share information online and were no longer limited to being passive content consumers. Instead of read-only, the web evolved to be read-write, with companies creating platforms to share user-generated content and engage in user-to-user interactions.

Web 2.0, however, led to the web’s primarily advertising-driven business/monetization model. Google, YouTube, and Facebook realized along the way that storing and transmitting the state of billions of users and targeting them for advertising is hugely profitable. The benefits of the internet slowly started skewing heavily towards a handful of these platforms.

With Web 2.0’s innovation curve now in its middle to late phase and its leaders well-established, it is time to explore the new computing possibilities of the next wave. Web 3.0 is evolving as a reaction to the overwhelmingly centralized nature of the internet today and the concentration of power in the hands of a few platforms. Web 3.0, by construct, aims to remove these third-party intermediaries and restore power to users so that they can benefit from internet activities.

Let’s look at the changes in interaction, computation, and information as illustrated below:

Picture1 1
Evolution of the web

What is Web 3.0?

Web 3.0 is vastly different from previous generations. At its core, Web 3.0 is not about speed, performance, or convenience. Instead, Web 3.0 is about power; in fact, many Web 3.0 applications are, at least today, slower, and less convenient than existing products.

The primary focus of Web 3.0 is about who controls the technologies and applications that make up the internet and distributing its benefits without handing most of the power to a handful of large companies as we do today. Web 3.0, by construct, aims to remove third-party intermediaries and restore power to users so they can have a more immersive internet experience.

Decentralization of the internet under Web 3.0 will lead to a fairer and more open internet as it will allow anyone with an internet connection to participate and contribute to the ecosystem and enjoy greater benefits from web activities. Web 3.0 will also improve trust and reduce conflicts as users will possess the private key that can access their data, thereby eliminating the need for conflict resolution in the digital world.

We see Web 3.0 becoming a meaningful extension of Web 2.0, with the change being an evolution rather than a revolution with pockets of decentralized applications coexisting with the centralized web of today. The rollout will be gradual with a Web 2.5 stage.

Where is the internet headed?

The core concept of the Web 3.0 movement is decentralized ownership, with blockchain technology providing the underlying architecture for the internet’s next generation. Here are three key trends we see that will shape the future:

  • Decentralized platforms will allow for sustainable ecosystems of third-party applications

The products and services that make up the internet today tend to be produced and controlled by individual corporations. Web 3.0 provides the opportunity to democratize the online experience and ensure that no central entity will take a substantial chunk of the revenue; instead, creators will be able to directly interact with their users, strengthening relationships for both creators and users.

  • Money will become a native feature of the internet

While the past internet was simply a portal to the traditional financial system offline, now any user with an internet connection and phone can send or receive payments with the current software capabilities. Digital payments will unlock new business models that were previously impractical, radically lower the costs of cross-border remittances and other transactions, enable new use cases like machine payments, and expand availability to massive new markets.

  • Users will have more control over their digital identities and data

Web 3.0 is laying the groundwork for personal control of online identities. Today, most online identities belong to big, centralized companies. Web 3.0 will give users control over their data by allowing them to use their identity rather than one provided by a third party, limiting the potential for identity providers such as Facebook, Instagram, and Gmail to collect user data and sell that data to generate money.

Web 3.0 challenges

Business leaders need to realize that Web 3.0 is coming and pay attention to its latest development. But creating an ecosystem that can end the big tech companies’ monopolies and reimagine how we interact with the internet is a complex undertaking. Web 3.0 still faces significant hurdles in usability, performance, and business and monetization models, as illustrated below:


A new internet era begins

Web 3.0 represents the natural progression of the internet that offers many exciting opportunities for technology and IT service providers. To seize its growth potential, providers need to focus on creating thought capital, hiring techno-creative thinkers, and building a go-to-market strategy to target a broader range of Web 3.0 themes to prepare for the coming transition.

To read more about Web 3.0 leading providers, see Web 3.0 Trailblazers – The Top Start-ups Building the Next Generation of the Internet. To discuss topics related to the evolution of the web, please contact Parul Trivedi, Sandeep Pattathil, and Nikhil Singh.

Learn more in our webinar, Web 3.0 and Metaverse: Implications for Sourcing and Technology Leaders.

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