Revenue shift from analogue to digital

Technology research group, Gartner believes that corporate revenue, globally, is moving from analogue to digital.

Speaking at the 2012 Gartner Symposium in Cape Town on Tuesday (28 August), Peter Sondergaard, senior vice-president for research, pointed to the digital migration in the retail space and in advertising spend, as examples.

He said that corporate marketing budgets were moving towards the digital space, with social media strategies beginning to dominate thinking.

“By 2017, chief marketing officers may have a bigger IT budget than the CIO,” Sondergaard warned.

He also alerted to a trend of a spreading of technologies to all parts of the business. “By 2014, CIOs will have lost effective control of 25% of their company’s IT spend,” he said.

In his opening address at the Cape Town International Convention Centre, Sondergaard highlighted a number of “disruptive” vendors in the market – including the likes of Apple, Facebook, Amazon and Google – changing the way IT is delivered, and encroaching into the space of already established IT vendors like Microsoft, IBM, Cisco, Oracle, HP and SAP.

The research lead cautioned to the fact of how rapidly things change in the tech space, with the likes of mobile players including Nokia, Motorola, and RIM now struggling in an area in which they once dominated.

To emphasise the dramatic and continuous shift towards mobile, Sondergaard said that as many as 900 million tablets would have been purchased by 2016.

The analyst said that by 2014, the install base of mobile devices would surpass the install base of PCs, while the second generation of mobility would have innovative mobile-only capabilities.

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Revenue shift from analogue to digital