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AMR Research Announces Inaugural Supply Chain Executive Conference 2010 in Europe

13-14 September, Lancaster London Hotel, London, UK

Egham, UK, 18 June, 2010 — AMR Research, a Gartner, Inc. company, today announced its Supply Chain Executive Conference 2010, to be held in London at the Lancaster London hotel on 13-14 September.

At the conference, AMR Research analysts will outline how leading organisations have succeeded and chart a road map for supply chain excellence. This will include showcasing proven best practices in acquiring and maintaining talent, building efficient business processes and getting value from supporting technology investments.

Mobile PC Market Experiences Strongest Growth Rate in Eight Years

STAMFORD, Conn., May 25, 2010 — Worldwide mobile PC shipments totalled 49.4 million units in the first quarter of 2010, a 43.4 per cent increase from the first quarter of 2009, according to final results by Gartner, Inc. This year-over-year growth is the highest the mobile PC market has experienced in eight years and represents about $36 billion in end-user spending.

Table 1
Worldwide Mobile PC Vendor Unit Shipment Estimates for 1Q10 (Thousands of Units)

Source: Gartner (May 2010)

Gartner estimates that there are about 500 million mobile PCs currently in use worldwide. Products from adjacent categories, such as smartphones and media tablets (Apple's iPad), offer messaging and web access, which are challenging the key applications for PCs. While Gartner does not see these products as a direct replacement for mobile PCs, analysts are closely monitoring how consumers and businesses are using them. The top applications that are downloaded will tell a lot about how these devices could displace some mobile PC sales in the future.

Future of BI to Be Discussed at Gartner Business Intelligence Summit 2010 in London

Egham, UK, 9 December, 2009 — Once the preserve of cash-strapped organisations, open-source business intelligence (BI) tools are becoming a mainstream deployment option for all kinds of BI usage, according to Gartner, Inc.

Gartner analysts said that while functionality is not yet on a par with large commercial platforms and is still rarely seen as an business-wide BI standard, open-source BI tool deployment is growing solidly.

“Open-source BI has seen an interesting adoption pattern over the last few years,” said Andreas Bitterer, research vice president at Gartner. “Hardly any organisation looked at open-source BI until 2004, let alone deployed it to a significant number of users, but this submarket had developed nicely, having developed consistent growth rates over the last few years.”

Although the average size deal for an open-source BI contract remains approximately $30,000 for a yearly subscription, some contracts repeatedly exceed $500,000 for a multiyear support subscription, which is in the same ballpark as many commercial counterparts.

Analysts Examine the Rise of the Citizen Developer During Gartner Symposium/ITxpo, 2-5 November in Cannes

Orlando, Fla., October 22, 2009 — By 2014, citizen developers will build at least 25 per cent of new business applications, according to Gartner, Inc. Gartner said that this advance should both enable end users and free up IT resources. However, analysts warned that IT organisations that fail to capitalise on the opportunities that citizen development presents will find themselves unable to respond to rapidly changing market forces and customer preferences.

Gartner defines a citizen developer as a user operating outside of the scope of enterprise IT and its governance who creates new business applications for consumption by others either from scratch or by composition.

"Future citizen-developed applications will leverage IT investments below the surface, allowing IT to focus on deeper architectural concerns, while end users focus on wiring together services into business processes and workflows," said Eric Knipp, senior research analyst at Gartner. "Furthermore, citizen development introduces the opportunity for end users to address projects that IT has never had time to get to - a vast expanse of departmental and situational projects that have lain beneath the surface."

Key Issues for Data Centre Professionals to Be Discussed at Gartner Data Center Summits 5-6 October in London and 1-4 December in Las Vegas

STAMFORD, Conn., June 11, 2009 — In the face of organisational budgetary cuts, there are seven effective ways organisations can reduce costs in the data centre during a 12- to 18-month period, according to Gartner, Inc.

"While responding to contracting budgets, IT managers are expected to deliver an ever-increasing level of service to users, and many are charged with showing tangible financial savings as part of cost-cutting measures," said Rakesh Kumar, research vice president at Gartner. "Significant savings can be made in the data centre. For example, removing a single x86 server will result in savings of more than $400 a year in energy costs alone."

Gartner has identified seven important ways to cut data centre costs:

1. Rationalise the Hardware

Hardware rationalisation will result in savings in several areas. First, it will help with asset and inventory management and provide a clear picture of the boxes that are being used effectively and those that are not. Second, server rationalisation should lower maintenance and support charges. Third, server rationalisation will lower energy costs, typically more than $400 per server, per year. Finally, hardware rationalisation projects usually yield savings of 5 per cent to 10 per cent of the overall hardware costs, when measured post project.

2. Consolidate Data Centre Sites

Egham, U.K., 20 May 2009 — Worldwide mobile phone sales totalled 269.1 million units in the first quarter of 2009, a 9.4 per cent decrease from the first quarter of 2008, according to Gartner, Inc. Smartphone sales surpassed 36.4 million units, a 12.7 per cent increase from the same period last year.

“There were some signs of a recovery in markets such as North America and China, but overall sales in the first quarter of 2009 registered the biggest quarter-on-quarter contraction since Gartner began monitoring the market on a quarterly basis in 2001,” said Carolina Milanesi, research director for mobile devices at Gartner, based in Egham, UK. “This was also the first time the market contracted year over year during the first quarter, a period traditionally helped by strong seasonality in the Asia/Pacific market.”

Gartner Highlights Top 5 Tips for Cost Cutting in E-Commerce Without Losing Customer Loyalty

Stamford, Conn., May 11, 2009 – IT organisations responsible for e-commerce are challenged in 2009 to improve online customer experiences to make up for closed locations and lost sales personnel, while cutting IT expenditures by 5-25 per cent, according to Gartner, Inc.

Gartner has identified five tips in which IT leaders in charge of e-commerce operations can meet this challenge in this year’s tough economic climate. Gartner has also provided associated savings estimates for large businesses with e-commerce budgets of more than $1 million for software and services, and for small businesses with budgets of less than $1 million.

Tip 1 – Use off-the-shelf products, not custom development, for commodity functions

By eliminating custom-development efforts for commodity functions (such as shopping cart management, search, product merchandising and management) and replacing these with commercial, off-the shelf, or open-source e-commerce applications, Gartner estimates that large businesses can save 35 per cent of ongoing maintenance and licence costs, and small businesses can save 25 per cent of these costs in 2009, and 20 per cent in the future. The one-time cost to implement this strategy is $250,000 to $350,000 in software, on average, with a one-time cost for implementation services.

“Except for market leaders, such as Amazon and eBay, custom development is likely to be a waste of effort and money because it supports functions that do not enable a differentiated online customer experience,” said Gene Alvarez, research vice president at Gartner. “For example, a developer who supports a commodity function, such as shopping cart management, would be better to develop rich internet shopping capabilities or improve site design for search engine optimisation so that the site can rank higher in a Google-based search.”

Stamford, Conn., May 7, 2009 — The market for software as a service (SaaS) is forecast to reach $9.6 billion in 2009, a 21.9 per cent increase from 2008 revenue of $6.6 billion, according to Gartner, Inc. The market will show consistent growth through 2013 when worldwide SaaS revenue will total $16 billion for the enterprise application markets.

"The adoption of SaaS continues to grow and evolve within the enterprise application markets as tighter capital budgets in the current economic environment demand leaner alternatives, popularity increases, and interest for platform as a service and cloud computing grows,” said Sharon Mertz, research director at Gartner.

“Adoption of the on-demand deployment model has grown for nearly a decade, but its popularity has increased significantly within the last five years,” Ms Mertz said. “Initial concerns about security response time and service availability have diminished for many organisations. As SaaS business and computing models have matured, adoption has become more widespread.”

SaaS adoption varies between and within markets. Although usage is expanding, growth remains most significant in areas characterised by horizontal applications with common processes, among distributed virtual workforce teams, and within Web 2.0 initiatives.

Office suites and digital content creation (DCC) remain the fastest-growing markets for SaaS. Office suites are projected to total $512 million in 2009, up from $136 million in 2008, while DCC is forecast to total $126 million in 2009, up from $70 million in 2008. The content, communications and collaboration (CCC) market continues to show the widest disparity of SaaS revenue across market segments, generating $2.5 billion in 2009, up from $2.16 billion in 2008 (see Table 1).

Table 1

Gartner Says Organisations Can Save More Than $500,000 Per Year by Rationalising Data Integration Tools

Overlap Creates Excessive Software Licensing, Maintenance, and Skills Costs

Egham, UK, 22 April 2009 — Organisations that have implemented substantial data integration architectures can save more than $500,000 annually by rationalising tools in the short term and adopting a shared-services model in the longer term, according to Gartner, Inc. Deployment of multiple and functionally overlapping data integration tools creates excessive cost in terms of software licensing, maintenance, and skills of up to $250,000 per tool annually.

“Organisations often purchase and implement new data integration tools in a fragmented way without considering extending investments already made in other parts of the business, resulting in multiple tools from various vendors,” said Ted Friedman, vice president and distinguished analyst at Gartner. “The first step is for IT teams focused on data integration to save money by rationalising tools. Further, there is a greater longer-term opportunity to substantially reduce costs and increase efficiency and quality by moving to a shared-services model for the associated skills and computing infrastructure.”

As organisations in all industries continue to focus heavily on cost optimisation, various aspects of IT represent potential for removing cost. The imperative to increase efficiency, combined with the historically fragmented and tactical approach to data integration that is commonplace in most businesses, is now driving organisations to rethink how they have approached this discipline.

Gartner recommends that organisations consider executing three elements of rationalisation in the short term:

1. Rationalise Data Integration Tools

Gartner Says 20 Per Cent of Commercial E-Mail Market Will Be Using a SaaS Platform By the End of 2012

Stamford, Conn., April 7, 2009 — The Software as a Service (SaaS) model for e-mail solutions is proving attractive for many customers and will represent 20 per cent of the commercial e-mail market by the end of 2012, according to Gartner, Inc. In 2007, the SaaS e-mail market represented 1 per cent of the commercial e-mail market.

Gartner analysts said that the impact of the SaaS model for e-mail will have direct and material consequences for traditional third-party product vendors, effectively cutting the addressable market for traditional third-party applications by one-fifth. However, by 2012, the move to the SaaS model for e-mail will create opportunities for new third-party applications.

“The lost opportunity to the traditional third-party market may be more than 20 per cent because the earliest adopters of the e-mail SaaS model are small or midsize businesses (SMBs), which can represent up to 40 per cent of the market when measured by the number of companies which are likely prospects,” said Matt Cain, research vice president at Gartner. “However, SMBs are less likely to buy third-party tools compared to larger organisations.”

According to Gartner, there are four general categories within the third-party community for e-mail services that will be affected to a greater or lesser extent by the move to the SaaS model for e-mail.

Applications Core to Running Premises-Based E-mail

Examples include disaster recovery, reporting, backup, spam and virus filtering. In this case, the need for most third-party management applications goes away in a SaaS deployment as the vendor provides all core level two and three help desk duties, supplies all required services for redundancy and recovery, provides all reporting options, performs all version upgrade functions, and protects the perimeter with its own spam and virus filters.

Analysts Warn Against Basing SaaS Deployment Decisions on Unproven Theories

STAMFORD, Conn., February 19, 2009 — The rise in popularity of the software-as-a-service (SaaS) delivery model has resulted in a number of assumptions about this emerging model, but it has been difficult for many companies to separate truth from fiction, according to Gartner, Inc. Gartner analysts have examined the top-five assumptions to provide a bit of a reality check on the state of the SaaS industry.

“In recent years there has been a great deal of hype around SaaS,” said Robert DeSisto, vice president and distinguished analyst at Gartner. “As a result, a great number of assumptions have been made by users, some positive, some negative, and some more accurate than others. The concern is that some companies are actually deploying SaaS solutions, based on these false assumptions.”

Gartner has taken the top-five assumptions that users make and provided a fact check on their accuracy.

Assumption 1 — SaaS is less expensive than on-premises software.

Fact Check: True during the first two years but may not be for a five-year TCO. SaaS applications will have lower total cost of ownership (TCO) for the first two years because SaaS applications do not require large capital investment for licenses or support infrastructure. However, in the third year and beyond, an on-premises deployment can become less expensive from an accounting perspective as the capital assets used for the on-premises deployment depreciate.

Assumption 2 — SaaS is faster to implement than on-premises software.

Egham, UK, 17 February, 2009 – The combined printer, copier and multifunctional product (MFP) shipments market in Europe, Middle East and Africa (EMEA) totalled 48.2 million units, a decline of 8.4 per cent over 2007 (see Table 1), according to Gartner, Inc.

“The fourth quarter of 2008 was a pivot point for the world economy, creating a very challenging selling environment for all printer, copier and MFP hardware and software providers. The rapidly deteriorating economic environment is forcing technology providers to look at their business models and make significant adjustments,” said Tosh Prabhakar, senior research analyst at Gartner.

Gartner said buyers reduced printer and MFP spending in light of low confidence in the market. Sales of consumer devices were down 9 per cent in 2008. In addition, businesses delayed product upgrades and/or cancelled investment in new office devices as budgets and cost containment policies became a priority.

Table 1

EMEA Printer, Copier and MFP Unit Shipments, 2008 (thousands)

Source: Gartner (February 2009)

Analysts Examine the Next Generation of CRM Technologies at Gartner Customer Relationship Management Summit 2009, 3-4 March, in London

Egham, UK, 29 January, 2009 — According to a recent survey from Gartner, Inc more than three quarters of respondents in Europe said they are planning to enhance their investments in CRM initiatives in 2009. These projects will focus on improving customer retention and increasing wallet share.

Gartner surveyed nearly 90 European business and IT leaders who influenced the CRM strategy in their organisation in the third quarter of 2008 and carried out a follow up poll in December.

“The responses to this later survey indicated that, as expected, some budgets for CRM initiatives were negatively impacted, but, the latest survey results showed that their earlier budget allocations for CRM initiatives largely remained in place,” said Chris Pang, principal research analyst at Gartner. “It was clear that many projects such as implementation of direct marketing tools, customer analytics, and customer service and support capabilities are too strategically or tactically important to be suddenly abandoned.”

Gartner estimates that CRM spending in 2009 will not decline as dramatically as it did after 2000, but growth will be more moderate than in previous years. It forecasts that the European CRM software market will reach $3.5 billion (€2.4billion) in 2009, an increase of 4 per cent from 2008.

The survey respondents also reported that their primary objectives for their CRM programmes were first, to enhance cross-selling or upselling of products and services, second to increase customer satisfaction and third to increase sales revenue. “These objectives take on added importance in a downturn because the cost and effort needed to sell to existing customers is often less than that for acquiring new ones,” said Mr Pang.

Today, IBM (NYSE: IBM) announced it is working with six universities to leverage IBM Blue Cloud solutions to speed up projects and research initiatives that were once constrained by time, limited or unavailable resources, or overloaded IT systems.

• The Qatar Cloud Computing Initiative, driven by three universities, will open its cloud infrastructure to local businesses and industries to test applications and complete various projects, including seismic modeling and the exploration for oil and gas.
• Another university, the University of Pretoria, is using cloud computing to test the development of drugs to slow the progression of serious illnesses in Africa.
• In addition, IBM is also working with The Higher Education Alliance for Leadership Through Health (HEALTH Alliance) in East Africa and Kyushu University in Fukuoka, Japan to use cloud computing.

Carnegie Mellon University in Qatar, Qatar University, Texas A&M University at Qatar

One of the first projects to bring cloud computing to the Middle East, the Qatar Cloud Computing Initiative, is operational and initially located at Carnegie Mellon University in Qatar. Carnegie Mellon University in Qatar, Qatar University, and Texas A&M University at Qatar will collaborate on this environment, along with a community of industry experts, researchers and clients, to develop a cloud solution to help solve industry problems.

STAMFORD, Conn., January 14, 2009 — As organisations face a challenging economic environment, IT spending budgets will be essentially flat with a planned increase of 0.16 per cent in 2009, according to results from the 2009 CIO survey by Gartner Executive Programs (EXP).

The worldwide survey of 1,527 CIOs was conducted by Gartner EXP from 15 September to 15 December 2008 and represents CIO budget plans reported at that time. Flat IT budgets were found across organisations in North America and Europe, with slight increases in Latin America and a slight decrease in Asia/Pacific.

The Gartner EXP CIO report "Meeting the Challenge: The 2009 CIO Agenda" represents the most comprehensive examination of business priorities and CIO strategies. The CIOs surveyed represent more than $138 billion in corporate and public-sector IT spending, encompassing 1,527 organisations across 48 countries and 30 industries.

"In 2009, executives face challenging global economic conditions that have not existed for more than 50 years," said Mark McDonald, group vice president and head of research for Gartner EXP. "This environment is reflected in IT budgets, priorities and strategies as one third of CIOs reported no change in their budget from 2008, while 46 per cent reported a slight increase, and 21 per cent reported a cut in IT budgets."

"All CIOs will face the need to restructure their budgets, cutting in some areas and investing in others, including those reporting no change in their overall spending level," Mr McDonald said.