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Malaysia's 'perfect storm' will grow IT economy to US$10 billion: IDC

AvantiKumar | Jan. 9, 2013
IDC points to 'hyper-competing' by organisations looking to take advantage of a confluence of factors, while the analyst firm outlines its top 10 ICT predictions for Malaysia in 2013.

He said part three of the predictions, called 'Underlying Fundamentals,' continued with prediction number 7 that bigger cracks would emerge between supply and demand for skilled local ICT workers.

"While the concept of leveraging technology as a strategic initiative is clear, therein lays the fundamental problem," said Ling. "Talent shortage is affecting both the supply and demand side and it's becoming quite apparent as organisations look towards implementing solutions to hyper-compete. The shortage of skilled workers has become a blaring caveat. IDC's C-suite barometer survey highlights talent at the core of the problem in leveraging technology for strategic advantage. More than 55 percent indicate issues from lack of required skill sets/expertise to effectively execute, to lack of thought leadership in ICT strategy and roadmap as a key hindrance to leverage IT."

8. Innovation hunger will drive M2M (machine-to-machine) deeper into the market

"The obstacles for M2M in the past were never related to connectivity but to analytics - specifically the tools that allow companies to extract, create relevancy and monetise the data. But these capabilities are available now and with everything in place, enterprises are now able to utilise M2M to optimise their operations," he said.

"With that, IDC predicts that in 2013, innovation hunger will drive M2M deeper into the market with telco service providers (SPs) playing a pivotal role," said Ling. "IDC predicts that the growing trend of M2M will be more significant in the coming years with market revenue of up to US$30 billion up 30 percent in 2013 for Asia Pacific (excluding Japan). In terms of M2M device connections, IDC estimates that there will be more than 36 million devices in 2013, growing to 65 million by 2015 for Asia Pacific (excluding Japan). "

9. The 7-inch tablet set to conquer in 2013, but enterprise adoption of tablets remains obscure

"Back in 2010 when tablets exploded into Malaysia's personal computing arena, 7-inch tablets were already in existence," said Ling. "But Apple's sheer dominance and influence lead the market to believe that a market only truly existed for 10-inch tablets, and from the way iPads were being snapped up, few would argue."

"Since then, Samsung's Galaxy Tab has met with success in the 7-inch segment which has proven to be more popular than expected," he said. "Seven-inch tablets currently enjoy about 27 percent share of the total tablet market as of quarter three of 2012, according to IDC's Malaysia Quarterly Tablet Tracker. Despite all the success among home users over the past two years, however, tablets have yet to gain noticeable traction in the enterprise space. Even as more powerful hardware is incorporated into 7-inch tablets, enterprise users still encounter constraints due to the lack of a physical keyboard and enterprise-centric apps. The tablet is still regarded as a status item among executives but not yet as an effective tool for content creation."

 Governance to take centrestage


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