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CCS Insight reveal 2018 predictions for the security, internet, mobile and enterprise sectors

November 2017 by CCS Insight

Global analyst firm CCS Insight has revealed its predictions for the, media,
Internet and enterprise and mobile sectors for 2018 and beyond.

This year, the predictions cover a broader array of technology areas than before,
with references to the impact of artificial intelligence, the rise of internet
players and their move towards the operator space, and the adoption of new business
models as market competition heightens.

In total, CCS Insight has made 90 predictions, including:

 Big Internet players take stakes in major telecom operator groups by
2020. The approach underlines Web players’ dependency on networks and connectivity.
The technologies involved are costly and operators prefer to make substantial
investments in existing providers that will influence their strategies. We expect
Facebook’s Telecom Infra Project to be a trigger in many markets. The move raises
significant Net neutrality concerns.

 Westerners born in 2016 will be the last adults to need passwords. By the
time people born in this year start using authentication features, biometrics will
have replaced Internet passwords. Cash machines and card payments will remain the
last bastion of PINs.

 Apple launches a subscription video-on-demand service in 2018. Building
upon its subscription- based Apple Music service, Apple closes the gap on rivals
such as Amazon, which has a strong position in hardware and services. The service
allows subscribers access from all their Apple devices for a fixed monthly fee. As
part of its efforts to differentiate, the company features original content
prominently.

 The automotive industry draws investment by big technology companies away
from other areas until at least 2027. The large size of the automotive market, with
its clear direction toward autonomous cars, attracts more and more investment in the
coming years, as companies deploy their best personnel and other resources.
Technologies in already-mature consumer categories such as smartphones are seen as
cash cows and do not benefit from major injections in innovation.

 By 2019, a national regulator mandates coverage of transport
infrastructure as part of a cellular licence award. The directive is focused on
achieving near-universal coverage on principal road and rail routes, most likely
using low-band spectrum such as 700 MHz, which is particularly suitable for
achieving wide-area coverage.

 Several leading operators make acquisitions in vertical markets to drive
strategies for the Internet of things. Operators recognise that connectivity
represents only a tiny fraction of the overall value of most projects in the
Internet of things. To exert more influence, a small number of deep-pocketed
providers place bold bets by diversifying into industry sectors. Examples include
Vodafone’s move into automotive and Verizon’s efforts in agriculture.

 In 2018, Google’s advantage in artificial intelligence starts to set
Android apps apart from rivals. The smartness of Google’s cloud and artificial
intelligence capabilities create an advantage for its services. Although this
enriches Google offerings on several platforms, it also manifests as a
differentiator for Android as Google starts to emphasize its operating systems as
the home for the best Google experience. In response, Apple steps up efforts to
communicate how its privacy stance aids rather than hinders users’ experience, but
Siri’s shortcomings in intelligence are a thorn in Apple’s side.

 The first IoT app store for machine learning skills launches in 2018.
Machine learning algorithms will be highly focused on vertical markets, based on
deep domain expertise, but increasingly run on horizontal market devices, such as
surveillance cameras, industrial gateways and micro-controllers. There is a clear
need for developers to make their algorithms commercially available to a broad array
of potential customers in an efficient way.

 By 2022, 75 percent of current platforms for the Internet of things
disappear. The number of cloud platforms for the Internet of things has grown to
more than 350 over the past few years and new ones are still being developed and
launched. With only a few customers, many of the smaller platforms are not viable.
There is a wave of change including full system replacements, mergers and
acquisitions, especially as customers buy key suppliers.

 A leading network operator adopts a radical new business model by 2021. In
a bid to combat stagnant revenue growth, operators seek to become global technology
players offering a wide range of contextual services. They look to build multiple
brand partnerships through revenue-sharing agreements, a strategy that aims to
better exploit strengths in scale, branding and customer relationships. This new
outlook reflects intensifying competition from Internet rivals and past failures to
effectively profit from the huge growth in mobile data.

"This year marks our 12th set of predictions and the transitions we are seeing
across our markets have never been more acute. Thanks to ever greater computing
power, ubiquitous connectivity and the rise of artificial intelligence and neural
networks, we anticipate an increasing rate of disruption across all areas of the
economy and people’s lives.

With anticipated consolidation across multiple industries and major players such as
Facebook, Apple and Amazon all beginning to move into new sectors such as sports
broadcasting, security and automotive, the market is moving at a pace we haven’t
experienced in twenty years," said Shaun Collins, CEO, CCS Insight.


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