Broadgate Predicts – 2013

Posted on : 31-12-2012 | By : jo.rose | In : General News

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As 2012 draws to a close we look forward to some themes for 2013.

These are our views, not analysts or market research firms. They are general observations and what we have determined during our interactions with clients over the past 12 months as to how we see the industry shaping. Let us know what you think if you can by completing the survey.

  1. Infrastructure Services continue to commoditise – for many organisations, Infrastructure as a Service (IaaS) is now mainstream. Technology advancement will continue to move the underlying infrastructure more towards a utility model and reduce costs in terms of software, hardware and resource.
  2. Application/Platform rationalisation – for many large firms there is still a large amount of legacy cost in terms of both disparate platforms, often aligned by business unit, and their sheer size/complexity. The next year will see an increase in rationalisation of application platforms to drive operational efficiency.
  3. Big Data/ Data Science grows and market starts to consolidate – 2012 was the year that Big Data technologies went mainstream…2013 will see an increased focus on Data Science resource and technology to maximise the analytical value. There will also be some consolidation at the infrastructure product level.
  4. Data Centre/Hosting providers continue growth – fewer and fewer companies are talking about building their own data centres now, even the very large ones. With the focus on core business value, infrastructure will continue to be hosted externally driving up the need for provider compute power.
  5. More rationalisation of IT organisations – 2012 saw large reductions in operational workforce, particularly in financial services. With revenues under more pressure this year (and in line with point 1) we will see more reductions in resource capacity and relocation to low cost locations, both nearshore and within the UK.
  6. Crowd-funding services continue to gain market share – there have been many new entrants to this space over recent years with companies such as Funding Circle, Thin-Cats, Bank-to-the-Future and Kickstarter all doing well. We see this continuing to grow as access to funds from traditional lenders is still hard. The question is at what point will they step in.
  7. ‘Instant’ Returns on investment required – growth of SaaS & BYOD is changing the perception of technology. People as consumers are now accustomed to an instant solution to a problem (by downloading an app or purchasing a service with a credit card). This, combined with historic patchy project successes, means that long lead-time projects are becoming  harder to justify; IT departments are having to find near instant solutions to business problems.
  8. Technology Talent Wars – with start-ups disrupting traditional players in areas such as data analytics, social media and mobile payment apps, barriers to entry eroding and salaries on the rise we see a shift from talent wanting to join industries such as financial services and choosing new technology companies.
  9. Samsung/Android gain more ground over Apple – we already have seen the Apple dominance, specifically in relation to the Appstore, being eroded and this will continue as the potential of a more open platform becomes apparent to both developers and users of technology.
  10. The death knell sounds for RIM/Blackberry – not much more to say. Most likely they will be acquired by one of the big new technology companies to gain access to the remaining smart phone users.
Click here to take part in our 2013 predictions survey.

A look back at 2012

Posted on : 31-12-2012 | By : jo.rose | In : General News

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It’s been an interesting 2012 at Broadgate Consultants – we are now in our forth year and we continue to expand our services and client base in line with our business plan. We started just as the recession started and are still in one. Ironically, we actually believe that this has contributed to our success, making us more aware of fixed costs and focusing on agility and value for our clients.

Recently, one of the partners sent me a snippet from the Office for National Statistics showing that four in ten firms set up in 2008 have folded. All together nearly a million businesses have shut down! (and the survival rate is getting worse…). Not too bad then…

So what have we done in 2012? Here are a few highlights;

  1. We built on our four key service areas of PMO, Cloud Assessment, Business Intelligence and Security through successful client deployments
  2. We extended our client base further, from Retail Banking, Investment Management and Capital Markets into Energy, Insurance, Manufacturing and Media
  3. We ran the first Broadgate Innovation & Networking event in September, bringing together technology leaders and showcasing new, innovative companies in the areas of Big Data and Social Media Analytics
  4. We announced further cooperation with the Technology Start Up community through our partnership with TechMeetups which will run through 2013

And what about looking at our predictions for the year. Well, of the 10 that we published at the beginning of the year, I think we did really well at gauging the key themes. You can check for yourself here…but let’s pick out a few.

  • Cloud Computing Gathers Pace: this has certainly been a key attention area and one that we think will be seen to enter the mainstream from now on. Many organisations previously cautious or reticent to explore the cloud for delivery of technology services have changed their stance and are looking to further increase deployment within their operating model.
  • Mobility: we predicted an increase in the mobile payments area with new entrants increasing market share. Again, this has been a key theme for 2012. The large retail banks and card issuers have all further developed services, whilst mobile payment providers such as Monitise and Square have all had solid growth. Alongside this, the demand for BYOD support has accelerated together with an industry of new technologies supporting it.
  • Increased IT Commoditisation: this is an area which continues to be a part of the CIO agenda, with utility compute and particularly access to Infrastructure as a Service now reaching a level of maturity to instill confidence. The challenge, however, is one of both speed of execution and culture within large scale technology organisations.
  • Risk, Regulations and Compliance Spending Increases: well…in many organisations this is certainly the case and as a proportion of the discretionary budget, often these mandatory changes are the only ones seeing any significant level of funding.

2012 also brought with it a lot of turmoil within back office support organisations, particularly within financial services. With continued pressure on revenues and margins, costs came under an even more stringent analysis. As a result, we have seen large reductions in workforce, which is always difficult at a personal level.

However, we’ve also seen some exciting developments in the world of new technology. The traditional lifecycle of a company from inception through to IPO/acquisition has shortened dramatically. New innovations are brought to the market with incredible speed and success, challenging the larger applications and infrastructure vendors to think differently about the size and relative value of their products (or, of course join the queue of suitors….).

In our other article this month we will outline our predictions for 2013, along with the opportunity to join us for a very short survey.

We hope that all our readers have enjoyed our monthly articles and have had a successful 2012. We wish them all the same in 2013.