Report by GP Bullhound also calls for the rise of data lakes / the death of relational databases and the rise of vertical AI SaaS offers and XaaS.
5G is everywhere at MWC19 in Los Angeles
The next generation of wireless connectivity announced its presence at Mobile World Congress Americas, reports Macy Bayern of TechRepublic.
Companies expect to see disruption in traditional data usage, storage and analysis models next year, with newcomers challenging the dominance of established brands in various markets, including edge computing and 5G, according to technology consulting and investment firm GP Bullhound.
The company’s 13th annual Technology Predictions 2020 report provided insights from its global team and discussed the top 10 trends and innovations of GP Bullhound that will impact the digital economy in the coming year. Amongst them:
5G presents an industry-disruptive technological evolution
This will significantly improve mobile computing capabilities, according to the report. The race to establish a claim as the founder of the first fully operational 5G network has created a battlefield around the giants in the telecom sector.
Traditionally major players in this space, including Qualcomm, Samsung and Huawei, will be some of the most important companies competing for this claim in the coming year.
SEE: Mini glossary: 5G terms you need to know (free PDF) (TechRepublic)
Data lakes increase as relational databases become extinct
Structures and methods for processing and storing data – 80% of which are unstructured – will be aligned in 2020 with the increasing amounts of complex data generated worldwide.
The world generates so much data in such a complex way that relational databases are no longer suitable to be the optimal storage method, the report said.
“In the age of big data and IoT, data lakes serve multiple incredibly important functions that position it to replace the relational database for many businesses.”
New software offers that use machine learning and AI can include a variety of data sources, making it possible to switch from data warehouses to data lakes, which are also cheaper to use, said Brandon Overmyer, vice president at GP Bullhound.
“The only way we can do that now is with tools that can be connected to a data lake so that you can understand that data,” Overmyer said.
Vertical AI SaaS solutions have the edge above horizontal
According to Forbes, 25% of organizations worldwide that already use AI solutions report up to 50% failure rate.
As the level of education increases and leaders truly understand where artificial intelligence (AI) can improve their business, companies will look for vertical solutions that address these challenges, leading to dramatically improved AI implementation success rates, according to the report.
Because the term AI has become ubiquitous, the effectiveness and results component are really missing, Overmyer said. A whole range of companies have emerged that focus on specific customer segments, from HR recruitment to the restaurant industry that “exploit the predictive nature of AI and train with a very specific toolset,” he said.
The 5G battle will be the most important advance in the technological infrastructure
The race to set up a 5G network has stimulated a war between existing giants from the telecom sector to achieve the status of first 5G provider, “the report said.
On the side of the network operator, T-Mobile and Sprint can lead the way, Overmyer said. But he added that row one with AT&T and Verizon “will not drop slightly. So our prediction is this year they will all be at war trying to get their foot on the ground.”
Due to the streaming frenzy, one premium competitor can come alongside Netflix
In 2020 a fundamental shift will take place in the way viewers consume traditional film and TV content, from cable channel productions on televisions to on-demand content platforms available on every device.
Netflix remains the anchor platform, but another premium platform will attract consumers’ attention – perhaps Hulu, HBO Max, Amazon Prime, Disney +, Peacock or Apple TV +.
Everything as a service (XaaS) will grow
In 2020, commercial companies will continue to change their range of products and services into pure-as-a-service models.
HP recently announced plans to switch over time to an as-a-service model and to offer its full portfolio of business solutions through subscription-based, pay-per-use and as-a-service payment models . The goal is to offer its customers a better choice, flexibility and control, according to the report.
“SaaS is now the standard approach and delivery model,” says Alec Dafferner, a partner at GP Bullhound. One driver is “the sticky relationship you get with your customer, where it’s not a one-time transaction, it’s a continuous relationship. It’s all about customer retention.”
Another driver, Overmyer added, is that increasing comfort organizations are using the cloud.
Providers of Edge computing will shoot like mushrooms out of the ground
From now on edge computing offers a third option for traditional private versus public cloud structures, using a combination of both centralized and decentralized data processing.
Expect in 2020 that the number of startups and mid-sized companies that provide computing, network, infrastructure and cyber security to increase the lead predicted GP Bullhound.
“These players want to offer a viable alternative to a single cloud solution and challenge existing large companies such as Amazon Web Services, Microsoft Azure and IBM Cloud.”
Predictions that have not come true
There are two findings from last year’s report that the company did not accurately predict: “the end of the boys’ club” and “cryptocurrency will grow up.”
A more appropriate title for the first would have been: “The beginning of the end of the boys’ club, because we are starting to see improvements, but have a long way to go,” the report said.
And the possible manipulation of bitcoin prices continues to “question the transparency of the market and ultimately it is used as an investable investment category,” the report said.
The link to the full report is here.
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