December 2, 2005 10:37 AM PST

IDC: Tech to see 'Google effect' next year

Next year will bring moderate growth in IT spending, which will push many vendors into taking the plunge and developing some disruptive business models.

That's the view of analyst group IDC, which on Thursday published its predictions for the coming year.

IDC predicted that global spending on IT would grow by 5.5 percent in 2006. Coming on the back of 6 percent growth in 2005, this will force more technology companies into offering IT as a service, predicted Frank Gens, senior vice president of research at IDC.

"A critical new ingredient we'll see (in 2006) is the acceleration of disruptive business models; 'open innovation' in IT product and service development--the open-source effect--and online delivery of IT as a service--the Google effect," Gens said in a statement. "These disruptive shifts will force most vendors to perform a strategic 'gut check' as they enter the year."

The "Google effect" that Gens described would be prompted by the fear that the search giant will dominate more markets in the years ahead.

"While much of this disruption will be years in the making, and will be overhyped in 2006, the more important impact of 'Google as a disrupter' will be as a spur for traditional suppliers to disrupt themselves before competitors do. This will be evident in enterprise applications, information management and IT services," IDC said.

Gens also believes that open-source-like collaboration will grow in popularity.

"Most of the big market share leaders in IT--e.g., Microsoft, IBM, Oracle, SAP--got that way by keeping tight control over their own product development. The 'go it alone' model of innovation is an endangered species in the IT industry, and incorporating a community-based innovation model--e.g., open source--is quickly becoming an important ingredient for market leadership," IDC said.

"In 2006, IDC believes that building more open innovation communities will be a big focus for IT leaders--including Microsoft," the analyst firm predicted.

This year has seen a clutch of acquisitions, from Adobe Systems' merger with Macromedia to eBay's purchase of Skype. IDC expects that this trend will continue in 2006, as few vendors have finished reshaping themselves.

Graeme Wearden of ZDNet UK reported from London.

7 comments

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Blog Spam?
I think this article has just been hit with the equivalent of blog spam.
Posted by Wuzzard (10 comments )
Reply Link Flag
Relatively Speaking... is it possible to Google Microsoft;and,...
...also "Google"__ Google in a disruptive manner by offering ads-free computer hardware and software to small and medium companies worldwide -- they however enter into a "desktop services" (plus hardware and software upgrade -- "OS/2, Linux and OpenOffice distros") contract with companies such as, lets say -- Intel, Sun, IBM and Lenovo for 3-5 years.
Posted by Captain_Spock (895 comments )
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My God...
What is happening to CNet?

The articles are nothing but pure hype -- practically written by the PR division of Google -- and the comments are spam.

What happened to this site?
Posted by Betty Roper (121 comments )
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More specifics on your comment?
Comments vary by the poster, certainly.

As to the quality of the articles, please be specific, or reply to the author (bylines are linked to email addresses) directly with comments or questions.

Thanks for reading CNET News.com.

John Roberts
CNET News.com product development
Posted by pencoyd (82 comments )
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Very Well Thought Out Predictions!
>>>>"A critical new ingredient we'll see [in 2006] is the acceleration of disruptive business models; 'open innovation' in IT product and service development--the open source effect--and online delivery of IT as a service--the Google effect," said Gens in a statement. "These disruptive shifts will force most vendors to perform a strategic gut check as they enter the year."<<<< Let us all sit back and wait and see how these will come through in 2006! ;-)
Posted by Captain_Spock (895 comments )
Reply Link Flag
"this will force more technology companies...
... into offering IT as a service, predicted Frank Gens, senior vice-president of research at IDC"; and, Coming_soon_with_ a_disruptive_business_model_will_be:

<a class="jive-link-external" href="http://www.OrionResourcesIntl.com" target="_newWindow">http://www.OrionResourcesIntl.com</a>
Posted by Captain_Spock (895 comments )
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Google
Google is fast becoming the money gouging company that Yahoo
and Overture represent.
Posted by FanStarMike (5 comments )
Reply Link Flag
 

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