IT's self-inflicted ills face a consolidation 'cure'

In a harsh assessment of the tough economic climate that has profoundly impacted the state of IT today, Gartner placed the blame squarely on the shoulders of industry, claiming much of the current malaise is self-inflicted.

In a harsh assessment of the tough economic climate that has profoundly impacted the state of IT today, Gartner placed the blame squarely on the shoulders of industry, claiming much of the current malaise is self-inflicted.

"The condition of the industry is not due to lack of demand, it is self-inflicted," Asia-Pacific research vice president Kristian Steenstrup told delegates in an open panel debate predicting the future of IT.

He was joined by Gartner's Asia-Pacific senior vice president Bob Hayward who was even more blunt in his assessment, claiming IT costs too much and there is a lack of ability to change infrastructure.

Put simply, Hayward said the industry has survived on hype and great expectations.

"Infrastructure is too fragile, complex and expensive and IT risks are not explained or appreciated," he said.

At the same time, Hayward said there are too many vendors selling the same thing, for example: there are 150 companies selling data mining. There are too many vendors unable to articulate or differentiate their value proposition which Asia-Pacific research director Dion Wiggins said has led to the current climate of 'burn and churn' and massive vendor consolidation between now and 2005.

Gartner's hot prediction: 50 % of current suppliers will be eliminated in the next few years.

"There are 2,300 publicly traded software companies all waiting for the good old days, that is 60 % too many," Wiggins said.

As a result of consolidation and vendors buying functionality rather than building it, Wiggins said there will be little innovation between 2004 and 2007.

With vendors trying to be everything to everyone there will be a renewed battle for infrastructure control with Gartner's North America vice president Betsy Burton warning users there is a need to focus on architecture more than ever before.

Burton said the likes of SAP, Siebel and Oracle will package applications to support a broader software environment and try and take control. With applications dictating infrastructure, she said no more than 35 % should come from a single source.

Burton said all the big vendors are moving towards end-to-end processing that broadens their technology stack so users should keep their architecture open and flexible to avoid lock-in with a single supplier.

In other predictions, Gartner said that within three years it will be almost impossible to buy a non-wireless device. Analysts also predict there will be 80 % more mobile applications in the enterprise by the end of 2004. And the impact will be huge as most IT shops don't have a budget to address governance and security issues surrounding mobile applications.

The Asia-Pacific region will lead wireless innovation and usage and customers will use contracts more to protect themselves.

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