Managing Automation - February 2009 - (Page 12) INDUSTRY NEWS FULL COVERAGE MA NEWSLETTER TO SUBSCRIBE GO TO OF EVENTS AND ANALYSIS WWW.MANAGINGAUTOMATION.COM managingautomation.com Alliances, Executive Appointments, Mergers & Acquisitions, Products news For the maonline in perspective BY JEFF MOAD Record APPOINTMENTS Axeda, Questra Merger Reflects Slow Adoption Of Machine-to-Machine Tech BluePhoenix promoted CEO Arik Kilman to executive chairman of the board, and President Yaron Tchwella to CEO. i2 appointed Executive Chairman Jackson L. Wilson Jr. CEO, replacing Pallab K. Chatterjee, who is leaving the company. Infor named Greg Corgan president, global field operations and corporate senior vice president. Right Hemisphere tapped Todd Caponi for vice president of worldwide sales and George W. Earle for vice president of global enterprise services and solutions. Sage North America named Motasim Najeeb chief technology officer. Siemens PLM Software elevated Paul Vogel to executive vice president for global sales and services. Guy Langley replaces Vogel as senior vice president and managing director for EMEA, and Martien Merks was named senior vice president for Germany. Yahoo selected Carol Bartz, most recently executive chairman of Autodesk, as CEO and a director on the board. N CONTRACTS TDIndustries selected Astea’s FieldCentrix Enterprise software to improve billing cycles, increase technician proContinued on page 15 ot long ago, analysts and vendors customers and not just competing with each were predicting fast growth for the other,” Axeda Vice President of Marketing machine-to-machine (M2M) softBrian Anderson told Managing Automation at ware and services market. In a rethe time of the announcement. port published in 2007, research firm ABI Inc. “The M2M market has not lived up to exforecast that the market for M2M devices and pectations so far for several reasons,” says software would quadruple from John Canosa, president and 2006 to 2012, reaching $8 billion CEO of M2M start-up Palantiri annually. Systems and formerly chief techThe expectation was that nology officer at Questra. “The many manufacturers would jump combination of Axeda and at the chance to improve field Questra was inevitable. It was a service and even generate new matter of who was going to abstreams of service revenue by sorb the assets of whom. The using M2M technologies, which companies and the products are rely on sensors, wireless and so similar that they were just wired communications, and beating each other up in a server software to remotely market that wasn’t growing as John Canosa monitor equipment, such as fast as expected.” medical devices and printing presses. One of the reasons M2M market growth has But experts now say the M2M market has lagged, says ARC Advisory Group analyst Harry failed to live up to expectations. And, recently, Forbes, is that manufacturers have had difficulty two M2M application vendors, Axeda Corp. integrating the technology with their existing sysand direct competitor Questra Corp., antems and installed products in the field. nounced plans to merge. At the same time, Canosa says, M2M ven“Both sides agree we’d be better off as one dors such as Axeda and Questra have limited company focusing our energy on innovating for their growth by packaging M2M technology as Cloud Services Provide Shelter from the Storm NUMBERS Spending on IT cloud services will triple over the next five years, according to a forecast from IDC, reaching $42 billion by 2012. The research firm anticipates accelerated spending over the five-year period, so that in 2012 cloud computing will account for 25% of IT spending growth. A recent survey by IDC indicates that CIOs, IT executives, and line-of-business managers are embracing the online IT delivery model. Their interest is being fueled by the current financial crisis, IDC says. “The cloud model offers a much cheaper way for businesses to acquire and use IT. In an economic downturn, the appeal of that cost advantage will be greatly magnified. This advantage is especially important for small and medium businesses,” writes Frank Gens, senior vice president and chief analyst at IDC. Sources of Incremental IT Spending* Growth in 2012 — Cloud vs. On-Premise 485 480 475 470 465 460 455 450 445 440 435 430 Worldwide IT Spending ($ billions) 479.9 25% 75% 449.0 BY THE } Net new IT growth* = $30.8 billion IT cloud services growth On-premise IT growth 2011 2012 * Includes enterprise IT spending on business applications, systems infrastructure software, application development & deployment software, servers, and storage ma 12 2009 February Source: IDC http://www.managingautomation.com http://WWW.MANAGINGAUTOMATION.COM
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