TMT Blog: What’s hot and what’s not

We have reached that point in January when it feels a bit too late to say “Happy New Year” to anyone you haven’t seen since the festivities. And we have also reached that point in January when most of the predictions for what’s going to be hot in TMT in 2016 have been made, hence I thought it might be a good time for a whistle-stop roundup of those predictions.

It wouldn’t be a post about hot TMT markets if we didn’t mention data & analytics and, following a review of analyst views, it still seems that this remains the (absolutely vast) area most tipped for high value M&A in 2016. In fact, the whole Social, Mobile, Analytics and Cloud (SMAC) market continues to dominate headlines with cloud delivery services being another particular area of focus going into the new year.

This year, the world of gaming is expecting to see bigger things from virtual reality technology which has thus far failed to tip over into the mainstream. There are 3 big new virtual reality headsets due to arrive before the Summer which are expected to shake up the gaming market as well as influencing the worlds of education and communication.

Digital security, described by Forbes as the “required trend”, continues to fuel a vast amount of M&A – with strategic buyers in particular shoring up their portfolios with bolt-ons as they struggle to keep pace with the changing environment – and, conversely, easing security concerns will see mobile payments going even bigger this year with technologies such as touch commerce driving online sales to mobile.

Last but not least, hot on the tails of immense success of businesses such as Uber, location-based technology is set to be a huge trend in 2016. A number of industries are adopting the technology to enhance the efficiency of their supply chains, with the retail and food & beverage industries being particularly high adopters.

I nearly left off the last prediction, that the end of the year may spell the end of the bubble in the Tech market, but a lot of analysts out there are calling it – so in the interests of full disclosure, there it is. Possibly (probably) a serious issue for the unicorns and decacorns out there but, at this point, difficult to predict how meaningful this will be to the mid-market where values are typically less inflated meaning there is considerably less far to fall…