Industry executives and experts share their predictions for 2020. Read them in this 12th annual VMblog.com series exclusive.
By Casey Clegg, Chief Revenue Officer, PubNub
Realtime Experience Will Dominate Markets like Gaming and Healthcare in 2020
Looking back at 2019, instant access to data, information,
and communication across markets was paramount, as shown in everything from
food delivery apps, dating and rideshare "Unicorns." As larger sums of data
stream through organizations and applications hit scale, unexpected limitations
and challenges appear from connection limits to network fragility, to
geographical delivery complexity. Once these problems are solved, new types
industries can be fully transformed, and we predict the next wave of new communication
experiences for customers (and provide new puzzles to solve for developers) will
fall into the gaming and healthcare spaces.
Realtime Gaming
There has been a trend over the past few years around social
gaming interactions by users moving into platforms like Discord. Game studios
have largely ignored this trend because users expect social interactions
through chats and forums to mirror the realtime communications they have with
popular platforms like WhatsApp and Slack. Small cues and design elements
determine whether a user will communicate over the channel provided by the game
or seek an out-of-band communication method.
In the last year there have been large innovations in
machine learning and artificial intelligence that both bring down the cost of
compliance and enable game studios to better make use of the data from social
interactions within their games to drive user retention and monetization. In
addition, several platforms for realtime communications, such as chat, have
made it drastically more cost-effective to deliver a social interaction
experience that users expect. In 2020 we will see a move by gaming studios to
add in-game social interactions and move their users away from interactions on
social platforms like Discord.
There are three primary happenings in gaming that will
affect how both players and developers think about the games they play and the
interactions in which they participate. The first trend surrounds where gamers
interact with each other, whether that's in-game using developer-provided
communication methods such as in-game chat and voice communication, or whether
they go out-of-band to use a service like Discord.
The challenge here lies in providing an experience for
gamers that is at least at parity with the experience they have come to expect
from other services. Advances in machine learning and artificial intelligence,
as well as the rise of technologies that bring down the cost of developing
services such as chat have started to chip away at both of these difficulties
and gaming studios will aim to leverage the both of these in 2020 to create
better gaming experiences.
In 2020 you can expect gaming studios to leverage
technologies that will simplify these key problems and enable them to focus on
the core experience that they want to deliver and then capitalize on down the
line. With the level of competition in the market, game studios recognize the
value of creating these experiences but to date have been unable to justify the
investment required. In 2020 we expect that to change as gaming studios aim to
drive user retention and monetization in a competitive market.
Gaming experiences are increasingly in realtime, both as
part of the game mechanics and in how gamers interact with each other. Whether
it's building a chat that reliably delivers messages, updating in-game location
as soon as it happens, or displaying a live leaderboard to foster competition,
gaming studios are hard-pressed to deliver on this promise as well as be
compliant, and on top of that provide additional value to gamers and derive
additional value from their player base. This creates the situation where game
studios in 2020 will increasingly seek to leverage data and create better
realtime experiences in competitive markets by capitalizing on opportunities to
make use of emerging technologies that simplify their pain points and minimize
opportunity cost to ultimately get that "Win" on their record.
Realtime Healthcare
Healthcare providers are constantly looking for ways to
provide better patient care. This stems not only from the desire to have happy
and healthy patients, but also from the business need to streamline operations
to maximize profit, and to ensure customer satisfaction and retention. We're
already seeing this change happen with smaller healthcare firms, who aim to
focus on delivering quality care to patients in ways that are both convenient
for their patients as well as for the firms themselves. The advent of always-on
technology and the mass-market adoption of such technologies and ways of living
have spurred on healthcare providers to create ways to communicate with their
patients and deliver care in a way that makes it easy for everyone involved.
We can expect that coordination of patient care will be a
hot topic in 2020 for those in the healthcare industry. With realtime
technologies and cost-saving approaches made possible by the new economy and
machine learning and artificial intelligence, we can surmise that the focus on
logistics and operations will only intensify to leverage these new
opportunities and improve both patient care coordination and profit margins.
Healthcare moves at a much slower pace than other sectors
due to the vast array of regulations and the legwork that comes into play in
order to make the smallest changes. Established healthcare particularly
struggle to keep up with the pace of innovation even where they want to, while
new firms are hard-pressed to even compete with the big firms due to the deep
pockets required to even start up. In this sense, both sides struggle with the
time it takes to get to market in any scenario, and we expect in 2020 they'll
start to look at vendors and methods that enable them to move more quickly and
guarantee compliance with HIPAA and other regulations so that they can focus on
improving patient care instead of investing heavily in making sure that their
new technology investment is always compliant with federal and state
regulations.
We're excited to see what 2020 has in store for these major
markets to fully transform and create a more instant, immersive customer
experience, as the tools for developers to provide these services continue to
get more comprehensive.
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About the Author
Casey Clegg is Chief Revenue Officer at PubNub, with over a decade of experience
building developer-focused sales teams. Prior to joining PubNub, Casey was part
of the sales leadership team at Twilio that drove 15x growth in revenue over
five years culminating in the 2016 IPO. Before that, Casey started and built
the API business unit at Yodlee, growing the division to half of all revenues
in the years leading up to the company's IPO. Casey is a graduate of New York
University and has an MBA from UCLA Anderson.