IT Governance and Executive Strategies

Photo of Stephen MintonOffline

Photo of Stephen MintonOffline

While it’s no surprise to learn that ICT spending continues moving to the 3rd Platform, or that new technologies like AR/VR and cognitive AI continue to deliver double-digit rates of growth during the current early stages of deployment and prototyping, there are many geographic differences in the way that new categories are gaining traction (or not) in different country markets and what this means for the likely economic benefits in the next 5-10 years.


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The 3rd Platform, including cloud, mobile, social and big data and analytics in addition to new technologies which IDC calls “Innovation Accelerators”, already accounted for more than 60% of worldwide ICT spending in 2016, and will grow to more than three quarters of industry revenue by 2021. But within that headline statistic, significant regional variations have emerged as 3rd Platform business models develop around the world.


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While IT spending is broadly heading in the right direction this year, thanks to upgrade cycles for cloud and mobile, there’s a lot of underlying activity across vertical industries which makes analysing and identifying opportunities a more complex exercise. In fact, having access to a full view of your target markets by industry and company size should be required reading for any strategic or tactical planning exercise. Only by understanding the direction of IT spending at an industry level can you hope to formulate a complete picture of upside and downside scenarios for both the short and the long term.


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While a lot of attention has rightly shifted to the long-term promise of new technologies like IoT, artificial intelligence and augmented reality, we haven’t yet reached the endgame in terms of the opportunities surrounding the migration to cloud and mobile platforms which have largely driven the IT market since 2012. In fact, vendors which have gone through the sometimes painful process of shifting their business focus to the 3rd Platform over the past five years should be rewarded with improving fortunes in the next 12-18 months.


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ICT Industry trends from 2015 - 2020, based on data from IDC's Worldwide Black Book (3rd Platform Edition). Learn 3rd Platform Opportunities, Impact on IT Spending by Innovation Accelerators and a broader view of worldwide ICT Spending.


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IT spending is predictable, until it’s not. Upgrade cycles and product development are usually well understood, and an increasing proportion of tech spending is driven by a smaller group of customers (service providers and consumers). As the cloud becomes more and more central to the way that en-terprises purchase and consume technology, so the overall market becomes increasingly hitched to the infrastructure investments which drive those services. Meanwhile, a large proportion of consumers continue to upgrade smartphones on a 2-3-year cycle, while PC and tablet upgrades move at a slower pace. And network investments are more stable than ever, both from enterprises and service providers, as businesses (and consumers, for that matter) become more and more reliant on the net-work for their mobile and cloud-based services.



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