As digital transformation reaches the acceleration point for organizations, organizations are at a stage where they to make previous investments sustainable.
International Data Corp.’s (IDC) FutureScape report, highlights the midterm and long-term challenges that enterprise IT teams face as they define, build, and govern the technologies required to thrive in a digital-first world:
The report, which covers the Asia Pacific (excluding Japan) (APEJ), predicts that in 2023, 70% of enterprises’ adoption of as a service (aaS) infrastructure or software “will be curbed more by an inability to assess promises of faster innovation and operational gains than by cost concerns.”
IDC predicts ‘as-a-Service’ solutions will be in demand in next two years
IDC IT industry predictions for 2021 and beyond
“The digital business era marks a new generation of thinking that focuses on purpose-driven values, leading to financial results, ecosystem participation in the value chain, and sustainability as core operating principles,” said Sandra Ng, group vice president and general manager, IDC Asia Pacific including Japan (APJ) Research. “The enterprises that can close the new digital gap through the greatest business value impact will become market leaders of tomorrow.”
Here are IDC’s top 10 predictions and key drivers for the IT industry for the next five years in APEJ.
1. Business-Focused aaS: By 2026, over 40% of IT budgets in most Asia-based 500 enterprises will be allotted to connectivity, security, compute, and data assets used to deliver their own aaS processes and smart products.
2. Tech by Wire: In 2025, 70% of infrastructure, security, data, and network offerings will require cloud-based control platforms that enable extensive automation and promise major reductions in ongoing operating costs.
3. Skills Breakpoints: Through 2024, shortcomings in critical skills creation and training efforts by IT industry leaders will prevent 75% of businesses from achieving the full value from the cloud, data, and automation investments.
4. Digital Sovereignty: Sovereign assertions in sustainability, resilience, and asset residency through 2025 will force A1000 CIOs to shift staff, budgets, and operating processes for more than one-third of IT and data assets.
5. In Name Only aaS: In 2023, 70% of enterprises’ adoption of aaS infrastructure/software will be curbed more by an inability to assess promises of faster innovation and operational gains than by cost concerns.
6. Expertise Included: By the end of 2024, 50% of platinum-level aaS offerings in security, business operations, and Desktop as a Service (DaaS) will include bundled access to specialized SME teams to help reduce the impact of skills shortages.
7. Tech Exposure: In 2025, up to 10 high-visibility digital product launches reliant on intelligent automation and aaS delivery will face major delays because of global or regional silicon and code supply chain issues.
8. Control Overload: Through 2026, 40% of A1000 enterprises attempting to use tech-by-wire offerings will still struggle with a proliferation of siloed control systems that raise connectivity costs and limit sharing of data.
9. Trusting the Automation: In 2026, 25% of A1000 enterprises will continue to face material risks because of frontline workers’ and business leaders’ unwillingness to trust actions initiated by vetted autonomous tech systems.
10. Sense of Vision: By 2027, the ability to deploy and use machine vision as an inherent capability in any new product/process will be a primary characteristic of the five fastest-growing enterprises in most industries.