2020. Will these 10 predictions shape the IT industry?

An elaborate study conducted by IDC* regarding the global foresight for IT industry shows that within the next four years, the global economy will finally reach “digital supremacy”, with more than half of the GDP driven by products and services from digitally transformed enterprises. 

This digital-first economy will demand an entirely new species of enterprise: one with a digital-first operating model that is quite different from traditional organizations, exhibiting these three core characteristics:

Hyperspeed: The ability to create and enhance digital services and experiences at a 100 times rate faster than today.

Hyperscale: Developing and deploying as many digital apps and services in the next four years as in the past 40 years and deploying those across billions of edge devices and millions of edge computing locations.

Hyperconnected: Amplifying their own innovative power by massively expanding their digital supply chains through open source and third-party code and data communities and creating new revenue streams by distributing their own digital services into others’ digital supply chains.

This IDC FutureScape* highlights key trends in IT industry wide technology adoption and presents the top 10 predictions and key drivers for the next five years:

Prediction 1: Hasten to innovation. By 2024, over 50% of all IT spending will be directly for digital transformation and innovation (up from 31% in 2018), growing at a CAGR of 17% (versus 2%for the rest of IT).

Prediction 2: Connected clouds. By 2022, 70% of enterprises will integrate cloud management — across their public and private clouds — by deploying unified hybrid/multicloud management technologies, tools, and processes.

Prediction 3: Edge buildout. By 2023, over 50% of new enterprise IT infrastructure deployed will be at the edge rather than corporate datacenters, up from less than 10% today; by 2024, the number of apps at the edge will increase 800%.

Prediction 4: Digital innovation factories. By 2025, nearly two-thirds of enterprises will be prolific software producers with code deployed daily, over 90% of new apps cloud native, 80% of code externally sourced, and 1.6 times more developers.

Prediction 5: Industry apps explosion. By 2023, over 500 million digital apps and services will be developed and deployed using cloud-native approaches, most of those targeted at industry-specific digital transformation use cases.

Prediction 6: Inescapable artificial intelligence (AI). By 2025, at least 90% of new enterprise apps will embed AI; by 2024, over 50% of user interface interactions will use AI-enabled computer vision, speech, natural language processing (NLP), and AR/VR.

Prediction 7: Trust is promoted. By 2023, 50% of the G2000 will name a chief trust officer, who orchestrates trust across functions including security, finance, HR, risk, sales, production, and legal.

Prediction 8: Every enterprise a platform. By 2023, 60% of the G2000 will have a digital developer ecosystem with thousands of developers; half of those enterprises will drive 20%+ of digital revenue through their digital ecosystem/platform.

Prediction 9: Multi-industry mashups. By 2025, 20% of revenue growth will be from “white space” offerings that combine digital services from previously unlinked industries, and one-fifth of partners will be from previously unlinked industries.

Prediction 10: Tech platform wars. By 2023, the top 5 public cloud megaplatforms will make up at least 75% of market share; the top 10 pure-play SaaS vendors will generate an average of nearly 20% of revenue from expanding PaaS solutions.

These predictions describe in the greatest detail how enterprises need to transform themselves to compete in the emerging digital-first marketplace: bringing digital supremacy to their IT budgets, expanding their digital reach, becoming digital innovation factories, mastering AI, increasing their commitment to digital trust, scaling up their own third-party developer ecosystem and wholesale digital revenue stream, proactively seeking partnerships around new multi-industry mashups, and rethinking their IT supplier relationships.

2020 will be, for sure, very challenging. Are you ready for that?

Source : IDC FutureScape: Worldwide IT Industry 2020 Predictions,
* International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets.