- IDC forecasts AI solutions will permeate enterprise applications and deliver over $52B in global market revenue by 2021, attaining a compound annual growth rate (CAGR) to 46.2% through 2021.
- By 2024, AI-enabled user interfaces and process automation will replace one-third of today’s screen-based apps. By 2022, 30% of enterprises will use conversational speech tech for customer engagement.
- By 2022, the top four cloud “mega platforms” will host 80% of IaaS/PaaS deployments, by 2024, 90% of Global 1000 organizations will mitigate lock-in through multi- and hybrid cloud technologies and tools.
- IDC forecasts global spending on security solutions will reach $120.7B in 2021 with a 2018-2021 CAGR of 10.0%.
Calling the rapid digitization of competitors and industries a clock ticking loudly in the heads of every CEO, IDC advises enterprises that if they’re not digitally transforming their companies at an aggressive pace, that by 2022, just over two-thirds of their total addressable markets will be gone. Nothing short of a wholesale reinvention of enterprises’ digital innovation capabilities is needed. These and many other insights are from IDC FutureScape: Worldwide IT Industry 2019 Predictions, the research and advisory firms’ top 10 predictions and key drivers for the IT industry over the next five years. It’s an informative, quick read and it’s available for everyone to download from the IDC site here (PDF, 26 pp., opt-in).
IDC often ranks their predictions by cost/complexity to address and prediction timing. The following graphic provides their top 10 predictions for 2019 ranked by these two factors:
IDC Top 10 Predictions For Worldwide IT, 2019
- Prediction 1: Digitized economy. By 2022, 60%+ of global GDP will be digitized, with growth in every industry driven by digitally enhanced offerings, operations, and relationships and almost $7 trillion in IT-related spending in 2019–2022.
The most effective digitally-driven initiatives in business today balance digital business optimization and the creation of new business models through digital business transformation. IDC believes the most effective organizations at digital transformation balance these two broad initiatives to deliver measurable financial results. It’s easier to sell digital business optimization internally to a CEO and board of directors because these are the strategies focused on improving productivity, increasing revenue from existing products and delivering a better customer experience. It’s more challenging to reinvent core business models, so they are competitively strong enough to deliver revenue quickly. IDC says every business must take on this challenge or risk two-thirds of their addressable market vanishing by 2022. Amazon’s prolific ability to generate new business models and aggressively grow revenue is a case in point.
- Prediction 2: Digital-native IT. By 2023, 75% of all IT spending will be on 3rd Platform technologies, as over 90% of all enterprises build “digital native” IT environments to thrive in the digital economy.
IDC sees 3rd Platform technologies dominating enterprise IT spending in five years, with legacy systems selectively being used to support digital transformation. Distributed cloud, AI at the edge, hyperagile app technologies and architectures, and AI-powered voice UIs are integral to how organizations will use 3rd Platform support to enable digital transformation.
- Prediction 3: Expand to the edge. By 2022, over 40% of organizations’ cloud deployments will include edge computing and 25% of endpoint devices and systems will execute AI algorithms.
AI services will be the most transformational of public cloud capabilities being deployed across the distributed/edge cloud foundation by 2022 according to IDC’s prediction. Also by 2022, any endpoint device…