16-Jan-2020 12:38 PM
Posted by Prashanth GJ, CEO, Technobind
The year 2019 wasn’t an easy one for the global economy. Fears of an impending recession, the US-China trade war and the potential impacts of Brexit along with other factors have been casting a shadow over future prospects. India too has been going through weak economic situations in the past many months with various industries witnessing headwinds. 2020 too, economists say, will most likely present a complex situation.
Amidst these uncertainties however, there are reasons for players in the IT industry to stay optimistic. Various estimates indicate that the IT spending in India will be on an upward spiral. Gartner calls 2020 ‘the rebounding year for India’s IT spending’ with total spending predicted to rise to $94 billion, which is a healthy 6.6 percent growth from the last year. Business spending on IT is expected to grow at an impressive 9 percent in 2020.
The slow economy notwithstanding, says the research agency, businesses show resilience and continue to invest on technology. It’s evident that IT has moved well past beyond being a cost center to one that fuels innovation and growth even during the tough times.
As we begin to take another year in hand, I think it’s important to look back and understand what technologies really inspired organizations to continue investing.
Here are the four broad areas that propelled IT spending across segments in 2019.
Data: 2019, in many ways, was the banner year for ‘data’. Investments and efforts around technologies that harness the power of data literally surged in the last one year. Digital transformation initiatives mandated new ways of utilizing data. From redefining customer experiences, to the way we design/build products to enhancing business processes, ‘data’ was at the heart of critical enterprise strategies in 2019. The Chief Data Officer became a vital position in 2019, with almost all the large enterprises appointing CDOs. From merely managing data and analytics projects, CDOs focused on managing profits and loss in 2019.
Analytics: Analytics has been right at the top of the CIO’s priority list for many years now. The analytics market itself went through a transformation in the last one year, with the surge of new tools and solutions that democratized the technology. Self-service analytics, predictive analytics and augmented analytics emerged as key trends in 2019, with organizations of all sizes investing heavily on these areas. In larger organizations, we saw analytics becoming a true business discipline in 2019. According to Market Research Future forecast, the global data analytics market will grow at the rate of 30.8 percent through 2023, reaching a market value of $77.64 billion by the end of the period.
Artificial intelligence and other advanced automation technologies: By 2022, spending on cognitive and AI systems is predicted to reach a whopping $77.6B, which is more than three times the value estimated in 2018, according to IDC estimates. For reseller partners, there is massive opportunities that AI, ML and RPA brings, even for those who have not invested heavily on building these capabilities. Areas like high performance computing, smarter and faster storage, and associated networking infrastructure are all markets that our partners were able to effectively leverage in 2019. The initial scepticism around AI technologies gradually gave way to partners adapting new customer strategies and product positioning.
Cloud: Cloud continued to be a key driver of enterprise IT spending in 2019. We also witnessed a clear shift in spending from traditional on-premise infrastructure to more agile cloud-based models. For the resellers, who have focusing primarily on traditionally growing areas like systems infrastructure, 2019 was a year of reckoning. Those who refused to change and alter their strategies stood to lose. But, for those who adapted well, cloud presented numerous opportunities. It was also a year when we saw many partners proactively moving out of tried and tested models like on-premise technology procurement and project-based deployments. Some of the fastest growing areas for our partners included cloud migration and related services, security & encryption on cloud, cloud management services and data availability solutions on cloud.
In the next one year, the momentum created by these four technologies will continue to rise up and 2020 will not disappoint the IT reseller community.