Last week, IDC presented its top 10 predictions for IT industry for 2021. The report highlights how enterprise IT teams are navigating the challenges posed by the pandemic and seeking to gain competitive advantage in the new normal.
The pandemic has not just spared but has accelerated digital growth. Despite the disruptions caused globally, enterprise IT teams are marching towards what the report refers to as “digital destiny” as most of the products and services today are either based on digital delivery models or require digital capabilities to stay in the competitive playground. The IDC report states, “65% of global GDP is digitalized by 2022, driving $6.8 trillion of IT spending from 2020 to 2023.”
Rick Villars, group vice president of IDC noted, “The COVID-19 pandemic highlighted that the ability to rapidly adapt and respond to unplanned/unforeseen business disruptions will be a clearer determiner of success in our increasingly digitalized economy. A large percentage of a future enterprise’s revenue depends upon the responsiveness, scalability, and resiliency of its infrastructure, applications, and data resources.”
The top ten IT industry trends for 2021, according to IDC are:
IDC’s Technology Trends for 2021
1. The Shift to Cloud-Centric Accelerates
IDC prediction stresses that CIOs should push the transition into cloud-centric IT models to remain competitive and make the organization digitally sustainable. IDC report indicates that “By the end of 2021, based on lessons learned, 80% of enterprises will put a mechanism in place to shift to cloud-centric infrastructure and applications twice as fast as before the pandemic.”
2. Edge Becomes a Top Priority
According to IDC report, 80% of the edge-driven investment and changes in business model will be driven by the changes that pandemic brought upon the workforce and operational practices.
There will be an increase in the adoption of cloud-centric solutions that enable organizations to be more agile to the changing business needs and build flexible and scalable business.
3. The Intelligent Digital Workspace
IDC predicts that, in the next three years, 75% of Global 2000 companies will focus on providing technical parity for their workforce that would be hybrid by intentional design, rather than driven by circumstances. This will enable the workforce to be more productive, informed and collaborative.
4. The Pandemic’s IT Legacy
The technical debt incurred due to forced cloud migration and IT agility during the time of the pandemic might cause financial stress to the CIOs through the next three years. IDC indicated that 70% of the CIOs will be subject to such stress through 2023. Sharp CIOs will continue to seek opportunities to build sustainable digital capabilities for next generation infrastructure and applications while successfully managing to retain the delivery models of the new products and services as flexible as possible for their workers and customers
5. Resiliency is Central to the Next Normal
Leading organizations should not only adapt and adjust to the disruption but tap into their digital capabilities to keep up their business operations and identify opportunities in the disrupted industry to secure competitive advantage. IDC predicts that “In 2022, enterprises focused on digital resiliency will adapt to disruption and extend services to respond to new conditions 50% faster than ones fixated on restoring existing business/IT resiliency levels.”
6. A Shift Towards Autonomous IT Operations
In the next three years, all IT and automation initiatives across the globe will have a cloud ecosystem as the underlying framework that extends resource controls and real-time analytics capabilities. In order to get there, organizations must strive to integrate analytics powered by AI and ML, adopt automation, self-driving infrastructure enabled by serverless process and use of low code.
7. Opportunistic AI Expansion
Organizations will be driven by the appetite to incorporate intelligence in possibly every product and service. According to IDC, “By 2023, one-quarter of Global 2000 companies will acquire at least one AI software start-up to ensure ownership of differentiated skills and IP”. The trends indicate that organizations that develop in-house AI driven solutions and data services will move into subscription models that will open doors for new revenue opportunities.
8. Relationships Are Under Review
With IT environment going through disruptive transition, organizations will focus on reevaluating their products, services and relationships with service providers to ensure long-term success. IDC report indicated that 80% of enterprises will undertake such reevaluations to design and implement better digital strategies.
9. Sustainability Becomes a Factor
Organizations are witnessing the increased responsibility that IT takes to drive sustainable business practices and also to ensure that the IT vendors and datacenter partners share the same goal. According to IDC,” By 2025, 90% of Global 2000 companies will mandate reusable materials in IT hardware supply chains, carbon neutrality targets for providers’ facilities, and lower energy use as prerequisites for doing business.”
10. People Still Matter
The acceleration to build business automation and productive workforce cannot succeed without the required investment in developing IT or DevOps teams and enabling them with the necessary skills and technologies. To mitigate the demand for development and data analytics skills, organizations will start to source talent in different ways such as crowdsourcing and upskilling/reskilling internal team members and finding flexible talent.
Peter High is President of Metis Strategy, a business and IT advisory firm. His has written two bestselling books, moderates the Technovation podcast series, and speaks at conferences around the world. Follow him on Twitter @PeterAHigh.
I am the president of Metis Strategy, a business and IT strategy firm that I founded in 2001. I have advised many of the best chief information officers at multi-billion
I am the president of Metis Strategy, a business and IT strategy firm that I founded in 2001. I have advised many of the best chief information officers at multi-billion dollar corporations in the United States and abroad. I’ve written for the Wall Street Journal, CIO Magazine, CIO Insight, Information Week and several other periodicals. I am also the author of Implementing World Class IT Strategy: How IT Can Drive Organizational Innovation (Wiley Press, September 2014) and of World Class IT: Why Businesses Succeed When IT Triumphs (Wiley Press, December 2009), a book on leading IT practices that has sold over 16,000 copies around the world. Since 2008, I have moderated a widely listened to podcast entitled “Technovation with Peter High,” which features a wide array of IT thought-leaders, and is available at www.forumonworldclassit.com on a weekly basis. I have been the keynote speaker at a host of corporate conferences and universities in the US, Canada, Mexico, the United Kingdom, the Republic of Ireland, the Czech Republic, Spain, China, India, Australia, and Saudi Arabia. You can reach me at peter.high [at] metisstrategy.com or on Twitter @PeterAHigh