“Industry spending on DX technologies is being driven by core innovation accelerator technologies with IoT and cognitive computing leading the race in terms of overall spend,” said Eileen Smith, program director with IDC’s Customer Insights and Analysis Group. “The introduction of IoT sensors and communications capabilities is rapidly transforming manufacturing processes as well as asset and inventory management across a wide range of industries. Similarly, artificial intelligence and machine learning are dramatically changing the way businesses interact with data and enabling fundamental changes in business processes.”
Some 75 percent of the total digital transformation spend will go to hardware and services. Chinese and U.S. companies together will account for more than half the overall spend.
What? No blockchain?
Original source: Enterprises to spend almost $2 trillion on digital transformation by 2022
For if you need some IT TAM time.
Original source: IT Spending To Boom In 2018, Tails Off In 2019
IDC survey on digital transformation says organizations are motivated to get more “productivity” and be more competitive, among other survey findings. And, as always, “the biggest barriers are people oriented.”
Original source: What’s really driving digital transformation globally? IDC has answers
“One answer is in a straightforward metric—how new technologies like cloud, cognitive, mobile, IoT, mobile, etc., impact industries via the gross domestic product (GDP) by industry by region. Looking at the improvement opportunities in healthcare, energy, government, and the supply chain, among other domains, IDC has identified $18.5 trillion in annual economic value add by 2020. That’s a 25% increase in global GDP.”
Original source: Modeling the future enterprise: people, purpose, and profit
“Worldwide spending on security-related hardware, software, and services is forecast to reach $91.4 billion in 2018, an increase of 10.2% over the amount spent in 2017.” Also, a breakdown of spending per industry and type of security product.
Original source: Worldwide Spending on Security Solutions Forecast to Reach $91 Billion in 2018, According to a New IDC Spending Guide
For companies under 1,000 people, IDC “forecasts total IT spending by small and medium-size businesses (SMBs) to be nearly $602 billion in 2018, an increase of 4.9% over 2017. With a compound annual growth rate (CAGR) of 4.7% for the 2016-2021 forecast period, spending by businesses with fewer than 1,000 employees on IT hardware, software, and services, including business services, is expected to reach $684 billion on in 2021.”
Original source: Worldwide SMB IT Spending to Pass $600 Billion in 2018, Driven by Mid-Market Demand for Software and Services, According to IDC
“Datacenters certainly came to the fourth quarter of last year hungry, and according to the latest statistics from IDC, they consumed 2.84 million units of iron, a 10.8 percent increase over the prior year’s final quarter. Thanks to IBM’s big bump up with System z14 mainframe sales and to a general trend of buying beefier boxes for hefty machine learning, analytics, and HPC workloads (admittedly but a slice of the server shipment pie), revenues for those servers shipped rose by 26.4 percent to $20.65 billion. This is the first time ever that server sales broke through the $20 billion barrier, and after IDC finishes restating its ODM server revenues for the first quarter of 2017, it is likely that it will report revised sales for all of 2017 to kiss $67 billion. Over that same period, Intel’s Data Center Group will account for $19.1 billion in sales and $8.4 billion in operating profit, just to give you a sense of the chip giant’s slice of the pie. If you are generous and assume that there is a 10 percent operating margin on servers – and that is because big iron NUMA machines and mainframes bring up the class average bigtime even as the ODMs do maybe 5 points of profit at best – that is a potential operating profit for the server industry of around $7 billion. If that is close to reality, then Intel will have around 27 percent of server revenues passed back to it by its OEM and ODM partners as a cost for compoents. If you add Intel’s profit to the server industry’s aggregate profit, and then add in the profit for memory and flash makers, Intel could account for 40 percent of the profit and as much as 50 percent back when memory and flash cost half as much as it did a year ago.”
Original source: The Server Market Booms, And It Could Last For A While
Includes an interesting chart that lists the types of services/features (like data management and appdev platforms) that compose vendor revenue. Plus geographic and vertical rankings. But, just a press release.
Original source: Worldwide Public Cloud Services Spending Forecast to Reach $160 Billion This Year, According to IDC
Corporate departments outside of the IT department, globally, are forecast to spend $609bn in 2017:
A new update to the Worldwide Semiannual IT Spending Guide: Line of Business from the International Data Corporation (IDC) forecasts worldwide corporate IT spending funded by non-IT business units will reach $609 billion in 2017, an increase of 5.9% over 2016. The Spending Guide, which quantifies the purchasing power of line of business (LoB) technology buyers by providing a detailed examination of where the funding for a variety of IT purchases originates, also forecasts LoB spending to achieve a compound annual growth rate (CAGR) of 5.9% over the 2015-2020 forecast period. In comparison, technology spending by IT buyers is forecast to have a five-year CAGR of 2.3%. By 2020, IDC expects LoB technology spending to be nearly equal to that of the IT organization.
Meanwhile, all in, global IT spend was estimated at $2.4tn in 2016, but that includes telco and consumer tech. And, this demographic breakdown for enterprise IT spend:
In terms of company size, more than 45% of all IT spending worldwide will come from very large businesses (more than 1,000 employees) while the small office category (the 70-plus million small businesses with 1-9 employees) will provide roughly one quarter of all IT spending throughout the forecast period. Medium (100-499 employees) and large (500-999 employees) business will see the fastest growth in IT spending, each with a CAGR of 4.4%.
Sources: Technology Purchases from Line of Business Budgets Forecast to Grow Faster Than Purchases Funded by the IT Organization, According to IDC, March 2017 and Worldwide IT Spending Forecast to Reach $2.7 Trillion in 2020 Led by Financial Services, Manufacturing, and Healthcare, According to IDC, Aug 2016.