Modernization vs. replatforming

Charts!
Modernizers reported better outcomes across the board compared to migrators, according to IDC’s paper.
Modernizers reported better outcomes across the board compared to migrators, according to IDC’s paper.

The most popular digital transformation initiatives for IBM i shops, according to IDC’s survey.
The most popular digital transformation initiatives for IBM i shops, according to IDC’s survey.

IDC questioned all four cohorts (IBM i shops that modernized, IBM i shops that migrated, System z shops that modernized, and System z shops that migrated) about their satisfaction across a range of metrics before and after their move, including: customer experience; overall performance; security, availability, and disaster recovery capabilities; agility, microservices, and DevOps; ease of finding talent; ability to incorporate AI and IoT; and API, mobile, and Web enablement.

Across all seven metrics, the IBM i and System z shops that modernized their “legacy” systems scored higher than their IBM i and System z colleagues who chose to migrate off their systems. What’s more, organizations that modernized instead of migrated reported paying less on hardware, software, and staffing, and reported higher revenues to boot.

Making software better rather than just lifting and shifting it usually works out better.

Source: Modernization Trumps Migration for IBM i and Mainframe, IDC Says e

🗂 Link: DevOps-Led Business Transformation

The reality, though, is that many European organizations are only at the beginning of the journey to achieve elite delivery performance. From IDCs point of view, the ability to transform application estates and accelerate application delivery is one of the most critical business objectives for organizations in the next five years, with European organizations forecast to spend $80 billion on accelerated application delivery by 2022. 

Source: DevOps-Led Business Transformation

🗂 Link: VMware Modernizes Its Approach to Kubernetes, Increasing Its Appeal to Developers and DevOps

36% of developers cited “resource allocation and management” as their chief impediment to productivity, while 34% cited the “lack of automated collaboration between software developers and IT operations.”

Source: VMware Modernizes Its Approach to Kubernetes, Increasing Its Appeal to Developers and DevOps

🗂 Link: IDC Survey Finds Artificial Intelligence to be a Priority for Organizations But Few Have Implemented an Enterprise-Wide Strategy

An IDC “survey of global organizations that are already using artificial intelligence (AI) solutions found only 25% have developed an enterprise-wide AI strategy.”

But:

“More than 60% of organizations reported changes in their business model in association with their AI adoption.”

Source: IDC Survey Finds Artificial Intelligence to be a Priority for Organizations But Few Have Implemented an Enterprise-Wide Strategy

🗂 Link: Spending on Customer Experience Technologies Will Reach $641 Billion in 2022, According to New IDC Spending Guide

Worldwide spending on customer experience (CX) technologies will total $508 billion in 2019, an increase of 7.9% over 2018, according to the inaugural Worldwide Semiannual Customer Experience Spending Guide from International Data Corporation (IDC). As companies focus on meeting the expectations of customers and providing a differentiated customer experience, IDC expects CX spending to achieve a compound annual growth rate (CAGR) of 8.2% over the 2018-2022 forecast period, reaching $641 billion in 2022.

Source: Spending on Customer Experience Technologies Will Reach $641 Billion in 2022, According to New IDC Spending Guide

🗂 Link: The Cost of Banking Is About to Go Up: What the Capital One Breach at Amazon Could Mean for the Industry

“The adoption of cloud platforms is a movement that will not be stopped,” says Jerry Silva, research director, IDC’s Financial Insights Group. “But there will be a slowdown as regulators step in to ensure that the security and resiliency structures that have always applied to banks directly are applied to the cloud providers with which they do business.”

Source: The Cost of Banking Is About to Go Up: What the Capital One Breach at Amazon Could Mean for the Industry

Link: Growing Acceptance of Smart Home Devices Will Drive Double-Digit Growth Through 2023, According to a New IDC Forecast

Beyond the first quarter, IDC anticipates the global smart home market will reach 840.7 million units by the end of 2019 and grow to 1.46 billion units by 2023

Source: Growing Acceptance of Smart Home Devices Will Drive Double-Digit Growth Through 2023, According to a New IDC Forecast

Link: Earwear and Watches Expected to Drive Wearables Market at a CAGR of 7.9%, Says IDC

The market for wearable devices is on track to reach global shipments of 222.9 million units in 2019, growing to 302.3 million units in 2023 with a compound annual growth rate (CAGR) of 7.9%

Source: Earwear and Watches Expected to Drive Wearables Market at a CAGR of 7.9%, Says IDC

Link: Enterprises to spend almost $2 trillion on digital transformation by 2022

“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

Link: Private cloud spending is increasing, not decreasing

By end of the year, IDC projects public cloud spending will account for 68.2 percent of total IT equipment spending, growing at an annual rate of 36.9 percent.
Original source: Private cloud spending is increasing, not decreasing

Link: What’s really driving digital transformation globally? IDC has answers

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

Link: Modeling the future enterprise: people, purpose, and profit

“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

Link: Worldwide Spending on Security Solutions Forecast to Reach $91 Billion in 2018, According to a New IDC Spending Guide

“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

Link: Worldwide SMB IT Spending to Pass $600 Billion in 2018, Driven by Mid-Market Demand for Software and Services, According to IDC

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

Link: The Server Market Booms, And It Could Last For A While

“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

Link: Worldwide Public Cloud Services Spending Forecast to Reach $160 Billion This Year, According to IDC

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

Spending from outside of the IT department

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.

Worldwide PC sales are exactly where they were in 2008, IDC

That chart is in millions, i.e., 260m in 2016; the write-up on Quartz is a little wonky in that respect.

From IDC: “Annually, shipments of traditional PCs slipped to 260 million units, down 5.7% from 2015.”

Source: Worldwide PC sales are exactly where they were in 2008 — Quartz

Global IT spend at $2.4 trillion in 2017, 3.5% growth, IDC

Worldwide revenues for information technology (IT) products and services are forecast to reach nearly $2.4 trillion in 2017, an increase of 3.5% over 2016. In a newly published update to the Worldwide Semiannual IT Spending Guide: Industry and Company Size , International Data Corporation (IDC) estimates that global IT spending will grow to nearly $2.65 trillion in 2020. This represents a compound annual growth rate (CAGR) of 3.3% for the 2015-2020 forecast period.

Link