Skip to main content

Digital Business Outcome Desire Funds IT Investment

Many organizations will need to accelerate the modernization of IT infrastructure and operations to build a sustainable competitive advantage in the next 2 to 3 years, according to the latest market study by International Data Corporation (IDC).

The ability to align to the digital business transformation paradigm is contingent upon investing in next-generation cloud-native IT infrastructure technologies, platforms, and solutions -- also it depends on how CIOs will help transform commercial operations.

The rapid proliferation of data-driven edge workloads, the growing number of ransomware and malware attacks, and the growth of structured or unstructured data are creating significant challenges -- IDC says by 2023, most C-Suites will implement business-critical key performance indicators (KPIs).

Digital Infrastructure Market Development

"The CIO and IT decision-makers will need to do some serious thinking beyond modernizing the technology building blocks and platforms if they truly intend to align to digital business outcomes, SLAs, and KPIs," said Rajnish Arora, Vice President at IDC in Asia-Pacific.

Cultural and mindset change is a keystone of the new digital infrastructure paradigm, which goes beyond just embracing cloud computing as the de facto delivery platform, or using OPEX-based 'as-a-service' IT consumption models.

The IDC 'Future of Digital Infrastructure' top 10 predictions provides guidance for senior decision-makers on how to accelerate the modernization of their transformation agenda, as follows:

Strategic Lock-In: By 2024, A2000 leaders prioritize business objectives over infrastructure choice, deploying 50 percent of new strategic workloads using vendor-specific APIs that add value but reduce workload portability.

Supply Chain Integrity: In 2023, over 60 percent of A2000 will cite business resiliency to drive verifiable infrastructure supply chain integrity as a mandatory and non-negotiable vendor evaluation criterion.

Cyber Recovery: By 2023, most C-Suite leaders implement business-critical KPIs tied to data availability, recovery, and stewardship as rising levels of cyber-attacks expose the scale of data at risk.

Environmental, Social & Governance (ESG): By 2024, 60 percent of A2000 digital infrastructure RFPs require vendors to prove progress on ESG or Sustainability initiatives with data, as CIOs rely on infrastructure vendors to help meet ESG goals.

Edge First Data: By 2024, due to an explosion of edge data, 55 percent of A2000 will embed edge-first data stewardship, security, and network practices into data protection.

Workload Dependency Explosion: By 2025, a 6X explosion in high dependency workloads leads to 65 percent of A2000 firms using consistent architectural governance frameworks to ensure compliance reporting and audit of their infrastructure.

Consumption-as-a-Service: By 2025, 60 percent of enterprises will fund Line of Business (LoB) and IT projects through OPEX budgets, matching how vendors provide their services with a focus on outcomes that are determined by SLAs and KPIs.

Next-Generation Infrastructure: By 2025, 60 percent of companies will invest in alternative computing technologies to drive business differentiation by compressing time to value with insights from complex data sets.

Artificial Intelligence Ops Maturity: By 2026, 90 percent of A2000 CIOs will use AIOps solutions to drive automated remediation and workload placement decisions that include cost and performance metrics, improving resiliency and agility.

New IT Advisors: By 2026, mid-market companies will shift 55 percent of IT infrastructure spending from traditional channels towards more app-centric trusted advisors.

Outlook for Digital Infrastructure Investment Growth

That said, I anticipate more CIOs and CTOs will acknowledge that assessing the ability to achieve desired business outcomes is most important when selecting vendors for new projects. Technology supremacy and expansive feature sets often don't translate into business technology value.

IT investment value realization is often directly related to the vendor's proven ability to influence the adoption and consumption of SaaS software applications. Moreover, it's important for leaders to appreciate that intangible benefits may be the primary driver of business outcome achievement.

That's why every new business case needs to be aligned to the recognition that SaaS end-user consumption is a leading indicator of anticipated profitability and growth enabled by IT infrastructure investment. The savviest trusted advisor vendors already demonstrate this essential quality.

Popular posts from this blog

Global Digital Business and IT Consulting Outlook

Across the globe, CEOs and their leadership teams continue to seek information and guidance about planned Digital Transformation initiatives and the most effective enterprise organization change management practices. Worldwide IT and Business Services revenue will grow from $1.13 trillion in 2022 to $1.2 trillion in 2023 -- that's a 5.7 percent year-over-year growth, according to the latest market study by International Data Corporation (IDC). The mid-term to long-term outlook for the market has also increased -- the five-year CAGR is forecast at 5.2 percent, compared to the previous 4.9 percent. Digital Sevices & Consulting Market Development IDC has raised the growth projection despite a weak economic outlook, because of vendor performances across 2022, growth indicators from adjacent markets, increased government funding, and inflation impacts. The actual 2022 market growth was 6.7 percent (in constant currency), which was 87 basis points higher than forecast last year, alth

Digital Talent Demand Exceeds Supply in Asia-Pac

Even the savviest CEO's desire for a digital transformation advantage has to face the global market reality -- there simply isn't enough skilled and experienced talent available to meet demand. According to the latest market study by IDC, around 60-80 percent of Asia-Pacific (AP) organizations find it "difficult" or "extremely difficult" to fill many IT roles -- including cybersecurity, software development, and data insight professionals. Major consequences of the skills shortage are increased workload on remaining digital business and IT employees, increased security risks, and loss of "hard-to-replace" critical transformation knowledge. Digital Business Talent Market Development Although big tech companies' layoffs are making headlines, they are not representative of the overall global marketplace. Ongoing difficulty to fill key practitioner vacancies is still among the top issues faced by leaders across industries. "Skills are difficul

Mobile Device Market Still Awaiting Recovery

The mobile devices market has experienced three years of unpredictable demand. The global pandemic, geopolitical pressures, supply chain issues, and macroeconomic headwinds have hindered the sector's consistent growth potential. This extremely challenging environment has dramatically affected both demand and supply chains. It has led to subsequent inflationary pressures, leading to a worsening global cost of living crisis suppressing growth and confidence in the sector. In tandem, mobile device industry stakeholders have become more cautious triggering market uncertainties. Mobile Device Market Development Operating under such a backdrop, the development of mobile device ecosystems and vendor landscapes have been impacted severely. Many of these market pressures persisted throughout 2022 and now into 2023, borne chiefly by the smartphone market. According to the latest worldwide market study by ABI Research, worldwide smartphone shipments in 2022 declined 9.6 percent Year-over-Year