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AI and Cloud Upgrades Propel IT Investment

As we move deeper into 2025, the global technology sector is at a crossroads of innovation acceleration and market recalibration. The latest Gartner forecast projects worldwide IT spending to reach $5.43 trillion this year, marking a 7.9 percent increase over 2024. Despite the global economic uncertainty and lingering market caution, organizations are forging ahead with Cloud Computing adoption, and especially Artificial Intelligence (AI) driven transformation. Let's explore where new investment is flowing, what’s guiding decision-makers, and how key technology trends will define the global IT trajectory through the rest of the decade. Enterprise IT Market Development Data Center Systems experience 42.4 percent growth, a historic surge linked directly to global investments in AI-ready infrastructure. Software and IT Services remain pillars of growth, showing significant expansion as organizations persist in their digital transformation journey. Device spending, including PCs and mo...

IT Shifts from Cost Center to Growth Driver

Has your IT plan prepared for the Generative AI  (GenAI) strategic transformation imperative? On the cusp of a transformative year in business technology, this question for CIOs is top-of-mind for a forward-looking C-suite with IT investment decisions. The latest Gartner study on worldwide IT spending trends provides guidance into the direction and scale of this strategic shift in the market's trajectory. Enterprise IT Market Development Gartner's latest forecast reveals a remarkable 9.8 percent increase in worldwide IT spending for 2025, projecting a total investment of $5.61 trillion. This substantial growth rate signifies a recovery and expansion in the tech sector, surpassing pre-pandemic levels and indicating a strong appetite for investment across industries. The projected increase is a testament to technology's critical role in modern business operations and strategies. Savvy executives recognize the imperative to invest in IT infrastructure, software, and cloud serv...

Reshaping Data Analytics Operating Models

Data has become the lifeblood of forward-thinking organizations. Market leaders leverage vast troves of data to inform decision-making, personalize customer experiences, and optimize operations. However, extracting value from this digital data requires analytics capabilities. Here's where Artificial Intelligence (AI) is becoming a powerful tool to unlock actionable insights. AI Data Analytics Market Development According to the latest Gartner market study, there's a significant shift in how organizations approach data and analytics (D&A) due to AI's growing influence on business outcomes. The study found that 61 percent of organizations actively evolve their D&A operating models in response to AI capabilities. This underscores a critical realization: the traditional approaches to data management and analysis are no longer sufficient. The integration of AI into D&A offers several compelling advantages: Enhanced Data Exploration: AI tools can automatically analyze...

How GenAI Transformed the CIO Role

With large enterprise business technology decision-making and budget spending now residing with Line of Business (LoB) leaders, rather than traditional IT leadership, the Chief Information Officer (CIO) role must demonstrate strategic skills. By 2028, 80 percent of CIOs will leverage significant organizational changes to harness AI, automation, and analytics, driving agile, insight-driven digital businesses. CIOs must become key players in shaping the future of their companies, guiding them through new trends while putting data at the heart of their business strategies, according to the latest market study by International Data Corporation (IDC). CIO Business Skills Market Development IDC research identified the top 3 concerns among C-suite executives were in digital skills, the lack of LoB trust in IT, and the lack of digital business know-how of C-suite executives. Given this backdrop, the major challenge for CIOs is transitioning from being a technical manager to a strategic archite...

Healthcare GenAI App Predictions for 2024

Across the globe, senior executive interest and demand for Artificial Intelligence (AI) applications in the healthcare sector are surging, driven by a potent combination of common factors. Rising costs, aging populations, and the need for data-driven insights push healthcare leaders to embrace AI's potential for optimizing operations, improving diagnoses, and personalizing care. Moreover, AI promises to alleviate physician and nurse burnout, unlocking efficiencies, and making it a strategic imperative for leaders seeking sustainable growth and improved patient outcomes. GenAI Apps in Healthcare Market Development IDC predicts that by 2025, Generative AI (GenAI) will free up to 10 percent of medical clinicians' time, translating into an estimated $100 billion in annual healthcare savings in the Asia-Pacific region excluding Japan (APEJ) to realize workflow automation and efficiency. This is just one of IDC’s predictions unveiled in their latest worldwide market study. As the li...

Enterprise IT Spending will Reach $5 Trillion

CEOs continue to invest in digital business technologies to stay ahead of their competition, enter additional markets, unlock new revenue streams, and streamline commercial operations. Worldwide information technology (IT) spending is forecast to reach $5 trillion in 2024 -- that's an increase of 6.8 percent from 2023, according to the latest global market study by Gartner. This estimate is down from the previous quarter’s forecast of 8 percent growth. While Generative AI (GenAI) had significant hype in 2023, it may not significantly change the growth of IT spending. Enterprise IT Market Development "While GenAI will change everything, it won’t impact IT spending significantly, similar to IoT, blockchain and other big trends we have experienced," said John-David Lovelock, vice president analyst at Gartner . Moreover, 2024 will be the year when organizations actually invest in planning for how to use GenAI. However, enterprise IT spending may be driven by more traditional...

GenAI: The Next Wave of Marketing Innovation

The landscape of Marketing and IT is undergoing a seismic shift, driven by the relentless evolution of Artificial Intelligence (AI). New AI apps are rapidly seeping into every facet of business, reshaping customer experiences, streamlining operations, and enabling workflow automation. This presents a vast opportunity for CMOs and CIOs, yet also a disruptive force demanding rapid adaptation. To stay ahead of the AI trend, these key decision-makers must become active participants. International Data Corporation (IDC) predicts that by 2027, Generative AI (GenAI) will assume 30 percent of traditional marketing mundane tasks -- such as website optimization, data analysis, customer segmentation, and hyper-personalization. GenAI Applications Market Development According to the IDC survey results, 37.8 percent of CMOs indicated they have already begun implementing GenAI technologies. Also, 51 percent of CMOs say their top business objective in the next 12 months is to improve lead generation ...

Digital Transformation Key Trends for 2024

Most CIOs recognize the essential role that emerging technology has in enabling digital business transformation. However, what they often don't know is how prepared their employees, IT systems, and internal processes are to embrace change. Gartner has highlighted the six key trends that will have a significant impact on enterprise IT infrastructure and operations (I&O) organizations over the next 12 to 18 months. "I&O leaders have little time, skills and budget to track emerging trends and the full impact of those on I&O," said Jeffrey Hewitt, vice president at Gartner . Savvy leaders should apply the top trends within I&O for 2024 to identify which are most likely to impact their organization, and then implement effective actions in response. According to Gartner's research, the top trends in 2024 are as follows: Machine Customers Machine customers are non-human economic actors that obtain goods or services in exchange for payment, such as virtual per...

How GenAI is Transforming the Role of CIO

The introduction of Artificial intelligence (AI), and the emergence of Generative AI   (GenAI), are now resulting in two key focus areas for Chief Information Officers (CIOs) and their IT leadership team. "GenAI is not just a technology or just a business trend. It is a profound shift in how humans and machines interact," said Mary Mesaglio, VP Analyst at Gartner . "We are moving from what machines can do for us to what machines can be for us." AI platforms are evolving rapidly from being our tools to becoming our teammates. Gartner predicts that by 2025, GenAI will be a workforce partner for 90 percent of companies worldwide. CIO Leadership Market Development CIOs have a major role in how they shape AI and how AI shapes us. According to recent Gartner surveys of CEOs, enterprise CIOs are their number one choice to unlock the value of GenAI tools. In fact, CIOs and IT executives will prioritize two areas to unleash the possibility of AI over the next 12-24 months – ...

AI Semiconductor Revenue will Reach $119.4B

The Chief Information Officer (CIO) and/or the Chief Technology Officer (CTO) will guide Generative AI initiatives within the large enterprise C-Suite. They may already have the technical expertise and experience to understand the capabilities and limitations of Gen AI. They also have the authority and budget to make the necessary investments in infrastructure and talent to support Gen AI initiatives. Enterprise AI infrastructure is proven to be expensive to build, operate and maintain. That's why public cloud service provider solutions are often used for new AI use cases. AI Semiconductor Market Development Semiconductors designed to execute Artificial Intelligence (AI) workloads will represent a $53.4 billion revenue opportunity for the global semiconductor industry in 2023, an increase of 20.9 percent from 2022, according to the latest worldwide market study by Gartner. "The developments in generative AI and the increasing use of a wide range AI-based applications in data c...

Generative AI will Fuel Digital Business Growth

Artificial Intelligence (AI) is a powerful tool to drive digital business growth, make better decisions, and personalize offerings to customers. As a result, forward-thinking CEOs are now actively pursuing AI investments to gain a competitive advantage. Generative AI apps originated with tools such as ChatGPT and Stable Diffusion. According to the latest worldwide market study by ABI Research, Generative AI is forecast to add more than $450 billion to the enterprise market across twelve different vertical industries over the next seven years. Gen AI already has hundreds of compelling use cases across these enterprise verticals. But accuracy, performance, and enterprise readiness will mean that use cases will come in three distinct waves. Generative Artificial Intelligence Market Development "Content-heavy verticals like marketing and education are already seeing disruption across a range of job roles in the first wave of adoption," said Reece Hayden, senior analyst at ABI Res...

Shift to Strategic Re-Investment of IT Budgets

Enterprise IT is no longer a cost center. It is a strategic enabler of business growth. More senior executives are realigning their IT budgets to focus on growth initiatives. By reinvesting IT budget savings, they can ensure that their organizations are well-positioned to succeed in the future. Growth remains the top strategic business priority for both CFOs and CEOs, according to the latest worldwide market study by Gartner. Forty-five percent of CEOs surveyed ranked growth in their top 3 strategic priorities, down from 53 percent in 2022, while 62 percent of CFOs put it in their top 3 -- that's up from 59 percent in 2022. Enterprise Digital Technology Market Development   While CFOs and CEOs agree on growth as their top priority, their emphasis on this and other priorities differ, according to the Gartner survey of CEOs, CFOs, and other senior executive business leaders. For example, the CFOs’ second top priority is corporate action such as M&A and restructuring (41 percent),...

Next-Generation SaaS Apps are Fueled by AI

Global demand for public cloud computing services continue to grow. Worldwide revenue for the public cloud services market totaled $545.8 billion in 2022 -- that's an increase of 22.9 percent over 2021, according to the latest worldwide market study by International Data Corporation (IDC). Software as a Service (SaaS) applications continued to be the largest source of public cloud services revenue by far, accounting for more than 45 percent of the total in 2022. Infrastructure as a Service (IaaS) was the second largest revenue category with 21.2 percent of the total, while Platform as a Service (PaaS) and Software as a Service System Infrastructure Software (SaaS SIS) delivered 17 percent and 16.7 percent respectively. Public Cloud Services Market Development "Given the economic challenges of the past year, it's easy to conclude that we are in a period where a focus on constraining new expenditures and optimizing the use of existing cloud assets will dominate CIOs' pri...

Enterprise IT Skills Gap Drives New Recruitment

Forward-thinking CEOs create a digital business transformation agenda. They're eager to develop and deploy new digital business models. However, their IT team often lacks the skills and experience to reach key business outcome objectives. There's growing demand for skilled digital talent in 2023, and beyond. As a result, 81 percent of large enterprise (LE) CIOs plan to increase their IT headcount in 2023, according to the latest worldwide market study by Gartner. Meanwhile, only 14 percent expect their IT staff to decrease and 5 percent expect their headcount to remain the same. Enterprise IT Talent Market Development "Attracting and retaining technology talent remain critical areas of concern for CIOs," said Jose Ramirez, senior principal analyst at  Gartner . Even with advances in artificial intelligence (AI), Gartner predicts that the global job impact will be neutral in the next several years due to enterprise adoption lags, implementation times and learning curve...

Digital Transformation Empowers Government IT

Across the globe, the future for leaders of government agencies who crave digital business transformation progress is looking good. Artificial intelligence (AI) and no-code or low-code solutions will enable them to overcome software development challenges. Worldwide government IT spending is forecast to total $589.8 billion in 2023 -- that's an increase of 7.6 percent from 2022, according to the latest worldwide market study by Gartner. "Global challenges like inflation and workforce scarcity and their local repercussions are testing the abilities of government CIOs to respond with appropriate service delivery mechanisms and organizational accountability," said Apeksha Kaushik, principal analyst at Gartner . Government IT Solutions Market Development In addition, the ongoing IT Great Resignation and the competing demand from the commercial sector have forced governments to re-examine their approaches to counterbalance internal talent scarcity. In 2023, government IT organ...

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...

Aligning Technology with Business Outcomes

Historically, the Chief Information Officer (CIO) role was considered the leader of enterprise Digital Transformation initiatives. The belief was based on the notion that the primary skill set required was Technology expertise. However, IDC now predicts that the focus has shifted to Business expertise, talent development, and digital growth strategy. This revelation is just one of IDC's predictions for 2023, and beyond. Digital Transformation Market Development CIOs who demonstrate a mix of strategic purpose and people skills can now co-lead with their business counterparts -- to demonstrate and align new technologies for sustainable business outcomes. "In this new world, the role of the CIO has evolved to be one that is a digital business enabler using technology to compete," said Linus Lai, chief analyst at IDC A/NZ. IDC's top CIO Agenda predictions are as follows: Chief Business Technology Officer: By 2026, 60 percent of CIOs will find their roles being challenged...

Intelligent Developer Technologies Fuel New Apps

More CIOs and CTOs are exploring ways to accelerate the development of new software apps that enable the kind of digital transformation benefits that all senior executives crave. One emerging solution is to empower business leaders with tools to create new apps themselves. The global market for low-code, no-code, and intelligent developer technologies (LCNCIDT) continues to grow at a rapid pace, with revenue projected to reach $21 billion by 2026, according to the latest worldwide market study by International Data Corporation (IDC). Intelligent Developer Technology Market Development "The market for LCNCDIT technologies is being driven by the global shortage of full-time developers," said Michele Rosen, research manager at IDC . "This situation is expected to continue throughout this decade, creating a strong market for technologies that increase developer productivity or expand the potential pool of developers." The LCNCIDT market includes low-code, no-code, and i...

How Enterprise SaaS Apps and APIs Drive Growth

Worldwide revenue for enterprise software applications will grow from $279.6 billion in 2022 to reach $385.2 billion in 2026 with a five-year CAGR of 8 percent, according to the latest global market study by International Data Corporation (IDC). Nearly all the upside growth will come from investments in public cloud software applications, which are expected to represent nearly two-thirds of all enterprise applications revenue in 2026. While the process of migrating from legacy on-premises apps to cloud services can take years, senior executives will drive a transition to the public cloud as an essential part of their digital transformation. Application Software Market Development Companies that don't pursue this approach may sustain losses due to their competitors adopting cloud services, and their use of application programming interfaces (APIs) to gain momentum. "It's no longer enough for businesses to sit back and rely on their technological debt of software and hardwar...

Government IT Spending Gains New Momentum

Many government CIOs often struggle with legacy system issues. Their quest for digital business transformation may be the most highly motivated, compared with their peer group in private business. Meanwhile, forward-thinking government leaders are planning to support the selective investment in business technology that enables more digital government services. It has become a strategic priority. Worldwide government information technology (IT) spending is forecast to total $588.9 billion in 2023 -- that's an increase of 6.8 percent from 2022, according to the latest global market study by Gartner. Government Technology Market Development "Government organizations are continuing to modernize legacy IT and invest in initiatives that improve access to digital services as constituents increasingly demand experiences that are equivalent to online customer interactions in the private sector," said Daniel Snyder, director analyst at Gartner . The total experience (TX) framework,...