Market research IDC today predicted boom in the digital transformation business for IT companies because two-thirds of global 2,000 CEOs will put digital transformation at the center of their growth and profitability strategies.
Digital business strategies will drive more than 50 percent of enterprise IT spending within the next 24 months, rising to 60 percent by 2020.
The percentage of enterprises with advanced digital transformation strategies and implementations will more than double by the end of this decade, said IDC.
“The disruptive impact of digital transformation is about to be felt in every industry as enterprises massively scale up their digital initiatives to secure a leadership role in the digital economy,” said Frank Gens, senior vice president and chief analyst at IDC.
Mobile computing, cloud services, big data and analytics, and social networking will accelerate over the next three to five years as enterprises commit to digital transformation on a big scale.
Cloud First will become the new mantra for enterprise IT. By 2020, enterprise spending on cloud services, the hardware and software to support cloud services, and the services for implementing and managing cloud services will exceed $500 billion, more than three times what it is today.
Enterprises’ ability to grow and compete will increasingly depend on their digital innovation capacity.
By 2018, enterprises pursuing digital transformation initiatives will more than double the size of their developer resources, focusing those developers almost entirely on digital transformation initiatives.
By 2018, the flow of external data into organizations with advanced digital transformation strategies will increase by as much as a factor of five while high-end digital transformation performers will increase their data out by 500-fold or more.
The Internet of Things (IoT) will be one of the most fertile areas for digital transformation. By 2018, the number devices on the IoT will more than double to 22 billion and drive the development of 200,000 new apps and solutions.
The most active IoT development will cluster around the manufacturing, transportation, retail, and healthcare industries.
Spending on cognitive software platforms is forecast to surpass $1 billion this year and will scale up dramatically over the next three years. More 50 percent of developer teams – up from less than 1 percent today – will embed cognitive services into their apps by 2018 to leverage their data pipelines and to improve customer personalization.
Industry cloud platform and community participation will become increasingly vital to scale up digital supply chains and digital distribution channels by as much as 100- to 1000-fold.
By 2018, more than 50 percent of large enterprises – and more than 80 percent of enterprises with advanced digital transformation strategies – will create and/or partner with industry cloud platforms to scale up their digital supply and distribution networks. The number of industry clouds will reach 500 or more by 2018, up from today’s 100-plus.
60 percent of B2B and 80 percent of B2C enterprises will overhaul their digital front doors – and the customer engagement systems behind them – to support 1,000 to 10,000 times more customers and customer touchpoints than they do today.
By 2020, IDC predicts that nearly a third of today’s IT suppliers will be acquired, merged, downsized, or significantly repositioned.