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Top IT market insights for tech providers: April edition

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by Intel on 04/22/2022
Blog Category: devices

By Jason Kimrey

Hot off the presses is IDC’s quarterly PC shipments report. After double-digit growth, spending is tapering. However, 80.5 million PCs were still shipped in the first quarter, marking the seventh consecutive quarter of 80+ million units!

The latest worldwide IT spending report is also out. Gartner says inflation, geopolitical disruptions and talent shortages will slow IT investments to $4.4 trillion in 2022, even though spending will still be up (by 4%) from 2021.

Digging into the report, growth is tapering across almost every segment down from double-digit spending in 2021. Gartner’s key projections include:

> Data center systems: 5.5% growth in 2022 and 5.4% in 2023

> Software: up 9.8% in 2022 and 11.8% in 2023

> Devices: rising 1.9% in 2022 and 1.6% in 2023

> IT services: up 6.8% in 2022 and 8.5% in 2023

This Gartner report also sheds interesting light on the challenges CIOs face as well as their priorities — which include investing in areas that give them the flexibility and agility to respond to disruption.

AI Spending to Double

Spending on artificial intelligence will grow to $120 billion by 2025, a CAGR of 25%, with retail and banking industries leading the investment, according to IDC.

The Augmented Customer Service Agents, and Expert Shopping Advisors & Product Recommendations use cases will account for almost 40% of spending, says IDC.

Inflationary Pressure

You can’t go into a store or fill up your tank without feeling the impact of inflation. We also need to recognize how inflation is impacting our customers and their spending strategies.

“Organizations have largely picked the low-hanging fruit in responding to input price inflation,” said Randeep Rathindran, a research VP in Gartner’s finance practice. “CFOs need strategies now that both adapt to a more persistent inflationary environment than originally anticipated, while also better preparing their organizations for growth in the next economic cycle.”

As trusted advisors and leaders, we have an important role to play in helping guide IT strategies and investments to help our customers gain or retain that competitive edge.

Time to Thrive

Expanding on IDC’s 2022 worldwide CEO survey, this article digs deeper into the priorities for business leaders. Here’s a hint: CEOs are focused on technology that helps their organizations thrive.

Among the most interesting findings: Every CEO, regardless of industry, must become a tech CEO in our digital world. There’s an IDC webinar on the subject on April 28, if you want to hear more.

Well said!

“Everyone realizes that technology is significant—we’ve earned the seat at the table and have everyone’s ear,” says Jamie Holcombe, CIO of the U.S. Patent and Trademark Office.

“You lose it by talking ‘geek speak’ or focusing on pet projects that have nothing to do with the business mission,” Holcombe adds. “Make sure you talk to colleagues in business terms, so they understand how you’re delivering for them.”

This is a great quote. It can be tempting to get excited about what technology can do and the key features you can’t live without. But what really matters is business outcomes and solving challenges.

News Recap

Here’s a roundup of articles and news I’ve been reading:

Data Privacy: The United States and EU have reached a preliminary agreement on how European data could be stored in the U.S. If successful, it could once again permit trans-Atlantic data flow.

Data & Analytic Trends: Three key areas are highlighted by Gartner: activate dynamism and diversity; augment people and decisions; and institutionalize trust. It’s an interesting piece that builds on Gartner’s trends research.

Betting on Cloud: Flexera’s 2022 State of the Cloud report shows where enterprises and SMBs are spending cloud dollars. For enterprise spending, the report shows, AWS has a slight lead over both Microsoft Azure and Google Cloud.

Who’s Making Decisions? According to this Gartner report, the board of directors is coming out ahead of the CIOs and CTOs when it comes to deciding on emerging technology investments.

The good news highlighted in this report: 90% of respondents said their emerging-technology investments are either meeting or exceeding expectations.

Tech Deals Continue: There seems to be no slowing of M&A activity in tech. According to Computerworld’s roundup, cybersecurity and collaboration software are two especially hot areas.

The Great Resignation: We all know there’s a tech talent shortage. Only about one in three tech workers (29%) plan to stay in their current job, and that’s not welcome news to businesses. According to Gartner, the key to retention lies in rethinking outdated work assumptions.

The Great Rethink: As leaders we need to be aware of shifting sentiments about work and help ensure the momentum we have achieved in hybrid workplaces is not lost. While we embraced remote work during the pandemic, this report is a little troubling.

Nearly 60% of women knowledge workers think in-office workers will be seen as high performers, says Alexia Cambon, research director in Gartner’s HR practice. And more than 75% think in-office workers are more likely to be promoted.

Being physically in an office is an outdated measure of performance. It’s a misconception we must guard against.

Shed B2B Sales Myths: I highlight this Forrester piece because too often we get trapped in the way we’ve always done things …and sometimes those ideas and practices are outdated and limit success.

It’s Not You: Given our customer-centric world, it might seem counterintuitive that a business would willingly turn away sales. But Gartner’s research says that could be exactly what’s best. By 2025, the firm predicts, 75% of companies will break up with poor-fitting customers. The reason? Retaining those customers is too costly.

Smart Cities Awarded: These projects and cities are great examples of how municipalities can leverage technology and innovation. Congratulations to this year’s winners and innovators!

A little fun before I sign off: Have you tested your gaming skills yet? Get a little retro with Pixel Pat and go for the high score. Game on, Jay McBain, Rachel Mushahwar, Aletha Noonan, Gary Palenbaum, Jason Mitchell, and Bob Olwig!

Jason Kimrey

Jason Kimrey is general manager of U.S. channel and partner programs at Intel.

 

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