It also believes the stage is set for a ’Battle of the AI Platforms’ between the competing cloud megaplatforms
By 2019, all effective Internet of Things (IoT) efforts and 40 per cent of all digital transformation initiatives will be supported by cognitive and artificial intelligence (AI) capabilities, says market intelligence and advisory firm International Data Corporation (IDC) in its IT industry predictions for 2017 and beyond.
IDC believes this is because the flood of data that comes from IoT devices and digital transformation initiatives have limited value without AI technologies that are capable of finding valuable insights in the data.
As developer adoption accelerates (by 2018, 75 per cent of developer teams will include cognitive/AI functionality in one or more applications), IDC believes the stage will be set for a Battle of AI Platforms as the competing cloud megaplatforms ñ including Amazon, Google, IBM and Microsoft ñ battle for developers in the cognitive/AI space.
IDC’s full set of predictions are presented in a new report, IDC FutureScape: Dawn of the DX Economy and the Digital Native Enterprise.
The analyst has been chronicling the emergence and evolution of the 3rd Platform, built on cloud, mobile, big data/analytics, and social technologies, for nearly a decade. Over the past several years, the adoption of these technologies has accelerated as enterprises commit to the 3rd Platform and undergo digital transformation (DX) on a massive scale.
"We are at an inflection point as digital transformation efforts shift from ’project’ or ’initiative’ status to strategic business imperative," said Frank Gens, senior vice president and chief analyst at IDC.
"Every (growing) enterprise, regardless of age or industry, must become ’digital native’ in the way its executives and employees think, what they produce, and how they operate. At the same time, 3rd Platform technology adoption and digital transformation is happening much faster than most expected and early competitive advantages will go to those enterprises that can keep pace with the emerging DX economy."
Here is a snapshot of IDC’s other IT industry predictions:
By 2020, 50 per cent of the Global 2000 will see the majority of their business depend on their ability to create digitally-enhanced products, services, and experiences. For industry leaders, the fastest revenue growth will come from information-based products and services.
By 2019, 3rd Platform technologies and services will drive nearly 75 per cent of IT spending ñ growing at twice the rate of the total IT market. This will be fuelled by further evolution of the 3rd Platform’s core technologies as well as the rapid adoption of ëinnovation accelerators†such as cognitive/artificial intelligence (AI) systems, augmented reality/virtual reality (AR/VR), and next-generation security.
By 2020, 67 per cent of all enterprise IT infrastructure and software spending will be for cloud-based offerings. Today’s ’cloud-first’ strategy is already moving toward ’cloud-only.’
In 2017, 30 per cent of consumer-facing Global 2000 companies will experiment with AR/VR as part of their marketing efforts. IDC expects AR/VR to reach mass adoption levels by 2021, when more than a billion people worldwide will regularly access apps, content, and data through an AR/VR platform.
By 2018, the number of Industry Collaborative Clouds (ICCs) will triple to more than 450; by 2020, over 80 per cent of the Global 500 will be digital services suppliers through ICCs.
By the end of 2017, over 70 per cent of the Global 500 will have dedicated digital transformation/innovation teams.†To meet the challenges of the DX economy, enterprises will need to grow their developer teams more quickly and look for growth of 2-3x by 2018.
By 2020, over 70 per cent of cloud services providers’ revenues will be mediated by channel partners/brokers. As enterprise use of the cloud becomes more complex, traditional IT channel partners and a new generation of cloud-capable channel partners will evolve to provide the help needed to support the expanding variety of cloud users and uses.
By 2020, all enterprises’ performance will be measured by a demanding new set of DX-driven benchmarks, requiring 20-100 per cent or better business performance. Competing and thriving in the DX economy means that every enterprise must think and operate like a digital native organisation.
By 2020, one third of health/life sciences and consumer product companies will begin to develop the first wave of products and services tightly integrating 3rd Platform technologies with the human body. It expects ’Augmented Humanity’ offerings go mainstream in the mid-2020s.
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