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Home Technology

IDC see aaS as driving IT industry from 2023-2027 in APEJ

FutureCIO Editors by FutureCIO Editors
February 6, 2023
Photo by Andrea Piacquadio: https://www.pexels.com/photo/reception-desk-with-antique-hotel-bell-3771110/

Photo by Andrea Piacquadio: https://www.pexels.com/photo/reception-desk-with-antique-hotel-bell-3771110/

In its FutureScape: Worldwide IT Industry 2023 Predictions — APEJ Implications report, IDC predicts that in 2023, 70% of enterprises’ adoption of as a service (aaS) infrastructure/software will be curbed more by an inability to assess promises of faster innovation and operational gains than by cost concerns.

Sandra Ng

“The digital business era marks a new generation of thinking that focuses on purpose-driven values, leading to financial results, ecosystem participation in the value chain, and sustainability as core operating principles. The enterprises that can close the new digital gap through the greatest business value impact will become market leaders of tomorrow," according to Sandra Ng, the group vice president and general manager for IDC Asia/Pacific including Japan (APJ) Research.

Here are IDC’s top 10 predictions and key drivers for the IT industry for the next five years in Asia/Pacific (excluding Japan) (APEJ):

#1: Business-focused aaS: By 2026, over 40% of IT budgets in most Asia-based 500 enterprises will be allotted to connectivity, security, computing, and data assets used to deliver their own aaS processes and smart products.

#2: Tech by wire: In 2025, 70% of infrastructure, security, data, and network offerings will require cloud-based control platforms that enable extensive automation and promise major reductions in ongoing operating costs.

#3: Skills breakpoints: Through 2024, shortcomings in critical skills creation and training efforts by IT industry leaders will prevent 75% of businesses from achieving the full value from the cloud, data, and automation investments.

#4: Digital sovereignty: Sovereign assertions in sustainability, resilience, and asset residency through 2025 will force A1000 CIOs to shift staff, budgets, and operating processes for more than one-third of IT and data assets.

#5: In name only aaS: In 2023, 70% of enterprises’ adoption of aaS infrastructure/software will be curbed more by an inability to assess promises of faster innovation and operational gains than by cost concerns.

#6: Expertise included: By the end of 2024, 50% of platinum-level aaS offerings in security, business operations, and Desktop as a Service (DaaS) will include bundled access to specialised SME teams to help reduce the impact of skills shortages.

#7: Tech exposure: In 2025, up to 10 high-visibility digital product launches reliant on intelligent automation and aaS delivery will face major delays because of global or regional silicon and code supply chain issues.

#8: Control overload: Through 2026, 40% of A1000 enterprises attempting to use tech-by-wire offerings will still struggle with a proliferation of siloed control systems that raise connectivity costs and limit sharing of data.

#9: Trusting automation: In 2026, 25% of A1000 enterprises will continue to face material risks because of frontline workers’ and business leaders' unwillingness to trust actions initiated by vetted autonomous tech systems.

#10: Sense of vision: By 2027, the ability to deploy and use machine vision as an inherent capability in any new product/process will be a primary characteristic of the five fastest-growing enterprises in most industries.

Related:  Breaking the silos between technology and security teams
Tags: 2023 Predictionsas-a-serviceIDC
FutureCIO Editors

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Strategic Insights for Chief Information Officers

FutureCIO is about enabling the CIO, his team, the leadership and the enterprise through shared expertise, know-how and experience - through a community of shared interests and goals. It is also about discovering unknown best practices that will help realize new business models.

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