Ericsson CEO predicts massive ‘digital disruption’
February 22, 2016
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No industry will be able to avoid the digital disruption coming their way this year, said Ericsson CEO Hans Vestberg at his annual Mobile World Congress address today in Barcelona. He said that three fundamental ICT forces – broadband, mobility and cloud – are rapidly reshaping value chains, digitalizing business models and creating possibilities that were previously unimaginable.
“Along with our industry and our customers, Ericsson is on a transformation journey,” said Vestberg. “Today, 66% of our business comes from software and services; just years ago, the majority was hardware. The majority of our principal competitors are ICT players, rather than telecommunications businesses.”
He added that 5G, the Internet of Things or IoT and cloud are the ICT industry’s hottest topics
According to Ericsson, the IoT is quickly becoming a reality and its impact on both industries and society is going to be profound. The company forecasts that the number of IoT connected devices globally will more than triple from under five billion today to 15 billion by 2021.
A recent IDC study predicts that global IoT spending will reach US$1.3 trillion by 2019 and the McKinsey Global Institute concludes that the IoT will have a potential annual economic impact of up to US$11 trillion by 2025.
The IoT revolution is creating new business ecosystems that are more complex and interdependent than ever before, Ericsson said.