IDC predicts emergence of the ‘DX Economy’
November 4, 2015
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International Data Corporation (IDC today announced its worldwide information technology (IT) industry predictions for 2016 and beyond. The predictions were published in a new IDC FutureScape report and presented in a live Web conference hosted by chief analyst Frank Gens. Both the report and an on-demand replay of the Web conference will be available at www.idc.com/idcfuturescapes2016.
In 2007, IDC identified the 3rd Platform –- built on the technology pillars of mobile computing, cloud services, big data and analytics, and social networking –- as the foundation for the IT industry’s future innovation and growth. Since then, the rapid adoption of 3rd Platform technologies has moved into the “Innovation Stage” — an explosion of innovation and transformation on top of the 3rd Platform’s foundation.
IDC predicts that this phase will accelerate over the next three to five years as enterprises commit to digital transformation (DX) on a massive scale, leading to the emergence of the “DX economy.
“The disruptive impact of digital transformation is about to be felt in every industry as enterprises ‘flip the switch’ and massively scale up their DX initiatives to secure a leadership role in the DX economy,” said Gens.
“In the next two years, two-thirds of Global 2000 CEOs will put DX at the center of their growth and profitability strategies. By the end of this decade, IDC predicts that the percentage of enterprises with advanced DX strategies and implementations will more than double.”
IDC predicts that the scale-up of digital business strategies will drive more than half of enterprise IT spending within the next 24 months, rising to 60% by 2020. Mastery of 3rd Platform technologies will be table stakes for successfully executing DX business initiatives and “Cloud First” will become the new mantra for enterprise IT. Virtually none of the other 3rd Platform technologies or major DX initiatives is possible in scaled-up implementations without the Cloud as the foundation.
By 2020, IDC predicts that enterprise spending on cloud services, the hardware and software to support cloud services, and the services for implementing and managing cloud services will exceed US$500 billion, more than three times what it is today.
Further coverage will appear in the Nov.-Dec. issue of Connections+.