As industries — and the global economy — rapidly realign and consolidate around digital innovation, CXOs must race to reinvent their organizations for the fast-paced multiplied innovation world. This means reinventing IT around a distributed cloud infrastructure, public cloud software stacks, agile and cloud-native app development and deployment, AI as the new user interface, and new, pervasive approaches to security and trust at scale.
Collectively, our 10 predictions describe a wholesale reinvention of enterprises’ digital innovation capabilities — one that will be required for organizations to compete and thrive in the increasingly digitized economy that operates at a “multiplied innovation” pace. Powered by these IT reinventions, the next three to five years will see a massive explosion of new applications and services and digital transformation use cases that redefine and disrupt every industry.
IDC presents the top 10 predictions and key drivers for the next five years, including:
- Prediction 1: Digitized economy. By 2022, 60%+ of global GDP will be digitized, with growth in every industry driven by digitally enhanced offerings, operations, and relationships and almost $7 trillion in IT-related spending in 2019–2022.
- Prediction 2: Digital-native IT. By 2023, 75% of all IT spending will be on 3rd Platform technologies, as over 90% of all enterprises build “digital native” IT environments to thrive in the digital economy.
- Prediction 3: Expand to the edge. By 2022, over 40% of organizations’ cloud deployments will include edge computing and 25% of endpoint devices and systems will execute AI algorithms.
- Prediction 4: AppDev revolution. By 2022, 90% of all new apps will feature microservices architectures that improve the ability to design, debug, update, and leverage third-party code; 35% of all production apps will be cloud native.
- Prediction 5: New developer class. By 2024, a new class of professional developers producing code without custom scripting will expand the developer population by 30%, accelerating digital transformation (DX).
- Prediction 6: Digital innovation explosion. From 2018 to 2023 — with new tools/platforms, more developers, agile methods, and lots of code reuse — 500 million new logical apps will be created, equal to the number built over the past 40 years.
- Prediction 7: Growth through specialization. By 2022, 25% of public cloud computing will be based on non-x86 processors (including quantum); by 2022, organizations will spend more on vertical SaaS apps than horizontal apps.
- Prediction 8: Artificial intelligence (AI) is the new user interface (UI). By 2024, AI-enabled user interfaces and process automation will replace one-third of today’s screen-based apps; by 2022, 30% of enterprises will use conversational speech tech for customer engagement.
- Prediction 9: Expanding and scaling trust. By 2022, 50% of servers will encrypt data at rest and in motion, over 50% of security alerts will be handled by AI-powered automation, and 150 million people will have blockchain-based digital identities.
- Prediction 10: Consolidation versus multicloud. By 2022, the top 4 cloud “megaplatforms” will host 80% of IaaS/PaaS deployments, but by 2024, 90% of G1000 organizations will mitigate lock-in through multicloud/hybrid technologies and tools.
Learn more about the 2019 IT Industry Predictions
For context around these predictions, including the IT impact and guidance on how to integrate each prediction in the digital strategy of the enterprise, view the IDC FutureScape: Worldwide IT Industry 2019 Predictions web conference on-demand.