The International Data Corporation (IDC) has released its latest Semester World Guide to Digital Transformation. The study predicts that companies worldwide will, during 2019, invest $ 1.18 billion (about € 1.05 billion) in their digital transformation. This represents an increase of 17.9% compared to 2018.
Globally, companies have been making significant investments in technologies and services with the goal of digitally transforming their business models, organization, products and services. From a technology standpoint, investments in hardware and services will account for over 75% of all digital transformation spending in 2019.
On top of these investments will be information technology services, with $ 154 billion (about 138 billion euros), followed by connectivity services with $ 102 billion (91 billion euros). Hardware spending will be broken down into various categories, including enterprise hardware, personal devices, and IaaS infrastructure.
Software spending related to digital transformation will total $ 253 billion (€ 226.5 billion) by 2019. The fastest growing technology categories will be IaaS (35.9% CAGR), application development and deployment software. (26.7% CAGR) and commercial services (26.5% CAGR).
“Digital transformation is fast becoming the biggest driver of new technology and project investments among companies,” said Craig Simpson, researcher at IDC’s Customer Insights & Analysis group. “Our study has made it clear that companies that have invested heavily in digital transformation over the past 2-3 years are already reaping the rewards in terms of faster revenue growth and stronger net profits compared to companies lagging behind in initiatives. and investments in digital transformation. ”