Digital Transformation Spending to Pass $1 Trillion
Transforming IT and Budgets Alike –
As a recent report from market analysis firm IDC reveals, digital transformation (DX) spending is due to surpass $1 trillion this year. And much of this spend is pouring into IT.
DX is a large umbrella, covering everything from customer-facing virtualization technology to autonomous vehicle management to artificial intelligence. In a practical sense, however, DX isn’t solely a matter of a few big, flashy additions to an enterprise’s digital space. As IDC’s research manager of its customer insights and analysis group Craig Simpson points out in an interview with Channel Futures:
“[T]here are so many pieces of DX applied to very specific parts of the business, which build on top of each other to eventually lead to the business-model change…I think the conversation has changed from a higher-level focus to more of a granular focus on what needs to be done to make the transformative change.”
The greatest portion of that $1 trillion, a full third, is pouring into improving operational efficiencies within enterprises. “Many organizations are still in the early stages of their DX journey, internally focused on improving existing processes and efficiency,” says Simpson.
It’s a sensible step; before jumping into the next big sci-fi tech, it’s vital to fortify the core IT structures of a company. Once an enterprise’s digital infrastructure is optimized and automated, that strong base can be used as a jumping-off point to greater changes.
“As they move into the later stages of development, we expect to see these priorities and spending shift toward the use of digital information to further improve operations and to create new products and services,” says Simpson.
It’s a process we’ve witnessed more than once at Cayosoft.
Eager to “go digital”, organizations continue to jump into the Microsoft Office 365 cloud to take full advantage its plentiful operational benefits. Even with good planning, it’s only after the switch that many run into the operational efficiency issues inherent in managing Microsoft Office 365. Taking the time and budget to invest in DX technology like Cayosoft for vital IT infrastructure not only solves the issues created by moving to cloud, but also helps the creation of more long-term DX.