Information and Communications Technology (ICT) is in constant evolution. Yet, 2020 accelerated the growth of a number of information technology trends. It has shone a spotlight on the critical role technology now plays in reacting to, and mitigating the impact of, unanticipated worldwide crises. Having the right properly-maintained infrastructure in place has never been more important. Not only for individuals and companies. Also for governments and NGOs. What to expect next year? Here the 3 key ICT industry trends to watch in 2021.
3 Key ICT Trends
As the start of a new year nears, we are all anxious about what lies ahead. We’ve selected three key ICT industry trends to watch in 2021. This article explains how they will impact the multi-vendor IT hardware and TPM (Third-Party Maintenance) markets.
Impact on IT Hardware & TPM markets
Let’s take a look at the 3 Key ICT trends for 2021:
Trend 1: New technologies make up an increasing percentage of ICT spend.
The first key ICT Trend is that “New technologies will make up an increasing percentage of ICT spend.” Due to the global health crisis of 2020, ICT spending remained essentially flat. Yet, ICT spending is forecast to start increasing again in 2021. With a growing percentage earmarked for investment in new technologies.
According to IDC, the emergence of the Internet of Things (IoT) already contributes significantly to market growth. Within the next decade new technologies such as Robotics, Artificial Intelligence(AI), Machine Learning(ML) and augmented virtual reality (VR) will also expand. It is estimated to represent over a quarter of ICT spending. But there are a few caveats:
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- Barriers to the adoption of new technologies
Barriers to the adoption of new technologies mean this trend may take longer to gain ground in certain places. For example a lack of cloud infrastructure in emerging markets.
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- Small companies
Smaller companies are also likely to take longer to increase new technology spend. As end-of-cycle hardware replacements drive them more fiercely.
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- Adoption of new Technologies
Lastly, a grain of salt may be in order. Enthusiasm for new technologies may outplace their actual adoption. Gartner found for Artificial Intelligence (AI) only one in five CIOs achieved their 12-month adoption objectives.
Any technology relies on physical hardware and infrastructure that needs to be maintained to function properly. Even the newest. Therefore it is wise to forecast maintenance needs together with new ICT investment. And not in five years’ time. After it’s out of warranty from the OEM (Original Equipment Manufacturer).
Furthermore, supporting companies by extending the life of their existing infrastructure and offering refurbished core equipment delivers savings which can be reinvested in new technologies.
Trend 2: Growing demand for second-hand ICT hardware
The second key ICT Trend is a “Growing demand for second-hand ICT hardware.” The purchase of second-hand hardware is on the rise and is expected to continue its upward trajectory in 2021 and beyond. IDC puts its CAGR at 5% and estimates sales of used ICT infrastructure will reach $36 billion by 2024.
The key drivers of the trend appear to be a greater concern for the environment by companies, their millennial employees and policymakers, as well as financial considerations, both for buying and selling second-hand equipment.
Although the economic downturn of the past year has certainly helped bolster the eco/budget-friendly trend, this shift predates the Covid-19 crisis, demonstrating a more fundamental and resilient trend. Susan Middleton, research director for flexible consumption and financing strategies for information technology at IDC, says that second-hand equipment purchases are often made to add capacity rather than for equipment refreshes.
Organizations also benefit from acquiring fully configured systems as an alternative to buying new. Lastly, this purchasing approach also ensures that savings generated can be reinvested elsewhere in the business in what amounts to great decision making.
As a vendor of second-hand hardware for over 35 years, Evernex is keenly aware of this trend. We have observed the growth of this market firsthand and expect to see it gain even more momentum in 2021. Our ability to refurbish and certify equipment makes us a valuable partner to our customers as they look to optimize their infrastructure costs without compromising on functionality or quality.
Trend 3: The Cloud will continue to evolve, as will the demand for it.
The third key ICT Trend is “The Cloud will continue to evolve, as will the demand for it.” Cloud computing usage and reliance has been steadily growing over the past decade and, despite challenging economic conditions, its share of the computing market continued to increase in 2020. Booming remote working requirements are pushing organizations to invest more heavily in their cloud capabilities and applications.
Deloitte highlights that many business processes are now using an approach called “hybrid cloud” or a mix of public and private cloud environments, which usually includes on-premise resources. This is consistent with “data repatriation”, another trend where organizations move data back from the cloud to on-site servers to improve security, availability and cost effectiveness, as well as regain a greater measure of control over their data. We are seeing this trend play out in the market as Evernex clients continue their cloud migration and increasingly adopt a combination of both on-premise and off-premise solutions.
Wherever there is cloud, there are data centers and infrastructure that need to be rigorously maintained. The evolution towards a hybrid cloud model is particularly interesting for IT hardware and TPM providers like Evernex because we have a lot to offer enterprises that are looking for the right balance between off-site cloud services and on-premise servers at a sustainable price.
2021: a year of continued growth, evolution and opportunity
If the above demonstrates anything it is that despite the disruptive year experienced in 2020, ICT trends are continuing to build progressively in several areas and in the same direction they were going in prior to the global crisis. Concerns around investment in innovative technologies, cost, data security and control, as well as sustainability have been at the fore for tech companies and other businesses for a number of years and they will continue to drive change and purchasing decisions in 2021.
3 key trends in it industry
As seen above, these three key ICT Trends are forecasted for 2021. The next twelve months are set to be bright for the IT hardware and TPM markets. Organizations continue to increase their on-premise and off-site infrastructure requirements. Particularly through hybrid cloud models. And they will move towards the adoption of second-hand equipment purchasing. The role other innovations, such as 5G technology and quantum computers, remains to be seen. Yet these trends are already making their mark.
Evernex has leveraged its technical and business expertise to become a leading provider for critical IT systems and maintenance services worldwide. Contact us today to learn more about how we can assist you with maintaining your critical IT infrastructure.
