The current global IT and communication market
IT Candor, a market research company in the IT and Communications industry, has published a presentation detailing the state of the global ITC market.
From their research they found that the total worth of the global ITC market (a year to the end of June 2017) is £4.8T ($6.1T). U.S have the biggest market share at 29%, while the EU have 20%, and the UK have 5%.
The total market worth corresponds with Deloitte’s description of IT being ‘a large ecosystem’. Someone earned their consultancy fee there.
Deloitte suggest that for companies to stand out in this large marketplace they need to adopt a ‘flexible consumption’ model to accommodate the range of uses .
Gartner predicted in 2015 that by 2020 80 per cent of software vendors will be using consumption-based model.
IT Candor show that the market is made up of a range of services, some of these include: wireless, analytics, service as a software, processor as a software, Internet service, software and hard maintenance.
Wireless is one of the biggest services, but has a slow growth. In comparison, Software as a Service (SaaS) is a smaller market but a faster growing one. This aligns with Deloitte’s findings that there is an increase use of cloud services.
IT Candor found that ITC spending (in the US and UK) has decreased. In the US, spending started to decrease in the first quarter of 2016, and has continued to do so. UK ITC spending began to fall in the last quarter of 2015, but has begun to increase in the first two quarters of this year.
On the ITC spending graph, ‘Trump election’ and ‘Brexit vote’ have been marked. In the presentation of this research, Martin Hingley stated that this is not a suggestion that these events exasperated the decrease in ITC spending, but they are symptoms of nationalism which have influenced this trend.
Deloitte state that machine learning is a promising market sector due to the amount of investment and research this area is receiving. Another IT industry trend that Deloitte discuss is the ‘opening up of whole new markets’. Connected vehicles, e-medicine, fintech are all listed as examples of these new markets.
With the opening of new markets, and the increase in advanced and complex technology, IT Candor end their market research with a hint of warning; ‘We should think beyond the boundless possibilities of technology to how it can be best applied to this changing need’.