Annual spending on digital transformation (DX) initiatives in the Middle East, Turkey, and Africa (META) region is set to top $38 billion by 2021, according to the latest insights by International Data Corporation (IDC).
The research firm says the quest to scale digital businesses will lead to organisations in META adopting a 'cloud-first' or 'cloud-only' approach, with spending on public cloud services topping $1.1 billion in 2018.
"The ICT industry is entering the 2nd chapter of the 3rd platform era, built on technologies and business models that will dramatically accelerate - and scale - digital innovation," says Crawford del Prete, IDC's chief research officer and executive vice president for worldwide products.
"The META region finds itself at the DX tipping point and is well poised to accelerate its adoption of 3rd Platform technologies like cloud and big data analytics, as well as highly disruptive innovation accelerators such as the Internet of things, artificial intelligence, cognitive systems, robotics, augmented/virtual reality, 3D printing and blockchain."
The emergence and widespread adoption of these technologies will accelerate innovation and transform the ICT landscape as we know it, notes Del Prete.
IDC notes spending on cognitive and artificial intelligence systems in the Middle East and Africa region will reach $114.22 million by 2021.
"Africa's cognitive use cases are predominantly in verticals such as healthcare, telecoms, banking, retail and transportation; with large South African enterprises using cognitive to improve customer engagement and help call centre agents with the high volume of calls they receive," says IDC.
Similarly, a Dimension Data report notes artificial intelligence, machine learning, and virtual and augmented reality, have the potential to deliver disruptive outcomes and reshape digital business in 2018.
It says incumbent companies will shore up their digital infrastructure so they are leaner, more flexible and better placed to adapt to an unpredictable market.
In December 2017, IDC forecast worldwide spending on digital transformation technologies (hardware, software, and services) to be nearly $1.3 trillion in 2018, an increase of 16.8% over the $1.1 trillion spent in 2017.
It says the majority of digital transformation spending in 2018 ($662 billion) will go toward technologies that support new or expanded operating models as organisations seek to make their operations more effective and responsive by leveraging digitally-connected products or services, assets, people and trading partners.
Also, the second largest investment area in 2018 ($326 billion) will be technologies supporting omni-experience innovations that transform how customers, partners, employees, and things communicate with each other and the products and services created to meet unique and individualised demand.
Information will also be an important digital transformation investment area ($240 billion in 2018) as organisations strive to obtain and leverage information for competitive advantage through better decisions, optimised operations, and new products and services, says IDC.
Share