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New Technologies Will Drive ICT Spending Back to Double GDP Rate, Growth- IDC

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By peter oluka

Worldwide information and communications technology (ICT) spending is set to accelerate over the next five years, thanks to the growth of new technologies including the Internet of Things (IoT), robotics, augmented and virtual reality (AR/VR), and cognitive computing and artificial intelligence (AI).

While the latest International Data Corporation (IDC) Worldwide Black Book forecasts traditional ICT spending to lag GDP growth by 2020, total ICT spending including these new categories will return to growth rates double that of the global economy.

Total ICT spending on traditional IT, telecom services, and new technologies will grow from $4.3 trillion in 2016 to $5.6 trillion by 2021, representing a compound annual growth rate (CAGR) of 6% in constant currency terms. Annual growth will accelerate through the forecast period, from 5.5% in 2017 to 6.5% in 2021, as new technologies account for a growing proportion of the overall market.

Traditional ICT spending (IT and telecom) is now a mature sector of the economy, as many technology markets continue to saturate and commoditize.

The growth of cloud will also cannibalize from traditional ICT revenues, concentrating more IT capital spending into the hands of large cloud service providers. Traditional IT spending will grow at an annual rate of 3-4% through the next five years, while telecom spending increases by approximately 1% per year.

New growth opportunities have meanwhile emerged in the new technologies which IDC calls “Innovation Accelerators” (IoT, cognitive AI, robotics, AR/VR, 3D printing, and next-gen security). New ICT spending from these categories will grow by 17% in 2017, and will continue to accelerate over the next five years as adoption levels surge around the world, including in emerging markets. IoT, robotics, and AR/VR in particular will come to represent a significant proportion of the overall ICT market by 2021.

“The Innovation Accelerators are an important driver for the 3rd Platform, which is rapidly replacing the 2nd Platform of on-premise datacenters, devices, and software,” said Stephen Minton, vice president in IDC’s Customer Insights & Analysis group. “Not only does this introduce new high-growth categories like VR viewers, drones, 3D printers, and IoT solutions, but it also represents a growing shift in traditional categories like the growth of IoT servers or cognitive AI software.”

Several years ago, IDC identified a dramatic shift to the 3rd Platform of cloud, mobile, big data and analytics and social, which quickly came to dominate industry revenues. The Innovation Accelerators will drive the next wave of 3rd Platform growth, resulting in the 3rd Platform accounting for 75% of ICT spending by 2021.

“The 2nd Platform is shrinking, but mature economies still have a large base of legacy infrastructure to maintain and migrate from,” said Minton. “Emerging markets, on the other hand, are sometimes able to leapfrog 2nd Platform technologies and move straight to rapid adoption of new platforms. Asia/Pacific, for example, has emerged as a leading innovator in the growth of IoT and robotics, having already seen explosive growth in mobile over the past few years.”

While emerging markets like Asia/Pacific (excluding Japan) are driving the growth of some new categories, enterprises in the United States continue to be early adopters of software-based innovation, including cloud, big data and analytics, and cognitive AI. It will take longer for some emerging economies to reach the same level of software development and infrastructure that has enabled the rapid growth of cloud-based computing in the U.S. Nevertheless, the direction of ICT spending is the same in every region.

“In the Central & Eastern Europe (CEE) region, most 2nd Platform technology categories are in decline,” said Thomas Vavra, vice president of Software research in the CEMA region. “Conversely, and with the exception of a couple of mobile device categories, every technology on the 3rd Platform is growing strongly. In short, 3rd Platform investments are the growth engine of the IT market in the region.”

Like many emerging markets, CEE has lagged behind some mature economies when it comes to the adoption of technologies such as cloud, which are more dependent on fixed-line infrastructure, or in the development of cutting-edge software solutions for the local market. Asia/Pacific, for example, accounted for more than 50% of global IoT spending in 2016 but only 6% of investment in cognitive AI. In the longer term, however, the continued growth of investment in mobile infrastructure and software solutions will come to drive these regions to the next level of 3rd Platform innovation.

“Mobility and IoT have already made a big impact on IT spending in the CEE region and will continue to grow strongly,” said Vavra. “Although relatively small at present, AR/VR and cognitive AI are meanwhile expected to outgrow all other technology categories over the next few years.”


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Ugo Onwuaso is an ICT enthusiast. He believes technology should be used for general good. He holds a Master of Public Administration (MPA) degree from the Lagos state University. Dear Reader, Your support matters. But we believe that technology makes life more exciting and helps improve the lives of people around Nigeria and indeed the world. That is why, we have devoted our energy to independent reportage of technology and finance and how they affect lives. Our incisive and analytical view of how technology news affects the daily life help individuals and organizations make up their minds. Quality journalism costs money. Today, we're asking that you support us to do more. Kindly support our effort to deliver technology and finance journalism to everyone in the world. Donate as little as N1,000. Bank transfers can be made to: UBA Plc 1017156876 Communication Week Media Ltd

E-Business

Expert Urges FG to Harmonise NIN, BVN to Tackle Crimes

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Noble Ajuonu, head, Sydani Technologies Ltd., has urged the Federal Government to harmonise National Identification Number (NIN) and Bank Verification Number (BVN) to tackle crimes and insecurity in the country.

Expert Urges FG to Harmonise NIN, BVN to Tackle Crimes

Ajuonu made the call at a media roundtable, organised by Sydani Group in Abuja.

The News Agency of Nigeria (NAN) reports that the roundtable focuses on driving sustainability through a comprehensive analysis of Nigeria’s key development areas.

Ajuonu said that Nigeria could overcome its security challenges and pave the way for a safer, more secure future for all Nigerians by embracing technology and implementing practical solutions,

“We need to harmonise data, prioritise seamless integration of databases like NIN, BVN, and security agency records, establish clear protocols for data sharing and access, with robust safeguards against misuse,’’ expert said.

According to him, the unified data pool will empower intelligence gathering and targeted operations.

He also called for investments in smart surveillance, intelligent video analytics software, training of personnel in data analysis, interpretation of data in real-time to combat crimes.

“There is need to implement a legal framework for call interception in criminal investigations, with strict oversight to prevent abuse, encourage community cohesion, training of tech savvy security personnel with tech-enabled tools.’’

Ajuonu also urged the government to address infrastructure deficit in technology, saying that technology was all encompassing to address insecurity.

“According to the National Identity Management Commission (NIMC), as of December 2023, only 104.2 million Nigerians had been enrolled for the National Identity Number (NIN).’’

Ajuonu added that over 122.2 million citizens left uncaptured for NIN were people in rural areas where enrolment centres, digital services were limited.

“Most crimes are being perpetuated from rural communities and this lack of comprehensive identification creates a gap where elements not captured in the national database can constitute public nuisance, crimes.

“There is the inadequacy in the integration of NIN, BVN and Voters Identification Number (VIN).

“Advanced call interception and analysis tools, used successfully in other countries, could provide invaluable insights into criminal networks and operations but infrastructure is lacking,’’ he said.

Also, Mr Godfrey Petgrave, the Agricultural Expert, Sydani Group, called for empowerment of smallholder farmers with access to finance and training to enhance productivity.

According to Petgrave, Nigeria requires policy reform and institutional strengthening to improve agricultural practices and embrace digital agriculture solutions to address food insecurity.

Mr Akolade Jimoh, another expert of the group on health, advocated for expanded community-based health insurance programmes for rural and underserved areas.

Jimoh added that the country needed to encourage Public Private Partnership to revolutionise products design and quality improvement on health services.


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Konga launches Infinix Brand Week with Incredible Deals

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Konga, Nigeria’s leading composite e-commerce group, is thrilled to announce the launch of amazing deals at its Infinix Brand Week. Infinix, a leading global smartphone brand known for its innovative products and cutting-edge technology promises exclusive discounts and special offers on select smartphones, marking an exciting milestone in the realm of online shopping.

Shoppers can expect nothing short of extraordinary deals on a wide range of Infinix products, all available exclusively on the Konga online platform. With discounts of up to 30% off, this partnership between Konga and Infinix aims to redefine the shopping experience for tech enthusiasts across Nigeria.

Konga Brand Week has become synonymous with excitement and unbeatable deals, and this year’s edition is no exception. In addition to exclusive discounts on Infinix smartphones, shoppers can explore a diverse array of products across various categories, including electronics, fashion, home essentials, and more.

“At Konga, we are dedicated to providing our customers with the best shopping experience possible,” said Rita Ohaedoghasi, VP Marketing at Konga. “The Infinix Week during Konga Brand Week allows us to continue delivering on that promise by offering incredible discounts and special offers on some of the most sought-after smartphones in the market.”

To stay updated on the latest developments and exclusive deals during Konga Brand Week, shoppers are encouraged to connect with Konga across all platforms, including social media and the Konga website. Don’t miss out on this opportunity to score big savings and elevate your tech game with Infinix and Konga.


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Study Reveals Software Programmers to make Full Use of AI Code Assistants

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Gartner predicts that by 2028, 75 percent of enterprise software engineers will use Artificial Intelligence (AI) code assistants, up from less than 10 percent, currently.

According to a Gartner poll of 598 global respondents conducted in the third quarter of 2023, 63 percent of organisations are now testing, deploying, or have previously implemented AI code assistants.

AI code assistants provide for more capabilities than only code development and completion, notes the research firm.

According to Gartner, the use of AI code assistants can lead to higher work satisfaction and retention, resulting in lower turnover costs.

Philip Walsh, senior principal analyst at Gartner, comments: “Software engineering leaders must determine ROI and build a business case as they scale their rollouts of AI code assistants.

“However, traditional ROI frameworks steer engineering leaders toward metrics centred on cost reduction. This narrow perspective fails to capture the full value of AI code assistants.”

Gartner notes that software engineering leaders must “reframe the ROI conversation from cost reduction to value generations”.

Walsh adds: “Calculating time savings on code generation is a good place to begin building a more robust value story. To convey the full enterprise value story for AI code assistants, software engineering leaders should connect value enablers to impacts, and then analyse the overall return to the organisation.”

 


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