Gartner analysts estimate next year's global spending on the IT sector to be $4.5 trillion. What areas will these funds be spent on? Why should one invest in Cloud technology, Decision Intelligence, or AI Decision Making, and Enterprise Software? Forecasts are not always accurate. According to the trends of the past two years and forecasts of leading analysts, it is possible to single out the main trends of the coming 2022. Sergey Kartashov (Sergejs Kartasovs), an IT investor and the Senior Partner at technology company Roosh, speaks about them.
Artificial intelligence is gaining momentum
According to Sergey Kartashov, IDC experts predict that European spending on AI development will exceed $50 billion over the next four years. The average annual growth is almost 30%. According to IDC estimates, in 2022, European investments in AI will amount to $22 billion. The fastest-growing spending will be on healthcare projects, customer service automation systems, and sales force automation systems. Such tendencies are associated with the impact of the COVID-19 pandemic. Quarantine restrictions forced the market to adapt, and therefore, the value of implementing intelligent and automated solutions has grown. Virtual assistants, online translators, mobile applications, payment systems, money transfers, digital service delivery models, and Service Receipt models-all these together allow optimizing the workflow and make everyday life around us more convenient and simpler.
As an example of implementing AI technology, Sergey Kartashov mentions the last year's German football championship. One of Bundesliga's largest investments is the investment in the start-up Track 160, a system that allows real-time tracking movements of players and a ball and instantly processes and displays data on the smartphone screen. At the same time, the German Football Association signed an agreement with Amazon that allowed to get in-depth statistics and highlights about each player during the match, and the AI determined what content to send to a user, so, for example, information on the forward Erling Holland will mainly be targeted at users from Norway.
Kartashov (Sergejs Kartasovs) notes that sport is just one of the many areas that rapidly undergo AI-based digital transformation today. According to experts from leading consulting companies, digital technologies will create more than 60% of global GDP next year.
Decision Intelligence is the future
Decision Intelligence, or Artificial Intelligence for decision-making, is a very new applied discipline at the intersection of data science, social sciences, and management. Decision Intelligence allows competently managing projects, planning goals, prioritizing them, etc. Decision Intelligence transforms information into best practice at any level. In the forthcoming years, up to a third of the world's leading companies will use AI for the decision-making process in order to increase their competitiveness in the market. As an example of implementing such technology, Sergey Kartashov mentions financial consulting firm Morgan Stanley that uses an AI-based wealth management platform. Lloyds Banking Group uses DI technologies to analyze customer behavior, predict their needs and problems, and customize their products and services. And medical start-up Enlitic Cure, powered by innovative solutions, allows doctors to quickly diagnose and create an optimal treatment plan for a patient.
Dynamic development of cloud technologies
According to experts, by mid-2022, most companies worldwide will switch to cloud infrastructure-services and storage. The transition rate will double compared to the "pre-covid" period. As a result, business owners and CEOs will need to improve the digital resilience and business continuity of their organizations. Managing, optimizing, and protecting diverse cloud resources and data sets remain the most critical operational tasks. Senior Partner at Roosh insists that achieving this goal will require deep integration of predictive analytics, AI and ML technologies, and widespread adoption of low-code and serverless workflows. Today, serverless computing is used in finance, media, medicine, and social networks. This model is adopted by Facebook, Slack, Zoom, Netflix, and Amazon. Netflix, for example, uses the AWS Lambda system, which chunks videos and encodes them into 60 parallel streams. As a result, Netflix's streaming service can provide broadcasts to hundreds of millions of subscribers worldwide. Serverless infrastructure is used in software development, for analyzing large amounts of data, or in AI-based projects.
Corporate software helps businesses
A major financial investment is expected in the smart work environment. Almost 70% of Forbes Global 2000 companies are striving to enable employees to work synchronously in real time, without being under the roof of the office. The hybrid work mode will remain relevant in 2022. Experts estimate that by 2023, 75% of organizations using remote or hybrid workforce models will have 25% more revenue compared to their more conservative competitors. Sergey Kartashov explains that it means that the cost of corporate software will grow. The investor provides an example of TestBox, a startup launched this summer. The startup provides a toolkit for selecting and testing corporate software: a team can use it to select the most suitable software product for their requirements and test it before purchasing. The project raised $2.7 million in a seed round. According to Gartner, about $670 billion will be spent on business software on a global scale. In addition, one should also expect a significant increase in the cost of IT equipment and hardware.
Data security. Both ordinary users and giant multinational companies are interested in cybersecurity. The number of cyberattacks against financial companies alone has increased 400 times over the past year. According to a Gartner survey of 2,387 IT leaders in 85 countries worldwide, 66% of them plan to increase spending on digital security. In 2022, they will actively develop both software and hardware that enhance the protection of sensitive data and more complex systems. For example, Cybersecurity Mesh. Its purpose is to provide secure user access to any resource with data, regardless of where a user and the data are located. This way, there appears a reliable protection perimeter. According to analysts, companies using solutions based on Cybersecurity Mesh will be able to reduce risks from potential cyber intruders by 90% on average.
Mobile will lead the gaming industry
As the last trend, Sergey Kartashov (Sergejs Kartasovs) mentioned the increasing of mobile gaming part. Unity has published a study that mobile gaming will generate the bulk of the industry's revenue next year. This tendency is explained by the wide availability of smartphones. By 2025, experts predict the number of mobile gamers will increase to 2.2 billion. By 2023, according to a Newzoo study, mobile game developers will have earned over $100 billion. This is half of the revenue of the entire gaming industry. The pandemic played an essential role here since, during the isolation, gamers began to play more and spend more on games.
Another important factor is the proliferation of 5G that helped easier release high-budget multiplayer games on smartphones. Consequently, competition in the mobile gaming industry is growing, and along with it, development companies have to experiment with genres, forms, and technical solutions. Thus, one of the main trends in the forthcoming years will be merging social networks and games. Game universes are increasingly becoming a place for creating and maintaining social relationships. The blurring of the boundaries between entertainment and socialization is borne out by research by Morgan Stanley's AlphaWise. According to it, 30% of surveyed gamers said that their gaming universes are a platform for communication and social connections. These trends point to the convergence of social media and games, which will further accelerate the popularity growth of platforms that provide a completely digital environment using virtual and augmented reality devices.
The global market is still recovering from the pandemic
Nevertheless, it remains unstable, and financiers predict a gradual economic growth in the post-covid period no earlier than 2024. The IT area remains promising even in such a difficult time because information technologies in all their diversity make it possible to resist other areas-from business and finance to medicine and education.