IDC said that spend on ICT in India will grow over 10% in 2021 to touch $91 bn and hit $111 bn by 2024. The revival of economic activities and growing consumer demand will accelerate this growth, said the report. BFSI and telecom will be the biggest contributor to the growth by with 14% of the overall ICT spend. The sector may grow at 7.8%, following the increased ICT investments in improving customer experience, business continuity, and cybersecurity.
Worldwide server market revenue grew 1.5 % YoY to $25.8 bn during the Q4 of 2020, said IDC. The global server shipments, however, declined 3% YoY to nearly 3.3 mn units during the period. “Global demand for enterprise servers was relatively flat during the Q4 of 2020 with the strongest demand coming from China,” said IDC Analyst Paul Maguranis. IDC said that servers running AMD (100.9%) CPUs and ARM-based servers ( 345%) continue to grow revenue YoY.
The India public cloud services market, including IaaS, PaaS, and SaaS, touched $1.6 bn in the H1 2020, said IDC in a report. The overall India public cloud services market is likely to touch $7.4 bn by 2024, growing at a CAGR of 22.2% for 2020-24. SaaS formed the largest component (63%) of the overall public cloud services market in the period followed by IaaS and PaaS. The public cloud services market has grown 3X since 2016, according to the report.
The demand in PCs led by the COVID-19 pandemic will continue to rise in the year 2021 as well, said IDC. The research firm said shipments of PCs will grow by 18.2% YoY in the Q4 of 2020 and 1.4% in 2021. The market for computers will be driven by the notebooks, which is likely to grow by 26.4% YoY in the Q4 of 2020, while shipments of the desktop will drop during both the periods. The demand for PCs has been driven by emerging markets like India.
The IT and Business Services market in India is projected to grow annually by 5.4 % to reach $13 bn by the end of the year, said an IDC. In the first half (Jan-June), the India IT and Business Services market grew by 5.3 % (on-year) as compared to the 8.9 % growth in the first half last year. When it comes to only IT Services, the market contributed 77.4 % in the first half this year and grew by 5.9 % (on-year) compared to the 9.3 % growth in 1H2019.
The digitalisation of the global economy will drive $6.8 tril of IT spending from 2020 to 23, said IDC. The firm predicted that 65% of global GDP will be digitalised by 2022. By Dec 2021, 80% of the firms will plan to shift to cloud-centric infra and apps 2X faster as before the pandemic. Digitalisation will enable quick responses to the business needs while creating a strong foundation enabling the business to scale faster and with greater operational flexibility, it said.
India’s AI spend will grow from $300.7M in 2019 to $880.5M in 2023 at a compound annual growth rate of 30.8%, said an IDC report. 50% of Indian enterprises plan to increase their AI spend this year. However, data trustworthiness and difficulty in selecting the right algorithm, are some of the top challenges that hold them back from implementing AI tech. Organisations are now realising that their business plans must be closely aligned with their AI strategies.
Google Cloud partners are expected to generate $6.11 in 2020 and up to $8.33 in revenue for every $1 of Google Cloud products sold, giving them a chance to grow over 3.7 times by 2025. Google Cloud partners, on average, are growing 35%-75% y-o-y. Their revenue, according to the report by IDC, is more than Google Cloud itself. The partners who’re creating their own unique IP address around the Cloud are seeing very strong margins associated with their products.
IDC reported 5G smartphones will capture 50% of the global market by 2023. While many top vendors have reduced their 2020 production plans to cope up with the market decline, most of the cuts are from 4G portfolio. Most producers say that, by the end of 2020, their portfolio will be dominated by 5G. The continuous supply of 5G phones coupled with the disrupted economy may reduce ASPs to $495 by 2023, making them affordable and hence quite popular.