Paris, October 12, 2021 – Having the right IT capabilities and relying on a cloud-first and data-first orientation are current priorities for enterprises. However, to advance their digital transformation plans and fully realize the opportunities presented by emerging technologies such as artificial intelligence (AI), the Internet of Things (IoT) and the multi-cloud, organizations must first re-evaluate their IT investments.
A new study, commissioned by Teradata (NYSE: TDC) and conducted by independent research firm Vanson Bourne in August 2021, explores areas of investment in data-driven transformation for the coming years.
Market volatility changes IT investments in 2022
As a result of the economic impact of the pandemic, 87% of companies would rethink their IT investments for 2022 and beyond, primarily due to significant changes in consumer spending and market uncertainty.
- 93% of companies surveyed say that when re-evaluating their IT investments, modernizing cloud architecture and improving data management and analytics capabilities top the list of investment areas to accelerate their digital transformation plans.
- While 50% of IT decision makers indicate that their organizations do not plan to increase their investment in data governance at this time, 89% believe that their organizations should continue to prioritize data governance and accountability initiatives.
Emerging technologies are a general priority
IT decision makers point to emerging technologies – multi-cloud infrastructure, IoT, 5G, Edge Computing, AI and analytics – as critical areas to increase spending over the next three years.
- 90% of survey participants believe that emerging technologies, including automation, will transform their business in the next 3 years.
- 3 out of 4 IT decision makers believe that their company’s digital transformation plans, or lack thereof, could prevent their company from fully realizing the benefits brought by key emerging technologies, such as AI and machine learning.
“Today, businesses are aware of the need to leveragekey emerging technologies to maintain their competitiveness. In fact, 87% of IT decision makers are concerned that they will be left behind by their competitors if they don’t,” commented Steve McMillan, CEO of Teradata. ” To take full advantage of this, organizations need to modernize their architectures to leverage the cloud and direct investments to other emerging technologies, such as developing AI at scale or deploying the intelligent edge. They will then be able to combine new and innovative data sources with their own and derive the insights needed to be more relevant and to react quickly while continuing to innovate at scale. “
Lack of cloud readiness undermines digital transformation
While making plans to adapt their digital innovation strategy in the wake of the pandemic, IT leaders are also looking at how to quickly migrate to the cloud.
- For example, 82% are concerned that a lack of preparation for the cloud will seriously hinder the acceleration of their digital transformation projects.
- 85% of IT decision makers also believe that digital innovation strategies and transformation efforts have been further amplified by significant changes in consumer buying behavior, with verticals such as retail, distribution and transportation(87%) among the most affected.
In August 2021, Teradata commissioned independent research firm Vanson Bourne to conduct a quantitative survey of IT and operational decision makers in the United States, United Kingdom, France, Germany, China, Singapore, Japan, Australia, and India. Survey participants are companies with at least 3,000 employees and annual revenues of more than $250 million. They include private and public companies in business and professional services; financial services; information technology, new technology and telecommunications; trade, distribution and transportation; manufacturing and other commercial sectors. The interviews were conducted online following a rigorous multi-level screening process to ensure that only relevant participants were selected.