Telecom
IDC COVID-19 Tech Index Shows IT Buyer Confidence Plunges in the US While Tentative Signs of Stabilization Appear in Asia/Pacific
The recent data released by International Data Corporation’s COVID-19 Tech Index revealed that IT spending expectations will remain uneven, with significant differences across countries, industries, and companies.
Overall sentiment in the US has dropped in the past two weeks, as businesses adjust to bearish GDP forecasts for Q2, and confidence remains soft in Europe.
There are tentative signs of improvement in the Asia/Pacific region, however, with confidence levels showing gradual recovery in China and other countries.
Businesses continue to indicate likely cuts to spending on traditional IT products and services in the near term with deep cuts projected by companies that have been directly impacted by the COVID-19 crisis and the resulting economic shutdown.
While some firms point towards increased spending on specific technologies, all indicators point towards a significant overall contraction in the next few months with the pace of recovery highly dependent on the pace and stability of measures to reopen economies around the world in Q3.
Stephen Minton, program vice president in IDC’s Customer Insights & Analysis group said, “A month ago, overall spending projections by IT buyers were still positive in a few areas like artificial intelligence (AI) and other digital transformation projects.
“US companies were especially reluctant to impose delays on strategic IT projects and deployments, but the reality of a major economic contraction in Q2 appears to have caught up with CIOs and IT departments in the last few weeks.
“Where demand is still increasing, it is increasingly focused on a narrow range of technologies that are critical to support remote workers, such as videoconferencing and remote access solutions.”
The COVID-19 Tech Index uses a scale of 1000 to provide a directional indicator of changes in the outlook for IT spending and is updated every two weeks.
The index is based partly on a global survey of enterprise IT buyers and partly on a composite of market indicators, which are calibrated with country-level analyst inputs relating to medical infection rates, social distancing, travel restrictions, public life and government stimulus. A score above 1000 indicates that IT spending is expected to increase, while a score below 1000 points towards a likely decline.
IT buyer confidence in Europe seemed to stabilize in the first half of April, but then dipped again towards the end of the month.
This eb and flow in sentiment is likely to continue for a while as businesses react to uncertainty around the pace, effectiveness, and risks associated with scaling down the restrictive measures that have successfully slowed the spread of the virus but also have led to what most economists believe will be a huge GDP downturn in the current quarter.
“While US and European firms became a little more pessimistic in the second half of April, businesses in Asia/Pacific showed some signs of improving confidence, which reflects a general sense of optimism that the worst may be over in a few countries including China.
“The crisis began in China and it makes sense that it may end there soonest, although it’s too soon to be sure this isn’t a false dawn given that measures to open the economy will be carefully managed for any signs of a second wave of infections.
“The impact on IT spending will be continued uncertainty for some period with many firms lacking the visibility to make major strategic decisions or commit to short-term spending increases,” said Minton.
Market indicators are still more negative than buyer intent surveys with most economists now extremely pessimistic about the near term while restrictions remain in full force across many countries.
Early measures to begin relaxing lockdown measures in some European countries will be watched closely by other countries including the US, and any sign of returning strain on health services could lead to a more prolonged period of social distancing.
In this uncertain environment, businesses will continue funding mission-critical IT deployments including cloud services and will seek to support remote workers, but some new projects will inevitably be deferred.
“The cloud isn’t going anywhere, all of the data stored in the cloud isn’t going anywhere, and the need for companies to analyze and extract value from all of that information isn’t any less today than it was three months ago. said Minton.
“But decisions to fund new deployments will be hard to make for firms experiencing major declines in revenue and spending cycles will be longer while decision makers are spread around the world in remote locations.
“New tech products will come to market more slowly and upgrades to office networks or equipment are a low priority while offices remain closed.
“These headwinds will pass, but there are still milestones to clear before IT spending begins to grow again.”
The IDC COVID-19 Tech Index is a leading indicator for IT spending, which is designed to provide rapid updates to changes in buyer sentiment and underlying market indicators before these are factored into official market and macroeconomic forecasts.
The index is based on a scale whereby a score higher than 1000 indicates growth in IT spending, while a score below 1000 indicates a decline.
Complete results from the most recent index as well as additional research related to the pandemic can be found on IDC’s COVID-19 microsite at https://www.idc.com/covid19.
The index is based on surveys of enterprise IT buyers around the world, who are asked to provide guidance on a variety of factors including general business confidence, overall IT spending plans and specific changes to budget allocations for individual technologies. Additionally, the index score is weighted with a composite of “market indicators” that include macroeconomic forecasts calibrated with inputs relating to medical data, social isolation measures, and the impact of government stimulus.
IDC will host a special COVID-19 Tech Index webinar on May 7th at 11:00 am U.S. Eastern time.
In the presentation, Stephen Minton and Jessica Goepfert will discuss the most recent index results, the outlook for technology spending by industry, and how the pandemic is impacting various organizations around the world. Details and registration for this webinar are available at https://bit.ly/3cjMm4w.
Airtel Africa said on Tuesday it has partnered with SpaceX to introduce Starlink’s direct-to-cell satellite technology to all its 14 markets.
The satellite-to-mobile service will begin across Africa in 2026, with data for select applications and text messaging, Airtel Africa said in a statement.
Airtel Africa customers with compatible smartphones in regions without terrestrial coverage will have network connectivity through Starlink.
The deal also includes “support for Starlink’s first broadband Direct to Cell system, with next-generation satellites that will be capable of providing high-speed connectivity to smartphones with 20x improved data speed,” Airtel Africa said.
Last month, Kyivstar, Ukraine’s largest mobile operator, became the first in Europe to launch Starlink’s direct-to-cell satellite technology in a bid to keep millions connected amid wartime blackouts and disrupted infrastructure.
Nigerian Communications Commission (NCC) has blamed the actions of the National Oil and Gas Suppliers Association (NOGASA), for the recent telecom blackout experienced in the Abuja area.
NCC
A statement issued on Friday by the Head, Public Relations, NCC, Mrs. Nnenna Ukoha, while acknowledging the challenges and impact of the degraded Quality of Service (QoS) in the area on subscriber experience, stated: “The challenges are a result of the activities of the National Oil and Gas Suppliers Association (NOGASA), which disrupted diesel supplies to sites with the attendant telecommunications services outages in Abuja.”
She however disclosed that the telecommunications sector regulator is committed to ensuring restoration of seamless communication services to the affected area, and all Nigerians at large, and recognizes the importance of reliable power supply for the provision of optimal telecommunication services.
“The Commission is collaborating with major stakeholders and licensees to address these challenges, largely caused by disruption to diesel supply affecting IHS Nigeria Limited, the colocation provider responsible for powering Airtel and MTN base stations in the affected areas.
“The NCC is actively engaging with relevant stakeholders to address the diesel supply issues and explore sustainable solutions.
“The Commission urges all parties to work together to collaboratively resolve these challenges swiftly by removing the diesel supply bottlenecks affecting critical telecommunications infrastructure, arising from NOGASA’s actions.
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“In the face of these challenges, we reiterate our commitment to fostering a conducive environment for the growth and sustainability of telecommunications services in Nigeria.
“We are taking proactive steps to facilitate dialogues between the impacted service providers and other stakeholders to promptly resolve the diesel supply concerns that have negatively impacted service quality.”
While assuring that the Commission remains dedicated to effectively managing the situation and will keep the public updated on progress towards restoring full telecommunication services in Abuja, Mrs. Ukoha appreciated subscribers for their patience.
“We thank telecommunications subscribers for their understanding and patience during this period and reaffirm our commitment to delivering high-quality telecommunications services nationwide,” she said.
Mallam Kashifu Inuwa Abdullahi, Director-General of the National Information Technology Development Agency (NITDA), has called for a fundamental shift in Kano State’s economic strategy, urging stakeholders to embrace innovation, technology and collaboration as the drivers of growth in the 21st century.
Mallam Kashifu Inuwa Abdullahi, Director-General of the National Information Technology Development Agency (NITDA)
This is contained in a press statement e-authored by the Director of Corporate Communications & External Relations at NITDA, Hajia Hadiza Umar.
Speaking at the Kano Startup Weekend, Mallam Abdullahi acknowledged Kano’s long-standing reputation as the commercial nerve centre of Northern Nigeria and the wider Sahelian region, noting that its history of trade, enterprise and human capital provided a solid foundation for future growth.
Abdullahi emphasised that while these strengths powered Kano’s success for centuries, the modern economy now offered even greater opportunities through innovation and technology.
He described innovation as the process of transforming ideas into impactful solutions through commercialization, stressing that when ideas were effectively deployed, they created value, solved societal challenges and generated sustainable economic growth.
He noted that Kano’s large market, strategic location and vibrant entrepreneurial culture placed it in a strong position to take advantage of innovation-driven opportunities.
According to him, “Innovation is the process of taking an idea from inception to impact. Invention on its own is a cost centre, but when you commercialise an idea, when you turn it into a product or service that solves a real problem and creates value, that is when you begin to drive economic growth and inclusion.”
He noted that the state hosted numerous degree-awarding institutions across federal, state and private ownership, providing a strong base for human capital development.
However, the NITDA DG expressed concern that these institutions often operated in isolation from industry, with research outputs rarely translating into commercial or industrial applications.
He explained that innovation did not happen in silos and stressed the need for a strong, interconnected ecosystem that brought together academia, industry, startups, entrepreneurs and government.
According to him, universities should conduct research informed by industry needs, industries should leverage research to improve productivity and competitiveness, and startups should serve as the bridge that converted ideas into market-ready solutions.
The NITDA boss further encouraged entrepreneurs to leverage technology to build businesses that could grow beyond local markets, explaining that innovation-driven enterprises had the power to scale rapidly, create jobs and position Kano competitively at both national and global levels.
According to him, digital platforms and emerging technologies now made it easier for startups to reach wider markets and develop solutions that were previously unimaginable.
“You can start your business here in Kano, but your thinking must be global from day one. Technology has removed barriers. With the right skills and platforms, a startup in Kano can build solutions that serve not just Nigeria, but the world,” he noted.
Highlighting NITDA’s ongoing interventions, its Director-General outlined the Agency’s commitment to building national innovation capacity through targeted human capital development programmes.
He cited the Digital Literacy for All (DL4ALL) initiative, which aimed to equip Nigerians across all segments of society with essential digital skills, and the 3 Million Technical Talents (3MTT) programme, designed to produce a pipeline of globally competitive technical professionals in areas such as software development, data analysis and emerging technologies.
He said, “Through DL4ALL, we are ensuring that Nigerians at all levels have the basic digital skills needed to participate in the digital economy, while 3MTT is deliberately building a pipeline of globally competitive technical talents who can drive innovation, create jobs and attract investment.”
Abdullahi explained that these programmes were key pillars of President Bola Ahmed Tinubu’s Renewed Hope Agenda, which prioritised skills development, innovation, job creation and inclusive economic growth as pathways to national prosperity.
According to him, empowering Nigerians with digital and technical skills was essential for building a resilient economy capable of competing in the global digital landscape.
“President Tinubu’s Renewed Hope Agenda is about investing in people, empowering them with relevant skills and creating opportunities for inclusive growth.
“At NITDA, we are using digital skills and innovation as tools to translate that vision into real economic impact for Nigerians,” he said.
The NITDA boss urged all stakeholders in Kano to work together to build a functional innovation ecosystem that could unlock the state’s vast potential and expressed confidence that with the right mindset, strong collaboration and sustained investment in digital skills and innovation, Kano could reclaim its historic leadership role and emerge as a major innovation and entrepreneurship hub in Nigeria and beyond.
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