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IDC COVID-19 Tech Index Shows IT Buyer Confidence Plunges in the US While Tentative Signs of Stabilization Appear in Asia/Pacific

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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.

 

 


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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

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Court Bans Kenyan Telcos from Recycling SIM Cards

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Kenya’s High Court has ruled that mobile phone numbers are not disposable assets, but constitutionally protected digital identifiers, striking at the core of a long-standing industry practice of arbitrarily reassigning inactive SIM cards without the owners’ consent.

Court Bans Kenyan Telcos from Recycling SIM Cards

In a landmark decision that could reshape telecom regulation and digital identity frameworks across Africa, sitting at Milimani Law Courts in Nairobi, Justice Lawrence Mugambi declared that reassigning a phone number without the original owner’s consent violates the right to privacy.

The ruling effectively elevates a SIM card into the same legal category as personal data tied to an individual’s private life.

At the heart of the ruling is Article 31 of the Constitution, which safeguards citizens from unnecessary disclosure of private information and interference with communications.

The court found that in today’s digital economy, a registered mobile number functions as a critical gateway to sensitive personal data, linking users to mobile money platforms like M-PESA, banking systems, email accounts, and social media profiles.

“When mobile digital identity is lost through reallocation or recycling without interrogating the reasons behind inactivity, it creates an avenue for unauthorised disclosure of delicate information,” the judgment stated.

The case, brought by Erastus Ngura Odhiambo, petitioner and former prisoner, challenged the routine telecoms practice of deactivating SIM cards after prolonged inactivity and reassigning them to new users.

Odhiambo lost access to his mobile phone number due to inactivity while serving his lengthy sentence.

He argued that the practice exposes individuals to serious risks, including misdirected financial transactions, intercepted one-time passwords, and unintended access to private communications.

The court agreed, highlighting how recycled numbers can result in strangers receiving confidential messages, authentication codes, and even being added to private messaging groups, effectively inheriting fragments of another person’s digital life.

Justice Mugambi also criticised the rigidity of SIM deactivation policies, calling them “arbitrary” for failing to consider legitimate reasons for inactivity such as incarceration, studying in restricted environments, or living abroad.

“Incarceration does not strip an individual of their constitutional rights to privacy and identity,” he noted.

For telecom operators, including Safaricom, the ruling introduces a significant compliance burden. The court outlined three strict conditions before any number can be reassigned.

Telcos must obtain informed and verifiable consent from the original owner, issue a public notice and conduct traceability efforts over a reasonable period.

More importantly, the court further directed that telecoms firms must implement technical safeguards to prevent data exposure to the new user.

The Office of the Attorney General has been given six months to translate these directives into enforceable regulations.

 


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Binance Earn: Simple Way to Earn Rewards on Idle Crypto Holdings

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Binance Earn offers cryptocurrency users an accessible way to generate rewards on idle digital assets without active trading or constant market monitoring.

Binance Earn: Simple Way to Earn Rewards on Idle Crypto Holdings

Binance Earn

As the crypto market matures, more holders seek productive uses for their assets rather than leaving them dormant in wallets. Binance addresses this through Binance Earn, where users allocate supported cryptocurrencies to various reward products for automatic yield generation.

The platform emphasises simplicity with a “set-and-forget” model: users select assets, pick a product, and rewards accrue passively in the background. This appeals especially to long-term holders aiming to enhance portfolio value over time without day-to-day involvement.

Binance Earn provides flexible options for instant liquidity access alongside fixed-term products for defined commitments, catering to diverse strategies and risk appetites.

“We’re seeing growing interest across Africa in ways to make crypto holdings more productive without active trading,” said Larry Cooke, Africa Head of Legal at Binance. “Simple, ‘set-and-forget’ solutions are becoming increasingly relevant as more users take a longer-term approach to digital assets.”

The feature reflects shifting user behaviour towards holding and gradual growth amid volatile markets, where reward rates fluctuate based on conditions, liquidity, and structures.

Users must assess risks and alignment with personal goals, as crypto remains volatile. Binance Earn positions itself as a key tool in Africa’s rising digital asset adoption, enabling hands-off participation in the ecosystem.


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New Gmail Scam Mimics Security Alerts to Steal User Data

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Cybersecurity researchers at Malwarebytes Labs have exposed a sophisticated new Gmail scam where fraudsters send fake Google security alerts via phishing emails, texts, and pop-ups, tricking users into a deceptive four-step verification process that harvests login credentials, GPS locations, contacts, and other sensitive data for account takeovers.

New Gmail Scam Mimics Security Alerts to Steal User Data

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Disguised as routine checkups, these alerts mimic Google’s official pages to create urgency, prompting victims to install malicious “security tools” that grant hackers real-time access to Gmail and linked services—Corey Donovan, president of Alta Technologies, warns legitimate checks never come unsolicited or demand downloads, urging users to close suspicious prompts immediately and verify via official Google account pages instead.

The scam’s rise amplifies risks during travel, where public Wi-Fi hotspots—especially “evil twin” fakes like slight misspellings of “Airport_Free_WiFi”—enable interception of banking details, emails, and malware installs; Donovan advises disabling auto-connect, using VPNs for HTTPS sites only, avoiding logins altogether, and crafting strong passwords with mixed characters plus two-factor authentication.

Shoulder surfing on public transport and outdated devices compound threats, as fraudsters glimpse screens or exploit unpatched vulnerabilities—keeping phones updated with post-update privacy reviews limits app access to location or commutes, while skipping work emails in view maintains confidentiality on the go.

Nigeria’s heavy reliance on digital banking and crypto heightens vulnerability, as scammers exploit rushed travellers; Donovan stresses: “Cybercriminals target busy airports and stations knowing guards drop—stay cautious, update devices, lock privacy, and never rush links to protect against these advanced breaches.”


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