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New Technologies Will Drive ICT Spending Back to Double GDP Rate, Growth- IDC

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By peter oluka

Worldwide information and communications technology (ICT) spending is set to accelerate over the next five years, thanks to the growth of new technologies including the Internet of Things (IoT), robotics, augmented and virtual reality (AR/VR), and cognitive computing and artificial intelligence (AI).

While the latest International Data Corporation (IDC) Worldwide Black Book forecasts traditional ICT spending to lag GDP growth by 2020, total ICT spending including these new categories will return to growth rates double that of the global economy.

Total ICT spending on traditional IT, telecom services, and new technologies will grow from $4.3 trillion in 2016 to $5.6 trillion by 2021, representing a compound annual growth rate (CAGR) of 6% in constant currency terms. Annual growth will accelerate through the forecast period, from 5.5% in 2017 to 6.5% in 2021, as new technologies account for a growing proportion of the overall market.

Traditional ICT spending (IT and telecom) is now a mature sector of the economy, as many technology markets continue to saturate and commoditize.

The growth of cloud will also cannibalize from traditional ICT revenues, concentrating more IT capital spending into the hands of large cloud service providers. Traditional IT spending will grow at an annual rate of 3-4% through the next five years, while telecom spending increases by approximately 1% per year.

New growth opportunities have meanwhile emerged in the new technologies which IDC calls “Innovation Accelerators” (IoT, cognitive AI, robotics, AR/VR, 3D printing, and next-gen security). New ICT spending from these categories will grow by 17% in 2017, and will continue to accelerate over the next five years as adoption levels surge around the world, including in emerging markets. IoT, robotics, and AR/VR in particular will come to represent a significant proportion of the overall ICT market by 2021.

“The Innovation Accelerators are an important driver for the 3rd Platform, which is rapidly replacing the 2nd Platform of on-premise datacenters, devices, and software,” said Stephen Minton, vice president in IDC’s Customer Insights & Analysis group. “Not only does this introduce new high-growth categories like VR viewers, drones, 3D printers, and IoT solutions, but it also represents a growing shift in traditional categories like the growth of IoT servers or cognitive AI software.”

Several years ago, IDC identified a dramatic shift to the 3rd Platform of cloud, mobile, big data and analytics and social, which quickly came to dominate industry revenues. The Innovation Accelerators will drive the next wave of 3rd Platform growth, resulting in the 3rd Platform accounting for 75% of ICT spending by 2021.

“The 2nd Platform is shrinking, but mature economies still have a large base of legacy infrastructure to maintain and migrate from,” said Minton. “Emerging markets, on the other hand, are sometimes able to leapfrog 2nd Platform technologies and move straight to rapid adoption of new platforms. Asia/Pacific, for example, has emerged as a leading innovator in the growth of IoT and robotics, having already seen explosive growth in mobile over the past few years.”

While emerging markets like Asia/Pacific (excluding Japan) are driving the growth of some new categories, enterprises in the United States continue to be early adopters of software-based innovation, including cloud, big data and analytics, and cognitive AI. It will take longer for some emerging economies to reach the same level of software development and infrastructure that has enabled the rapid growth of cloud-based computing in the U.S. Nevertheless, the direction of ICT spending is the same in every region.

“In the Central & Eastern Europe (CEE) region, most 2nd Platform technology categories are in decline,” said Thomas Vavra, vice president of Software research in the CEMA region. “Conversely, and with the exception of a couple of mobile device categories, every technology on the 3rd Platform is growing strongly. In short, 3rd Platform investments are the growth engine of the IT market in the region.”

Like many emerging markets, CEE has lagged behind some mature economies when it comes to the adoption of technologies such as cloud, which are more dependent on fixed-line infrastructure, or in the development of cutting-edge software solutions for the local market. Asia/Pacific, for example, accounted for more than 50% of global IoT spending in 2016 but only 6% of investment in cognitive AI. In the longer term, however, the continued growth of investment in mobile infrastructure and software solutions will come to drive these regions to the next level of 3rd Platform innovation.

“Mobility and IoT have already made a big impact on IT spending in the CEE region and will continue to grow strongly,” said Vavra. “Although relatively small at present, AR/VR and cognitive AI are meanwhile expected to outgrow all other technology categories over the next few years.”


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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

E-Business

StarNews, Global Black Economic Forum Launch Business Competition In Partnership with MTN & USAID

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Africa’s leading video streaming platform, StarNews Mobile and the Global Black Economic Forum (GBEF), have announced a call for applications for the launch of their Business Competition in Lagos, Nigeria.

Held in partnership with MTN and United Nations Agency for International Development (USAID), the initiative will empower Nigeria’s most promising businesses that are classified as Small-Medium Enterprises (SMEs) with invaluable investment and partnership opportunities from the USA.

Held over 10 weeks between April 8th to June 14th, hosted exclusively on the StarNews Biz Channel on the StarNews platform, this competition offers a platform for emerging entrepreneurs to showcase their ventures and gain national visibility.

With subscribers voting for their favourite candidates, the top 20 contestants will seize the spotlight and make their mark on the business landscape.

The StarNews Business Competition in partnership with GBEF delivers a unique opportunity for thriving Nigerian SMEs to access mentoring, funding, partnerships and socio-economic development tools through the Global Black Economic Forum.

With the prospect of securing cash prizes through StarNews worth up to NGN5,000,000, getting access to StarNews’s network of investors and the opportunity to gain national visibility by having their business on the StarNews web platform.

The top three winners will also receive coaching from GBEF’s Academy for Advancing Excellence and become part of GBEF’s ecosystem of global leaders committed to social and economic justice across the Black Diaspora.

Previous speakers at GBEF convenings from the entertainment sector include Wyclef Jean (Haitian Musician & Activist), Debra Lee (Former CEO of Black Entertainment Television – BET) and Ceci Kurzman (Founder of Nexus Management Group). Applications will close on April 5th 2024.

Speaking on the competition’s launch, Guy Kamgaing, Founder and CEO at StarNews Mobile, says “The StarNews Business Competition is a passion project close to our hearts at StarNews Mobile.

It’s about discovering the most promising business entrepreneurs and creators in Nigeria, opening up global opportunities for them and providing them with the resources and tools to achieve their goals.

By partnering with MTN, USAID and GBEF, we want to be a platform of empowerment for these SMEs by helping them give back to the communities that are supporting them.”

According to the US Embassy and Consulate for Nigeria, over 80% of Nigerian startups are incorporated in the United States and more than 60% of venture capital funding in Nigerian startups accounted for by the US.

In 2023 alone, Nigerian startups raised a total of $398mn however, this signalled a 66% funding decline compared to 2022 due to the global economic downturn, reinforcing the massive need for a fresh injection of capital and business support for Nigeria’s emerging SMEs.

Alphonso David, President and CEO of the Global Black Economic Forum notes that, “Our partnership with StarNews Mobile is a critical resource as we continue to build the collective strength of entrepreneurship across the Diaspora.

“Building a sustainable ecosystem of Black entrepreneurs in the United States and across the African continent is essential to create a future that makes economic opportunity and economic freedom a reality for all.”

A sister company to ESSENCE, GBEF advances its work by convening global summits and conferences, bringing together world leaders, business leaders, entrepreneurs, celebrities and civic leaders to address the most challenging problems facing our communities.

GBEF’s Academy for Advancing Excellence facilitates workforce and leadership development strategy, addressing the talent pipeline & employee lifecycle, providing leadership development & coaching, and conducting institutional assessments & research.

GBEF also develops and implements economic and social justice policy recommendations with partners ranging from civil and human rights organisations to government entities and corporations that advocate for economic opportunity, social justice, and health equity through thought leadership, advocacy and litigation.

Launched in 2017, StarNews Mobile empowers African content creators with the unique opportunity to monetize their work through a subscription model, boasting over 4 million subscribers and a thriving community of more than 120 content creators.

With a strong presence across six countries including Cameroon, Nigeria, Côte D’Ivoire, Congo, Benin and Ghana, the platform has also established key partnerships with major telecom operators such as MTN and Orange.

To-date, StarNews Mobile has secured over $8mn in funding with its most recent raise – a $3mn pre-Series A funding round in October 2023 – led by Janngo Capital with participation from French football players Aurélien Tchouaméni, Jules Koundé and Mike Maignan.

 


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Companies Invest More than $100,000 Yearly to Upskill their Cybersecurity Teams – Study Reveals

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Over 70% of businesses pay more than USD $100,000 for additional training annually to keep skills of their cybersecurity employees up to date, a recent global Kaspersky study has revealed.

However, the surveyed companies also highlighted that there was a lack of relevant courses covering new challenging spheres in the educational market and stated that training does not always bring them the expected result.

In its recent study ‘The portrait of the modern Information Security professional’, Kaspersky examined the topic of the global cybersecurity staff shortage, analysing the exact reasons businesses lack cybersecurity experts, and identifying the ways they evaluate and upskill their cybersecurity workforce¹.

According to the research, companies are investing significant amounts in upskilling their cybersecurity teams: 43% of organisations globally say they usually spend between $100,000 and $200,000 per year on information security courses, while 31% even invest over $200,000 for training programs. The remaining 26% state they usually pay less than $100,000 for educational initiatives².

However, cybersecurity practitioners also note that the educational market is struggling to keep up with the rapidly changing industry and fail to deliver the necessary training programs on time.

Survey results for the Middle East, Turkiye, Africa (META) region shows that the scarcity of courses covering new challenging spheres (48%) was the main problem for those searching for cybersecurity training.

50% of respondents from the META region also stated that trainees tend to forget what they learned because they had no opportunity to apply newly acquired knowledge, therefore the courses were useless to them.

The need for special training pre-requisites such as coding and advanced mathematics, which were not specified at the pre-registration stage were also problematic for 37% of practitioners from the META region.

“With a constantly evolving threat landscape, businesses should continually improve the skills of their cybersecurity personnel in order to be well prepared for sophisticated cyberattacks.

“Developing high-profile specialists within the company and building internal expertise can be an effective strategy for organisations that aim to retain existing employees and allow them to grow professionally, instead of constantly hunting for new candidates and checking their professional backgrounds and practical skills.

“For organisations served by Managed Service Providers it is also important to maintain a pretty high level of expertise internally and use the same language when discussing the scope of services and Service Level Agreement with them,” comments Veniamin Levtsov, VP, Center of Corporate Business Expertise at Kaspersky.


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Heirs Insurance Launches User-friendly Website for Stakeholders

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Heirs Insurance Group, Nigeria’s fastest growing insurance group, has launched a new website that delivers the most user-friendly insurance experience in the industry.

Heirs Insurance Launches User-friendly Website for Stakeholders

In addition to its features that aid simple navigation, the website also personalizes the insurance experience taking customers through a short journey that enables them to make decisions quickly on the best insurance plan to support their personal and business success, or access competent insurance advisors to speak with.

According to Ifesinachi Okpagu, chief marketing officer, Heirs Insurance Group, the website, www.heirs insurance group.com, embodies the ethos of the brand: the delivery of simple, quick, and accessible insurance service that delights customers and brings the uninsured much closer to taking up insurance plans.

She said: “Today’s customers want simplicity and this new website delivers on that request, ensuring that people find the right insurance solutionsfor their needs in a few minutes. We are empowering customers to take control of their lives, their businesses, assets, and their most cherished people.” Heirs Insurance Group has been at the forefront of pioneering a new era of insurance solutions since its launch with the roll-out of various initiatives including a seamless mobile app, USSD; Prince, its intuitive chatbot; InConnect, its partnership portal Digital Experience Centre; and more. With the launch of this website, Heirs Insurance Group solidifies its position as the leading digital insurance company in Nigeria, democratising access to insurance for all.


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