Explore 5 most awaited trends and predictions for digital transformation in 2019.
Well-functioning organizations see disruption coming and take this opportunity to pivot their businesses in a new direction towards innovation, growth, and sustainability. Here are several key trends within digital transformation worth highlighting that will impact organizations in 2019.
Blockchain Hype May Disappear
Blockchain entered Gartner’s “trough of disillusionment” after a joint report by MERL Technology Conference documented failing blockchain projects and lack of evidence supporting value claims of the blockchain. According to the report, 43 blockchain projects under-delivered, notwithstanding a great number of promises and convincing claims regarding unheralded transparency, outputs, outcomes, and impact. Despite this, Gartner still encourages IT leaders to prepare for the inevitable blockchain “spring” that will emerge once the core-enabling technologies and use cases evolve and mature.
Blockchain is commonly seen as a footnote in the realm of cryptocurrency and it’s rolling out slower than what the research firms predicted. However, the potential of blockchain goes way beyond cryptocurrencies and incorporates solutions to the trilemma being faced by the industry i.e. imbalance about scalability, decentralization, and security. 2019 is the year when Blockchain will become involved in core business operations, enabling transactional transparency and security through a wide range of business functions. We may also see increased use of blockchain in RegTech — helping automate processes that need to meet certain regulations before being executed.
Smarter Business Systems with AI
Daniel Newman, a contributor to Forbes magazine infers that 1% effective data utilization out of 90% of the data created in 2018 could grow to 3% — 4% by 2020. This could be achieved by promoting the data and power of analytics with machine learning (ML) and artificial intelligence (AI). It’s high time companies must pay attention to utilizing dark data (unused digital information) to derive insights. A study by Information Age reflects that by 2019, 30% of large enterprises will start generating Data as a Service revenue because of AI and over 40% of digital transformation initiatives will use AI services. It is also anticipated that 75% of commercial enterprise apps will have AI built in by 2021, and over 50% of consumers will interact with it. AI technologies that may boost business success in 2019 include advanced AI assistants, AI-powered talent acquisition tools (candidate communication and screening tools), virtual agents and conversational chatbots and AI-powered search etc.
Read More: Three Trends That Will Shape The Future Of Blockchain Technology in 2019
Multi-cloud Becomes the Norm
RightScale’s 2019 State of the Cloud Survey found that 84% of the global enterprises have already adopted a multi-cloud strategy. Embracing an all-inclusive cloud strategy is the future but data protection appears to be quite challenging in a multicloud environment. Businesses need an approach to privatize data and control how and for whom their data creates value and risk. Furthermore, the consumption of cloud services is only expected to grow over the coming years as cloud technology expands to facilitate the impacts of multiplied innovation. In the years ahead, the cloud will overtake IT spending, optimize workloads, and cloud-based apps will take over the marketplaces.
IDC predicts that by 2022, nearly 40% of core IT spending will be cloud-related, and by 2028, the cloud will account for 80% or more of IT spending. The edge, on the other hand, will continue to support cloud expansion and also power workload optimization. By 2020, over 50% of modern edge IT and network services will be managed from the cloud, supported by secure, virtualized edge architectures. IDC further suggests that by 2022, over one million apps and services will be available in the top 5 cloud service providers’ marketplaces. i.e. fifty times greater the amount available in 2018.
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Edge Computing On the Rise
Edge computing will be an exciting trend making headlines in 2019 as it intends to expand computing power indeterminately and take advantage of micro-services architectures. Edge computing will become more critical, with more than 75 billion IoT devices expected to be in use worldwide by 2025, generating large volumes of data. 27% of global telecom decision makers, responded to the Forrester Analytics Global Business Technographics® Mobility Survey 2018, that their firms are either implementing or expanding edge computing in 2019. We can expect similar initiatives in the future as the value of the edge computing market is estimated to reach $6.72 billion by 2022.
Edge computing is also referred to as a key to meeting digital transformation demands. The value of edge computing market is estimated to reach $3.24 billion (USD) by 2025. Through 2028, Gartner expects a steady increase in the embedding of sensors, storage, compute and advanced AI capabilities in edge devices.
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The Dawn of 5G
With chip makers promising to finally deliver 5G chips in 2019, more network availability across the globe, as well as the introduction of capable devices, will be observed. Deloitte’s TMT Predictions 2019 report claims that approximately one million 5G-phones will be shipped this year, out of an estimated 1.5 billion global smartphone sales. 5G is touted to be a wireless network strong enough to support next-gen technologies like self-driving cars and other augmented reality offerings. For businesses, the availability of 5G means less latency for communications, faster download speeds and even great possibilities across borders.
In conclusion, it can be assumed that all these trends will clearly shape digital transformation for businesses in 2019. Companies need to constantly be on the lookout for innovative solutions. Do you need help with your move to the cloud or with the development of your blockchain solution? We are an email away. Contact us at sales@ssidecisions.com.
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