IDC

On the 1st of February, India’s Finance Minister delivered the 8th consecutive Union budget. While the focus of several earlier budgets was to boost the economy via large Government Capital Expenditure (Capex) plans while setting the stage for the Private sector Capex to follow, the 2025 budget adds a new dimension. The focus of this year’s budget is to spur private consumption to boost an otherwise slowing economy while maintaining Capex and ensuring fiscal prudence. The good news is that it continues to recognize the importance of the technology ecosystem in bringing long-term growth to the economy, in line with the changing dynamics of the business world. This budget will have a positive mid- to long-term impact on the economy via the various initiatives it has announced, subject to all of them being executed on time. The budget aims to strengthen the foundations for the tech sector via setting up a digital infrastructure, easing supply side constraints (financial & skills), and laying the groundwork for self-reliance. It does so in a few ways: Digital Infrastructure Build Funding India AI Mission: According to IDC, worldwide spending on AI would cross $600B and India’s domestic spending on AI is going to cross $9B by 2028 (IDC AI and GenAI Spending Guide, 2024V2, Aug 2024). In this budget, the ‘India AI Mission’ is allocated $267M (INR 2000 crore) to boost AI infrastructure capability, ecosystem development, and policy and use case formulation in India. This will be aided by India’s plan of setting up an 18,000 GPU cluster to enable Indian startups to build LLMs and multi-modal AI systems. With this, India is positioning itself well to play a key role in global AI adoption of models, ethics and governance at a global level, in addition to being a potential use case capital of the world. Setting Up of National Geospatial Mission: The launch of the National Geospatial Mission to build geospatial infrastructure and data and modernize land records, along with the initiative to open private sector access to data and maps from the PM Gati Shakti portal, will give a fillip to technology startups focused on logistics, agriculture, weather etc. Creation of the Bharat TradeNet Platform: This initiative will leverage India’s Digital Public Infrastructure for unified trade documentation boosting exports. These announcements must be seen in the context of earlier announcements to drive AI innovation such as the launch of an AI Datasets Platform that includes non-PII data from different sources. The budget underlines the continued commitment of the Indian Government in building a robust foundation of data, infrastructure, capital and use cases for technology-led growth. Easing Supply Side Constraints Skill Constraints: One of the challenges the technology industry is facing is the skill gap between industry demand and market supply. According to the IDC FutureScape: Worldwide Digital Business and AI Transformation 2025 Predictions — India Implications by 2027, 55% of India-based organizations will experience digital skills shortages that will cause project delays, slowing AI technology implementations into the following year. To address this, the budget has increased the intake into IITs, created additional provisions for technology-related fellowships, and announced an additional AI Center of Excellence in addition to the ones announced earlier. In the long term, the announcement to create 50,000 Atal Tinkering Labs in government schools to encourage scientific thinking can be transformatory. Financial Constraints: One of the most effective proposals is the creation of the SIDBI Fund of Funds for Startups with a capital infusion of INR 10,000 crore (approx. $1.2 bn) and the Deep Tech Fund of Funds to invest in leading edge technologies. This will aid in ensuring promising startups can secure funding, thus paving the way for the next set of unicorns that will generate employment and revenues while potentially benefiting industries such as agriculture, education and manufacturing. According to IDC FutureScape: Worldwide Digital Business and AI Transformation 2025 Predictions — India Implications by 2026, 70% of India-based AI digital-natives, start-ups, and scale-ups will implement responsible AI policies to address trust concerns raised by IT and business leaders. We expect start-ups to leverage this fund effectively to strengthen their products with more focus on governance and responsible AI which will make their products more competitive and robust in addition to working on language models and use cases. Self- Reliance Over the years, the current government has introduced several incentives to boost local manufacturing to cater to global and local demand. The global demand for artificial intelligence (AI) and high-performance computing (HPC) will continue to rise, growing by over 15% in 2025, according to IDC ’s latest Worldwide Semiconductor Technology Supply Chain Intelligence report. In this budget, the government has decided to tweak and rationalize customs duties on several components in the manufacture of electronic products. This supports the long-term plan and aspiration to make India a manufacturing hub and promotes self-reliance in technology, among other things. Another notable announcement includes the National Framework for Global Capability Centers (GCCs) to promote tier-2 cities for setting up GCCs. This will boost local employment opportunities for technology talent across India and solidify India’s position as the hub for GCCs, thereby propelling business for IT vendors who serve the GCC space. In summary, the India Union Budget 2025 is forward-looking and has the government focusing on the right initiatives to position India as a strong and vibrant digital-driven economy. It reaffirms the Indian government’s faith in the Indian technology sector being a key driver for growth. Indian technology firms should leverage the initiatives launched by the government to innovate and produce cutting edge products and services. Download this presentation excerpt to learn how to navigate challenges and seize opportunities in India’s evolving digital business landscape. To leverage IDC India’s technology research and advisory expertise, contact IDC today. Vasant Rao and Sharath Srinivasamurthy contributed to this blog. source

If software sourcing is a major headache for your organization, you’re not alone. 70% of North American IT executives consider software sourcing and vendor selection a major source of frustration. And, it’s no wonder.  The average software sourcing process involves 28 stakeholders and takes six months. That’s six months of manual research, vendor meetings, demos, internal debates, and ultimately, a decision that still may not be fully informed.   It’s time to embrace a faster, smarter way forward.  Introducing IDC TechMatch, the first AI-driven software sourcing platform that empowers you to make confident software investment decisions faster using the industry’s leading technology market research and data.  IDC TechMatch: Software Sourcing Designed for Tomorrow’s Tech Leaders   Today’s CIOs are taking on more responsibility to shape the future of their organizations. They are expected to make strategic decisions that drive innovation and business growth with limited time and resources. With the pressure to deliver results quickly and efficiently, having the right tools at hand is critical.   With its AI-enhanced capabilities, IDC TechMatch offers a revolutionary approach that dramatically reduces the time, effort, and complexity traditionally involved in the process. IDC TechMatch uses AI to streamline your software sourcing process, simplify collaboration, and give you the research-backed information you need to make confident investments faster.  The Impact: What Industry Leaders Are Saying IDC TechMatch transforms software sourcing effectively and efficiently. But don’t  take our word for it. Here’s what we’ve heard from your peers: “40% of our lifecycle is spent on research. A tool like this would save us significant time and ensure we find the right fit the first time.” – Healthcare CIO  “Having a shortlist generated instantly would have saved us from contacting 15 vendors, sitting through demos, and manually narrowing down options.” – Business Services CIO  “I see this tool as a way to bring structure and transparency to software decisions, improving communication with senior leadership.” – Manufacturing CIO  Personalized, Data-Driven Recommendations IDC TechMatch analyzes your selected business requirements and delivers vendor recommendations that are based on IDC’s trusted and objective research. This eliminates guesswork and bias, ensuring that the vendors you spend time with are the best fit. Tailored Shortlist That Updates in Real-Time Traditional procurement can be a maze of lengthy vendor pitches, spreadsheets, and expensive consultants. IDC TechMatch generates a tailored vendor shortlist in real-time as you add and prioritize requirements, allowing you to focus on the best-fit solutions without manually sifting through endless options.  AI-Guided Vendor Evaluation IDC TechMatch goes beyond simple recommendations by providing AI-guided insights throughout the vendor evaluation process. IDC’s controlled AI environment protects your interactions, as opposed to risky web tools that may expose sensitive information or use incorrect data. This approach ensures you receive tailored vendor suggestions that align precisely with your requirements. The platform also incorporates G2 ratings and review data to provide users with peer-generated feedback.   Collaborative Decision-Making and Governance  With your teammates actively working their own tasks, bringing them together at multiple stages in the sourcing process can be daunting. IDC TechMatch allows you to add or remove colleagues, to collaborate on evaluations, all within a single platform. You can add comments, tag collaborators, and prioritize requirements to ensure that every aspect of the evaluation process is well-documented and aligned with your organizational goals.  Instantly generate an AI-powered vendor shortlist summary in an editable PowerPoint presentation to drive C-Suite alignment.  Trusted Market Research at Your Fingertips IDC TechMatch offers easy access to IDC industry-specific market data, including IDC’s unbiased MarketScape and ProductScape research. You’ll have a comprehensive view of the software market, so you can make well-informed decisions based on the latest insights. Whether you’re leading digital transformation initiatives or need tools to drive efficiency and productivity, IDC TechMatch makes it easy to navigate and find the information you need, all within a single interface. Streamline RFP Development with AI Assistance When you are ready to engage with your short-list of software vendors, an AI Sourcing Assistant provides you with an RFP template that includes a library of category-specific requirements from IDC’s research knowledge base and IT best practices to guide you through the vendor evaluation process.  Prepare for Negotiations with Confidence AI-driven insights and vendor-specific Commercial Guides enable you to negotiate contracts with a higher level of market insight to secure the best terms and reduce costs. And, for added context, simply open the AI Chat and ask questions about the vendors and get answers in real-time It’s Time to Transform Software Sourcing with IDC TechMatch Visionary leadership also requires practical solutions — tools that simplify complex processes and ensure their decisions align with long-term business goals.   By combining IDC’s trusted research with AI-powered automation, IDC TechMatch enables technology leaders to make informed software sourcing decisions faster and navigate the future with trust and confidence.  Explore IDC TechMatch and unlock the future of software sourcing, today. source

“Change” has been the theme in tech marketing for the past several years. We recently published the results of our 22nd annual tech marketing spend benchmark, IDC Tech Marketing Investment Guide for 2025 Planning: Benchmarks, Key Performance Indicators, and CMO Priorities. The results reflect the acceleration of digital transformation over the past five years, the rapid adoption of GenAI, and marketing’s response to the permanent shift in consumer and B2B buying behavior. The trendline indicates that marketing has officially entered the next era – the AI experience era. A Look Back at Marketing Since the Dawn of Digital In 2007, social media was introduced to the world, forever altering how consumers obtain information and engage with brands. For the next decade and a half, marketers embarked on a digital transformation of both customer engagement and internal operations. Digital, social and demand centers of excellence were formed. Automation platforms for both marketing and sales were adopted. Use of analytics and database marketing placed the responsibility of creating leads and driving demand, squarely in marketing’s remit.   In 2023, GenAI changed the game.. Creative capabilities were broadly placed into the hands of all marketers and citizen creators. Searching and gathering information was augmented and in some cases, replaced by GenAI applications such as ChatGPT. In the 2024 B2B Tech Buyer Behavior Study, 20% of respondents stated they are using AI Chatbots to search and for discovery of information, brands and vendors. This has lead marketing leaders to take full responsibility for the digital customer experience and the orchestration of the omnichannel experience. The 4 Biggest Things to Happen to Marketing in the Next Decade Marketing’s Remit Has Expanded Starting back in 2021, IDC Research showed that marketing’s #1 remit was driving business growth. In the 2023 Marketing Organizational Models study, at least 80% of senior marketing leaders stated they carry the responsibility of digital customer experience, employee communications, internal brand communications and marketing technology. In 2024, IDC research found that CMOs are now assuming the role of the Chief Market Officer, expanding marketing’s role with the full accountability across the go-to-marketing engine, including sales. As a result, the technology marketing spend benchmark found a 10.8% increase in marketing investment year-over-year. The allocation of investments have evolved, increasing the investment in marketing technology program spend by 26% and allocating 3.4% more to staffing of MarTech roles. Digital experience roles have evolved far beyond email and phone outreach to know include managing chat and mobile/SMS engagement. Web and social media marketing staffing has grown 8% as a result of advertising staff experiencing a shift to enable more social media efforts, mobile advertising, pulling work in-house from agencies. 56% of benchmark participants anticipate a 10% or higher ROI from GenAI in the next 12-18 months. A quarter of marketing leaders believe that GenAI represents a major opportunity and are striving to be leaders, even if it means making mistakes. GenAI is actively being utilized across marketing. 97% of marketers are leveraging GenAI to support content marketing, including dynamic SEO optimization, creating derivatives of content, translating and localizing. 82% of marketers are supporting the evolution of web marketing, beyond digitally delivering analog content (i.e. PDFs) to incorporating more interactive and immersive content, such as personalized digital assistants, hyper-personalized web pages and personalized offers. Marketing operations are also experiencing substantial benefits from GenAI with close to 80% of marketers focused use cases such as micro-segmentation, more real time insights and gathering voice-of-the-customer.  ABM Gives Way to Personalization-at-Scale While the term “Account Based Marketing” or ABM is still floating around, less marketers are focused on continuing to enable personalized marketing for a subset of the customer and prospect base. Instead, marketers are leveraging GenAI to achieve personalization-at-scale. The benchmark study found an increase in industry and audience marketing staff positions as marketers are created horizontal teams focused on connected experiences, moving beyond marketing to one persona and instead focusing on the whole marketing journey.  A key dependency for GenAI and personalization-at-scale is the health of marketing’s data infrastructure. Marketing is only as good as the data it runs on. Recognizing how critical intelligence is to AI experience marketing, marketers rebalanced their intelligence investment across competitive, customer and market intelligence. The investment in the MarTech stack sits at 4.4% of the marketing budget, with a 22.4% surge in data and analytics spending year-over-year. There is a lot of conversation around GenAI evolving the marketing function, even changing marketing roles. Did you consider that soon you may be marketing to GenAI agents of your customers? Even having your own GenAI agent engage, rather than a marketing or sales representative? In the 2024 B2B Tech Buyer Behavior Study, 73% of B2B buyers stated they would use more AI guided selling assistants to act as an intermediary between themselves and vendors, such as doing product comparisons, responding to RFI/RFPs, answering technical questions and providing quotes and configurations.  Shoring up your data, tech stack, digital experience enablement, and LLM optimization is critical. This requires a combination of technology and UX in addition to continued investment in technology and experience platforms. It is also essential to make sure you have the right people to deliver. Marketers must continue to up-skill and hire staff that understands how to train and prompt LLMs, design and implement omnichannel experiences. Over the last five years, we have seen the shift in the priorities and focus of marketers through their marketing investment trends. IDC Research finds that the executive team now has a spotlight on marketing’s technology investment and the maturity of customer intelligence. To deliver to marketing’s strategic responsibility and expectations, leaders need to maintain the investment focus on maturing the core AI experiential capabilities, essential for marketing in the experience era.  source

In 2011, when Marc Andreessen famously said, “Software is eating the world,” the enterprise software market was valued at $300 billion, making up a respectable 19% of the broader IT market. Today at IDC, we project the market will skyrocket to $1.6 trillion in 2026, capturing 39% of the IT landscape. This explosive growth means that the role of the CIO is evolving, too. Traditionally, the CIO has been responsible for maintaining operational efficiency and minimizing risks. But now, he or she is also expected to drive digital transformation and generate new revenue streams. In fact, our own research shows that 67% of CEOs expect their CIOs to lead digital transformation efforts in the next two years. And that starts with software procurement. Now, just saying the dreaded “p” word might trigger a stress response in any CIO who’s confronted this giant “elephant in the room.” Without the right tools and strategy in place, procurement can feel like an endless cycle of pain points — and every choice can feel like a high-stakes race. One wrong move, and you’re lagging — trampled with overpriced contracts and incompatible tech, or, worse, “supplier ghosting” when you’re desperate for support. The good news? A new wave of AI-powered procurement platforms is stepping up to help CIOs tame the beast. They promise to make procurement faster, smarter, and more strategic, saving your organization time and resources (and, saving your sanity too). Before we dive into why this shift matters — and how AI can transform the procurement process — let’s revisit the pain points that have been wreaking havoc for decades, starting with the all-important RFP. The RFP Challenge: Why It Matters Mastering the Request for Proposal (RFP) process is critical for CIOs. After all, procurement isn’t just about purchasing technology; it’s about aligning tech investments with your organization’s broader business goals, the cornerstone of digital transformation. Traditionally, the RFP process consists of several critical steps: Defining Requirements: Identifying business needs ensures alignment between your organization’s goals and the solutions you’re seeking. Market Research: Thorough research and analysis help identify suitable vendors and solutions. Drafting the RFP: The RFP must clearly communicate the requirements to vendors, soliciting bids. Evaluation: Proposals are assessed to determine the best fit against predefined criteria. Selection and Negotiation: The best solution is selected, and terms are negotiated to establish a successful partnership. The RFP process may seem straightforward — define the problem, invite vendors to bid, evaluate the options, and make the best choice. But if you’ve ever waded through piles of vendor responses, you know it can feel more like a maze of confusion, and losing your way comes with costly consequences. That’s why RFPs remain one of the most valuable yet frustrating aspects of procurement. Their potential to guide informed, strategic software selection is often undermined by: Lengthy Timelines: Traditional RFP processes can extend project implementation timelines by up to three times longer than anticipated. (IDC) Cost Overruns: Our own research found that 44% of CIOs cited the cost of sourcing exercises as their number one pain point in 2024, with external consultants and research adding to the expense. Resource Strain: IT teams, often lacking the business acumen for vendor selection, are burdened with time-intensive manual tasks like contract analysis and supplier evaluation. (CIO) When poorly executed, RFPs can create a domino effect of delays, misaligned vendor relationships, and wasted budgets. Of course, RFPs are just one piece of a larger puzzle. From resource-heavy sourcing exercises to integration challenges, the pain points in procurement can derail even the most promising tech initiatives. Overcoming Procurement Challenges with AI AI-powered procurement platforms can transform the process, helping CIOs overcome common hurdles and make decisions with confidence across the whole procurement lifecycle: 1. Streamlining RFPsWriting, distributing, and evaluating RFPs is like reinventing the wheel every time you need a new tech solution. It’s tedious, time-consuming, and rarely yields the insights you need to make confident decisions. Example: Looking for a new cybersecurity solution? An AI-powered platform drafts a tailored RFP, distributes it to vetted suppliers, and evaluates the responses based on predefined criteria. Fact: AI automates time-intensive tasks like vendor comparison, contract analysis, and data validation, slashing timelines and improving accuracy. (Financial Times) 2. More Confident Decision-MakingAI-powered tools can not only streamline research and reduce redundant trials, but they offer decision-making confidence based on insights from thousands of data points. Example: You’re launching a new office, and your team is stretched thin. AI handles the logistics of sourcing IT hardware, comparing costs, and ensuring timely delivery — freeing your team to focus on relationships and strategy.Fact: AI-driven insights empower CIOs to quickly evaluate vendors with data-backed precision, ensuring alignment with business goals. (McKinsey) 3. Proactive Risk ManagementAI doesn’t just find suppliers — it also screens them. From tracking delivery times to analyzing performance reviews, AI can help ensure you’re partnering with reliable vendors who won’t disappear when you need them most. Example: AI flags a supplier’s declining performance metrics before you renew their contract, saving you from a costly investment. Fact: AI tools quickly assess supplier risks, mitigate compliance issues, and increase transparency in the procurement process. (SAP) 4. Cost Optimization:AI procurement platforms excel at identifying cost-saving opportunities. They’ll flag overpriced contracts, suggest negotiation tactics, and even predict future price trends so you can strike while the iron’s hot. Example: AI notices your organization’s historical spend on IT procurement services and recommends consolidating vendors to unlock bulk discounts. Fact: AI-powered spend analysis highlights savings opportunities and eliminates unnecessary expenses. (McKinsey) 5. Speedy Analysis of Vendor OptionsAI thrives on data. It can analyze your needs, compare thousands of vendors in seconds, and deliver curated recommendations tailored to your specific goals. In short, AI narrows the field, so you’re not wasting time on irrelevant options. Example: You need a new cloud provider. An AI-powered platform evaluates costs, performance metrics, and integration capabilities across dozens of vendors, instantly highlighting the best fits. Fact: 79% of companies report challenges in purchasing B2B software

B2B commerce is evolving at an unprecedented pace. Rapid technological advancements, evolving customer expectations, and market dynamics are paving the way for increased adoption of digital commerce platforms. B2B organizations are reaping the benefits of enhanced sales efficiency, improved profitability, and better customer experiences. However, as the B2B digital commerce landscape becomes more complex, organizations must stay attuned to emerging trends and address related challenges in an agile way. This means transforming their operations and strategically aligning their resources to maintain a competitive edge in this dynamic landscape. B2B Digital Commerce Is Increasingly Becoming Experience Driven Business buyers now demand personalized interactions expecting streamlined product discovery and context-aware recommendations. Role-based personalization, while addressing the collective needs of buying groups, will be crucial in B2B sales. Additionally, self-service capabilities can empower buyers and reduce friction in complex buying scenarios. This means empowering them and giving them a sense of control over the buying process, while also providing the crucial “human touch” to aid decision making. As sellers continue to drive a significant part of the buying experience, they can benefit from personalized support, increased automation, and streamlined workflows so they can focus on strategic selling. Tools like digital sales rooms exemplify this synergy between digital tools and human expertise by creating collaborative environments where buyers and sellers can interact efficiently. AI Is Transforming Every Facet of Digital Commerce From hyper-personalized interactions to predictive analytics, AI is poised to transform the entire buying journey. AI-driven product configuration tools can streamline workflows and provide dynamic and needs-based solutions. Generative AI (GenAI) offers new opportunities for workforce enablement and customer engagement. AI agents can further transform this through autonomous decision-making and self-optimizing processes, reimagining how organizations interact with their customers. To fully leverage this potential, B2B organizations must build robust data foundations and enable their workforce to fully leverage AI’s potential. Sustainability as a Strategic Imperative Embracing sustainability is becoming a strategic necessity for organizations. B2B organizations must integrate sustainability considerations into their digital commerce strategies to effectively meet operational objectives, regulatory demands and customer expectations. This includes adopting circular economy principles, enhancing transparency in sourcing, and minimizing the environmental impact of their fulfillment processes. Digital platforms are also crucial for driving sustainability efforts such as marketplaces for used products that promote recycling and sustainability. An example of these are marketplaces for used EV (electric vehicle) batteries which promotes their effective retrieval and recycling. Continuous Adaptation and Proactive Compliance Are Key To Thrive An ever-evolving regulatory and geopolitical landscape requires a proactive approach to compliance and risk management. The stakes are high, with non-compliance potentially leading to substantial economic losses, reputational damage, and loss of customer trust. Thriving in this landscape will require continuous monitoring and adaptation, along with fostering awareness and good compliance practices within organizations How Can Companies Thrive in This Complex Landscape? Invest in Digital Technologies That Enable Agility Embrace an agile approach to digital commerce and strategically align your technology stack. Invest in technologies that can scale and support evolving needs. Composable and API-first solutions can provide flexibility and enable rapid adaptation to evolving market requirements. Enable Your Workforce to Leverage AI-Enabled Tools Prepare for an AI-driven future by investing in employee training and change management. This will ensure your workforce is comfortable and proficient in using AI tools across various business functions. When leveraging AI to enhance customer interactions, maintain a balance with human connection. Personal relationships will remain crucial in driving transparency and building trust with your customers. Understand How Digital Commerce Fits in Your Overall Sustainability Strategy Begin by assessing how to integrate sustainability into your digital commerce strategy.  This could involve designing metrics to measure your sustainability impact.  A broader approach includes embracing circular economy principles and increasing transparency regarding the sustainable footprint of your products and suppliers.  This allows you to simultaneously satisfy growing customer demand and meet evolving regulatory requirements. Foster Change Management Cultivate a data-centric organization where employees are comfortable working with and sharing data to drive data-driven decisions.  Furthermore, promote awareness and compliance practices throughout the organization.  Strategically leverage digital technologies to support your company’s compliance and risk management processes. Navigating the Future of B2B Digital Commerce By focusing on these key trends, B2B organizations can navigate complexities and position themselves for success.  An agile approach will be crucial for effectively addressing challenges. The ability to pivot quickly and respond to change will provide a competitive advantage, enabling B2B organizations to capitalize on emerging opportunities and thrive in this evolving landscape. source

When it comes to doing business, time isn’t just money — it’s also your competitive edge. Yet many organizations waste this precious asset on IT procurement processes that can stretch six to nine months. That’s a lot of time — and a lot of lost sleep, particularly for today’s CIOs. As technology rapidly evolves and IT governance takes center stage, the role of the CIO has never been more dynamic — or demanding. Today’s CIOs have transitioned from overseers of IT infrastructure to serving as business strategists, innovators, and drivers of organizational transformation. They’re managing procurement teams, integrating cutting-edge solutions, and addressing legacy system challenges — all while juggling tight budgets and even tighter timelines. The mandate is clear for 2025: deliver more efficiency and greater strategic value, faster. Yet, traditional procurement undermines this goal, bogging down the process with manual tasks, lengthy approvals, and inefficiencies that slow progress when speed is critical. Let’s pull back the curtain on some of the key pain points: Lengthy Timelines: Delays in software sourcing can hold up the launch of new projects — putting organizations at a significant disadvantage. Legal Bottlenecks: Complexities in contract negotiations and compliance reviews can add significant human-hours to the process and weeks or even months to timelines. Data Deficiencies: Seventy-five percent of organizations struggle with inadequate data analytics, leading to poorly informed decisions. (Veridion) Resource Strain: Overestimating the maturity of procurement processes and misjudging workloads can put undue pressure on teams. Legacy System Integration: Adopting new software while managing outdated systems can be a logistical nightmare. Supplier Risks: Evaluating vendor performance and mitigating risks can consume significant time and resources. The list is daunting, but there’s hope ahead. Strategic Software Sourcing: The AI Advantage AI-powered sourcing platforms are transforming the process by automating manual tasks, improving decision-making, optimizing costs, and enhancing efficiency. They empower businesses to move faster, better mitigate risks, and make smarter technology investments. While time is certainly money, it’s also essential to understand strategic sourcing — a proactive and future-centric approach to software procurement. Unlike traditional methods that focus solely on immediate cost, strategic sourcing aligns procurement decisions with sustainable business goals. It emphasizes long-term supplier relationships, total cost of ownership, and demand forecasting. Strategic sourcing is about thinking ahead. It’s not about finding the cheapest solution; it’s about finding the right solution that delivers value over time. AI supercharges strategic sourcing, addressing major pain points with precision, analytical intelligence — and the all-important speed. Here’s how AI can help: Automate Routine Tasks: Routine tasks like data validation, purchase order management, and contract analysis can bog down procurement teams. AI automates these processes, reducing errors and freeing up professionals for more engaging work. Accelerate Timeline: Efficient and effective AI-driven platforms can cut procurement cycles significantly, enabling organizations to launch projects faster. Enhance Data Accuracy: Although most organizations use data analytics, less than 20% are satisfied with the results. AI can improve data accuracy and provide actionable insights for better decision-making. (CIOinsight) Optimize Demand Forecasting: Procurement teams often rely on guesswork when it comes to forecasts. AI can use predictive analytics to ensure the right resources are available at the right time. Mitigate Supplier Risks: AI can evaluate supplier performance, identify potential risks, ensure compliance with regulations, and increase transparency and trust. Reduce Costs: By automating much of the process — and freeing teams for more strategic work — AI can help achieve significant cost savings while maintaining high-quality outcomes. The Bigger Picture AI doesn’t just make IT procurement faster — it redefines what’s possible. By accelerating access to new technologies, AI fuels innovation and keeps businesses ahead of the curve. Streamlined processes build agility, empowering organizations to adapt to market shifts in real time. And by automating the mind-numbing tasks no one enjoys, AI frees your teams to focus on strategic, meaningful work — the kind that sparks collaboration and creativity. In a world where every second counts, why waste months on outdated procurement processes? With AI, you’ll not only save time — you might even find some to spare (or catch up on sleep.) Step Up to Smarter Software Sourcing with IDC TechMatch IDC is transforming the way IT teams make software investments with a revolutionary new software sourcing platform. IDC TechMatch, powered by AI and grounded in the world’s most reliable IT market intelligence, will simplify, accelerate, and align your IT sourcing decisions. With IDC’s new AI-driven software sourcing platform, TechMatch, you’ll simplify decisions, optimize spending, and keep your organization ahead of the curve, gaining a strategic advantage over your competitors. Ready to discover how IDC TechMatch can transform your pain points into game points? It’s “time” to learn more today. source

AI is driving one of the most significant shifts in enterprise technology—but as you’ve seen, just having an AI-powered product won’t guarantee success. Midmarket tech vendors must do more than position AI as an innovative feature; they must prove its real business impact to skeptical tech buyers who don’t know as much about your product. They just know about the world they are entrenched in—which is often very different from yours. AI Adoption Is Surging—But Buyers Need More Than Hype AI-related spending is set to reach $371.6 billion by 2027 as businesses shift from experimentation to targeted AI investments. But tech buyers are demanding more clarity, proof, and measurable business value. They aren’t just looking for AI—they’re looking for vendors who can: For midmarket vendors, the challenge isn’t just selling AI—it’s marketing AI effectively in a way that resonates with buyers. Your AI Story Needs More Than Features—It Needs Proof Tech buyers are overwhelmed with AI messaging. What they need is a clear, compelling reason to choose your AI-powered solution over the competition. AI Features Alone Won’t Differentiate You – The market is crowded with vendors claiming AI superiority. To stand out, you must showcase how AI solves specific business challenges and improves key metrics. Buyers Want Data-Backed Confidence – 69% of B2B buyers are more likely to engage with marketing content if it’s backed by credible, personalized data. Vendors who provide benchmarks, case studies, and independent validation will gain trust faster. The AI Buying Journey is Complex – AI isn’t a plug-and-play solution. Buyers need education, implementation guidance, and risk mitigation strategies. The best marketers will position their companies as strategic advisors, not just vendors. How Midmarket Vendors Can Win in AI Marketing Lead with Business Value, Not Just Technology Show how your AI solution reduces costs, improves efficiency, or drives revenue—not just how it works. Speak in the language of business decision-makers, not just technical buyers. Back Claims with Data and Real-World Examples AI skepticism is high—buyers want quantifiable proof of success. Use case studies, benchmarks, and IDC-backed insights to validate your claims. Target the Right Buyers with Tailored Messaging AI adoption varies by industry and business size—a one-size-fits-all approach won’t work. Identify your ideal AI buyers and tailor messaging to their specific challenges and priorities. Assess infrastructure readiness—do they have the foundation to support your AI solution? Highlight key differentiators that make adoption easier, such as AI model training, data labeling, and ongoing support. Help Buyers Navigate the AI Learning Curve Offer clear guidance on implementation, integration, and ROI measurement. Position your company as an expert resource, not just a seller. AI is Reshaping Tech Buying—Are You Ready? By 2026, 65% of individuals will rely on GenAI-powered search and engagement. Vendors that adapt now—by refining their messaging, proving AI’s business impact, and guiding buyers through adoption—will win market share. Move Beyond AI Hype—Lead with Clarity and Proof The AI market is evolving fast, and midmarket vendors who can position AI as a must-have business enabler—backed by real-world proof—will dominate. AI alone won’t drive revenue. But the right AI marketing strategy will. Buyers Don’t Just Need Opinions—To Drive Results, You Need to Offer Them Data-Backed Guidance. source

The European Union’s Ecodesign for Sustainable Products Regulation (ESPR) will come into force on June 20, 2025. It will introduce a new framework to make electronic devices more sustainable. This law goes beyond energy efficiency by mandating durability, repairability, recyclability, and extended software support for smartphones and tablets. The ESPR is within the EU’s broader aim to create a circular economy that reduces electronic waste while making sure consumers get access to devices that last longer and can be repaired. This regulation presents both operational challenges and strategic opportunities for smartphone manufacturers. Complying with it will require significant changes in how they design their products, manage the supply chain, and handle after-sales customer service. While initial costs may rise due to higher material standards and new repairability requirements, manufacturers that quickly adapt could boost their market position. The Impact on Smartphone Manufacturers One of the key pillars of the ESPR is durability. Devices will need to meet stricter requirements for resistance to drops, dust, and water ingress. This will likely push manufacturers to redesign their products, particularly when it comes to protecting from water ingression, the second-largest cause of damaged smartphones (Read more about the Impact of Liquid Damages in my article). While this may initially increase production costs, it can also lead to fewer warranty claims, lower returns, and a stronger reputation for reliability. Brands that embrace this shift early may gain a competitive edge by positioning their products as premium, long-lasting investments. Battery performance is another focal point of the regulation. To comply, smartphones must maintain at least 80% of their initial capacity after 800 charge cycles. This pushes manufacturers to invest in higher-quality battery technology, potentially leading to innovations such as more energy-dense cells or modular battery designs. Additionally, the push for removable or easily replaceable batteries could reshape product engineering, affecting device thickness and aesthetics. While these changes may add complexity to design processes, they also provide an opportunity to differentiate in a market where battery life remains a critical consumer concern. Repairability will become a defining feature of future devices. Under the new rules, smartphone manufacturers must ensure that critical spare parts, including batteries, screens, cameras, charging ports, and buttons, remain available for at least seven years after a product is discontinued. Additionally, these parts must be delivered within a maximum of 10 working days, ensuring timely repairs and reducing consumer reliance on device replacements. The legislation also imposes new disassembly requirements, making it easier for professional repairers and, in some cases, consumers to replace damaged parts using basic tools. This prevents manufacturers from using proprietary designs or software locks that restrict third-party repairs—a common industry practice that has previously driven up repair costs and discouraged device longevity. From a business perspective, these regulations introduce new revenue opportunities in the form of refurbished and certified pre-owned devices. As consumers gain access to affordable repairs and extended product lifecycles, demand for manufacturer-backed refurbishment programs and trade-in services is likely to grow. IDC forecasts that trade-in used smartphone sales will grow on average 6.7% between 2023 and 2028 to reach $94 billion by 2028. Although PCs are not yet part of this legislation, last year at the Mobile World Congress, I witnessed brands moving beyond the traditional approach of simply incorporating recycled materials and reducing carbon footprints to a more strategic approach of repairability by design (Read more here). Software upgrades are another crucial area. The ESPR mandates that operating system updates must be available for at least five years after a device is discontinued. This prevents premature obsolescence, addressing one of the most common reasons for smartphone replacements. However, it also presents challenges for manufacturers, particularly those dependent on frequent hardware-software upgrade cycles to drive sales. Companies will need to balance regulatory compliance with revenue strategies. While most brands already provide five-year upgrades on their flagship and premium devices, extending this to mid-range handsets will be particularly challenging for many smaller brands. The six-figure cost reported by some brands will make it impossible to continue offering mid to low-end devices long-term. This will compel them to reduce the number of devices in their portfolios and weaken their position against more prominent brands. Strategic Implications for the Industry The ESPR represents a fundamental shift in how the smartphone industry must approach product lifecycle management. Companies that fail to adapt will risk fines, supply chain disruptions, and reputational damage. However, those who proactively integrate sustainability into their core strategies can benefit in several ways. Early adopters of the regulation can establish themselves as leaders in sustainability, gaining an advantage in a market increasingly influenced by environmental consciousness. With consumers becoming more selective about the sustainability credentials of their purchases, companies that highlight durability, repairability, and eco-friendly design can create strong differentiation. Furthermore, regulatory alignment is crucial for market access. The EU remains one of the world’s largest and most lucrative consumer electronics markets. Brands that do not meet these new requirements could face import restrictions, compliance-related delays, or reputational setbacks, ultimately losing market share to more forward-thinking competitors. Supply chain optimization will also become a priority. The emphasis on repairability and spare parts availability encourages a shift from a linear economy model (produce, sell, discard) to a circular economy model, where devices are repaired, reused, and resold. This could lead to new revenue streams in refurbished devices, leasing models, and extended warranty programs. It also means manufacturers must rethink their supplier relationships, ensuring consistent access to high-quality components over a longer period. The Consumer and Sustainability Perspective For consumers, the ESPR brings several significant benefits. By ensuring smartphones last longer and can be easily repaired, the regulation reduces the financial burden of frequent device replacements. This is particularly relevant in an era of rising electronic prices, where consumers are looking for greater value from their purchases. Beyond cost savings, the regulation addresses the growing e-waste crisis. The smartphone industry generates millions of discarded devices each year, with only a fraction being properly recycled. By mandating longer-lasting products,

Every year certain technology trends stand out. Few bring about as much change across both technology and business operations as much as AI has in 2024. AI has altered the way organizations consider cloud, driving new business and cloud requirements and introducing new use cases. The hype around AI has also created a sense of agency around change. IDC’s quarterly Cloud Pulse survey (which surveys up to 1,700 cloud buyers each quarter) and the Cloud Adoption Trends and Strategies programs at IDC have been carefully tracking the maturation of cloud. Through surveys and industry conversations, our teams have been gauging the shifts in requirements of cloud buyers. These are the ten standout cloud trends from 2024 that vendors need to be aware of as they look to meet cloud buyer needs in 2025. Cloud Transformation With so many organizations looking to modernize and change their cloud, services around cloud migration, integration, and assessment were in high demand. Equally high was the focus on cloud transformation initiatives (many of which come bundled under broader IT transformation projects). Around 60% of cloud buyers told IDC’s 3Q24 Cloud Pulse Survey October 2024 that their business’ IT or digital infrastructure currently requires major transformation, and 82% said their cloud also required modernization. Hence, 2024 has been a pivotal year for identifying where cloud strategies need to mature or change. The introduction of new AI requirements has added time pressures to the job at hand. Business Goals Are Now Technology Goals Cloud transformation may have been an initiative desired by cloud teams in 2023, but it became a driver of the business in 2024 as organizations pivoted to become more digitally – and AI – enabled. Organizations are now thinking like digital businesses, and this is rapidly changing what they require of technology and how they measure tech success. In 2024, for the first time ever, when asked what their business’ goals were, Cloud Pulse respondents said overwhelmingly the top goals were focused on AI: using AI to drive better analytics; to improve customer experience and to drive better sales. AI is being introduced across most businesses today, and its introduction and close tie to business success means the business is now starting to measure AI and technical projects based on business key performance indicators. Line of Business has also started to have more of a say over cloud adoption decisions. This focus on business performance means that IT teams now need to be ready to pivot themselves as the business environments and requirements change and must have easily understandable reporting tools. Automate To Overcome Management and Skills Challenges Cloud is complex. Cloud management is even more complex as organizations adopt hybrid and multicloud strategies. The challenge to fill much-needed roles and retain staff in a highly competitive technology market is another challenge (not unique to cloud). As organizations seek to modernize cloud architectures and adopt AI, they are requiring better cloud management and new skills. This adds load onto already squeezed teams and budgets. The skills that are most lacking right now (FinOps, containers, and serverless) cover areas that are being addressed in cloud transformation initiatives. Other areas where skills will impact cloud transformation include network automation and cloud orchestration. Many organizations are addressing skills gaps with educational projects (often with a focus on cross training and enhancing DevOps) or turning to professional services. Teams are also being trained in automation, which can drive efficiencies by removing repetitive manual tasks from operations and other teams to free up human resources and reduce costs. Hybrid and Multicloud Capabilities Are Now Expected Most cloud buyers will be working with more than one provider, and many are already combining the use of different cloud platforms. In Q3, 2024, 88% of cloud buyers told IDC Cloud Pulse they are deploying a hybrid cloud or are in the process of operating one and 79% are already using multiple cloud providers (this increases to 90% for those most familiar with cloud). The challenge for many of these organizations is not one of desire to operate across environments and providers but finding vendors that offer true hybrid and multicloud capabilities. Organizations struggle still with interoperability and connectivity. This includes not only the network and challenges such as egress fees but also open APIs, thus requiring contracts that enable the right levels of flexibility. Vendors are starting to address these needs, and the outcome in 2024 has been more dynamic movement of applications or workloads between environments with organizations considering what is the best location for performance and cost. Advancements in real-time management and monitoring tools will enable more dynamic use across platforms and lead to an increasing focus on edge computing needs. The good news is that hybrid cloud buyers are seen to have very clear advantages over those that have not adopted hybrid cloud: better ROI and faster adoption of new technologies to name a few. Application Migration (And Repatriation) Becomes More Dynamic This trend could have also been labelled ‘the resurgence of on-premises environments’ if we only considered the headlines around dedicated cloud use for GenAI requirements. This is not only about GenAI. Organizations are taking more of a right-fit approach to where applications/workloads and data needs to reside, and at varying parts of the application lifecycle. This is especially the case for AI workloads. Dedicated cloud is an important part of this equation for many cloud buyers, but requirements for application migration are as dynamic and diverse as application migration trends. The biggest migration taking place in 2024 is the shift from traditional environments to cloud. The reasons for migration have shifted as well; in 2024, sustainability and GenAI were new influencers impacting migration trends, on top of efficiency, cost and performance (three reasons for migration in 2023). These migration trends are increasing the requirement for hybrid capabilities. The reasons for selecting a provider for GenAI tells a story around that application’s requirements. The number one consideration when selecting a provider for GenAI is performance and latency, the