IDC

In today’s fast-changing business environment, startups and growing tech vendors face unique challenges and opportunities. As we approach 2025, planning for sustainable growth means more than just reacting to industry shifts—it requires a forward-thinking approach. From leveraging technology to fostering innovation, the most successful businesses are those that adapt with a proactive mindset. This blog outlines five essential strategies every startup and growing tech company can use to build resilience, drive growth, and stay competitive in an ever-evolving market.  If you’re ready to equip your business with the tools to thrive, read on to learn how to turn today’s trends into tomorrow’s growth drivers.  1. Embrace Technology to Stay Agile and Scalable  For startups and growing tech vendors, agility and scalability are key to thriving in competitive markets. Advanced technologies like AI, automation, and cloud computing provide powerful tools to streamline operations, reduce costs, and respond quickly to changes. AI-driven automation, for example, can handle repetitive tasks, freeing up teams to focus on innovation and strategy. Cloud infrastructure allows businesses to expand their operations without heavy investment in physical infrastructure, providing the flexibility to scale at pace with demand.  Staying agile doesn’t mean adopting every new tech trend—it’s about identifying use cases that align with your business goals. Consider what tools will help your business scale smoothly and improve productivity without creating complexity. Focusing on high-impact technologies, such as AI for customer support or data analysis, can lead to meaningful improvements in efficiency while ensuring your business remains flexible in a shifting market.  2. Make Data-Driven Decisions  In a competitive market, data is one of the most powerful tools a business can wield. By analyzing customer behavior, market trends, and operational performance, businesses can identify patterns and make more informed choices. Real-time data can help spot emerging opportunities and uncover potential challenges before they escalate, ensuring companies stay one step ahead.  Data-driven decision-making is about turning data into actionable insights. For example, IDC’s data analytics solutions offer startups and growing vendors the ability to harness data for better decision-making. With insights into customer behavior, market trends, and operational metrics, IDC helps companies turn data into strategic advantages. These analytics tools are invaluable for identifying key trends, optimizing resources, and making timely adjustments that fuel growth.  Using data to drive your decisions doesn’t require a complex setup; even basic analytics can reveal valuable insights. For instance, tracking customer engagement metrics can inform your product development or marketing strategies. By continually monitoring performance metrics, you can refine your approach, allocate resources wisely, and make strategic adjustments that align with growth goals.  3. Prioritize Operational Efficiency Without Losing Flexibility  Efficient operations are essential for startups and growing tech vendors, but it’s important to balance this efficiency with flexibility. Streamlining workflows and automating routine tasks can improve productivity, reduce costs, and allow your team to focus on high-value activities. However, maintaining flexibility is equally critical—especially in fast-moving markets where customer needs and industry standards are constantly evolving.  Consider adopting lean practices to enhance productivity while staying adaptable. For example, automating tasks in customer support or logistics can drive efficiency, while maintaining flexible processes lets your team pivot as new opportunities or challenges arise. By regularly assessing and refining your workflows, you can find areas to optimize without sacrificing your business’s ability to respond to changes.  Operational efficiency doesn’t mean rigidity; it means refining processes in a way that enhances agility. This balance of efficiency and adaptability will allow your business to grow sustainably, laying a strong foundation for long-term success.  4. Build a Resilient, Sustainable Business Model  In today’s market, sustainability is not only a regulatory requirement but also a powerful driver of brand loyalty and customer trust. Building a business that prioritizes environmental and social responsibility resonates with today’s consumers and investors alike. For example, IDC predicts that by 2027, 80% of IT buyers will only work with vendors that meet social, environmental, and governance-related responsible AI criteria in accordance with sustainable procurement requirements (IDC FutureScape: Worldwide Sustainability/ESG 2025 Predictions). For startups and new tech vendors, adopting sustainable practices from the outset can become a unique differentiator.  Resilience and sustainability go hand in hand. By incorporating eco-friendly practices, responsible sourcing, or transparent supply chain management, you create a business model that supports longevity. This approach also aligns with regulatory demands that are increasingly focused on sustainability, ensuring your business is prepared for future industry standards.  While sustainability can mean an initial investment, it ultimately leads to cost savings through efficient resource use, reduced waste, and improved brand reputation. By embedding sustainability into your business strategy, you’re not only building a resilient business but also positioning your brand as a leader in an increasingly conscientious market.  5. Cultivate a Culture of Innovation and Growth  For tech startups and growing companies, success hinges on a culture that prioritizes continuous learning, innovation, and personal growth. Companies that invest in developing their talent are better positioned to innovate, adapt, and thrive. This focus on professional growth helps attract top talent while also ensuring that your team has the skills to drive your business forward.  Creating a culture of innovation involves more than just providing training; it requires a commitment to fostering creativity and collaboration. By encouraging your team to explore new ideas, experiment with different approaches, and challenge existing assumptions, you ensure that your team is motivated to contribute to your business’s success.  Moreover, nurturing talent in critical areas like AI, data science, and digital transformation equips your team with the skills to lead in a technology-driven world. As the market changes, having a skilled, forward-thinking workforce will be one of your biggest competitive advantages.  Conclusion The road to sustainable growth requires a proactive, strategic approach. By embracing the right technologies, making data-driven decisions, prioritizing efficiency, building a resilient business model, and fostering a culture of innovation, startups and growing tech vendors can lay the foundation for long-term success.  For a deeper exploration of these strategies, download our eBook, 2025 Business Strategy: A Planning Guide for CEOs

As I frequently discuss with clients, the role of a business relationship manager (BRM) is both essential and elusive. BRMs bridge IT and business functions, ensuring that technology aligns with and propels business objectives. Despite the importance of this role, many organizations struggle to fully leverage their BRMs. They can find the role challenging to define, measure, and elevate beyond a tactical level. BRMs often face the challenge of being too accessible, getting pulled into tactical issues simply because they are available. Recently, a client shared that some of her BRMs were handling help desk tickets because there was no one else to support the teams. This highlighted a broader challenge: BRMs can become bogged down in day-to-day tasks, preventing them from taking on a more strategic, consultative role. This misalignment prevents BRMs from guiding the business in identifying, designing, and deploying technology solutions that could create competitive advantages. How can companies grow their existing BRMs into strategic partners, identify those who may struggle with this evolution, and demonstrate the value of BRMs in a measurable way? One approach I recommend is an annual strategic client partnership plan, which can transform the role of BRMs and provide a framework for ongoing alignment with business objectives. The Strategic Client Partnership Planner The strategic client partnership planner offers a road map for BRMs to elevate their roles, helping them engage in high-level strategic planning while remaining responsive to business needs throughout the year. This planning process is structured around six key areas: 1. Partner Goals and Objectives The first step in building an effective BRM partnership is establishing clear, measurable business goals that the IT strategy will support. By aligning IT efforts with business objectives, BRMs can define how they will contribute to broader organizational success. For example: Partner goal 1: Increase market share by 15% Partner goal 2: Enhance operational efficiency to reduce costs by 10% Partner goal 3: Improve customer satisfaction by 20% by Q4 202x These goals provide a foundation for understanding the business’ strategic priorities and help the BRM identify where technology can make a meaningful impact. 2. Current State Analysis of IT Understanding the current state of IT and its alignment with partner goals is essential for identifying areas for improvement. BRMs should assess how well the organization’s IT capabilities support specific business objectives. For example: Partner goal: Increase market share IT support: Scalable XYZ function but limited scalability in ABC function, which may hinder rapid market expansion This analysis helps BRMs and their business partners pinpoint areas where IT may be falling short and highlight opportunities for targeted improvements that align with business priorities. 3. Defining the Approach Once the goals and current state are understood, BRMs should translate partner goals into concrete IT initiatives. Each goal should be mapped to a specific IT initiative that will support it, along with the relevant technologies required. For example: Partner goal: Enhance customer experience IT initiative: Develop a digital customer feedback platform to monitor satisfaction in real time Technology solutions: Cloud-based analytics, customer relationship management (CRM) software This mapping allows BRMs to move from high-level strategy to actionable initiatives, demonstrating how IT investments directly contribute to achieving business outcomes. 4. Gap Analysis The gap analysis identifies the areas where IT capabilities need to evolve to meet future business requirements. Gaps can include missing skills, outdated technology, ineffective processes, or insufficient governance structures. For example: Gap 1: Lack of integration between CRM and ERP systems, impacting customer insights Gap 2: Outdated data management systems that limit scalability Prioritizing these gaps helps ensure that IT efforts focus on areas that will have the greatest impact on achieving business goals, enabling BRMs to advocate for targeted investments and improvements. 5. Key Initiatives This section identifies and outlines the major IT initiatives that will drive partner goals forward. Each initiative should have an expected timeline and key milestones, allowing the BRM to monitor progress and report on success. For instance: Initiative 1: Cloud migration to improve scalability Expected timeline: Q1 2025 to Q4 2025 Key milestones: Cloud provider selection by Q1 2025, migration completed by Q4 2025 Initiative 2: Digital transformation of customer experience Expected timeline: Q2 2025 to Q1 2026 Key milestones: Launch of customer feedback app by Q3 2025 Defining these initiatives with timelines and milestones enables BRMs to track progress, making it easier to communicate the value of their work to business partners. 6. Communication Plan A strong communication plan is essential for maintaining alignment between IT and business stakeholders. By establishing regular communication touchpoints, BRMs can keep partners informed of progress, address any emerging concerns, and adapt initiatives as needed. For example: Audience: Executive team, IT staff, partner unit leaders Communication frequency: Quarterly updates Communication channels: Email reports, executive presentations Annual, Yet Agile The strategic client partnership planner is an annual process but not a static one. BRMs should monitor the business or competitive landscape for changes that could require adjustments to the plan. By staying engaged throughout the year, BRMs can address shifts, ensuring that IT initiatives remain aligned with business needs and continue to provide value. The role of a BRM is inherently dynamic, bridging the gap between IT and business objectives in a way that creates measurable value. By leveraging a structured planning process, BRMs can elevate their roles, demonstrating their strategic value to their partners while avoiding the common pitfalls of being pulled into tactical tasks. Related Resources: IDC PeerScape: Practices for Successful Business Relationship Management IDC PlanScape: LOB Relationship Management for Future IT source

It’s more important than ever for IT and business teams to be on the same page. Yet, many organizations struggle with a communication gap between these two groups. Why is this such a common issue? And how can dashboards be the bridge to solve it? Let’s break it down. The Communication Gap Between IT and Business 1. Misaligned Objectives – One of the biggest reasons IT and business teams struggle to communicate is that they often have very different goals. IT tends to focus on metrics like system uptime, network performance, and cybersecurity. Meanwhile, the business side is more interested in things like revenue growth, customer satisfaction, and market share. With both teams speaking different “languages,” it’s no surprise that they often end up talking past each other, leading to misaligned priorities. 2. Too Much Jargon – Let’s be honest: IT can be a jargon-heavy world. Terms like “network latency” or “data redundancy” are second nature to IT professionals but can sound like gibberish to someone on the business side. Business leaders need information that directly ties into business outcomes—not a lesson in technical terminology. When served this jargon ridden reporting, it reinforce the business perception of IT as a back office function disconnected from a leadership role in the organization. 3. Too Long; Didn’t Read (TLDR) – I recently reviewed a client dashboard where the CIO had 10 minutes to report in the monthly management review meeting IT. It was ten, very detailed, slides. Realistically, there wasn’t sufficient time in 10 minutes to cover even 2-3 slides, and the key business concern – are we on progress to deliver to the business strategy was never addressed succinctly. That answer had to be read from multiple different slides. 4. Why Should I Care – IT reports are often dense with technical data but lack business context. A report on server downtime, for instance, may not explain how that downtime is affecting customer experience or revenue. Without that essential context, it’s hard for business leaders to grasp the true impact of what’s going on in IT, which leads to less informed decision-making. I recently saw a client report which reported on “94% deflection” – a business user would not understand what that meant or even care! The Role of Effective Dashboards So, what’s the fix? One key solution lies in effective dashboards that can translate complex IT data into business-relevant insights. When done right, dashboards can serve as a powerful tool to bridge the communication gap. How Dashboards Help Bridging the Gap: Dashboards translate technical metrics into business insights. Instead of presenting a laundry list of technical KPIs, dashboards present data in a way that aligns with business goals—making it easier for business leaders to understand how IT performance affects them. Key Features of an Effective Dashboard Clarity and Simplicity: A dashboard should be clean and easy to understand. Focus on the most critical metrics and strip away unnecessary data clutter. Less is more when it comes to business-facing dashboards. In my previous example with the 10-slide presentation, I asked the team a straightforward question about the four strategic initiatives: are they on schedule or behind? The response was that three were on track, and one was delayed. However, I only found this out by asking directly—there was no clear indicator, like a simple green, amber, or red flag, to make this status immediately visible. This was the base-level information that the business wanted to know at a glance. Contextual Information: Data is useful, but not sufficient. People need to understand why the data matters. How does what is being reported impact them? Visual Appeal: “People eat with their eyes, not just their mouths,” means it’s got to look good too. Charts, graphs, and colors can make complex data easier. A well-designed dashboard helps non-technical users understand key information. Know Your Audience: A dashboard should be tailored to the specific needs of its audience. Different stakeholders—executives, department heads, or IT managers—need differing levels of detail and focus. For example, a high-level executive might want a quick overview of strategic KPIs, while a department manager may need more granular data on operational performance. Understanding who will be using the dashboard helps ensure it presents the right information in the right format. Often, I see IT departments presenting what THEY feel is important at the expense of what their audience actually cares about. Understand What Outcome You Are Trying to Get: A dashboard is not just a tool for presenting data—it’s a form of marketing from which IT hopes to achieve a beneficial outcome. Whether the goal is to gain executive buy-in, influence decisions, or highlight the value IT brings to the business, the dashboard should be designed with this in mind. It’s about showcasing IT’s impact in a way that drives action, whether that means securing more resources, aligning priorities, or improving collaboration. By understanding what outcome you’re trying to achieve, you can ensure the dashboard tells the right story and promotes the desired business result. Any opportunity to communicate with the business is an opportunity to reinforce that IT is a strategic business partner and not simply bits and bytes. Types of Dashboards 1. Strategic Dashboards: Designed for executives, these dashboards present high-level metrics that are directly tied to business objectives priorities, and strategies, but don’t forget to call out successes. 2. Tactical Dashboards: These are meant for middle managers who are overseeing specific projects or departments. They offer a more detailed look at operations but still focus on IT performance or OKRs. 3. Operational Dashboards: Used by IT teams, operational dashboards monitor day-to-day technical metrics like system health and security. While these dashboards are more technical, they can be connected to business goals when integrated into the larger dashboard framework. Conclusion IT and business alignment is critical for an organization’s success, yet it’s an area where many organizations fail. By addressing the root causes of the communication gap—complexity, jargon, lack of context, TLDR, etc.—and implementing dashboards that speak directly

Cloud computing has been heralded as the panacea for modern IT challenges, promising scalability, flexibility, and cost savings. However, as the cloud landscape matures, many organizations are finding that the reality of cloud adoption does not always align with their expectations. This has led to a growing trend of repatriating workloads back to on-premises or private cloud environments. In this article, we will explore the reasons behind these missed expectations and why some businesses are choosing to bring their cloud workloads back home. The Promise vs. Reality of Cloud Computing Cost Overruns One of the primary drivers for cloud adoption has been the promise of cost savings. However, many organizations are finding that their cloud spending is exceeding initial estimates. According to IDC’s Cloud Pulse 4Q 2023 survey, close to half of cloud buyers spent more on cloud than they expected in 2023, with 59% anticipating similar overruns in 2024. The complexities of cloud environments, coupled with unforeseen external influences, make it challenging to forecast costs accurately. Factors such as the increasing cost of third-party services, energy costs, and the financial implications of new technologies like GenAI are contributing to these budget blowouts. Performance and Latency Issues While cloud providers offer robust infrastructure, not all workloads are suited for the cloud. Performance and latency issues are common complaints, particularly for applications that require real-time processing or have stringent performance requirements. For instance, technical and AI-related workloads often experience performance bottlenecks in public cloud environments, prompting organizations to consider repatriation. Security and Compliance Concerns Data security and regulatory compliance are critical considerations for any organization. Despite the advanced security measures offered by cloud providers, many businesses remain concerned about data breaches and compliance with industry regulations. This is particularly true for sectors like finance and healthcare, where data privacy is paramount. As a result, production data and backup/disaster recovery processes are among the most repatriated elements of workloads. Complexity in Management Managing a multi-cloud or hybrid cloud environment can be incredibly complex. Organizations often struggle with integrating different cloud services, managing data across multiple platforms, and ensuring consistent security policies. This complexity can negate the perceived benefits of cloud adoption, leading some businesses to reconsider their cloud strategies. The Repatriation Trend What is Repatriation? Repatriation refers to the process of moving workloads from public cloud environments back to on-premises or private cloud infrastructure. This trend is part of a broader industry movement towards hybrid multi-cloud IT strategies, where organizations seek to optimize their workload placement across various environments. Drivers for Repatriation Several factors drive the decision to repatriate workloads: Cost Management: As mentioned earlier, unexpected cost overruns in the cloud can make on-premises solutions more attractive. By repatriating workloads, organizations can gain better control over their IT spending. Performance Optimization: For workloads that require high performance and low latency, on-premises infrastructure can offer superior performance compared to public cloud environments. Security and Compliance: Repatriating sensitive data and critical applications can help organizations meet stringent security and compliance requirements more effectively. Operational Control: Having workloads on-premises allows for greater control over IT operations, enabling organizations to tailor their infrastructure to specific needs and optimize resource utilization. The Scale of Repatriation While repatriation is a growing trend, it is not a wholesale migration. According to IDC’s Server and Storage Workloads Survey, only 8-9% of companies plan full workload repatriation. Instead, most organizations repatriate specific elements of their workloads, such as production data, backup processes, and compute resources. Larger Organizations Leading the Way Larger organizations are more active in repatriating workloads compared to smaller businesses. This is due to their greater resources, larger workloads, and more complex IT environments. Economic factors and comprehensive workload strategies also play a role in driving repatriation activities among large enterprises. Conclusion The initial promise of cloud computing has not been fully realized for many organizations, leading to missed expectations and a growing trend of workload repatriation. Cost overruns, performance issues, security concerns, and management complexities are some of the key factors driving this shift. While the cloud remains a vital component of modern IT strategies, businesses are increasingly adopting a hybrid approach, optimizing their workload placement across public cloud, private cloud, and on-premises environments. As the cloud landscape continues to evolve, organizations must carefully assess their cloud strategies, balancing the benefits of cloud adoption with the realities of their specific needs and challenges. By doing so, they can make informed decisions about where to best deploy their workloads, ensuring they achieve the desired outcomes without compromising on cost, performance, or security. References: IDC #US52018924 (April 2024), “Why Are So Many Cloud Buyers Blowing Their Cloud Budgets?” IDC #US50858223 (June 2023), “Larger Organizations Show Greater Activity in Repatriating Compute Resources from Public Cloud” IDC #US51930724 (March 2024), “Data, Compute, or Development Process — What Elements of Workloads Companies Repatriate More Often” IDC #US50779123 (June 2023), “Enterprises of Different Sizes Show Similar Levels of Interest in Repatriating Storage Resources from the Public Cloud” source

AI has captured investors’ attention, turning companies like Nvidia and AMD into household names. Growth is driven by tech giants investing in AI. Learn IDC’s latest views in this blog. source

As many casual tech observers might have recently seen, Samsung released a new device type at their latest Unpacked event (July 10th): the “Samsung Galaxy Ring”. This signals a shift in the Smart Ring space. The Smart Ring space is currently dominated by Smart Ring producing specialists like Oura and Ultrahuman but now the larger brands are beginning to compete by incorporating rings into their existing ecosystems of devices. It also potentially marks the shift from Smart Rings being a small segment of the wearables technology landscape to becoming a main stay in the space. In the last full year of data, 2023, IDC recorded Global Ring sales of 880,000 units, with Oura representing 80% and Ultrahuman in second with 12%. We are forecasting this to rise to 1.7 million in 2024 and 3.2 million in 2028, equating to a year-over-year growth rate of 29.5%. For comparison, the total global Smartwatch sales in 2023 were roughly 161 million devices, forecasted to rise to 175 million by 2028, an average year-over-year growth rate of 1.7%. This reflects the greater maturity of the Smartwatch market and the lengthening replacement cycles of Smartwatches as the upgrades become more iterative. So, for now, Smart Rings will be a small but fast-growing part of the wearable device market. Get access to the latest performance data for the wearables market—including Smart Rings and Smartwatches—with IDC’s Wearables Devices Tracker. You can learn more about the product with this resource or see the data in action and explore more sample insights here. The early reception of the new Galaxy Ring appears to be one of moderate interest, with consumers seemingly liking the new form factor the ring offers. The ring form does have a distinct advantage of being more sleek and less obtrusive than Smartwatches, which is especially significant when sleep tracking. Many Smartwatch wearers dislike wearing a watch to bed but would think nothing of keeping their rings on. There is also a subset of consumers, especially those with smaller wrists, that dislike wearing bulky Smartwatches like those offered by Apple and Samsung. Some brands, such as Garmin, do offer female specific slimmer designs with the Lily range of watches, but the ring format might be another option. We also have a significant section of the population who prefer the premium Analog watches, like your Rolex or Omegas. From conversations in the industry, it is clear that many of the large players within the wearable devices space are watching Samsung Ring sales with interest, and are exploring the possibility of producing their own Smart Rings. So should the Galaxy Ring prove to be a success we will likely see many other players jumping into the market, like we saw with the release of the first Apple Smartwatches . The Substitution Problem Unfortunately for the Wearables market as a whole, Smart Rings look set to compete directly with Smartwatches as many of the features they offer are directly comparable. Take the Galaxy Ring, for example, offering sleep tracking, heart rate monitoring, activity tracking and wellness monitoring. These are all things offered by their Galaxy line of watches, and whilst Samsung has discussed their watches and Ring working together saying “Wearing the Galaxy Ring with a Galaxy watch, … will maximize its shared health features while also extending the Ring’s battery life”. From a consumer’s point of view, given the release price of the Samsung ring was $400 and a medium spec Galaxy watch can set you back the same amount; it leads us to question just how many consumers will have $800 burning a hole in their pockets, and a desire to get two devices that do essentially the same thing. Though the Galaxy Ring is priced comparably to its biggest competitor, Oura’s Ring 4, which has a base model price of $349, but requires a monthly $5.99 subscription.  Samsung, as of now, hasn’t made any announcements of subscriptions being needed. So, it appears inevitable that in the medium to long run Smart Rings will eat into the Smartwatch share of the wearables market. The extent to which they do so is yet to be determined, and there will undoubtedly be people out there who wouldn’t have bought a Smartwatch but will buy a Smart Ring. Conclusions Smart Rings are a device type that has the potential to flourish in the next few years; the extent to which it does will be determined by the number of big players that launch their own rings and if the largely positive reception continues. But as Smart Rings flourish, we will likely see that these wearable makers are, to some extent, taking market share from themselves. As their own Smart Ring sales rise their Smartwatch sales will likely fall. That all being said, bring on the Smart Ring revolution. source