Trend #1: Technology Spending is Bigger and Growing Faster Than Ever Before
The consensus forecast places total global IT spend in 2015 at ~$3.8 trillion. In reality, if you include everything that’s being digitized total global IT spend will~ $20 trillion by 2020. In the years 2000 to 2010 the Compound Average Growth Rate [CAGR] of IT spending ~ -.2%. In marked contrast , CAGR for 2011-2020 is predicted ~ 14+%.
Trend #2: “Shadow IT Will Become “Shallow IT” Will Become R&D
The money being spent outside of IT [i.e., behind IT’s back] is frequently referred to as “Shadow IT.” Historically it was viewed as a bad thing – a reflection that IT was not able to keep up with or deliver fit-for-purpose solutions to the business. Progressive IT shops now view Shadow IT as a demand signal [i.e., the business is holding up their hand and saying this is something I want a technology solution for].
The business is essentially doing pre-enterprise roll out beta testing of possible solution sets. When these experiments surface true user requirements IT can step in and rapidly commercialize risk adjusted, at-scale enterprise systems.... Read more
Searching for leaders, consulting on strategy, positioning in markets and incubating startups—the activities that go on day to day at Gustin Partners and its affiliate GP Capital—most days is maddening: Sort of like juggling a bowling ball, a tennis ball, a ping-pong ball and a BB. All spherical for sure, but all different in most other respects.... Read more