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Worldwide ICT spending poised to hit $4.3-Tn in 2020

Worldwide spending on ICT will increase by 3.6% this year over 2019, with commercial and public sector spending accounting for well over half the total

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A new forecast from International Data Corporation (IDC) predicts worldwide spending on information and communications technology (ICT) will be $4.3 trillion in 2020, an increase of 3.6% over 2019. Commercial and public sector spending on information technology (hardware, software and IT services), telecommunications services, and business services will account for nearly $2.7 trillion of the total in 2020 with consumer spending making up the remainder.

Serena Da Rold, program manager in IDC’s Customer Insights and Analysis group, says: “The slow economy, weak business investment, and uncertain production expectations combined with protectionist policies and geopolitical tensions — including the US-China trade war, threats of US tariffs on EU automobiles and the EU’s expected response, and continued uncertainty around the Brexit deal — are still acting as inhibitors to ICT spending across regions. On the upside, our surveys indicate a strong focus on customer experience and on creating innovative products and services driving new ICT investments. Companies and organizations across industries are shifting gears in their digital transformation process, investing in cloud, mobility, the Internet of Things, artificial intelligence, robotics, and increasingly in DevOps and edge computing, to transform their business processes.”

IT spending will make up more than half of all ICT spending in 2020, led by purchases of devices (mainly mobile phones and PCs) and enterprise applications. However, when combined, the three IT services categories (managed services, project-oriented services, and support services) will deliver more than $750 billion in spending this year as organizations look to accelerate their digital transformation efforts. The application development & deployment category will provide the strongest spending growth over the 2019-2023 forecast period with a five-year compound annual growth rates (CAGR) of 11.1%.

Telecommunications services will represent more than one-third of all ICT spending in 2020. Mobile telecom services will be the largest category at more than $859 billion, followed by fixed telecom services. Both categories will see growth in the low single digits over the forecast period. Business services, including key horizontal business process outsourcing and business consulting, will be about half the size of the IT services market in 2020 with solid growth (8.2% CAGR) expected for business consulting.

Consumer ICT spending will grow at a much slower rate (0.7% CAGR) resulting in a gradual loss of share over the five-year forecast period. Consumer spending will be dominated by purchases of mobile telecom services (data and voice) and devices (such as smartphones, notebooks, and tablets).

Four industries – banking, discrete manufacturing, professional services, and telecommunications – will deliver 40% of all commercial ICT spending in 2020. IT services will represent a significant portion of the spending in all four industries, ranging from 50% in banking to 26% in professional services. From there, investment priorities will vary as banking and discrete manufacturing focus on applications while telecommunications and professional services invest in infrastructure. The industries that will deliver the fastest ICT spending growth over the five-year forecast are professional services (7.2% CAGR) and media (6.6% CAGR).

More than half of all commercial ICT spending in 2020 will come from very large businesses (more than 1,000 employees), while small businesses (10-99 employees) and medium businesses (100-499 employees) will account for nearly 28%. IT services will represent a significant portion of the overall spending for both market segments – 54% for very large businesses and 35% for small and medium businesses. Application and infrastructure spending will be about equal for very large businesses while small and medium businesses will invest more in applications.

“SMBs are increasingly embracing digital transformation to take advantage of both the opportunities it presents, and the disruption it can mitigate,” says Shari Lava, research director, Small and Medium Business Markets at IDC. “Digitally determined SMBs, defined as those that are making investments in digital transformation-related technology, are almost twice as likely to report double-digit revenue growth versus their technology indifferent peers.”

IDC’s Worldwide ICT Spending Guide Industry and Company Size is IDC’s flagship all-in-one data product capturing IT spending across more than 120 technology categories and 53 countries. This IDC Spending Guide will provide a granular view of the market for IT spending from a country, industry, company size, and technology perspective. This comprehensive database delivered via pivot table format or IDC’s custom query tool allows the user to easily extract meaningful information about various technology markets and industries by viewing data trends, relationships, and making data comparisons across more than three million data points.

The Worldwide Small and Medium Business Spending Guide provides detail on small and midsize business IT spending across 40 technology categories in nine geographic regions and 53 countries. Spending details are also provided for four company size categories: 1–9 employees, 10–99 employees, 100–499 employees, and 500–999 employees. Unlike any other research in the industry, the comprehensive spending guide was designed to help IT decision-makers to clearly understand the direction of SMB spending today and over the next five years.

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Vodacom cuts cost of smallest bundle by 40%

The country’s largest mobile operator has kept to a promise made last month to slash the price of entry-level data packages

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Vodacom has cut the data price of its lowest-cost bundle by 40%, reducing the price of a 50MB 30-day bundle from R20 to to R12. This follows from the operator’s promise in March, when it announced a 33% cut in the cost of 1GB bundles, to reduce prices of all smaller bundles by up to 40%.

Vodacom’s various 30-day data bundle prices will be cut across all of its channels, with the new pricing as follows:

30-day bundle size New Price Reduction
50MB R12 40%
150MB R29 33%
325MB R55 33%
500MB R79 21%
1GB R99 34%
3GB R229 23%
5GB R349 14%
10GB R469 22%
20GB R699 31%

Vodacom confirmed it will provide free data to access essential services through Vodacom’s zero-rated platform ConnectU with immediate effect. The value of these initiatives, it says, is R2.7-billion over the next year.

“Vodacom can play a critical role in supporting society during this challenging time and we’re committed to doing whatever we can to help customers stay connected,” says Jorge Mendes, Chief Officer of Vodacom’s Consumer Business Unit. “Since we started our pricing transformation strategy three years ago, our customers have benefitted from significant reductions in data prices and the cost of voice calls. Over the same period, we invested over R26 billion in infrastructure and new technologies, so our customers enjoy wider 2G, 3G and 4G coverage and vastly increased data speeds.”

The latest data reductions will complement the discounted bundle offers that will also be made available to prepaid customers in more than 2,000 less affluent suburbs and villages around the country. For qualifying communities to access further discounted voice and data deals, they need to click on the scrolling ConnectU banner on the platform via connectu.vodacom.co.za

ConnectU – which is a zero-rated platform – also went live this week. It will provide content aimed at social development and offers a variety of essential services for free. Learners and students enrolled in schools and universities can access relevant information for free, with no data costs. The ConnectU portal includes a search engine linked to open sources such as Wikipedia and Wiktionary as well as free access to job portals; free educational content on the e-School platform; free health and wellness information and free access to Facebook Flex, the low data alternative to Facebook that enables customers to stay socially connected.

Vodacom’s popular Just4You platform has been a significant contributor to the approximately 50% reduction in effective data prices over the past two years. Substantial cuts in out-of-bundle tariffs and the introduction of hourly, daily and weekly bundles with much lower effective prices have also driven increased value and affordability, resulting in R2-billion in savings for customers in 2019.

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OneBlade shaves price of electric precision

Electric razors and their blades are usually quite expensive. But the Philips OneBlade shaves the cost, writes SEAN BACHER

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Electric razors come in all shapes and forms and their prices vary as well. When your nearest electronic retail outlet opens again, you will be able to pay a small fortune for a wet and dry razor that cleans itself, shows you when it needs to be recharged, and tells you to replace the cleaning solution – all via a little LCD panel in the handle.

But does everyone want that? Does everyone need that? Surely there must be customers who want an easy-to-use, no-mess, no-fuss razor that gets the job done just as well as a “smart razor”?

With this in mind, Philips has launched its OneBlade wet and dry electric razor. The razor is dead simple to use. It comes with three stubble combs – 1mm, 3mm and 5 mm –  which can be clicked onto the head much like one would with a hair shaver. Should you want a really close shave, simply the combs off. I found this to be the most effective as I don’t have a beard.

The razor’s blade is the size of the striking side of a matchbox and has 90-degree angles all round. This offers precise shaving and, because of its small size, it is able to get just about anywhere on a person’s face.

The blade has a usage indicator that shows when it is time to replace the blade – usually after four months – and an additional blade is included in the box.

The OneBlade’s battery takes up to eight hours to charge, and will give up to 45 minutes shaving time.

Overall, the Philips OneBlade will give a man a comfortable and precise shave. Its battery life, combined with its size, makes it a perfect travel companion as it is no bigger than an electric toothbrush. Its relatively low price compared to other electric razors also counts in its favour.

The One Blade can be bought from most electronic retailers or can be ordered online from websites like takealot.com. The razor retails for R650 and a set of two new blades will cost around R450.

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