How are customers changing? Well, 97% of respondents to a Twilio study believe the pandemic has accelerated digital transformation, and 79% believe their budgets for digital transformation has increased.
But the money comes from other places – IT operations and capital expenses are being cut, with 30% of organizations expected to cut IT operations, per a report from Avasant Research. And IDC ads to that – with IT professionals saying half of their organizations are cancelling or delaying investments in campus networks – and software defined WANS are on the decline too. Network management and unified communications have outpaced the declines to being a bright spot.
Why do we care?
There’s an upside and a down. The pandemic is creating a big space to rethink old assumptions. That’s all good news, and it does create opportunity.
It’s not necessarily creating new spend – and I didn’t even layer on the fact that revenues are down. Money is being reployed, with a higher expectation. That’s the downside.
Savvy pivots to focus on business outcomes – I hate digital transformation language – will be those that succeed.
Source: The New Stack