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December 19, 2022
5 Min Read
As business leaders look toward 2023, many see the possibility of tough economic times. Inflation, the war in Ukraine, and continuing supply chain and pandemic-related challenges are taking a toll.
Respected economists are warning of sluggish growth. For example, the International Monetary Fund's Pierre-Olivier Gourinchas released a statement that said, “The three largest economies, the United States, China and the euro area, will continue to stall.” He added, “In short, the worst is yet to come and, for many people, 2023 will feel like a recession.”
Despite the bad economic news, companies say they don't plan to cut down on tech spending. In fact, a Forrester survey found that two-thirds (67%) of IT decision makers plan to increase their tech spending in the next 12 months, and more than a quarter (26%) expect tech spending to grow by more than 5%.
Industry analysts predict that companies will continue to view technology as a key business enabler that can differentiate them from the competition. But they may begin to shift some of their technology spending away from big, risky initiatives toward more pragmatic products that are likely to yield a quick return on investment.
With that in mind, here are five enterprise tech trends to watch in 2023:
1. Intelligent Automation
Automation software looks particularly attractive during tough economic times because it allows organizations to accomplish more with fewer workers. The newest intelligent automation software incorporates artificial intelligence capabilities to achieve dramatic results.
For example, Vietnam-based Central Retail recently invested in an intelligent automation solution to help streamline its invoice-matching process. The company, which has 38 malls and 260 stores, needed to process more than 1.8 million invoices each year. The new solution allowed it to automate 75% of that work, saving the company 90,000 hours per year and US$500,000 over a five-year span.
Forrester forecasts that companies following Central Retail's example will do well in 2023: “Efforts will pay off for those with the mettle to adjust to 2023’s realities while doubling down on automation to reap overwhelming competitive advantage.”
Automation is closely tied to another key trend: DevOps practices. Rather than a particular technology, DevOps is a mindset that allows IT organizations to become more effective and efficient. It applies the principles of Agile development to IT operations while promoting closer collaboration between developers and operations personnel. It embraces technologies like automation, continuous integration/continuous deployment (CI/CD), cloud computing, and containerization (especially use of Kubernetes).
Companies that adopt DevOps often become more responsive to customers and able to push out new initiatives more quickly. In one example, FPT Software, Vietnam's largest tech firm, helped a Korean ecommerce giant modernize its deployment pipeline and standardize its toolchain. The retailer now provides differentiated shopping experiences to its customers and has highly efficient DevOps deployment processes that enable more than US$5.1 billion in revenue.
As augmented reality (AR) and virtual reality (VR) technology matures, it is enabling a new digital world known as the “metaverse.” Gartner explains, “Metaverse allows people to replicate or enhance their physical activities. This could happen by transporting or extending physical activities to a virtual world or by transforming the physical one.”
Facebook is famously championing the metaverse concept and even changed its company name to Meta. But so far, other companies have been slow to jump on board.
That could change in the near future, however.
The pandemic changed the way that people worked and shopped, and companies are beginning to recognize that things will never go completely go back to how they were. They are using software like akaVerse to set up retail or office locations in the metaverse. This could become a significant trend. In fact, according to Gartner, “Through 2027, fully virtual workspaces will account for 30% of the investment growth by enterprises in metaverse technologies and will 'reimagine' the office experience.”
4. Cloud Computing
At this point, nearly all companies now do at least some of their computing in the cloud. And the pandemic and other recent disruptions have accelerated the pace at which businesses are moving workloads into the cloud. And the tough economic times are making the cloud even more attractive.
For 2023, Gartner expects a rise in industry-specific platforms that “combine SaaS, PaaS and IaaS with tailored, industry-specific functionality that organizations can use to more easily adapt to the relentless stream of disruptions in their industry.”
The cloud's pay-as-you-go model is particularly attractive in a slowing economy because it allows organizations to quickly scale back on usage, and more importantly on spending, should they need to cut costs. Cloud management tools like FPT CloudSuite can further enhance agility, while helping organizations reduce expenses and improve service quality.
5. Digital Transformation
For most organizations, digital transformation takes many years. Many companies that embarked on digital transformation initiatives in recent years will see those efforts continue and evolve in 2023.
Several industry analysts expect digital transformation efforts to focus on pragmatism, execution, and scale in 2023. For example, IDC sees companies transitioning “from digital transformation technology investment strategies to focusing on running digital businesses.” It predicts, “By 2024, the top 5 companies in each sector will be those that used technology to innovate their way out of a global crisis such as recession or supply chain disruption.”
FPT Software offers end-to-end digital transformation services to help companies with every step of their journeys. They see digital transformation as a marathon, not a sprint, and help companies around the world accelerate their digital innovation, even as disruptive forces generate uncertainty.
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