Digital Transformation: One Size Does Not Fit All

Lloyd McCoyWritten by | Cloud, Edge & IoT, Featured

According to IDC, global spending on digital transformation will reach $2 trillion by 2022, growing at a rapid CAGR of 17%.

Manufacturing, transportation and retail will be by far the largest vertical markets in terms of spending, and they will be looking to invest in next-generation innovations in manufacturing, supply chain management and marketing.

The potential that IoT, cloud computing and artificial intelligence/machine learning represent are changing how organizations leverage data to drive business decisions, but it all boils down to driving down costs and increasing production and efficiency – those are shaping your customer’s decisions around digital transformation.

The Preponderance of Hybrid and Multi-Cloud

One of the primary manifestations of digital transformation that we’re seeing is the preponderance of hybrid and multi-cloud. According to the vast majority of industry surveys, over 70% of organizations have hybrid or multi-cloud environments. That number is rising, as spending on public cloud is up to three times faster than private cloud. Even with private cloud, we are seeing organizations leaning toward managed private cloud services. With this trend comes demand for provisioning software, security and monitoring, application/data movement, and tools that help facilitate consistent user experience across cloud platforms. Other areas where customers undergoing digital transformation will focus their spending will be on converged infrastructure, hybrid cloud data services and software-defined technologies.

The Challenges of Digital Transformation

Digital transformation does come with challenges. Security in the cloud remains a consideration for many organizations, particularly when deploying applications that are cloud native. Additionally, budget limitations, often brought on by existing infrastructure requirements, will often impede digital transformation. Lastly, another culprit customers face is simply scheduling and logistics. These are concerns you may confront in your customer interactions, even with organizations already on the path of digital transformation.

Such challenges, however, will make very little impact on the overall embrace of digital transformation. In fact, IDC predicts that by 2025, there will be over $160ZB (trillion gigabytes) of data generated. Your customers understand this world of data—along with the numerous deployment models (mobile, IoT, cloud, on-premises, etc.)—provides both challenges and opportunities. Helping them maintain their competitive edge will require the following:

  • A partner to support the software, hardware and services needs of your transforming customer
  • Embracing multi-cloud and providing solutions that eliminate the complexity of data synchronization, while providing security and reliability
  • Providing flexibility and simplicity, focusing on solutions that help business gain competitive advantage
  • A focus on capabilities versus products

There is no one-size-fits-all approach to digital transformation, so flexibility, speed and agility are key in helping companies modernize their infrastructure and approach to data management. With the pace at which technologies are emerging, expect digital transformation to be ongoing. Success in helping facilitate digital transformation ultimately comes down to partnering well and understanding your customer’s niche and how to integrate innovative technologies into their business efforts.

Arrow can be that partner that helps you support the needs of your digitally transforming customer. Learn how by visiting and reach out to us!

Last modified: June 19, 2019