It’s quite a while since I wrote the latest post and this year I set a target for myself to be more focused on what I read and to write more. To keep the long story short, I will resume my writing with a short post on what I expect this year from IT Industry in Romania. It’s far from an extensive analysis and I will only refer to the important factors that I believe are most relevant for 2016.
The development and the adoption rate of technologies are always heavily influenced by the political and economic context. So, what will 2016 bring?
What’s happening on the political and economic stage?
If I think on a single word to summarize the beginning of the year it’s uncertainty. Economically speaking, the uncertainty is generated by two critical factors: the dramatic oil price drops and China’s growth fragility. The emergent countries are also sailing on shallow waters and the fear for the future is well resented on the markets.
Politics are also not very good. Without entering deep into causality and conspiracy theory, the epicenter of the political world these days is in the Middle East. For Romania (and Europe) the most significant implication is the 1milion refugees that entered Europe in 2015 and consequently the increased security risks.
An additional stress factor for Romania, are the legislative and local elections. The tendency in the election years is to reduce the investment in critical public projects and to spend the public money on actions with limited long term value but with high impact on votes.
What should we expect in the IT Industry?
Speed up cloud services adoption
Cloud is not a technology in itself but rather a way of consuming technology. There are 2 key advantages in using cloud services that are important during uncertain times: they do not require significant investment for the customer (those reducing risks and pressure on financial budgets) and they are highly flexible (basically you pay only what you consume). Of course there are drawbacks that require attention but the economic benefits will be stronger in today’s world.
Increased interest for security technologies
IT Security business growth was below expectations in the recent years but I think 2016 will change that. Why? Only a few days have passed since the beginning of the year and we saw significant military acquisition in Romania (air defense radar and anti tank missiles). This is a strong trend that includes also IT security technologies and will dominate both public and private space. Surveillance technologies (Internet and physical surveillance) worth mentioning because keeping an eye on unwanted activity will be a priority.
Internet of Things adoption
This is the last, but certainly not the least important trend that we will see in the IT Industry. A lot of things happened in this space during the last 2-3 years and I think the technology and service providers reached an optimal level of maturity. Significant standardization effort is happening (fragmentation of technologies is a big issue in IoT space) and the ecosystem is starting to deliver real value. And value is like music to the ears for companies looking for new business models and new revenue streams in the turbulence around.
These are my bets for 2016 which, by the way, I expect to be a fascinating year. I will go into more details on each trend mentioned above in the following posts. Stay tuned.