A group of datapoints showing recovery with a number of bumps. The Office of National Statistics says GDP has grown by .8% in May, which is linked to lifting COVID-19 restrictions, but is lower than previous months growth of 2.4%. Chip shortages are cited as a drag on a number of sectors, and that will include PCs. IDC’s data says shipments are up 13.2% in Q2 2021 over 2020, but buying trends are tapering off, down to 13% growth rate, versus 55.9% last quarter.
77% of American respondents to new research said their IoT project was at best only somewhat successful in meeting expectations and realizing benefits but 86% still plan increased investment.
Over one third (36%) of USA organizations have decreased their investment plans in IoT and 33% have cancelled their IoT initiative altogether as a result of COVID-19, a figure considerably higher than their UK counterparts (19%), according to a new State of IoT Adoption Study commissioned by global IoT connectivity specialist, Eseye.
Only about 20% of B2B buyers said they hope to return to in-person sales, even in sectors where field-sales models have traditionally dominated, such as pharma and medical products, McKinsey said.
Video usage in business is going way up — global enterprise video market size is projected to grow from $16.4 billion in 2020 to $25.6 billion by 2025 at a compound annual growth rate of 9.3% during the forecast period, according to MarketsandMarkets Research from 2020.
And in all of that, IT Provider profitability is down. Per GlobalData, 50% of the top 20 providers reported year on year revenue decline, and nine saw a drop in net earnings. That’s a 14.6% decline across the group in net earnings, and 40% of those had double digit decline in net earnings for the year.
Why do we care?
Sure, that’s very large providers… but that’s not a great sign. The sugar high of PC sales didn’t last long, did it? Makes sense why Microsoft is putting out a new Windows in that context.
There is a lot in the market that’s shifted. The way buying (and thus selling) is done, the types of technology used, and the type of services needed to support customers. I included the video stat to show an investment in new technologies – companies are changing their behaviors, and there are opportunities to be found out there. What I’m highlighting is both that the old ways may not work, and to not assume it’s just out there for the taking. The state of the market is dynamic – which also means the floor under you is not so solid.