• Prediction 1 – In 2018, SMB IT spending will increase 4.6% to $568 billion, top $25 billion over 2017 levels with both traditional 2^nd Platform (PC, server, and network) and 3^rd Platform (social, mobile, could, and big data) spending continuing to grow. Software and business services spending will show the greatest gains
• Prediction 2 – As firms continue to add cloud resources, the integration of cloud and on-premises resources will be an increasingly important priority for companies across the SMB size spectrum, with more than half citing it as a tech-spending priority by 2019
• Prediction 3 – Alternative Channels such as online self-provisioning, cloud marketplaces, and cloud service brokers will play an increasing role in the market, with half of SMBs acquiring resources via such channels by 2020
• Prediction 4 – Innovation Accelerators (such as Internet of Things, Cognitive/AI Systems, Next Generation Security, 3D Printing, Augmented and Virtual Reality, and Robotics) will transform production processes in key SMB sectors, with one-third of SMBs in progressive verticals, such as Manufacturing and Healthcare, using at least one accelerator by 2020
• Prediction 5 – Half of SMBs in developed countries will have basic business intelligence/analytics resources in place by the end of 2020 to sharpen decision making, with predictive analytics used by over one-quarter
• Prediction 6 – By the end of 2019, the Internet of Things will be used by one-third of SMBs in key industries to collect and evaluate real-time internal and external data to refine business practices
• Prediction 7 – Digital Transformation will be a key part of company strategy for half of SMBs — 60% in some regions — by the end of 2019; but the danger of disruption is already present, especially from start-ups
• Prediction 8 – By the end of 2020, over 20% of SMBs in developed countries will have implemented Cognitive/Artificial Intelligence Enterprise Software or Intelligent Assistants
• Prediction 9 – By the end of 2018, half of SMBs worldwide will have formal or informal mobile-worker support in place
• Prediction 10 – The share of SMBs worldwide with millennials in senior management will exceed 50% in 2019

These predictions are based on the following drivers:

• Accelerating Digital Transformation – Technology-centric transformations are altering both our business and society
• Pace of Change – We are now living in an accelerating time to change. But the next few years will be even more so where technologies capabilities are really supporting a lot of digital transformations
• Human vs Machine – Impact of AI and automation to supplement and enhance, in some cases replace, the human workforce
• Sense, Compute, Actuate – The new data-centric paradigm. Data driven, metrics oriented, and abilities to leverage analytics in an innovative way to help driving business decision making as we move forward
• Empowering the Material World – Revolutionized processes and expand tech with innovation accelerators
• Innovation Impasse – Legacy systems constraining transformation. Moreover, the legacy thinking is also a constraint. Lots of people still think about a new world in an old way. I believe many of you have encounter this type of thinking before.

With these predictions, we hope you will be able to create a successful investment plan and key activity strategy for critical technologies in this fast-moving world.