IT spending, smartwatches, AI and the cloud: Research round-up

The Harvey Nash/KMPG survey examines CIOs' IT priorities, which this year are headed by 'Improving business processes', 'Delivering consistent & stable IT performance to the business' and 'Increasing operational efficiencies' (all at 62%). Along with 'Saving costs', these priorities have figured prominently over the years. Topics that have increased noticeably in recent surveys are 'Developing innovative new products and services' and -- unsurprisingly -- 'Improving cyber security'.

For more see: Tech Budgets 2019: Surveys and projections

Apple's new Watch Series 4 is likely to give smartwatch sales a boost this year and help the category dominate wearables in the next four years. IDC expects smartwatch shipments to grow 39 percent on 2017 shipments of 33 million units to 46.2 million in 2018. Apple Watch accounts for just under half of all smartwatch shipments.

For more see: Smartwatch sales will double in next four years

IDC's second quarter wearables device tracker highlights how competition and multiple devices are thumping Samsung's smartwatches. Global wearable shipments -- primarily smartwatches and fitness trackers -- saw second quarter shipments grow 5.5 percent to 27.9 million units in the second quarter, according to IDC data. But perhaps the biggest takeaway is that Samsung isn't among the top 5 vendors.

For more see: Samsung has a wearable device problem as it can't crack IDC's top 5 vendors

Apple maintains its top spot among PC customer satisfaction with Amazon surging 4 percent and Dell, Asus and Toshiba falling. HP gains 1 percent, according to the 2018 American Customer Sentiment Index (ACSI). The ACSI, which combines PCs and tablets, takes the pulse of consumers on a 0 to 100 scale.

For more see: Amazon computing device satisfaction fares well, Dell falls, Windows gains, says ACSI

ACSI notes that "most aspects of the PC industry have deteriorated in the eyes of customers." Design slips to 82, followed by accessories, software and apps, and graphics and sound quality (all 80). There is no change regarding ease of operation (79), but system crashes are now more frequent (77), features have lost some appeal (77), and processor speed is down (-3 percent to 76).

For more see: Amazon computing device satisfaction fares well, Dell falls, Windows gains, says ACSI

PC sales may grow next year after years of decline -- if only by a tiny amount. According to tech analyst Canalys, shipments of desktops, notebooks and two-in-ones are set for 0.3 percent growth next year, after seven years of decline. The Asia Pacific region will be one key driver of growth in the face of falling demand in Europe and China, as well as Windows 10 upgrade projects in business.

For more see: PC sales might actually grow next year, thanks to Windows 10

The PC story is good at Dell Technologies, too. The firm raised its fiscal year guidance after a strong second quarter fueled by double-digit growth for its data center unit as well as PCs. Dell saw strong commercial PC demand. Dell's client solutions group had revenue of $11.1 billion, up 13 percent. Commercial revenue was up 13 percent in the second quarter with consumer sales up 14 percent. PC unit operating income was $425 million.

For more see: Dell Technologies sees strong Q2 demand for its data center gear, PCs

While some see AI in a negative light, many have a brighter outlook. Among those surveyed in a Salesforce study, 67 percent of customers say they recognise the good that can come from AI, and 61 percent believe the technology presents positive opportunities for society. In fact, customers have come to revere a variety of AI-powered technologies.

For more see: In the age of AI, trust is the most important core value

To build trust, businesses must give their customers control over what information is collected, be transparent about how that information is used, and show commitment to protecting that information. There are other practices that are crucial to earning customer trust, but these are the top three.

For more see: In the age of AI, trust is the most important core value

According to Gartner, cloud providers are expanding across categories as customers demand offerings with more depth and breadth for their hybrid environments. Globally speaking, Gartner predicts that by 2021, cloud revenues will total $278 billion. SaaS remains the largest segment of the cloud market, with revenue expected to grow 17.8 percent to reach $85.1 billion in 2019, $99 billion in 2020, and $113 billion in 2021.

For more see: Gartner predicts Australian public cloud spend to reach AU$7.7b in 2021

The shift to cloud computing continues to gain momentum, with nearly half of application spending going on-demand within the next four years. Across key areas of enterprise technology, 19 percent of spending currently goes on cloud services. According to tech analyst Gartner, that will rise to 28 percent by 2022, with growth in enterprise IT spending on cloud-based offerings outstripping growth in traditional, non-cloud IT offerings.

For more see: Cloud computing: Here comes a major tipping point

Randomly ask coworkers who your customer is. You'll get a bunch of answers depending on the role of the worker, but the most obvious one -- the end customer -- will get the least mentions. We've seen hundreds of IT spending surveys over the years and customer experience never rates as a priority. The business is also trying to balance customer experiences and profits. The groups closest to the customer are viewed as cost centres.

For more see: If being customer first is so important, why don't companies do it?

There are plenty of technology companies that think shareholders are their true customers. Many vendors cut corners, scrimp on innovation and overpromise and underdeliver. Technology vendors' core competency often revolves around cross-selling you more stuff with a healthy dose of buzzwords.

For more see: If being customer first is so important, why don't companies do it?