Business-Funded Technology is on the Rise

April 29, 2014
in Category: Business, Science and Technology
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Business-Funded Technology is on the Rise

Business-Funded Technology is on the Rise

In the Tpast, the majority of major technological steps forward were being made by forward-thinking individuals working in private settings. Only once the technology became main stream were major corporations being founded around the advances. oday, businesses and large corporations are recognizing just what they stand to gain by funding technology breakthroughs rather than competing with them once they have a market presence. As a result of this shift in thinking, technology that is being specifically funded by business interests is seeing a steep rise. The latest estimates indicate that business-funded technology will reach a record-high $330 billion by the year 2017. The report that was released by the IDC is spelling out figures that will account for 55 percent of all spending that is directly related to technology.

The study collected its data by examining 15 vertical industries and 12 separate buying segments of the industries under consideration. In terms of the portion of business that will constitute the largest area of spending, industry-specific operations are taking the largest portion of the pie. Marketing is the functional area of these businesses that is growing at the most rapid rates. By 2017, the spending that goes specifically towards marketing technology is expected to reach $26 billion. The communications and media industry are making big pushes to soak up business funding as time moves forward. Over the length of the forecast period, retail is also expected to show considerable vertical gains, growing at 11.2 percent over five years.

The lightning pace at which technology is growing is associated with business models that the IDC is labeling as the “four pillars.” These foundations for businesses of the future will include analytics, mobile, social, and cloud abilities. In the past, many analyst expected that enterprise IT would be growing at a much more rapid pace. However, this sector is set to expand at a mere 1.8 percent over the five-year period ahead. The only enterprise IT sector predicted to be growing faster than total technology pending in other areas is that which is associated with the healthcare industry.

This study has also specifically quantified spending for individual businesses based on practices such as accounting, finance and billing, customer service, engineering, and human resources. Additional practices that came under consideration during the course of the study included architecture and research, sales, security, and chain of supply. The study also reveals a shift in buying power for most businesses. Buying power that once resided primarily with Chief Intelligence Officers is now being shifted to chief Marketing Officers instead.