A powerful transformation driving profound change across industries and reshaping our digital society is underway through the convergence of information and communications technology (ICT).

The blend of connectivity and information technology creates unprecedented added value, from autonomous vehicles and smart factories to interconnected urban ecosystems and advanced medical diagnostics.

Such new solutions and the resultant market opportunities are changing industries and the places we live and work. Solution providers will also have to change. The complexity involved in developing and delivering such advanced applications requires interdisciplinary business ecosystems and new standards in cross-organizational collaboration.

Industry convergence, technology, and supply-side trends

The notion of “best effort” is diminishing as communication networks and information technology offer guaranteed quality of service and AI-native air interfaces. These integrated technologies will lay the groundwork for future digitalization, enabling a universe of new application possibilities.

But integration goes beyond technologies. Technology companies are pushing into telecommunications with cloud-based SDWAN solutions while telecoms develop their own software, mirroring trends outside ICT industries.

The emerging cross-sector competition in B2B markets will impact ICT providers, including software firms, which must adapt to structural changes while tackling the existing while balancing growth and profitability.

New demands and expanding market horizons

Although the peak in growth rates in the information technology sector reached maturity in the early 2020s, vibrant opportunities remain, and some segments will continue to outperform the market average.

Vertical industries and the public sector are opening up new sales markets with increasing demands for integrated ICT solutions in areas such as Industry 4.0, eHealth, and smart cities. Technological progress, catalyzed by emerging technologies like artificial intelligence and machine learning, continues to spur innovation.

Newly enabling technologies promise vast advancements. Network technology, computational progress, and human-machine interfacing will create entirely new application areas for software components.

Embarking on this transformative journey requires companies to chart their own path to harness the potential that is out there.

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