In fact, according to IDC, the IT sector in Latin America will grow by 4.8% by 2020, mainly driven by investments in cloud, AI, Blockchain, security, hardware and services. But are Latin American companies prepared for the era of "digital supremacy"?
Check out the five trends that, according to IBM, will shape our lives and help drive growth in the region:
1) The cloud: the foundation of the digital economy
According to IDC, by 2022, more than half of companies in Latin America will integrate cloud management, across public and private clouds, through the implementation of hybrid or multi-unified technologies, tools and management processes.
“Latin American companies will continue their path to hybrid and multi-cloud cloud, particularly as public cloud services in hybrid environments have demonstrated the ability to support the security, data protection and transparency requirements that companies in our region demand. and demand”, explains Natalia de Greiff, vice president of Cloud & Cognitive at IBM Latin America.
While hybrid cloud computing provides maximum flexibility, it only works if it's based on open standards, so software developers can build an application once and run it anywhere. That's one of the reasons IBM this year completed its acquisition of Red Hat, a leading provider of open standards hybrid cloud technologies.
2) Developers: business innovation axis
According to IDC, by 2025, nearly 50% of companies in Latin America will be software producers and more than 90% of new applications will be in the cloud. Furthermore, according to the IDB, by 2025 the sector will employ more than 1.2 million programmers in the region.
“The role of the technology developer is increasingly present in all companies, regardless of size or industry. Over the next decade, developers will be increasingly involved in business decisions, not just at the technology level, but also innovating, using their expertise in technologies such as cloud, AI and applied software to solve the biggest issues affecting our region.” analyzes Carla Coelho, vice president of Digital at IBM Latin America.
Open source software constitutes more than half of the business code bases analyzed in 13 of the 17 sectors of the economy and will continue to increase as the rapid increase in the use of new technologies is responsible for a growing transformation in the market and in the economy itself.
3) Use of data: decision factor to adopt AI
According to the Institute for Business Value study, 81% of business leaders actively support companies that are transparent about how they use their data and avoid doing business with companies that don't, a trend that will grow exponentially over the next decade.
"More and more companies, consumers and citizens are becoming aware of how their data is used and who controls it. It is essential that all companies, both technology, governments, private companies and the ecosystem as a whole work together so that the premise that the data belongs to customers or consumers is always met”, emphasizes Fabio Rua, Government & Regulatory Affairs Executive of IBM Latin America.
Data and AI together are both the opportunity and the problem of today. IBM has created and follows guidelines on responsible data management and stewardship of new technologies, and has invited other companies to make similar commitments, something that will be further strengthened over the next decade.
4) Transparent industries: blockchain at the service of humanity
IDC expects blockchain spending in Latin America to grow from approximately US$50 million in 2019 to US$200 million in 2023, with use cases in finance, healthcare, product manufacturing, retail and supply chain, among others.
“All industries can benefit from blockchain technology, because all sectors and ecosystems need to have transparency and immutability about any changes made to their environments. Blockchain will continue to advance to transform the way of producing or distributing food or tracking medicines, providing greater confidence in the end consumer. Its application in the next decade will have no limits", emphasizes Marcelo Spaziani – VP of sales at IBM Latin America. Technology does not exist on its own, especially innovations that can transform the world on a scale that is sometimes difficult to contemplate. Blockchain is one such innovative technology and, like artificial intelligence and quantum computing, it will be a technology that will help us bring transparency to society as a whole in the next decade.
5) Edge Computing: from theory to practice
According to IDC, by 2023, more than 30% of the new corporate IT infrastructure deployed in Latin America will be at the Edge.
“The next decade will see an increase in high-end computing, driven by the implementation of 5G technology in the telecommunications sector. Compact and efficient servers located at the edges of the network can put processing power where it can be used best”, says Ana Zamper, vice president of Systems for IBM Latin America.
Regardless of where the data is generated: whether from sensors in a factory, from consumers shopping in a retail environment, or mobile devices connected to a company's business network, edge computing will be a transformative technology. And in this era of Edge Computing, quantum technology will be the revolution that will mark the next decade and of which we will see more in the coming years.
But, without a doubt, the skills shortage is the challenge we will need to face to make it possible for these 5 trends to be successful in Latin America.
"The path to digital reinvention undoubtedly passes through the development of the next generation of professionals, who will make us take Latin America to the next level of innovation", comments Ana Paula Assis, president of IBM Latin America. "That's why, at IBM, we continue and will remain committed to the development of educational ecosystems, in which private companies, public organizations, schools and universities work together for the social and economic development of our region, with initiatives such as P-Tech, Skills Academy and Behind The Code Marathon, and joint programs with women in STEM, Junior Achievemement and Laboratory", concludes the executive.
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