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IABM: Technology spending prioritising Opex over Capex

IABM found that efficiency remains the most important driver of product purchase, followed by interoperability and agility

IABM members have shifted their priorities when it comes to technology from Capex (capital expenditure) to Opex (operating expenditure).

In its latest Buying Trends report, the IABM found that efficiency remains the most important driver of product purchase, followed by interoperability and agility. According to the report, changing priorities have translated into a shift in technology spending that prioritises Opex over Capex.

The survey results show that technology users are focusing on solutions that make them more efficient, agile and interoperable which is leading them to spend more money on generic IT technology and increasingly investing in in-house development to suit their specific needs.

The shift in technology spending is prompting end-users to adopt a variety of emerging technologies to streamline their supply-chains for the multi-platform world, according to the IABM. The report found that while IP and Cloud adoption are already strong, technologies such as AI remain emerging trends. However, blockchain adoption remains at a very early stage with an adoption rate of only 3 per cent. VR spending remains subdued and is unlikely to significantly increase in the next six months, the IABM said.

Multi-platform content delivery remains the most important priority for technology users, followed by 4K/UHD. According to the IABM, the rise of 4K/UHD to the second most important priority is consistent with the general upward trend in 4K/UHD adoption and spending in the market and the increased investment in premium content by new media operators.

Lorenzo Zanni, IABM head of insight and analysis, said: “Although technology investment has shifted to new priorities, technology has never been so key to driving business success in the multi-platform world. Buyers’ continued adoption of new technologies requires suppliers to move to new business models centred on the flexible provision of software. With change, the future is bright as greater investment is poured into content.”

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