Global IT spending is expected to reach $5.06 trillion by 2024, representing an 8% increase from 2023, according to the latest forecast from Gartner. This is up from the previous quarter’s forecast of 6.8% growth and will contribute to global IT spending surpassing $8 trillion by the end of the decade.

“With spending on IT services on track to grow 9.7% to $1.52 trillion, this category is on track to become the largest market Gartner tracks,” said John-David Lovelock, VP Analyst at Gartner. “Enterprises are rapidly falling behind IT services companies in attracting talent with critical IT skillsets. This creates a need for greater consulting spending than internal staff. We are in a breakout year for this trend, with consulting spending exceeding internal staffing for the first time.”

Investment in Data Center Systems Reflects Shift to GenAI Spending

Data Center System spending is expected to witness significant growth from 2023 (4%) to 2024 (10%), largely due to planned growth with GenAI. (See Table 1)

“We are seeing a cycle of storytelling, planning and execution when it comes to GenAI. In 2023, enterprises are telling their GenAI stories, and by 2024, we see most of them planning for final deployment in 2025,” Lovelock said. “Technology vendors need to be ahead of the curve in this cycle and are now in the execution phase. They are embedding GenAI capabilities into existing products and services, as well as use cases identified by their enterprise customers.”

“There is also a huge amount of spending by service providers in markets that support large-scale GenAI projects, such as servers and semiconductors,” Lovelock said. “By 2024, AI servers will account for nearly 60% of total hyperscale server spending.”

Investment in Data Center Systems Reflects Shift to GenAI Spending.

Read more: EDUTO’s AI Library

Devices predicted to become mainstream again in 2024

The average lifespan of mobile phones is decreasing, with both consumers and businesses replacing their phones earlier. This shift is driving mobile spending to $688 billion in 2024, up from a low of $664 billion in 2023, representing a growth rate of 3.6%. Integrating GenAI capabilities into high-end and entry-level phones is sustaining, rather than accelerating, this shift.

Gartner's IT spending forecast methodology is based largely on rigorous analysis of sales from more than a thousand vendors across the full range of IT products and services. Gartner uses primary research techniques, combined with secondary research sources, to build a comprehensive database of market-sizing data that underpins the forecast.

Gartner's quarterly IT spending forecasts provide a unique view of IT services spending across hardware, software, IT services and telecommunications segments. These reports help Gartner clients understand market opportunities and challenges.

Effective AI Application Strategy for Vietnamese Enterprises

Vietnam's Information Technology (IT) industry is making spectacular progress, attracting attention and strong investment from the world's leading technology corporations such as Google, Microsoft and NVIDIA. What should Vietnamese enterprises do to build an effective AI application strategy? Recognizing the great potential of the Internet, Vietnam is focusing on investing in technologies based on this platform to enhance the competitiveness of key sectors such as tourism, education, finance, entertainment, urban planning and agriculture.

Strong investment in IT and artificial intelligence (AI) is expected to turn Vietnam into a dynamic and innovative technology hub in the region and the world. This is a great opportunity for Vietnamese businesses to access the most advanced technologies, improve their competitiveness and reach out to the international market.

At the event “2nd Shidler Global Leadership Summit” organized by the University of Hawaii and Van Lang University, Ms. Rosy Giang Tran, VP – Strategy & Innovation at Kyanon Digital was honored to join top technology leaders to share and discuss effective AI application strategies for Vietnamese businesses.

Read more: 5 IT Outsourcing trends businesses need to pay special attention to

Vietnam's IT industry breaks through, attracting global technology "giants"

According to artificial intelligence (AI) experts, AI can play a key role in supporting businesses in many important functions, from market research, improving operational efficiency to improving relationships with customers, partners and employees. Effective application of AI has the potential to open a new productivity frontier, promoting strong growth for the Vietnamese economy.

A typical example is the recent appearance of a series of global technology giants in Vietnam. Google officially opened its first data center in Vietnam in 2021, followed by Microsoft with a commitment to invest 2 billion USD in national digital transformation projects. NVIDIA is also very determined to continuously cooperate with Vietnamese universities and businesses to train high-quality IT human resources.

The arrival of technology giants not only brings abundant investment capital but also contributes to promoting innovation, technology transfer and improving the quality of Vietnamese IT human resources. Thanks to that, Vietnam is gradually affirming its position as an attractive destination for international investors in the IT sector.

Are Vietnamese businesses ready for the AI ​​era?

“The world is entering the era of artificial intelligence (AI) and Vietnam is no exception.” This is the affirmation of many experts in the technology field when assessing the potential and great influence of AI on the socio-economic development of the country.

However, besides the great opportunities, the AI ​​era also poses many challenges for Vietnamese businesses. Are they ready for the fierce race in this new era?

In reality, the readiness of Vietnamese enterprises for AI is still limited. A recent survey by the Vietnam Software Association (VinaSoft) showed that only 20% of enterprises are using AI in their business operations.

Read more: Can IT outsourcing industry “riding the wave” of AI?

Challenges of Vietnam's IT industry when applying AI technology

AI is creating a global explosive revolution, opening the door to countless opportunities in all industries. The Vietnamese IT industry is no exception to this trend with great potential to apply AI in many fields. However, in addition to the promises, the application of AI also poses significant challenges that the Vietnamese IT industry needs to solve to fully exploit the potential of this advanced technology. Ms. Rosy Giang Tran commented that the Vietnamese market is currently facing 3 relatively large challenges in the list of challenges when applying AI technology to develop and build solutions.

Vietnamese: Challenge or Opportunity?

Language differences have always been a barrier to accessing and applying technology. Vietnamese, with its own characteristics, poses challenges to developing and training effective AI models. However, this is also an opportunity for Vietnamese IT enterprises to affirm their position, by pioneering the use of this language challenge to create AI solutions suitable for the domestic market and reaching out to the region.

Data and Security: Core Foundation

AI is data-driven, and the lack of quality, complete, and secure data sources is a major challenge for Vietnam’s IT industry. Collecting, storing, and using data raises many security and privacy issues, requiring legal perfection and effective technical solutions.

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Legal Framework: Not Yet Catching Up With Trends

The legal system related to AI in Vietnam is still new and incomplete, leading to many obstacles in the deployment and application of AI, especially in sensitive areas such as healthcare and banking and finance. The lack of a clear legal framework and specific guidelines makes IT businesses hesitant to develop and apply AI, while also posing the risk of violating the law and ethics.

What should Vietnam do to increase its competitive position in the AI ​​era?

AI is gradually becoming a key factor in the global technology race, and Vietnam is also in this race. So, what is Vietnam's position in the regional and international AI picture? And what lessons can we learn from advanced countries to make a breakthrough in this field?

Vietnam possesses many potential advantages for the development of AI. The STEM (Science, Technology, Engineering, Mathematics) education platform is increasingly focused on, creating a young, dynamic and eager-to-learn workforce. The vibrant startup community, along with the government's support policies, is promoting innovation in the technology sector. In addition, labor costs in Vietnam are also considered quite competitive compared to other countries in the region.

To make a breakthrough in the field of AI, Vietnam needs to learn from the experiences of advanced countries. Some typical lessons include:

• Investing heavily in AI research and development: Countries like the US, China, and Singapore spend huge budgets on AI research, attract top scientists, and create an open academic environment.
• Building a diverse AI ecosystem: Advanced countries possess a well-developed AI ecosystem with the participation of many stakeholders such as government, businesses, universities, research institutes and the startup community.
• Developing high-quality human resources: Specialized AI training programs are focused on, providing systematic training for AI engineers, researchers and experts.
• Perfecting the legal framework: A clear, transparent legal system that is consistent with the development trend of AI is an important foundation for the effective and safe application of AI.

Read more: Some EDUTO’s Project

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