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RingCentral 2020 Predictions: The CIO's Guide for Continued Innovation in the New Year

VMblog Predictions 2020 

Industry executives and experts share their predictions for 2020.  Read them in this 12th annual VMblog.com series exclusive.

By Trevor Schulze, CIO at RingCentral

The CIO's Guide for Continued Innovation in the New Year

Today, CIOs are responsible for defining and leading both innovation and operational strategies for their organizations. The expectations are to have a positive impact on both the bottom line and top line. To do this effectively, they must strike a balance between driving current technological capabilities while expanding their operational responsibilities. In addition to their own ever-evolving role, the skill sets required to be successful are also rapidly changing. So, as we get closer to the new year, what are some of the key trends CIOs can expect to see? Below are my top predictions of what's coming and how best the modern enterprise can be prepared to take advantage of what's coming next: 

Digital leaders will grapple with accelerating innovation vs potential looming recession 

Without a doubt, the current pace of new market digital innovations and their rate of adoption is at an all-time high. IDC predicts that by 2023, greater than half of all IT spending will go towards "digital transformation" and other innovations. In 2018, that spending only made up 27% of a company's IT budget. Counter to that trend, there's a growing market sentiment that the overall rate of IT spend will slow down due to CEO's hedging on a potential US recession. As organizations push to spend more on digital transformation and innovation, IT leaders will need to look for ways to create even more efficiencies with their existing budgets to offset this growth. 

Mega-cloud consolidation

IDC predicts that by 2023 the top five public cloud platforms will likely consolidate at least 75% of IaaS and PaaS market share, while the top 10 pure-play SaaS vendors will generate more revenue from expanding their PaaS services. As the market consolidates around a small number of mega-platforms, organizations will need to craft multi-cloud strategies to avoid vendor lock-in.

Open platforms will rule and win

They scale faster with a shared revenue ecosystem available for any developer. By 2023, 60% of the Global 1000 will have a digital developer ecosystem with thousands of developers. Half of these enterprises will drive at least 20% of digital revenue through their digital ecosystem/platform. Most every viable enterprise is going to need to become a platform, with a team of third-party developers around them.

Shadow AI

According to IDC, by 2025, at least 90% of new enterprise apps will embed AI, making apps "smarter" and "more dynamic". In addition, IDC predicts that by 2024, more than 50% of user interface interactions will use AI-enabled computer vision, speech, natural language processing (NLP), and AR/VR (augmented reality/virtual reality). As AI continues to become more omnipresent, we need to be prepared for functional teams using AI in ways that could prove to be problematic for companies. We need to ask, who are building these applications? Are they governed by the company as suitable and ethical? Will we require to expose this in 10-k going forward? There are more questions than answers right now.

Learning on the job will never stop

The current skills gap is an information gap. The problem is not that workers are unskilled; it's that workers don't know what skills employers need and they can't adapt quickly enough. Technology is already disrupting existing jobs and creating new jobs that never existed before. In fact, the top 10 in-demand jobs in 2010 didn't even exist in 2004. Change is happening so rapidly that according to a World Economic Forum report 65 percent of children entering primary school today will ultimately end up working in completely new job types that aren't on our radar yet. In the future, technology will enable education and training to respond dynamically to real-time labor market changes. With widespread access to training and courses online and available on-demand, workers can be informed of skill updates while they work, and will regularly top up their education with the skills they need to remain relevant in the workforce.

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About the Author

Trevor Schulze, CIO at RingCentral

Trevor Schulze 

As RingCentral's Chief Information Officer, Trevor Schulze provides strategic leadership to the company's global IT team in delivering a comprehensive portfolio of cloud-first, leading-edge technology services and solutions. Prior to joining RingCentral in 2018, Schulze served as Global CIO of Micron Technology, where he oversaw an international team charged with delivering business capabilities that sped product time-to-market, improved customer engagement, optimized supply chain operations, and maximized manufacturing capital utilization in 18 countries worldwide. Previously, Schulze was Corporate Vice President IT, Enterprise Applications at Broadcom Corporation, and Corporate Vice President IT at Advanced Micro Devices.

Published Monday, December 23, 2019 7:35 AM by David Marshall
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