Enterprise Technology Predictions 2022

Source: David Vellante, Wikibon Research, Breaking Analysis: Enterprise Technology Predictions 2022, January 22nd, 2022

Prediction #1: Tech Spending Will Increase 8% in 2022

• Upward momentum from September 

• SMBs play catch up

• Energy/utilities, retail & services above average spending momentum

• Private 225 notably higher than average

Prediction #2: Security will Remain the #1 Priority to be Addressed in 2022

• Mid-sized companies & governments strongest momentum

• Uptick in use of managed security services - MSSPs

• M&A/IPOs - Snyk, Aqua, AWN, Lacework, Netskope, Illumio

• Digital supply chain hacks increase drive to DevSecOps Auth0 & SailPoint big winners

• Endpoint refresh cycle completes. Trifacta of CrowdStrike, SentinelOne & Tanium hits

Prediction #3: In 2022 Organizations Rethink Remote Work

• Hybrid overtakes fully remote as the dominant work model

• ~1/3rd of workforce will be back in the office

• 29% permanently remote -- down from 45% today and 34% expectation from last year

• 56% of CxO cite that worker productivity continued to improve in Q4 2021 and will carry though to 2022

Prediction #4: Supply Chain Issues Will Impact Hardware Spending Patterns in 2022

• Laptop & PC demand remains above pre-COIVID norms - expect 2bl digit growth in 2022

• 30% of customers will replace security appliances with cloud services

• 41% (Compute) & 34% (Storage) plan to replace hardware w/ cloud services

Prediction #5: Hyperscale IaaS & PaaS Revenue Surpasses $167B in 2022

2022 Predictions:

• Big 4 = $167B in 2022

• ~38 $ Growth in 2022

• AWS will approach a $100B run rate business in 2022

• Azure IaaS will exceed 66% of AWS total business

• Google surpass Alibaba for the first time

Prediction #6: Supercloud Becomes a Thing

Supercloud, from a buyer’s perspective is about business transformation (aka digital). Building value on top of hyperscale infrastructure and building a new type of business in the cloud and across cloud.

• 1) The technology is evolving where you’re seeing services truly integrate cross-cloud services

• 2) Digital transformation where a new innovation curve is developing and it’s not just about making your IT better it’s about SaaS-ifying and automating your entire company workflows. So Supercloud is not just a vendor thing. To us it’s the evolution of “every company will be a SaaS company” to every company will deliver capabilities that can be consumed as cloud services – across clouds…hence superclouds.

Prediction #7: Data Mesh Gains Momentum but is Narrowly Applied in 2022

• Impetus for many is legacy Hadoop inertia

• Desired shift toward domain-centric ownership of data

• Organizational alignment & reaching consensus remains the biggest headwind for data mesh implementations

• Data teams will begin to be organized abound data product/service builders and embedded into lines of business

• Challenges of achieving self-service and federated computational governance will slow adoption and narrow the scope of data mesh implementations

• The most common starting point for data mesh will be evolving data lakes on AWS

Prediction #8: Databricks & Snowflake Face off in M&A

Possible M&A Targets:

• Semantic layer

• ML/AI

• Data clean room

• Data prep/cleansing

• Privacy/security/governance

Prediction #9: APM & Observability – Ripe for Consolidation & Going Cloud Native

• New Entrants: Observe, Honeycomb, ChaosSearch

Prediction #10: Hybrid Events Are the New Category

2022 Predictions

• Pure play gives way to hybrid

• Physical defines the experience - VIP events with exclusivity and FOMO

• Virtual evolves to metaverse immersion over the mid-term

• More regional flavor - roadshows and intimate meetings