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Gartner: six trends to impact tech providers through to 2025

Gartner’s Tech Providers 2025 Special Report identifies six trends set to impact technology providers through to 2025

|Nov 4|magazine9 min read

In order to adapt and thrive, Gartner has identified in its latest report -Tech Providers 2025 Special Report - six trends that will impact tech providers through to 2025, that organisations will need to tackle in order to avoid a struggle to survive.

“Impact from six forces are already being felt by providers today, but over the next five years Gartner expects these forces to accelerate trends and pose problems that will demand providers create new models, products and relationships to survive and ultimately succeed,” commented Rajesh Kandaswamy, research vice president at Gartner.

  1. Geopolitics and world events

Identified as the most significant geopolitical risks when it comes to the impact of global markets by Gartner, the company states that increasing global trade tensions, alongside the battles between the US and China will be significant influencers when it comes to product strategies, customer acquisition, business performance management and corporate development.

“TSPs expecting to approach global markets in 2025 as they do in 2020 will be displaced by competition that incorporates these new realities into their business and operating models,” comments Garnter, who also predicts that by 2025, loneliness, collaboration and communication obstacles will be the top workplace struggle for 50% of remote workers as a result of COVID-19. 

  1. Evolving customer demand and expectations

Another trend which technology providers must be adaptable to is changing buyers and buying conditions as a result of transformed organisations and technology buyers.

“Business-driven and line of business (LOB)-resident technology buyers will drive more purchases, hastening moves to cloud products and platforms, investing more in automation and online interactions in order to optimize business processes and compete more effectively,” commented Gartner.

Additionally Garnter predicts that those who can’t provide customers with a clear and upfront picture of their solution's value will fail to grow or renew their customers.

  1. Emerging technologies and trends

While emerging technologies enable technology providers to enter into new markets, strengthen their products and services, become more efficient and battle competition, the technologies come with both opportunities and challenges.

Gartner identifies that “the right levels of investments in the right emerging technologies at the right time are crucial for creating and capturing the most value from them.”

  1. Changing industry dynamics

In the next five years Gartner predicts that changing industry dynamics will force providers to “adjust their strategies, routes to market, and their willingness to simultaneously collaborate and compete with other providers. Changing industry dynamics and rapid development cycles make the dedicated pursuit of competitive intelligence an absolute must for technology providers.”

Gartner highlights that technology providers should be prepared for new and different types of competitors, and begin to consider new ways of staying competitive.

  1. New and old entrant challenges

“Changing industry dynamics and rapid development cycles make the dedicated pursuit of competitive intelligence an absolute must for technology providers,” commented Garnter.

However, the company also reported that having a list of known competitors is no longer enough, technology providers must also be mindful of new entrants. Some industries may even see providers in adjacent markets move into new markets to grow their revenue and mind share.

Business Models

“Through 2025, technological advancements, availability of capital and shorter development cycles will provide opportunities for innovative vendors leveraging disruptive business models,” commented Gartner, who predicts that by 2025 fast growing, major technology providers will generate 50% of revenue from generative or platform business models that leverage cloud computing solutions.

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