Customer buying behavior is changing. Sales cycles are lengthening, and budgets are tight. Now, more than ever, you need to quickly and effectively generate leads to meet your business goals.

Events are one of the shortest and most effective lead generation paths. Here are five reasons events partnerships should be part of your lead generation strategy.

  1. Events Raise Your Profile

Your brand is the single most important investment you can make in your business.

  • Steve Forbes, editor-in-chief, Forbes

When your target audience is looking to purchase tech tools, you need to ensure your business is front of mind. Customers now source their own information before approaching a company to make purchasing decisions. Ensuring your business is part of the conversation around the markets you serve is crucial to making an ICT buyers shortlist.

Events are a good way to introduce and/or position your business to new and existing clients. An event is an opportunity to engage with key decision makers and influencers and demonstrate your expertise in the context of the market. Being part of an industry event gives you a chance to shine as a thought leader and display your authority to your target audience.

  1. Thought Leadership Influences Buying

It’s not enough to just put out information on your products and services. Tech buyers have rising expectations about the quality of the information they receive. In IDC’s 2023 B2B Tech Survey, vendors ranked thought leadership as one of the top 3 buying influencers. Foundry’s 2023 Customer Engagement Survey found that 71% of IT decision makers may get a negative impression if a vendor does not supply valuable educational content.

Thought leadership is about demonstrating expertise in your market. You should educate prospective buyers not just on the benefits of your products and services but also about the market. This provides value to buyers and increases your authority in your markets.

Industry events enable you to be front and center with your target buyers. An event grants you space to demonstrate your thought leadership to an engaged audience. It allows you to follow up with audience members in person, giving them a chance to ask you questions.

Explore the key points to consider in the IDC eBook,

Empowering Lead Generation: The Quickest and Most Effective Path to Building a Strong Pipeline

  1. Get in Front of Key IT Decision Makers

IDC’s B2B Tech Buyer Survey revealed that B2B tech buyers expect to buy more through ecommerce and deal less with salespeople over the next three years.

With fewer face-to-face engagements occurring, you need to take advantage of any opportunity to get directly in front of decision makers and influencers. Such exposure allows you to personally engage key personnel on the benefits your business can provide during a digital journey. This omni-channel approach gives you a chance to differentiate yourself from your competitors and build relationships.

  1. Obtain Customer Insights

People attend events to network with peers and gain insights into the markets in which they operate. They want to understand the trends and drivers that are impacting them. They want to benchmark themselves against the market and competitors.

Directly engaging with decision makers at events offers you a window into their thinking and a view of the factors influencing their buying decisions. These insights and knowledge will help you further define the needs and goals of your target audience and help you position your business in alignment with their priorities.

  1. Measurable ROI

ROI is a key metric for all your marketing and engagement strategies. It is often said that B2B marketing does not push for the immediate sell but is aimed at positioning your business at the top of mind for when the buyer is ready to purchase. As such, ROI can be a tricky topic for marketers.

Getting budget for activities that do not directly link to ROI can be a struggle. Event partnerships give you the ability to demonstrate measurable return. They enable you to link events to opportunities obtained through networking and meetings with event attendees.

More Important Than Ever: Events Partnerships

To summarize: Events offer you space to demonstrate your thought leadership directly to key decision makers. They provide you opportunities to network, learn market information, and raise your brand awareness by talking directly to customers and prospects. Such contacts can give you insight into customer needs and goals, enabling you to better align your business. And events allow you to show ROI through opportunities gained through these activities.

Explore how IDC | Foundry events can help you get in front of key IT decision makers and build a strong, effective lead generation pipeline that converts. Download the 2025 events portfolio and contact us today.

Today’s business leaders have a new area of priority: environmental, social, and governance (ESG), which is a hot topic from boardroom to blog page. In the recent IDC Worldwide CEO Survey conducted in February 2024, 42% of European CEOs stated that meeting ESG goals is among their top 3 business priorities and requirements, with social sustainability representing a pivotal point.

Moreover, CEOs think that the changing ESG targets and regulations are among the top three external factors impacting organizations over the next 12 months.

However, we haave noted a sharper focus on the environmental and governance aspects than on the social side. Even when the social side is the subject of focus, the initiatives considered most often typically relate to gender diversity, belief respect, cultural integration, and similar areas.

One important aspect that has been and is still too often neglected is the accessibility of organizations’ digital workspaces and workplaces.

Addressing the vast aspect of digital accessibility is complex.

The Future of Work Must Be All-Inclusive

We define digital accessibility as digital technologies and services being accessible to everyone, including people with physical impairments, regardless of whether they are related to motor function, vision, hearing, speech or neurodivergence.

Until now, the breadth and complexity of digital accessibility has slowed down development in areas such as regulation, as well as an understanding of how to include in the workplace people with disabilities. Today there is a sharper focus on levelling the ground in the job market, vendors are specializing in transformation, certification, and training or taking the first steps in implementing them in their products. Some were even created with this purpose in mind — i.e., funded to assist with digital accessibility mandates and requirements.

Digital accessibility evaluates the accessibility of technologies, but technologies are also the key solution for organizations to address their digital accessibility implementation gaps. Advances in technologies, especially in generative AI, will be beneficial in further integrating digital accessibility into internal and external process, products, and services, supporting mandates on digital accessibility for consumers and the workforce – as the workforce is the organization’s internal technology “consumer”.

A plethora of hardware and software has been delivered to assist organizations in closing the digital accessibility gap, but there are even more technologies that have not been designed for this purpose, but which in everyday use will contribute to closing the digital accessibility gap.  The latter includes AI and generative AI, which were designed as general-purpose technologies, but which can support closing the dig accessibility gap across numerous use cases.

The figure below showcases technologies and initiatives that could be implemented for digital accessibility across IDC’s three main Future of Work pillars.

Within the augmentation pillar, technologies support people with different disabilities, with the clear objective of augmenting them. Gesture-to-voice solutions help people with phonological difficulties to integrate in the workplace and workspace, as the technology facilitates communication with people not versed in sign language.

Technologies in the space pillar have the objective of supporting people with impairments in accessing the organization’s resources and other daily activities and tasks. eSignature, for example, helps people with impaired physical dexterity or loss of touch (hypoesthesia) to sign documents digitally, removing the need for pens or physical documents.

Within the culture pillar, technology plays a side role, but numerous initiatives must be implemented by organizations to create a more digitally inclusive environment. For example, with trainings and firsthand experiences or community recruitment for testing and allies.

5 Recommendations to Improve Digital Accessibility

Guidance in this area is clearly needed, especially as the European Accessibility Act will be enforced across the entire European Union in 2025. Here is our short to-do list for initiating or improving your organization’s approach to digital accessibility:

  1. Assess and audit internal and external products, tools, and services for accessibility and remediate to ensure everyone is onboard and no one is left behind.
  2. Create a solid community to help the organization meet accessibility requirements through firsthand experience.
  3. Educate your internal and external communities on accessibility and DEI with general mandatory training for the entire workforce and tailored learning paths that are function- or role-specific.
  4. Keep up with changing technologies and regulatory requirements, ensuring full local and international compliance, and make certain that worker and customer experience meet generally accepted standards.
  5. Shift to an accessible-by-design mindset, ensuring that apps, platforms, and software developed for internal use — as well as products, services, customer experience — are accessible-by-design.

Digital accessibility is a goal we are approaching incrementally, but if you are interested and want more information, you can check out our report “Digital Accessibility in Europe in a Nutshell” or reach out to the IDC Future of Work team and stay tuned for future details.

Erica Spinoni - Senior Research Analyst, European Research - IDC

Erica Spinoni is a senior research analyst for the European Research Team. Based in Milan, Spinoni supports IDC’s European Digital Business Strategies and IDC’s European Future of Work practices. In her role she advises ICT players on European digital business and future of work market trends, supporting them in their planning, go-to-market and sales cycles with market research, custom projects, as well as honoraria.

On June 6th, 2024, we held an award dinner at a prestigious location in central Copenhagen and announced the CIO of the Year in Denmark.

The job of a Chief Information Officer (CIO) is often a challenging one. In some organizations, the job is mostly centered around helpdesk, running Microsoft Office packages, and being a steward of antiquated systems. Sarcastic observers even renamed the role as “Careers Is Over” to reflect the legacy aspect of the job. However, a CIO also has an expanded role as organizations transform digitally with a much wider potential influence and career upside. This was well illustrated when examining the five shortlisted CIOs.

In each of the organizations of the five shortlisted CIOs, we interviewed the CEO, the CFO, and the candidate CIO themself in separate, in-depth interviews and these interviews yielded multiple interesting lessons learned.

Lesson 1: The modern, high-impact CIO reports to the CEO and is part of the executive leadership team.

Gone are the days of IT being a cost center and reporting to the CFO. All five organizations were transforming traditional businesses into digital businesses and viewed the CIO as a key enabler of overall strategic change process. These modern CIOs facilitated change by setting up ‘digital boards’ to help prioritize digital initiatives across the entire business and to ensure buy-in from non-IT stakeholders.

We also saw many examples of the CIO enabling change through educational activities involving other executive leaders, to provide them with a better understanding of what technology can do for core business activities.

Lesson 2: The successful CIO often has a dual profile that balances technical IT foundation with business acumen.

The traditional CIO often had a technical background and aimed for traditional IT goals such as system availability and reliability, issue resolution time, total IT cost, etc. but were unable to effectively contribute to digitalization of business processes.

Newer, more business savvy, CIOs have since appeared with business backgrounds, but were often not able to properly understand and control major IT initiatives due to the lack of technical understanding. Many of today’s successful CIOs have a dual background with a strong technical foundation with a business overlay (e.g. shorter business degree) or vice versa.

Lesson 3: Successful CIOs balance pragmatism with boldness

The organizations we spoke to clearly aimed to purchase standard software where possible, cloud / Software-as-a-Service solutions where possible, and to adopt out-of-the-box processes where possible. We found no desire to reinvent the wheel. However, in many cases, the organizations took a bold approach where it made business sense.

They insourced systems and application development of differentiating nature, where many iterative changes were expected. Other critical areas, such as cyber security and data management, were also managed with strong in-house expertise.

Finally, new solution areas using emerging technologies, such as artificial intelligence and machine learning, were developed in-house and used actively to brand the organization as innovative.

Lesson 4: Instead of asking for money, new CIOs save their way to resources and credibility.

New CIOs are often met with high IT ambitions coupled with flat IT budgets at best – a difficult situation indeed. Instead of asking for new budgets, the new CIOs typically identified substantial IT savings and spent their first six to 12 months carving out savings, streamlining and consolidating contracts and employees. They then reinvested the resulting savings into new digital initiatives without having to ask the executive committee for an additional budget. In other words, they provided new services and capabilities within the existing IT budget and gained respect and reputation this way.

As more organizations use more and more technology the role of the CIO has expanded with it. CIOs have to combine both technical knowledge with business acumen to help drive their organization’s digital and IT ambitions.

 

IDC’s CIO of the Year 2024 Award, in Denmark

The five shortlisted organizations of the award represented diverse sectors, including insurance (TopDanmark), public sector (Danish Courts Agency), manufacturing (Finland-based consumer brand conglomerate Fiskars), membership organization (Danish Industry), and professional services (Ramboll).

Martin Wood, the CIO of Danish Courts Agency was awarded the title of CIO of the Year in Denmark. Martin heads up an IT function in a public sector agency and has managed to deliver a string of highly visible digital initiatives that are turning cumbersome legal processes digital, automated, and accessible. All projects were delivered via in-house resources (as opposed to the traditional public sector RFPs), within budget and within the allocated time. A worthy winner indeed.

If you want to know more about the CIO of the Year award, please visit the CIO event site (site in Danish).

We have an eBook which is designed to provide CIOs and digital business leaders with a comprehensive understanding of the critical shifts, strategic imperatives, and emerging opportunities that will shape the digital landscape over the next five years, download here.

Explore more of our coverage:

Bo Lykkegaard - Associate VP for Software Research Europe - IDC

Bo Lykkegaard is associate vice president for the enterprise-software-related expertise centers in Europe. His team focuses on the $172 billion European software market, specifically on business applications, customer experience, business analytics, and artificial intelligence. Specific research areas include market analysis, competitive analysis, end-user case studies and surveys, thought leadership, and custom market models.

Overcoming GenAI Pilotitis and Acute POC Syndrome

Welcome to the wild world of AI adoption, where companies are caught in a whirlwind of buzzwords, shiny new toys, and the constant fear of missing out. Today, we’re looking at a peculiar plague sweeping across Western Europe’s businesses: pilotitis and its close cousin, acute proof of concept (POC) syndrome.

Picture this: eager companies, bright-eyed and full of hope, diving headfirst into the AI pool. As a recent IDC survey showed, companies are running an average of 40 GenAI POCs annually. Forty! That’s a lot — and given their limited experience and expertise, it’s impressive. But is it really getting them anywhere?

Out of FOMO, these companies sometimes act like kids in a toy store, grabbing every shiny AI gadget they see. “Ooh, look at this LLM! Check out that ML algorithm!” But as any parent can tell you: Too many toys may make you miss out on the real fun.

AI Adoption Problems

The diagnosis? Experimentation is great. It’s how we learn and grow. But when you’re running more POCs than there are weeks in a year — and some companies really do, with 7% reaching up to 99 POCs annually — you might have a case of pilotitis. Symptoms include:

  • An insatiable appetite for new AI projects
  • An inability to follow through on successful pilots
  • A severe allergy to scaling anything beyond the POC phase
  • Chronic “shiny object” syndrome
  • KPI amnesia, or forgetting to define or measure success metrics for AI initiatives

The Consequences of Unstoppable Pilots

The prognosis? Well, not great. Just one-third of companies report highly successful GenAI POCs. The rest achieve mediocre results, with nearly half achieving success rates of 50–70%. It’s like getting a C+ in school — not failing, but not exactly something that makes mom proud.

And there’s more: Some companies aren’t even evaluating their POCs’ success. It’s like they’re running around in circles, not knowing if they’re making progress or just getting dizzy.

So what’s the cure for the pilotitis epidemic? First, we need to identify the underlying causes:

  1. The “AI is Hot and New” Factor: Companies are so smitten with the idea of AI that they forget to ask, “But does it actually solve our problems?”
  2. Cost Confusion: AI projects can be expensive. Without clear ROI metrics, it’s easy to keep throwing money at pilots without seeing returns.
  3. Skills Shortages: Finding the right talent to implement AI solutions is tough. Competences are in high demand, experts are scarce, and it may take forever to find someone you can afford.
  4. Coordination Chaos: IT and business teams often struggle to work together effectively, leading to a disconnect between tech capabilities and business needs.
  5. Fear of Commitment: Some companies are so afraid of making the wrong choice that they’d rather keep piloting forever than commit to a full-scale implementation.

How Tech Providers Can Help Their Customers

The treatment? AI technology providers and their partners have a unique opportunity to play doctor and help clients overcome pilotitis. After all, healthy clients support long-term business relationships. How can “tech doctors” cure their ailing patients?

  1. Offer Scalable Proof-of-Value Approaches: Help clients quickly demonstrate value from GenAI in specific use cases, then provide a clear path to scale. It’s like a doctor helping to expand a toddler’s diet — we start with grated carrots and end up eating a full-course meal in a Michelin-starred restaurant.
  2. Differentiate Between Experimentation and POC: Establish clear guidelines for each stage. It’s like the difference between medical research and clinical trials — in research, we’re exploring possibilities, but in trials, we’re testing specific hypotheses with measurable outcomes.
  3. Outcome-Based Pricing: Link fees to project success. It’s like being a personal trainer and only getting paid if your clients actually lose weight — suddenly, everyone’s motivated to see results!
  4. Introduce Integrated Cost Management Tools: Help clients track and control expenditures throughout the AI project life cycle. It’s like giving them a financial fitness tracker for their AI projects.
  5. Provide Post-POC Support and Road Mapping: Offer comprehensive guidance for scaling successful POCs. It’s like offering post-op doctor’s recommendations.
  6. Offer End-to-End Change Management Support: Go beyond tech implementation and help with the human side of AI adoption. It’s like being both a personal trainer and a therapist for your client’s AI journey.

 

These approaches will help you remember that pilotitis and POC syndrome are just growing pains. With the right approach and a little help from their “tech doctors,” companies can overcome these challenges and move from endless experimentation to meaningful AI implementation.

To all businesses out there drowning in pilots and POCs — it’s time to start turning those experiments into real-world solutions. And to tech providers: Your mission is to be the best AI doctors you can be. Help your clients understand and manage their symptoms — and watch them grow healthier and stronger.

Ewa Zborowska - Research Director, AI, Europe - IDC

Ewa Zborowska is an experienced technology professional with 25 years of expertise in the European IT industry. Since 2003, she has been a member of the IDC team, based in Warsaw, researching IT services markets. In 2018, she joined the European team with a specific emphasis on cloud and AI. Ewa is currently the lead analyst for IDC’s European Artificial Intelligence Innovations and Strategies CIS.

In the realm of data platform decision-making, organizations typically consider several dimensions when making their choices. These encompass aspects including functionality, performance, scalability, cost, flexibility, and alignment with specific use cases.

The following are some of the key criteria of data platform decision-making. It’s worth noting that one of the most-hyped databases right now, in support of AI, is vector databases. We’ll explain why.

Data Model and Schema Flexibility

Organizations assess whether the database supports their data model requirements. Some may need the flexibility of schema-less or schema-on-read models. Others may require the rigidity of a relational model. The choice depends on factors like the structure of the data — is it simply rows and columns of numbers? is it a mix of images, videos, and documents? — and the need for agility to adapt to evolving schemas.

With the rise of Hadoop, many organizations began to store more of their data for analysis, now or in the future. Open source Hadoop offered data storage on commodity hardware, while more traditional proprietary data warehouses were almost certainly far more expensive. The trouble is that Hadoop lacked a schema — a structure for the data warehouse — making it harder to extract the data when you need it (though workarounds are now available).

As mentioned above, vector databases are garnering a lot of attention because of the rise of AI. Reasons for this include:

  • Efficient Similarity Search or Nearest Neighbor Search: Vector databases are optimized for nearest neighbor search, a fundamental operation in many AI applications such as recommendation systems, image retrieval, and natural language processing.
  • High-Dimensional Data Handling: AI models, especially in NLP and computer vision, generate high-dimensional embedding vectors. Vector databases can store and index these vectors efficiently, allowing for rapid querying and analysis.
  • Semantic Search: By leveraging embedding vectors that capture semantic information, vector databases enable more intuitive and relevant search results compared to traditional keyword-based searches.
  • Multimodal Search: Vector databases support the integration of various data types (text, images, audio) by converting them into a common vector space, allowing for unified search and analysis across different modalities.
  • Clustering and Classification: Vector databases support operations like clustering and classification directly on the stored vectors, aiding in tasks such as customer segmentation, anomaly detection, and pattern recognition.

Vector databases are pivotal for AI because they provide the necessary infrastructure to store, manage, and query high-dimensional vectors efficiently. This capability is foundational for enabling fast, scalable, and intelligent AI systems across various applications and industries.

Performance and Scalability

Performance considerations include factors like query speed, throughput, latency, and concurrency. Scalability relates to the ability of the database to handle growing volumes of data and increasing user loads without sacrificing performance. Organizations evaluate whether the database can scale horizontally (adding more servers) or vertically (upgrading existing servers).

Consistency and Durability

Consistency refers to the degree to which data remains in a consistent state across distributed systems, especially in the event of failures or concurrent transactions. Durability relates to the ability of the database to ensure that committed transactions persist even in the face of system failures. Organizations weigh the trade-offs between consistency, availability, and partition tolerance based on their application requirements.ACID is key to relational, transactional databases. ACID compliance refers to a set of properties that ensure the reliability and integrity of transactions in a database system. The acronym ACID stands for Atomicity, Consistency, Isolation, and Durability, each representing a fundamental aspect of transaction management.

ACID is spoken of in somewhat hushed tones by NoSQL vendors. When pushed, some will say they offer “ACID-like” compliance. For many modern use cases, ACID-like is good enough. But speak to a database developer dealing with transactional systems — like core banking systems — and they will tell you their regulators and other stakeholders require “pure” ACID compliance. Compliance with ACID standards can help organizations meet regulatory requirements and maintain data governance.

Data Integrity and Security

Organizations prioritize databases that provide robust mechanisms for maintaining data integrity (e.g., through constraints, transactions, and validations) and enforcing security (e.g., encryption, authentication, authorization, and auditing). Compliance with regulatory requirements such as GDPR, HIPAA, or PCI-DSS may also influence database selection.

Ease of Development and Maintenance

This encompasses factors like developer productivity, ease of learning, availability of tools and libraries, and support for programming languages and frameworks. Organizations seek databases that streamline the development process, facilitate debugging and monitoring, and minimize operational overhead.

Total Cost of Ownership (TCO)

TCO considerations include both up-front costs (e.g., licensing fees, hardware costs) and ongoing expenses (e.g., maintenance, support, scaling). Organizations evaluate databases based on their ability to deliver value relative to their costs over the entire life cycle of the system.

Ecosystem and Integration

Organizations assess the database’s ecosystem, including its compatibility with existing infrastructure, integration with other systems (e.g., data warehouses, analytics platforms, the cloud), availability of third-party tools and services, and community support. Integration capabilities influence factors such as data migration, interoperability, and extensibility. There is also the issue here of deployment venue: on premises, in the cloud, hybrid, or multicloud.

 

By evaluating data platforms along these lines, organizations can make informed decisions that align with their business objectives, technical requirements, and constraints. Vector databases are certainly one of the hottest tickets in town in support of AI — but different use cases have different priorities.

Cybersecurity threats continue to increase. According to ENISA’s 2023 Threat Landscape report, there were around 2,580 observed incidents in the EU between July 2022 and June 2023. In the previous reporting period, there were less than 800. ENISA reported that 19% of events targeted public administrations, by far the largest industry.

Government chief information security officers (CISOs) are not resting on their laurels. They understand that cybersecurity is important.

IDC’s EMEA Cross-Industry Acceleration Survey, conducted in December 2023, found that 91% of government executives were planning to maintain or increase their level of spending in cybersecurity. In the many one-on-one conversations that IDC Government Insights analysts have had with government CIOs, CISOs, and other IT executives, cybersecurity always stands out as a “ring-fenced” item protected from budget cuts.

But given the rising volume, variety and velocity of threats, ring-fencing budgets is not enough — a change of paradigm is in order.

Paradigm Shift: From Protecting the Perimeter to National Survivability

The most forward-looking governments understand that the old mindset focused on protecting the individual government agency, or even the individual system or digital citizen service app, is insufficient. They understand that governments play a key role in national digital and physical services and infrastructure resilience and survivability.

To deliver on this higher purpose, government CISOs need to look beyond their organizational boundaries, take a whole life-cycle approach to cybersecurity, and provide knowledge to non-security experts to enable them to act responsibly.

Looking beyond organizational boundaries means collaborating across public administrations and the private sector to create a resilient ecosystem. Beyond the NIS2 Directive’s mandatory obligations — such as establishing at least one computer security incident response team (CSIRT) in each EU member country — resilience comes through the collective effort of cybersecurity specialists within ministries of defense, police forces, intelligence agencies, and all other public administrations.

In a recent IDC conversation with a regional government institution’s senior IT leader, it was emphasized how important it is for all levels of government to collaborate in the ecosystem to protect against the spike of attacks that usually occurs in the months prior to and during major events like the Olympics, the World Expo, the FIFA World Cup, or a G7 meeting. Participants should include transportation operators, payment and banking service providers, telcos, utilities, and travel and hospitality companies.

Taking a life-cycle approach to cybersecurity means caring for the hygiene of systems, protecting them and responding to events from development through termination. Hygiene starts with security by design, DevSecOps and application security best practices, and vetting hardware and software supply chain bills of material for security and compliance requirements.

Data hygiene is paramount — not only to comply with regulations that protect sensitive data, but also to increase the resilience and visibility of all data sets critical to government operations. Holistic protection requires enhancing the observability of the broader landscape.

CISOs should demand that their cybersecurity solution providers make available AI/ML solutions and AIOps practices that can increase the productivity of observability and detection.

Incident response must be grounded on governance processes and structures that enable timeliness and coordination. Throughout the life cycle, government CISOs should regularly upgrade their team’s skills, not only traditional cybersecurity skills but also legal skills, AI ethics, bias testing, and prompt engineering.

Ensuring that security and non-security experts have the right knowledge to act responsibly is a major people and organizational transformation effort. Investing in programs to raise the cybersecurity awareness of civil servants, other industries, and the general public is critical.

It is also important for CISOs to articulate the value of cybersecurity to the elected and appointed officials who make budget decisions. CISOs and their teams that are able to articulate the value of cybersecurity in terms of business risks will raise their profile internally and be recognized as strategic decision makers.

Technology developments will help CISOs accelerate the paradigm shift. In particular, the automation and orchestration of processes related to security and privacy will help address the skills gap and accelerate the detection of malicious behaviors, threat response, and remediation actions.

European government CIOs and CISOs that combine tool investments with a holistic approach to cybersecurity will boost the resilience of their organizations, of the communities they serve, and increase citizens’ trust in government. Those that focus on siloed system protection and legacy operating models and competencies will not be able to respond to threats and will be relegated to the role of gatekeepers who eventually lose influence and budget.

To learn more, explore the latest IDC research

Massimiliano Claps - Research Director - IDC

Massimiliano (Max) Claps is the research director for the Worldwide National Government Platforms and Technologies research in IDC's Government Insights practice. In this role, Max provides research and advisory services to technology suppliers and national civilian government senior leaders in the US and globally. Specific areas of research include improving government digital experiences, data and data sharing, AI and automation, cloud-enabled system modernization, the future of government work, and data protection and digital sovereignty to drive social, economic, and environmental outcomes for agencies and the public.

IDC’s annual CEE Summit was held in Vienna on June 9-11, with the theme of “Unlocking Performance Potential.” It highlighted the opportunities and challenges for organizations currently embracing AI.

Digital transformation continues to reshape industries and economies worldwide, and Central and Eastern Europe (CEE) is no exception. This vibrant region, with its technology hubs and innovative spirit, has the potential to become a key player in the global tech landscape.

In this blog post, we offer insights from industry experts on the pivotal factors driving this transformational change. From building IT spending transparency and making a compelling case for artificial intelligence to the critical roles of culture, change management, and sustainability, we explore how CEE can harness its full transformation potential. Moreover, we emphasize why cybersecurity remains a top priority in this rapidly evolving digital era.

Key insights include:

Making the Case for AI and Building IT Spend Transparency

AI use cases are widespread and growing, in industries including financial services, pharma, manufacturing, and more. However, IDC research shows that GenAI investments are putting increasing pressure on IT budgets.

For organizations with tight IT budgets, our advice is to build a transparent IT spending management capability that provides a financially sound platform on which to base investment decisions.  Avoid reliance on high-level benchmarks that provide no visibility on the organization’s future state. Mapping spending to clear cost pools and defined services provides great insights into spending and helps identify opportunities to cut costs and improve efficiency.

Culture and Change Management Are Key for Any Kind of Transformation

No matter the company size or sector, winning over hearts and minds is crucial for success. This is true whether the organization is consolidating its regional IT services delivery, looking to fully leverage the benefits of GenAI, or adopting SAP HANA across the business. 

Key elements in building a positive culture include solid backing from senior management, empowerment of teams to make their own decisions and fail fast, finding the right ambassadors of change, and rooting out toxicity.

Given all the different elements involved in change, organizations need to consider a change management function focused on the successful adoption of new tools, processes, and behaviors. This helps with communication, building transparency, and creating buy-in during periods that are often riddled with uncertainty.

Sustainability and Tech for Good

Sustainability and IT optimization are becoming critical in Europe and hot topics of discussion among IT users. Driven by the increasing number of European regulations and directives, sustainability is seen as a viable approach to stay competitive, enhance brand image, and boost customer trust. However, like IT optimization (or FinOps), sustainability can also help to streamline operations, reduce costs, and increase business value.

Cybersecurity Remains High on the Agenda

Cybersecurity remains a high priority for European executives, in particular with activities such as building resilience and business continuity, regulatory compliance and governance, and positioning security as a enabler.

Focus is increasing on cloud-native security capabilities, such as endpoint protection, threat intelligence, and application security. However, there are many industries where legacy infrastructure is widespread, resulting in security capabilities that must be adapted for cloud .

Recommendations

Many organizations are at the AI exploration stage, testing out use cases that often focus on productivity, such as chatbots and digital assistants with GenAI. For many organizations, the worry centers around the ROI gap and the real impact of AI on business.

However, real commercial differentiation with the use of AI can only be driven with function-specific (CFO, CMO, CHRO) use cases or industry-specific use , but those are more complex and investment-. Effectively, organizations are looking at the trade-off between ease of implementation vs. cost with less/more differentiation. Impacts from this investment can be achieved at all levels in the organization, but the level of impact will depending on the chosen trade-off.

We advise more holistic thinking: Organizations need a responsible AI strategy and prioritized use case roadmap with C-suite buy-in. Challenges such as AI pricing, governance, and organizational change must be considered. The broader ecosystem — including supply chain, tech vendors and other strategic partners — must also be considered. in mind, however, that GenAI or broader AI doesn’t offer a short cut to the holistic thinking noted above: you need to start with a data strategy.

IDC’s 2024 CEE Summit

Over three days, participants gathered to discuss technology opportunities and challenges from a distinctly CEE perspective. The Summit had wide representation from across the region, with participants from Czechia, Slovakia, Poland, Croatia, Serbia, Slovenia, Greece, Austria, Hungary, Romania, and Bosnia Hercegovina.

The location — in the historic town center of Vienna — evoked the Vienna Circle of the early 20th Century,  where discussions among mathematicians, scientists, and philosophers laid many of the logical foundations for the Information Age of the second half of the century.

One highlight of the event was an innovation challenge, where teams had to swiftly create and propose a GenAI-enabled initiative. This generated collaboration and many creative investment pitches, with the winner focusing on AI to improve predictive maintenance for electric vehicles.

As attendees departed Vienna, they did so with more than a fridge magnet and the strains of Mozart in their ears — they took with them new knowledge, new contacts, and the inspiration that comes from setting aside the daily routine long enough to exchange ideas with industry peers.

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Thomas Meyer - General Manager and Group Vice President, IDC EMEA - IDC

Thomas Meyer joined IDC in January 1999 and is currently responsible for managing IDC's Research Division in EMEA. This includes Practices focused on Digital Transformation, Cloud, Artificial Intelligence, IoT, Blockchain, Intelligent Process Automation and Accelerated Application Development as well as Core ICT (Software, Services, Infrastructure and Devices) and Industry-specific teams (Financial, Manufacturing, Energy, Retail, Healthcare, Government and Telco Insights)

The Hybrid Cloud Imperative

In today’s rapidly evolving digital landscape, the hybrid cloud has become an indispensable strategy for organizations aiming to maximize their IT investments. Our insights reveal that hybrid cloud is not just a trend but a critical component of modern IT infrastructure, blending the strengths of private and public clouds to foster efficiency, performance, and agility.

The complexity of implementing and operating such environments makes the role of managed service providers (MSPs) critical. These partners not only help smooth out the technical and operational challenges, but they also play a pivotal role in unlocking the true value of hybrid cloud investments.

As European organizations increasingly lean towards hybrid cloud solutions, understanding the importance of selecting the right MSP partner becomes paramount for achieving the desired business outcomes.

Overcoming Hybrid Cloud Hurdles with MSPs

Europe’s hybrid cloud landscape is experiencing a significant transformation, marked by rising investments and a clear growth trajectory. IDC’s 2023 EMEA Managed Cloud View Survey illustrates that, while hybrid cloud accounted for 31% of total IT budget in 2023, IT leaders expect a significant increase (up to 48%) of their total IT spending in Europe over the next two years.

The appeal of hybrid cloud in Europe is underscored by its compelling benefits. Organizations are drawn to the promise of enhanced cloud performance, streamlined backup and recovery processes, and more efficient cost management. These advantages position hybrid cloud as a cornerstone for building resilient, cost-effective, and optimized IT infrastructures.

However, the journey to harnessing these benefits is fraught with challenges. Skill shortages, particularly in cloud security and public cloud specific competencies, emerge as significant hurdles. The complexity of managing across diverse cloud environments adds another layer of difficulty, with operational visibility and governance among ongoing concerns.

As organizations progress in their cloud journey, they start to encounter more complex technical challenges, spanning security and data interoperability, as well as difficulties in meeting compliance and regulatory requirements.

To smooth out the edges of hybrid cloud adoption, many organizations are leaning towards managed service providers (MSPs). MSPs are pivotal for guiding customers to the right cloud types and orchestrating the ecosystem components to streamline operations, drive IT efficiency, improve agility, and increase business value.

Choosing the Ideal MSP for Hybrid Cloud Success

Understanding Your Unique Needs

When embarking on the hybrid cloud journey, understanding your organizational needs is paramount. Identify your objectives in the cloud landscape and the core IT challenges to these objectives. This clarity will guide you in selecting an MSP with the requisite cloud expertise, one that is capable of aligning the right cloud solutions with your specific workloads’ requirements.

The Crucial Role of Expertise

Expertise in various cloud environments is non-negotiable. An MSP must offer comprehensive services, from consulting to management, ensuring a seamless transition to the cloud. Their knowledge should span different cloud types, facilitating a match between cloud platforms and workloads that optimizes performance and cost.

Unified Management: A Must-Have

A unified management approach simplifies the oversight of diverse cloud environments, enhancing visibility, security, and compliance. Opt for MSPs that propose a platform-centric model for managing hybrid and multicloud scenarios. This model should streamline operations across your IT estate, fostering standardization and operational efficiency.

Empowering Your Hybrid Cloud Journey

In conclusion, the journey to mastering hybrid cloud in Europe hinges on the strategic selection of an MSP that aligns with your organization’s unique needs and goals. This journey, while complex, is made significantly smoother and more rewarding with the right partner by your side. As we’ve explored, the right MSP partner is not just a vendor but a pivotal collaborator in unlocking the full potential of hybrid cloud-enhancing efficiency, agility, and security across your IT operations.

If you want to learn more, please refer to this IDC document: Managing Hybrid Cloud: Considerations for European IT Buyers when Selecting Managed Service Providers

Francesca Ciarletta - Research Manager, European Services - IDC

Francesca Ciarletta's research covers how European organizations use managed cloud services on the infrastructure (IaaS), platform (PaaS), and software (SaaS) layers to be successful with their cloud journeys. How do managed cloud service providers ensure that customers reach their business outcomes from cloud? What are customer's expectations of their managed cloud services providers at each step of the journey? What is the role of managed cloud service providers in the broader cloud ecosystem? Which cloud provider ecosystems should they prioritize? Consequently, Ciarletta also covers the evolution of IT services towards cloud-based models, with a particular focus on managed cloud services. Her research analyzes market dynamics, challenges, and opportunities for IT service providers as they embrace digital-first delivery models.

Often, I hear that the business communications market will witness more consolidation because it’s overcrowded, meaning some vendors will either exit by divesting their operations or merge with another. There is some weight to this speculation, but by leveraging AI, vendors can reinforce their positions in the market.

When I say “leveraging AI,” I don’t mean just adding new features, but also overcoming some of the hurdles that are holding back end-user adoption. To make their AI strategies a success, it is necessary for vendors to understand and address these challenges.

Key Challenges for Businesses Trying to Gain the Full Value of AI

  1. Data silos are inhibiting AI’s full potential.

Our data reveals that businesses are at different stages of their AI journey, and the majority are still exploring, trying to determine use cases and how to extract value. Actual adoption will be determined by AI efficacy, which depends on backend data and AI training.

One challenge that limits the full value of AI is data being locked in disparate sources. Businesses often use separate systems for customer databases and CRM and utilize multiple communication and collaboration channels, creating data silos that hinder AI’s comprehensive system view.

Furthermore, these systems have different deployments, some on-premises and others in the cloud, making silos even harder to overcome.

Aggregating the different data sources, cleaning and structuring data, and training AI are the first steps in developing AI efficacy. Businesses need a connected IT stack, but this begs questions such as: Should solutions come from a single vendor who can provide a unified system in a common environment or a provider who is able to integrate different systems into a unified stream of data flow?

Many businesses are not able to adopt a unified solution from a single provider, because their investments are locked into existing IT systems and workflows. Even if systems are at the end of life, migration may not be an option due to the deep integration of workflows and strong relationships which the businesses may share with their existing providers.

Our data shows that businesses have concerns about migrating to new systems. Among other things, they are uncertain about the ultimate ROI the new system will deliver.

  1. Data privacy is a concern.

How much data should be exposed to AI is an issue for end-user organizations as well as government regulatory agencies.

Among the many benefits of data integration is the enablement of AI to drive personalized and targeted service in customer support, as AI can view and summarize customer information from different systems. This can range from listing a customer’s name and intent on agents’ desktops to providing buying history to support agents’ upsell efforts based on customers’ past preferences.

There is, however, a fine line between personalized service and violating a customer’s privacy. While some elements of personalization can feel special and help to create a sense of emotional connectedness, it’s important not to pass the point where knowledge about the customer creates a sense of invasion.

Another concern is the need to move operations to the cloud, as most AI is cloud based. Some businesses may be unable to do this due to regulatory compliance requirements for customer databases to remain on premises. For example, healthcare providers must keep patient data on premises to maintain security and privacy .

Additionally, some businesses are concerned about losing control and visibility of their IT infrastructure and customer databases by moving them to the cloud. Data sovereignty is also a factor, as some governments (including those in Europe) require businesses to keep data within the country, forcing AI solution providers to base their solutions in local datacenters.

Strategies to Overcome Challenges Impeding AI Adoption

  1. Base AI capabilities on integration and training, but also customer privacy and data governance.

Efficacy is critical for driving end-user adoption. This involves connecting different data sources and enabling closer and more far-reaching integrations within the ecosystem.

To this end, the market is witnessing a shift from SaaS-based to platform-based solutions, which allow integrations across different systems and third-party providers. Vendors also need to ensure compatibility with different IT environments, including integrating on-premises with cloud environments to enable business in different stages of their DX journey to access AI benefits.

The next step should be cleaning and structuring data, which can be overwhelming for businesses with particularly large/extensive data pools. This could present a business opportunity for professional service providers and systems integrators.

AI innovations should also incorporate guardrails to prevent misinformation, since AI is only as good as the data behind it and the training it receives. There should always be an option for human intervention to monitor and rectify AI-based results. Customers should be able to opt for how much of their information they want to be exposed to AI and other parties.

AI should be available for businesses who are mandated to run their operations on premises. And communications and collaboration solution providers should develop partnerships with other service providers that have widely distributed or local datacenters, thus making it possible to base their solutions in datacenters stipulated by data sovereignty requirements.

  1. Handhold customers during the process.

Developing suitable solutions is just one part of the story. It is also necessary to educate customers who are still familiarizing themselves with AI. Our data reveals that many businesses are unsure about use cases and how AI will fit into their overall operations. It is therefore necessary to drive conversations with relevant business leaders.

IDC data shows that while IT is still an integral part of sales discussions, business leaders are becoming more involved. Deploying AI is not just about new technology but changing business culture around it involving managers, and employees at all levels.

Making AI successful within organizations requires hand-holding through the process, from education to implementation and change management.

  1. Pay close attention to pricing.

Pricing is another important consideration, and pricing trends are wide ranging. Some vendors include AI features in their solutions without charging extra, while others offer them as add-ons at an additional price.

Not surprisingly, customers’ willingness to pay for AI solutions varies, depending on their perceived value versus price. While the unique and sophisticated functions AI can perform will influence pricing strategies, common features like meeting summarization and message composition are likely to face commoditization.

A federated approach to AI is helping to keep costs down and make it possible to offer AI as part of overall communication solution bundles. In the long run, it is likely that basic GenAI-based features will be part of overall communications solution bundles.

  1. Work closely with partners for go-to-market motions.

Go-to-market strategies are also crucial, particularly in Europe, where much of the IT communication stack is sold through partners, some of whom need training to communicate effectively with relevant business stakeholders. Channel partners should be incentivized for go-to-market initiatives, including monetary incentives and ownership of commercial relationships.

Vendors need to provide high-touch support during the sales process but leave ownership to channel partners post-sale. Market dynamics require vendors and partners to work hand-in-hand.

Conclusion

Succeeding in the business communications market involves more than introducing new AI features. It requires ensuring data efficacy by connecting different data sources, effectively training AI, and implementing guardrails to prevent misinformation.

Vendors need to understand where businesses are in their AI journey and customize solutions to meet their needs, including integration with unique IT environments and compliance with data governance and security requirements. Educating businesses about AI benefits and helping them implement AI in a compatible IT environment is essential.

The partner community plays a crucial role in the go-to-market process, and success will necessitate close collaboration between vendors and partners.

Oru Mohiuddin - Research Director - IDC

Oru Mohiuddin is a Research Director in the European Enterprise Communications and Collaboration team. Based in London, she is responsible for IDC’s coverage of Unified Communications and Collaboration in the region. Her work focuses on tracking the markets for premise-based and cloud solutions and new developments and trends, particularly in the light of changing work patterns impacting the traditional mode of enterprise communication. Prior to joining IDC, Oru worked for Euromonitor International, where she focused on Future of Work and technology in the SMB context. She also worked in New York and Bangladesh and speaks English and Bengali. Oru was awarded Chevening Scholarship by the British Foreign and Commonwealth Office to pursue her MSc in International Development from the University of Birmingham. In addition, Oru has a BA from Marymount Manhattan College in New York.