In unexpected and unprecedented times, the IT industry, like others, is looking at what it can do to support its customers and ensure its own stability. Distributors are offering extended terms, service providers are engaged in providing remote working, and security experts working to prevent issues from a heightened onslaught by hackers.
In the short-term, there will be a retrenchment in outlooks and a reduced investment in IT as survival instincts trump the drive to prosperity, says one commentator.
IDC believes the coronavirus is already starting to shake up IT investments, putting pressure on spending in some areas and increasing appetite in others. Buyers are reacting differently in this moment as regards to items such as remote working, strategic response and technology leverage, it says.Distributor ALSO is among those offering support of different kinds, which is already being used by resellers: “On top of covering short-term liquidity problems, the company provides especially small businesses the opportunity of competent and individual information regarding local support measures" explains Gustavo Möller-Hergt, CEO of ALSO Holding.
Its information service is free of charge for the ALSO resellers. Should an in-depth legal counselling be necessary, ALSO can recommend local lawyers, who will then be tasked by the reseller directly, it says.
For those thinking about the longer term implications, it could mean changes in relationships: The virus will have both short- and long-term ramifications. "Initially, plant managers and factory owners will be looking to secure supplies and be getting an appreciation of constraints further up the supply chain plus how much influence they have on their suppliers," explains Michael Larner, Principal Analyst at ABI Research.
In software applications in the manufacturing setting, ABI Research forecasts that the supply chain impact of Covid-19 will spur manufacturer's spend on enterprise resource planning (ERP) to reach US$14 billion in 2024. While many ERP platforms include modules for inventory control and supply chain management, in light of the outbreak, many manufacturers will also turn to specialist providers. Larner adds, "Supply chain orchestration requires software to be more than a system of record and provide risk analysis and run simulations, enabling manufacturers to understand and prepare for supply chain shocks."
Industry 4.0 has received much attention; however, the focus has been on the activities inside the factory gates. "But investments in robotics or IoT sensors and the like assume that assembly lines receive a steady flow of raw materials. COVID-19 demonstrates that manufacturers need to be as focused on their supplier's capabilities as they are on their factory floor," Larner concludes.
In the short term, all predictions are meaningless until some sort of stability returns at a global level.
