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AI Agents: What Are They, and How Will They Impact the AI PC Space in 2025?
Over the past several quarters, OEMs have focused on incorporating local AI-powered features into their new PC releases, with initial neural processing unit (NPU)-enabled use cases leveraging AI to further enhance collaboration experiences and extend battery life. However, AI agents take the NPU’s functionality a step further, combining the capabilities of large language models (LLMs) with other resources to partially or fully automate a wide range of tasks, including responding to emails, booking hotel stays, or opening and closing IT help desk tickets.
AI Buzz Sparks IT Infrastructure Shifts, but Privacy and Strategic Challenges Are Impacting Adoption
The industry enthusiasm surrounding AI has quickly led to shifts in organizations’ strategic priorities and expected investments such as demand for servers. Despite the hype, few organizations have operationalized GenAI to date. Instead, most are focused on overcoming initial barriers to adoption, including understanding the business implications of this new technology frontier.
GenAI, IT Modernization and Strategic M&A Drive Infrastructure as a Service and Platform as a Service Growth
Top hyperscalers Amazon Web Services (AWS) and Microsoft are capturing legacy Oracle and SAP workloads as customers continue to migrate to the cloud to not only outsource their IT operations but also drive lasting business value. Though the geopolitical outlook is increasingly uncertain, we expect customers will continue to prioritize more traditional “lift and shift” migrations, and steps vendors are taking to deliver more integrated solutions could help.
Harnessing AI and Automation in Business Process Outsourcing to Drive Growth Amid Shifting Buyer Priorities
Vendors’ business process outsourcing (BPO) businesses continue to benefit from the ongoing shift in buyer priorities from innovation and growth toward business resiliency and optimization. Buyers are investing in automating business processes to free up costs, providing pathways to growth for vendors with AI-powered and platform-based offerings.
Emerging Consultancy Trends: Talent Management and Innovation in the Spotlight
Technology continues to threaten the nature of consulting engagements, requiring consultancies to showcase value and deliver on outcomes. Greater investment in talent frameworks, structure and skill will equip staff to lead client discussions and effectively leverage technology to assist workflows. Partnerships remain a core piece of the technology integration, bringing in new expertise and go-to-market opportunities that enable consultancies to meet a wider variety of client needs. Client retention remains a priority across consultancies but will require the firms to effectively deliver value through services.
Federal IT Spending Will Remain Robust in FFY25 Amid AI Prioritization
Since coming into office, the Biden administration has fueled an unprecedented federal IT bull market. While the White House’s proposed federal civilian technology budget of $75.1 billion for federal fiscal year 2025 (FFY25) is the smallest increase in several years (up less than 1% compared to $74.5 billion in FFY24), it is still an increase of more than 14% from $65.8 billion in FFY23, and up 25% from $60.1 billion in FFY21, the last year of the prior administration. FFY25 has started with a continuing resolution (CR), as have most of the last several fiscal year. The impact of the latest CR on the largest federal systems integrators may be limited to shorter-cycle programs in their order books, but some disruptions to larger, longer-term engagements are not out of the question.
Meet MAMAA: The Top 5 Hyperscalers Shaping the Future of Digital Ecosystems
TBR research shows only the Tier 1 hyperscalers can transcend most, if not all, of the major lifestyle categories to provide a seamless end-to-end ecosystem experience, touching all aspects of people’s lives, primarily due to their scale and access to resources.
Growing Infrastructure as a Service Commitments and Competitive Dynamics
Market leaders Amazon Web Services (AWS) and Microsoft have highlighted that customers are signing larger cloud contracts with longer terms. At least in the case of AWS, customers are increasingly applying their cloud credits toward one- or three-year subscription offerings like Savings Plans and Reserved Instances.
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GenAI in Telecom: Transforming Operations from Front to Back Office
/by Chris Antlitz, Principal AnalystExplore the wide range of use cases for generative AI (GenAI) in the telecom industry and discover how CSPs can benefit from this emerging technology.
U.S. Telecom Market Outlook: Public Sector Revenue Growth for 2024 [Infographic]
/by Steve Vachon, Senior AnalystTBR estimates public sector revenue from U.S.-based service providers grew 6.1% year-to-year in 4Q23 to $5.4 billion. Total public sector revenue growth was driven by wireless revenue, which increased 9% year-to-year to an estimated $2.8 billion. First responder initiatives such as AT&T FirstNet and Verizon Frontline are the main drivers of public sector wireless revenue growth as these units are attracting public safety agencies seeking enhanced reliability to support mission-critical workloads and use cases.
IT Services Market in 2024: Key Success Factors for Vendors
/by Elitsa Bakalova, Senior AnalystWhile macroeconomic uncertainty challenges year-to-year revenue growth in the IT services sector, the trajectory beyond 2024 appears promising, largely due to the resilience of managed services bookings. Despite macroeconomic uncertainty the revenue growth trajectory beyond 2024 is promising, driven by the resilience of managed services bookings.
2024: A Transitional Year for GenAI and PC Markets
/by TBRExplore how 2024 marks a pivotal year for GenAI and the PC market. Discover the latest AI applications, market trends, and the evolving role of AI PCs in driving industry conversations and addressing privacy concerns.
The Critical Role of Competitive Intelligence in Strategy Planning
/by Kelly Lesiczka, Senior AnalystLearn how competitive intelligence is essential for strategy planning. Discover the benefits, best practices and key considerations for integrating market knowledge and competitor analysis into your strategic framework.
3 Ways AI Is Transforming the Cloud Industry in 2024
/by Allan Krans, Practice Manager and Principal AnalystHyperscalers and SaaS providers are clearly on the front lines of GenAI monetization, but the availability of GenAI services through cloud delivery methods will also accelerate the development of the market.
Top 3 Questions Device Manufacturers Ask When Searching for Partners
/by Patrick Heffernan, Practice Manager and Principal AnalystDiscover the critical questions device manufacturers consider when seeking ecosystem partners. Learn about evolving partnership dynamics, the impact of AI and GenAI, and strategies for differentiation in the tech industry.
How AI is Revolutionizing Telecom: Top Transformations for 2024
/by Chris Antlitz, Principal AnalystDiscover how AI is revolutionizing the telecom industry in 2024. Learn about advancements in contact centers, customer lifecycle management, and corporate functions, driving efficiency and innovation.
When Will GenAI Impact the Devices Market?
/by TBRGenerative AI (GenAI) will make devices, especially PCs and smartphones, more powerful and easier to use, and that will drive business among device, platform, silicon and software vendors but will not change the structure of the ecosystem. New opportunities in software and services will present themselves, new companies will enter the market, and most new companies will ultimately be acquired.
Cloud Components Market 2024: AI, Hybrid Solutions and Key Acquisitions
/by Catie Merrill, Senior AnalystExplore the latest trends in the cloud components market for 2024, focusing on acquisitions, AI advancements, and hybrid solutions. Discover how leading vendors like Dell, Cisco and HPE are shaping the landscape.