Swico House View 2020: Cloud as the "gamechanger" of digitalization

Technology trends are on the rise worldwide. The Swiss economy invests very differently depending on the sector - and not always in line with global trends. 26 percent of all investments flow into the "enabler" technology cloud. This is shown in the study "Swico House View 2020".

Swiss companies invest most frequently in cloud technology. This is the conclusion of the current "Swico House View 2020" study, for which the Swico business association surveyed its approximately 650 members. The study, which provides insights into the state of digitization in Switzerland, shows: Industries are investing in almost all technologies. However, they place different emphases. "The industries are investing in a very targeted manner," says Judith Bellaiche, Managing Director of Swico, and adds: "Cloud is the real 'gamechanger' - around 26 percent of all investments are in cloud technology. Cloud enables the digitization of Switzerland, so to speak".

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Investments in technologies by Swiss industries: According to the Federal Statistical Office, 16 sectors were taken into account in the questionnaire. The total of 1154 projects from around 100 responding companies are distributed among these. (Source: Swico House View 2020) 

 

The information and communications technology sector (9 percent) and financial services providers and insurance companies (9 percent) are investing the most in the cloud. Transport and logistics as well as public administration also rely heavily on cloud projects, with 8 percent each.

Platforms" are also a strong trend: Around 19 percent of all ongoing projects of the Swico members surveyed are based on platform technology. The financial services and insurance industry recorded the most projects (12 percent), followed by public administration (10 percent) and information and communications technology (9 percent). "The service industries have recognized that platforms offer enormous potential," Bellaiche comments.

 

Global trends do not always coincide with Switzerland 

A comparison with global growth trends shows: Switzerland is not investing in all technologies in sync with the rest of the world. "We are lagging behind in certain technology trends," says Bellaiche. For her, the study also shows where industries need to catch up: "Individual industries - agriculture, for example - are still making far too little use of the opportunities offered by digitization," Bellaiche is convinced.

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Global development of the "Internet of Things" technology trend 

 

Overall, growing sales are forecast in the coming years for all eight technology trends examined. Most impressive is the huge volume of "Internet of Things" with over 800 billion US dollars in 2020. In Switzerland, "Internet of Things" accounts for 11 percent of the pie.

Switzerland also lags slightly behind in "Big Data": After "Cloud" in third place worldwide, "Big Data" is (still) in fourth place in this country. According to the study, however, "big data" will gain in importance: In 2021, global spending on Big Data solutions is already expected to amount to 231 billion US dollars (2018: 164 billion US dollars). This represents a doubling since 2015, with growth driven by rapid advances in machine learning and artificial intelligence. In Switzerland, the energy and transport sectors, the medical sector, Industry 4.0 application industries, financial services, telecommunications, and agriculture are particularly promising in terms of short- to medium-term market potential.

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Global development of the eight most important technology trends: Big Data, platforms, IoT, cybersecurity, cloud, blockchain, cognitive computing (AI/AI), and augmented, virtual and mixed reality. (Source: Swico House View 2020)

 

Augmented reality is becoming increasingly important 

An above-average growth trend is evident in the global market for augmented, virtual and mixed reality technologies: Here, the growth rate is expected to increase tenfold in the next three years, as shown by the approach of a veritable "field hockey stick" (see graphic on global development).

In Switzerland, the mechanical engineering and vehicle construction sectors as well as transport and logistics are the main users of AR. The technology trend "Blockchain" is by far the most frequently used by financial services and insurance, followed by services. "Cognitive computing" (AI) is again most frequently used by financial services and insurance, ICT, and transport and logostics.

 

And where is the ICT industry itself investing? 

The ICT sector also invests most frequently in cloud technology, with around 28 percent. In second place comes the trend "platforms" with 19 percent, ahead of "cybersecurity" with 15 percent. For Judith Bellaiche, this reflects the growing need for security solutions: "Cybersecurity offers great potential for Switzerland as a service country," she is convinced.

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"Big Data" is in fourth place with 12 percent, followed by "Internet of Things" with 10 percent and "Augmented/Virtual/Mixed Reality" with 8 percent. Although everyone is talking about technology trends, the Swiss ICT sector invests the least in cognitive computing (AI) and blockchain, at 5 and 3 percent respectively.

In the third edition of the "House View" Swico is placing an even stronger focus on Switzerland: In addition to global trends, the association asked its members about their investments and which technologies the companies use to implement their customer projects. Of the 650, around 100 Swico members responded. They were responsible for a total of 1154 projects in the various industries in 2019. The "Swico House View" thus paints a picture of the importance of the individual technologies for the Swiss ICT industry, but also for the Swiss economy as a whole. The figures also provide information on where the public sector stands in comparison to the economy.

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