But despite the economic turbulence, technology executives believe that there will be an appetite for new technology, according to a survey of technology company executives released by KPMG this week.
"Most (86 percent) of the executives say that technology innovation to create competitive differentiation will be the top driver of transformation for their business over the next three to five years and almost three-quarters (72 percent) say customer demand — changes in customer focus, buying patterns and preferences," according to the KPMG report.
"We are witnessing a convergence of technologies and business opportunity that is producing a flood of revenue in Cloud and Mobile," wrote Gary Matuszak, head of the KPMG Technology, Media and Telecommunications practice. "Also, technology companies are leveraging Cloud to transform their business to become more efficient, smarter and flexible."
Of the technology executives citing mobile or cloud technology as their leading revenue driver, 53 percent said mobile revenue exceeded 2013 forecasts compared to 26 percent in last year's KPMG survey, and 46 percent said cloud revenue exceeded their 2013 forecasts, compared to 28 percent a year ago.
"The jump in expectations for data and analytics growth is due in large part to growth in cloud- and mobile-based services that produce massive amounts of data and a competitive advantage for those who can mine the data for actionable insights," Matuszak said.
Ultimately, the vagaries of economic growth will not fundamentally change the move to new technology, market researchers say, and this is what drives M&A.
"Companies seek to keep pace with the continuing fundamental shifts in the IT landscape," PwC said.
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