The key role of OEMs in the vertical transformation process

The key role of OEMs in the vertical transformation process

The latest White Paper by IDC for Dell EMC – ” How Digital Transformation Disrupts the OEM Model and What It Means for Vertical Solution Providers ” highlights how companies that rapidly implement digital transformation trends are more likely to emerge from the competition; In particular, the report explains how many digital transformation technologies, albeit still at an embryonic stage, will affect the major vertical sectors over the next three years and how OEMs will play a key role in supporting Vertical Service Providers (VSPs) in this process .


IDC predicts that in the coming years the healthcare sector will focus on the adoption of disruptive technologies and will be affected by the following phenomena:

– Thanks to the implementation of robotic automation tools (RPA) and the reengineering of some processes, by the end of 2018, users will save $ 1 billion globally.

– By 2019, 60% of health applications will collect real-time location data and clinical data from IoT devices.

– The use of robots in the distribution of drugs or food in hospitals will increase by 50% by 2019.


In the manufacturing sector, digital transformation technologies are already present; For the future, benchmarks will be more about innovation than mere productivity. In this regard, IDC expects that:

– By 2019, 75% of major industrial producers will upgrade their operation with IoT technology;

– By 2020, 60% of workers will work alongside robots using technologies such as 3D printing, Artificial Intelligence, Augmented and Virtual Reality;

– 50% of the companies in the industry will be able to handle, internally or in outsourcing, deliveries by home by 2020


The future of telecommunications will be based on virtualized and software-defined networking (SDN), with a huge impact on the vertical sectors; IDC expects that by 2018:

– 90% of businesses in the industry will leverage the communications service providers ‘cloud connect’ services to access more public cloud functionality;

– More than 65% of enterprise Unified Communication & Collaboration implementations will be cloud-based Unified Communication as a Service;

– 60% of businesses will adopt software-defined wide area networks.

To be more and more competitive, Vertical Service Providers (VSPs) have to focus on the innovation of those key elements of their business, such as production, transportation, and support. OEMs often offer the ability to customize their building blocks to meet the needs of VSPs, while in other cases not only provide components of the solution but can produce, package and ship it. IDC’s point of view is therefore to collaborate with an OEM on a portfolio of solutions conceived in the light of digital transformation to emerge on the market.

“Digital transformation is now the key word in organizations’ innovation strategies, but in many cases they are in the early stages of implementation. IDC’s research reminds companies that are not alone in this challenge: OEMs can be the answer to being competitive in the future, “said Dermot O’Connell, vice president, Dell EMC OEM, and IOT Solutions .



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