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Analysis

Technology, media, and telecommunications M&A update: Q4 2018

The technology, media, and telecommunications industry is continuously evolving with a focus on enhancing processes to be more streamlined, efficient and innovative. For many corporations, process improvements such as automation, artificial intelligence, 5G technologies, and DevOps, can make significant impacts on productivity and quality control. This technology, media, and telecommunications (TMT) mergers and acquisitions (M&A) update provides Deloitte Corporate Finance LLC insights and market data analysis that shed light on M&A trends in the TMT industry.

TMT trends

  • Robotic process automation1: Robotic process automation (RPA) helps automate tedious, time-consuming tasks and can deliver significant value for business leaders through improved quality/accuracy, productivity, and cost reduction. The RPA market is estimated to grow to $2.1 billion by 2021, with 72 percent of companies expected to embark on their RPA journey within the next few years.
  • Cloud-based artificial intelligence (AI)2: In 2019, several companies are expected to accelerate their use of cloud-based AI software and services. 70 percent of adopters are expected to obtain AI capabilities through cloud-based enterprise software, and 65 percent are expected to create AI applications using cloud-based development services. By 2020, penetration rates are expected to reach an estimated 87 percent.
  • 5G technologies2: 5G wireless technology is expected to be widely applied to create a truly interconnected network via mobile and fixed-wireless access devices, providing residences with broadband in place of a wired connection. The introduction of 5G smartphones is expected to trump 4G in both traffic capacity and network efficiency. Overall, there were 72 operators testing 5G throughout 2018, with that number expected to significantly rise in the near-term.
  • DevOps3: Business organizations are beginning to see the significance in DevOps, with a 17 percent increase in adoption in 2018, compared to the 10 percent increase in 2017. Within the past year, cloud providers have made significant investments as they look to offer open-source tools on their cloud infrastructure to appeal to software developers. DevOps could soon be the primary focus of businesses helping them optimize efficiency and deployments.

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References

1 G2 Crowd, AI trends in 2019: MLaaS, robotic process automation, and big data, December 3, 2018, https://learn.g2crowd.com/2019-ai-trends, accessed January 10, 2019.

Deloitte Insights, Technology, media, and telecommunications predictions 2019, December 2018, https://www2.deloitte.com/content/dam/insights/us/articles/TMT-Predictions_2019/DI_TMT-predictions_2019.pdf, accessed January 10, 2019.

3 Medium, DevOps gets more exciting in 2019, November 26, 2018, https://hackernoon.com/8-devops-trends-to-be-aware-of-in-2019-b4232ac8f351, accessed January 10, 2019.

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