The pandemic accelerated the digital transformation of all companies, regardless of size. Companies that immediately embraced different digital solutions in their strategies performed well and were protected from the devastating effects of the prolonged lockdowns. Digitization ensured business continuity and kick-started the digital journey of traditional business.

As economies moved through the era of lockdowns and mobility restrictions, the consumer and business landscape turned to technology. Technology solutions provided platforms for consumers and large-scale merchants to meet their needs while locked in their homes.

According to data from asset manager Morgan and Stanley, e-commerce rose to 21% of total retail sales in 2021, from 19% in 2019. Even with lockdown restrictions lifted, it still rose to 22% of sales in the first. several months from 2022.

The Bangko Sentral ng Pilipinas recently reported that digital payments will account for 30% of retail transactions in the Philippines by 2021, meaning online payments will also gain traction.

“The past two years have set the pace for digital acceleration for small businesses and scaling for large enterprises,” said Calvin Lim, President and Chief Executive Officer of publicly traded company DFNN, Inc. (PSE:DFNN), a leading IT solutions provider and system integrator. “The coming years will show how we’ve made progress in the digital space and how companies large and small have used technology to move forward.”

Lim believes that companies should pay attention to four key trends to future-proof their business. Lim hopes these trends will empower organizations to make decisions that not only accelerate the digital pivot, but also set the pace in whatever industry they are in.

1. Further increase in cloud adoption
The cloud is one of the essential components for fintech and e-commerce to thrive. Market analyst firm International Data Corp. (IDC) forecasts that by 2022, global cloud infrastructure spending will grow by 21.7%.

Organizations will be looking at a multi-cloud configuration for their compute and storage services. Cloud investments increase as demand grows. E-commerce is just one sector that has driven the adoption of the cloud, not only for storage and platform, but also for applications.

And as we move into the Metaverse era, there will be more demand for cloud technology. This alternate universe needs a platform to converge people’s alternate personas. With Web3, people will enter these digital platforms and share unified experiences.

2. Expansion of data centers
With the increasing demand for the cloud, there will be a need for more data centers. The Philippines is being primed to become the hyperscaler hub in Southeast Asia.

Last year, Chinese company Alibaba Cloud opened its data center in the country. Singapore-based data center operator Beeinfotech PH has announced general availability of The Hive, a telco-neutral facility in Pasig. It features 3,000 server racks in the three-story building. Telecommunications provider PLDT held a groundbreaking demonstration of its VITRO Sta. Rosa recently, which it said will specifically serve high-profile hyperscalers. Even small-scale data center providers are looking to establish or expand their presence in the country.

DFNN delved into this when it announced its intention to invest in the construction of the country’s first green data center in the Freeport Area of ​​Bataan, in partnership with Nautilus Data Technologies, a global pioneer of data center technologies. This is a testament to DFNN’s vision to be a partner in building a country and making long-term commitments not only for customers but also for the planet by investing in sustainable projects such as a green data center in Bataan .

3. The evolution of fintech
In the Philippines, fintech is moving from contactless transactions to creating other products and services. We are now looking not only at cross-border payments on the consumer side, but also on the business side.

Financial institutions – including legacy and digital banks – will ensure that consumers don’t have to leave their apps or platforms. They will build an ecosystem confined within the walls of their web or mobile applications. Some e-wallets have started offering various loans, investments, and even insurance within their apps, making the possibilities virtually limitless as features and services can be expanded as demand is established. Embedded finance is fast becoming mainstream, as further emphasized by the increasing popularity of the Buy Now, Pay Later scheme in retail, which is immensely popular with young professionals who have not yet built strong credit with traditional lending institutions. DFNN had these integration capabilities long before they were commercially in demand.

Before online trading became the norm, our engineering arm, subsidiary iWave, Inc., developed the NEXT-WAVE Interactive Broker platforms and systems. This stock trading platform allows brokers and retail investors to trade within the application. We have seen the Philippine Stock Exchange close the trading floor as it realized that safe trades could be made anywhere.

The NEXT-WAVE application provides brokers and traders with an end-to-end integrated system that ensures safe and inclusive market participation.

4. The Rise of Gaming
IDC said in a 2021 report that gaming, especially mobile gaming, will thrive as the pandemic subsides. Gaming is also one of the factors driving the surge in device shipments amid an ongoing health crisis. People resorted to gaming, with old gamers increasing their playing time and new gamers increasing the number of hours they spent playing.

The coming years will show how we’ve made progress in the digital space and how companies large and small have used technology to move forward, said Calvin Lim, President and Chief Executive Officer, DFNN, Inc.

ResearchAndMarkets.com’s report “Gaming Market – Growth, Trends, COVID-19 Impact, and Forecasts” expects the gaming market to reach $339.95 billion by 2027.

With games and tournaments bringing in record prizes, talents and game developers thrive. Brands and companies have jumped on the bandwagon, a testament to the promise social gaming is expected to bring.

DFNN is in a position to provide a world-class gaming experience with IEST Inc., which owns and operates multiple gaming licenses, providing gambling and gaming technologies. With a solid and robust back-end, IEST can quickly develop products according to demand. IEST developed the first legal online gaming platform InPlay, Instawin and the sports betting platform Xchangebet.

InPlay is the first legal online gaming platform in the Philippines, aiming to legally provide domestic mobile gaming services. Instawin, on the other hand, is one of the earliest e-casino platforms and a major provider of a variety of games in nearly 200 locations across the country. It also operates Xchangebet, a sports betting platform.

Ultimately, technology will remain a catalyst as we navigate the future. The emergence of new technologies will also enable consumers and businesses to accelerate or turn around. Depending on the business objectives, there are solutions up for grabs. We don’t know the challenges ahead, so companies need to be one step ahead to avoid business disruptions. Companies need to find the right match to make their organization future-proof.

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