The latest indicators point towards a further decline in GDP in the second quarter in the US. This situation is the latest in the storms of disruption affecting the market right now. The litany of storm keeps growing: ongoing pandemic management challenges, major supply constraints, significant skills shortages in IT and broader technical areas, rapidly increasing cybersecurity threats, evolving climate regulations, and assertions of sovereignty over digital business triggered by the Russia-Ukraine War.

For the technology markets that IDC tracks, this is also a unique situation. This will be the first potential recession in the context of a 'As-a-Service' Technology Landscape[1]. Cloud now dominates tech spend across infrastructure, platforms, and applications. Given the focus on cloud when it comes to Tech, IDC expects that the dynamics of that spend will look very different to the past.