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The rise of the New Digital Economy—which is driven by mobile technology, ubiquitous access to the internet, and the development of applications in the cloud—offers opportunities, but also risks if those opportunities are not exploited.
Businesses continue to shift from investment in fixed assets to cloud services, offering flexibility to increase capacity utilization and drive down variable costs while increasing productivity. Our research shows that price declines in information and communication technology (ICT) assets are likely to continue at up to 10 percent per year for now, and even more for ICT services. It is important to factor such cost reductions into the ROIs for future digital investment plans.