This 5-year tech industry forecast predicts some surprising winners - and losers - Related to 5-year, helps, intelligence, forecast, plug
Microsoft to Pull the Plug on Skype in May 2025, Teams Set to Take Over

Microsoft has showcased that Skype will be retired in May 2025 as the business shifts its focus to Microsoft Teams. The move is intended to streamline its consumer communication services and adapt to user needs.
“We will be retiring Skype in May 2025 to focus on Microsoft Teams (free), our modern communications and collaboration hub,” noted Jeff Teper, president of collaborative apps and platforms at Microsoft.
consumers will still have access to core Skype elements in Teams. Including one-on-one calls, group calls, messaging, and file sharing. Additional elements in Teams include hosting meetings, managing calendars, and building or joining communities. The enterprise showcased that over the past two years, the number of minutes spent in meetings by consumer consumers of Teams has quadrupled, indicating growing adoption.
“Hundreds of millions of people already use Teams as their hub for teamwork, helping them stay connected and engaged at work. School, and at home,” Teper added.
Microsoft is offering Skype people two options during the transition period. Skype people will be able to sign into Teams using their Skype credentials. Chats and contacts will automatically appear in the app.
The rollout begins with people in the Teams and Skype Insider programs. Teams and Skype people will be able to call and message each other during the transition. people who choose not to migrate to Teams can export their Skype data, including chats, contacts, and call history. Skype will remain available until May 5, 2025, allowing people time to make a decision.
To transition to Teams, customers can download the application from the Microsoft Teams website and. Log in with their Skype credentials. Microsoft has also provided a step-by-step guide to assist customers in making the switch.
Microsoft will discontinue paid Skype functions for new end-clients, including Skype Credit and. Subscriptions for international and domestic calls. Existing subscription clients can continue using their Skype Credits and subscriptions until the end of their next renewal period. After May 5, 2025, the Skype Dial Pad will remain available on the Skype web portal and. Within Teams for the remaining paid clients.
Microsoft acknowledged Skype’s role in shaping modern communication. “Skype has been an integral part of shaping modern communications and supporting countless meaningful moments, and we are honored to have been part of the journey,” Teper noted.
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This 5-year tech industry forecast predicts some surprising winners - and losers

Smartphone sales will grow in fits and starts, while tablet demand will wane. Large language models (LLMs) will boom, and demand for data management solutions will soar.
Also: Crawl, then walk, before you run with AI agents, experts recommend.
Furthermore, these technologies will be "hot" -- or "not" -- over the coming five years. As projected by ABI Research in its latest upgrade on technology markets through 2029. Some surprises emerged. The consultancy examined 66 essential tech market shifts, with 33 poised for growth and 33 facing contraction. Below are eight leaders and eight laggards.
Large language models: LLMs will see 35% compounded annual growth over the next five years. ABI predicted: "Enterprise software spending on LLMs continues to grow rapidly as proofs of concept mature into scaled deployments embedded across entire companies."
Data management tools. The exponential growth of cutting-edge technologies such as machine learning and generative artificial intelligence (Gen AI) will generate more than $200bn worth of data management opportunities worldwide by 2029: "The emergence of sovereign clouds underscores the need for more effective protection of personal and sensitive data."
Also: Enterprises are hitting a 'speed limit' in deploying Gen AI - here's why.
Smart home devices: ABI predicted technology offerings for home safety, security, and. Convenience will see a compound annual growth rate (CAGR) of 14% through 2029, reaching total shipments of 500 million.
Smart glasses: "High-value extended reality use cases and novel devices like AI-enabled smart glasses will propel enterprise XR adoption, which will reach million shipments by 2029," ABI expressed.
Humanoid robots. Shipments of life-like robots "will pick up pace in 2025, reaching over 180,000 per year by 2030 -- regardless of technological maturity and. Practical value," forecasted ABI. "Driven by lowering costs and novelty, humanoid robots for service, hospitality, and entertainment will buoy demand in the near term."
Security software and services: High demand for 5G-based network security software and. Services will drive a CAGR of 30% for software and 35% for services. "A dearth of available experts," noted ABI, "prevents the growth of in-house security teams and drives the need for managed solutions."
Also: I was an AI skeptic until these 5 tools changed my mind.
Warehouse management systems: Investment will reach $ billion, "driven by the introduction of advanced planning and analysis capabilities, as well as the increasing numbers of connected devices and automated material handling solutions requiring orchestration."
Data analytics for overall equipment effectiveness (OEE): ABI stated these solutions will grow at a CAGR of 13%: "With the increasing importance of data utilization, along with the never-ending goal for complete transparency into factory-floor operations, OEE is making a resurgence as a key stepping stone to effectively tackle these issues."
Tablet computers: Despite a 7% increase in 2024, tablet shipments will decline slowly through 2029, ABI predicted: "However, future demand may be driven by improved cellular attach rates with more aggressive pricing, new form factors -- foldable/flexible displays -- and. Adoption of AI aspects."
Smartphones: Though ABI projected billion smartphone shipments over the next five years, the market "has been maturing with demand being hampered not only by economic headwinds in recent years but also by a lack of compelling upgrades and lengthening replacement cycles." However, adding Gen AI to smartphones could provide a boost.
Also: Intel touts new Xeon chip's AI power in bid to fend off AMD, ARM advances.
Datacenter CPU chipsets: Declining from a 26% market share to 18% within the next five years.
Industrial blockchain: Revenue will fall almost 2% annually: "Most applications for industrial blockchain have failed to move past the pilot stages into successful commercial offerings," noted ABI. "Many of these do not provide a compelling enough use case that cannot be fulfilled by other technologies -- private networks, sovereign clouds, and. Emergent confidential computing technologies."
Cloud hyperscalers: "By 2029, with 7,800+ data centers globally, cloud hyperscalers face intense competition from colocation data centers as enterprises turn to localized entities," ABI stated. "Colocation facilities allow enterprises to partner with local providers that understand the local regulatory landscape, allowing greater control over their data and. Infrastructure."
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Security hardware: The CAGR for the next five years will remain modest at 7%, ABI predicted, buffeted by "the growing prevalence of software-based alternatives to traditional hardware security tools such as firewalls."
Robotics offline programming software: "Revenue will grow at a modest annual rate. Resulting in turbulent years for smaller software vendors. For robotics automation, service providers and original equipment manufacturers must provide programming software at a minimal cost to demonstrate the working viability of their products," .
Tethered and mobile-based VR devices: Shipments of these devices will plateau. mentioned ABI, "accounting for only 34% of all shipments by 2029. While standalone VR devices are expected to continue to see shipment growth over the next five years, the rate of growth is slower than previously expected."
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Even one year out. The future is difficult to predict in the fast-changing technology industry. However, ABI research displays the market favors more intelligent, cost-effective solutions. The researcher's projections are a guide to where the market will shift.
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Physical Intelligence Launches ‘Hi Robot’, Helps Robots Think Through Actions

Researchers at Physical Intelligence, an AI robotics firm, have developed a system called the Hierarchical Interactive Robot (Hi Robot). This system enables robots to process complex instructions and feedback using vision-language models (VLMs) in a hierarchical structure.
Vision-language models can control robots, but what if the prompt is too complex for the robot to follow directly?
We developed a way to get robots to “think through” complex instructions. Feedback, and interjections. We call it the Hierarchical Interactive Robot (Hi Robot). — Physical Intelligence (@physical_int) February 26, 2025.
The system allows robots to break down intricate tasks into simpler steps, similar to how humans reason through complex problems using Daniel Kahneman’s ‘System 1’ and ‘System 2’ approaches.
In this context, Hi Robot uses a high-level VLM to reason through complex prompts and. A low-level VLM to execute actions.
Testing and Training Using Synthetic Data.
Researchers used synthetic data to train robots to follow complex instructions. Relying solely on real-life examples and atomic commands wasn’t enough to teach robots to handle multi-step tasks.
To address this, they created synthetic datasets by pairing robot observations with hypothetical scenarios and. Human feedback. This approach helps the model learn how to interpret and respond to complex commands.
It outdid other methods, including GPT-4o and a flat Very Large Array (VLA) policy. By superior following instructions and adapting to real-time corrections. It achieves a 40% higher instruction-following accuracy than GPT-4o. Hence, it demonstrates superior alignment with user prompts and real-time observations.
In real-world tests, Hi Robot performed tasks like clearing tables, making sandwiches. And grocery shopping. It effectively handled multi-stage instructions, adapted to real-time corrections, and respected constraints.
Synthetic data, in this context, highlights potential in robotics to efficiently simulate diverse scenarios, reducing the need for extensive real-world data collection.
As seen in an example below. A robot is trained to clean a table by disposing of trash and placing dishes in a bin. It can be directed to follow more intricate commands through Hi Robot.
Building on these developments, this system allows the robot to reason through modified commands provided in natural language. Enabling it to “talk to itself” as it performs tasks. Moreover, Hi Robot can interpret user contextual comments, incorporating real-time feedback into its actions, such as handling complex prompts.
This setup allows the robot to incorporate real-time feedback, such as when a user says “that’s not trash”, and adjust its actions accordingly.
The system has been tested on various robotic platforms, including single-arm, dual-arm. And mobile robots, performing tasks like cleaning tables and making sandwiches.
“Can we get our robots to ‘think’ the same way, with a little ‘voice’ that tells them what to do when presented with a complex task?” the researchers mentioned in the firm’s official blog. This advancement could lead to more intuitive and flexible robot capabilities in real-world applications.
Researchers plan to refine the system in the future by combining the high-level and low-level models, allowing for more adaptive processing of complex tasks.
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Market Impact Analysis
Market Growth Trend
2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 |
---|---|---|---|---|---|---|
23.1% | 27.8% | 29.2% | 32.4% | 34.2% | 35.2% | 35.6% |
Quarterly Growth Rate
Q1 2024 | Q2 2024 | Q3 2024 | Q4 2024 |
---|---|---|---|
32.5% | 34.8% | 36.2% | 35.6% |
Market Segments and Growth Drivers
Segment | Market Share | Growth Rate |
---|---|---|
Machine Learning | 29% | 38.4% |
Computer Vision | 18% | 35.7% |
Natural Language Processing | 24% | 41.5% |
Robotics | 15% | 22.3% |
Other AI Technologies | 14% | 31.8% |
Technology Maturity Curve
Different technologies within the ecosystem are at varying stages of maturity:
Competitive Landscape Analysis
Company | Market Share |
---|---|
Google AI | 18.3% |
Microsoft AI | 15.7% |
IBM Watson | 11.2% |
Amazon AI | 9.8% |
OpenAI | 8.4% |
Future Outlook and Predictions
The Microsoft Pull Plug landscape is evolving rapidly, driven by technological advancements, changing threat vectors, and shifting business requirements. Based on current trends and expert analyses, we can anticipate several significant developments across different time horizons:
Year-by-Year Technology Evolution
Based on current trajectory and expert analyses, we can project the following development timeline:
Technology Maturity Curve
Different technologies within the ecosystem are at varying stages of maturity, influencing adoption timelines and investment priorities:
Innovation Trigger
- Generative AI for specialized domains
- Blockchain for supply chain verification
Peak of Inflated Expectations
- Digital twins for business processes
- Quantum-resistant cryptography
Trough of Disillusionment
- Consumer AR/VR applications
- General-purpose blockchain
Slope of Enlightenment
- AI-driven analytics
- Edge computing
Plateau of Productivity
- Cloud infrastructure
- Mobile applications
Technology Evolution Timeline
- Improved generative models
- specialized AI applications
- AI-human collaboration systems
- multimodal AI platforms
- General AI capabilities
- AI-driven scientific breakthroughs
Expert Perspectives
Leading experts in the ai tech sector provide diverse perspectives on how the landscape will evolve over the coming years:
"The next frontier is AI systems that can reason across modalities and domains with minimal human guidance."
— AI Researcher
"Organizations that develop effective AI governance frameworks will gain competitive advantage."
— Industry Analyst
"The AI talent gap remains a critical barrier to implementation for most enterprises."
— Chief AI Officer
Areas of Expert Consensus
- Acceleration of Innovation: The pace of technological evolution will continue to increase
- Practical Integration: Focus will shift from proof-of-concept to operational deployment
- Human-Technology Partnership: Most effective implementations will optimize human-machine collaboration
- Regulatory Influence: Regulatory frameworks will increasingly shape technology development
Short-Term Outlook (1-2 Years)
In the immediate future, organizations will focus on implementing and optimizing currently available technologies to address pressing ai tech challenges:
- Improved generative models
- specialized AI applications
- enhanced AI ethics frameworks
These developments will be characterized by incremental improvements to existing frameworks rather than revolutionary changes, with emphasis on practical deployment and measurable outcomes.
Mid-Term Outlook (3-5 Years)
As technologies mature and organizations adapt, more substantial transformations will emerge in how security is approached and implemented:
- AI-human collaboration systems
- multimodal AI platforms
- democratized AI development
This period will see significant changes in security architecture and operational models, with increasing automation and integration between previously siloed security functions. Organizations will shift from reactive to proactive security postures.
Long-Term Outlook (5+ Years)
Looking further ahead, more fundamental shifts will reshape how cybersecurity is conceptualized and implemented across digital ecosystems:
- General AI capabilities
- AI-driven scientific breakthroughs
- new computing paradigms
These long-term developments will likely require significant technical breakthroughs, new regulatory frameworks, and evolution in how organizations approach security as a fundamental business function rather than a technical discipline.
Key Risk Factors and Uncertainties
Several critical factors could significantly impact the trajectory of ai tech evolution:
Organizations should monitor these factors closely and develop contingency strategies to mitigate potential negative impacts on technology implementation timelines.
Alternative Future Scenarios
The evolution of technology can follow different paths depending on various factors including regulatory developments, investment trends, technological breakthroughs, and market adoption. We analyze three potential scenarios:
Optimistic Scenario
Responsible AI driving innovation while minimizing societal disruption
Key Drivers: Supportive regulatory environment, significant research breakthroughs, strong market incentives, and rapid user adoption.
Probability: 25-30%
Base Case Scenario
Incremental adoption with mixed societal impacts and ongoing ethical challenges
Key Drivers: Balanced regulatory approach, steady technological progress, and selective implementation based on clear ROI.
Probability: 50-60%
Conservative Scenario
Technical and ethical barriers creating significant implementation challenges
Key Drivers: Restrictive regulations, technical limitations, implementation challenges, and risk-averse organizational cultures.
Probability: 15-20%
Scenario Comparison Matrix
Factor | Optimistic | Base Case | Conservative |
---|---|---|---|
Implementation Timeline | Accelerated | Steady | Delayed |
Market Adoption | Widespread | Selective | Limited |
Technology Evolution | Rapid | Progressive | Incremental |
Regulatory Environment | Supportive | Balanced | Restrictive |
Business Impact | Transformative | Significant | Modest |
Transformational Impact
Redefinition of knowledge work, automation of creative processes. This evolution will necessitate significant changes in organizational structures, talent development, and strategic planning processes.
The convergence of multiple technological trends—including artificial intelligence, quantum computing, and ubiquitous connectivity—will create both unprecedented security challenges and innovative defensive capabilities.
Implementation Challenges
Ethical concerns, computing resource limitations, talent shortages. Organizations will need to develop comprehensive change management strategies to successfully navigate these transitions.
Regulatory uncertainty, particularly around emerging technologies like AI in security applications, will require flexible security architectures that can adapt to evolving compliance requirements.
Key Innovations to Watch
Multimodal learning, resource-efficient AI, transparent decision systems. Organizations should monitor these developments closely to maintain competitive advantages and effective security postures.
Strategic investments in research partnerships, technology pilots, and talent development will position forward-thinking organizations to leverage these innovations early in their development cycle.
Technical Glossary
Key technical terms and definitions to help understand the technologies discussed in this article.
Understanding the following technical concepts is essential for grasping the full implications of the security threats and defensive measures discussed in this article. These definitions provide context for both technical and non-technical readers.