Technology Industry Update for Fourth Quarter 2025

This document is a report detailing the performance of the technology industry for the fourth quarter and full year of 2025. It outlines key trends in market activity, highlighting that cloud and software continue to be the primary growth drivers. The report notes that managed services growth has been constrained, with a year-over-year decline observed for the second consecutive quarter. The combined market surpassed $34 billion for the first time, with significant growth in the XaaS sector, which increased by 26% year-over-year. The report also discusses regional performance, indicating divergent trends across different areas, with the Americas showing growth while EMEA and Asia Pacific faced declines. Additionally, the report presents detailed statistics on annual contract values (ACV) for various segments, including managed services, IaaS, and SaaS, emphasizing the impact of artificial intelligence on investment priorities and delivery models within the industry.