idc australia cio survey 2012 · spending in 2012 0% 10% 20% 30% 40% 50% 60% hardware software it...

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23 October 2012

IDC Australia CIO Survey 2012

Chris Morris

AVP Cloud Services

1

Oct-12 © IDC

2012 Technology Priorities

What are your priorities for 2012?

1 Lower overall cost structure 18%

2 Improve or simplify IT infrastructure 14%

3 Building a more secure IT environment 12%

4 Business intelligence 12%

5 Improve business processes 10%

6 Energy-efficient IT infrastructure 8%

7 Finding the right talent to meet ICT priorities 7%

8 Harnessing ICT to gain competitive advantage 7%

IDC Australia CIO Survey , May 2012, n=245

Oct-12 © IDC

Alignment: Business and Technology

IDC Australia CIO, May 2012, n=245 IDC Australia CIO Survey , May 2012, n=245

Business Goal Ranking IT Goal

New customers/segments 1 Lower costs

Dealing with cost 2 Infrastructure improvement

New market expansion 3 More secure environment

Higher profit margins 4 Better use of BI/BA

Customer retention 5 Improve business processes

IDC Australia CIO Survey , May 2012, n=245

Delivery Optimisation

Risk & Compliance

Increased IT value

Oct-12 © IDC 4

Alignment: Technology and Business

How aggressively do you think your organization will use technology in order to

meet its business objectives? (vs. 2011)

Source: IDC Asia/Pacific Continuum Survey, 2012 (N=1,642)

Oct-12 © IDC

Alignment: Do we really care?

We apply existing project assessment processes

as we have done for any LOB request

We listen to their requirements but select a

service that best fits with existing infrastructure

and processes

We aim to compromise so that we can deliver to

most of the LOB requirements but also maintain

our application architecture integrity and SLAs

We allow the LOB managers to select what is

best for them without reference to enterprise

architecture, but have a chargeback model which

we use to ensure that the LOB is responsible for

any additional costs incurred.

Source: IDC 2012 Cloud Forum Pre-event Survey

To what extent are your business managers’ expectations for use of cloud services

influencing your selection and procurement strategies?

Oct-12 © IDC

Delivery

Optimisation

6

1

Oct-12 © IDC

What happened to

Spending in 2012

0%

10%

20%

30%

40%

50%

60%

Hardware Software IT Services Public CloudComputing

NetworkHardware

Fixed datacosts

Mobile datacosts

Decrease since 2011 Remain the same Increase since 2011Source: IDC Australia FFM, May 2012, n=245

Budgets?

2011 2012

Increase 30% 52%

Flat 48% 30%

Decrease 8% 13%

Oct-12 © IDC

Effectiveness

Effi

cien

cy

Bu

dge

t Pa

in

LOB Satisfaction

Portfolio Optimisation

Nirvana

Replace or retire Must have

Cost v function

Legacy applications & infrastructure, on-premises hosting

Costly to maintain

Legacy mission-critical, optimised &

essential but costly to maintain

System infrastructure

management, on-premises

Discretely sourced commodity

applications, individually hosted

and managed Application

development and test, on-premises

Source: IDC Asia/Pacific Buyer & CIO Conversations, 2012

Oct-12 © IDC

Effectiveness

Effi

cien

cy

Portfolio Optimisation

Nirvana

Replace, retire or outsource

Business driven

Cost optimisation

Optimised core

infrastructure,

shared by multiple

applications.

Optimised delivery

model defined by

workload type Legacy mission-

critical

Hosted on vPC,

enterprise managed

System

infrastructure

management,

delivery model

defined by

compliance need

Selectively sourced commodity

applications, individually hosted

and managed

Application development and

test, PaaS


ERP solutions,

externally hosted,

enterprise managed

Oct-12 © IDC 10

The IT Budget

Transform the business

Change the business

Research & explore

Optimize the business CIO, CFO, COO

Chief Innovation Officer

Business Unit Head, COO

Head of Strategy & Transformation

60-80%

5-25%

0-5%

0-10%

ICT wallet share


CEO

Oct-12 © IDC 11

The IT Budget

Transform the business

Change the business

Research & explore

Optimize the business CIO, CFO, COO

Chief Innovation Officer

Business Unit Head, COO

Head of Strategy & Transformation

ICT wallet share


CEO

35-50%

3-10%

25-35%

18-25%

Oct-12 © IDC

Risk &

Compliance

12

2

Oct-12 © IDC 13

Risk Management & Compliance

Delivering on time

• The ‘what-if’ protection

The new ‘eCommerce’ era

• In & between the cloud(s) protection

Customer intimacy & privacy

• Data protection

Ecosystem inter-dependence

• IP protection


Oct-12 © IDC 14

The Rise in the Mobile Worker : Drivers

UC&C now more deeply

integrated into mobility

Home-based

telecommuters in

certain markets

Mobility & flexibility

become employee

retention strategies

Lower cost smartphone devices and

data plans available in price-sensitive

markets

The consumerisation of IT and growth

in Tablet shipments will spur increased

focus on mobility

Drivers

Oct-12 © IDC 15

The Rise in the Mobile Worker : Implications

Consumerisation of IT

is challenging

organisations

The workplace

becomes more flexible,

more mobile

Productivity and

Employee satisfaction

are expectations

Concerns centre around security The ‘soft’ factors become

significantly harder Implic

ations

Oct-12 © IDC

Risk: The Elephant in the Cloud

Despite the successes, uncertainty

about cloud prevails at some level of

the organisation

Dealing with the ‘elephant in the

cloud’ remains a challenge

• Security

• Privacy

• Reliability

• Control

Benefit vs Risk

Risk is often first considered an IT

factor, & cloud benefits unrelated to

business

Risk isn’t just a technology issue

IT risk: is cloud really worse than what

we already do?

Business risk: can I maintain

compliance and internal SLAs?

Commercial risk: can the vendor really

deliver what they claim?

Cultural risk: how do I handle the impact

of changed business processes and

responsibilities?

Risk can be mitigated by way of the

selection of the correct deployment

model for each workload


Oct-12 © IDC

Location Does Matter…. Sometimes

With increasing cloud

adoption & mission-critical

use of cloud applications

emerging, location now must

be considered

Regional hubs in Asia Pacific

not always good enough

Aging facilities

Economics of refurb or replace vs. economy of scale

Shift to OpEx as IT investment direction

Compliance extends beyond the applications to infrastructure

Individual workload requirements for compliance and performance

the defining factors, but cost vs. risk an essential evaluation

Location is just one factor in cloud service selection

Oct-12 © IDC 19

Large bank: “We expect our technology suppliers to know our business very well to become our strategic partners.”

Technology Partners As Business Partners

Global insurance firm: “We are moving towards off-the-shelf solutions as they cost less to manage & maintain as well as greater accessibility to a larger pool of expertise. Hence, our IT partners must have sector-based solutions to stay relevant.”

Property & estate developer: “Technology vendors & their partners are less interested in knowing about my business & gaining ‘customer insights’. They simply want to close deals & move on to another opportunity. My CEO & I are more inclined to source from providers who will pay more attention to our business.”


Oct-12 © IDC

Access To New Processes, Speed And Skills Drive ‘Off The Rack’ Adoption

An enterprise’s ability to exploit this avalanche of new services in the cloud depends on competence when using and managing cloud services

All change:

• Asset management processes

• Staff profiles

• Budgeting and chargeback processes

Application developers are voting with their feet for

the Public Cloud

80% of new enterprise applications were

developed for cloud in 2011

20% of 2015 spending on enterprise applications

will be via the cloud model

With business managers driving demand, time to

market becomes a project defining imperative

Externally sourced, standardised solutions based

on best-practice service management processes

becoming favoured over on-premises, enterprise

managed IT infrastructure

Choice dependent on workload requirements

Oct-12 © IDC

Process Improvement and Architecture

Source: IDC Asia/Pacific InTEP Pre-event Survey, September, 2012

Delivery Optimisation

Risk & Compliance

Increased IT Value

Oct-12 © IDC

Vendors vs. Ecosystems: Service Management

Serv

ice d

eliv

ery

chain

Serv

ice m

anagem

ent

chain

•The service management chain is from end to end and must be seen by the customer as continuous.

•The service delivery chain is also end to end, but may be constructed from multiple delivery elements at different levels of the cloud stack.

How can I make a safe buying decision when so many vendors are required to

deliver the service?

Choosing your cloud service provider is not just about who you buy from – its

about the capability of the ecosystem as a whole

Will all these vendors survive?

Can one element in the chain be replaced?

Does the ecosystem include providers of industry expertise?

Is there a broker/aggregator, or is it an cloud?

ChannelsTelcos, C&SIs, VARs, MSPs, government entities

Cons

ultin

g & S

IAc

cent

ure,

TCS

, Cap

Gem

ini,

IBM

, HP,

Fuj

itsu Applications

SAP, Oracle, Aisino, Ufida, YGSoft

NetworkTelstra, Optus, AT&T, Verizon Business

System infrastructure managementIntel, Huawei, HP, IBM, EMC, Cisco, Fujitsu,

CA, BMC

Datacenter infrastructureIntel, Huawei, HP, IBM, Legend, Lenovo, EMC,

Fujitsu, NetApp

FacilityIntel, HP, IBM, government entity, telco,

property developer

Power management

APC, Raritan, HP, IBM, Intel, Cisco

Oct-12 © IDC

Vendors vs. Ecosystems:

Beware The Power Shift

Outsourcing 3.0

Business Process Provider

Services Provider

Further Expansion of Power

Market Shift

‘Consumer’ of Business Services

Market Shift

Services Driven

Hardware & Software OEM

Services Provider

Future Locus of Power

‘Consumer’ of Services

Traditional ICT Supplier Model

Hardware Software

Services

Enterprise Customer

Current Locus of Power

Oct-12 © IDC

If you have additional questions,

please contact me at:

Chris Morris

[email protected]

+61 2 9925 2208

Thank You

idc australia cio survey 2012 · spending in 2012 0% 10% 20% 30% 40% 50% 60% hardware software it...

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