it complexity report final

The IT Complexity Challenge A Trustmarque study into the state of IT complexity from the CIOs’ perspective

REPORT

October 2015

Researchconducted

by

Commissioned by

The IT Complexity Challenge

2 Contents

Overview

Technology both new and old adds to the complexity challenge

Simplification rises up the CIOs’ agenda

Increased complexity demands new IT skills

Summary: Simplifying IT will drive businesses forward

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3 Overview

The world of technology is changing at a rapid pace. For enterprises, trying to keep up with the introduction of new technologies is becoming an increasingly difficult task. End-to-end IT management and the responsibility of the CIO is a more complex assignment than ever before.

Whilst the latest digital technology delivers unmatched business benefits, improved usability, choice and agility, it requires new skills and capabilities and a significant transformation to maximise the value gained. The challenge of transforming traditional IT estates and organisations to this new platform is as significant as from mainframes to PCs, or the adoption of the Internet.

The technology journey of an organisation now has many more considerations; with countless new questions for CIOs on what technologies they will need to purchase, deploy, support and manage.

CIOs are under continued pressure to deliver innovative new services, whilst at the same time maintaining existing IT services to a high standard. This balancing act only adds further to their management burden.

This research examines how CIOs view their current IT environment and the factors that are contributing to the overwhelming complexity they face. This report will also look at how business requirements and the demands of employees have added additional pressure to the role of the CIO.

One thing in particular is clear throughout the research – organisations are craving simplicity. In order to meet the demands of the business,

CIOs need to be able to work with end-to-end service providers that can help and guide them on this journey, empowering them to drive the organisation forward.

*The research was undertaken by independent market research company, Vanson Bourne; the total sample size was 200 UK CIOs and senior IT decision makers from large enterprises with over 1,000 employees.

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The transition from the internet-enabled business to the digital one is a huge increase in complexity for IT departments designed for business as usual technical operations, while traditional models of integration, licensing and management that were not designed for cloud are exacerbating the problem.– James ButlerCTO, Trustmarque

“”


4 Technology both new and old adds to the IT complexity challengeThe ease-of-use associated with modern business IT environments has increased over recent years; with more user-friendly, mobile and collaborative IT services available to employees. But delivering those services has meant that behind the scenes, complexity has grown. When asked, 93% of CIOs stated that IT complexity has increased.

Two thirds (66%) of CIOs said that cloud computing contributes to IT complexity. It is interesting to note this view on cloud, as it is often held up as a means to simplify technology landscapes and improve businesses’ agility. However, the transition from the internet-enabled

business to the digital one is a huge increase in complexity for IT departments designed for business as usual operations, while traditional models of integration, licensing and management that were not designed for cloud are exacerbating the problem.

Would you say IT complexity has increased?

Yes No

7%

93%state IT complexity has increased


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5

51%Legacy

technology

66%Cloud

computing 51%Softwarelicensing

#2 #3#1

33%

23%

46%

50%

50%

Which of the following contribute to IT complexity?

Half of CIOs (51%) felt that software licensing was adding to the complexity challenge. With business and technology needs continually changing, software licensing and asset management can become a difficult task. Businesses need a robust Software Asset Management strategy that simplifies their licensing position and ensures

compliance, giving CIOs peace of mind that risk is mitigated and spend is optimised.

In addition, legacy technology was also a contributing factor to complexity for 51% of CIOs. Understanding how to manage and support legacy systems is a significant challenge. The reliance on legacy technology can hold

businesses back from capitalising on the transformative power of digital technologies. For CIOs, the end result of this multifaceted picture is confusion over which technologies and services will actually help them simplify their IT landscape.

Increasing range of technology used

Changing business needs (e.g. business-led digital transformation)

Mobility

Employees

Customers expectations


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It’s increasingly complex to understand...

what’s the right technology to use

71%

what’s the right solution to my business

problem/needs

61%

how to manage and support the right technology

38%

how to deploy the right technology

37%

how to buy the right technology

28%

Which of the following statements do you agree with?

The majority (71%) of CIOs said it is becoming increasingly complex to understand what the right technology to use is, and almost two thirds (61%) feel it is now more complex to understand what the right solution to their business problem or need is.

Significant numbers also thought that managing and supporting (38%), deploying (37%) and buying (28%) the right technologies was becoming more complicated.

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7

13%

Considering the rapid pace of change, do you find it a challenge to stay on top of security threats?

The research further found that this complexity is also leading directly to concerns relating to cybersecurity. As cybersecurity threats have increased significantly in recent years, a growing number of stringent regulations and frequent policy updates have been introduced,

forcing organisations to invest in the latest technology to remain secure and compliant.

Most CIOs (87%) admitted they find it a challenge to stay on top of security threats because of the rapid pace of change.

Clearly, while the range of technology tools and solutions on offer to CIOs has grown, the ability to know what the best fit for the business is, and how to procure, deploy, manage and support it, has become much less obvious.

87%


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YesNo


8 Simplification rises up the CIOs’ agendaAgainst this backdrop it is unsurprising that the majority of CIOs (79%) said that simplifying IT was a priority for their organisation. In the face of this mounting complexity, achieving greater overall IT simplicity is becoming more important for many CIOs.

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Is simplifying IT a priority in your organisation?

Yes No

21%

79%think simplifying IT is a priority


Simplicity is hard won in the fires of operational and programme complexity, but it can be achieved with a mixture of experienced staff and partnering with the right managed service provider. For instance, public cloud solutions can deliver huge time, cost and quality benefits once you’ve navigated the transformational tidal wave of migrating away from traditional on-premise solutions. Leveraging experts can make this journey a lot easier.

– Phil WhiteIT Director, Rhead Group

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Which of the following is the biggest priority?

36%

34%

30%

Simplifying the management of shadow IT and business-led

IT spend

Simplifying the user experience through deploying

new digital technologies

Simplifying legacy IT


9The research found that the complexity of managing and transforming legacy IT is difficult to reconcile with pressures from the business to assist with innovation. For many businesses, improvements in digital technology have increased competition and increased the importance of technology investment, with a larger share of those budgets being controlled outside IT as digital technology becomes a differentiator. When asked their biggest priority, 36% of CIOs said it was simplifying the management of shadow IT and business-led IT spend. This was followed by simplifying the user experience through deploying new digital technologies (34%) and simplifying legacy IT (30%).

Do you find simplifying legacy IT while at the same time driving innovation a challenge?

Yes No

11%

89%agreed to the challenge of simplifying legacy vs driving innovation

This finding is a reflection of the drive towards bimodal IT and the challenges related to it. Bimodal IT, as defined by Gartner, is “the practice of managing two separate, coherent modes of IT delivery, one focused on stability and the other on agility.” Gartner believes that 75% of IT organisations will be bimodal in ‘some way’ by 2017.

In practice, this means that IT departments must be able to manage and stabilise legacy IT, while encouraging innovation through activities, such as new application development and big data analytics. But, as the research shows, supporting bimodal IT is problematic for many CIOs because of the issues associated with modern IT landscapes.

However, despite a number of CIOs identifying legacy IT as an area for simplification, the pressure on them from the rest of the business to innovate presents a significant obstacle to that aim. The majority of CIOs (89%), when asked, stated they find simplifying legacy IT while simultaneously driving innovation a challenge.

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www.gartner.com/it-glossary/bimodal

www.gartner.com/newsroom/id/2903717


11 New IT skills are requiredAs technology continues to develop and change rapidly, due to trends such as cloud, mobility and big data, the skills required by businesses are no longer the same. This shift is especially noticeable when looking at the last five years – a significant 88% of CIOs agreed that the IT skills needed by organisations have changed in this period.

Yes No

12%

88%state IT skills have changed

Do you agree the IT skills that organisations need have changed over the last five years?

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12 IT is still the backbone of the modern enterprise and having the right mix of staff with the right combination of skills is crucial to ensuring the IT department can meet organisations’ goals. IT departments today must be agile and able to quickly and effectively scale the amount and type of people it employs, in order to bring in the skills it requires.

It is clear that IT departments and CIOs spend a considerable amount of time on ‘utility’ work which is important, but is of low value to the business in terms of innovation. As a result, CIOs cannot devote time to developing the resources or skills to deliver on the transformative IT projects that the business wants.

80% of CIOs think they lack the necessary in-house skills and resources for IT transformation projects, preventing them from meeting the requirements of the business in the time frames they require.

Do you think a lack of the necessary skills and resources in-house affects IT transformation projects and prevents you from meeting

the needs of the business at the speed you require?

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80%

20%

Yes

No



13 Summary: Simplifying IT will drive businesses forwardOur research reveals that many CIOs are currently struggling with IT complexity, as well as the need to manage and integrate the latest technology alongside their legacy systems. Balancing traditional IT operations with the increased rate of change demanded by digital technology disruption can feel like a catch 22 situation for CIOs. Few IT departments have all the skills, or the bandwidth required to do this.

To drive business forward and innovate along the way, simplifying the IT that you have is imperative. Working with the right end-to-end IT services provider is key to understanding and removing the complex issues, at the same time creating and delivering a next-generation IT strategy to empower your business.

What the modern CIO needs is to simplify the IT at their disposal, yet this is a huge challenge for IT departments to do it all on their own. In order to shape this new strategic IT roadmap, CIOs need to have a clear view of what change will deliver business value, as opposed to only IT efficiencies. To ensure success, engagement is required with lines of business alongside a broad understanding of what is possible with cloud and digital technology.

Trustmarque works with companies in both the public and private sector across the United Kingdom, with the goal of simplifying their IT environments. As an end-to-end IT services provider, Trustmarque enables businesses to modernise, innovate, and achieve successful business outcomes by removing the complexity from IT. Through its integrated services, it empowers customers at every step of the IT investment process; from solution development, through technology provision, to deployment andon-going support.

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http://www.trustmarque.com


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About Trustmarque

Trustmarque is a leading provider of end-to-end IT services to the UK public and private sectors; including cloud, professional and managed services, and software solutions. At Trustmarque we give honest, simple and independent advice that helps customers navigate an increasingly complex world of IT. We simplify business, through a flexible and cost-effective approach that empowers organisations and their people. With over 25 years’ experience at the heart of the rapidly evolving IT market, Trustmarque has established a position as a leading technology provider to private sector, UK government and healthcare organisations.

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