Security enjoys a welcome revival

exclusive report
Baseline novemBer/decemBer 2010

Security enjoyS a welcome revival in our third annual market
Survey of the technology trendS that managerS and executiveS
are Seeing in their organizationS. going into next year, it leaderS
appear to be both chaStened and enthuSed: hyped technologieS are
getting gut checkS, and promiSing oneS are rolling full-Steam ahead.

By Guy Currier
20

WWW.BaselinemaG.com

W
hat’s a trend? You could look at it significant investment in security in 2011, with the vast
as one of two things: a comparison of num- majority of them increasing their investments from 2010
bers, separated by time, or a tale about levels. (See chart 1 on this page.) There’s also marked interest
something that’s happening in the market. in continuity initiatives, backed by significant support from
Which would you choose? executives and finance groups.
We all enjoy a good yarn, and certainly when it comes to In a recent survey by Deloitte & Touche LLP, 36 percent
media coverage, trends seem to be more of the latter variety. of tech-exec respondents indicated that their companies had
And that’s the approach we take with our annual survey of increased security budgets by up to 10 percent this year, and
technology trends. What we’re trying to do is predict the 10 percent of those respondents had increased these budgets
near future—so you know what to prepare for, what to look by more than 10 percent.
at and what to avoid. But Irfan Saif, principal at Deloitte & Touche, suggests
When it comes to trends, this process comes down to one asking whether these designated budgets are enough. “The
simple question: What IT stories are going to be told next adoption of cloud computing, social media and mobility solu-
year? Finding the answer is a devilish proposition. tions is on the rise,” he says, “both in the enterprise and in
In September, we fielded a detailed survey to just under consumer realms. These solutions introduce some new chal-
400 managers in organizations having at least 100 employees, lenges from a security perspective.”
across all sectors in the United States and Canada. We asked It’s clear from our survey respondents that North American
them what their expectations were for various strategies and business will be responding to security issues in 2011. Consider
technologies at their workplace in 2011. We asked whether BGMX Retail Solutions, which faces the challenge of securing
technology commitments were going to rise or fall, and, its enterprise operations while still using valuable social
if so, by how much. We also asked which technologies the networking, Web 2.0 and smartphone tools—all of which
various stakeholders (IT, users, executives and finance/budget can increase the potential for a virus/malware intrusion.
departments) supported most strongly. Based in Vestal, N.Y., this provider of retail IT solutions
By comparing the results for each strategy or technology— and services runs its operations on two networks with many
both against one another and against last year’s responses— remote clients, so security needs are a top priority. To meet
we gained a fairly clear picture of the 2011 landscape. And these needs, the company is using SonicWAll network secu-
what we’ve done in the following pages is to relate what tales rity appliances that provide application intelligence, control
these comparisons tell. and visualization capabilities.
“Because of the architecture of our system, a centralized

1
securitY roars Back management system was put in place for our primary fire-
We’ve been concerned for some time about corporate walls, as well as all of our customers’ firewalls in different
vulnerabilities, as recession-driven spending cuts drove areas of the country,” says Erin Desko, BGMX CTO. “I can
many organizations into a monitor any firewall at any given time, change rules, see who
wait-and-see mode about is connected and apply changes—all from one screen—and
information security. Well, Security not have to remember different IPs, log-in screens, etc. It
perhaps Facebook has cured now takes less time to ensure that everything is working
them of this complacency. Its correctly and allows more time to focus on our customers.”
numerous privacy breaches in 2010 created headlines, but in

2
more general terms, the explosion of social networking use Business intelligence tops social media
in the workplace has combined with increasing use of mobile In 2010, organizations recognized the enormous, valu-
technology as a source of risk to create renewed interest in able data resource social networking had unleashed.
security deployments for next year. In 2011, they expect to take
Nearly half of the organizations we surveyed are expecting stock of this resource, mak- buSineSS
ing sure their analytics fall
intelligence
into line. The development
1 Significant 2011 Investment of social networking and
in IT Security Expected collaboration applications for the enterprise will continue:

Much more Roughly 30 percent of the organizations we surveyed expect
than 2010 new or increased deployment of each in 2011. (See chart 2
8.6%
on page 22.) But the enthusiasm is for business analytics and
knowledge management, where nearly two-thirds of new com-
More than
2010 mitments are expected to be at a strong or very strong level.
49.4%
26.4% Business intelligence (BI) systems are likely to see deploy-
ment growth: Our survey showed about 9 percent more
Other organizations expecting significant deployments in 2011,
14.4% compared with last year’s survey. And it’s high on end-users’
and finance’s wish lists. The driver of this interest seems
North American organizations with 100 or more employees. to be the need to corral all these new, usually disorganized
Source: Baseline’s Study of the Top Trends in 2011 (November 2010) information sources. 21

2 2011 New or Increased Deployments WWW.BaselinemaG.com

Other 1 Significant 2011 Investment
14.4% in IT Security Expected
Much more
North American organizations with 100 or more employees. than 2010
Source: Baseline’s Study of the Top Trends in 2011 (November 2010) 8.6%

More than
2 2011 New or Increased Deployments “Buying new desktops would have cost too much,” says
49.4% 2010
26.4%
Les Barnett, who oversees educational technology for the
school system. “We saved tens of thousands of dollars just on
5% 4% the initial hardware and software investment.” Other
4% 4%
Nevertheless, while we do see increased14.4% deployment
growth of VDI in 2011 (see chart 3 on this page), many
17% 11% 14% other areas American organizations with 100 or more employees.
North
of virtualization are likely to get more atten-
17% Source: Baseline’s Study of the Top Trends in 2011 (November 2010)
tion, so we don’t expect VDI to be the shooting star it was
this year. 2011 is the time for a good, sober assessment of
this technology, to plan Increased Deployments the
2 2011 New or and strategize in order to take
15%
12% 13% best advantage of it.
1 Significant 2011 Investment
10%

4
in IT Security Expected infrastructure virtualization
5% 4%
Business Knowledge Enterprise Collaboration 4%
Analytics Management Social Much more
Applications resumes a fast pace 4%
Networking than 2010
8.6%
Is virtualization the answer to everything? It certainly
At a moderate At a strong At a very 17% 11%
seems that way. Cost-reduction—check. Growth—check. 14%
level level strong level 17%
More than Business flexibility—check.
North American organizations with 100 or more employees.
2010 Following a bit of VDI- and
Source: Baseline’s Study 49.4% Trends in 2011 (November 2010)
of the Top 26.4%
cloud-induced distraction virtualization
15%
in 2010, we see tremendous 12% 13%
10%
3 New VDI Deployments Expected impact
“Some social networking techniques will clearly Other activity levels for the more
all users, and deployments will continue at their own pace— 14.4% mature virtualization types in 2011. (See chart 4 below.)
33% Business Knowledge Enterprise Collaboration
independent of corporate intent,” says Bill Bosler, CIO at
30% All Covered, Management City, Calif.-based regulation,
Analytics a Redwood Social Applications
North American organizations with 100 or more employees. Networking
Texas Consultants, which recently designed an ambitious compliance, business continuity and strategic planning
Source: Baseline’s Study of the Top Trends in 2011 (November 2010)
BI tool as part of a new oil refinery project in the Middle services company, has deployedaenterprise virtualization to
At a moderate At strong At a very
level level strong level
East. “There will be plenty of action on the analytics side, both cut costs and increase flexibility.
2 2011 New or Increased Deployments
crunching all the new real-time data collected by both new “We’ve been fortunate that our business has been
and traditional means, and anticipating and mitigating chal- expanding,” says CIO Tim Crawford, who is also a past
lenges before they occur.” president of the Society for Information Management’s San
4% Francisco Bay VDI Deployments Expectedbe times
5% 3 New Area chapter. “However, there may

3
2010 2011
4%
vdi adoption takes a Breath Survey
Survey 4% where some services contract. Given that, the virtual model
In another example of with 100 or more employees.take stock can save between 25 and 75 percent on operating costs, 33%
North American organizations a market pausing to 30%
11%
of a promising 17% development, the speedy pace that
new 14%
Source: Baseline’s Study of the Top Trends in 2011 (November 2010) depending on how efficiently the servers are used today.”
17%
virtualized desktop infrastructure (VDI) showed in 2010 It’s clear that server and storage virtualization are only
should slow somewhat. But now hitting their stride, as most organizations have at least
4 New Virtualization
this is not to say that growth
15%
one production environment and are beginning to move
Deployments Expected
will not continue: A good 12% vdi 13% aggressively to expand. Application virtualization may also
10%
Server, storage or application virtualization
VDI system offers manage-
(network virtualization excluded)
be taking advantage, though that’s unclear from our study,
ment, security and energy
Business Knowledge 11%
Enterprise Collaboration
which didn’t separate it out from the other two. Network
2010 2011
advantages, particularly in organizations with Applications
Analytics Management Social a large, dispa- virtualization, however, was looked at separately and still
Survey Survey
rate user population, such as thoseNetworking in the education sector. seems to be several years away100 or more employees. deploy-
North American organizations with from meaningful
For example, 6% Dougherty County School very
At a moderate
the At a strong 25% At a System in ment levels. Baseline’s Study of the Top Trends in 2011 (November 2010)
Source:
Georgia deployed 1,500 seats in classrooms and computer
13%
labs in seven schools, using solutions from NComputing.
Source: Baseline’s Study of the Top Trends in 14% (November 2010)
12% 2011
2010 Survey 2011 Survey Deployments Expected
Server, storage or application virtualization

3 New VDI Deployments Expected
At a moderate At a strong At a very (network virtualization excluded)
33% 11%
30% American organizations with 100 or more employees.
North
6% 25%
13%

5 New or Increased 12% 14%
Deployments Expected 2010 Survey 2011 Survey
2010 2011 At a moderate At a strong At a very
43%
Survey Survey level level strong level
37%
35% American organizations with 100 or more employees.
North 34% North American organizations with 100 or more employees.
22 30%
Source: Baseline’s Study of the Top Trends in 2011 (November 2010) Source: Baseline’s Study of the Top Trends in 2011 (November 2010)
27%

WWW.BaselinemaG.com
New or Increased

At a moderate At a strong At a very

2010 2011

5
Survey Survey
organizations go ever more moBile 5 New or Increased
Mobility, remote user Top Trendsand telecommuting con-
Source: Baseline’s Study of the
access in 2011 (November 2010) Deployments Expected
tinue to show remarkable levels of employee-driven
deployment. Of the orga- 43%
nizations thatVirtualization
4 New took part in
37%
35% 34%
Deployments Expected mobility
our study, 27 percent say 30%
they are seeing significant
Server, storage or application virtualization 27%
end-user demand for excluded)
(network virtualization
these
technologies—more than any of the11% other 45 trends we
tested. Though the pace of adoption for telepresence (virtual
video-based meetings) is almost the same this year as it was
6% 25% 2010 2011
last year, both wireless networking (for building, campus and
13% Survey Survey
remote-office connectivity) and all forms of mobility should
have strong growth in 2011. (See chart 14% right.) 5 at Wireless Telepresence Mobility
12%
Networking
Fordham 2010 Survey in New 2011 Surveymade mobile-
University York has
initiative expansion one of its top priorities, says CIO and North American organizations with 100 or more employees.
Vice President Frank Sirianni. a strong a challenge to ful-
At a moderate
level
At There’s
level
At a very
strong level
fill disparate communications needs morea number of sepa-
North American organizations with 100 or
for employees.
rate communities that aof the Top Trendssupports, and 2010)
Source: Baseline’s Study university in 2011 (November enhanced
mobile solutions are often the best way to meet these needs. SaaS has weathered this gale well, has matured and is now
“Parents need emergency information and updates,”
6 New or Increased Deployments
ready for more widespread adoption than any of the other
Sirianni says. “The faculty needs various Web-based appli- cloud options currently bandied about. (See chart 6 on this
cations.New or Increased students and donors have
5 Furthermore, our faculty, 4%
page.) We believe in strong futures for both private and public
all beenDeployments Expected
‘spoiled’ by the consumer experience, which is able cloud computing, and even for platform as a service (PaaS).
to deliver more, better, faster.” However, 13% in this story, we’re in the business of predicting
43% next year’s trends, not 4% those farther out.2%

6
37%
interest in cloud computing For New York City government agencies, expanding into
35% 34% 8% 5%
refocuses on saas 30% the cloud for software as a service will provide greater access
27% 1%
Last year, we saw the private-cloud wave coming to collaborative solutions for multiple departments, while
14%
before it hit the mainstream. This year—in line with what saving significant costs. The city 13%
10%
is finalizing 5%deal with
a
may be the meta-trend of Microsoft that will unify dozens of software agreements
4%
better-established technolo- within one cloud-based solution structure, and expand the
cloud computing SaaS Private Public PaaS
gies getting more attention current supply of tools for e-mail, message, collaboration and
Clouds Clouds
2010 2011
in 2011—we see a return to
Survey Survey live-meeting needs.
At a moderate At a strong At a very
the speed, familiarity and More than 100,000 employees in about 100 agencies will
Wireless Telepresence Mobility
cost savingsNetworking as a service. The fact is that two
of software be affected, American organizations millionor more employees. be saved
North and at least $50 with 100 is expected to
years ago, SaaS had reached a kind of assessment point, as during Source: Baseline’s Study of theAlso, employees who2010)
the next five years. Top Trends in 2011 (November currently
concerns about service levels, security and especially avail- don’t have access to these tools, such as mobile social-services
ability mounted. employees, will be able to access them via the cloud.
“This will allow us to move more quickly while reducing
overall 2011 Significant/Increased
costs,” says Mike Bimonte, deputy commissioner for
7
IT services for the city of New York. “This is especially true
6 New or Increased Deployments Investment or Deployment
in this economy, which has forced us to analyze our licensing
and software spend and 37% 8%
quickly identify lower-cost solutions
4%
that areBusiness Process Improvement
more efficient.”
Added Paul O’Brien, executive director of IT systems:
36% 6%
“With this agreement, we’ll also have greater opportunity to

13% 4% Revenue-Building IT
2% try out different software solutions offered within the cloud
8% 5% to see what12% best for20% employees.”
works our moderately
Customer Relationship Management increased

7
1%
it angles toWard profit groWth
8% 16% greatly
14%
13% 5% We’ve been tracking IT’s alignment withincreased and business
10% Enterprise Resource Planning
4%
business goals since
our first issue nearly 10 years with 100 or buSineSS it
North American organizations more employees.
SaaS Private Public PaaS Source: Baseline’s Study of the Top Trends in 2011 (November 2010)
Clouds Clouds ago. To add to our pleasure alignment
At a moderate At a strong At a very in the renewal of interest in
level level strong level security, we are also happy
North American organizations with 100 or more employees. to see IT, and certain applications in particular, in strong
Source: Baseline’s Study of the Top Trends in 2011 (November 2010) 8 Significant 2011 Investment in the
demand in 2011. (See chart 7 on page 24.) 23
Hardware Infrastructure Expected
Much more
WWW.BaselinemaG.com
than 2010
4.7%

At a moderate At a strong At a very 4% increased
level level strong level Enterprise Resource Planning
North American organizations with 100 or more employees. North American organizations with 100 or more employees.
Source: Baseline’s Study of the Top Trends in 2011 (November 2010) Source: Baseline’s Study of the Top Trends in 2011 (November 2010)
13% 4% 2%

8% 5%

1%
2011 Significant/Increased 8 Significant 2011 Investment in the
7 14%
13%
Investment or Deployment Hardware Infrastructure Expected
10%
5%

4%
Much more
37% 8%
than 2010
SaaS Private Public PaaS
Business Process Improvement 4.7%
Clouds Clouds
36% 6% At a moderate At a strong More than
At a very
level level 2010
strong level
Revenue-Building IT 20.6%
42.5%
12% 20% Source: Baseline’s Study of the Top Trends in 2011 (November 2010)
moderately
Customer Relationship Management increased
Other
8% 16% greatly 17.2%
increased
Enterprise Resource Planning
7 2011 Significant/Increased
Investment or Deployment
37% 8%
Business Process Improvement
Forty-one percent of the organizations in our survey If these figures don’t quite impress, consider this: Thirty-
are looking forward to increased use of technology or IT 9 Increased Engagement in6%
seven percent of the organizations we surveyed are going to
36%
8 Significant 2011 Investment in the
processes specifically to increase their organizations’ rev- End-User Autonomy Expected
increase their hardwareIT
Revenue-Building consolidation efforts as well, some-
Hardware Infrastructure Expected
enue; 45 percent say they expect increased engagement in thing you’d normally expect to be a drag on new equipment
Much more 12% 20% 22%
business-process improvement in the coming year. BPI, in deployments. moderately
than 2010 Customer Relationship Management increased
fact, is far and away the most-often supported technology 4.7% “It’s a good thing to do as leases run out and you get the
by finance (31 percent) and corporate executives (35 per- chance to 8% consolidate while replacing the old with the new,”
16% greatly
More than 12% increased
cent), and it’s nearly as much in demand from end-users 2010 says Stephen Pickett, CIO at Penske in Bloomfield Hills,
Enterprise Resource Planning
(26 percent). 42.5% 20.6% Mich. “Passing the disaster recovery test is an important part
Bottom-line applications such as CRM and ERP—though of the process because youthe Top Trends in to have a service man-
Source: Baseline’s Study of don’t want 2011 (November 2010)
2010 2011
a bit less popular than BPI—are favorite investments in most ager in California who has work to doSurvey do it because
Survey
but can’t
companies where they are being used next year. Other the server isn’t working.”
17.2% North American organizations with 100 or more employees.
Chartis, a New York-based insurance company, has We figure that hardware is going to get outsized attention
invested in IT solutions to increase profit and growth for for some time.
Significant 2011 Investment in the
more than a decade. Recently, 100 launched its OneClaim
it or more employees. 8

9
North American organizations with Hardware Infrastructure Expected
system Source: Baseline’s Study offrom Pegasystems to manage the
with technology the Top Trends in 2011 (November 2010)
10 end users gain more control more
New or Increased Unified
Much
claim life cycle from the initial customer call through adjudi- Where there’s challenge, Deployments 2010so the
Communications there’s opportunity, or than
cation and payout. “We can standardize and automate claims old trope goes. Surely the idea of masses of end-users
4.7%
3.7%
processing no matter Engagement in jurisdiction,” says
9 Increased what the regulatory managing their 3.7% corporate computing environments could
More than
Alla Krasnopolsky, aAutonomy Expected systems for
End-User manager of informational send an IT manager running 2010
14.7%
Chartis. “Regardless of how small or how large the project is, for the hills. But one fasci-
11.7% 42.5% 20.6%
end-uSer
we try to incorporate these technologies.” 22% nating trend that bubbled management
up in our study last year, but

8
Other
hardWare investment—and didn’t make it into the list 14.4% 17.2%
13.6%
consolidation—continue
12% until this year, is end-user centricity as an IT management
Moving slightly up the charts—last year it was at #9— technique. (See chart 9 below.)
2010 Survey
How’s that, you ask? Won’t 100 or more employees. of tech-
is the ongoing hardware refresh, spurred by aging systems, North American organizations with decentralization
2011 Survey
reduced inventories and the release of Windows 7. We expect
2010 2011 nology into themoderate of the Top Trends in 2011 (November very lead
Source: Baseline’s Study the (usually untrained) a 2010)
At a hands of At a strong At masses
this trend to continue into a
Survey Survey level level strong level
second North American organizations with 100 or more employees.
year, possibly even North American organizations with 100 or more employees.
infraStructure
stronger than the numbers Top Trends in 2011 (November 2010) Increased Engagement in

Source: Baseline’s Study of the
9
here indicate. End-User Autonomy Expected
For one thing, hardware
infrastructureor Increased Unified survey respon-
10 New was the area cited by our 22%
Communications Deployments
dents as being least likely to experience reduced invest-
ment at their organization, even 3.7% the continued
with
3.7%
business emphasis on reduced capital investment. 12%
Another thing is simply the continuing extent to
14.7%
11.7%
which firms expect significant investment in hardware
next year. (See chart 8 on this page.) Forty-three percent 2010 2011
of organizations said so, and most of them expect that Survey Survey
investment to 13.6% be bigger than 2010’s by a wide margin.
14.4% North American organizations with 100 or more employees.
24 Storage systems (not shown) look similarly strong in 2011. Source: Baseline’s Study of the Top Trends in 2011 (November 2010)

2010 Survey 2011 Survey
WWW.BaselinemaG.com
At a moderate At a strong At a very 10 New or Increased Unified
level level strong level Communications Deployments

2010 2011
Survey Survey

inevitably to lack of control? Well, it really depends on 10 New or Increased Unified
what gets decentralized. Communications Deployments
Management and control can continue in the back office, 3.7%
as applications are built, tested and vetted. Users, in turn, can 3.7%
install and run when needed—especially in mobile environ-
14.7%
ments. Client monitoring and application management sys- 11.7%
tems round out the strategy so that wildcat client applications
can be identified and contained.
One area in which both management and users are working 13.6% 14.4%
together is in social networks. Employees are allowed—or
even encouraged—to participate in social networking sites
to increase interaction with customers and enhance brand 2010 Survey 2011 Survey
recognition. Management, in turn, develops policies and pro- At a moderate At a strong At a very
cedures to ensure those interactions generate positive results level level strong level
for the business. North American organizations with 100 or more employees.
Varsity, a Memphis-based cheerleading/dance apparel and
instructional-clinic company, wanted to expand globally, but
first it needed to take control of its e-commerce execution—
its brands were scattered in various e-storefronts—and make was a fallow year for unified communications (UC), doubtless
better use of social networking sites. because the up-front investment can be great, and the current
Using IBM’s WebSphere Commerce solution enabled the economic environment demands quick returns.
company to route all customers to a central Varsity Web loca- But comparing this year’s survey results to last year’s, we
tion, where all brands are represented. It also increased the see an increase in expected UC deployments coming. (See
use of “share” features during product sales, so customers can chart 10 above.) And the benefits, certainly, are likely to be
spread the word about products they like on Facebook and significant in the long term.
other social sites. Penske (see trend 8 earlier in the story) has invested heavily
“We have 240,000 fans on Facebook, and we wanted to in UC tools from a number of vendors, including Avaya, Cisco
do a better job of connecting to our social-media audience,” and NEC. “These tools allow us to run our businesses with
says Shannon Ahern, executive director of e-commerce for our Verizon devices,” says Pickett. “We can access our voice
Varsity. With this solution, management can get more of its mail, e-mail and desktop data as if we were in the office.
products into the flow of the conversations taking place on “The drivers and crew chiefs will use it too, because
social networking sites, and employees and managers can they’re constantly on the track or out and about, and they
make better decisions based on what customers are saying. depend on their handhelds. With unified communications,
you can get all you need in one place.” 3

10
unified communications starts
to shoW life Guy Currier is executive director of research at Ziff Davis
We don’t want to get too enthusiastic, but all Enterprise. Dennis McCafferty also contributed to this article.
signs are pointing to a revival,
finally, in this long-promised unified
merging of disparate corpo- Please send your questions and comments on
communicationS this article to editors@baselinemag.com
rate digital streams. This year


hoW We conducted the research
A multiple-choice questionnaire was fielded by Ziff Of the 386 respondents, 104 had vice president or
Davis Enterprise Research from August 26 to October 6, higher titles, 95 had director titles and 151 had man-
2010, asking those involved in technology decisions at ager titles. Several questions were asked of this group
their organizations what expectations they had at their about each technology and IT strategy area to gauge
companies in 2011 for 46 technology and IT strategy the relative strength of each, as well as to understand
areas. Responses were collected from 386 managers the chief factors that might be driving or potentially
and higher titles in organizations with at least 100 hindering it. The trends covered in this story are the 10
employees: 129 in firms with 100 to 499 employees, that received the strongest results because of wide-
123 in firms with 500 to 4,999 employees, and 134 in spread adoption, intense (highly committed) adoption
firms with 5,000 or more employees. or both. 25

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