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  • 1. 30%   40%   22%   5%   2%   16%   46%   25%   10%   2%   Cri$cal  priority   Very  important  priority   Somewhat  important  priority   Not  a  very  important  priority   Not  a  priority  at  all   LEVEL  OF  PRIORITY  PLACED  ON  RUNNING  IT  LIKE  A  BUSINESS   IT   Business   Base:  IT=238;  Business  =  128           AT  YOUR  ORGANIZATION,  WHAT  LEVEL  OF  PRIORITY  IS  PLACED  ON   RUNNING  THE  CORPORATE  IT  DEPARTMENT  LIKE  A  BUSINESS?   Both  business  and  IT  agree  that  running  IT  like  a  business  is  an  important  goal,  with  IT  more   likely  to  rate  this  as  a  cri:cal  priority.   (NET  CriFcal/Very   important):   North  America  –  54%   EMEA-­‐70%   APAC-­‐76%   ■  RESEARCH  SUMMARY  REPORT          Dual  PerspecFves  on  ITaaS:  A  review  of  IDG  Research  study  conducted  by  EMC  &  VMWare  
  • 2. 30%   53%   11%   5%   1%   18%   49%   21%   9%   2%   Significant  progress,  IT  already  runs  like  its  own   compe$$ve  business   Moderate  progress,  IT  is  currently  moving   toward  this  model,  but  there  is  s$ll  work  to  be   done   LiZle  progress,  but  we're  ac$vely  planning  to   move  IT  toward  this  model   No  progress,  regardless  of  any  desire  to  do  so,   we  have  not  taken  any  steps  yet  to  move  IT   toward  this  model   Don't  know   PROGRESS  IN  SETTING  UP  IT  TO  RUN  LIKE  A  BUSINESS   IT   Business   In  your  opinion,  how  much  progress  has  your  organizaFon  made  to-­‐date  in  sebng  up  the   corporate  IT  department  to  run  like  a  business  (in  other  words,  corporate  IT  resembles  an   outside  service  provider  in  terms  of  skills/experFse,  breadth  of  service  offerings,  ability  to   offer  compeFFve  pricing  models,  etc.)?   While  most  respondents  report  at  least  moderate  progress,  business  execuFves  are  more  likely  to   indicate  that  ligle  to  no  progress  has  been  made  as  far  as  running  IT  like  a  business.   Base:      IT=238;  Business  =  128           (NET  Significant/   Moderate  Progress):   North  America  –  66%   EMEA-­‐74%   APAC-­‐92%   ■  RESEARCH  SUMMARY  REPORT          Dual  PerspecFves  on  ITaaS:  A  review  of  IDG  Research  study  conducted  by  EMC  &  VMWare  
  • 3. 85%   83%   79%   81%   79%   77%   75%   80%   77%   78%   68%   70%   62%   74%   75%   78%   72%   68%   71%   70%   58%   62%   62%   61%   54%   56%   Increased  business  efficiency   Improved  customer  sa$sfac$on   Improved  data  security  and  compliance   Improved  employee  produc$vity   BeZer  alignment  between  IT  and  lines  of  business   More  rapid  execu$on  of  business  processes   Decreased  applica$on  down$me   Faster  IT  service  delivery  ("Amazon-­‐like"  experience  empowering   business  users  with  easy  and  highly  available  self-­‐service)   Compe$$ve  edge  -­‐  iden$fying  market  opportuni$es   Increased  business  innova$on   Cost  savings  -­‐  more  OPEX,  less  CAPEX   Increased  revenue   Ability  to  support  end  user  mobility/BYOD   CRITICAL/VERY  IMPORTANT  OUTCOMES  OF  RUNNING  IT  AS  A  BUSINESS  (Ranked  by  Total  Responses)   IT   Business   At  your  organizaFon,  how  important  are  the  following  potenFal  outcomes  of  sebng  up  the  corporate     IT  department  to  run  as  a  compeFFve  internal  service  provider,  catering  to  business  customers?   * * * * * *Denotes  significant  difference   Base:      IT=238;  Business  =  128           InteresFngly,  IT  execuFves  are  more  likely  than  business  execuFves  to  highly  rate  the  importance  of  each  potenFal   outcome  of  running  IT  as  a  business.   ■  RESEARCH  SUMMARY  REPORT          Dual  PerspecFves  on  ITaaS:  A  review  of  IDG  Research  study  conducted  by  EMC  &  VMWare  
  • 4. IT  does  this  very   well,  ligle  need   for  improvement   IT  does  this  well,     but  requires   some   improvement   IT  is  making  this     a  priority,  but     sFll  requires   significant   improvement   IT  is  not  making   this  a  priority   right  now   Don’t  know   IT   Business   IT   Business   IT   Business   IT   Business   IT   Business   …compete  for  business  against   alternate  service  providers  outside     the  company  (e.g.  Amazon)   18%   12%   45%   35%   15%   19%   19%   24%   2%   10%   …demonstrate  an  accurate   understanding  of  the  services  the   business  needs/wants     25%   10%   48%   43%   22%   37%   5%   5%   1%   5%   …make  IT  services  easy  to  package     and  deliver   17%   12%   41%   38%   33%   39%   7%   7%   2%   5%   …effec$vely  price  IT  services  for   business  consump$on   15%   10%   43%   32%   27%   34%   13%   16%   2%   9%   …help  improve  product  $me  to  market   21%   9%   36%   34%   32%   29%   9%   20%   2%   9%   …communicate  a  clear  vision  for  future   services   21%   9%   42%   30%   29%   43%   6%   12%   1%   6%   …gain  the  trust  of  business   stakeholders   17%   9%   49%   37%   30%   37%   3%   12%   0%   6%   How  would  you  rate  your  IT  organizaFon’s  currently  ability  to…     Base:      IT=238;  Business  =  128           IT  execuFves  are  SIGNIFICANTLY  more  likely  than  business  execuFves  to   indicate  IT  is  performing  very  well  in  many  areas.   ■  RESEARCH  SUMMARY  REPORT          Dual  PerspecFves  on  ITaaS:  A  review  of  IDG  Research  study  conducted  by  EMC  &  VMWare   *  Red  circle  indicates  sta$s$cal  significance    
  • 5. IT  does  this  very   well,  ligle  need   for  improvement   IT  does  this  well,     but  requires   some   improvement   IT  is  making  this   a  priority,  but   sFll  requires   significant   improvement   IT  is  not  making   this  a  priority   right  now   Don’t  know   IT   Business   IT   Business   IT   Business   IT   Business   IT   Business   …ac$vely  seek  and  inform  the   business  of  new  services   19%   9%   47%   40%   26%   32%   6%   13%   1%   5%   …ar$culate  business  value   25%   12%   44%   33%   26%   37%   4%   12%   1%   5%   …enable  business  innova$on   25%   15%   40%   35%   30%   35%   5%   12%   0%   4%   …make  it  easy  for  lines  of  business   to  work  collabora$vely  with  IT   24%   8%   44%   44%   29%   35%   3%   10%   1%   4%   …measure  end-­‐user  (customer)   sa$sfac$on  for  services  delivered   18%   8%   44%   38%   28%   34%   8%   14%   2%   5%   …support  end-­‐user  mobility  and   BYOD  strategies   16%   11%   43%   30%   27%   39%   13%   14%   1%   6%   How  would  you  rate  your  IT  organizaFon’s  currently  ability  to…  (con$nued)   Base:      IT=238;  Business  =  128           ■  RESEARCH  SUMMARY  REPORT          Dual  PerspecFves  on  ITaaS:  A  review  of  IDG  Research  study  conducted  by  EMC  &  VMWare   *  Red  circle  indicates  sta$s$cal  significance    
  • 6. 32%   30%   30%   29%   27%   26%   26%   25%   22%   22%   21%   20%   19%   18%   17%   17%   16%   14%   Concerns  about  security  and  compliance  challenges   Corporate  culture  averse  to  change   Developing  a  pricing  model  for  IT  services   Insufficient  skills/experience   Burden  of  legacy  applica$ons   Insufficient  budget  for  large  scale  change   Complicated  internal  poli$cs   Burden  of  legacy  infrastructure   Entrenched  organiza$onal  structure  not  suited  for  ITaaS   Concerns  about  maintaining  control  over  data/data  access   Difficulty  in  defining  the  business  case   Changing  the  solware  development  process/lifecycle   Purchasing/accoun$ng  constraints  and  red-­‐tape   Difficulty  in  gaining  the  trust/consensus  of  stakeholders   Unsure  how  to  implement  end-­‐to-­‐end  mgmt  to  ensure  con$nuity  of  services   Compe$$on  for  new  talent  or  skills   Increasing  or  changing  regulatory  requirements   Labor  issues/contracts   ROADBLOCKS  FACED  BY  IT  IN  IMPLEMENTING  ITAAS    -­‐  IT  ONLY   What  are  the  roadblocks  your  IT  organizaFon  faces  in  implemenFng  an  ITaaS  model?   Base:      IT=238   Security  and  compliance  concerns,  change  management,  developing  a  pricing  model,  and  lack  of   the  right  skills  are  the  top  concerns  of  IT  execuFves  regarding  ITaaS  implementaFon.   ■  RESEARCH  SUMMARY  REPORT          Dual  PerspecFves  on  ITaaS:  A  review  of  IDG  Research  study  conducted  by  EMC  &  VMWare  
  • 7. 45%   36%   32%   31%   27%   26%   24%   23%   21%   21%   20%   18%   15%   Poor  communica$on  between  IT  and  lines  of  business   Challenges  in  standardizing/streamlining  business  processes   Lack  of  understanding  about  the  value  of  IT   Lack  of  trust/confidence  in  IT's  technical  exper$se  among  lines  of  business   Lack  of  understanding  about  what  is  possible  with  new  technology   Not  genng  the  metrics  the  business  needs  to  make  informed  decisions   Lack  of  transparency  regarding  IT  cost  per  service   IT  lacks  the  business  skill  sets  to  develop  business  solu$ons   IT  doesn't  respond  well  to  business  ideas/sugges$ons   Data  security  management  concerns   Concerns  about  chargeback/budge$ng  and  ability  to  pay  for  services   Lack  of  support/encouragement/sponsorship  from  execu$ve  management   Lack  of  financial  transparency  of  IT   ROADBLOCKS  TO  A  MORE  EFFECTIVE  IT/BUSINESS  PARTNERSHIP  –  BUSINESS  ONLY   From  your  perspecFve,  what  are  the  roadblocks  your  organizaFon  faces  in  developing   a  more  effecFve  partnership  with  IT?   When  it  comes  to  developing  a  beger  IT/Business  partnership,  business  execuFves  are  less  concerned  about   management  of  data  security  and  pricing  models.  They  cite  poor  communicaFon,  lack  of  standardizaFon  and  lack     of  trust  or  confidence  in  IT  as  the  biggest  roadblocks  to  alignment.   Base:    Business  =  128   ■  RESEARCH  SUMMARY  REPORT          Dual  PerspecFves  on  ITaaS:  A  review  of  IDG  Research  study  conducted  by  EMC  &  VMWare  
  • 8. 13%   46%   32%   9%   12%   41%   41%   5%   Frequently  -­‐  More  than  50%  of  the  $me   Occasionally  -­‐  Between  25%  and  50%  of  the  $me   Rarely  -­‐  Less  than  25%  of  the  $me   Never   FREQUENCY  WITH  WHICH  LOBS  TURN  TO  OUTSIDE  SERVICE  PROVIDERS     FOR  IT  SERVICES   IT   Business   How  frequently  are  lines  of  business  at  your  organizaFon  turning  to  outside  service   providers  when  they  need  IT  services?    (This  includes  IT  services  such  as  collaboraFon  and  file  sharing,  use   of  cloud-­‐based  business  applicaFons,  mobile  app  development,  big  data  analyFcs,  social  media  integraFon,  etc.)   Base:      IT=238;  Business  =  128           IT  execuFves  are  not  far  off  the  mark  in  esFmaFng  how  ooen  lines  of  business  turn  to  outside  service   providers  for  IT  services  –  more  than  half  of  all  respondents  report  this  happens  at  least  occasionally.   ■  RESEARCH  SUMMARY  REPORT          Dual  PerspecFves  on  ITaaS:  A  review  of  IDG  Research  study  conducted  by  EMC  &  VMWare  
  • 9. 41%   41%   40%   32%   25%   23%   21%   21%   Faster  service  delivery/$me  to  market   Ability  to  leverage  technical  exper$se  not  available  in-­‐house   Lower  costs   BeZer  applica$on  performance   Simpler/"Pay  per  use"  pricing  models   Promotes  increased  crea$vity  and  innova$on   Ability  to  try  services  before  purchase  or  make  a  small  investment  to  prove   business  value   Mobile  access  capabili$es   BIGGEST  ATTRACTIONS  FOR  LOB  LEADERS  TO  LEVERAGE  OUTSIDE  IT  SERVICE  PROVIDERS  –     BUSINESS  ONLY   What  are  the  biggest  agracFons  for  line-­‐of-­‐business  leaders  to  leverage  outside   service  providers  for  IT  services?       Base:  Business  =  128     Business  leaders  cite  faster  service  delivery,  the  ability  to  leverage  technical  experFse  and  lower   costs  as  the  top  agracFons  for  leveraging  outside  IT  service  providers.   ■  RESEARCH  SUMMARY  REPORT          Dual  PerspecFves  on  ITaaS:  A  review  of  IDG  Research  study  conducted  by  EMC  &  VMWare  
  • 10. How  saFsfied  is  the  business  with  the  performance  (upFme,  speed,  etc.)   of  the  following  enterprise  applicaFons  at  your  organizaFon?   55%   43%   41%   36%   34%   32%   Collabora$on  (email,  web  services,  social  media,  document   management)   Databases  (e.g.,  financial  records,  order  management,  customer  or   pa$ent  records)   Transac$on  processing   Scien$fic/engineering   Enterprise  Resource  Planning  (ERP)   Sales  force  automa$on/CRM   BUSINESS’  SATISFACTION  WITH  PERFORMANCE  OF  ENTERPRISE  APPLICATIONS     (%  Extremely/very  saFsfied)   Base:      Business  =  128           Business  execuFves  most  ooen  report  being  highly  saFsfied  with  the  performance  of   collaboraFon  and  database  applicaFons,  which  are  also  the  enterprise  applicaFons  most   ooen  deployed  to  a  private  cloud  currently.   ■  RESEARCH  SUMMARY  REPORT          Dual  PerspecFves  on  ITaaS:  A  review  of  IDG  Research  study  conducted  by  EMC  &  VMWare