VMware ITaaS: Tomorrow's IT Organization

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How do corporate executives see the IT organization? Too often, as a cost center or roadblock. The most successful enterprises take a different approach. They view IT as a strategic asset and the IT budget as an investment in innovation. See how here.

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  • IT Budget as a Percentage of Revenues Corporate budgets are a reflection of priorities: More funding is given to those who can demonstrate their ability to contribute to reaching the company’s strategic goals. For companies in the final phase of the Journey—ITaaS—the IT departments have done so decisively. In 2013, 53 percent of ITaaS organizations reported increased revenue generated by new IT applications and services (Figure 18). On average, these organizations were able to generate 26 percent more revenue than before. This strategic contribution to business results has translated into ITaaS organizations securing larger budgets as a percentage of revenue. When comparing investment-minded ITaaS organizations with budget-minded IT production organizations, the survey shows as much as a 60 percent difference in budget allocations as a percentage of revenue.
  • VMware ITaaS: Tomorrow's IT Organization

    1. 1. 1
    2. 2. How do corporate executives see the IT ORGANIZATION? Too often, as a COST CENTER Or, worse, as a roadblock 2
    3. 3. “Doing More, with Less” Is No Longer Enough INFLECTION POINT TECHNOLOGY ERAS Mainframe Client-Server Mobile-Cloud THE PROBLEM STEADY IT BUDGETS 3 ABILITY OF IT TO DELIVER BUSINESS EXPECTATIONS IT CAN’T KEEP UP WITH INCREASING BUSINESS EXPECTATIONS
    4. 4. The most successful enterprises take A DIFFERENT APPROACH They view IT as a STRATEGIC ASSET and the IT budget as an investment in innovation 4 © 2013 VMware, Inc. – Proprietary and Confidential
    5. 5. This shift is lead by IT leaders who are combining technological advances with A NEW WAY OF OPERATING to become more service oriented and more focused on delivering business value 5 © 2013 VMware, Inc. – Proprietary and Confidential
    6. 6. When the IT mindset shifts from TACTICAL to STRATEGIC 6 © 2013 VMware, Inc. – Proprietary and Confidential
    7. 7. When IT and LOB managers WORK TOGETHER 7 © 2013 VMware, Inc. – Proprietary and Confidential
    8. 8. When business users see IT as RELIABLE, AGILE & RESPONSIVE 8 © 2013 VMware, Inc. – Proprietary and Confidential
    9. 9. And when it’s all supported by WIDE-RANGING VIRTUALIZATION & SOPHISTICATED AUTOMATION 9 © 2013 VMware, Inc. – Proprietary and Confidential
    10. 10. Then an organization has achieved IT as a SERVICE 10 © 2013 VMware, Inc. – Proprietary and Confidential
    11. 11. According to a 2013 VMware customer survey, growing numbers of IT organizations are on a 11 JOURNEY TO ITaaS
    12. 12. …And so is VMware ITAAS MILESTONES LAUNCHED PRIVATE CLOUD 2012 JUNE 4 TENANTS 10,000 VMS 2013 JAN AUTOMATION OF SDLC ENVIRONMENT reduces provisioning time from 4 weeks to 36 hours (95%), saving $4.5M annually BUSINESS RESULTS 12 9 TENANTS 38,000 VMS 12 TENANTS 50,000 VMS 2013 MID 2013 END VMWORLD HANDSON LABS Hands-on-Labs techs reduced from 100 to 5 with zero downtime. Costs reduced by 95% MORE SERVICES 2014 ENTERED NEW MARKET IT resource optimization allowed VMW to create new subscription and rating engine for vCloud Hybrid Services
    13. 13. IT-as-a-Service Can Help IT Meet Executive Demands TECHNOLOGY ERAS Mainframe Client-Server Mobile-Cloud ITaaS “MULTIPLIER” STEADY IT BUDGETS 13 ABILITY OF IT TO DELIVER BUSINESS EXPECTATIONS IT at the Speed of Business
    14. 14. ITaaS organizations outperform less-mature peers in delivering on 14 BUSINESS GOALS
    15. 15. And increased virtualization, the foundation of ITaaS, is 15 PREDICTED INTO 2015
    16. 16. ROI GROWS 16 When IT transforms to an ITaaS organization
    17. 17. And more of IT budgets can go toward 17 INNOVATION
    18. 18. That’s why IT budgets at ITaaS companies are growing of companies report increased revenue generated by new IT applications and services 53% The average revenue increase was 60% Difference 5% IT Production 18 8% IT as a Service 26%
    19. 19. Where is your organization? Where are you headed? 19
    20. 20. For more information and news Follow Us: @vmwaresddc Data Sourced from VMware 2013 Journey to IT as a Service Survey 20

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