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The Path to Enterprise IT Transformation

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In todays’ digital economy, enterprises expect more from the IT organization. They want applications delivered faster, and they want IT infrastructure to perform at a higher level than ever before. Consequently, IT operations must transform itself to better serve the business.

Llearn about top strategies for transforming IT in the digital era!

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The Path to Enterprise IT Transformation

  1. 1. IT & DATA MANAGEMENT RESEARCH, INDUSTRY ANALYSIS & CONSULTING The Path to Enterprise IT Transformation Shamus McGillicuddy Senior Analyst, EMA shamus@emausa.com @shamusEMA
  2. 2. IT & DATA MANAGEMENT RESEARCH, INDUSTRY ANALYSIS & CONSULTING Agenda • Digital Transformation Requires IT Transformation • How Do You Transform IT? • Modernize IT Management Systems • Leverage the Cloud for Agility and Resiliency • Maximize Resources: Focus on What Your People Do Best Slide 2 © 2016 Enterprise Management Associates, Inc. IT & DATA MANAGEMENT RESEARCH, INDUSTRY ANALYSIS & CONSULTING
  3. 3. IT & DATA MANAGEMENT RESEARCH, INDUSTRY ANALYSIS & CONSULTING IT and Digital Transformation: Two Sides of the Same Coin • What is “transformation”? • Digital transformation – Optimize business or organizational effectiveness via digital and IT services • IT transformation – Optimize IT performance for business or organizational needs and outcomes Slide 3 © 2016 Enterprise Management Associates, Inc. *EMA, “Digital and IT Transformation: A Global View of Trends and Requirements,” September 2015. • Digital transformation is more effective when pursued in parallel with IT transformation* • 50/50 partnerships between IT and the business are essential
  4. 4. IT & DATA MANAGEMENT RESEARCH, INDUSTRY ANALYSIS & CONSULTING Characteristics of Successful IT Transformation • Start with assessment of management tools • The top two external partners for future transformation efforts:  #1. Application management software vendors  #2. IT operations management software vendors • The cloud is essential • 95% of “extremely successful” transformation initiatives include cloud technologies  Versus just 67% of “somewhat successful” transformation efforts • Get the most out of what you have • IT budgets are growing but organizations still struggle with a lack of resources Slide 4 © 2016 Enterprise Management Associates, Inc. Source: EMA, “Digital and IT Transformation: A Global View of Trends and Requirements,” September 2015
  5. 5. IT & DATA MANAGEMENT RESEARCH, INDUSTRY ANALYSIS & CONSULTING Modernize IT Management Systems
  6. 6. IT & DATA MANAGEMENT RESEARCH, INDUSTRY ANALYSIS & CONSULTING Overcrowded IT Management Toolkits Challenge IT Operations Symptoms of overcrowded & outdated IT management toolkits Leading challenges to network operations success* Visibility gaps between tools #1. Lack of end-to-end network visibility Operational silos/no collaboration #3. Lack of visibility/control into external cloud services #6. Lack of cross-domain visibility Fractured workflows #5. Fragmented management tools Slide 6 © 2016 Enterprise Management Associates, Inc. * EMA, “Network Management Megatrends 2016,” April 2016.
  7. 7. IT & DATA MANAGEMENT RESEARCH, INDUSTRY ANALYSIS & CONSULTING Overcrowded Network Management Toolkits Lead to Unstable Networks • 34% of IT organizations use 11 or more tools to monitor and troubleshoot networks. 21% use only 1 to 3 tools. • Organizations using 11+ tools  Detect only 52% of network problems before end users are affected  Operate very unstable networks  50%+ report having at least several network outages per week • In contrast, organizations using 1 – 3 tools  Detect 71% of problems before end users are affected  Operate more stable networks  39% say they experience no more than 1 or 2 outages a year Slide 7 © 2016 Enterprise Management Associates, Inc. Source: EMA, “Network Management Megatrends 2016,” April 2016.
  8. 8. IT & DATA MANAGEMENT RESEARCH, INDUSTRY ANALYSIS & CONSULTING Modernization Starts With Opportunities for Consolidation & Integration • Enterprises know a crowded toolkit is a problem • Of organizations using 1 – 3 network monitoring & troubleshooting tools  52% actively fight to maintain their current number • Of organizations using 11+ tools  60% actively consolidate wherever possible • Opportunities for cross-silo integration • Enterprises require network management tool integration with  Virtual systems management (49%)  Security monitoring (47%)  Application performance management (37%) Slide 8 © 2016 Enterprise Management Associates, Inc. Source: EMA, “Network Management Megatrends 2016,” April 2016.
  9. 9. IT & DATA MANAGEMENT RESEARCH, INDUSTRY ANALYSIS & CONSULTING Tool Modernization Requires Visibility Into New & Emerging Technologies • Management and monitoring tools must provide control and visibility of the new technologies that enterprises leverage for transformation • Public cloud • Virtual infrastructure • Containers • Converged infrastructure • IoT Slide 9 © 2016 Enterprise Management Associates, Inc.
  10. 10. IT & DATA MANAGEMENT RESEARCH, INDUSTRY ANALYSIS & CONSULTING Example: Network Management Extend Beyond Your Networks Slide 10 © 2016 Enterprise Management Associates, Inc. 37% 35% 35% 33% 32% 31% 30% 27% 24% 1% Customizable reporting Log file analysis Specific support for virtual server environments Specific support for cloud environments Specific support for virtualized network devices APIs for integration with other tools Support for multiple user/operator constituencies Service/application-awareness Task/workflow-oriented UI Other Which of the following network management product features add significant value to your organization? Source: EMA, “Network Management Megatrends 2016,” April 2016.
  11. 11. IT & DATA MANAGEMENT RESEARCH, INDUSTRY ANALYSIS & CONSULTING Leverage the Cloud for Agility and Resiliency
  12. 12. IT & DATA MANAGEMENT RESEARCH, INDUSTRY ANALYSIS & CONSULTING Cloud Is Integral to Transformation Initiatives • Cloud technologies offer • Agility • Elasticity • Reduced CapEx • Resiliency Slide 12 © 2016 Enterprise Management Associates, Inc. Source: EMA, “Digital and IT Transformation: A Global View of Trends and Requirements,” September 2015. • Top 2 impacts of cloud technology on digital & IT transformation initiatives • Accelerates transformation (32%) • Promotes more dialog with the business (29%) • Cloud technology is involved in 85% of digital & IT transformation initiatives
  13. 13. IT & DATA MANAGEMENT RESEARCH, INDUSTRY ANALYSIS & CONSULTING Make Sure IT Management Tools Are Cloud-Ready Cloud technologies are driving management tool decisions Slide 13 © 2016 Enterprise Management Associates, Inc. Source: EMA, “Network Management Megatrends 2016,” April 2016. • Top IT initiatives that influence network management priorities  Server virtualization (49%)  Internal cloud transformation (37%)  Software-defined data centers (35%) • Hybrid cloud infrastructure drives new management tool investment  51% of hybrid cloud adopters acquire new NPM solutions to support their investments
  14. 14. IT & DATA MANAGEMENT RESEARCH, INDUSTRY ANALYSIS & CONSULTING Evaluate Cloud-Readiness of Your Infrastructure Monitoring Tools • Identify your business cloud strategy • Internal vs. external vs. hybrid • Providers? AWS, Azure, Google, or someone else • Private cloud platforms? OpenStack, commercial solutions • What kinds of applications are migrating to the cloud? • Cloud requirements for your IT monitoring tools • Collect telemetry from internal and external cloud environments • Present and analyze cloud telemetry • Contextualize cloud resources with end-to-end infrastructure • Provide reports to business stakeholders Slide 14 © 2016 Enterprise Management Associates, Inc.
  15. 15. IT & DATA MANAGEMENT RESEARCH, INDUSTRY ANALYSIS & CONSULTING Maximize Resources: Focus on What Your People Do Best
  16. 16. IT & DATA MANAGEMENT RESEARCH, INDUSTRY ANALYSIS & CONSULTING IT Organizations Have to Do More With Less “Lack of people and budget” is the #2 challenge to network operations success* Slide 16 © 2016 Enterprise Management Associates, Inc. * EMA, “Network Management Megatrends 2016,” April 2016. Lack of budget: IT transformation often requires new investments Lack of people: The technical labor market is tight
  17. 17. IT & DATA MANAGEMENT RESEARCH, INDUSTRY ANALYSIS & CONSULTING IT Outsourcing: Not About Reducing Costs • Put your people on the tasks that allow them to deliver the most value to the organization • 51% of enterprises outsource some aspect of network management  Up from 36% in 2014* • Motivations for outsourcing** • 57% say it enables focus on core business functions • 47% say it solves capability issues * EMA, “Network Management Megatrends 2016,” April 2016. ** Deloitte Consulting LLP, “2016 Global Outsourcing Survey,” June 2016. Slide 17 © 2016 Enterprise Management Associates, Inc.
  18. 18. IT & DATA MANAGEMENT RESEARCH, INDUSTRY ANALYSIS & CONSULTING Ineffective IT Outsourcing Will Hurt the Business • Be careful • 15% of enterprises say ineffective outsourcing is a major challenge to network operations success • Evaluate which aspects of your operation are suited for outsourcing  What are your people good at? What value do they offer? • Define requirements and best practices for outsourcing • Validate MSP performance  30% of outsourcing organizations use old monitoring tools to monitor MSP activity Slide 18 © 2016 Enterprise Management Associates, Inc. Source: EMA, “Network Management Megatrends 2016,” April 2016.
  19. 19. IT & DATA MANAGEMENT RESEARCH, INDUSTRY ANALYSIS & CONSULTING IT & DATA MANAGEMENT RESEARCH, INDUSTRY ANALYSIS & CONSULTING The Roundup • IT transformation is the foundation of digital transformation • IT transformation starts with management tool modernization • The cloud can accelerate transformation success • Outsource strategically and allow your IT organization to focus on what delivers value directly to the business Slide 19 © 2016 Enterprise Management Associates, Inc.
  20. 20. IT & DATA MANAGEMENT RESEARCH, INDUSTRY ANALYSIS & CONSULTING© 2017 Enterprise Management Associates, Inc. Get Free Research from EMA analysts http://www.enterprisemanagement.com/freeResearch 20

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