The document discusses the rise of application-aware systems and the need for IT transformation. It makes three key points: 1) Business outcomes and innovation are becoming top priorities and KPIs for CIOs, requiring new IT strategies that are aligned with business goals. 2) The "Third Platform" of billions of connected devices, apps, and users is driving immense data growth and creating opportunities for competitive advantage through new technologies. 3) To address the challenges of rapid data growth and application explosion, there is a shift towards more integrated, application-aware infrastructure that is optimized for specific workloads through tighter software-hardware integration.

1. The dawn of Application aware systems
Avneesh Saxena
Group VP Research, IDC Asia/Pacific

2. Re-focusing the IT strategy “Lens”
Best in class
Smarter design & provisioning
Business outcome
IT Infrastructure
to address cost
driven solutions
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3. Shifting KPIs of CIOs driving new Intent
Q: what is the major change in your KPI from 2012 to 2013?
50%
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
Noteworthy
• Greater focus
on optimization
links to overall
business
priorities &
concerns among
the C-suite
Greater focus on
cost/biz process
optimization
ICT is now tied to A new KPI is tied to
business
innovations
outcomes/revenue delivered via ICT
solutions
• 55% = business
outcome +
innovation
Source: IDC APeJ C-suite Barometer 2013, N=1003 in AP; 496 CIO/CTO, 325 CMO & 182 CFO/other
LoB, April 2013
3

4. How to build IT strategy for better business
outcomes
 Building IT that helps in aligning with business
goals
• A more agile, flexible and tuned IT infrastructure
 Working with IT partners that understand the
whole spectrum from “silicon-to-service”
• Application aware/tuned hardware may get better
results
 Building interconnects into “third platform” to
build strategic advantage
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5. “Third Platform” Drives ICT Transformation
Trillions
Millions
of “Things”
of Apps
Billions
of Users
Hundreds of Millions
Tens of Thousands
of Users
of Apps
Millions
Thousands
of Users
of Apps
Source: IDC

6. 3rd Platform dashboard shows increasing
momentum
Source: IDC Asia/Pacific 4-Pillar Practice, 2012 (All data projected for 2013/by end of 2013
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7. However, current IT requires rapid
transformation
What do you think are your organization's top 2 challenges with respect to
leveraging its ICT resources?
Limited ICT budget
Growing complexity & varied user
requirements
Lack of required skill sets to effectively
execute ICT
Governance & regulations
Lack of understanding of new technologies
Lack of business unit stakeholders' buy-in
Lack of thought leadership in ICT strategy &
roadmap
Lack of or ineffective IT-business alignment
Other
0%
5%
10%
15%
20%
25%
Source: IDC APeJ C-suite Barometer 2013, N=1003 in AP; 496 CIO/CTO,
325 CMO & 182 CFO/other LoB, April 2013
30%
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8. Explosion in Devices and Data
Challenges the Datacenter
Data centers are the cornerstone of business…
Devices
2x
3x
2010
2015
Data
2010
2015
Users
2x
6x
2010
VMs
2015
2010
2015
…and Infrastructure needs to be tuned to the task…

9. Virtualization causing exploding application
portfolios
Units (M)
9,000,000
8,000,000
CAGR
2011-16
7,000,000
6,000,000
18.9%
5,000,000
4,000,000
16.3%
3,000,000
2,000,000
6.3%
1,000,000
Virtual Machines
2016
2015
2014
2013
2012
2011
2010
2009
-
2008
 Virtual machines become
‘nearly free’ and explode
 Smart connected device
units will double to 2 billion
by 2016
 IDC projects there will be 30
billion connected devices in
2020
 5.2 TB of data generation/
person drives real time
analytics
 Immersive media intensive
social media
 Adaptive web/cloud sourcing
x2
Physical Hosts
Total Server Shipment
+11x
Source: IDC APeJ Server Virtualization Tracker, Q4 2012
© IDC 2013
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10. Massive growth in data




Data Doubles Every 2 Years
Emerging Markets Overtake Mature
5,200 GB Data/Person
Machine Generated Data: +15x
2.8ZB of Data
created in 2010
40ZB of Data
created in 2020
Digital Universe
Grows 50x
Source: IDC Digital Universe Study Sponsored by EMC, Dec. 2012
Note: Digital Universe represents data creation, not data storage
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11. The dawn of Application-aware
systems
Disaggregated:
 Modular – disparate
hardware and
software
 Multi-vendor and
best of breed
components
 High degree of inhouse or third party
customization
Integrated:
• Integrated – Software
optimized/engineered
solutions
• Single or few vendor
integrated infrastructure
stacks
• Pre-engineered and
tuned to workloads or
eco-system
© IDC 2013
Source: IDC Link “The Dawn of Application Engineered Systems”; Asia/Pacific Converged and Integrated Infrastructure
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12. Application rationalization could drive a
more focused Storage strategy
High
Low Strategic Value
High Priority
HR
Priority
File
Print
Cost effective
apps
AP/AR
Low Strategic Value
Low Priority
Redirect
Low
12
Confidential
Database
CRM
Reengineer
Web
Low
ERP
Decision
High Performance
Support
Payroll
Retain
Email
High Strategic Value
High Priority
Scale intensive
Social
Biz
High Strategic Value
Low Priority
Financial
Virtualized
Analytics
Collaboration
Engineering
Data
analytics
Supply
Chain
Reprioritize
Business Value
High
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13. Case in Point: Database interaction is going
to phenomenally increase…
Q. Does your organization use or have plans to deploy the following technologies?
Relational database
Document Store (e.g. MongoDB, SimpleDB,
CouchDB, etc.)
Data warehouse/ business analytics
appliances (software pre-integrated with…
In-memory technologies (Database,
Datawarehouse, Visualization)
Columnar or column-oriented database
Graph Databases (e.g. InfiniteGraph,
AllegroGraph, Neo4J, etc.)
Key Value Stores (e.g. Cassandra, Dynamo,
BigTable, etc.)
Complex Event Processing
Hadoop/Mapreduce (e.g. Apache Hadoop,
Cloudera, Big Insights, MapR, Hortonworks)
0
Already deployed
0.25
0.5
Planning to do so in the next 12-18 months
0.75
No plans/don't know
Source: IDC APEJ Big Data & Enterprise Apps Survey, Sep 2013, n=757
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14. ….and storing and analyzing data will require
tighter play between hardware and software
Q. Does your organization use or have plans to deploy the following technologies?
Transactional data
Text from communication systems: e.g. email,
forms, instant messaging, etc
Log files
Chatter on social networks
Sensor/ Machine to Machine data
Web logs (click stream)
GPS data from mobile devices
Video
Audio
0%
Captured
25%
50%
Analyzed
Source: IDC APEJ Big Data & Enterprise Apps Survey, Sep 2013, n=757
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15. Software integration is viewed as a key
strength for current integrated systems
Q. Why Preference for Converged/Integrated over general purpose systems
Tighter integration of the software
solution with the hardware helps in
the overall performance
Easier to manage expectations since
there is one vendor responsible for
both hardware & software
Better price point since the software
& hardware costs are bundled & less
than what we pay separately
Our current software solutions are
from the same company & we feel
this is a good value proposition
0%
10% 20% 30% 40% 50% 60%
Source: IDC Asia/Pacific Continuum Survey, 2013 (APeJ N=216)
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16. Essential Guidance
 Business outcome driven IT will be the norm
with enterprises, and we will continue to see
them provision and build it differently
 3rd Platform will attract a lot of interest and
investments, and most enterprise-IT will have to
find ways to connect into this opportunity
 Greater agility, reliability, and better ROI
expectations will drive new IT infrastructure
frameworks
 Application aware systems will slowly gain
ground as customers realize the business value
of these investments
© IDC 2013
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17. Thanks!
Avneesh Saxena
asaxena@idc.com
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18. Customer expansion and innovative
offerings are critical business needs
2011
2012
2013
1
Escalating cost of
operations &
expansion
Acquiring new
customers &
reducing churn
Finding new
customers/
segments
2
Identifying new
innovations to gain
competitive edge
Expanding into
new markets
Escalating cost of
operations
3
Acquiring new
customers &
reducing churn
Identifying new
innovations to gain
comp. edge
Finding new
innovations to
compete
Source: IDC APeJ C-suite Barometer 2013, N=1003 in AP; 496 CIO/CTO,
325 CMO & 182 CFO/other LoB, April 2013
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