1
How do corporate executives see the

IT ORGANIZATION?

Too often, as a

COST CENTER
Or, worse, as a roadblock

2
“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
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
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
When the IT mindset shifts from

TACTICAL to
STRATEGIC

6

© 2013 VMware, Inc. – Proprietary and Confidential
When IT and LOB managers

WORK
TOGETHER

7

© 2013 VMware, Inc. – Proprietary and Confidential
When business users see IT as

RELIABLE,
AGILE &
RESPONSIVE

8

© 2013 VMware, Inc. – Proprietary and Confidential
And when it’s all supported by

WIDE-RANGING
VIRTUALIZATION
&
SOPHISTICATED
AUTOMATION

9

© 2013 VMware, Inc. – Proprietary and Confidential
Then an organization has achieved

IT as a SERVICE

10

© 2013 VMware, Inc. – Proprietary and Confidential
According to a 2013 VMware
customer survey, growing numbers
of IT organizations are on a

11

JOURNEY
TO ITaaS
…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
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
ITaaS organizations
outperform less-mature
peers in delivering on

14

BUSINESS
GOALS
And increased
virtualization, the
foundation of ITaaS, is

15

PREDICTED
INTO 2015
ROI GROWS

16

When IT transforms
to an ITaaS organization
And more of IT
budgets can go toward

17

INNOVATION
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%
Where is your organization?
Where are you headed?

19
For more information and news
Follow Us: @vmwaresddc

Data Sourced from VMware 2013 Journey to IT as a Service Survey
20

VMware ITaaS: Tomorrow's IT Organization

  • 1.
  • 2.
    How do corporateexecutives see the IT ORGANIZATION? Too often, as a COST CENTER Or, worse, as a roadblock 2
  • 3.
    “Doing More, withLess” 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.
    The most successful enterprisestake 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.
    This shift islead 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.
    When the ITmindset shifts from TACTICAL to STRATEGIC 6 © 2013 VMware, Inc. – Proprietary and Confidential
  • 7.
    When IT andLOB managers WORK TOGETHER 7 © 2013 VMware, Inc. – Proprietary and Confidential
  • 8.
    When business userssee IT as RELIABLE, AGILE & RESPONSIVE 8 © 2013 VMware, Inc. – Proprietary and Confidential
  • 9.
    And when it’sall supported by WIDE-RANGING VIRTUALIZATION & SOPHISTICATED AUTOMATION 9 © 2013 VMware, Inc. – Proprietary and Confidential
  • 10.
    Then an organizationhas achieved IT as a SERVICE 10 © 2013 VMware, Inc. – Proprietary and Confidential
  • 11.
    According to a2013 VMware customer survey, growing numbers of IT organizations are on a 11 JOURNEY TO ITaaS
  • 12.
    …And so isVMware 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.
    IT-as-a-Service Can HelpIT 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.
    ITaaS organizations outperform less-mature peersin delivering on 14 BUSINESS GOALS
  • 15.
    And increased virtualization, the foundationof ITaaS, is 15 PREDICTED INTO 2015
  • 16.
    ROI GROWS 16 When ITtransforms to an ITaaS organization
  • 17.
    And more ofIT budgets can go toward 17 INNOVATION
  • 18.
    That’s why ITbudgets 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.
    Where is yourorganization? Where are you headed? 19
  • 20.
    For more informationand news Follow Us: @vmwaresddc Data Sourced from VMware 2013 Journey to IT as a Service Survey 20

Editor's Notes

  • #19 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.