SlideShare a Scribd company logo
2009 Global IT Leadership Report Series
Part 1
How a new breed of IT leaders
are powering their companies
through the economic crisis.
Rising to the
Challenge
IT Infrastructure-as-a-Service
2009 Global IT Leadership Report Series Part 1	 2
Rising to the Challenge
How a new breed of IT leaders are powering their companies
through the economic challenge
Companies around the globe are facing
previously unimagined organisational and
economic challenges. Savvis is committed to
helping the business community to survive
and thrive and that’s why in January 2009, we
commissioned Vanson Bourne to undertake a
global market research project to interview over
300 IT leaders in mid-to-large enterprises in the
United States, United Kingdom and Singapore.
We wanted to learn about their challenges and
priorities as well as understand how they intend
to use technology to meet their objectives in the
current business climate. We’d like to share their
insights with you.
The findings reiterated what most of us know,
that many companies are struggling and as a
result, IT management are reducing costs on
a wide scale to better align their businesses
to cope with the current global economic
challenges. However, what also came across
loud and clear in the research is that a new
breed of IT leader is emerging. These IT leaders
are forward-thinking and understand how to
use technology as a strategic business tool.
Their adaptable approach to organising their
company’s IT — and their IT infrastructure —
places them in a better position to power their
business through these challenging times.
We can all learn from these IT leaders. They
are open to discovering new service models
that enable them to deliver competitive
advantage to their businesses. They are
utilising strategies to drive efficiencies and
synergies, and leveraging technologies like
virtualisation, utility computing and cloud
computing to reduce costs and increase
organisational efficiencies. The end result, as
our research shows, is that their companies
are doing “well” or “very well” through the
downturn.
While companies are feeling pain during the
global recession, it’s imperative for IT leaders to
search for opportunities to operate differently
today while maintaining a sharp focus on the
longer-term. Outsourcing your IT infrastructure
to a trusted provider can deliver cost-savings
to your organisation, improve your return on
investments and enhance your ability to scale
for the future.
Savvis provides IT business solutions delivered
through a highly scalable global IT infrastructure
that is designed to reduce capital expense
and combat the rising costs of bandwidth,
real-estate, energy, staff and expertise. Forty
percent of the top 100 companies on the
Fortune 500 use Savvis as their trusted provider
for outsourcing their IT infrastructure.
We invite you to meet with Savvis to assess
your current approach to managing your IT
infrastructure. We’ll look at your challenges
and give you a new perspective on how your
IT infrastructure is managed so you can better
control your costs while positioning your
business for a successful future.
To discuss how Savvis can help you, contact
us at emea-sales@savvis.net.
Phil Koen, CEO
Savvis, Inc.
2009 Global IT Leadership Report Series Part 1	 3
The current global business climate —
survival of the fittest
Against a backdrop of stock markets in turmoil
and organisations on the brink of collapse,
many industry analyst firms are revising their
estimates on IT spending for 2009. There is no
doubt that the global recession is biting harder
than many of us ever imagined.
The continued downward spiral of the global
economy led IDC, a provider of global IT
research and advice, to change its earlier
predictions about worldwide IT spending in
2009, revising its estimate of 2.6% growth to
just 0.5%. “Fourth quarter data from a number
of key markets and geographies clearly show
that companies have been very quick to pull
back their spending,” said John Gantz, Chief
Research Officer at IDC.1
With the main focus on driving costs out of
the business, are companies losing sight of
their strategies just to survive? What is sure is
the competitive environment will be tougher
than ever throughout 2009. The pressure is
on IT leaders to continue innovating, create
competitive advantages and stay “lean and
mean” by driving efficiencies through the
organisation to remain aggressive in the
marketplace.
The stakes have been raised and our research
reveals there is a greater willingness among
IT leaders to consider innovative approaches,
offers and advice from reputable vendors. With
52% of all IT leaders globally seeing their cost
savings derived from reducing infrastructure
costs, a real opportunity exists for them to
re-evaluate their existing IT infrastructure and
consider a different approach that will have
both short-term and long-term benefits. One
of these is managed services.
The new breed of IT leaders —
powering your company through
the economic challenge
The current global economic downturn is having
a profound effect on businesses, with 49% of
IT heads stating that their organisation is “not
doing well” currently. However, despite the
climate of economic gloom, 51% of IT leaders
think their companies are doing “well” or “very
well” and are continuing to grow despite the
global recession.
Virtualisation strategy
Reducing staff levels
Reducing infrastructure costs
Standardising IT
infrastructure solutions
Consolidating infrastructure
Reducing staff levels
Financial
Services
Media
Health
Business &
Professional
Services
Public Sector
Retail
Top cost savings and efficiencies
in 2009 by industry
Financial
Media, Leisure &
Entertainment
Healthcare
Business & Professional
Services
Manufacturing
Distribution &
Transportation
Retail & E-tail
Technology &
Communications
Public Sector
Companies “Doing Well” by Sector
0 20% 40% 60%
1
source: computing.co.uk, 27 February 2009
2009 Global IT Leadership Report Series Part 1	 4
For companies doing well, what have their IT
leaders done to rise to the challenge and remain
buoyant during the recession?
How did they prepare for the economic downturn
and what lessons can be learned from them?
A 10-point guide to success in the recession.
1. 	 Modify your business plan
and manage the expectations
of your stakeholders, re-forecast
regularly, and have a contingency
plan in place to deal with market
fluctuations.
2. 	Avoid major cost-cutting
exercises without first asking
“What does IT enable?” rather
than “What does IT cost?”
3. 	Control operating expenditures
and overall cash outlay.
4. 	Maintain the focus on IT as a
strategic enabler to the business,
rather than being a cost centre.
5. 	Focus on delivering competitive
advantage and innovation.
6. 	Drive efficiencies by reducing
infrastructure costs and moving to
a service model. Keep enterprise
cloud computing on your radar.
7.	 Consider innovative approaches,
offers and strategies from
reputable vendors and use
them in reducing your costs.
8. 	Look for specialist service
providers to run some operational
elements of your organisation
and explore outsourcing the
non-critical elements of your
IT infrastructure.
9.	 Consolidate the number of
IT suppliers you use.
10.	Don’t take your eye off the long
term, reducing costs is important
in a downturn but not at the
expense of a slower or failed
business recovery.
2009 Global IT Leadership Report Series Part 1	 5
Get on top of the numbers and
communicate
Unsurprisingly, a higher proportion of the IT
heads that said their companies are currently
not doing well during the downturn have cut
IT costs. Nearly half of them admit that they
should have modified their business plans to
account for market conditions. In contrast,
fewer of the IT leaders who are enabling their
companies to do well during the downturn have
cut costs. Many more of them have contingency
plans in place for market fluctuations and
they are more likely to have managed their
stakeholder expectations.
Most IT organisations follow an annual IT
budgeting process and adjust their budgets
based on changing economic and business
conditions. According to IT research and
advisory firm Gartner2
, many organisations
are reviewing and revising IT spending levels
on a quarterly or even monthly basis: a sound
recommendation and one that will help
businesses to stay on top of their performance
during times of fluctuating markets.
Ask “what does IT enable?”
instead of “what does IT cost?”
IT budgets are under pressure in 2009, with
many industry analysts forecasting flat or
minor budgetary growth. Our research reveals
that respondents often cited considerably
higher spending, depending on the size and
scope of the company. Market sectors also
had large variables. The highest percentage
of respondents in Financial Services, Public
Sector and Professional Services stated that
their IT budget will represent between 4%-6% of
revenues and Retail, Leisure and Entertainment
varied further at between 2%-6%.
Our findings also revealed that on average,
21% of total IT budgets will be allocated to
outsourcing some or all of their IT infrastructure.
The IT leaders who are enabling their companies
to do well spend 18% more of their revenue
on IT than those not doing well. In addition,
these successful companies spend a significant
amount more — up to 32% more — of their IT
budgets on infrastructure outsourcing.
Whilst 67% of all IT leaders are under pressure
to do more with a reduced budget, fewer
of the IT leaders whose companies remain
buoyant in the downturn feel this pressure.
Instead, they are directing their efforts at more
strategic activities, enabling their business
to deliver competitive advantage and gain
efficiencies throughout the company. They
are exploring infrastructure consolidation and
reducing infrastructure costs — ensuring their
organisations are “lean and mean” and retain
their agility.
2
source: Gartner IT spending and staffing report 2009, 27 January 2009
Average
Spend
$37M
Companies
Not Doing Well
$30M
Companies
Doing Well
$42M
Budgets Allocated to
Infrastructure Outsourcing
Average IT Outsourcing Spend is up to 32%
Higher for Private Sector Companies Doing Well
Public sector data was excluded from this question
as revenue is not reported.
2009 Global IT Leadership Report Series Part 1	 6
Do what your business does best
The IT leaders whose organisations are doing
well through the downturn know only too well
that IT can deliver competitive advantage to
their company. In fact, 69% see focusing IT
resources on developing and/or managing
business critical applications as a key driver
towards IT delivering competitive advantages
to the company.
“If you’ve got a limited number of highly
qualified people, you don’t want them
changing backup tapes, loading anti-virus
software, or patching servers. You want
them thinking about how to get flight data
down from an Airbus, or doing capacity
planning for your ecommerce site and other
things that grow the value of the business,”
said Andy Caddy, Head of IT Architecture
at easyJet.
“Choosing Savvis meant the headaches
went away. We got one of the best data
centres in the UK — if not in all of Europe
— along with some of the most capable
IT professionals I’d ever met to look after
all our systems. Frankly, turning our IT
infrastructure over to Savvis couldn’t
have happened soon enough for me,”
added Caddy.
Finding more cost effective IT infrastructure
solutions, enabling faster data access across
the organisation, enabling collaboration to
gain operational efficiencies and getting
products and services to market faster than the
competition all feature highly on the competitive
advantage agenda of successful IT heads.
Savvis Customer: easyJet
Line of business: low-cost European
airline that also offers car rental and
hotel booking services
Profile:
•	6,200 workers across 18 bases
•	Serves 120 destinations with a fleet
	 of 140 aircraft
•	1,000 flights daily and 37 million 	 	 	
	 passengers in 2007
•	95% of seats sold over the internet, 	 	
	 making it one of Europe’s biggest
	 internet retailers
•	Almost 1.8 million revenues in 2007
Challenge:
•	Leveraging technology core to easyJet’s 		
	 ability to grow profitably
•	Limited number of highly qualified IT
	 people who needed to focus on core
	 business activities
•	Scalable and flexible IT infrastructure
	 required to support high growth
•	Security and disaster recovery high
	 on the agenda
Solution:
Savvis provides easyJet with a fully
managed solution that integrates real-
time hosting and network solutions to
support easyJet’s operations, including
easyJet.com, its reservations and flight
operations systems, as well as its e-mail
and financial applications.
easyJet
2009 Global IT Leadership Report Series Part 1	 7
With a 16-year background in finance and
planning prior to running Savvis’ EMEA
operation, controlling costs is a subject that’s
close to my heart. What’s clear is that if your
company’s situation is serious and you have a
cash flow issue, you may have no choice but
to eliminate costs quickly.
My word of caution is that if you eliminate spend
on longer-term strategic projects and anything
that is not a tactical priority, you may survive
2009 but could miss out on the recovery. The
key is to continually look for ways to trim costs
whilst redirecting your IT spend towards those
activities that differentiate your business.
The costs of managing and maintaining IT
infrastructure are increasing, and at the same
time becoming more and more complex.
There are now many alternatives available
for enterprises ranging from in-house DIY
solutions, to fully managed services. A business
must determine what involvement, if any, the
operation of its IT infrastructure has in creating
a competitive advantage.
The key is that service providers design,
purchase, configure, maintain and support
IT infrastructure for a living. Through heavy
investment in systems, people and process,
providers can operate IT Infrastructure far
more efficiently than an enterprise. They can
buy hardware, software, electricity and other
essentials for a lower cost than most businesses
and can repurpose or share platforms with other
clients to get economies of scale. This, plus
the benefits gained from superior design, 24/7
support, uptime and a quicker time to market
means the gap between the value that
a service provider can offer and the value
that an enterprise can provide is growing
wider as time goes on.
Brian Klingbeil
Managing Director EMEA, Savvis
Stay on top of emerging technologies
There is a large gap between the beliefs of
the IT executives whose businesses are not
doing well and those that are when it comes
to tapping into new technologies. IT leaders
who are enabling their companies to flourish
are much more likely to consider using new
technologies to deliver a competitive edge.
Cloud computing is one relatively new solution
that is now the buzzword of the day and has
been talked about in the media for quite some
time — but do IT leaders know what it is and
the benefits it can bring?
One in three IT heads we interviewed are unsure
about cloud computing and the benefits it
can offer in the current economic climate. The
remaining two-thirds of IT leaders understand
what cloud computing is. Benefits include
better cost control, optimal performance at
critical periods and versatility of infrastructure
availability.
Despite the confusion, 72% of all IT leaders
believe cloud computing will play an important
role in the future of IT, helping companies
gain efficiencies and reduce cost. 59% of
respondents stated that it will be a priority
for them in the future.
Cloud computing will
play an important role
in the future of IT in
helping companies
gain efficiencies and
reduce costs.72%
28%
Agree
Disagree
2009 Global IT Leadership Report Series Part 1	 8
Stay “lean and mean” to compete
in your market
Of those IT leaders whose companies are
doing well in the current economic climate,
the majority said that their main focus in
driving efficiencies in 2009 will be to reduce
infrastructure costs. Many companies will also
seek to reduce staff levels and consolidate and
standardise their IT infrastructure to reduce
costs and gain efficiencies. Virtualisation was
identified as a key strategy to achieve this.
Open up to innovative approaches from
vendors — look for specialist capabilities
Hindsight is a wonderful thing. Unsurprisingly,
if IT leaders had known the recession was
coming, the one major initiative they would
have undertaken in advance is to ensure
costs were trimmed as much as possible.
Our research shows that of those companies
that are struggling, nearly half of them would
have focused on cutting costs in advance.
However, successful IT leaders would also have
worked more closely with their suppliers to gain
IT infrastructure efficiencies.
“The key is to look for a reputable service
provider who can work with you to develop
a roadmap that will enable you to maximise
your cost-efficiencies by increasing the
utilisation of your IT infrastructure whilst
consolidating to reduce costs. The roadmap
should be flexible and allow you to move as
much, or as little, of your infrastructure into a
data centre or fully managed environment as
is appropriate.” says Caddy at easyJet.
Consolidate your IT suppliers
Our research shows that, on average,
organisations work with at least three to five
IT infrastructure suppliers, and companies are
investing 19 hours per week managing supplier
relationships. That’s just over two and a half
man-days per week.
Mid-market organisations tend to spend around
two days per week managing suppliers, but this
figure more than doubles to nearly five and a
half days per week, as companies grow beyond
10,000 employees.
56% of all IT leaders believe that there is
merit to the concept of consolidating and
outsourcing the number of IT suppliers
across the network, hosting and security
infrastructure as a way of reducing costs.
IT heads enabling their company to prosper
throughout the downturn are more likely to
consider consolidating and outsourcing the
number of IT suppliers. The benefits include
saving man-hours in managing suppliers
alongside the capacity to re-direct staff
into more business-critical areas. In addition,
the ability to improve accountability, and
make it easier to pinpoint that accountability,
makes outsourcing and consolidating more
attractive.
Reducing
infrastructure
costs
Where companies see their cost savings or efficiencies
coming from in 2009
Reducing
Staff
levels
A virtualisation
strategy
Infrastructure
consolidation
Standardising
IT infrastructure
solutions
Companies “Doing Well”
49% 44% 48% 44% 40%
“Using virtualisation will result in server and
device consolidation. These reductions mean
less capital spend, lower power consumption,
lower maintenance costs, fewer human
resource support requirements and fewer
software licenses. But establishing large scale
benefits due to virtualisation depends on a
holistic approach impacting tools, processes,
roles, and skills across the IT organisation.
These impacts are often overlooked or not
completely addressed within the typical
enterprise.”
Bryan Doerr
CTO, Savvis
2009 Global IT Leadership Report Series Part 1	 9
“I’d recommend IT leaders watch out for
inconsistencies when comparing suppliers,
especially during direct cost comparisons, as
service offerings vary greatly and are rarely
100% comparable. Some vendors will be
taking on more service levels cost, risk and
responsibility than others. Terms like managed
hosting, cloud computing and proactive
monitoring are not used consistently across
the industry so it is often difficult to provide
like-for-like comparisons. IT leaders should
fully understand a service provider’s offering
before making a decision based on price. They
should also obtain and evaluate detailed service
descriptions so that they know what costs
specifically are avoided or eliminated when
outsourcing,” says Brian Klingbeil of Savvis.
As expected, cost is a key priority for IT leaders
when selecting an IT infrastructure supplier,
especially in this current market down-turn.
However, our findings reveal that trust, flexibility
and reputation of a supplier are also high on an
IT leaders selection criteria.
“Savvis cares as deeply as I do about
whether things are running the way
they should. I need to be surrounded
by people I can trust and Savvis is right
up there with my internal staff,”
said Andy Caddy of easyJet.
Summary
The new breed of IT leaders has given us some
key learnings in our research. The major take-
away is that during these challenging times it’s
imperative that heads of IT maintain focus on
the longer-term, whilst dealing with the day-to-
day tactical issues, pressures and costs cutting
exercises that so many leaders are experiencing
right now. History tells us that the economic
recovery will come, though it may take time,
and when it does, your organisation should
be well placed to succeed.
Investigating some of the options that
successful IT leaders are pursuing: using IT as
a strategic tool; asking “What does IT enable?”
rather than “What does IT cost?” and focusing
on delivering competitive advantage will put
IT executives in a strong position. Exploring
options to consolidate and re-organise your
IT infrastructure and being open to innovative
approaches, offers and strategies from
reputable vendors may well be the key
to achieving this.
About the research
This independent survey was carried out with
314 CIOs, CTOs, IT Directors and Heads of IT of
global businesses based in the UK, Singapore
and USA. The research was conducted between
January and February 2009 by Vanson
Bourne, a specialist research-based technology
marketing consultancy offering clients analysis
and advice based on incisive and rigorous
research into their market environment. The
research used an online fieldwork methodology
and all research carried out by Vanson Bourne
adheres to the latest MRS Code of Conduct.
Demographic detailing includes industry sector,
country in which the respondents were based
and size of business.
Contact Savvis at emea-sales@savvis.net
or call +44 (0)207 400 5600.
www.savvis.co.uk
1.	 Cost
2. Trust
3. Flexibility
4. Reputation
5. Breadth and depth of services offered
6. Global scale
Top six criteria for selecting an IT
infrastructure supplier
www.savvis.co.uk
© 2009 Savvis, Inc. All rights reserved. Savvis®
is the registered trademark of Savvis Communications Corporation.
All other trademarks and service marks are the property of their respective owners. -1-
US
Savvis
1 Savvis Parkway
St. Louis, MO 63017
Tel 1.800.SAVVIS.1
(1.800.728.8471)
www.savvis.net
EMEA
Savvis UK Limited
Eskdale Road
Winnersh Triangle
Wokingham
Berkshire RG41 5TS
United Kingdom
Tel +44 (0)118 322 6000
www.savvis.co.uk
Asia Pacific
Savvis Singapore
Company Pte Ltd
50 Raffles Place
#13-01 Singapore
Land Tower
Singapore 048623
Tel +65 6768 8000
Japan
Savvis Communications K.K.
7th Floor
Kyodo Building
(Jinbocho 3cho-me)
3-29 Kanda Jinbocho
Chiyoda-ku
Tokyo 101-0051
Japan
Tel +81.3.5214.0151

More Related Content

What's hot

Cognizant Valuation
Cognizant ValuationCognizant Valuation
Cognizant Valuation
Malcolm Silberman
 
CIO Agenda 2018
CIO Agenda 2018CIO Agenda 2018
CIO Agenda 2018
VIJAY MUTHU
 
The IT archipelago
The IT archipelagoThe IT archipelago
The IT archipelago
The Economist Media Businesses
 
Stepping Up the Pace
Stepping Up the PaceStepping Up the Pace
Stepping Up the Pace
Cognizant
 
18th Annual Global CEO Survey - Technology industry key findings
18th Annual Global CEO Survey - Technology industry key findings18th Annual Global CEO Survey - Technology industry key findings
18th Annual Global CEO Survey - Technology industry key findings
PwC
 
IT Outsourcing in Covid Environment: Is It Really Relevant?
IT Outsourcing in Covid Environment: Is It Really Relevant?IT Outsourcing in Covid Environment: Is It Really Relevant?
IT Outsourcing in Covid Environment: Is It Really Relevant?
Pixel Crayons
 
Intelligent Economies: AI's transformation of industries and society
Intelligent Economies: AI's transformation of industries and societyIntelligent Economies: AI's transformation of industries and society
Intelligent Economies: AI's transformation of industries and society
The Economist Media Businesses
 
The Economist Intelligence Unit
The Economist Intelligence UnitThe Economist Intelligence Unit
The Economist Intelligence Unitdallamas73
 
Better Business Outcomes with Big Data Analytics
Better Business Outcomes with Big Data AnalyticsBetter Business Outcomes with Big Data Analytics
Better Business Outcomes with Big Data Analytics
IBM Software India
 
PCQuest CIO Tech Priorities Survey 2014
PCQuest CIO Tech Priorities Survey 2014PCQuest CIO Tech Priorities Survey 2014
PCQuest CIO Tech Priorities Survey 2014Anil Chopra
 
IAOP Chicago Chapter April 28
IAOP Chicago Chapter April 28IAOP Chicago Chapter April 28
IAOP Chicago Chapter April 28
curtherge
 
The 10 Most Innovative Business Leaders Revamping the Future January 2021
The 10 Most Innovative Business Leaders Revamping the Future January 2021The 10 Most Innovative Business Leaders Revamping the Future January 2021
The 10 Most Innovative Business Leaders Revamping the Future January 2021
Merry D'souza
 
Getting Ahead With AI: How APAC Companies Replicate Success by Remaining Focused
Getting Ahead With AI: How APAC Companies Replicate Success by Remaining FocusedGetting Ahead With AI: How APAC Companies Replicate Success by Remaining Focused
Getting Ahead With AI: How APAC Companies Replicate Success by Remaining Focused
Cognizant
 
Redesigning finance for digital age
Redesigning finance for digital ageRedesigning finance for digital age
Redesigning finance for digital age
PwC
 
Trends in IT outsourcing
Trends in IT outsourcingTrends in IT outsourcing
Trends in IT outsourcing
Joydip Ghosh
 
Embracing a More Connected Future Using IoT
Embracing a More Connected Future Using IoTEmbracing a More Connected Future Using IoT
Embracing a More Connected Future Using IoT
Cognizant
 
The Great Skills Exodus: An EMC Report
The Great Skills Exodus: An EMC ReportThe Great Skills Exodus: An EMC Report
The Great Skills Exodus: An EMC Report
Simon Skinner
 
“Lets Build Smarter SMEs”
“Lets Build Smarter SMEs”“Lets Build Smarter SMEs”
“Lets Build Smarter SMEs”
IBMAsean
 
2016-state-of-the-cio-executive-summary
2016-state-of-the-cio-executive-summary2016-state-of-the-cio-executive-summary
2016-state-of-the-cio-executive-summaryMichael Jenkins
 

What's hot (20)

Final-Draft-DUPEVC
Final-Draft-DUPEVCFinal-Draft-DUPEVC
Final-Draft-DUPEVC
 
Cognizant Valuation
Cognizant ValuationCognizant Valuation
Cognizant Valuation
 
CIO Agenda 2018
CIO Agenda 2018CIO Agenda 2018
CIO Agenda 2018
 
The IT archipelago
The IT archipelagoThe IT archipelago
The IT archipelago
 
Stepping Up the Pace
Stepping Up the PaceStepping Up the Pace
Stepping Up the Pace
 
18th Annual Global CEO Survey - Technology industry key findings
18th Annual Global CEO Survey - Technology industry key findings18th Annual Global CEO Survey - Technology industry key findings
18th Annual Global CEO Survey - Technology industry key findings
 
IT Outsourcing in Covid Environment: Is It Really Relevant?
IT Outsourcing in Covid Environment: Is It Really Relevant?IT Outsourcing in Covid Environment: Is It Really Relevant?
IT Outsourcing in Covid Environment: Is It Really Relevant?
 
Intelligent Economies: AI's transformation of industries and society
Intelligent Economies: AI's transformation of industries and societyIntelligent Economies: AI's transformation of industries and society
Intelligent Economies: AI's transformation of industries and society
 
The Economist Intelligence Unit
The Economist Intelligence UnitThe Economist Intelligence Unit
The Economist Intelligence Unit
 
Better Business Outcomes with Big Data Analytics
Better Business Outcomes with Big Data AnalyticsBetter Business Outcomes with Big Data Analytics
Better Business Outcomes with Big Data Analytics
 
PCQuest CIO Tech Priorities Survey 2014
PCQuest CIO Tech Priorities Survey 2014PCQuest CIO Tech Priorities Survey 2014
PCQuest CIO Tech Priorities Survey 2014
 
IAOP Chicago Chapter April 28
IAOP Chicago Chapter April 28IAOP Chicago Chapter April 28
IAOP Chicago Chapter April 28
 
The 10 Most Innovative Business Leaders Revamping the Future January 2021
The 10 Most Innovative Business Leaders Revamping the Future January 2021The 10 Most Innovative Business Leaders Revamping the Future January 2021
The 10 Most Innovative Business Leaders Revamping the Future January 2021
 
Getting Ahead With AI: How APAC Companies Replicate Success by Remaining Focused
Getting Ahead With AI: How APAC Companies Replicate Success by Remaining FocusedGetting Ahead With AI: How APAC Companies Replicate Success by Remaining Focused
Getting Ahead With AI: How APAC Companies Replicate Success by Remaining Focused
 
Redesigning finance for digital age
Redesigning finance for digital ageRedesigning finance for digital age
Redesigning finance for digital age
 
Trends in IT outsourcing
Trends in IT outsourcingTrends in IT outsourcing
Trends in IT outsourcing
 
Embracing a More Connected Future Using IoT
Embracing a More Connected Future Using IoTEmbracing a More Connected Future Using IoT
Embracing a More Connected Future Using IoT
 
The Great Skills Exodus: An EMC Report
The Great Skills Exodus: An EMC ReportThe Great Skills Exodus: An EMC Report
The Great Skills Exodus: An EMC Report
 
“Lets Build Smarter SMEs”
“Lets Build Smarter SMEs”“Lets Build Smarter SMEs”
“Lets Build Smarter SMEs”
 
2016-state-of-the-cio-executive-summary
2016-state-of-the-cio-executive-summary2016-state-of-the-cio-executive-summary
2016-state-of-the-cio-executive-summary
 

Similar to Savvis - Rising to the Challenge (2009)

Global It Consulting Market
Global It Consulting MarketGlobal It Consulting Market
Global It Consulting Market
Sandipan Sen
 
Savvis - Rising to the Challenge (2010)
Savvis - Rising to the Challenge (2010)Savvis - Rising to the Challenge (2010)
Savvis - Rising to the Challenge (2010)
Telstra_International
 
Five quick wins to help CIOs drive growth
Five quick wins to help CIOs drive growthFive quick wins to help CIOs drive growth
Five quick wins to help CIOs drive growth
BurCom Consulting Ltd.
 
erp-x3-five-quick-wins-to-help-cios-drive-growth
erp-x3-five-quick-wins-to-help-cios-drive-growtherp-x3-five-quick-wins-to-help-cios-drive-growth
erp-x3-five-quick-wins-to-help-cios-drive-growthEdward Vaughan
 
Born to be digital - how leading CIOs are preparing for digital transformation
Born to be digital - how leading CIOs are preparing for digital transformationBorn to be digital - how leading CIOs are preparing for digital transformation
Born to be digital - how leading CIOs are preparing for digital transformation
EY
 
Second Annual Microsoft SMBPartner Insight Report - The Year Ahead
Second Annual Microsoft SMBPartner Insight Report - The Year Ahead Second Annual Microsoft SMBPartner Insight Report - The Year Ahead
Second Annual Microsoft SMBPartner Insight Report - The Year Ahead
Windows 7 Professional
 
The Future of IT Infrastructure
The Future of IT InfrastructureThe Future of IT Infrastructure
The Future of IT Infrastructure
Cognizant
 
How codeless enterprise paas installs agility to business it
How codeless enterprise paas installs agility to business itHow codeless enterprise paas installs agility to business it
How codeless enterprise paas installs agility to business it
Newton Day Uploads
 
CIO Insights from the Global C-suite Study
CIO Insights from the Global C-suite StudyCIO Insights from the Global C-suite Study
CIO Insights from the Global C-suite Study
Casey Lucas
 
CEO Briefing 2015: From productivity to outcomes
CEO Briefing 2015: From productivity to outcomesCEO Briefing 2015: From productivity to outcomes
CEO Briefing 2015: From productivity to outcomes
The Economist Media Businesses
 
The State of Business
The State of BusinessThe State of Business
The State of Businesstechweb08
 
The State of Business
The State of Business The State of Business
The State of Business techweb08
 
Outsourcing for Profit: Make investment work
Outsourcing for Profit: Make investment workOutsourcing for Profit: Make investment work
Outsourcing for Profit: Make investment work
IndusNetMarketing
 
Business Intelligence System
Business Intelligence SystemBusiness Intelligence System
Business Intelligence System
Lisa Martinez
 
BT\'s market view
BT\'s market viewBT\'s market view
BT\'s market view
hennebob
 
Chief Future Officer
Chief Future OfficerChief Future Officer
Chief Future OfficerSanjay Banka
 
When Will Outsourcing Grow Up?
When Will Outsourcing Grow Up?When Will Outsourcing Grow Up?
When Will Outsourcing Grow Up?
Walter Adamson
 
ITSM in an uncertain economy
ITSM in an uncertain economyITSM in an uncertain economy
ITSM in an uncertain economy
wdpowel
 

Similar to Savvis - Rising to the Challenge (2009) (20)

Global It Consulting Market
Global It Consulting MarketGlobal It Consulting Market
Global It Consulting Market
 
Savvis - Rising to the Challenge (2010)
Savvis - Rising to the Challenge (2010)Savvis - Rising to the Challenge (2010)
Savvis - Rising to the Challenge (2010)
 
Five quick wins to help CIOs drive growth
Five quick wins to help CIOs drive growthFive quick wins to help CIOs drive growth
Five quick wins to help CIOs drive growth
 
erp-x3-five-quick-wins-to-help-cios-drive-growth
erp-x3-five-quick-wins-to-help-cios-drive-growtherp-x3-five-quick-wins-to-help-cios-drive-growth
erp-x3-five-quick-wins-to-help-cios-drive-growth
 
Born to be digital - how leading CIOs are preparing for digital transformation
Born to be digital - how leading CIOs are preparing for digital transformationBorn to be digital - how leading CIOs are preparing for digital transformation
Born to be digital - how leading CIOs are preparing for digital transformation
 
2009 Ingram Corp Overview
2009 Ingram Corp Overview2009 Ingram Corp Overview
2009 Ingram Corp Overview
 
Second Annual Microsoft SMBPartner Insight Report - The Year Ahead
Second Annual Microsoft SMBPartner Insight Report - The Year Ahead Second Annual Microsoft SMBPartner Insight Report - The Year Ahead
Second Annual Microsoft SMBPartner Insight Report - The Year Ahead
 
The Future of IT Infrastructure
The Future of IT InfrastructureThe Future of IT Infrastructure
The Future of IT Infrastructure
 
How codeless enterprise paas installs agility to business it
How codeless enterprise paas installs agility to business itHow codeless enterprise paas installs agility to business it
How codeless enterprise paas installs agility to business it
 
CIO Insights from the Global C-suite Study
CIO Insights from the Global C-suite StudyCIO Insights from the Global C-suite Study
CIO Insights from the Global C-suite Study
 
CEO Briefing 2015: From productivity to outcomes
CEO Briefing 2015: From productivity to outcomesCEO Briefing 2015: From productivity to outcomes
CEO Briefing 2015: From productivity to outcomes
 
The State of Business
The State of BusinessThe State of Business
The State of Business
 
The State of Business
The State of Business The State of Business
The State of Business
 
Outsourcing for Profit: Make investment work
Outsourcing for Profit: Make investment workOutsourcing for Profit: Make investment work
Outsourcing for Profit: Make investment work
 
Business Intelligence System
Business Intelligence SystemBusiness Intelligence System
Business Intelligence System
 
BT\'s market view
BT\'s market viewBT\'s market view
BT\'s market view
 
Chief Future Officer
Chief Future OfficerChief Future Officer
Chief Future Officer
 
When Will Outsourcing Grow Up?
When Will Outsourcing Grow Up?When Will Outsourcing Grow Up?
When Will Outsourcing Grow Up?
 
ITSM in an uncertain economy
ITSM in an uncertain economyITSM in an uncertain economy
ITSM in an uncertain economy
 
Am Cham 110616 Final
Am Cham 110616 FinalAm Cham 110616 Final
Am Cham 110616 Final
 

More from Telstra_International

What is the Future of Voice & Collaboration in Financial Services?
What is the Future of  Voice & Collaboration  in Financial Services?What is the Future of  Voice & Collaboration  in Financial Services?
What is the Future of Voice & Collaboration in Financial Services?
Telstra_International
 
Customer Centric Cloud Hype or Hybrid Whitepaper-1
Customer Centric Cloud Hype or Hybrid Whitepaper-1Customer Centric Cloud Hype or Hybrid Whitepaper-1
Customer Centric Cloud Hype or Hybrid Whitepaper-1Telstra_International
 
FIQ Hosted Telephony & UC Services 2015
FIQ Hosted Telephony & UC Services 2015FIQ Hosted Telephony & UC Services 2015
FIQ Hosted Telephony & UC Services 2015Telstra_International
 

More from Telstra_International (7)

What is the Future of Voice & Collaboration in Financial Services?
What is the Future of  Voice & Collaboration  in Financial Services?What is the Future of  Voice & Collaboration  in Financial Services?
What is the Future of Voice & Collaboration in Financial Services?
 
Customer Centric Cloud Hype or Hybrid Whitepaper-1
Customer Centric Cloud Hype or Hybrid Whitepaper-1Customer Centric Cloud Hype or Hybrid Whitepaper-1
Customer Centric Cloud Hype or Hybrid Whitepaper-1
 
Rise of the Superuser
Rise of the SuperuserRise of the Superuser
Rise of the Superuser
 
christmas cloud
christmas cloudchristmas cloud
christmas cloud
 
Dynamic Global Connectivity
Dynamic Global ConnectivityDynamic Global Connectivity
Dynamic Global Connectivity
 
Telstra Cloud
Telstra CloudTelstra Cloud
Telstra Cloud
 
FIQ Hosted Telephony & UC Services 2015
FIQ Hosted Telephony & UC Services 2015FIQ Hosted Telephony & UC Services 2015
FIQ Hosted Telephony & UC Services 2015
 

Recently uploaded

Transcript: Selling digital books in 2024: Insights from industry leaders - T...
Transcript: Selling digital books in 2024: Insights from industry leaders - T...Transcript: Selling digital books in 2024: Insights from industry leaders - T...
Transcript: Selling digital books in 2024: Insights from industry leaders - T...
BookNet Canada
 
Essentials of Automations: Optimizing FME Workflows with Parameters
Essentials of Automations: Optimizing FME Workflows with ParametersEssentials of Automations: Optimizing FME Workflows with Parameters
Essentials of Automations: Optimizing FME Workflows with Parameters
Safe Software
 
FIDO Alliance Osaka Seminar: FIDO Security Aspects.pdf
FIDO Alliance Osaka Seminar: FIDO Security Aspects.pdfFIDO Alliance Osaka Seminar: FIDO Security Aspects.pdf
FIDO Alliance Osaka Seminar: FIDO Security Aspects.pdf
FIDO Alliance
 
GraphRAG is All You need? LLM & Knowledge Graph
GraphRAG is All You need? LLM & Knowledge GraphGraphRAG is All You need? LLM & Knowledge Graph
GraphRAG is All You need? LLM & Knowledge Graph
Guy Korland
 
Connector Corner: Automate dynamic content and events by pushing a button
Connector Corner: Automate dynamic content and events by pushing a buttonConnector Corner: Automate dynamic content and events by pushing a button
Connector Corner: Automate dynamic content and events by pushing a button
DianaGray10
 
Accelerate your Kubernetes clusters with Varnish Caching
Accelerate your Kubernetes clusters with Varnish CachingAccelerate your Kubernetes clusters with Varnish Caching
Accelerate your Kubernetes clusters with Varnish Caching
Thijs Feryn
 
Designing Great Products: The Power of Design and Leadership by Chief Designe...
Designing Great Products: The Power of Design and Leadership by Chief Designe...Designing Great Products: The Power of Design and Leadership by Chief Designe...
Designing Great Products: The Power of Design and Leadership by Chief Designe...
Product School
 
Monitoring Java Application Security with JDK Tools and JFR Events
Monitoring Java Application Security with JDK Tools and JFR EventsMonitoring Java Application Security with JDK Tools and JFR Events
Monitoring Java Application Security with JDK Tools and JFR Events
Ana-Maria Mihalceanu
 
Leading Change strategies and insights for effective change management pdf 1.pdf
Leading Change strategies and insights for effective change management pdf 1.pdfLeading Change strategies and insights for effective change management pdf 1.pdf
Leading Change strategies and insights for effective change management pdf 1.pdf
OnBoard
 
Builder.ai Founder Sachin Dev Duggal's Strategic Approach to Create an Innova...
Builder.ai Founder Sachin Dev Duggal's Strategic Approach to Create an Innova...Builder.ai Founder Sachin Dev Duggal's Strategic Approach to Create an Innova...
Builder.ai Founder Sachin Dev Duggal's Strategic Approach to Create an Innova...
Ramesh Iyer
 
FIDO Alliance Osaka Seminar: The WebAuthn API and Discoverable Credentials.pdf
FIDO Alliance Osaka Seminar: The WebAuthn API and Discoverable Credentials.pdfFIDO Alliance Osaka Seminar: The WebAuthn API and Discoverable Credentials.pdf
FIDO Alliance Osaka Seminar: The WebAuthn API and Discoverable Credentials.pdf
FIDO Alliance
 
From Siloed Products to Connected Ecosystem: Building a Sustainable and Scala...
From Siloed Products to Connected Ecosystem: Building a Sustainable and Scala...From Siloed Products to Connected Ecosystem: Building a Sustainable and Scala...
From Siloed Products to Connected Ecosystem: Building a Sustainable and Scala...
Product School
 
Unsubscribed: Combat Subscription Fatigue With a Membership Mentality by Head...
Unsubscribed: Combat Subscription Fatigue With a Membership Mentality by Head...Unsubscribed: Combat Subscription Fatigue With a Membership Mentality by Head...
Unsubscribed: Combat Subscription Fatigue With a Membership Mentality by Head...
Product School
 
Mission to Decommission: Importance of Decommissioning Products to Increase E...
Mission to Decommission: Importance of Decommissioning Products to Increase E...Mission to Decommission: Importance of Decommissioning Products to Increase E...
Mission to Decommission: Importance of Decommissioning Products to Increase E...
Product School
 
To Graph or Not to Graph Knowledge Graph Architectures and LLMs
To Graph or Not to Graph Knowledge Graph Architectures and LLMsTo Graph or Not to Graph Knowledge Graph Architectures and LLMs
To Graph or Not to Graph Knowledge Graph Architectures and LLMs
Paul Groth
 
FIDO Alliance Osaka Seminar: Passkeys and the Road Ahead.pdf
FIDO Alliance Osaka Seminar: Passkeys and the Road Ahead.pdfFIDO Alliance Osaka Seminar: Passkeys and the Road Ahead.pdf
FIDO Alliance Osaka Seminar: Passkeys and the Road Ahead.pdf
FIDO Alliance
 
Neuro-symbolic is not enough, we need neuro-*semantic*
Neuro-symbolic is not enough, we need neuro-*semantic*Neuro-symbolic is not enough, we need neuro-*semantic*
Neuro-symbolic is not enough, we need neuro-*semantic*
Frank van Harmelen
 
GenAISummit 2024 May 28 Sri Ambati Keynote: AGI Belongs to The Community in O...
GenAISummit 2024 May 28 Sri Ambati Keynote: AGI Belongs to The Community in O...GenAISummit 2024 May 28 Sri Ambati Keynote: AGI Belongs to The Community in O...
GenAISummit 2024 May 28 Sri Ambati Keynote: AGI Belongs to The Community in O...
Sri Ambati
 
Empowering NextGen Mobility via Large Action Model Infrastructure (LAMI): pav...
Empowering NextGen Mobility via Large Action Model Infrastructure (LAMI): pav...Empowering NextGen Mobility via Large Action Model Infrastructure (LAMI): pav...
Empowering NextGen Mobility via Large Action Model Infrastructure (LAMI): pav...
Thierry Lestable
 
FIDO Alliance Osaka Seminar: Passkeys at Amazon.pdf
FIDO Alliance Osaka Seminar: Passkeys at Amazon.pdfFIDO Alliance Osaka Seminar: Passkeys at Amazon.pdf
FIDO Alliance Osaka Seminar: Passkeys at Amazon.pdf
FIDO Alliance
 

Recently uploaded (20)

Transcript: Selling digital books in 2024: Insights from industry leaders - T...
Transcript: Selling digital books in 2024: Insights from industry leaders - T...Transcript: Selling digital books in 2024: Insights from industry leaders - T...
Transcript: Selling digital books in 2024: Insights from industry leaders - T...
 
Essentials of Automations: Optimizing FME Workflows with Parameters
Essentials of Automations: Optimizing FME Workflows with ParametersEssentials of Automations: Optimizing FME Workflows with Parameters
Essentials of Automations: Optimizing FME Workflows with Parameters
 
FIDO Alliance Osaka Seminar: FIDO Security Aspects.pdf
FIDO Alliance Osaka Seminar: FIDO Security Aspects.pdfFIDO Alliance Osaka Seminar: FIDO Security Aspects.pdf
FIDO Alliance Osaka Seminar: FIDO Security Aspects.pdf
 
GraphRAG is All You need? LLM & Knowledge Graph
GraphRAG is All You need? LLM & Knowledge GraphGraphRAG is All You need? LLM & Knowledge Graph
GraphRAG is All You need? LLM & Knowledge Graph
 
Connector Corner: Automate dynamic content and events by pushing a button
Connector Corner: Automate dynamic content and events by pushing a buttonConnector Corner: Automate dynamic content and events by pushing a button
Connector Corner: Automate dynamic content and events by pushing a button
 
Accelerate your Kubernetes clusters with Varnish Caching
Accelerate your Kubernetes clusters with Varnish CachingAccelerate your Kubernetes clusters with Varnish Caching
Accelerate your Kubernetes clusters with Varnish Caching
 
Designing Great Products: The Power of Design and Leadership by Chief Designe...
Designing Great Products: The Power of Design and Leadership by Chief Designe...Designing Great Products: The Power of Design and Leadership by Chief Designe...
Designing Great Products: The Power of Design and Leadership by Chief Designe...
 
Monitoring Java Application Security with JDK Tools and JFR Events
Monitoring Java Application Security with JDK Tools and JFR EventsMonitoring Java Application Security with JDK Tools and JFR Events
Monitoring Java Application Security with JDK Tools and JFR Events
 
Leading Change strategies and insights for effective change management pdf 1.pdf
Leading Change strategies and insights for effective change management pdf 1.pdfLeading Change strategies and insights for effective change management pdf 1.pdf
Leading Change strategies and insights for effective change management pdf 1.pdf
 
Builder.ai Founder Sachin Dev Duggal's Strategic Approach to Create an Innova...
Builder.ai Founder Sachin Dev Duggal's Strategic Approach to Create an Innova...Builder.ai Founder Sachin Dev Duggal's Strategic Approach to Create an Innova...
Builder.ai Founder Sachin Dev Duggal's Strategic Approach to Create an Innova...
 
FIDO Alliance Osaka Seminar: The WebAuthn API and Discoverable Credentials.pdf
FIDO Alliance Osaka Seminar: The WebAuthn API and Discoverable Credentials.pdfFIDO Alliance Osaka Seminar: The WebAuthn API and Discoverable Credentials.pdf
FIDO Alliance Osaka Seminar: The WebAuthn API and Discoverable Credentials.pdf
 
From Siloed Products to Connected Ecosystem: Building a Sustainable and Scala...
From Siloed Products to Connected Ecosystem: Building a Sustainable and Scala...From Siloed Products to Connected Ecosystem: Building a Sustainable and Scala...
From Siloed Products to Connected Ecosystem: Building a Sustainable and Scala...
 
Unsubscribed: Combat Subscription Fatigue With a Membership Mentality by Head...
Unsubscribed: Combat Subscription Fatigue With a Membership Mentality by Head...Unsubscribed: Combat Subscription Fatigue With a Membership Mentality by Head...
Unsubscribed: Combat Subscription Fatigue With a Membership Mentality by Head...
 
Mission to Decommission: Importance of Decommissioning Products to Increase E...
Mission to Decommission: Importance of Decommissioning Products to Increase E...Mission to Decommission: Importance of Decommissioning Products to Increase E...
Mission to Decommission: Importance of Decommissioning Products to Increase E...
 
To Graph or Not to Graph Knowledge Graph Architectures and LLMs
To Graph or Not to Graph Knowledge Graph Architectures and LLMsTo Graph or Not to Graph Knowledge Graph Architectures and LLMs
To Graph or Not to Graph Knowledge Graph Architectures and LLMs
 
FIDO Alliance Osaka Seminar: Passkeys and the Road Ahead.pdf
FIDO Alliance Osaka Seminar: Passkeys and the Road Ahead.pdfFIDO Alliance Osaka Seminar: Passkeys and the Road Ahead.pdf
FIDO Alliance Osaka Seminar: Passkeys and the Road Ahead.pdf
 
Neuro-symbolic is not enough, we need neuro-*semantic*
Neuro-symbolic is not enough, we need neuro-*semantic*Neuro-symbolic is not enough, we need neuro-*semantic*
Neuro-symbolic is not enough, we need neuro-*semantic*
 
GenAISummit 2024 May 28 Sri Ambati Keynote: AGI Belongs to The Community in O...
GenAISummit 2024 May 28 Sri Ambati Keynote: AGI Belongs to The Community in O...GenAISummit 2024 May 28 Sri Ambati Keynote: AGI Belongs to The Community in O...
GenAISummit 2024 May 28 Sri Ambati Keynote: AGI Belongs to The Community in O...
 
Empowering NextGen Mobility via Large Action Model Infrastructure (LAMI): pav...
Empowering NextGen Mobility via Large Action Model Infrastructure (LAMI): pav...Empowering NextGen Mobility via Large Action Model Infrastructure (LAMI): pav...
Empowering NextGen Mobility via Large Action Model Infrastructure (LAMI): pav...
 
FIDO Alliance Osaka Seminar: Passkeys at Amazon.pdf
FIDO Alliance Osaka Seminar: Passkeys at Amazon.pdfFIDO Alliance Osaka Seminar: Passkeys at Amazon.pdf
FIDO Alliance Osaka Seminar: Passkeys at Amazon.pdf
 

Savvis - Rising to the Challenge (2009)

  • 1. 2009 Global IT Leadership Report Series Part 1 How a new breed of IT leaders are powering their companies through the economic crisis. Rising to the Challenge IT Infrastructure-as-a-Service
  • 2. 2009 Global IT Leadership Report Series Part 1 2 Rising to the Challenge How a new breed of IT leaders are powering their companies through the economic challenge Companies around the globe are facing previously unimagined organisational and economic challenges. Savvis is committed to helping the business community to survive and thrive and that’s why in January 2009, we commissioned Vanson Bourne to undertake a global market research project to interview over 300 IT leaders in mid-to-large enterprises in the United States, United Kingdom and Singapore. We wanted to learn about their challenges and priorities as well as understand how they intend to use technology to meet their objectives in the current business climate. We’d like to share their insights with you. The findings reiterated what most of us know, that many companies are struggling and as a result, IT management are reducing costs on a wide scale to better align their businesses to cope with the current global economic challenges. However, what also came across loud and clear in the research is that a new breed of IT leader is emerging. These IT leaders are forward-thinking and understand how to use technology as a strategic business tool. Their adaptable approach to organising their company’s IT — and their IT infrastructure — places them in a better position to power their business through these challenging times. We can all learn from these IT leaders. They are open to discovering new service models that enable them to deliver competitive advantage to their businesses. They are utilising strategies to drive efficiencies and synergies, and leveraging technologies like virtualisation, utility computing and cloud computing to reduce costs and increase organisational efficiencies. The end result, as our research shows, is that their companies are doing “well” or “very well” through the downturn. While companies are feeling pain during the global recession, it’s imperative for IT leaders to search for opportunities to operate differently today while maintaining a sharp focus on the longer-term. Outsourcing your IT infrastructure to a trusted provider can deliver cost-savings to your organisation, improve your return on investments and enhance your ability to scale for the future. Savvis provides IT business solutions delivered through a highly scalable global IT infrastructure that is designed to reduce capital expense and combat the rising costs of bandwidth, real-estate, energy, staff and expertise. Forty percent of the top 100 companies on the Fortune 500 use Savvis as their trusted provider for outsourcing their IT infrastructure. We invite you to meet with Savvis to assess your current approach to managing your IT infrastructure. We’ll look at your challenges and give you a new perspective on how your IT infrastructure is managed so you can better control your costs while positioning your business for a successful future. To discuss how Savvis can help you, contact us at emea-sales@savvis.net. Phil Koen, CEO Savvis, Inc.
  • 3. 2009 Global IT Leadership Report Series Part 1 3 The current global business climate — survival of the fittest Against a backdrop of stock markets in turmoil and organisations on the brink of collapse, many industry analyst firms are revising their estimates on IT spending for 2009. There is no doubt that the global recession is biting harder than many of us ever imagined. The continued downward spiral of the global economy led IDC, a provider of global IT research and advice, to change its earlier predictions about worldwide IT spending in 2009, revising its estimate of 2.6% growth to just 0.5%. “Fourth quarter data from a number of key markets and geographies clearly show that companies have been very quick to pull back their spending,” said John Gantz, Chief Research Officer at IDC.1 With the main focus on driving costs out of the business, are companies losing sight of their strategies just to survive? What is sure is the competitive environment will be tougher than ever throughout 2009. The pressure is on IT leaders to continue innovating, create competitive advantages and stay “lean and mean” by driving efficiencies through the organisation to remain aggressive in the marketplace. The stakes have been raised and our research reveals there is a greater willingness among IT leaders to consider innovative approaches, offers and advice from reputable vendors. With 52% of all IT leaders globally seeing their cost savings derived from reducing infrastructure costs, a real opportunity exists for them to re-evaluate their existing IT infrastructure and consider a different approach that will have both short-term and long-term benefits. One of these is managed services. The new breed of IT leaders — powering your company through the economic challenge The current global economic downturn is having a profound effect on businesses, with 49% of IT heads stating that their organisation is “not doing well” currently. However, despite the climate of economic gloom, 51% of IT leaders think their companies are doing “well” or “very well” and are continuing to grow despite the global recession. Virtualisation strategy Reducing staff levels Reducing infrastructure costs Standardising IT infrastructure solutions Consolidating infrastructure Reducing staff levels Financial Services Media Health Business & Professional Services Public Sector Retail Top cost savings and efficiencies in 2009 by industry Financial Media, Leisure & Entertainment Healthcare Business & Professional Services Manufacturing Distribution & Transportation Retail & E-tail Technology & Communications Public Sector Companies “Doing Well” by Sector 0 20% 40% 60% 1 source: computing.co.uk, 27 February 2009
  • 4. 2009 Global IT Leadership Report Series Part 1 4 For companies doing well, what have their IT leaders done to rise to the challenge and remain buoyant during the recession? How did they prepare for the economic downturn and what lessons can be learned from them? A 10-point guide to success in the recession. 1. Modify your business plan and manage the expectations of your stakeholders, re-forecast regularly, and have a contingency plan in place to deal with market fluctuations. 2. Avoid major cost-cutting exercises without first asking “What does IT enable?” rather than “What does IT cost?” 3. Control operating expenditures and overall cash outlay. 4. Maintain the focus on IT as a strategic enabler to the business, rather than being a cost centre. 5. Focus on delivering competitive advantage and innovation. 6. Drive efficiencies by reducing infrastructure costs and moving to a service model. Keep enterprise cloud computing on your radar. 7. Consider innovative approaches, offers and strategies from reputable vendors and use them in reducing your costs. 8. Look for specialist service providers to run some operational elements of your organisation and explore outsourcing the non-critical elements of your IT infrastructure. 9. Consolidate the number of IT suppliers you use. 10. Don’t take your eye off the long term, reducing costs is important in a downturn but not at the expense of a slower or failed business recovery.
  • 5. 2009 Global IT Leadership Report Series Part 1 5 Get on top of the numbers and communicate Unsurprisingly, a higher proportion of the IT heads that said their companies are currently not doing well during the downturn have cut IT costs. Nearly half of them admit that they should have modified their business plans to account for market conditions. In contrast, fewer of the IT leaders who are enabling their companies to do well during the downturn have cut costs. Many more of them have contingency plans in place for market fluctuations and they are more likely to have managed their stakeholder expectations. Most IT organisations follow an annual IT budgeting process and adjust their budgets based on changing economic and business conditions. According to IT research and advisory firm Gartner2 , many organisations are reviewing and revising IT spending levels on a quarterly or even monthly basis: a sound recommendation and one that will help businesses to stay on top of their performance during times of fluctuating markets. Ask “what does IT enable?” instead of “what does IT cost?” IT budgets are under pressure in 2009, with many industry analysts forecasting flat or minor budgetary growth. Our research reveals that respondents often cited considerably higher spending, depending on the size and scope of the company. Market sectors also had large variables. The highest percentage of respondents in Financial Services, Public Sector and Professional Services stated that their IT budget will represent between 4%-6% of revenues and Retail, Leisure and Entertainment varied further at between 2%-6%. Our findings also revealed that on average, 21% of total IT budgets will be allocated to outsourcing some or all of their IT infrastructure. The IT leaders who are enabling their companies to do well spend 18% more of their revenue on IT than those not doing well. In addition, these successful companies spend a significant amount more — up to 32% more — of their IT budgets on infrastructure outsourcing. Whilst 67% of all IT leaders are under pressure to do more with a reduced budget, fewer of the IT leaders whose companies remain buoyant in the downturn feel this pressure. Instead, they are directing their efforts at more strategic activities, enabling their business to deliver competitive advantage and gain efficiencies throughout the company. They are exploring infrastructure consolidation and reducing infrastructure costs — ensuring their organisations are “lean and mean” and retain their agility. 2 source: Gartner IT spending and staffing report 2009, 27 January 2009 Average Spend $37M Companies Not Doing Well $30M Companies Doing Well $42M Budgets Allocated to Infrastructure Outsourcing Average IT Outsourcing Spend is up to 32% Higher for Private Sector Companies Doing Well Public sector data was excluded from this question as revenue is not reported.
  • 6. 2009 Global IT Leadership Report Series Part 1 6 Do what your business does best The IT leaders whose organisations are doing well through the downturn know only too well that IT can deliver competitive advantage to their company. In fact, 69% see focusing IT resources on developing and/or managing business critical applications as a key driver towards IT delivering competitive advantages to the company. “If you’ve got a limited number of highly qualified people, you don’t want them changing backup tapes, loading anti-virus software, or patching servers. You want them thinking about how to get flight data down from an Airbus, or doing capacity planning for your ecommerce site and other things that grow the value of the business,” said Andy Caddy, Head of IT Architecture at easyJet. “Choosing Savvis meant the headaches went away. We got one of the best data centres in the UK — if not in all of Europe — along with some of the most capable IT professionals I’d ever met to look after all our systems. Frankly, turning our IT infrastructure over to Savvis couldn’t have happened soon enough for me,” added Caddy. Finding more cost effective IT infrastructure solutions, enabling faster data access across the organisation, enabling collaboration to gain operational efficiencies and getting products and services to market faster than the competition all feature highly on the competitive advantage agenda of successful IT heads. Savvis Customer: easyJet Line of business: low-cost European airline that also offers car rental and hotel booking services Profile: • 6,200 workers across 18 bases • Serves 120 destinations with a fleet of 140 aircraft • 1,000 flights daily and 37 million passengers in 2007 • 95% of seats sold over the internet, making it one of Europe’s biggest internet retailers • Almost 1.8 million revenues in 2007 Challenge: • Leveraging technology core to easyJet’s ability to grow profitably • Limited number of highly qualified IT people who needed to focus on core business activities • Scalable and flexible IT infrastructure required to support high growth • Security and disaster recovery high on the agenda Solution: Savvis provides easyJet with a fully managed solution that integrates real- time hosting and network solutions to support easyJet’s operations, including easyJet.com, its reservations and flight operations systems, as well as its e-mail and financial applications. easyJet
  • 7. 2009 Global IT Leadership Report Series Part 1 7 With a 16-year background in finance and planning prior to running Savvis’ EMEA operation, controlling costs is a subject that’s close to my heart. What’s clear is that if your company’s situation is serious and you have a cash flow issue, you may have no choice but to eliminate costs quickly. My word of caution is that if you eliminate spend on longer-term strategic projects and anything that is not a tactical priority, you may survive 2009 but could miss out on the recovery. The key is to continually look for ways to trim costs whilst redirecting your IT spend towards those activities that differentiate your business. The costs of managing and maintaining IT infrastructure are increasing, and at the same time becoming more and more complex. There are now many alternatives available for enterprises ranging from in-house DIY solutions, to fully managed services. A business must determine what involvement, if any, the operation of its IT infrastructure has in creating a competitive advantage. The key is that service providers design, purchase, configure, maintain and support IT infrastructure for a living. Through heavy investment in systems, people and process, providers can operate IT Infrastructure far more efficiently than an enterprise. They can buy hardware, software, electricity and other essentials for a lower cost than most businesses and can repurpose or share platforms with other clients to get economies of scale. This, plus the benefits gained from superior design, 24/7 support, uptime and a quicker time to market means the gap between the value that a service provider can offer and the value that an enterprise can provide is growing wider as time goes on. Brian Klingbeil Managing Director EMEA, Savvis Stay on top of emerging technologies There is a large gap between the beliefs of the IT executives whose businesses are not doing well and those that are when it comes to tapping into new technologies. IT leaders who are enabling their companies to flourish are much more likely to consider using new technologies to deliver a competitive edge. Cloud computing is one relatively new solution that is now the buzzword of the day and has been talked about in the media for quite some time — but do IT leaders know what it is and the benefits it can bring? One in three IT heads we interviewed are unsure about cloud computing and the benefits it can offer in the current economic climate. The remaining two-thirds of IT leaders understand what cloud computing is. Benefits include better cost control, optimal performance at critical periods and versatility of infrastructure availability. Despite the confusion, 72% of all IT leaders believe cloud computing will play an important role in the future of IT, helping companies gain efficiencies and reduce cost. 59% of respondents stated that it will be a priority for them in the future. Cloud computing will play an important role in the future of IT in helping companies gain efficiencies and reduce costs.72% 28% Agree Disagree
  • 8. 2009 Global IT Leadership Report Series Part 1 8 Stay “lean and mean” to compete in your market Of those IT leaders whose companies are doing well in the current economic climate, the majority said that their main focus in driving efficiencies in 2009 will be to reduce infrastructure costs. Many companies will also seek to reduce staff levels and consolidate and standardise their IT infrastructure to reduce costs and gain efficiencies. Virtualisation was identified as a key strategy to achieve this. Open up to innovative approaches from vendors — look for specialist capabilities Hindsight is a wonderful thing. Unsurprisingly, if IT leaders had known the recession was coming, the one major initiative they would have undertaken in advance is to ensure costs were trimmed as much as possible. Our research shows that of those companies that are struggling, nearly half of them would have focused on cutting costs in advance. However, successful IT leaders would also have worked more closely with their suppliers to gain IT infrastructure efficiencies. “The key is to look for a reputable service provider who can work with you to develop a roadmap that will enable you to maximise your cost-efficiencies by increasing the utilisation of your IT infrastructure whilst consolidating to reduce costs. The roadmap should be flexible and allow you to move as much, or as little, of your infrastructure into a data centre or fully managed environment as is appropriate.” says Caddy at easyJet. Consolidate your IT suppliers Our research shows that, on average, organisations work with at least three to five IT infrastructure suppliers, and companies are investing 19 hours per week managing supplier relationships. That’s just over two and a half man-days per week. Mid-market organisations tend to spend around two days per week managing suppliers, but this figure more than doubles to nearly five and a half days per week, as companies grow beyond 10,000 employees. 56% of all IT leaders believe that there is merit to the concept of consolidating and outsourcing the number of IT suppliers across the network, hosting and security infrastructure as a way of reducing costs. IT heads enabling their company to prosper throughout the downturn are more likely to consider consolidating and outsourcing the number of IT suppliers. The benefits include saving man-hours in managing suppliers alongside the capacity to re-direct staff into more business-critical areas. In addition, the ability to improve accountability, and make it easier to pinpoint that accountability, makes outsourcing and consolidating more attractive. Reducing infrastructure costs Where companies see their cost savings or efficiencies coming from in 2009 Reducing Staff levels A virtualisation strategy Infrastructure consolidation Standardising IT infrastructure solutions Companies “Doing Well” 49% 44% 48% 44% 40% “Using virtualisation will result in server and device consolidation. These reductions mean less capital spend, lower power consumption, lower maintenance costs, fewer human resource support requirements and fewer software licenses. But establishing large scale benefits due to virtualisation depends on a holistic approach impacting tools, processes, roles, and skills across the IT organisation. These impacts are often overlooked or not completely addressed within the typical enterprise.” Bryan Doerr CTO, Savvis
  • 9. 2009 Global IT Leadership Report Series Part 1 9 “I’d recommend IT leaders watch out for inconsistencies when comparing suppliers, especially during direct cost comparisons, as service offerings vary greatly and are rarely 100% comparable. Some vendors will be taking on more service levels cost, risk and responsibility than others. Terms like managed hosting, cloud computing and proactive monitoring are not used consistently across the industry so it is often difficult to provide like-for-like comparisons. IT leaders should fully understand a service provider’s offering before making a decision based on price. They should also obtain and evaluate detailed service descriptions so that they know what costs specifically are avoided or eliminated when outsourcing,” says Brian Klingbeil of Savvis. As expected, cost is a key priority for IT leaders when selecting an IT infrastructure supplier, especially in this current market down-turn. However, our findings reveal that trust, flexibility and reputation of a supplier are also high on an IT leaders selection criteria. “Savvis cares as deeply as I do about whether things are running the way they should. I need to be surrounded by people I can trust and Savvis is right up there with my internal staff,” said Andy Caddy of easyJet. Summary The new breed of IT leaders has given us some key learnings in our research. The major take- away is that during these challenging times it’s imperative that heads of IT maintain focus on the longer-term, whilst dealing with the day-to- day tactical issues, pressures and costs cutting exercises that so many leaders are experiencing right now. History tells us that the economic recovery will come, though it may take time, and when it does, your organisation should be well placed to succeed. Investigating some of the options that successful IT leaders are pursuing: using IT as a strategic tool; asking “What does IT enable?” rather than “What does IT cost?” and focusing on delivering competitive advantage will put IT executives in a strong position. Exploring options to consolidate and re-organise your IT infrastructure and being open to innovative approaches, offers and strategies from reputable vendors may well be the key to achieving this. About the research This independent survey was carried out with 314 CIOs, CTOs, IT Directors and Heads of IT of global businesses based in the UK, Singapore and USA. The research was conducted between January and February 2009 by Vanson Bourne, a specialist research-based technology marketing consultancy offering clients analysis and advice based on incisive and rigorous research into their market environment. The research used an online fieldwork methodology and all research carried out by Vanson Bourne adheres to the latest MRS Code of Conduct. Demographic detailing includes industry sector, country in which the respondents were based and size of business. Contact Savvis at emea-sales@savvis.net or call +44 (0)207 400 5600. www.savvis.co.uk 1. Cost 2. Trust 3. Flexibility 4. Reputation 5. Breadth and depth of services offered 6. Global scale Top six criteria for selecting an IT infrastructure supplier
  • 10. www.savvis.co.uk © 2009 Savvis, Inc. All rights reserved. Savvis® is the registered trademark of Savvis Communications Corporation. All other trademarks and service marks are the property of their respective owners. -1- US Savvis 1 Savvis Parkway St. Louis, MO 63017 Tel 1.800.SAVVIS.1 (1.800.728.8471) www.savvis.net EMEA Savvis UK Limited Eskdale Road Winnersh Triangle Wokingham Berkshire RG41 5TS United Kingdom Tel +44 (0)118 322 6000 www.savvis.co.uk Asia Pacific Savvis Singapore Company Pte Ltd 50 Raffles Place #13-01 Singapore Land Tower Singapore 048623 Tel +65 6768 8000 Japan Savvis Communications K.K. 7th Floor Kyodo Building (Jinbocho 3cho-me) 3-29 Kanda Jinbocho Chiyoda-ku Tokyo 101-0051 Japan Tel +81.3.5214.0151