the cio agenda for 2012 - aventri · why is cloud important? cloud business models drive consumer...

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What are the future IT trends and challenges of the CIO? Navigating the New ICT Stream

Crawford Del Prete Executive VP WW Business Units and Chief Research Officer

The CIO Agenda for 2012:

Jul-12 © IDC 2

Agenda

2012 CIO Budget Outlook

Four Forces of Industry Transformation and Predictions For CIOs

The Evolution of The CIO Role

Jul-12 © IDC

Top Business Initiatives for 2012

0% 10% 20% 30% 40% 50% 60%

Improve organization's ability to attract and retain workforce

Improve multi channel delivery strategy

Expand into new geographic regions/countries

Improve customer acquisition and retention

Improve organization's security and mitigate organization's risk

Increase organization's agility

Meet compliance requirements

Introduce new and/or improved products and services

Increase organization's revenue

Increase organization's productivity

Improve organization's business processes

Reduce organization's costs

3

n = 52

Source: IDC CIO Agenda Survey. November-December, 2011; Data shows % of respondents who listed as a top 3 initiative.

Select three of the following business initiatives that will be significant in driving IT spending in your organization in 2012?

Jul-12 © IDC

Top IT Initiatives for 2012

4

Which of the following will be a top 3 IT initiative in your organization in 2012?

n = 52


0% 5% 10% 15% 20% 25% 30% 35% 40% 45%

Video Conferencing/Telepresence

Open Source Technologies

Content Management

VOIP/Unified Communications

Converged IT

Database consolidation

Enterprise Architecture

Social Media

Smart technologies

Deliver a range of desktop and mobile devices to end users

ERP consolidation

Automate systems operations with enterprise management software and tools

Business Process Management

Application portfolio consolidation/rationalization

Enhance Security/Risk Management

Business analytics and modeling for our organizational data

Collaboration Tools

Invest in cloud services

Consolidation/Virtualization

Jul-12 © IDC

Changes in 2012 IT Budget’s Compared to 2011

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

Increase Decrease The Same

n = 78

Source: IDC CIO Agenda Survey. November-December, 2011

5

Jul-12 © IDC

Drivers of IT Budget Increases

0% 10% 20% 30% 40% 50%

Positive outlook for organization’s financial performance

Merger/acquisition activity driving new spending

Positive outlook for industry and/or economy

Expanding installed base

To keep pace with new or changing industry standards

Responding to regulatory requirements

Organizational growth

Updating/Replacing outdated technology

New projects

6

n = 55


If you indicated that you expect the IT budget for your organization to increase over the next 12 months, which of the following reasons best describe why? ?

Jul-12 © IDC

Drivers of IT Budget Decreases

0% 10% 20% 30% 40%

Recent investments in IT are still being absorbed

Reduced IT requirements due to lack of organization growth/newprojects

Spending freeze due to merger/acquisition or other factors

Shift towards more in-house projects; reduced vendor reliance

Funding reallocated to higher priority projects and/or activitiesoutside of IT

Efforts to reduce IT-related redundancies within organization

Poor financial outlook for my organization

Negative outlook for industry and/or economy

7

n = 49


If you indicated that you expect the IT budget for your organization to decrease over the next 12 months, which of the following reasons best describe why? ?

Jul-12 © IDC

More Innovation in Tough Times?

0% 10% 20% 30% 40% 50%

Strongly Disagree

Disagree

Neither Agree or Disagree

Agree

Strongly Agree

8

n = 81


“In economic downturns, I find our organization to be more innovative as we are more thoughtful about how we approach our problems”

Jul-12 © IDC

A New Platform Emerges

The “Third Platform” for IT industry growth is emerging, will drive the bulk of IT industry growth in 2011-2025+

Millions of new apps and services will be built on this emerging platform

These apps and services will be built on innovative mash-ups of cloud, mobile devices, mobile apps, social technologies, big data/analytics, and more

Four Forces of Industry Transformation

Cloud Mobility

Big Data/

Analytics

Social

Business

What’s the impact of Cloud, Mobile, Analytics &

Social on existing markets?

9

Jul-12 © IDC

Why is Cloud Important? Cloud Business Models Drive Consumer and Enterprise Divide

10

Enterprise Cloud Consumer Cloud Blended Cloud

Cloud Service and Delivery Saas Paas Iaas Public Hybrid Private

Business to Business

Security & Compliance &

SLAs are Differentiators

Provider is Trusted

Quality of Service is Important

Business to Consumer

Lack of Privacy a Reality

Consumer to Consumer

Jul-12 © IDC

Cloud Benefits and Challenges

11

-80.0% -60.0% -40.0% -20.0% 0.0% 20.0% 40.0% 60.0% 80.0%

Pay-as-you-go (opex) Easy/fast to deploy to end-users Pay only for what you use Allows us to reduce IT headcount Makes sharing with partners simpler Encourages standard systems More sourcing choices Faster deployment of new services

Reliability Availability,

Security, Total Cost

Time to deploy Pay for Use

Collaboration

n = 603

Source: IDCs Cloud Computing Survey, December 2010

Regulatory requirement restrictions Performance/response times Availability/service provider uptime Not robust enough for critical apps Not enough ability to customize Hard to integrate, manage w/in-house IT May cost more Security

Jul-12 © IDC

Applications without Borders: Application Revenue By Deployment Type

12

Q. Please estimate how much of your company's IT budget will be

allocated to buying and managing these different types of IT

services

n = 603

Source: IDCs Cloud Computing Survey, January 2011

Two primary consequences of enterprise cloud adoption:

Explosion in the number of applications that will need to integrate with existing on premise IT applications

Shifting market spend will drive enterprise cloud readiness and likely a new type of supporting infrastructure

PaaS will enable the creation of a

new set of applications that will

challenge traditional application

development models

Unlimited hardware resources

Potentially infinite number of users

APIs are crucial, lack of standards a

future issue?

Battle of the apps stores?

69%

36%

2%

21%

2% 7%

16%

9%

11%

27%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2010 2020F

Public Cloud

OutsourcedIT

Private cloud- Hosted

Private CloudInhouse

Traditional IT

Jul-12 © IDC

2009

Applications 49%

App Dev/ Deploy 11%

Infra-structure Software

22%

Servers 12%

Storage 9%

$16.5B

2015

Applications 36%

App Dev/ Deploy 17%

Infra-structure Software

20%

Servers 14%

Storage 13%

$72.8B

* Includes spending on Applications, Application Development & Deployment Software, Systems Infrastructure Software,

Server capacity and Storage capacity provided via the public Cloud Services delivery model.

Worldwide Public IT Cloud Services* Spending by Offering Category 2009, 2015

13

Jul-12 © IDC

Prediction: Information Architects Will Become One of the Most Critical Roles in the IT Organization

14

We predict that most large enterprises will define their migration to a services architecture in 2012 and be well underway by 2013. Architects will embrace business services as a defining element of the extended architecture.

We predict that IT’s core responsibilities (keeping information secure and flowing in an extended enterprise) will only become more complex.

– Cloud services, mobile, social and analytics adoption will continue to create an extended enterprise.

– Enterprise architecture will focus on: cloud services integration; security; and business process.

Business architects will own the business model and, in many cases,

reside in the business.

Prediction

Jul-12 © IDC

Cloud Mobility

Big Data/

Analytics

Social

Business



15


Jul-12 © IDC

Fueling the Digital Universe

16

58.2%

31.7%

6.5%

1.7% 1.1% 0.7%

Media

Cameras

Data

Music

Voice Capture

Other

2010 1.2 ZB

1000 Gigabytes = 1 Terabyte · 1000 Terabytes = 1 Petabyte

1000 Petabytes = 1 Exabyte - 1000 Exabytes = 1 Zettabyte

Source: IDC Digital Universe Study

Jul-12 © IDC

10MB/user 4,000TB

0.25KB/update 5TB/yr


8MB/video 1,920TB/yr

100KB/photo 3,600TB/yr

12.5MB/video 3,787TB/yr

125Bytes/tweet 2.5TB/yr

1MB/photo 1,096TB/yr

0.1MB/profile 7TB

0.1MB/profile 3TB/yr

Consumption vs. Creation

17

624PB/yr 260B pg. views/mo

192PB/yr 2B vid. views/mo

9,131PB/yr 2B vid. views/day

0.5PB/yr 4.4B pg. views/mo

56PB/yr 30.4M views/day


Jul-12 © IDC

10MB/user 4,000TB



8MB/video 1,920TB/yr

100KB/photo 3,600TB/yr

12.5MB/video 3,787TB/yr

125Bytes/tweet 2.4TB/yr

1MB/photo 1,096TB/yr

0.1MB/profile 7TB

0.1MB/profile 3TB/yr

Consumption vs. Creation

18

624PB/yr 260B pg. views/mo

192PB/yr 2B vid. views/mo

9,131PB/yr 2B vid. views/day


56PB/yr 30.4M views/day


Jul-12 © IDC

Business Analytics by Industry Leading Edge: First to Exploit Richer Data & Analytics

19

Q. Does your organization have a stated Business Analytics/Intelligence strategy?

n = 2,586 and 1,843

Source: IDC Vertical Research Group IT Survey, 2011

26% 14%

24% 30% 33%

46% 46% 44% 42% 40% 37% 34% 33% 31% 30% 27% 26% 25% 25% 23% 22% 21% 19% 16% 13%

60% 75%

64% 51% 48% 36%

45% 45% 47% 49% 53%

44% 55% 56% 53% 59% 60% 58% 57% 58% 64% 61%

73% 75% 77%

0%

100%

To

tal

1 -

99

10

0-4

99

50

0-9

99

10

00-4

999

50

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Whole

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rtation

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He

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No

Yes

33%

46% 46% 44% 42% 40% 37% 34%

48%

36%45%

45% 47% 49% 53%

44%

1000-4

999

5000+

Banki

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The Leading Edge

Jul-12 © IDC

Prediction: Big Data Will Be the CIO Issue of 2012

20

Big Data Software Landscape

Source: IDC, 2012

Text

mining

Advanced

Analytics Pig Hive

Flume Hadoop Data Ware-

housing

Search &

Discovery

Audio,

Video

Analysis

CDC CEP zookeeper HBase

We predict Big Data and Analytics will be the CIO issue of the year in 2012.

The final bricks in the foundation for the intelligent enterprise will be laid in 2012 in a number of key industries (e.g. healthcare and utilities).

Socialytics will become essential to omni-channel retailers, integrating enterprise systems and data to create more actionable business insights.

CIOs will spend years with pilot analytics projects – many will be failures – until they find the right tools and data models.

Prediction

Jul-12 © IDC

Socialytics:

Social Business Enabled by Analytics on Broader, Richer Data

21

Social

Data

Corporate

Data Intersection of highest

value information

Jul-12 © IDC

Why Social Business? It’s All Information-Driven

22

Q. Why are you conducting social initiatives for business purposes today?

N = 700

0% 10% 20% 30% 40% 50% 60% 70%

It is a requirement for my job

Competitors are doing it

Conduct employee training

Communicate with partners/suppliers

Respond to customer/partner inquiries

Monitor conversations/activities

Gather feedback on company product or service

Socialize with friends/industry colleagues

Make decisions

Communicate with internal colleagues

Create awareness about company product or service

Communicate with customers

Share knowledge/contribute ideas

Acquire knowledge/ask questions

40% of respondents report saving 15%+ of time

Jul-12 © IDC

Prediction: CIOs Will Step in to Bring Social Initiatives Together Under One Social Enterprise

23

Early social business initiatives were led by the CMO to reach customers and prospects.

As social business expands, other key areas such as product development (ideasourcing / innovation management) and customer service (community & social listening) will have their own social initiatives.

Social businesses will create extended information architectures. CIOs will step in to integrate these as part of the social enterprise and IT will oversee more functional areas (e.g. contact centers) and a broader array of technologies (collaboration, CRM, digital commerce).

Prediction

Jul-12 © IDC

Mobile Everything

Devices

Platforms

Applications

Distribution Channels

Networks

Services

Cloud

There’s a Lot Coming at You… It’s a Mess!

The

Individual

25

Jul-12 © IDC

Consumer Devices Are Already in the Enterprise … And Growing

2010

31%

26

Employee-Owned Devices (vs. Company-Owned Devices)

Used to Access Business Applications

» 2011

41%

Jul-12 © IDC

A Framework for Thinking Through Your PC vs. Tablet Policy

Creator of Content (lean forward)

Consumer of Content

(lean back)

Stat

ion

ary

Road Warrior

Assess workforce by the

level of mobility and the

time spent doing the

following activities:

Giving presentations

Order capture

Status updates

2-way communication

Content generation

The more mobile

employees who

consume content

and/or doing “light”

content generation

activities, are more

suitable for a tablet only

The less-mobile

employees who

consume content

and/or doing “light”

content generation

activities, are more

suitable for a tablet only

Campus Roamer

Inside Talkers Inside Creators Engineering Marketing Finance Admin/Legal/HR ____________________ Product design Graphic design Financial report generation

Logistics Manufacturing Sales Associate ____________________ Status Updates Data Collection Order entry

Customer Service (call ctr.) Human Resources IT Help desk Cust. Reception ____________________ Accessing product/customer info Accessing employee info

Executives Account Executives ____________________ Presentations Email

Mo

bile

27

Tablet Tablet or Smartphone

PC PC

Jul-12 © IDC

Alternatives for Mobile Device Strategies Develop a Framework for Decision Making

28

Cap

ab

ilit

ies P

rovid

ed

Corporate DB

Analytics

Specialized

Applications

Multimedia

E-Readers

Virtual Desktop

Production

Support

Web Services

Mobile

Applications

Corporate Mail

Business

liable

Corporate

Phone

Business

liable

PC, Tablet or

Smartphone

BYOD

• Non-Std. Device

• Ltd. Controls

• Limited access to

Corp. Apps &

Network

Employee-

Liable (corp

std.)

Tablet or

Smartphone

Devices In Service

Jul-12 © IDC

Prediction: CIOs Will Solve the Mobile Device Policy Issue in 2012

29

Considering your company's entire global

workforce, indicate below what percent of

employees fall into each policy/category?

IDC Mobile Benchmark Study, Fall, 2011

CIOs will have made significant progress in addressing the multitude of decisions around employee-owned devices. We predict that most large enterprises will crack this issue in 2012.

Greater data access, app stores, and mobile analytics will require greater security will 2012.

Multiplatform mobile device management solutions to address management, security and apps will be broadly adopted to meet these new demands.

Prediction

Jul-12 © IDC

How CIOs Are Aligning with the Business

30

0% 10% 20% 30% 40% 50%

Strongly Disagree

Disagree


Agree

Strongly Agree

n = 81


“As CIO I should spend at least 2/3rd of my time working with the business”

Jul-12 © IDC

Prediction: Aligning IT to the Business Will Continue to be the Top Personal Goal for CIOs in 2012

31

In 2012, which of the following 3 goals will be top of your personal agenda as CIO?

n = 87

Source: IDC CIO Agenda Survey. November-December, 2011;

Data shows % of respondents who listed as a top 3 initiative

Alignment still tops the personal agenda of the majority of CIOs. In order to build an intelligent enterprise, CIOs recognize the need for more business engagement and the adoption of integrated business services via the cloud.

Business executives will continue to become more tech savvy and partner with IT to build the extended enterprise.

Prediction

0% 10% 20% 30% 40% 50% 60% 70%

More effectively attract new IT talent

Re-skill existing IT talent

Implement more rigorous process to evaluatenew ideas for IT to take on

Focus IT org on better understanding therequirements of the consumers

Foster a culture where IT more often providesa qualified "yes" to the business

Carve out more IT budget for innovativeprojects v. "sustaining IT operations"

Foster a culture within IT that drives moreinnovation

Better align IT with the business

Focus the IT org more on business strategythan technology strategy

Jul-12 © IDC

Prediction: The Era of IT Innovation Begins in 2012

32

0% 20% 40% 60%

Strongly Disagree

Disagree

Neither Agree orDisagree

Agree

Strongly Agree

n = 85


67% of CIOs tell IDC “I see the role of CIO evolving to be Chief Innovation Officer”

We predict 2012 will be the year that the majority of CIOs start to employ the four pillars(cloud, mobile, social, and big data/analytics) to realize business innovation.

2012 will be a turning point as the impact of cloud services and the consumerization of IT reach a critical mass. CIOs have the experience to lead this transformation and they are ready to step up.

Prediction

Jul-12 © IDC

Prediction: The Extended Enterprise will Define the Next Gen CIO

33

-20% 0% 20% 40% 60%

Strongly Disagree

Disagree


Agree

Strongly Agree

With the increased adoption of cloud services in an organization, I see the role of CIO transforming to become

Chief Information Architect, where one of the primarily responsibilities of the CIO is to ensure information flows

between internal systems and cloud services?

n = 86


Next Gen CIOs will focus on business services, analytics and controls. They’ll own the adoption of new business services while ensuring security and a seamless information architecture.

– Chief Information Architect

– Services Sourcing and Management

– Business Process and Change Management

– Compliance and Risk Management

CIOs will not become obsolete.

However, the Next Gen CIO may be a

non-IT business executive who excels

at innovation, communication and

change

Prediction

Jul-12 © IDC

Advice to CIOs for 2012

34

Plan to extend your information architecture to integrate information from the fringe of the enterprise: social business; SaaS; and the interactive network of things.

Develop an organization plan that contemplates changes in roles, disciplines and hiring to support a service architecture

– Cloud architecture

– Sourcing and managing cloud services

– Services management

Educate business executives on how

they can create

– Business process management

– Innovation at the fringe of the enterprise

– Lean and agile businesses

the cio agenda for 2012 - aventri · why is cloud important? cloud business models drive consumer...

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