the path to enterprise it transformation

IT & DATA MANAGEMENT RESEARCH,

INDUSTRY ANALYSIS & CONSULTING

The Path to Enterprise

IT Transformation

Shamus McGillicuddy

Senior Analyst, EMA

[email protected]

@shamusEMA

mailto:[email protected]



Agenda

• Digital Transformation

Requires IT Transformation

• How Do You Transform IT?

• Modernize IT Management

Systems

• Leverage the Cloud for Agility

and Resiliency

• Maximize Resources: Focus on

What Your People Do Best

Slide 2 © 2016 Enterprise Management Associates, Inc.





IT and Digital Transformation:

Two Sides of the Same Coin

• What is “transformation”?

• Digital transformation –

Optimize business or

organizational effectiveness via

digital and IT services

• IT transformation – Optimize IT

performance for business or

organizational needs and

outcomes


*EMA, “Digital and IT Transformation: A Global View of Trends and Requirements,” September 2015.

• Digital transformation is more

effective when pursued in parallel

with IT transformation*

• 50/50 partnerships between IT and

the business are essential



Characteristics of Successful IT Transformation

• Start with assessment of management tools

• The top two external partners for future transformation efforts:

#1. Application management software vendors

#2. IT operations management software vendors

• The cloud is essential

• 95% of “extremely successful” transformation initiatives include cloud

technologies

Versus just 67% of “somewhat successful” transformation efforts

• Get the most out of what you have

• IT budgets are growing but organizations still struggle with a lack of resources


Source: EMA, “Digital and IT Transformation: A Global View of Trends and Requirements,” September 2015



Modernize IT Management Systems



Overcrowded IT Management Toolkits

Challenge IT Operations

Symptoms of overcrowded &

outdated IT management toolkits

Leading challenges to network

operations success*

Visibility gaps between tools #1. Lack of end-to-end network visibility

Operational silos/no collaboration #3. Lack of visibility/control into

external cloud services

#6. Lack of cross-domain visibility

Fractured workflows #5. Fragmented management tools


* EMA, “Network Management Megatrends 2016,” April 2016.



Overcrowded Network Management Toolkits

Lead to Unstable Networks

• 34% of IT organizations use 11 or more tools to monitor and

troubleshoot networks. 21% use only 1 to 3 tools.

• Organizations using 11+ tools

Detect only 52% of network problems before end users are affected

Operate very unstable networks

50%+ report having at least several network outages per week

• In contrast, organizations using 1 – 3 tools

Detect 71% of problems before end users are affected

Operate more stable networks

39% say they experience no more than 1 or 2 outages a year


Source: EMA, “Network Management Megatrends 2016,” April 2016.



Modernization Starts With Opportunities

for Consolidation & Integration

• Enterprises know a crowded toolkit is a problem

• Of organizations using 1 – 3 network monitoring & troubleshooting tools

52% actively fight to maintain their current number

• Of organizations using 11+ tools

60% actively consolidate wherever possible

• Opportunities for cross-silo integration

• Enterprises require network management tool integration with

Virtual systems management (49%)

Security monitoring (47%)

Application performance management (37%)





Tool Modernization Requires Visibility

Into New & Emerging Technologies

• Management and monitoring tools must provide

control and visibility of the new technologies that

enterprises leverage for transformation

• Public cloud

• Virtual infrastructure

• Containers

• Converged infrastructure

• IoT




Example: Network Management

Extend Beyond Your Networks


37%

35%

35%

33%

32%

31%

30%

27%

24%

1%

Customizable reporting

Log file analysis

Specific support for virtual server environments

Specific support for cloud environments

Specific support for virtualized network devices

APIs for integration with other tools

Support for multiple user/operator constituencies

Service/application-awareness

Task/workflow-oriented UI

Other

Which of the following network management product features add significant value to your organization?




Leverage the Cloud

for Agility and Resiliency



Cloud Is Integral to Transformation Initiatives

• Cloud technologies offer

• Agility

• Elasticity

• Reduced CapEx

• Resiliency


Source: EMA, “Digital and IT Transformation: A Global View of Trends and Requirements,” September 2015.

• Top 2 impacts of cloud technology on

digital & IT transformation initiatives

• Accelerates transformation (32%)

• Promotes more dialog with the

business (29%)

• Cloud technology is involved in 85% of

digital & IT transformation initiatives



Make Sure IT Management Tools Are Cloud-Ready

Cloud technologies are driving management tool decisions



• Top IT initiatives that influence

network management priorities

Server virtualization (49%)

Internal cloud transformation (37%)

Software-defined data centers (35%)

• Hybrid cloud infrastructure drives

new management tool investment

51% of hybrid cloud adopters

acquire new NPM solutions to

support their investments



Evaluate Cloud-Readiness of

Your Infrastructure Monitoring Tools

• Identify your business cloud strategy

• Internal vs. external vs. hybrid

• Providers? AWS, Azure, Google, or someone else

• Private cloud platforms? OpenStack, commercial solutions

• What kinds of applications are migrating to the cloud?

• Cloud requirements for your IT monitoring tools

• Collect telemetry from internal and external cloud environments

• Present and analyze cloud telemetry

• Contextualize cloud resources with end-to-end infrastructure

• Provide reports to business stakeholders




Maximize Resources:

Focus on What Your People Do Best



IT Organizations Have to Do More With Less

“Lack of people and budget” is the #2 challenge

to network operations success*



Lack of budget:

IT transformation often

requires new investments

Lack of people: The technical

labor market is tight



IT Outsourcing: Not About Reducing Costs

• Put your people on the tasks that allow them to deliver the most

value to the organization

• 51% of enterprises outsource some aspect of network management

Up from 36% in 2014*

• Motivations for outsourcing**

• 57% say it enables focus on core business functions

• 47% say it solves capability issues


** Deloitte Consulting LLP, “2016 Global Outsourcing Survey,” June 2016.




Ineffective IT Outsourcing Will Hurt the Business

• Be careful

• 15% of enterprises say ineffective outsourcing is

a major challenge to network operations success

• Evaluate which aspects of your operation are suited for outsourcing

What are your people good at? What value do they offer?

• Define requirements and best practices for outsourcing

• Validate MSP performance

30% of outsourcing organizations use old monitoring tools to monitor MSP

activity







The Roundup

• IT transformation is the

foundation of digital

transformation

• IT transformation starts with

management tool modernization

• The cloud can accelerate

transformation success

• Outsource strategically and

allow your IT organization to

focus on what delivers value

directly to the business


IT & DATA MANAGEMENT RESEARCH, INDUSTRY

ANALYSIS & CONSULTING© 2017 Enterprise Management Associates, Inc.

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