Chris : IDC pulse 2010
- 1. Change and Complexity Create Opportunity Chris Morris Research Director IDC Asia/Pacific Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.
- 2. Agenda • Businesses putting renewed focus on growth, innovation and customers • Complexity and change dominate global markets • Intelligent interactions change the game • Integrated service management, automation and integrated lifecycles required • Essential guidance for exploiting change and emerging opportunities © IDC Jul-10 2
- 3. The “New Normal” Shifting Business Goals Impact Technology Goals Q. Prioritize the following business goals as they relate to your organization by allocating 100 points among them. The more Business priorities are points you allocate, the more important the business goal. quickly returning to pre-recession status 100.0 Other 90.0 Refocus on “doing the 80.0 Speed time to market right thing”, not the least expensive 70.0 Increase market share • For customers 60.0 • For 50.0 Improve quality/accuracy shareholders • For competitive 40.0 Increase revenue advantage 30.0 20.0 Increase customer Efficiency still satisfaction matters, but not if it 10.0 Reduce costs impacts business - performance January 2007 October 2008 July/August January 2010 • Availability 2009 • Flexibility Source: IDC Server Virtualization MCS 2007, 2008, 2009; IDC Datacenter and Cloud Survey 2010 © IDC Jul-10
- 4. The Leading Business Themes Asia/Pacific LoB Q. Please select the most important initiative to your organization, in CIO terms of helping IT achieve its organizational goals in 2010? Cost savings Business process optimization and automation Attract new customers Better response to a new market landscape Better response to a new market landscape Attract new & maintain talent Gain competitive share of wallet Attract new & maintain talent Attract new customers Expand footprint Keep your customers & increase loyalty Partner effectively © IDC Source: IDC AP Recovery Watch Program – CxO Polls, November 30, 2009; N=520 CIO/646 LoB Jul-10
- 5. Managing Change in Asia/Pacific Beyond this Fiscal Year 39% of CIOs create a contingency plan to allow their organizations to scale up quickly in a recovery without the need for major CAPEX 64% LoB and 75% investments; Having a CIOs are more flexible arrangement is aggressive and a critical part of this proactive in managing ops management change in the initiative marketplace >63% are planning for the longer term (the next 3-5 years) © IDC Source: IDC AP Recovery Watch Program – CxO Polls, November 30, 2009; N=520 CIO/646 LoB Jul-10
- 6. Recovery and Transformation Key Market Transformations Telecom – fiber, 3G/4G wireless, converged IP delivery, new distribution models IT – market expansion through disruptive Cloud model, driving re-architecture of vendor models, offerings, identities Ascendance of mobile devices – and apps – challenging primacy of the PC Shift of customer “design point” toward SMB/consumer, emerging markets © IDC Jul-10
- 7. “Socialytic” Apps Emerge • Fundamental transformation in business applications • Fusing social/collaboration software and analytics to business logic/workflow and data – Marketing/merchandising, Reputation monitoring, Fraud detection, People- centric search, and BI • Treat to traditional apps – transforms development and operations lifecycles © IDC Jul-10
- 8. 2010: Intelligent Economy Emerging 1 billion mobile Public cloud Internet users; spending $23 B 500,000 mobile phone apps 50 million servers, half virtual 700 million social networkers 20 million smart meters in US 630 million laptops; 80 million netbooks 7 billion communicating 1.2 billion mobile devices in place – 5 phones; 220 million billion of these are smart phones NOT computers © IDC Jul-10 8
- 9. By 2020 – Intelligent Everything Billions of Connected Devices by 2020 Sensors/Tags 1.3 T tags/sensors 25+ billion embedded Embedded 2.6 billion phones Phones 1.9 billion PCs PCs 450 B interactions/day © IDC Jul-10 9
- 10. Emerging Markets Lead Recovery More than half of IT growth in 2010 will come from emerging markets China (9%), India (13%), Brazil (8%), and Russia (8%) In contrast: U.S. (3%), W. Europe (1%), Japan (-1%) By year end, BRIC = 10%+ of global IT spending, all emerging markets = 21% Malaysian IT spend is expected to grow at 10.3% in 2010 © IDC Source: IDC Q409 Blackbook, February 2010 Jul-10
- 11. Strategies for Coping with Complexity and Exploiting Opportunities • Transform information overload into digital assets • Integrate business and IT service management • Optimize resources and performance • Invest in automation and best practices © IDC Jul-10 11
- 12. Exploit Emerging Digital Assets OLD NEW 10101010 10101010 Shift from a linear, data-processing (compute/storage-centric) paradigm to a dynamic information-centric environment that provides competitive advantage via intelligent analytics © IDC Jul-10
- 13. Focus on Business Service Delivery • Ability to exploit change and complexity Business depends on clear goals Services and business/IT collaboration • Focus on end-to-end, Workloads integrated service management and Infrastructure delivery across business and IT lifecycles © IDC Jul-10 13
- 14. Integrate Across Roles and Silos End user Business services strategy and goals Architecture Analytics Workflow Business IT operations operations Application development/ sourcing © IDC Jul-10 14
- 15. Integration Across Design and Operations Lifecycles • Pace and scope of business and IT change requires better lifecycle integration • Public cloud and SaaS options gain interest but complicate operations • Time to break down the walls • Focus on business agility © IDC Jul-10 15
- 16. Optimize Resources and Performance Public cloud services forecast: 26% CAGR 2009-2013 Standard services Automation Self service Elastic Virtualization scaling Private cloud architectures becoming top enterprise priority © IDC Jul-10
- 17. Cloud Deployment Models Emerging Hybrid • Enterprise’s cloud services portfolio includes both private and public cloud services • Some specific services are Private Public delivered through a • Designed for a • Designed for, and combination of public and access restricted to, a market, not a single private models (e.g., private enterprise single enterprise (or cloud “bursting to” a public extended enterprise) • Open to a largely cloud service) unrestricted • An internal shared universe of resource, not a potential users commercial offering • IT Org is the “vendor” of the shared/std service to its users © IDC Jul-10
- 18. Ensure that You Have a Clear ‘Cloud Roadmap’ in Place High Readiness Factor Low Storage as a Service Sensitive data Backup/Restore Solutions Employee Information Information archival Medical Records Data intensive workloads Where to 3rd party software which: Established packaged offerings Start? Does not have a virtualization e-mail or Cloud aware licensing strategy Collaboration Chargeback or utilization not enabled Batch processing Requires Mass Customization Pre-production systems High auditability & accountability Software development Subject to Sarbanes-Oxley Test IFRS JSOX © IDC 18 Jul-10
- 19. Focus on Private Clouds 2010 will be a big year for "private clouds"…: Why? • Continued concerns about public cloud security, availability and performance • Ongoing drive to maximize return on existing IT assets • 2010 will be a big year for the announcement of "private cloud" offerings from virtually all major IT suppliers • Clouds typically package infrastructure, platforms and applications together… • Private cloud announcements to drive many strategic partnerships, joint ventures and acquisitions/mergers © IDC Jul-10
- 20. The Advantage Technologies LoB Q. What do you think is the Top technology that would benefit your CIO organization over the next 6 to 12 months? Virtualization Business Intelligence & Green IT & Sustainability Analytics MPS/Document Process Managed Services Outsourcing -157 841 Customer Care & Analytics Private Cloud 596 841 Open Source Mobility Technologies BPO UC &/or Video Conferencing Public Cloud Services © IDC Source: IDC AP Recovery Watch Program – CxO Polls, November 30, 2009; N=510 CIO/630 LoB (Multiple Responses) Jul-10
- 21. Automation & Best Practices Are Critical What role do you expect automation to play in your virtualization investment? Not that important Speed and volume of Critical, must 3% have change requires 12% automation Important Automation reduces 30% errors and increases staff productivity Workload migration becomes more real time Operational economics improve Very important 55% n=100 Source: IDC's Virtual Infrastructure Management Survey © IDC Jul-10 21
- 22. Essential Guidance • Exploit business opportunities in the emerging intelligent connected economy • Optimize across the lifecycle, not the silos • Integrate, automate and standardize to the greatest extent possible © IDC Jul-10 22
- 23. Questions Please e-mail me at: cmorris@idc.com © IDC Jul-10 23