IDC s Annual CIO Survey and other Enterprise Observations
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1 IDC s Annual CIO Survey and other Enterprise Observations Tim Dillon IDC Asia Pacific Associate Vice President Enterprise Mobility and End User Copyright 2011 IDC. Reproduction is forbidden unless authorized. All rights reserved.
2 The 4 pillars : Cloud, mobile, social, big data Cloud Social IT & business services delivered via cloud will form a US$15.8B market 40% of new software purchases will be via cloud >3/4 of social media users access via mobile devices >50% of the companies in Asia/Pacific will have a social business strategy Source: IDC, 2012; all data for % of all employees in Asia/Pacific will be mobile workers 1/2 billion smart phones will be shipped 90% of organizations will be analyzing some form of 'Big Data The global Big Data technologies & services market will reach $16.9B Mobile Big data 2010 IDC
3 Pop Quiz What words would your CFO use to describe your company s IT and Communications environments? 2010 IDC 3
4 CFOs are Taking Action Nearly of CFOs indicated they will be taking the following actions in the next six months Consolidating suppliers Increasing credit lines Leasing instead of buying equipment Outsourcing non-core business functions IDC IDC Asia/Pacific CFO Poll, Nov 2011, n=250 Jul-12 4
5 WHY? CFOs are worried Decreasing overall expenses Access to adequate financing Collection of receivables days to receipt of Managing foreign exchange risks Managing employee compensation levels Managing corporate risk to regulatory Managing rapid growth Entering new geographical markets Falling Sales Launch of new products/services 0% 5% 10% 15% 20% 25% 30% 35% 3 Main Concerns Rising costs of both raw materials as well as employee costs Market uncertainty and exposure to swings in foreign exchange rates Cash flow, including keeping cash in the enterprise as well as access to financing IDC Asia/Pacific CFO Poll, Nov 2011, n=250
6 But not about IT If your organisation cuts overall expenses in response to economic uncertainty, which area do you expect will see the largest budget decrease? Research & Development/Engineering Adminstration & Operations Marketing Customer Service & Support Manufacturing or Product Creation Executive Management Finance/Accounting IT Sales 0% 5% 10% 15% 20% 25% 30% 35% IDC IDC Asia/Pacific CFO Poll, Nov 2011, n=250 Jul-12
7 In Fact. Almost 75% of CFOs view IT as a source of competitive differentiation. Top 3 Ways IT Creates Differentiation 1. Improving operational efficiencies 2. Support innovative products and services Top 3 Ways IT Fails to Differentiate 1. Implementations take too long 2. ROI is better elsewhere in the business 3. Improve customer retention/relationships IDC IDC Asia/Pacific CFO Poll, Nov 2011, n= Technology is a commodity in our company. Jul-12
8 CIO Survey Demographics : Size, Revenue 245 Australian Companies 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 47% 28% 25% Small Medium Large 0.00% <$25m $25m < $100m Image Source : KW Monster, Source : IDC Australia CIO Survey May 2012, n = 245 $100m +
9 CIO Survey - Sentiment What is your organization's view of Business Prospects now / in 6 months? 60.0% 50.0% 40.0% 13% Saw budgets DECREASE 30.0% 20.0% May 12 FLAT 30% 10.0% Nov % 10.0% 20.0% Negative Neutral Positive 52% Saw budgets INCREASE 30.0% IDC Australia CIO Survey, May 2012, n=245
10 Spend: By Technology Area What happened to Budgets? 60% 50% 40% 30% 20% 10% 0% Hardware Software IT Services Public Cloud Computing Network Hardware Fixed data costs Mobile data costs Decrease since 2011 Remain the same Increase since 2011 IDC Australia CIO Survey, May 2012, n=245
11 Squeeze me, squeeze me! ROI On investing in any technology, what would be the timeframe by which you expect the investment to start giving a positive return (ROI)? 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 11.7% 3+ years 2 3 Years 1 2 Years < 1 Year < 6 months 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 9.8% 24.5% 11.4% Dependent on Investment > 5 years 4-5 years 3-4 years 2-3 years 1-2 years 6 months - < 1 year < 6 months IDC IDC Australia CIO Survey, May 2012, n=245 Jul-12 11
12 Alignment of Business and Technology Ranking Business Goal 1 New customers/segments 2 Dealing with cost 3 New market expansion 4 High profit margins 5 Customer retention Ranking IT Goal 1 Lower costs 2 Infrastructure improvement 3 More secure environment 4 Better use BI/BA 5 Improve business processes IDC Australia CIO Survey, May IDC 2012, Australia n=245 CIO, May 2012, n=245
13 Where in Time is Your Organisation? Trillions of Things Billions of Users Hundreds of Millions of Users Social Big Data/ Business Analytics Mobile Mobile Cloud Broadband Devices Services & Apps 2011 LAN/ Client- Internet Server PC 1986 Millions of Apps Tens of Thousands of Apps Millions of Users Thousands of Apps IDC Jul-12
14 Technology Deployment Plans Public Cloud NFC/Payments BYOD Private Cloud Medium BPO & large enterprises Virtual Private Cloud focusing more upon BI/BA infrastructure/services/bi Client Virt UC/VC Green IT Social Business Mobile Apps SVR Virt /mobility Small enterprises focusing more upon social business, public cloud, mobile applications 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 90.0% Deployed Next 12 months Next months IDC Australia CIO Survey, May 2012, n=245
15 The 4 pillars Revisited Cloud, mobile, social, big data Cloud Social Moving beyond OPEX/CAPEX issues to business goals and outcomes Still fitness for purpose Cloud is the foundation for the other 3 pillars Social media show be a critical part of any organisations multi channel go to market strategy. Optimise it for mobility, target and profile. Source: IDC, 2012; all data for 2015 Mobility is a massive enabler of business however do not get too distracted by BYOD Platforms and Applications more important SMB friendly solutions will come from the cloud. Large enterprises will need to brace for potential self service analytics Mobile Big data 2010 IDC
16 2010 IDC
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