Records Management And Hybrid Cloud Computing: Transforming Information Governance

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1 A Custom Technology Adoption Profile Commissioned By April 2014 Records Management And Hybrid Cloud Computing: Transforming Information Governance

2 1 Introduction Organizations are under extreme pressure to adapt to changing market demands and the ever-increasing expectations of empowered customers. This is driving demand for agile and cost-effective cloud-based solutions secure, well-managed hybrid cloud-based solutions in particular. Business and technology leaders will continue to accelerate the adoption of web, mobile, social, and cloud sources of content. Fully embracing a digital-first path to gain control over these new forms of content and communication is critical. As gaps in traditional records management (RM) solutions are revealed, organizations must transform how RM capabilities are sourced, extended, and augmented. In April 2014, RecordPoint commissioned Forrester Consulting to research the primary drivers and expected benefits of hybrid cloud computing in several key markets. By leveraging existing data and surveying 80 senior business and IT decision-makers in the United Kingdom (UK) and Australia and New Zealand (ANZ), Forrester also analyzed key adoption trends and demand drivers for cloudbased RM and broader enterprise content management (ECM) capabilities and solutions. Cloud Adoption Is Rising, Including Cloud-Based Records Management Cloud computing has rapidly become a valid sourcing and deployment option for business-critical applications, alongside traditional on-premises deployments and hosted solutions. As cloud usage rises, the distinction between various cloud approaches is becoming clear. No one size will fit all, and Forrester expects organizations to increasingly embrace hybrid approaches based on workloads, use cases, regulatory and security requirements, and other business considerations. ORGANIZATIONS ARE FORMALIZING THEIR CLOUD STRATEGIES At the end of 2013, approximately 50% of ANZ respondents rated cloud computing as a critical or high priority, up from 19% in In the UK, the number increased from only 12% in 2012 to 42% at the end of 2013 (see Figure 1). FIGURE 1 Cloud Computing Is Rapidly Becoming A Top IT Priority In the next 12 months, what priority will you or your IT organization put on creating a comprehensive strategy and implementation plan for public cloud and other as-a-service offerings? Critical priority High priority Moderate priority ANZ % 31% 29% % 14% 17% UK % 22% 28% % 8% 28% Note: Low priority, Not on our agenda, and Don t know responses have been excluded Base: 418 IT decision-makers from ANZ and UK in 2012 and 320 IT decision-makers from ANZ and UK in 2013 Source: Forrsights Business Decision-Makers Survey, Q4 2012; Forrsights Budgets And Priorities Survey, Q4 2013

3 2 DEMAND FOR CLOUD-BASED RECORDS MANAGEMENT IS ALSO RISING As the importance of cloud as an IT priority has increased, organizations are increasingly evaluating the likely workloads and scenarios where cloud-based deployment makes sense. Forrester s research indicates that fewer than 10% of organizations currently have high levels of confidence in their approach to governing digital information. 1 Many records and compliance managers also remain wary of cloud platforms. Nonetheless, awareness of the link between RM requirements and the benefits of cloudbased deployments is growing, as reflected in surveyed organizations adoption trends. While one-third of organizations interviewed are currently using cloud-based RM, approximately 70% of total respondents are either already using or planning to use cloud-based RM. This rises to over 80% in ANZ specifically, versus 60% in UK (see Figure 2). FIGURE 2 Records Management Is Gaining Interest As A Cloud-Based Workload Does your organization currently leverage software-as-a-service (SaaS), cloud, or hosted solutions for document and/or records management? 34% 35% 28% Yes No, but planned No, not planned Base: 418 IT decision-makers from ANZ and UK in 2012 and 320 IT decision-makers from ANZ and UK in 2013 Source: Forrsights Business Decision-Makers Survey, Q4 2012; Forrsights Budgets And Priorities Survey, Q Barriers And Concerns With Public Clouds Are Fueling Interest In Hybrid Approaches CLOUD PROVIDERS ARE SUPPORTING FLEXIBLE, HYBRID CLOUD DEPLOYMENT OPTIONS IN DIRECT RESPONSE TO MARKET DEMANDS Cloud providers are increasingly supporting content segregation, security, privacy, and data-sovereignty requirements to drive adoption in regulated industries, along with service-level agreements (SLAs) to reduce risks and ensure necessary performance. This is in direct response to ongoing concerns over data security and access control, which is the top reason preventing organizations from using more public software-as-a-service (SaaS) or other as-aservice offerings or approaches (see Figure 3). Hybrid cloud solutions take this one step further, by ensuring organizations can manage some resources on-premises, while others are hosted externally.

4 3 FIGURE 3 Data Management, Control, And Security Considerations Are Driving Cloud Usage Decisions What is preventing your group/department from using more public SaaS and other as-a-service offerings or approaches? We re concerned about data security and access control 38% We doubt it can manage compliance and risk to our strict standards Integrating as-a-service offerings with internal apps, DBs and/or compute infrastructure is too complex or costly 21% It s not clear whether public as-a-service offerings can be used as a substitute or replacement for traditional IT services/outsourcing We believe we cannot move our legacy applications and systems to a public cloud infrastructure We re not comfortable with volatile per-use pricing models We re unsure about the vendor offering and the benefits it would give us 17% 17% 19% 18% 22% Base: 192 IT decision-makers from ANZ and UK Source: Forrsights Business Decision-Makers Survey, Q CONCERNS FOR CLOUD-BASED RM SOLUTIONS MIRROR GENERAL CONCERNS AROUND PUBLIC CLOUDS Worries over the cost and complexity of cloud-based RM solutions are not significant concerns among the organizations interviewed for this study. Instead, 58% of respondents cited privacy or security concerns as the primary barrier to adopting cloud-based RM solutions. Fifty percent of respondents also cited concerns over regulatory compliance as a major barrier (see Figure 4). But traditional practices and tools for managing electronic records must change. Organizations need flexible, costeffective approaches to addressing compliance, categorization, and retention requirements. Records management has evolved into information governance, and must include cloud-based sources of information, such as document-sharing sites, social platforms, and customer relationship management (CRM) systems. To meet market demands and internal business pressures, RM professionals must be willing to identify, explore, and embrace both new sources of corporate records, as well as new deployment options for RM capabilities.

5 4 FIGURE 4 Information Security Concerns And Regulatory Compliance Are Hindering Cloud-Based RM Adoption What factors are inhibiting your organization s potential adoption (or expansion) of software-as-a-service (SaaS), cloud, or hosted document and records management solutions? Potential privacy or security concerns 58% Policies, regulations, or laws prevent us from using this approach The records management solution used by my organization does not have this option Not familiar enough with SaaS, cloud, or hosted approaches or products The cost is too high 23% 30% 28% 50% Too complicated to adopt 11% Base: 80 IT decision-makers in UK, Australia, and New Zealand Source: Record Management In Hybrid Cloud, a custom Technology Adoption Profile commissioned by RecordPoint, March 2014 Pressure To Embrace Digital Disruption While Ensuring Ongoing Information Management Will Drive Adoption Of Hybrid Cloud-Based RM Solutions EFFECTIVELY MANAGING INFORMATION REMAINS A CRITICAL BUSINESS PRIORITY Organizations primarily rely on RM solutions to ensure the governance and management of sensitive content. Key use cases driving RM tool adoption include site and content governance, augmented RM, integration with established systems of record, and archiving. But these solutions are also critical for keeping up with ever-increasing volumes of content and meeting regulatory requirements (see Figure 5). While the benefits of RM solutions for meeting core business requirements are well understood, the link between RM capabilities and newer initiatives (including social and mobile) is currently far less well understood. As these initiatives gain increased prominence within organizations, the need for additional RM capabilities will also increase.

6 5 FIGURE 5 RM Solutions Are Critical To Support Core Information Management Requirements Why are you currently investing in (or planning to invest in) records management capabilities? Improving governance and management of sensitive content Keeping up with the increasing volume of content Meeting complex retention rules and paper records management Responding to an enterprisewide initiative to improve information governance Supporting the growth in digital records and the need for long-term retention Addressing shortcomings in current content management and archiving technology/platform Extending access to document and records management capabilities to mobile devices Managing social media feeds (Yammer, Twitter, Facebook), instant messages, and other new sources of data 24% 35% 46% 45% 43% 69% 73% 78% Base: 80 IT decision-makers in UK, Australia, and New Zealand Source: Record Management In Hybrid Cloud, a custom Technology Adoption Profile commissioned by RecordPoint, March 2014 BUT THERE REMAINS CLEAR ROOM TO IMPROVE RM CAPABILITIES Organizations maintain high expectations for their RM solutions. While 74% of respondents are confident that they can verify their electronically stored data, only 64% believe their current RM approaches are well aligned to business requirements (see Figure 6). Unfortunately, traditional RM tools are often not cloudready. Few established RM solutions can easily integrate with new cloud-based business productivity tools. Records managers must clearly understand how to effectively manage the importing or filing of business content from cloud-based sources into an on-premises records repository. In fact, implementing well-defined, and increasingly automated, rules and processes for managing the flow of records, data, and information between cloud and on-premises systems is rapidly becoming a core requirement for any RM solution. Among organizations interviewed, 60% are confident that they currently understand how augmenting existing onpremises RM solutions with cloud-based capabilities would add value. Forrester Consulting expects hybrid cloud solutions to gain increased market traction as organizations embrace the flexibility and economies of scale that cloud computing offers while maintaining the security, control, and performance required for business-critical workloads. Records management is one such workload.

7 6 FIGURE 6 Organizations Are Expecting More Out Of Their RM Solutions How strongly do you agree with the following statements? (Percentage of respondents rating 7 or higher out of 10) If required, our organization could demonstrate that our electronically stored information is accurate, accessible, and trustworthy 74% Our document and records management programs and capabilities are well aligned to business priorities and able to adapt to the rapidly changing requirements and expectations of the business We understand how augmenting existing on-premises records management tools with cloud-based capabilities would drive improved governance, automation, and information access 60% 64% Base: 80 IT decision-makers in UK, Australia, and New Zealand Source: Record Management In Hybrid Cloud, a custom Technology Adoption Profile commissioned by RecordPoint, March 2014

8 7 Methodology This Technology Adoption Profile was commissioned by RecordPoint. To create this profile, Forrester leveraged its Forrsights Business Decision-Makers Survey, Q4 2012, and Forrsights Budgets And Priorities Survey, Q Forrester Consulting supplemented this data with custom survey questions asked of 80 IT decision-makers in the United Kingdom, Australia, and New Zealand who are familiar with and deeply involved in the RMS decision-making process. Survey respondents come from companies with 500 employees and more, and have a position of manager or higher. The auxiliary custom survey was conducted in March For more information on Forrester s data panel and Tech Industry Consulting services, visit Endnotes 1 Source: Five Trends Are Changing Records Management Technologies And Practices, Forrester Research, Inc., April 18, ABOUT FORRESTER CONSULTING Forrester Consulting provides independent and objective research-based consulting to help leaders succeed in their organizations. Ranging in scope from a short strategy session to custom projects, Forrester s Consulting services connect you directly with research analysts who apply expert insight to your specific business challenges. For more information, visit forrester.com/consulting. 2014, Forrester Research, Inc. All rights reserved. Unauthorized reproduction is strictly prohibited. Information is based on best available resources. Opinions reflect judgment at the time and are subject to change. Forrester, Technographics, Forrester Wave, RoleView, TechRadar, and Total Economic Impact are trademarks of Forrester Research, Inc. All other trademarks are the property of their respective companies. For additional information, go to [1-Q0Y4RR]

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