The Shifting Datacentre Landscape. Sally Parker, Research Director Enterprise Systems, Software and Services
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1 The Shifting Datacentre Landscape Sally Parker, Research Director Enterprise Systems, Software and Services
2 And Business The 3 rd Platform for IT Innovation and Growth >90% of all IT growth will come from 3 rd Platform technologies & solutions Cloud Services - an essential foundation for the other 3 pillars, & virtually all 3 rd Platform solutions A rapidly expanding community of developers to create a 10 fold increase new killer apps over the next 4-5 years. IDC Visit us at IDC.com and follow us on 2
3 Disruptive Business Models are Prevalent 2009 Mobile app in ~ 60 Countries Expected 2015 revenue ~$10B Valuation >$40B 2008 Crowd sourced home rentals 34,000 cities globally $28B valuation 2004 Urban guide 135M monthly visitors, 71M crowd sourced business review Ad derived revenue 2014:Market Cap $2.6B By 2018 a third of the Top 20 market share leaders in most industries will be significantly disrupted by New Competitors with New Offerings, New Business Models and New Cost Structures Based on publicly sourced investment data New, born in the cloud apps disrupting established ecosystems IDC Visit us at IDC.com and follow us on 3
4 Global Competitiveness and Innovation Australia s Wake-Up Call Traditionally an early adopter of technology Latent adoption of 3 rd Platform technologies Unprecedented rate and pace of change is impacting established industries and ecosystems IDC Visit us at IDC.com and follow us on 4
5 CSUITE 2015 Australian Business Top 5 Priorities 2015 Innovate for Competitive Leadership ranked 8th 3. Company Wide Cost Savings 5. Market Expansion 11% 4. Customer Engagement Initiatives 16% 1. Operational Efficiency & Productivity 2. Invest to increase share customer wallet 20% 16% 12.5% Source: IDC Asia/Pacific C-suite Barometer 2015 (N=1,452 in APAC) 5 IDC Visit us at IDC.com and follow us on
6 CSUITE 2015 Australia - Role of ICT 2015 Q: Looking to , what role does ICT play in your organization? 3% Disruptor 39% Optimiser 13% Creator 26% Opportunist 18% Follower Source: IDC Asia/Pacific C-suite Barometer 2015 (N=1,452 in APAC) IDC Visit us at IDC.com and follow us on 6 6
7 Australia ICT Top 5 Priorities 2015 Q: Looking ahead to , what do you think will be your organisations top 3 ICT priorities? CSUITE App. Modernisation 7% 4. Enhance Infra. to Meet New Demands 9% 3. More Secure IT 9.5% Source: IDC Asia/Pacific C-suite Barometer 2015 (N=1,452 in APAC) 2. Manage Suppliers 10% 1. Build Better Management Tools 17.3% 7
8 Cloud Adoption & IT as a Service By 2016, 65% of global competitive strategies will require real-time 3 rd Platform IT as a service (ITaaS) By 2016, 80% of CIOs will deliver a new architectural framework that enables innovation & improves business decision making Cloud has changed how we view infrastructure Pre-existing use of external services remains a primary indicator of cloud readiness providing experience in sourcing and service management Source: Market Analysis Perspective: Australia Cloud Services 2015 (Doc #AU251013) IDC Visit us at IDC.com and follow us on 8
9 Cloud Maturity Model - Asia Pacific 27% 26% 20% 20% 6% Ad Hoc Opportunistic Repeatable Managed Optimized Australia Malaysia 2% of respondents were not using any cloud services Philippines Indonesia S. Korea New Zealand Singapore Vietnam China Hong Kong India Taiwan Thailand Source: IDC s APEJ Cloud Study 2014, May 2014; n = 2,300 (Australia = 250, mul<ple responses) IDC Visit us at IDC.com and follow us on 9
10 Workload Distribution Preferences Q. In 2016, for your enterprise, could you please estimate the approximate distribution of workloads across the various deployment models High percentage of on-premises workloads represent significant opportunity: 40% of workloads by 2016 to be in the cloud. Source: IDC s APEJ Cloud Study 2014, May 2014; n = 2,300 (Australia = 250, mul<ple responses) IDC Visit us at IDC.com and follow us on 10
11 Data as a Strategic Asset CSUITE 2015 Q: Is data a strategic asset for your CEO and organization? Do not see data as an important asset Important asset - don t know how to harness Exploring new data monetization opportunities See data as an important part of their strategy but see the need to do more The Data Opportunity New Revenue Streams Better Product & Services Operational Efficiencies Profit Optimisation IDC Visit us at IDC.com and follow us on 11
12 Big Data & Advanced Analytics By 2018, 30% of CIOs of global organizations will have rolled out a pan-enterprise data and analytics strategy By 2016, security will be a top 3 business priority for 70% of CEOs of global enterprises Data is a Rising Commodity By % of the CIO s time will be focused on analytics, cyber security, and creating new revenue streams through digital services Source: IDC Predictions Documents IDC Visit us at IDC.com and follow us on 12
13 Big Data in Australia Stage 1 Ad Hoc Stage 2 Opportunistic Stage 3 Repeatable Stage 4 Managed Stage 5 Optimized Yesterday's Strategy Today Cautious Innovation Orchestrating IT & Business Effective IT- Business Integration Visionary & Transformative Proof-of-concept or pilot projects Value through new knowledge, learning Functional deploy Knowledge value grows Business value opportunities become visible Persistent adoption Business value is realized but remains localized to business units Enterprise use New product & service opps. transition to business plans - IT efficiency is demonstrated` Continuous learning & improvement Prev. unattainable business value continuously produced 66% Maturity Source: IDC Australian Big Data Heat map June 2015, APeJ Big Data Maturity Assessment and Benchmark 2014 (APEJ=1255, Australia = 150) IDC Visit us at IDC.com and follow us on 13
14 Australia Big Data Challenges Q. What are the top 3 IT challenges when looking at Big Data and Analytics? Data accessibility, security, and governance 22% Data quality and availability Deciding what data is relevant 18% 22% Data Privacy & Security will become boardroom discussions in 2015 Integra<ng with produc<on Cost of technology 11% 11% Source: IDC s AP BDA Pulse Survey, 2014 IDC Visit us at IDC.com and follow us on 14
15 The Evolving Role of our Datacentre Data centers are the cornerstone of business Devices 3x x Data Users 2x VMs 2x and Infrastructure needs to be tuned to the task IDC Visit us at IDC.com and follow us on 15
16 Role of IT is Evolving in Parallel DIGITAL disruption has shifted the boundary of IT beyond the IT department Over the next 2 years > 70% of CIOs will change their primary role from directly managing IT to becoming innovation partners By 2018 adoption of 3 rd platform IT technologies will redefine 90% of IT roles. By % of new IT investments will directly involve LOB executives IDC Visit us at IDC.com and follow us on 16
17 Australia s ICT Inhibitors CSUITE 2015 Skills Challenges in ANZ Q: What are your organizations top 3 challenges or priorities in leveraging ICT to drive your business forward? Find and hire the right talent Upgrade/upskill existing employees Manage an aging workforce Manage a young workforce Partner with leading academic insitutions 17.6% 15.3% Growing IT environment complexity & varied user requirements Lack of ICT budget for the business requirements to be supported Crowdsource/outsource Diversify gender/age/background of workforce 14.8% Lack of required skill sets or expertise to effectively execute ICT 0% 20% 40% 60% 80% 100% Source: IDC Australia CIO Intention Survey 2014, April 2014, n = 340 IDC Visit us at IDC.com and follow us on 17
18 Essential Guidance 1 Today s datacentre is everywhere and stakeholders are everywhere IT has a new baseline & IT s role is to deliver services - beyond device management Cloud is at the foundation of agile service delivery and disruptive applications Re-Imagine IT s role in the organisation and seize the opportunity to influence IDC Visit us at IDC.com and follow us on 18
19 Thank You Further Research Australia Big Data & Advanced Analytics Heat Map 2015 DOC #AU251075, June 2015 Australia Public Cloud Services Forecast Market Analysis Perspective: Australia Cloud Services 2015 Doc #AU250903, Jan 2015 DOC # AU251013, April 2015 E: sparker@idc.com Complimentary download for Oracle Data Centre audience Australia ICT 2015 Top 10 Predictions IDC Visit us at IDC.com and follow us on 19
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