Enterprise IT Spending Priorities Are Changing
Enterprise IT Spending Priorities Are ChangingSolution providers should be heartened by the fact that companies planning to outsource tasks to external service providers will increase from 18 to 25 percent.
Data Center OptimizationOnly 9% of IT leaders surveyed said their data centers are optimized. More than 60% said defining a data center platform strategy is one of their most challenging decisions.
Reliance on Service ProvidersIT organizations are slowly increasing their reliance on outsourced service providers from 18% to 25% of tasks in two years. Factors weighing most heavily in the decision are cost (39%) and skills needed (37%).
Location of IT ResourcesIT infrastructure and application workloads in corporate data centers are expected to shrink from 59% to 47% in two years.
IT infrastructure and applications workloads being outsourced are forecast to rise from 13% to 17%.
Co-location facilities will drop from 14% to 13%.
Public clouds are expected to account for 23% in two years.
The Security Fear FactorA full 62% of IT decision-makers cited security requirements as a critical factor in their decisions. Compliance came in next at 37%.
A Multi-Cloud UniverseThe number of respondents running workloads only in a private cloud will drop from 48% to 43% in two years.
The number running workloads only in a public cloud will increase from 28% to 32%.
Those running hybrid clouds will increase from 23% to 25%.
Number of ApplicationsThe average enterprise today has 376 applications in use and expects that to grow to 426 in two years.
The number of applications managed by the internal IT team averages 342 and is expected to grow to 419 in two years.
Mission-Critical Application WorkloadsOn average, about 50% of application workloads are deemed to be mission-critical. The number is expected to rise to 57% in two years.
Movement of Cloud WorkloadsNearly 40% of organizations with public cloud experience reported having moved public cloud workloads back in-house, mostly due to security (55%) and cost (52%) concerns.
Application Assessments43% of organizations have completed an application inventory.
31% define requirements for each workload.
20% have performed an application interdependency analysis.
34%, 41% and 36%, respectively, said they have such projects under way.
Technology Spending PrioritiesPrivate clouds: 48%
Public clouds: 38%
Converged and hyperconverged infrastructure: 31%
Flash storage: 30%
Biggest IT Challenges62% of respondents cited balancing day-to-day IT operations against time needed to drive business innovations as a top challenge, and 37% said it was the most difficult issue to address.
Priorities for IT Operation in the Next 12 MonthsExpand cloud initiatives: 48%
Acquire new skill sets: 40%
Consolidate applications: 37%
While IT organizations are always trying to reduce the amount of money they spend on IT, they are willing to spend money in order to save money. A survey of 100 IT leaders working at organizations with more than 25,000 employees, which was conducted by International Data Corp (IDC) on behalf of IT services provider Datalink, finds that transforming IT operations using a mix of private and public cloud computing platforms is clearly the highest priority. Solution providers across the channel should also be heartened by the fact that the number of organizations planning to outsource tasks to external IT service providers will increase from an average of 18 percent today to 25 percent in two years. This suggests that the number of opportunities for solution providers to increase revenue should be expanding—regardless of where application workloads wind up running. The most immediate opportunity for solution providers might simply be helping IT organizations complete application workload assessments. Given the hundreds of applications an IT organization manages today, it's little wonder that many of them don't have a firm plan concerning what to continue to run in house and what to move to a public cloud. Whatever the role, however, the one thing that is becoming clear to all concerned is that most IT organizations simply can't do everything on their own.