Powering your IT. Transform for Success in the next Decade
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1 Powering your IT Transform for Success in the next Decade Carla Arend Program Director, European Infrastructure & Cloud Research Oracle - Madrid 19 th November 2015
2 Most critical phase yet in the 3rd platform era The Innovation Stage rd platform: 9.5% CAGR nd platform: 2.4% CAGR Total CAGR : 0.7% 3rd Platform is 29% of IT spending but 89% of spending growth. WE ICT spending ($bn) 2
3 Digital Transformation is Multi Faceted and Accelerated Leadership Transformation Omni-Experience Transformation Information Transformation Operating Model Transformation WorkSource Transformation 3
4 Digital Transformation is a CEO Priority We re also taking advantage of the immense business opportunities offered by digitalization The possibilities of the digital revolution must be put to good use Everything we do in this networked world has to be open We felt we have to go digital in a much more proactive way Joe Kaeser, CEO Siemens Tom Enders, Volkmar Denner, Paul Bulcke CEO Airbus CEO Bosch CEO Nestlé IDC Visit us at IDC.com and follow us on 4
5 Innovation is driving Digital Transformation Digital Transformation is now a major business priority for the next 12 months No 41% [CATEGO RY NAME] [PERC No 52% Yes 48% A new group has been created focused on innovation The business has become more involved in IT strategy No 32% Yes 68% 5
6 Thrivers Versus Survivors The Global 2000 Largest Companies 2/3 rd Thrivers Digital transformation at the center of their corporate strategy 1/3 rd Survivors In reactive mode risking company survival 6
7 Transforming to a Business Innovation IT Organization IDC s Enterprise IT Transformation Maturity Model Optimized Managed Ad Hoc Core IT No effort between business and IT to coordinate or incorporate 3rd Platform technology Opportunistic 2nd Platform IT Uncoordinated efforts between business and IT around 3rd Platform implementations; limited progress toward 3rd Platform adoption Repeatable Business Innovation Effective partnership between business and IT around 3rd Platform 3rd Platform IT implementations allows organization Coordinated efforts between business to outpace competitors through the and IT around 3rd Platform use of 3rd Platform implementation allow organization to keep pace with peers in 3rd Platform adoption Business Transformation Highly orchestrated interaction between business and IT around 3rd Platform implementations, enabling a world-class organization with lasting competitive advantage driven by 3rd Platform transformation and an organization that has embraced it. Source: IDC, Enterprise IT Transformation Maturity Model,
8 Are you at the right end of the IT Maturity ladder? Optimized Core IT Ad Hoc 6 % No effort between business and IT to coordinate or Core incorporate IT 3rd Platform technology Opportunistic 2nd Platform IT 31 % Uncoordinated efforts between business and IT around 3rd Platform implementations; limited progress toward 3rd Platform adoption 2 nd Platform IT 3rd Platform IT Repeatable Coordinated efforts between business and IT around 3rd Platform implementation allow organization to keep pace with peers in 3rd Platform adoption Managed Business Innovation Effective partnership between business and IT around 3rd Platform implementations allows organization to outpace competitors through the use of 3rd Platform Business Transformation Highly orchestrated interaction between business and IT around 3rd Platform implementations, enabling a world-class organization with lasting competitive advantage driven by 3rd Platform transformation and an organization that has embraced it. Source: IDC's Enterprise IT Transformation Maturity Model Benchmark Study, May n=243 8
9 Are you at the right end of the IT Maturity ladder? Core IT Ad Hoc 6 % No effort between business and IT to coordinate or Core incorporate IT 3rd Platform technology Opportunistic 2nd Platform IT 31 % Uncoordinated efforts between business and IT around 3rd Platform implementations; limited progress toward 3rd Platform adoption 2 nd Platform IT 3rd Platform IT 44 % Repeatable Coordinated efforts between business and IT around 3rd Platform implementation allow organization to keep pace with peers in 3rd Platform adoption 3 rd Platform IT Managed Business Innovation Effective partnership between business and IT around 3rd Platform implementations allows organization to outpace competitors through the use of 3rd Platform Optimized Business Transformation Highly orchestrated interaction between business and IT around 3rd Platform implementations, enabling a world-class organization with lasting competitive advantage driven by 3rd Platform transformation and an organization that has embraced it. Source: IDC's Enterprise IT Transformation Maturity Model Benchmark Study, May n=243 9
10 Are you at the right end of the IT Maturity ladder? Core IT Ad Hoc 6 % No effort between business and IT to coordinate or Core incorporate IT 3rd Platform technology Opportunistic 2nd Platform IT 31 % Uncoordinated efforts between business and IT around 3rd Platform implementations; limited progress toward 3rd Platform adoption 2 nd Platform IT 44 % Repeatable Managed Business Innovation Effective partnership between business and IT around 3rd Platform 3rd Platform IT implementations allows organization Coordinated efforts between business to outpace competitors 15 % through the and IT around 3rd Platform use of 3rd Platform implementation allow organization to keep pace with peers in 3rd Platform adoption 3 rd Platform IT Business Innovation 75% of Organizations are Operating at a 2 nd Platform IT or 3 rd Platform IT Transformational Stage Optimized Business Transformation Highly orchestrated interaction between business and IT around 3rd Platform implementations, enabling a world-class organization with lasting competitive advantage driven by 3rd Platform transformation and an organization that has embraced it. 4 % Business Transformation Source: IDC's Enterprise IT Transformation Maturity Model Benchmark Study, May n=243 10
11 Digital Transformation drives IT demand Total Terabytes shipped Compute Cores shipped Servers shipped 4 per. Mov. Avg. (Compute Cores shipped) 4 per. Mov. Avg. (Servers shipped) All data Western Europe; Sources: IDC EMEA Quarterly ESS and Server Trackers, 2Q15 (September 2015) 11
12 Goal of Operating a Data Center Facility (energy, building, etc.) Staff Hardware (servers, storage, networking) Delivering IT services to users, External Contracts (outsourcers, clouds, suppliers) Datacenter Software (Business App, OS, BSM, System Mgmt) partners and customer 12
13 2015 Datacenter Challenges Security and Compliance Making effective use of cloud Cost/constrained capital budgets Technology refresh (server and storage upgrades) IT staff productivity, headcount and skills Data migration Datacenter automation Disaster recovery / high availability capabilities Controlling power & cooling costs Datacenter Consolidation / Increasing Density 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% Source: 2015 IDC European Software Survey, N=776 13
14 DataCenter Disruption Drivers Technology Workloads People & Process 14
15 Technology Disruption Converged/Integrated Systems All Flash Arrays Hybrid Flash Arrays Hyperconverged Software-defined Datacenter Cloud OpenStack Containerisation 15
16 Market Growth 2015 Forecasted Growth in WW Spending New Industries & Technologies Drive Hyperconverged Infrastructure All Flash Arrays Integrated Infrastructure & Platforms ODM Direct Storage Systems Hybrid Flash Arrays Enterprise Networking Market Total Infrastructure Market External Storage Market Server Market 0% 20% 40% 60% 80% 100% 120% 16
17 Cloud-Related Spending in EMEA, 2015 Customer site Cloud services deployment models $7.5 B Private Cloud Services Managed private cloud Hosted private cloud Dedicated Private cloud Service provider site $2.4 B IaaS Virtual private cloud Public Cloud $1.9 B PaaS Public cloud $11.6 B SaaS Dedicated/single-tenant delivery platform Shared/multitenant delivery platform Characteristics and definitions of cloud services: Characteristics and definitions of cloud services: Shared, standard service Solution-packaged Self-service Elastic scaling Use-based pricing Accessible via the Internet Standard UI technologies Published service interface/api Source: IDC European Cloud Strategies CIS
18 DataCentres are transforming into Clouds Cloud Adoption Hosted Private Cloud On-Premise Private Cloud Public SaaS Public PaaS Public IaaS 0% 10% 20% 30% 40% 50% 60% Spain WE Source: European CloudView Survey, n=933 18
19 Datacentres are transforming into Clouds - Future Plans Public SaaS Public PaaS On-Premise Private Cloud Public IaaS Hosted Private Cloud 0% 5% 10% 15% 20% 25% 30% 35% Spain WE 19
20 Workload Disruption Big Data & Analytics IoT 20
21 $M Big data pushes limits on Storage and Infrastructure Big Data Market Size, Western Europe Market size will reach $3.6bn in 2015 and $6.8bn by 2016 Around half of this spending is on infrastructure Infrastructure Implications Memory-optimized servers Merging relational and nosql Real-time operational intelligence Analytics at Edge locations Hybrid cloud scenarios Storage Server Networking Software Services 21
22 People & Process Disruption: DevOps pushes operational capabilites 22
23 From the big eating the small, to the fast beating the slow Q. On average how long (in days) does it take to develop and deploy a new application? 10 to 99 empl. 100 to Source: European Integrated System Survey, total =400 (103, 137, 160) Decreasing Time To Value (TTV) will be a key strategic imperative for IT leaders Handling change is still problematic, leading to slow evolution and patchy quality Market disruptions and associated opportunities risk being missed 23
24 Can you change things to nurture innovation? 11% 17% Q: What proportion of time is spent focusing on the following areas? Provisioning, patching, config management 39% 19% New service request and approval mgmt Vendor and internal meetings Monitoring, troubleshooting, remediation 14% Innovation and new projects Source: European Integrated System Survey (December 2013), total =
25 IDC s 3D Technology Leadership Framework Create A Virtuous Cycle of IT Value Creation Keep the existing IT organization vital with continuous infusion of new skills, techniques, and culture Run an agile, rapid development process when business requirements dictate 3 rd Platform technology adoption Legacy system and process replacement Integrate systems from unstable to stable, and from experimental to operational. Operational It Management IDC Visit us at IDC.com and follow us on 25
26 The Old Way of Buying Infrastructure
27 Integrated Systems do the integration legwork to speed time to value Consolidate Virtualize Automate Orchestrate Build and Integrate Cloud Capacity ~25% EU organizations Storage and Networking ~50% Virtualization Layer Storage and Networking ~15% System Management I/O convergence Virtualization Layer Storage and Networking Integration ~10% Service Management I/O convergence Virtualization Layer Storage and Networking Build or Rent Application Specific Systems Rack and blades Rack and blades Rack and blades Rack and blades Bring Resources to Datacenter Reduce physical servers Storage, server, network aware of each other Speed up deployment Next Generation Approach 27
28 IDC s Approach to Integrated Infrastructure and Platforms Middleware Storage Integrated Platforms Common pool of IT assets Middleware, Database, Dev. Tools HW & SW assets tuned for service BA, OLTP, DW, BI, Collaborative Network Servers System SW Integrated Infrastructure Common pool of IT assets Compute External SAN Storage Network Infrastructure Management Hyper-Converged Infrastructure Common pool of IT assets Compute Server SAN Storage Network Infrastructure Management 28
29 Integrated Systems are two distinct markets Integrated Infrastructure Integrated Platforms Others 6% IBM 7% Hitachi 6% Dell 5% VCE 28% HP 10% IBM 7% Hitachi 4% Oracle 47% EMC 12% Cisco/NetApp 16% HP 20% Others 32% 29
30 Integrated Systems vs. Hyper-Converged ms Converged Integrated Systems Systems Integrated Systems Middleware-centric Middleware Apps Database-centric Middleware-centric Database Hyperconvergence Middleware Integrated Systems Apps Database-centric Database Core storage and compute functionality in a single, highly virtualized, solution Operating Operating System System Operating System Operating System Virtualization Virtualization SW SW Systems Management Systems Management Systems Management Systems Storage Volumes Management Virt. Storage Function Virt. Internal Fabric Internal Fabric Internal Fabric Networking Internal Fabric Virt. Storage Storage Storage Virtualization SW Storage Compute Nodes Compute NodesCompute Nodes Compute Nodes With mixed Flash/HDD storage Operating System All compute and storage functions delivered through the same server-based resources Systems Management Internal Fabric Storage Typically in clusters and scale-out Compute Nodes 30
31 Integrated Systems: Agility, TCO, Utilization and Automation ms Integrated Systems Integrated Systems Middleware-centric Database-centric Lower Power/Cooling Costs Middleware Apps Database Improved Disaster Recovery Lower Maintenance Costs Operating System Virtualization SW Systems Management Internal Fabric Storage Compute Nodes Operating System Systems Management Internal Fabric Storage Compute Nodes Improved IT staff Efficiency Fewer management Tools Improved Utilization IT resources Lower Total Cost of Ownership Improved agility / faster resource availability 0% 5% 10% 15% 20% 25% 30% Source: European Storage Survey, 2015; N = 498 Q. What do you see as the top two major benefits of Integrated Systems? Please select top two 31
32 Use Cases for Integrated Systems Datacenter Transformation IT Owned /CIO Driven/ potentially MSP run Operational efficiency Predictable expansion Less over-provisioning Inadequate preparation and rationalization Application Specific IT Owned /App Owner Driven/often MSP run DB, EPIC., VDI Faster deployment Predictable performance Mismatch in software licensing/pricing New Service Creation IT Evangelist/BU Leader/ Cloud Provider Mobile or Analytic services (Precision Medicine) Fast Geo expansion Rapid service expansion Monetize data assets IT resistance Lack of flexibility 32
33 If you don t like the feeling of change, You are going to like the feeling of irrelevance even less. Darrin Nelson, Sirius Computer Solutions IDC Visit us at IDC.com and follow us on 33
34 Success Factors Assess your Agility and Maturity to determine next steps Build the right infrastructure for Innovation Automate to achieve SLAs and Scale 34
35 Carla Arend Program Director Infrastructure & Cloud IDC IDC Visit us at IDC.com and follow us on 35
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