Gartner Mid Market Trends- Featured at MES #MES17

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1 Gartner Mid Market Trends- Featured at MES T h e M i d m a r ke t C I O M i d s i ze E n t e r p r i s e S u m m i t

2 MES SPRING April 30 May 2, 2017 Gaylord Opryland Resort Nashville, TN MES FALL Sept , 2017 JW Marriott San Antonio Hill Country San Antonio, TX Conference Highlights: 200+ Midmarket CIOs and Senior IT Leaders Invite-only, pre-qualified, hosted audience of your IT peers Content sessions to help you build or improve your IT department Solutions Pavilion to view and meet vendors and products T h e M i d m a r ke t C I O M i d s i ze E n t e r p r i s e S u m m i t

3 Preview of Gartner Research presented at MES- How do you align? CONFIDENTIAL AND PROPRIETARY This presentation, including any supporting materials, is owned by Gartner, Inc. and/or its affiliates and is for the sole use of the intended Gartner audience or other intended recipients. This presentation may contain information that is confidential, proprietary or otherwise legally protected, and it may not be further copied, distributed or publicly displayed without the express written permission of Gartner, Inc. or its affiliates Gartner, Inc. and/or its affiliates. All rights reserved.

4 How Gartner Defines the Midmarket 100 Employees 500 Employees 1000 Employees $50 Million Lower Midmarket Upper Midmarket $1Billion $500 Million IT Budget IT Budget % of Rev IT Resources End Users Servers & Virtualization Storage Applications WAN Topology Cloud Services Gartner, Inc. and/or its affiliates. All rights reserved.

5 Midmarket Segmentation IT Budget Estimated Storage (3yrs) 121 TB $5-10 Million, 14% $10-50 Million, 9% Less than $1M, 21% Employees = 1068 Revenue= $ 270 IT Staff = 20 End Users: 724 Remote Locations = 26 Servers (Total) = 110 % Virtual = 83% Storage (Average 73TB) 13% = <10 TB 14% = TB 23% = TB 19% = TB 9% = TB 11% = TB 12% = 200+ TB Source: Midsize Enterprise Summits East & West 2016 n=237 $1-5 Million, 56%

6 Midsize Business IT Spending will grow 3.7% in the next 5 years 140,000 Product Support Software Support, hardware maintenance and support Professional Services Consulting, development & integration, IT management & process management 120, ,000 80,000 60,000 40,000 20, Hardware IT Services Software Telco Gartner, Inc. and/or its affiliates. All rights reserved. Source: Forecast SMB, 3Q16, (North America/Midmarket Only)

7 Plans for Public Cloud What are the next applications/workloads you plan to move to the pubic cloud through 2017: EFSS (File Share) Office 365, 12% How many public cloud services are you using in production. 3.3 How many different cloud providers are you using 2.9 N=118 ERP CRM Security /Exchange, 18% VoIP/Phone, 11% Storage, 7% DR/Backup, 25% Source: Midsize Enterprise Summit East 2016 n= Gartner, Inc. and/or its affiliates. All rights reserved.

8 Emerging Technologies Cite the emerging or leading edge technologies that you are most interested in deploying over the next 12 months: Security, 18% IoT, 6% Hyperconvergence, 16% Cloud, 10% DRaaS, 7% SaaS, 3% VDI, 6% IaaS, 2% Azure, 4% Source: Midsize Enterprise Summit 2015 n=201 Office 365, 4% Gartner, Inc. and/or its affiliates. All rights reserved. Storage, 10% Mobility, 9% BI/Analytics, 6% SDN, 2%

9 IT Buying Behavior What classification best describes your IT buying behavior? Seek Tech Breakthrough, 15% Other, 9% Save Money, 12% Value, 64% Save Money Value Seek Tech Breakthrough Other Other We are a blend of all three categories. For commodity items that we can purchase from a variety of vendors we focus on ease of procurement and cost. When working with emerging or mission critical systems, innovation and performance is key. All 3 apply at different times. Thus, our approach is highly project dependent. We are looking for reliability, value and usability. Most of the time in that order. Cost is a driving factor in all organizations, but if the item is unreliable, you will have to buy it again. The best way to put- We are not rich enough to buy cheap stuff. Source: Midsize Enterprise Summit West 2015 n=106

10 Top three IT Challenges in your Organizations 28% What do you see as the biggest threat your organization over the next 24 months Security 20% Insufficient funding Skill shortages 15% The Economy Source: Midsize Enterprise Summit West 2016 n=108 7% 6% 5% 4% 4% 4% 4% 3% Security Staffing Budgets BI/Analytics DR Move to Cloud Change Legacy Mobility Project Management ERP Source: Midsize Enterprise Summits East & West 2016 n= Gartner, Inc. and/or its affiliates. All rights reserved.

11 Top 3 Infrastructure Priorities What are the top three Infrastructure Initiatives over the next 12 months? Virtualization Hyperconvergence Storage Virtualization, 3% Hyperconvergence, 3% Storage, 5% UC/Telephony Datacenter UC/Telephony, 7% Datacenter, 7% Disaster Recovery Legacy Security Network Move to Cloud Disaster Recovery, 12% Legacy, 14% Security, 14% Network, 15% Move to Cloud, 16% 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% Gartner, Inc. and/or its affiliates. All rights reserved.

12 Top 3 Application Priorities What are the top three Application Initiatives over the next 12 months? Document Document, 3% Legacy/Vertical Financials Sharepoint Mobile Apps Legacy/Vertical, 6% Financials, 6% Sharepoint, 6% Mobile Apps, 8% Office 365 Office 365, 12% CRM Web/Portal Upgrades CRM, 10% Web/Portal Upgrades, 11% BI/Analytics ERP BI/Analytics, 19% ERP, 20% 0% 5% 10% 15% 20% 25% Gartner, Inc. and/or its affiliates. All rights reserved.

13 Five Trends Driving Change in the Midmarket 1. Adoption of Emerging Data Center Solutions 2. Strategic and Tactical Use of Cloud Infrastructure (IaaS) and Application Services (SaaS) 3. Improve Security Prevention, Detection and Response 4. Analytics to Improve Business and IT Operations 5. Enablement of the Digital Workplace Gartner, Inc. and/or its affiliates. All rights reserved.

14 Hype Cycle for Small and Midsize Business, 2016

15 Learn more by attending MES Spring See more about MES Spring- April 30-May 2- Nashville, TN: Click here to register to attend MES Spring MES Fall See more about MES Fall- September San Antonio, TX: Click here to register to attend MES Fall T h e M i d m a r ke t C I O M i d s i ze E n t e r p r i s e S u m m i t

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