Enterprise Infrastructure and IT: Market Outlook for 2018

Transcription

1 Enterprise Infrastructure and IT: Market Outlook for 2018 Rohit Mehra, Vice President, IDC ITM-1003

2 Enterprise Infrastructure and IT: Market Outlook for 2018 Rohit Mehra Vice President, IDC January 2018 IDC

3 o IDC s 3 rd Platform and DX o IT Industry Predictions 2018 o o Enterprise Infrastructure Predictions 2018 Implications for IT IDC 3

4 IDC s Chapters of the 3 rd Platform Innovating in the Digital Economy Chapter Experimentation Chapter Multiplied Innovation Chapter Autonomy 4

5 IDC s 3 rd Platform and DX BOT IoT INTERNAL PROCESSES INTELLIGENT CORE EXTERNAL PROCESSES AR/VR Mobile People Assets Connected Processes API IDC5

6 Making Digital Transformation a Reality Migrate & Modernize System of Record Compliant Reporting Process drives Information Systems of Trust Build & Extend Digital Platforms Digital Repository Information drives process Systems of Insight Monetize Digital Services Distributed transactions Information Channel Systems of Action IDC Visit us at IDC.com and follow us on 6

7 Most Organizations Have Made Progress on their DX Journey 5% Digital Disruptor OPTIMIZED MANAGED 12% Digital Transformer 28% Digital Player REPEATABLE 34% Digital Explorer OPPORTUNISTIC 20% Digital Resister AD HOC Showing the % of organizations in the world at each stage of Digital Transformation Source: IDC, Digital Transformation MaturityScape Benchmark, n=413 IDC 7

8 Digital Transformation Industry Leadership We We intend to to be be the the leaders for for digital transformation transformation of of the the automotive automotive industry. industry. Harald Krüger CEO, BMW William Ford Executive Chairman, Ford If If we we do do this this correctly, correctly, we we can can have have a a very very different different looking looking company company years years from from now. now. Business Transformation Cloudbased IT Toyota is taking a bold step creating a company dedicated to bringing cloud intelligence into the driving experience. Zack Hicks CEO of Toyota Connected IDC 8

9 Challenges: Skills, Applications and Data Slow Successful Dx Execution Q. From an IT perspective, what were the biggest challenges with the Digital Transformation (DX) project s successful execution? Having the right IT skills in house Need to develop new applications Migrating existing workloads to Public Cloud IaaS Internal data integration issues Network latency or system performance issues Outdated applications, too costly to refactor/rewrite Cost/time to build out a PaaS innovation/test bed Lack of infrastructure automation Data center space, power or cooling constraints Aging or poor performance storage platforms Lack of modern computing infrastructure Source: Dx Datacenter Study 2017, N = 304 Skills Applications/Data Infrastructure

10 Dx Investment Priorities: Security, Applications and Infrastructure Q. Which of the following IT areas were the largest investments and/or changes made in response to the Digital Transformation (DX) project? Security including data and systems security Infrastructure including data center, storage, networking, compute Mobility including mobile apps, devices and endpoints Applications including custom applications Process / organizational and skills including staffing, automation, and IT processes Cloud including public or private cloud Data analytics including data integration, cognitive and artificial intelligence Source: Dx Datacenter Study 2017, N = 304 Security Applications/Data Infrastructure

11 Managing the New IT Environment #5 Help Desk/Service Desk #1 System Management #2 Enterprise Apps #4 Infrastructure Management Top technology areas where enterprises want a provider to manage as part of a public and/or private cloud service #3 Info/Data Management Source: IDC Q US Outsourced-Managed Services Survey, N=401 IDC 11

12 Network Pros and IT Departments Evolve From Tin huggers Configuration happens at the device level Networking professionals focus their skills and time on learning and applying complicated CLI commands, device by device. Network technicians manage by device Passwords and access control lists Port blocking Security patch updates Firmware and OS images upgrades Backup device configurations To Digital Transformers IDC Visit us at IDC.com and follow us on 12

13 IDC FutureScape: Worldwide IT Industry 2018 Note: The size of the bubble indicates complexity/cost to address. Source: IDC, By 2021, at least 50% of global GDP will be digitized, with growth driven by digitally-enhanced offerings, operations and relationships; by 2020, investors will use platform/ecosystem, data value, and customer engagement metrics as valuation factors for all enterprises. By 2020, 60% of all enterprises will have fully articulated an organization-wide digital transformation (DX) platform strategy, and will be in the process of implementing that strategy as the new IT core for competing in the digital economy. By 2021, spending on cloud services and cloud-enabling hardware, software and services will more than double to over $530 billion, leveraging the diversifying cloud environment that is 20% at the edge, over 15% specialized (non-x86) compute, and over 90% multicloud. By 2019, 40% of DX initiatives will use AI services; by 2021, 75% of commercial enterprise apps will use AI, over 90% of consumers will interact with customer support bots, and over 50% of new industrial robots will leverage AI. By 2021, enterprise apps will shift toward hyper-agile architectures, with 80% of application development on cloud platforms (PaaS) using microservices and cloud functions, and over 95% of new microservices deployed in containers. By 2020, human-digital (HD) interfaces will diversify, as 25% of field-service techs and over 25% of infoworkers use AR, nearly 50% of new mobile apps use voice as a primary interface and 50% of consumer-facing G2000s use biometric sensors to personalize experiences. By 2021, at least 25% of the G2000 will use blockchain services as a foundation for digital trust at scale; by 2020, 25% of top global transaction banks, nearly 30% of manufacturers and retailers and 20% of healthcare organizations will use blockchain networks in production. By 2020, 90% of large enterprises will generate revenue from data-as-a-service - from the sale of raw data, derived metrics, insights, and recommendations - up from nearly 50% in Improvements in simple ("low-/no-code") development tools will dramatically expand the number of nontech developers over the next 36 months; by 2021, these nontraditional developers will build 20% of business applications and 30% of new application features (60% by 2027). By 2021, more than half of the G2000 will see an average of 1/3 of their digital services interactions come through their open API ecosystems, up from virtually 0% in amplifying their digital reach far beyond their own customer interactions. IDC 13

14 The Shifting Role of the Developer TASKS & SKILLS INFRASTRUCTURE In 2022, 50%+ of standard developer tasks are automated, with increased use of AI and other enablers. By 2027, advanced developer skill sets shift from writing code to defining and managing application architecture. Cloud functions (e.g., lambda, serverless computing) transition to a mainstream solution used by 80% of the Fortune 1000 in This rapidly expands the PaaS market by further abstracting infrastructure. NEW FEATURES MACHINES In 2027, the population of business (no/low code) developers has doubled to over 10 million and writes 60% of all new application features. Machines are training machines without close human oversight and develop 10% of applications without in-depth involvement from developers by

15 Next-Generation Infrastructure Takes Hold Infrastructure By 2020, 10% of infrastructure computing is non-x86, and hardware acceleration is a $6B opportunity. In 2022, it is 15 20% of compute ($20B+). Virtual CPE/edge IT goes mainstream in 2022, displacing 80% of existing edge appliances. In 2027, 1/3 of all infrastructure-related computing is heterogeneous, substantially decreasing the time to value of insight for large datasets. In 2020, over 25% of IT infrastructure revenue has autonomous capabilities, expediting outcomes and reducing human error. 15

16 Worldwide Enterprise Infrastructure 2018 Predictions Through 2021, NVMe will replace SCSI as the protocol of choice in enterprise-class arrays; more than 25% of spending on AFAs in 2021 will derive from end-to-end NVMe-based systems. By 2021, 50% of enterprise infrastructure will employ some form of cognitive and artificial intelligence to improve enterprise productivity, manage risks, and drive overall cost reduction. By 2021, over 25% of infrastructure services value will have autonomous self-managing capabilities, expediting business outcomes and mitigating the risk of human error resulting from manual intervention In 2020, spending on multi-silicon computing will total more than $6 billion, with the technology becoming ubiquitous in most computing environments. In 2021, spending on hybrid-cloud data services for data protection, integration and orchestration, security and compliance, and location optimization will total more than $60B. By mid-2020, SD-WAN, as an enabler of edge computing, will be the mainstream foundation technology one that represents more than $6 billion in spending on infrastructure and managed services in By 2019, 50% of multinational organizations will have revisited their cloud, IT infrastructure, and data governance setups to ensure compliance with new data regulations being introduced around the world, especially the European Union's GDPR and PSD2. By 2021, 65% of enterprises will be deploying universal encryption on server infrastructure to comply with data privacy, integrity, and confidentiality. By 2021, installed and in use container instances will amount to more than 3.5 billion, with over 20% of them running in distributed locations serving edge and IoT workloads. In 2021, spending on Infrastructure-as-a-Service will be 15% more than spending on on-premises compute, storage, and networking infrastructure, reflecting the ongoing shift from capex to opex among enterprises. IDC 16

17 Drivers for Enterprise Infrastructure Human vs Machine: The Impact of AI and Automation Innovation Impasse: Legacy Systems Constraining Transformation Accelerating DX: Technology-centric Transformation Altering Business and Society DX Delta: Leaders and Disruptors Widen Performance Gap Pace of Change: Technology Capabilities Enable Sustainable Change at the Speed of Digital Business Cyberthreats: Theft, Ransom, and Cyberattack on the Rise Platform Disruption: Unleashing Digital Innovation s Power for Scale For additional details on the above Drivers, please refer to IDC FutureScape: Worldwide Enterprise Infrastructure 2018 Predictions (Doc # US ) IDC 17

18 Prediction 3: By 2021, in Value Terms, Over 25% of Infrastructure Services Will Have Some Autonomous Self-Managing Capabilities, Expediting Business Outcomes and Mitigating the Risk of Human Error Resulting from Manual Intervention IT Impact Faster access to infrastructure Reallocating operations skill sets and retraining Infrastructure becomes intent based, policy driven, and increasingly intelligent. Guidance AI, and machine learning within existing architectures Assess workloads fluctuation in resource demand and user access 18

19 Prediction 5: In 2021, Spending on Hybrid Cloud Data Services for Data Protection, Integration and Orchestration, Security and Compliance, and Location Optimization Will Total More Than $60 Billion IT Impact Partnerships with data-focused stakeholders Faster access to the right data, reduced redundant data Greater security and compliance, data insight, visibility, control, and governance. Guidance Create a data map identifying the sources and formats of data. Map data sources to value, custodians and integration points Cross function data management data-centric vision and strategy 19

20 Prediction 7: By 2019, 50% of Multinational Organizations Will Have Revisited Their Cloud, IT Infrastructure, and Data Governance Setups to Ensure Compliance with New Data Regulations Being Introduced Around the World, Especially the EU's GDPR and PSD2 IT Impact Accelerated storage, compliance, and security modernization Holistic hybrid cloud services facilitate bulletproof response to cybersecurity events Data oversight programs and education iteration Guidance Leverage GDPR, etc. to drive holistic controls and insights Define roles and obligations of data controller, processor, and subprocessor 20

21 SDx is being driven by Flexibility, Agility and Efficiency Which of the following attributes of an SD-WAN service or solution are the most important considerations when choosing an SD-WAN solution for branch office connectivity? Flexibility to add/change bandwidth capacity in near real-time Flexibility to use different networks (e.g., Broadband, MPLS, LTE) for application delivery Lower WAN transport costs Faster turn up (WAN provisioning) Optimizing WAN traffic by latency, jitter, packet loss Prioritize network connection by application type or workload Reduce WAN-management complexity Reduce dependency on the MPLS network Self-service portal Policy-based intelligent path selection 0% 10% 20% 30% 40% 50% 60% N=772. Base=Respondents indicated organization plans to deploy SD-WAN as an overlay framework on existing WAN /Network connections within 2 years Notes: Managed by IDC's Quantitative Research Group.; Source: U.S. Enterprise Communications Survey, IDC, March, 2017 IDC Visit us at IDC.com and follow us on 21

22 SD-WAN is Another Step Toward SD-Access Software Defined WAN SD-Access/SD-Branch Virtual functions Routing Firewall WAN optimization Session border control WLAN Transport agnostic Manage App not CPE Agile Delivery Replace expensive CPE On-demand service pricing Manage virtual appliances IDC Visit us at IDC.com and follow us on 22

23 Demand for Simplicity Given pressures of digital transformation, cloud, skills gaps, and doing more with less, users will demand simplicity IT and Network Infrastructure must be easier to consume, deploy, and manage Automation, policy creation and modification, programmability must be made progressively simpler Operational efficiency becomes indispensable IDC 24

24 Becoming a Digital Native Enterprise: Digital Innovation Network at the Core IDC 25

25 Essential Guidance 1 Pace of change requires fast response. Investments and strategy driven by Digital Transformation goals. 2 DX impacts business models, applications and infrastructure. Cloudfirst strategy urgency paired with a pragmatic roadmap. 3 4 IT is the great enabler to transformation. Reprioritizing internal IT skills to support rapid digital innovation. Differentiation is hard and even the smallest innovations matter. The network needs to keep up with the edge. IDC 26

26 For More Information Rohit Mehra Vice President, Twitter LinkedIn IDC 27

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