IT TRENDS REPORT 2016:
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1 IT TRENDS REPORT 2016: THE HYBRID IT EVOLUTION SINGAPORE
2 WHAT WE COVER IN THE REPORT IT TRENDS REPORT 2016: THE HYBRID IT EVOLUTION Introduction Key Findings Recommendations Full Survey Results
3 INTRODUCTION This report not only reveals the hybrid IT reality the vast majority of organisations are experiencing, but also explores the barriers to greater adoption of cloud technology. We are in the midst of a once-in-a-decade shift in the technology landscape. This reality has become known as hybrid IT: migrating some infrastructure to the cloud, while continuing to maintain some critical services onsite. At the centre of this shift is the need to ensure always-on application performance regardless of location. The rise of business-critical applications has created this heightened awareness for performance. End-users expect a seamless experience, keeping them blissfully unaware of the changes happening in their IT environments. For IT professionals, their job has become increasingly pressured, complex and forever changed. This report not only reveals the hybrid IT reality the vast majority of organisations are experiencing, but also explores the barriers to greater adoption of cloud technology, as well as the challenges of migrating to the cloud and managing the performance of hybrid IT environments. 3 SOLARWINDS IT TRENDS REPORT 2016: THE HYBRID IT EVOLUTION 2016 SOLARWINDS WORLDWIDE, LLC. ALL RIGHTS RESERVED.
4 KEY FINDINGS IT infrastructures have evolved from traditional onpremises-only to a hybrid strategy that links internal and external IT services driven by the existence of the cloud. 92% of IT professionals say adopting cloud technologies is important to their organisations long-term business success; 38% say it is extremely important. Only 43% estimate that half or more of their organisations total IT infrastructure will be in the cloud within the next 3-5 years. 62% say it is unlikely that all of their organisations infrastructure will ever be migrated to the cloud. The overall number of businesses that have not migrated anything to the cloud went from in 2015 to just 8% in IT professionals are faced with a dual mandate: increase efficiency through cloud services while also ensuring critical systems, databases and applications are secure. Top three hybrid IT benefits*: 1) Increased infrastructure flexibility/agility 2) Infrastructure cost-reduction 3) Relieving internal IT personnel of day-to-day management of some infrastructure 77% say security is the biggest challenge associated with managing current hybrid IT environments. Top three barriers to greater cloud adoption*: 1) Security/compliance concerns 2) The need to support legacy systems 3) Convincing business decision makers of the need and/or benefit Top three areas of infrastructure already migrated to the cloud: 1) Applications 2) Storage 3) Databases Top three priorities for continued or future migration*: 1) Applications 2) Storage 3) Databases *By weighted rank 4 SOLARWINDS IT TRENDS REPORT 2016: THE HYBRID IT EVOLUTION 2016 SOLARWINDS WORLDWIDE, LLC. ALL RIGHTS RESERVED.
5 IT professionals require new skills, tools and resources to successfully drive the hybrid IT migration forward and enable their organisations to better meet business objectives. Only 22% are certain their IT organisations currently have adequate resources to manage a hybrid IT environment. Top five skills needed to better manage hybrid IT environments: 1) Hybrid IT monitoring/management tools and metrics 2) Vendor management 3) Distributed architectures 4) Application migration 5) Service-oriented architectures 5 feel they have the level of support needed from leadership and the organisation as a whole to develop/improve skills needed to better manage hybrid IT environments. 5 SOLARWINDS IT TRENDS REPORT 2016: THE HYBRID IT EVOLUTION 2016 SOLARWINDS WORLDWIDE, LLC. ALL RIGHTS RESERVED.
6 RECOMMENDATIONS As illustrated in the study s findings, IT professionals need to arm themselves with a new set of skills, products and resources to succeed in the hybrid IT era. They should consider the following recommendations: ESTABLISH AN END-USER FOCUS AND SERVICE ORIENTATION The ultimate goal of modern IT is to deliver greater Quality-of-Service (QoS) for end-users to ensure business productivity. To that end, minimizing friction across departmental silos will speed updates, changes, deployments and time-to-resolution for problems, all of which deliver a better end-user experience. IT professionals operating in hybrid IT environments should consider leveraging the principles of a DevOps approach to achieve faster and more provisioning choices, greater agility and organisational efficiency. Doing so will enable them to quickly make updates and changes to infrastructure, which makes IT services, whether on-premises or in the cloud, more agile, lean and scalable. OPTIMISE VISIBILITY With both on-premises and cloud resources to manage in a hybrid IT environment, a management and monitoring toolset that surfaces a single point of truth across those platforms is essential. The normalisation of metrics, alerts and other collected data from applications and workloads, regardless of their location, will enable a more efficient approach to remediation, troubleshooting and optimisation. APPLY MONITORING AS A DISCIPLINE In a hybrid IT world rife with new complexities, monitoring can no longer be an afterthought. By establishing monitoring as a core IT function (a.k.a. monitoring as a discipline), organisations can benefit from a much more proactive IT management strategy, while also streamlining infrastructure performance, cost and security. 6 SOLARWINDS IT TRENDS REPORT 2016: THE HYBRID IT EVOLUTION 2016 SOLARWINDS WORLDWIDE, LLC. ALL RIGHTS RESERVED.
7 IMPROVE BUSINESS SAVVY As more IT services become provided by vendors, IT professionals must improve upon the following trifecta: business savvy for contract negotiation, technical expertise to understand and use the available cloud services and project management. These will all require the ability to effectively manage project budgets, workflows and deadlines; dissect terms and conditions; and understand service-level agreements. FOCUS ON DEVELOPING OR IMPROVING KEY TECHNICAL SKILLS AND KNOWLEDGE Today s IT professionals need to reach across traditional roles and become polymaths in order to be successful in the hybrid IT world as they pivot across multiple domains. The most important skills and knowledge IT professionals need to develop or improve to successfully manage hybrid IT environments are service-oriented architectures, automation, vendor management, application migration, distributed architectures, API and hybrid IT monitoring and management tools and metrics. Learn more about how SolarWinds can help IT professionals better monitor and manage their infrastructure from on-premises to the cloud here. 7 SOLARWINDS IT TRENDS REPORT 2016: THE HYBRID IT EVOLUTION 2016 SOLARWINDS WORLDWIDE, LLC. ALL RIGHTS RESERVED.
8 FULL SURVEY RESULTS 8 SOLARWINDS IT TRENDS REPORT 2016: THE HYBRID IT EVOLUTION 2016 SOLARWINDS WORLDWIDE, LLC. ALL RIGHTS RESERVED.
9 DEMOGRAPHICS 100 IT practitioners, managers and directors in Singapore from small, mid-size and enterprise companies participated in a December 2015 online survey. SIZE OF COMPANY number of employees 24% 2% 9% 18% FTE s FTE s FTE s FTE s IT PRO S ROLE 8% FTE s FTE s FTE s 3% 6% 11% FTE s 11% 4 Practitioner Manager Director IT consultant Other IT-related 4 9 SOLARWINDS IT TRENDS REPORT 2016: THE HYBRID IT EVOLUTION 2016 SOLARWINDS WORLDWIDE, LLC. ALL RIGHTS RESERVED.
10 BENEFITS & BARRIERS TO ADOPTING CLOUD IMPORTANCE OF ADOPTION 25% 5 75% 10 Extremely important 5% 18% Important 34% 48% 49% 64% Small business Mid-size business 3 Somewhat important 38% 7% Not important at all 4% 5% 1% Not sure 2% In general, how important is adopting (the process of acquiring and implementing) cloud technologies to your organisation s long-term business success? 10 SOLARWINDS IT TRENDS REPORT 2016: THE HYBRID IT EVOLUTION 2016 SOLARWINDS WORLDWIDE, LLC. ALL RIGHTS RESERVED.
11 BENEFITS & BARRIERS TO ADOPTING CLOUD FIVE BIGGEST BENEFITS 25% 5 75% 10 Relieves internal IT personnel of day-to-day management of at least some infrastructure 64% 65% 76% #3 by weighted rank Infrastructure cost reduction 66% 74% 82% #2 by weighted rank 76% More service options that scale 51% 55% #5 by weighted rank Eliminates responsibility for maintenance of underlying infrastructure 64% 72% #4 by weighted rank 49% Works with &/or integrates into the lastes technologies/features on the entire application stack 38% 23% Results in more reliable applications 18% 24% 32% Outsources IT expertise form cloud service providers 31% 34% Small business Mid-size business Ease of updating and deploying new code for faster software fixes 29% 34% Ease of building applications and collaborating with other teams 17% 39% 51% Increases infrastructure flexibility and agility 66% 8 82% #1 by weighted rank 88% What do you feel are the five biggest benefits of adopting cloud technologies? 11 SOLARWINDS IT TRENDS REPORT 2016: THE HYBRID IT EVOLUTION 2016 SOLARWINDS WORLDWIDE, LLC. ALL RIGHTS RESERVED.
12 BENEFITS & BARRIERS TO ADOPTING CLOUD INFRASTRUCTURE MIGRATION 7% 2% 2% 8% % OF IT INFRASTRUCTURE MIGRATED TO CLOUD (OVERALL) 7% 12% 33% 3% BY BUSINESS SIZE: SMALL 1 29% 1 migrated migrated 1-9% migrated 1-9% migrated 10-24% migrated 10-24% migrated 25-49% migrated 25-49% migrated 50-74% migrated 50-74% migrated 75-99% migrated 10 migrated 75-99% migrated Not sure 10 migrated 9% 5% 5% 5 49% BY BUSINESS SIZE: MID-SIZED 6% 4% 2% 4% 4% 33% BY BUSINESS SIZE: ENTERPRISE Not sure 32% 33% What is your best estimate of the percentage of your organisation s IT infrastructure that has already been migrated to the cloud (public or private)? 12 SOLARWINDS IT TRENDS REPORT 2016: THE HYBRID IT EVOLUTION 2016 SOLARWINDS WORLDWIDE, LLC. ALL RIGHTS RESERVED.
13 BENEFITS & BARRIERS TO ADOPTING CLOUD INFRASTRUCTURE FORECAST 2% 6% 3% 4% % OF TOTAL IT INFRASTRUCTURE IN CLOUD WITHIN NEXT 3-5 YEARS (OVERALL) 15% 26% 4% 11% BY BUSINESS SIZE: SMALL 26% 18% 25% 11% migrated migrated 1-9% migrated 1-9% migrated 10-24% migrated 10-24% migrated 25-49% migrated 25-49% migrated 50-74% migrated 9% 5% 5% 31% 32% BY BUSINESS SIZE: MID-SIZED 15% 2% 8% 29% BY BUSINESS SIZE: ENTERPRISE 50-74% migrated 75-99% migrated 10 migrated 75-99% migrated Not sure 10 migrated 23% Not sure 19% 19% Within the next 3-5 years, what is your best estimate of the total percentage of your organisation s IT infrastructure that will be in the cloud (public or private)? 13 SOLARWINDS IT TRENDS REPORT 2016: THE HYBRID IT EVOLUTION 2016 SOLARWINDS WORLDWIDE, LLC. ALL RIGHTS RESERVED.
14 BENEFITS & BARRIERS TO ADOPTING CLOUD LIKELIHOOD OF MIGRATING ALL TO CLOUD 25% 5 75% 10 11% Very likely 5% 13% 22% Small business Somewhat likely 19% 28% Mid-size business 28% Somewhat unlikely 38% 46% 13% 34% Very unlikely 38% 4 Not sure 4% 4% 6% How likely is your organisation to migrate its entire IT infrastructure to the cloud at some point in the future? 14 SOLARWINDS IT TRENDS REPORT 2016: THE HYBRID IT EVOLUTION 2016 SOLARWINDS WORLDWIDE, LLC. ALL RIGHTS RESERVED.
15 BENEFITS & BARRIERS TO ADOPTING CLOUD AREAS OF IT INFRASTRUCTURE MIGRATED 25% 5 75% 10 Database 23% 28% 3 Applications 64% 71% 72% 77% 11% Security (testing aas) 5% 9% 15% 34% Storage 26% Other 5% 7% 12% 32% Small business Mid-size business Not yet migrated anything to cloud 9% 12% 2 Which area(s) of your organisation s IT infrastructure have already been migrated to the cloud (public or private)? 15 SOLARWINDS IT TRENDS REPORT 2016: THE HYBRID IT EVOLUTION 2016 SOLARWINDS WORLDWIDE, LLC. ALL RIGHTS RESERVED.
16 BENEFITS & BARRIERS TO ADOPTING CLOUD PRIORITIES FOR FUTURE MIGRATION 25% 5 75% 10 Database 23% 44% 47% 55% #3 by weighted rank Applications % #1 by weighted rank Security (testing aas) 39% 43% 48% #4 by weighted rank 56% Storage 5 53% 66% #2 by weighted rank 2 Other 12% 18% 34% Small business None 8% 1 9% 6% Mid-size business For those area(s) of your organisation s IT infrastructure that have not been migrated to the cloud, which have the highest priority for future migration to the cloud? 16 SOLARWINDS IT TRENDS REPORT 2016: THE HYBRID IT EVOLUTION 2016 SOLARWINDS WORLDWIDE, LLC. ALL RIGHTS RESERVED.
17 BENEFITS & BARRIERS TO ADOPTING CLOUD FIVE BIGGEST BARRIERS TO CLOUD ADOPTION 25% 5 75% 10 Budget limitations 39% 38% 37% #5 by weighted rank Convincing business decision makers of need/benefit 47% 6 69% 77% #3 by weighted rank Lack of skills needed to implement/manage 24% 29% 34% 32% Embracing the DevOps culture 25% 24% 22% 32% Small business Inability to prove ROI 29% 29% Mid-size business Disruption to business/end user performance during implementation 23% 39% Need to continue supporting old, legacy technology 65% 65% 73% #2 by weighted rank Security/compliance concerns 86% 83% 86% 91% #1 by weighted rank Concerns over IT managing hetero/multi-vendor environments 5 48% 49% 55% #4 by weighted rank Work required to move existing infrastructure 46% 47% Other 1% 3% What are/were your organisation s five biggest barriers to adoption of cloud technologies? 17 SOLARWINDS IT TRENDS REPORT 2016: THE HYBRID IT EVOLUTION 2016 SOLARWINDS WORLDWIDE, LLC. ALL RIGHTS RESERVED.
18 CHALLENGES OF MIGRATING TO CLOUD BIGGEST CHALLENGES FACED WHEN MIGRATING 25% 5 75% 10 Disruption to workflow/end-users Acquiring new IT/skills/IT training Testing 35% 23% 34% 3 26% 32% 32% 57% Small business Small Bus Mid-size business Mid-Size Bus End user training 13% 3 Re-architecting apps to work properly in cloud 73% 7 68% 86% Understanding SLAs/managing costs 57% 63% 68% 64% Gaining understanding of dynamic, constantly changing elements potentially associated with cloud computing 51% 57% 55% Gaining understanding of new technology/vendors & if/how relevant they are to my organisation 23% 3 34% 52% Other 2% 4% Which of the following are the biggest challenges your organisation experienced when migrating infrastructure to the cloud? 18 SOLARWINDS IT TRENDS REPORT 2016: THE HYBRID IT EVOLUTION 2016 SOLARWINDS WORLDWIDE, LLC. ALL RIGHTS RESERVED.
19 CHALLENGES OF MIGRATING TO CLOUD IMPORTANCE OF WORKING WITH BUSINESS LEADERS 25% 5 75% 10 51% Extremely important Important 38% 38% 39% 51% Small business Small Bus Mid-size business Mid-Size Bus 1 Somewhat important 5% 1 Not important at all 1% 3% Not sure How important is it to work with business executive leaders when developing and executing a cloud strategy? 19 SOLARWINDS IT TRENDS REPORT 2016: THE HYBRID IT EVOLUTION 2016 SOLARWINDS WORLDWIDE, LLC. ALL RIGHTS RESERVED.
20 CHALLENGES OF MIGRATING TO CLOUD THOSE INVOLVED IN DEVELOPING CLOUD STRATEGY 25% 5 75% 10 CIO/CTO/CISO 35% 67% 73% 86% Chief officer(s) other than CIO/CTO/CISO 26% 26% 23% Line of business manager(s) 17% 24% 33% IT director(s)/vp(s) Systems admin(s) Network admin(s) Storage admin(s) Virtualisation admin(s) 9% 22% 3 26% 46% 38% 46% 43% 42% 5 57% 57% 55% 66% 73% Small business Mid-size business Developer(s) 9% 18% 17% Engineer(s) 5% 13% 2 Architect(s) 17% 38% Cloud provider(s) 22% 28% 26% Systems integration(s) 18% 22% 26% Consultant(s) 16% 2 22% DevOps engineer(s) 7% 7% Small Bus Analyst(s) 7% 7% Mid-Size Bus Other 2% 4% None of the above No cloud strategy 7% 7% 13% Who was involved in developing your organisation s cloud strategy? 20 SOLARWINDS IT TRENDS REPORT 2016: THE HYBRID IT EVOLUTION 2016 SOLARWINDS WORLDWIDE, LLC. ALL RIGHTS RESERVED.
21 REALITIES OF MANAGING HYBRID IT RESOURCES TO MANAGE HYBRID IT ENVIRONMENTS 25% 5 75% 10 Definitely 18% 22% 26% Small business Maybe 34% 43% 64% Mid-size business 17% Not Sure sure 9% 19% Maybe Not not 9% 13% Definitely Not not 1% 3% Does your IT organisation have adequate resources to manage a hybrid IT environment? 21 SOLARWINDS IT TRENDS REPORT 2016: THE HYBRID IT EVOLUTION 2016 SOLARWINDS WORLDWIDE, LLC. ALL RIGHTS RESERVED.
22 REALITIES OF MANAGING HYBRID IT BIGGEST CHALLENGES WITH HYBRID IT ENVIRONMENTS 25% 5 75% 10 42% Compatibility issues with cloud provider Application migration 34% 64% Small business Mid-size business Workload/responsibilities 48% 32% 51% Management & mentoring complexity 5 47% Control over cloud-based services & apps 55% 77% 53% 46% Visibility into cloud-based services & apps 73% 31% New set of technical and/or management skills 24% Security 77% 83% 82% 7 1 Embracing the DevOps culture 1 18% 6% Other 2% 4% Which of the following do you feel are the biggest challenges associated with hybrid IT environments? 22 SOLARWINDS IT TRENDS REPORT 2016: THE HYBRID IT EVOLUTION 2016 SOLARWINDS WORLDWIDE, LLC. ALL RIGHTS RESERVED.
23 REALITIES OF MANAGING HYBRID IT SKILLS NEEDED TO BETTER MANAGE HYBRID IT 25% 5 75% 10 Service-oriented architectures 24% 32% Automation 23% 38% Data analytics 15% 28% 31% 5 Application migration 38% Containerisation & micro-services 17% Distributed architectures 49% 31% API 31% 5 Vendor management 49% 48% DevOps 19% 17% 23% 19% Hybrid monitoring/management tools & metrics 63% 66% 64% Coding & scripting 19% Other Already possess all skills necessary 2% 4% Small business Mid-size business What are the most important skills you need to develop/improve in order to better manage a hybrid IT environment? 23 SOLARWINDS IT TRENDS REPORT 2016: THE HYBRID IT EVOLUTION 2016 SOLARWINDS WORLDWIDE, LLC. ALL RIGHTS RESERVED.
24 REALITIES OF MANAGING HYBRID IT SUPPORT FROM LEADERSHIP TO IMPROVE SKILLS LEVEL OF SUPPORT FROM LEADERSHIP & ORGANISATION TO DEVELOP SKILLS (OVERALL) 3 5 BY BUSINESS SIZE: SMALL 38% 34% 2 28% Yes No Not Not sure 23% BY BUSINESS SIZE: MID-SIZED 28% BY BUSINESS SIZE: ENTERPRISE 18% 55% 17% Do you have the level of support you need from your leadership and the organisation as a whole to develop/improve these skills? 24 SOLARWINDS IT TRENDS REPORT 2016: THE HYBRID IT EVOLUTION 2016 SOLARWINDS WORLDWIDE, LLC. ALL RIGHTS RESERVED.
25 IT TRENDS REPORT 2016: THE HYBRID IT EVOLUTION view the study online at it-trends.solarwinds.com The SolarWinds and SolarWinds & Design marks are the exclusive property of SolarWinds Worldwide, LLC and its affiliates, are registered with the U.S. Patent and Trademark Office, and may be registered or pending registration in other countries. All other SolarWinds trademarks, service marks, and logos may be common law marks, registered or pending registration in the United States or in other countries. All other trademarks mentioned herein are used for identification purposes only and may be or are trademarks or registered trademarks of their respective companies.
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