The foundation of digital business

With digitisation becoming a top priority for organisations in the Middle East, the importance of data centres continues to grow abounds.

Tags: Cloud computingData analyticsData centre infrastructure management DCIMGartner IncorporationIBM (www.ibm.com)United Arab Emirates
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The foundation of digital business Mousa: “Businesses and organisations have been driven to rapidly modernise their portfolio of data centres as a direct result of a combination of factors such as evolving economy pressures and the rise of new enterprise computing technologies."
By  Alexander Sophoclis Pieri Published  December 14, 2016

According to findings from a recent survey produced by Gartner and unveiled during the recent annual Gartner Symposium/ITxpo, global CIOs report that despite modest increases in enterprise IT budgets, spend on digitisation is growing.

The 2017 Gartner CIO Agenda Survey, which gathered responses from 2,598 CIOs based in 93 countries, and who represented roughly $9.4t in revenue/public-sector budgets and $292b in IT spending, showed that CIOs are shifting their investments towards digitalisation.

While the average CIO currently spends 18% of their budget supporting digitalisation, the figure is expected to increase to 28% by 2018. Additionally, top performing businesses, which have a digitisation strategy in play, are already spending 34% of their IT budget on digital. This figure is expected to increase to 44% by 2018.

In terms of planned technology investments, the survey’s respondents highlighted analytics, cloud services, security, and digital market management, as key areas to develop.

An average of 38% of respondents identified business intelligence and analytics as an investment priority, while all, save for the top performers, identified enterprise resource planning as a key investment.

The survey concluded that in order for organisations to fully capitalise on moving their operation into the digital ecosystem, CIOs would need to focus on three core domains: technology, organisational capabilities and enterprise leadership.

Commenting during the unveiling of the survey’s findings, Andy Rowsell-Jones, research vice president at Gartner, shared: “A digital ecosystem amplifies the reach of a company. It enables scalable connections between known partners and customers, but also provides a platform for unknown parties to connect with one another.

“Ecosystems blur industry boundaries and give rise to entirely new kinds of companies, products and services,” he added.

The rise of digitalisation is also one of four global megatrends that Gartner predicts will greatly impact data centre strategies.

Pressed to meet future digital demand, CIOs will need to implement novel digital platforms, and this will need to factor into account the various data centre options available. These include on-premises, edge computing, cloud, hosting and colocation.

The other megatrends predicted to impact how data centres are developed includes demographic and social change, which will force CIOs to harness talent for a strong digital core and implement a long-term plan, as well as climate change and resource scarcity.

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