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Firms see IT as customer-focused business: study

Analysis by EMC and VMware shows CIOs working to create digital-ready organisations

The report indicates that organisations across industries can benefit from transforming their IT service strategy by adopting software-defined technologies.
The report indicates that organisations across industries can benefit from transforming their IT service strategy by adopting software-defined technologies.

EMC has launched a study drawing attention to the growing gap between the current state of IT infrastructure and the level of preparedness organisations want to achieve.

Results indicate organisations are seeking to be cost-efficient, with the potential to save almost a quarter (24%) in operation costs by transforming IT. Regardless of industry, most organisations reported wanting to improve their IT service strategy to run IT like a customer-focused business, the report added.  

The report, the State of IT Transformation report, is an analysis of more than 660 EMC and VMware customers worldwide and shares insights on the direction of IT transformation investments in the region. It’s being launched at EMC’s fourth annual CIO Connect Summit, being held at the Yas Viceroy, Abu Dhabi, on 25th – 26th May. The State of IT Transformation report is based on a qualified evaluation of companies who attended IT Transformation workshops conducted by EMC and VMware and are in the midst of IT transformation initiatives. EMC and VMware aided the companies to determine the gaps, progress and objectives in their long term and short term IT transformation journeys.

Among other key highlights: While 90% of organisations indicated the importance of having a documented IT transformation strategy and roadmap with executive and line of business support, 55% admitted to having nothing documented.

80% indicated they want to standardise services in a business-focused catalogue with a self-service portal and increase automation to improve IT service delivery including:

- Resource Provisioning – Delivery of continuous service to meet customer demands and prevent financial setbacks depends upon streamlining all business processes by provisioning the infrastructure timely. 77% of participants expressed the desire to provision infrastructure resources in less than a day, or dynamically as needed.

- Financial Management – 87% said they rely on a yearly allocation-based recovery, or a project-by-project recovery of IT costs.

-Metering – 88% of organisations said they want to get to a state where they use automation to track the resources each business unit is consuming.

Accelerating application development

Mobile services have revolutionised customer engagement, becoming a medium to broaden the reach of every company. This necessitates the need to provide customers quick access to services through mobile. According to the report, participants said they want to automate the application framework to help their organisations develop software and mobile applications faster.  Yet more than 80% of participants reported lacking a scalable, infrastructure-independent application framework and 68% said their organisations take 6–12 months or more to complete a new application development lifecycle. 

In addition, most organisations indicated they want to have hybrid cloud architecture for their production applications within the next 18-24 months.

Key highlights from the survey by industry

Healthcare – Firms in the healthcare industry are the least mature in their IT transformation and scored themselves the lowest in more areas while prioritising gaps in more areas than any other industry.

Retail – They also report having a majority of their applications built on a scalable, infrastructure-independent application framework.

Telecommunications – participants in this sector lead in network virtualisation with the average firm reporting they’ve achieved 40% in network virtualisation; the top 20% of companies in this sector have achieved nearly 80% network virtualisation.

Financial Services – participants scored above average in most areas of their IT transformation initiatives with nearly 40% having a fully supported, documented IT transformation strategy and roadmap.

Government – top 20% reported having over 20% of production apps in a hybrid cloud and nearly 100% of compute and applications virtualised.

Reacting to the study, Habib Mahakian, vice president, Gulf & Pakistan, EMC urged businesses to adapt to changing consumer demands, which are evolving at a rapid pace. "This underlines the need for CIOs to strategically envisage adding more value to consumer engagements and drive competitive differentiation by attaining unprecedented organisational efficiencies. As business needs continue to change and the role of the modern day CIO evolves, it is time to undertake IT transformation in order to enable business scalability..

"The State of IT Transformation report indicates that organisations across industries can benefit from transforming their IT service strategy by adopting software-defined technologies. We look forward to helping our customers adopt and embrace an IT transformation strategy, thus driving business and extracting a higher enterprise value,” Mahakian adds.