Copyright 2011 IDC. Reproduction is forbidden unless authorized. All rights reserved.
IDC’s Annual CIO Survey…and other Enterprise ObservationsTim DillonIDC Asia Pacific Associate Vice President Enterprise Mobility and End User
© 2010 IDC
The 4 pillars : Cloud, mobile, social, big dataThe 4 pillars : Cloud, mobile, social, big data
Source: IDC, 2012; all data for 2015
• IT & business services delivered via cloud will form a US$15.8Bmarket
•40% of new software purchases will be via cloud
• >3/4 of social media users access via mobile devices
• >50% of the companies in Asia/Pacific will have a social business strategy
•40% of all employees in Asia/Pacific will be mobile workers
• 1/2 billion smart phones will be shipped
• 90% of organizations will be analyzing some form of 'Big Data’• The global Big Data technologies & services market will reach $16.9B
Clou
dSo
cial
Mobile
Big data
© 2010 IDC
Pop QuizPop Quiz
What words would your CFO use to describe your company’s IT and Communications environments?
3
Jul-12© IDC
CFOs are Taking ActionCFOs are Taking Action
4
Consolidating suppliers
Increasing credit lines
Leasing instead of buying
equipment
Outsourcing non-core business functions
Nearlyof CFOs indicated they will be taking the following actions in the next six months…
IDC Asia/Pacific CFO Poll, Nov 2011, n=250
WHY? CFOs are worried
0% 5% 10% 15% 20% 25% 30% 35%
Launch of new products/services
Falling Sales
Entering new geographical markets
Managing rapid growth
Managing corporate risk to regulatory…
Managing employee compensation levels
Managing foreign exchange risks
Collection of receivables ‐ days to receipt of…
Access to adequate financing
Decreasing overall expenses 3 Main Concerns
• Rising costs of both raw materials as well as employee costs
• Market uncertainty and exposure to swings in foreign exchange rates
• Cash flow, including keeping cash in the enterprise as well as access to financing
IDC Asia/Pacific CFO Poll, Nov 2011, n=250
Jul-12© IDC
But not about ITBut not about IT
If your organisation cuts overall expenses in response to economic uncertainty, which area do you expect will see the largest budget decrease?
IDC Asia/Pacific CFO Poll, Nov 2011, n=250
0% 5% 10% 15% 20% 25% 30% 35%
SalesIT
Finance/AccountingExecutive Management
Manufacturing or Product CreationCustomer Service & Support
MarketingAdminstration & Operations
Research & Development/Engineering
Jul-12© IDC
In Fact….In Fact….
Almost 75% of CFOs view IT as a source of competitive differentiation.
Top 3 Ways IT Creates Differentiation
IDC Asia/Pacific CFO Poll, Nov 2011, n=250
1. Improving operational efficiencies
2. Support innovative products and services
3. Improve customer retention/relationships
Top 3 Ways IT Fails to Differentiate
1. Implementations take too long
2. ROI is better elsewhere in the business
3. Technology is a “commodity” in our company.
CIO Survey Demographics : Size, Revenue
245 Australian Companies
28% 25%47%Small Medium Large
Image Source : KW Monster, Source : IDC Australia CIO Survey May 2012, n = 245
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
<$25m $25m <$100m
$100m +
CIO Survey - Sentiment
IDC Australia CIO Survey , May 2012, n=245
‐30.0%
‐20.0%
‐10.0%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
Negative Neutral Positive
May‐12
Nov‐12
What is your organization's view of Business Prospects – now / in 6 months?
13% Saw budgets DECREASE
30% FLAT
52% Saw budgets INCREASE
What happened toBudgets?
Spend: By Technology Area
0%10%20%30%40%50%60%
Hardware Software IT Services Public CloudComputing
NetworkHardware
Fixed datacosts
Mobile datacosts
Decrease since 2011 Remain the same Increase since 2011
IDC Australia CIO Survey , May 2012, n=245
Jul-12© IDC
Squeeze me, squeeze me! ROISqueeze me, squeeze me! ROI
On investing in any technology, what would be the timeframe by which you expect the investment to start giving a positive return (ROI)?
11
11.7%0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
3+ years
2‐3 Years
1‐2 Years
< 1 Year
< 6 months11.4%
24.5%
9.8%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100% Dependent on Investment
> 5 years
4-5 years
3-4 years
2-3 years
1-2 years
6 months - < 1 year
< 6 months
IDC Australia CIO Survey , May 2012, n=245
Alignment of Business and Technology
IDC Australia CIO, May 2012, n=245IDC Australia CIO Survey , May 2012, n=245
Ranking Business Goal
1 New customers/segments
2 Dealing with cost
3 New market expansion
4 High profit margins
5 Customer retention
Ranking IT Goal
1 Lower costs
2 Infrastructure improvement
3 More secure environment
4 Better use BI/BA
5 Improve business processes
IDC Australia CIO Survey , May 2012, n=245
Jul-12© IDC
2011
MobileDevices & Apps
MobileBroadband
CloudServices
Social Business
Big Data/ Analytics
Where in Time is Your Organisation?Where in Time is Your Organisation?
PC
LAN/Internet
Client-Server
1986
Millions of Users
Thousands of Apps
Hundreds of Millions of Users
Tens of Thousandsof Apps
Billionsof Users
Millionsof Apps
Trillionsof “Things”
Technology Deployment Plans
IDC Australia CIO Survey , May 2012, n=245
0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 90.0%
SVR VirtMobile Apps
Social BusinessGreen ITUC/VC
Client VirtBI/BA
Virtual Private CloudBPO
Private CloudBYOD
NFC/PaymentsPublic Cloud
Deployed Next 12 months Next 13‐24 months
Medium & large enterprises focusing more upon
infrastructure/services/BI /mobility
Small enterprises focusing more upon social business,
public cloud, mobile applications
© 2010 IDC
The 4 pillars Revisited Cloud, mobile, social, big dataThe 4 pillars Revisited Cloud, mobile, social, big data
Source: IDC, 2012; all data for 2015
• Moving beyond OPEX/CAPEX issues to business goals and outcomes•Still fitness for purpose•Cloud is the foundation for the other 3 pillars
•Social media show be a critical part of any organisations multi‐channel go to market strategy. •Optimise it for mobility, target and profile.
•Mobility is a massive enabler of business however do not get too distracted by BYOD•Platforms and Applications more important
•SMB friendly solutions will come from the cloud. •Large enterprises will need to brace for potential self‐service analytics
Clou
dSo
cial
Mobile
Big data
© 2010 IDC
