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EMC FORUM RESEARCH GLOBAL RESULTS 10,451 RESPONSES ACROSS 33 COUNTRIES (NON-VENDOR I.T. DECISION MAKERS ONLY)

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say CXOs see I.T. as a key strategic lever for business growth today

INCREASING PRESSURE ON I.T. I.T. is expected to do more, with much less. The impact of megatrends has fundamentally changed the world we live in today and has given rise to demands on the business.

67%

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think

megatrends will provide

competitive advantage by:

77% Improving customer

experience

41% Streamlining

business functions and

improving efficiencies

33% Building new products and

services

39%

48% However, say tech spend is moving outside of I.T.’s control


INCREASING IMPORTANCE OF CLOUD

”Hybrid Cloud – a combination of public and private cloud services – provides a greater level of agility and security”

64%

Have deployed

Hybrid Cloud

27%

Hybrid cloud adoption growth

globally since 2013

9%

71% “I.T. will need to be a broker for on-demand services in the future”


SKILLS SHORTAGE, KEEPING UP WITH NEW TRENDS


don’t feel they have the right

level of skills and knowledge to achieve key

business priorities

35%

think getting I.T. staff trained to keep

pace with the implications of

megatrends will be a challenge over the

next few years

69%


METHODOLOGY

EMC commissioned independent

technology market research specialist Vanson Bourne to analyse 10,451

survey responses for the 2014 EMC Forums

Survey data is collected as a

non-mandatory set of questions

delivered via email upon completion of forum registration

Respondents are from a range

of organization sizes and sectors across

33 regions


REGIONAL DEMOGRAPHICS Respondents were interviewed from the following regions (number of respondents in brackets)

Australia (54) Hong Kong (127) India (169) Japan (168) South East Asia (572) South Korea (401) Taiwan (920)

Austria (112) Belgium (210) Czech Republic (210) France (476) Germany (358) Israel (190) Italy (629) Netherlands (238) Nigeria (528)

Nordics (499) Poland (263) Portugal (215) Qatar (164) Russia (735) Saudi Arabia (1127) Spain (333) Turkey (278) UAE (315) UK (633)

US (40) Brazil (92) Chile (117) Colombia (83) Mexico (197)

ASIA PACIFIC & JAPAN

EUROPE, MIDDLE EAST

& AFRICA

AMERICAS


Figure 9: 10046 respondents

WHAT ARE THE TOP AREAS MEGATRENDS INFLUENCE THE BUSINESS?

STREAMLINING BUSINESS FUNCTIONS AND IMPROVING EFFICIENCIES

BUILDING NEW PRODUCTS AND SERVICES

IMPROVING CUSTOMER EXPERIENCE

33% 39% 41%




39% 40% 43%

DELIVERING SAVINGS AND FINDING EFFICIENCIES

TO ENHANCE CUSTOMER EXPERIENCE

AUTOMATING PROCESSES

WHAT ARE THE BUSINESS PRIORITIES FOR IMPLEMENTING NEW TECHNOLOGY?


AGREE NEITHER AGREE OR DISAGREE

DISAGREE

8% 25% 67%



DO CXOS VIEW THE I.T. DEPARTMENT AS A STRATEGIC LEVER TO GROW THE BUSINESS?


Figure 2: Regional comparison of respondents that report that their CXOs consider I.T. to be a strategic lever to grow the business, now more than ever before. (9695 respondents)

LATAM: 78%

EMEA: 67%

APJ: 67%

DO CXOS VIEW THE I.T. DEPARTMENT AS A STRATEGIC LEVER TO GROW THE BUSINESS?

56%

85% 80%

74% 73%

90% 82% 81% 79% 77% 75%

71% 65% 64% 64% 64% 62% 62% 59% 59% 57%

51% 47%

30%

95%

76% 72% 72%

63% 62%

53%



Figure 3: Vertical comparison of respondents that report that their CXOs consider I.T. to be a strategic lever to grow the business, now more than ever before. (9695 respondents)

71%

68%

68%

68%

64%

63%

60%

58%

Telecoms

Financial services

Energy, oil/gas & utilities

Retail, distribution & transport

Entertainment, media & leisure

Healthcare

Government & public sector

Manufacturing

DO CXOs SEE THE I.T. DEPARTMENT AS A STRATEGIC LEVER TO GROW THE BUSINESS?



WILL NEXT-GENERATION TECHNOLOGIES PROVIDE A COMPETITIVE ADVANTAGE?

NEITHER AGREE OR DISAGREE

20%

DISAGREE

3%

AGREE

77%



Figure 6: Regional comparison of respondents that believe next-generation technologies will provide them with a competitive advantage (9631 respondents)

LATAM: 87%

EMEA: 76%

APJ: 78%


70%

92% 85% 85% 82%

96%

88% 87% 86% 86% 81% 78% 78% 76% 74%

69% 69% 69% 64% 61% 58% 55% 55% 55%

91% 88% 84%

79% 77%

67% 65%



Figure 7: Vertical comparison of respondents that believe next-generation technologies will provide them with a competitive advantage (9631 respondents)



85%

81%

73%

73%

72%

72%

67%

65%

Telecoms


Financial services

Manufacturing



Healthcare



agree that spend on technologies, such as cloud computing, is now outside of I.T.’s control

48%


IS SPEND ON TECHNOLOGIES MOVING OUTSIDE OF I.T.’S CONTROL?

DISAGREE


19%

33%




Figure 24: Regional comparison of respondents that believe that spend on technologies is moving outside of I.T.’s control (9762 respondents)

LATAM: 27%

EMEA: 47%

APJ: 58%

27% 31% 28%

25%

18%

65% 64% 64% 63%

53% 52% 51%

43% 43% 38% 38% 37% 35% 34% 34% 31% 31%

25% 25%

71% 71%

64%

50%

42%

35%

27%



Figure 25: Vertical comparison of respondents that believe that spend on technologies is moving outside of I.T.’s control (9762 respondents)


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50%

50%

47%

47%

44%

44%

41%

40%

Telecoms

Manufacturing

Healthcare




Financial services




see the increasing role of infrastructure automation, such as software-defined storage, as critical to business growth

74%

IS THE ROLE OF I.T. AUTOMATION CRITICAL TO BUSINESS GROWTH?


DISAGREE


4%

22%



WILL I.T. DEPARTMENTS NEED TO START ACTING AS IN-HOUSE PROVIDERS OF ON-DEMAND SERVICES?


DISAGREE


23%

6% Say the future I.T. departments will begin to act as in-house providers of on-demand services

71%


Figure 21: Regional comparison of respondents that think I.T. departments will start acting as in-house providers of on-demand services (9621 respondents)

LATAM: 80%

EMEA: 72%

APJ: 69%

87% 86% 80% 77%

71%

89% 85% 84%

80% 79% 79% 77% 72% 71% 71% 70% 69% 66% 64%

57% 57% 56% 51%

18%

85% 82% 77%

67% 63%

49% 42%




77%

73%

71%

69%

69%

69%

68%

67%

Telecoms



Manufacturing


Financial services

Healthcare


Figure 22: Vertical comparison of respondents that think I.T. departments will start acting as in-house providers of on-demand services (9621 respondents)




WHERE IS YOUR ORGANIZATION ON YOUR I.T. JOURNEY? CREATED A SOFTWARE-

DEFINED DATA CENTER

VIRTUALIZING MISSION- CRITICAL APPLICATIONS

USING PUBLIC CLOUD SERVICES

CREATED/USING A PRIVATE CLOUD

CREATED A HYBRID CLOUD

60%

26%

27%

31%

36%

27% over one in four, use hybrid cloud

achieved 2 out of the 5 steps to I.T. transformation on average

40%


CREATED A SOFTWARE-DEFINED DATA CENTER

VIRTUALIZING MISSION- CRITICAL APPLICATIONS

USING PUBLIC CLOUD SERVICES

CREATED/USING A PRIVATE CLOUD

CREATED A HYBRID CLOUD

60%

26%

27%

31%

36%

I.T. JOURNEY: 2013 TO 2014

+11.9%

+8.9%

+10.2%

+.2%

+4.0%

+10% Growth in virtualized applications, public and hybrid cloud

Figure 11: Analysis showing global rate of I.T. journey transformation between 2013 (9,353 respondents) and 2014 (8,565 respondents)


Figure 15: Regional comparison of respondents that are using hybrid cloud (9762 respondents)

LATAM 24% EMEA 28% APJ 24%

39%

28% 27% 24%

16%

36% 36% 33% 32% 32%

31% 30% 30% 29% 28% 28%

25% 23%

20% 19% 18% 18% 14%

10%

32% 32% 31% 29%

24%

16% 15%

I.T. JOURNEY: HYBRID CLOUD UPTAKE BY REGION



Figure 16: Vertical comparison of respondents that are using hybrid cloud (9762 respondents)

38%

26%

22%

22%

21%

20%

19%

18%

Telecoms


Manufacturing



Healthcare

Financial services


I.T. JOURNEY: HYBRID CLOUD UPTAKE BY VERTICAL



CAN COMBINING PUBLIC & PRIVATE CLOUD IMPROVE SECURITY & AGILITY?



agree that a mixture of both public and private cloud can provide higher levels of agility and security

64%

DISAGREE


10%

26%


Figure 13: Regional comparison of respondents that believe combining public and private cloud can improve security and agility (9718 respondents)

LATAM: 73%

EMEA: 62%

APJ: 68%

74% 79%

74% 73%

65%

82% 76% 75%

71% 71% 69% 67% 67% 67% 63% 62% 60%

51% 45% 44%

41% 40% 39% 39%

79% 76% 75%

66% 65% 62%

54%



Figure 14: Vertical comparison of respondents that believe combining public and private cloud can improve security and agility (9718 respondents)

68%

64%

60%

60%

60%

60%

59%

57%

Telecoms



Manufacturing

Healthcare


Financial services


Respondents in telecoms sector agreed most versus government/public sector at the least

68%

57%




16%

20%

20%

23%

23%

24%

26%

32%

35%

39%

I WOULD BE HAPPY TO PUT ANY

OF THEM IN THE PUBLIC CLOUD

DEVELOPMENT AND TESTING

BIG DATA PROJECTS

COMPLIANCE, GOVERNMENT AND

REGULATORY

BUSINESS ANALYTICS

SECURITY (ANTI-SPAM AND

VIRUS)

CRM

ERP

HUMAN CAPITAL MANAGEMENT

FINANCIAL PLANNING

WHAT APPLICATIONS WOULD ORGANIZATIONS NOT PUT IN THE PUBLIC CLOUD?

39% Financial planning

35% Human capital

management

32% ERP

16% ANY application


Figure 18: Regional comparison of top three application not to be put in the public cloud and percentage that would put any application in the public cloud (9120 respondents)

24%

38%

44%

23%

33%

44%

26%

31%

38%

11%

18%

11%

LATAM EMEA APJ

FINANCIAL PLANNING HUMAN CAPITAL MANAGEMENT ERP I WOULD BE HAPPY TO PUT ANY OF THEM IN THE PUBLIC CLOUD

WHAT APPLICATIONS WOULD ORGANIZATIONS NOT PUT IN THE PUBLIC CLOUD?


don’t agree they have the correct level of skills and knowledge to successfully achieve business priorities

35% NEITHER AGREE OR DISAGREE

DISAGREE

DOES YOUR ORG HAVE THE SKILLS & KNOWLEDGE TO ACHIEVE BUSINESS PRIORITIES?

AGREE



27%

8%

65%


training their I.T. staff to keep up with the implications of mobile, social, cloud and big data will be a challenge over the next 1-2 years

69%


WILL TRAINING STAFF TO KEEP UP WITH MEGATRENDS BE A CHALLENGE?


DISAGREE


23%

8%

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LATAM HIGHLIGHTS

All figures above are from LATAM region except those in brackets identified as global data points

see I.T. as a strategic lever more than ever

before. Globally,

78%

67%

of LATAM respondents expect tech spend to move outside I.T.’s control, compared with 18% in Brazil,

the lowest of all. Global average,

27%

48%

The amount Hybrid cloud adoption has

grown since 2013 in the LATAM

region. The global average is

21%

9%

Say that combining public and private

cloud increases agility and security.

Nearly four in five (79%) say this in

Chile. Global average,

73%

The I.T. department of the future will act

as an in-house provider of on-

demand services, 86% in Mexico, compared with a

global

80%

78%

64%


All figures above are from EMEA region except those in brackets identified as global data points

EMEA HIGHLIGHTS

think spend on tech is moving

away from the I.T. department

47% Say combining

public and private cloud will lead to

increased agility and security. Global

average;

62%

64%

Only 18% of respondents in

Qatar, the lowest globally. Global

average is,

Hybrid cloud adoption is highest in EMEA– just 24% use it in APJ and LATAM.

UK and Netherlands lead the pack (36%

use hybrid cloud)

28%

On average, in EMEA see I.T.

acting as an in-house provider in

the future. Globally,

72%

Significant variation; Saudi Arabia (65%)

along with Russia (64%), UAE (64%)

and Qatar (63%) versus 25% in Portugal

and Czech Republic. Globally,

Highest amongst developing regions

are Nigeria (82%),

Saudi Arabia (76%) & UAE (75%) 48%

27%

71%


All figures above are from APJ region except those in brackets identified as global data points

APJ HIGHLIGHTS

Combining private and public cloud

leads to improved agility and security,

according to

68% of

respondents in APJ, 79% in Japan

64% %

Expect tech spend to move outside I.T.’s

control, ahead of both EMEA (47%) and LATAM

(27%)

71% Japanese and Taiwanese respondents agree versus 27% in South Korea. Globally,

This is highest in India (85%)

and Taiwan (82%). Global

average,

believe the I.T. department of the future will act as

an in-house provider of on-

demand services

69%

of APJ respondents say that their CXOs

see I.T. as a strategic lever more than ever

before

67%

95% in India, compared to

53% in South Korea. Global

average,

58%

48% 71%

67%


**Classification based on the FTSE 2014 development index

EMERGING VS. DEVELOPING MARKETS

Emerging markets tend to be more positive

about the I.T. department and

hybrid cloud: Hybrid cloud adoption is ahead in the developed

markets (29% use hybrid cloud,

compared to 25% of emerging

markets). Globally,

27%

of those in the emerging markets

the I.T. department is a strategic lever to

grow the business now more than ever before (compared to 63% of developed).

Globally,

71%

expect a competitive advantage from

megatrends (compared with 75% from

developed countries).

Global average is,

79%

the I.T. department will act as an in-house provider of

on-demand services (compared to 69%

of developed). Globally,

73%

say combining public and private cloud will improve security and agility (compared to

60% from developed countries). Global

average is,

67%

67%

77%

71%

64%

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