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Where are enterprise companies in their hybrid cloud journey?

Where are enterprise companies in their hybrid cloud journey? 

Regardless of geography or industry, most organizations reported wanting to improve their IT service strategy to run IT like a customer-focused business,” according to the State of IT Transformation report released by computer data storage company EMC Corp. and cloud services firm VMware Inc.

However, while 90 per cent of organizations agreed it is important to having a documented IT transformation strategy and roadmap, more than 55 per cent of firms “admitted to having nothing document,” the report said.

The survey polled only more than 660 EMC and VMWare customers around the world, however, the findings could be useful to any organization contemplating an IT strategy transformation or cloud implementation. The survey provides some vital insights into how many enterprise firms view cloud technologies and where they are in their transformation journey as well as what are the factors holding them back.

Kevin Roche, president of global services for EMC said the participants shared “very common gaps and target goals” to deliver IT services more efficiently.

Customers that “enthusiastically adopt hybrid cloud strategies” tend to experience significant cost savings and are those that are “making the most progress towards their digital business objectives,” he said.

“Most organizations indicated they want to have a hybrid cloud architecture for their production applications within the next 18to 24 months, with 90 per cent reporting they are in the evaluation or proof-of-concept stage,” according to EMC. “In terms of virtualization, nearly every participating organization reported wanting to reach between 80 to 100 per cent in computing, storage, and application virtualization.”

Participants said they want to automate platform delivery so that they can develop software faster. However, more than 80 per cent reported lacking a scalable, infrastructure-independent application framework.

Here are some industry highlights:

  • Healthcare participants identified the most opportunities for IT transformation in their organizations
  • Retail firms were top performers in desktop virtualization with the top 20th percentile reporting above 60 per cent of desktops virtualized. Majority of their applications were built on a scalable, infrastructure-independent application framework
  • Telecommunications firms led in network virtualizations with the average business reporting they achieved 40 per cent in network virtualization
  • Financial services firms scored above average in most areas of their IT transformation initiatives with 40 per cent having a fully-supported, documents IT transformation strategy and roadmap
  • The top 20 per cent of government organizations reported over 20 per cent of production apps in a hybrid cloud and nearly 100 per cent of computing and applications virtualized

As many as 68 per cent said their firms take 6-12 months or more to complete a new application development lifecycle. Most firms want to get this down to just a few weeks.

Here are some other findings:

  • 80 per cent want to standardize services in business-focused catalog with a self-service portal and to increase automation to improve IT service delivery
  • 77 per cent expressed desire to provision infrastructure resources in less than a day (more than half reported it currently takes between one to four weeks to do so)
  • 87 per cent said they rely on yearly allocation-based recovery, or project-by-project recovery of It cost; only five per cent are able to bill the business for services consumed at an advertised price
  • 88 per cent said they want to use automation to track the resources each business unit is consuming; 70 per cent said they have gaps in their ability to track IT resources consumption across the business

“What the survey results are telling us is that IT organizations want to improve the way they are able to help their customers,” said Denise Partlow, director of product marketing, cloud professional services at EMC. “But they have some gaps that they want to close.”

One such concern is the lack of hybrid cloud documentation and roadmap, she said.

“If you don’t have a plan and metrics, it becomes very difficult to measure progress and benefits,” she said. “It has to be a top-down mandate to get everyone onboard the transformation strategy.”

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