Overview in IT Investment Trends and IT Spend in Ireland for 2008 based on iReach research

1. iPredict2008 Briefing
Key Trends and Directions
for IT Executives
Oisín Byrne
Managing Director
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2. Inspired by the Connected Digital World
Experts in Technology, Media and Telecoms
– Through research, we provide knowledge
unique to the specific needs of each client.
– We connect organisations to share best
practices and develop peer groups and personal
networks.
– We answer the needs of each client with cost
effective, flexible and unique solutions.
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3. Some of our Clients
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4. Best Practice Benchmarking
• Cost of IT Benchmark
– IT Budget Allocation Analysis
• Cost of Telecom Benchmark
– Telecom Spend Analysis
• Business Continuity/DR Benchmark
– BCS/DR Health Check and Analysis
• Risk Management Benchmark
– Risk and Compliance Health Check
• Service Delivery Benchmark
– Measure Customer Service and Analysis
– Managed Services and Outsourcing SLA’s
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5. iReach IT Service Management
New offerings to measure :
• Best Practice Frameworks (ITIL)
• Resource Optimisation
• Service Optimisation
• Financial and
Budget Optimisation
• IT Governance and
Frameworks
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6. Survey Methodology
• iReach interviewed 2000 Consumers
– Mobile Phone usage
– Broadband usage
– PC Usage
– Attitudes to technology
– Adoption of new services
• iReach interviewed 250 IT executives
– Government
– Manufacturing
– Financial Services
– Retail & Wholesale
– Business Services
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7. iReach Predictions 2008
• CIO Priorities
• Telecoms and Convergence
• Enterprise Software is back
• Infrastructure Investment
• Business Process is Centre Stage
– BPM & BPO
– Managed Services for Business
– IT Service Management
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8. 2008 CIO Priorities
2008 2007
1. Improved Support to Business Projects 1.
2. Operational Costs Reduction 2.
3. New Risk Man/Security Investments 5
4. New Infrastructure Projects 4.
5. IT Service Management -
6. Staff alignment/reporting with Business 6.
Note: Projects to increase Sales & Revenues merged with 1 and 2
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9. Telecoms and Convergence
• Cost Reduction Priority for CIO’s
– Line item on overall IT budget
– Fixed Line and Data
– Mobile Services
• IP Telephony/VoIP deployments to double
• WAN and LAN investment continues to grow
• Strong growth in Mobility Applications
– 3G and Mobile Broadband
• Unified Communications pilots
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10. What is Convergence
• IP to enable new solutions
– Warm DR, Online Backup and Storage Solutions
– Co-Location and Hosting
• Confusion of benefits
– Convenience then costs, but 37% are unsure
• Perceived pitfalls to Convergence
– Security
– Quality of Service
• New Voice, Data and Video applications for
business.
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11. Enterprise Software is Back
• Enterprise Software licenses growth
–New HR and CRM Deployments
–Business Process Focus
–Supply Chain Management
• Infrastructure Software continues to grow
–Business Intelligence
–Content Management and Reporting
–Workflow and Document Management
–Business Process Management
• Software as a Service now on radar
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12. Enterprise SW – Market Share
30%
25%
25%
20%
20%
15% 16%
15% 13%
10% 9%
5%
2%
0.3%
0%
Sage Oracle SAP IBM SaaS Other MS wnd
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13. Slowing Security Spend
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14. Infrastructure investment
• Slower growth than 2007
– 6% increase in PC spend
– 20% increase spend in Storage
– 16% increase in Servers spend
• Virtualisation now mainstream
• Open Source and Microsoft Vista
• Green Data Centres
• Disaster Recovery
• SAN investments
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15. Shifting Spend patterns in 2008
• IT Services spend re-bounding
–Reduced spend on Traditional services (SI, AD, A&C)
–Significant shift to Managed Services and Outsourcing
• Managed Services up 24%
–Different pace across Industry Verticals
–Balanced growth across IT offerings
–New Offerings in Telecoms, Storage and Security
• Outsourcing up 30% over 2007
–BPO beginning to drive growth
–Vodafone & O2 IT Outsourcing Agreements
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16. Benefits of Managed Services
• Provide better service to business 75%
• Expected Cost Savings 68%
• Lack of Internal Skills 67%
• Better IT Support to Internal Users 65%
• Reduce Technology Change 37%
• Reduce Staff 29%
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17. Managed Services evolving to business
processes
D/R
Telecoms
Co-Location Printing
Desktop &
Servers
Document Hosting
Applications Management
Web and email
Mail & Workflow
Storage Help Desks
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18. Business Process Outsourcing
Investment Priorities in 2008
1. Customer Management & Contact Centres
2. Industry Vertical Offerings
3. Finance and Accounting Services
4. Human Resource Services
5. Payments and Billing Systems
6. Supply Chain
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19. Measure BPM and BPO Benefits
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20. IT Best Practices
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21. Why IT Service Management
• Continuously ensure the quality of services and
high customer satisfaction.
• Show that IT investments are increasing the
business value of IT.
• Managing risk and minimizing the cost of
delivery.
• Now standard in two thirds of large IT
Organisations in Europe
• ITIL most popular best practice for common IT
and Business Language
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22. Summary
• Continued Alignment with Business
• Operational Spend and Innovation Investment
• VoIP in Business sites to Double
• Continued growth in mobility applications
• Hardware proportion of IT Budgets falling
• Revisit to Enterprise Software
• Managed Services for Business
• IT Service Management Best Practices
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23. oisin.byrne@ireach.ie
Close and Questions
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