How do corporate executives see the IT organization? Too often, as a cost center or roadblock. The most successful enterprises take a different approach. They view IT as a strategic asset and the IT budget as an investment in innovation. See how here.
2. How do corporate executives see the
IT ORGANIZATION?
Too often, as a
COST CENTER
Or, worse, as a roadblock
2
3. “Doing More, with Less” Is No Longer Enough
INFLECTION
POINT
TECHNOLOGY ERAS
Mainframe
Client-Server
Mobile-Cloud
THE
PROBLEM
STEADY IT BUDGETS
3
ABILITY OF IT TO DELIVER
BUSINESS EXPECTATIONS
IT CAN’T
KEEP UP WITH
INCREASING
BUSINESS
EXPECTATIONS
11. According to a 2013 VMware
customer survey, growing numbers
of IT organizations are on a
11
JOURNEY
TO ITaaS
12. …And so is VMware
ITAAS
MILESTONES
LAUNCHED
PRIVATE CLOUD
2012
JUNE
4 TENANTS
10,000 VMS
2013
JAN
AUTOMATION OF
SDLC ENVIRONMENT
reduces provisioning
time from 4 weeks to
36 hours (95%),
saving $4.5M
annually
BUSINESS
RESULTS
12
9 TENANTS
38,000 VMS
12 TENANTS
50,000 VMS
2013
MID
2013
END
VMWORLD HANDSON LABS
Hands-on-Labs
techs reduced from
100 to 5 with zero
downtime.
Costs reduced by
95%
MORE
SERVICES
2014
ENTERED NEW
MARKET
IT resource optimization
allowed VMW to create
new subscription and
rating engine for vCloud
Hybrid Services
13. IT-as-a-Service Can Help IT Meet Executive Demands
TECHNOLOGY ERAS
Mainframe
Client-Server
Mobile-Cloud
ITaaS
“MULTIPLIER”
STEADY IT BUDGETS
13
ABILITY OF IT TO DELIVER
BUSINESS EXPECTATIONS
IT at the
Speed of
Business
17. And more of IT
budgets can go toward
17
INNOVATION
18. That’s why IT budgets at ITaaS companies are growing
of companies report increased revenue
generated by new IT applications and services
53%
The average revenue increase was
60%
Difference
5%
IT Production
18
8%
IT as a Service
26%
19. Where is your organization?
Where are you headed?
19
20. For more information and news
Follow Us: @vmwaresddc
Data Sourced from VMware 2013 Journey to IT as a Service Survey
20
Notes de l'éditeur
IT Budget as a Percentage of Revenues Corporate budgets are a reflection of priorities: More funding is given to those who can demonstrate their ability to contribute to reaching the company’s strategic goals. For companies in the final phase of the Journey—ITaaS—the IT departments have done so decisively. In 2013, 53 percent of ITaaS organizations reported increased revenue generated by new IT applications and services (Figure 18). On average, these organizations were able to generate 26 percent more revenue than before. This strategic contribution to business results has translated into ITaaS organizations securing larger budgets as a percentage of revenue. When comparing investment-minded ITaaS organizations with budget-minded IT production organizations, the survey shows as much as a 60 percent difference in budget allocations as a percentage of revenue.