Research study based on insights from more than 900 organizations. Includes analysis of 14 key areas for making IT Operations effective in Digital Economy.

1. Research study based on insights from more than
900 organizations.
Includes analysis of 14 key areas for making IT
Operations effective in Digital Economy
Modernizing IT Operations for
Digital Economy
Research Study

2. Digital Transformation leaders:
•Use technology as a source of competitive
advantage (61%)
•Make IT more strategic (57%)
•Enable seamless deployments of new
technologies (38%)
•Reduce cost of running & maintaining enterprise
technology (53%)
Goals of IT Operations
professionals and Digital
Transformation leaders (CIOs,
CDOs, etc.) are fairly similar
62% of organizations are
reporting that lack of IT
resources is the main obstacle
for digital transformation
Only 19% of organizations
include modernizing IT
Operations in their digital
transformation strategy
IT Operations & Digital Transformation

3. Study background
Drivers1
Modernization2
14 Key Areas3
Analysis of 14 key areas that organizations should
focus on to make IT Operations effective in Digital
Economy
The perfect storm of market pressures and
technologies that are driving entire organizations to
change how they operate and become digital
businesses is making the same, if not the stronger,
impact on IT Operations
Road to becoming a digital business runs through IT
Operations, but IT Operations need to be
modernized to enable Digital Transformation

4. Research results, analysis and performance impact
results
14 Key Areas
for making IT Operations effective in
Digital Economy

5. Context of monitoring data
reported that making data
more actionable is their key
goal for IT performance
monitoring (ranked #1
overall)
59%
Delivering IT monitoring data in the right context is the key differentiator
between sole reporting and getting true insights for IT Operations.
48%48%
Lack of information needed to solve problem
Having to process larger amounts of data
82%
reported that the amount of IT performance data
collected increased over last 12 months. However,
only 38% of them reported significant performance
improvements in key IT management areas
There is no correlation between the amount of IT monitoring data that is
being collected and changes in key performance indicators. In order to get
the most out of their IT Operations management efforts, organizations need
to put capabilities and processes in place to ensure that the context in which
data is delivered and accessed is actionable and relevant.
IT Monitoring challenges

6. Hybrid and agile infrastructures monitoring
reported that the approach
of using different tool sets
for monitoring the Cloud
and on- premise
environments is ineffective
52%
As organizations are leveraging more hybrid cloud environments and
adopting agile IT platforms, they are looking for flexibility from their IT
monitoring solutions to be agnostic of the types of infrastructures that
are being managed (on premise, Cloud, hybrid, etc.).
83%
91%
Single platformSpeciality tools
31% redefined their monitoring strategy in 6 months or
less after deploying agile IT infrastructures
Agile, dynamic and hybrid infrastructures are some of the key technology
attributes of digital transformation, but organizations are also aware that the
transformation can be a long and complex process and IT environments cannot
be changed overnight. Therefore, organizations need to build technology
capabilities that will allow them to modernize their infrastructure while mitigating
the risk of deterioration in the performance of their existing IT services.
Visibility into IT infrastructure in hybrid
environments

7. Advanced analytics and data management
reported a success rate of
80% or better in preventing
performance issues before
users are impacted
22%
Data management and analytics capabilities are becoming the key
factor in determining levels of success for IT operations management
in a digital economy. Organizations are increasingly looking to deploy
capabilities such as predictive analytics, forecasting, optimization, etc.,
as well as Big Data management techniques in their IT Operations.
24% of organizations are looking to deploy or build Big
Data infrastructure that is tailored to IT
performance monitoring
Organizations that are truly looking to transform and modernize IT Operations
are realizing that the next step in the evolution of IT management is data
analytics and management. DEJ's research shows that advanced analytics for
IT monitoring are not only the #1 growth area in 2017, but also a technology
class that had the strongest impact on key performance indicators in 2016.19% 21%
49% 48%
Ability to project trends Ability to conduct "what if" analysis
Deployed Lookingto deploy

8. Machine learning
of organizations looking to
deploy IT monitoring
solution based on machine
learning in next 12 months
35%
A growing amount of data to be collected and processed makes the
analysis and triggering of the right actions, sometimes, not humanly
possible. Machine learning provides IT operations scale, speed and
intelligence and it has become one the key ingredients for successfully
managing modern IT operations.
39% Average increase in resources available for growth
and innovation after deploying machine learning
based solution
Machine learning is a powerful approach for addressing some of the key
challenges of IT monitoring, but it also opens up numerous opportunities for
IT operations teams to better leverage their expertise and become even
more valuable to their organizations. Combining human defined rules with
machine learning creates another field for innovation and differentiation and,
for many organizations, will determine the value that they get out of
machine learning capabilities.
63%
52%
21% 19%
Time to Resolution Successin preventingperformance issues
Improvements by 50% or more
Leveragingmachine learning All others

9. Correlation
reported a lack of
correlation between
systems elements as the
key challenge
49%
With increased heterogeneity of data sources, metrics and systems
elements, having capabilities for correlating and normalizing IT data
becomes the key requirement for making this data usable, relevant and
actionable.
41% reported that they are using 10 or more tools for IT
performance monitoring
Bringing together data collected by different tools is only one aspect as to why
correlation capabilities are critical, but it is also a good example of the need for
finding a common language between technologies within the IT that were never
designed to work together.
20% 18%
37%
32%
Platform for correlating IT and Business
data
Single platform for correlating dev and
opsdata
Deployed Lookingto deploy

10. Business impact
of organizations looking to
leverage IT data outside of
the IT
41%
There is unlocked potential in IT operations to impact the business by,
not only performing their traditional tasks more effectively, but also by
having more visibility into the business value they are creating,
providing additional dimension to BI efforts, improving business
decision making process, etc.
47% of IT Operations professionals are looking to get
more visibility into the business value delivered
One of the key goals of organizations that are looking to become a digital
business is to use technology as a source of competitive advantage. However,
many digital transformation leaders are often unaware of how IT operations can
support that goal. IT operations teams are looking to not only have more
visibility into how their work impacts this and other business goals, but also
looking for technology capabilities that would help them communicate to the
executive team about the business value that they are creating.
47%
36%38%
25%
Customer engagement Business agility
LeveragingIT data for business purposes All others

11. Microservices monitoring
reported planned
increases in deployments
of container-based
architectures in next 12
months
61%
Deploying microservices infrastructures results in multiple business
and operational benefits, but from a management perspective is driving
a new set of challenges and requires a different monitoring approach.
46% of organizations reported that their existing IT
monitoring tools are not as effective when
monitoring microservices
IT leaders need to be mindful that monitoring microservices requires a new
approach before they start leveraging these types of infrastructures in
production. A "trial and error" approach for monitoring microservices with legacy
tools in production can be very costly and negatively impact all key
performance indicators, while creating a number of business-centric issues.
96%
74%
Pre-production Production
Average availability of microservices

12. Alerting and notification
looking to improve
accuracy, timeliness and
relevance of IT alerting
and notification
55%
Managing IT alerts has been one of the main issues of IT monitoring for
many years, but the increasing complexity and need for timely problem
resolution is making this challenge even more prominent and it is one
of the key areas that organizations need to address.
39% looking to deploy capabilities that would provide
more context (priority, severity, etc.) around IT
alerting
Alerting and notification capabilities are designed to be a part of a solution for
preventing and resolving issues, but they are now becoming a part of that same
issue. Organizations are looking for more intelligence and context from IT
alerting, as well as a more clear path from a notification to a resolution of a
problem.
37%
22%
31% 28%
Ability to automate escalations Alertingbased on anomaly detection
Deployed Lookingto deploy

13. New technology readiness
of IT Operations
professionals listed
supporting deployment of
new technologies as their
key goal (ranked #1)
54%
Digital transformation is driving IT teams to build capabilities for quickly
and seamlessly adopting new technologies in a fashion where they
don't disrupt their existing operations, but are enhancing the business
value that IT delivers.
29% of organizations listed the "lack of ability to
assimilate new technologies" as the reason why
they replaced their IT monitoring solutions in 2016
One of the key drivers for digital transformation is a perfect storm of
technologies that are entering, or have entered, the enterprise at a rapid pace
(Big Data, Cloud, IoT, SD-Everything, etc.). Enterprises have to take a
proactive approach when building their IT monitoring capabilities and ensure
that they are prepared to address technology changes that are impacting
environments they are managing.
41% 44%
61%
SD-WAN IoT Microservices
Plannedincreases indeployments

14. Automation
increase in interest in
automation capabilities for
IT monitoring since 2011
71%
The need to improve the effectiveness of IT monitoring is calling more
and more for automation of not only repeatable tasks, but also parts of
a knowledge work performed by IT operations.
57% Of organizations are deploying automation
capabilities to reduce cost of IT operations
DEJ's research shows that organizations are currently spending 72% of their IT
budgets on running and maintaining existing services. Automation is an
important part of a strategy to reduce that number and changing how their IT
departments operate, but that doesn't necessarily lead to the shrinking of IT
operations groups. What it does mean is that automation will drive the need for
new skill sets, changes in processes, responsibilities and getting the most out
of the expertise and talent of IT operations professionals.

15. Full visibility
reported 5 or more blind
spots in the IT service
delivery chain
65%
With increased complexity and ongoing change, it becomes
increasingly important that IT operations are able to monitor all
infrastructure elements, events and an entire infrastructure stack.
82% reported the inability to manage large amounts of
data as the key reasons for not monitoring all the
events and system elements
Organizations do see the value in monitoring everything that is happening in
their IT environments, but often lack capabilities for processing, storing and
analyzing terabytes and petabytes of data and, therefore, are choosing to focus
only on events that they perceive to be the most critical.
89%
76%
63%
90%+ visibility 50-75%visibility 50%or less visibility
Success rate inpreventing issues

16. Optimization
looking to deploy
capabilities for the "what
if" analysis of IT
infrastructure utilization
and performance impact
65%
Organizations are looking to make educated decisions about optimizing
the number and value of IT monitoring tools they are using so that they
can improve both cost efficiency and performance.
44% average IT monitoring capabilities that
organizations are currently paying for but not using
Optimization goes beyond just consolidating IT monitoring tools. It should
include technology and organizational capabilities that will enable organizations
to find the right balance between resource (both physical and human) and asset
utilization, cost of running the IT and desired performance levels.

17. Streaming, real-time data and speed of access
increase in the need for
streaming IT monitoring
data over the last 12
months
37%
In order to meet the requirements of a fast changing digital economy, it
is becoming critical for organizations to not only process and analyze
larger amounts of IT monitoring data, but to do so with real-time data
streams.
41% reported the speed of access to data needed to
solve IT performance issues as the key selection
criteria when evaluating IT monitoring solutions
With higher user expectations for performance and more IT sources to pull data
from, IT operations teams need to make more accurate decisions, faster and at
scale. The ability to take actions based on real-time data and improve the
speed of queries for historical data are becoming key requirements for IT
operations teams to meet their goals.
50%
55%
60%
65%
70%
75%
80%
85%
90%
95%
100%
Y 2009 Y 2013 Y 2016
High importance of processing IT monitoring data in real
time

18. Network performance
reported that the role of
network has become more
strategic over the last 12
months
68%
As organizations are deploying more technologies, the network is
increasingly being perceived as a strategic asset by IT leaders.
However, DEJ's research shows that organizations are experiencing
only marginal improvements in network performance over last 4 years.
In order to support their key IT initiatives, organizations should rethink
their approach for managing network performance.
46% reported that they are looking to extract network
data for business purposes
A new approach for network performance management should take into
consideration the network beyond connectivity and look at it as a rich source of
highly important operational and business data. That approach should also
consider that 40% organizations are reporting that the cost and complexity of
network performance monitoring tools is one of the key challenges for
improving network performance.

19. Why it matters?

20. 43%
Reported that their
competitive position
deteriorated due to
performance of IT services
48%
of organizations reported
that, on average, they spend
more than 60 minutes on
repairing performance issues
per incident
Analysis includes
companies with average
revenue size of $243
million
$72,000
Is being lost per minute
of service outages
Cost of non acting

21. DEJ’s research methodology identifies top 20% organizations based on KPIs and compares their capabilities, actions and
strategy to that of their peers.
86%
More likely to
have full
visibility of
their IT
infrastructure
2.6x
More likely to
be deploying
machine
learning
1.7x
More likely to
analyze
streaming and
real-time data
2.8x
More likely to
improve Mean
Time to
Resolution
Top performing organizations

22. The study includes insights from 923 organizations
worldwide.
Study background
Geography – 53% North America; 24% EMEA
Company size – 38% large; 36% medium
Job roles – Mix of IT and business users
Timeframe of research – May-November of 2016
26%
In H2 of 2017, DEJ will be conducting research on a
number of similar topics.
DEJ’s follow up publishing
Microservices Monitoring
Digital Performance Management
Advanced IT Operations Analytics
Machine Learning in IT Performance
Hybrid Cloud Monitoring
Business View of IT Operations
Q3 2017
Q3 2017
Q3 2017
Q4 2017
Q4 2017
Q4 2017
93%Of participants are at VP
level or above
Month-over-month increase
in survey data collected in
2017
Study background and follow up publishing

23. Technology as a
Competitive
Advantage (TaCA)
Research-
analyst-media
fusionDigital
Transformation
Journey
01
Beyond
technology
“buckets”
02
Situational
analysis
03
Primary
research
04
Ongoing
data
collection
05
About DEJ

24. Digital Enterprise Journal
Digital Enterprise Journal (DEJ) is a media and research firm
focused on digital transformation and the business value of
technology deployments. .
Visit us at dej.io
October, 2016 Copyright © 2017 Digital Enterprise Journal