Strategies of Top Performing Organizations in Deploying AIOps - key findings

The key findings of Digital Enterprise Journal's AIOps
research study based on insights from more than 1,100
organizations.
Strategies of Top Performing
Organizations in Deploying AIOps
Key findings from the research study
Bojan Simic, President and Chief Analyst
Digital Enterprise Journal

Clarify what the term "AIOps"
means to organizations and
where they see the value.
Identify key drivers, use cases
and challenges for AIOps
adoption and alignment with
business goals
1
Analyze a group of AIOps top
performing organizations
(TPOs), their strategies and
performance improvements
Provide actionable
recommendations to end-user
organizations about how to
achieve the success level of
the TPOs
4
Key goals for the study
Research approach
DEJ analyzed the findings using
it’s Maturity Framework to identify
attributes and strategies of top
20% of participants organizations
based on their performance
(TPOs) in deploying AIOps
Participants
The study is based on insights
from 1,100+ organizations (721
of them using AIOps
capabilities)
Foundation in a previous research
2.9x
57%
64%
Increase in the number of
organizations that have AIOps
as their budget item, over the
last 12 months
Decline in number of
organizations that perceive
AIOps as “unproven
technology” since 2018
Reported they find technology
landscape for AIOps solutions
“confusing”
3
2
Copyright © 2020 Digital Enterprise Journal. All Rights Reserved.

68%
Reported increased customer
expectations for engagement
and experience
60%
Reported impact on business
outcomes as a top selection
criteria
86%
Average annual increase in
the amount of change in IT
environments since 2016
Market
55%
reported driving innovation
as the key reason for
deploying microservices
91%
Increase in missed revenue
due to performance and
availability issues since 2016
6.7x
Increase in deploying cloud
services to drive innovation
since 2014
Technology
76%
More organizations reporting
that making IT data
actionable as their key goal
64%
listed a service-centric
approach as a key attribute
of a modern IT organization
52%
Looking to take “Continuous
Everything” approach (CI CD +
assurance / reliability)
Enablers
2.1x
More organizations using
technology to differentiate from
competitors since 2017
4.5x
More organizations making
software a core part of their
business strategy since 2017
77%
ranked importance of
automation for IT performance
as "high" or "very high”
Market context
Body of research
Over the last 6 months, DEJ
conducted research from more than
7,000 user organizations in the
following areas:
1. IT Transformation
2. State of IT Performance
Management
3. Managing IT Operations
4. Enabling Engineering Teams
and DevOps

The term AIOps could mean different things to different people. To reduce market confusion, DEJ set the stage for the rest of the study by
letting organizations define what AIOps means to THEM and identified the top goals they are looking to achieve by deploying AIOps
capabilities.
AIOps is often perceived as a solution for “alert suppressing” or “incident
management”, but the research shows that the value for organizations go way
beyond these 2 areas.
Deploying AIOps to identify
and resolve performance
issues faster
61%
Deploying AIOps to create
actionable insights into IT
data
73%
Deploying AIOps to proactively
prevent performance issues
66%
increase in the number of
organizations that are
deploying, or looking to
deploy AIOps capabilities
since 2018
83%
Beyond reducing “alert noise”
53%
Deploying AIOps
to reduce alert
noise

Top areas where organizations are looking to leverage actionable insights from AIOps
Creating cost efficienciesNeed to streamline
business processes
Understand
interdependencies between
service elements
Evaluate business impact
of technology deployments
Performance improvements by organizations leveraging AIOps
Reduction in time to isolate a root cause
of cloud performance issues
Creating actionable insights with AIOps
65% 60% 57% 53%
63% 26%
Reduction in the percentage of IT budgets spent
on operating and maintaining IT services

76%
Improve customer
satisfaction and
engagement
71%
Use technology as a
competitive advantage
64%
Increase in customer
expectations
59%
Managing dynamic and hybrid
environments
58%
Need to ship better
software faster
56%
Increase in volume and velocity of
data to be processed
Fit for digital transformation
All definitions of digital transformation have 2 common
attributes: 1) using technology as a source of competitive
advantage; 2) having a core focus on improving and
creating customer experiences. The research shows that
AIOps is well positioned to address both of these areas.
Drivers for AIOps deployments
Importance of AIOps for business goals – ranked
“Important” or Very Important

Key AIOps capabilities for DevOps
Higher toil reduction by
organizations that are deploying
AIOps capabilities
49%
Automated discovery
of interdependencies
and changes in
dynamic environments
Alerting through
context-based
automation
Reduce toil for
engineering teams
Add more intelligence across
entire code feedback loop
Ship software faster
Proactively prevent
performance issues
62%
56%
48%
45%
Key value areas of AIOps for DevOps and SRE
51%66%
Service-centric,
unified view
across incident
lifecycle
Value for DevOps
71%

1 TPO class is defined with the
goal to identify practices of
these organizations that allow
them to outperform their peers
2
To provide recommendations to
"all other" organizations, DEJ
identified TPOs capabilities that
have the strongest impact on their
performance
3 All key TPO capabilities are
grouped in 4 categories -
Strategy, Process,
Organization and Technology
DEJ's research shows no correlation between companies' sizes, industry sectors or geographical location and their representation in the
TPO class
KPI Top Performing Organizations
(20%)
All others
Percent of non-actionable alerts
automatically discarded 95% 54%
Percent of performance issues that are
proactively detected
82% 55%
Average Mean Time to Resolution
(MTTR) per incident 41 minutes 141 minutes (2 .4 hours)
Average customer satisfaction score 94 points 73 points
Definition of Top Performing Organizations (TPOs)

More likely to redesign internal processes to align with
AIOps workflows
More likely to have AIOps platform for IT Ops and DevOps
collaboration
More likely to have established process for identifying
gaps in IT skill set
More likely to have automated event to resolution workflow
More likely to have bi-directional integration into
ticketing and notification systems
2.9x
Shorter
average
duration of a
war room
meeting
62%
More likely to
achieve
Service Level
Objectives
(SLOs) as
compared to
all others
2.5x
81%
71%
69%
52%
As a result of having these strategies, TPOs are
more likely to report measurable benefits
Attributes of TPOs – Org and Processes
These capabilities are just a sample of 20+ TPO attributes identified in the
study

More likely be leveraging a high precision,
time series database
More likely to have the ability to ability to link
events to business outcomes
More likely to have capabilities for
automated impact analysis
Automated remediation of performance
issues
More likely to be leveraging a collaboration
platform for different groups in the
organization
automated discovery of each element of
service tree topology
2.5x
2.4x
71%
69%
64%
61%
69%
Less likely to
experience
issues with
application
slowdowns
4.1x
Fewer
incidents
escalated as
compared to
all others
As a result of having these capabilities, TPOs are
more likely to report measurable benefits
Attributes of TPOs - Technology

Business outcomes impact
TPOs are 2x more likely to be leveraging
these functions
Prevention
TPOs are 52% more likely to be leveraging
these functions
Contextualization, analysis and
diagnostics
these functions
Remediation
these functions.
Collaboration
these functions.
Data ingestion, enrichment, correlation and
suppression
The research doesn't show any significant differences in
deploying these functions between TPOs and all others
Importance of key AIOps functions

$1,270,000
Spent annually, on average, on
incident escalations that could
be avoided
Some of the contributing factors include: lack
of context-based automation, amount and
velocity of incidents and events, amount of
alerts that are not actionable, time spent by
engineers on handling incidents, etc.
Incident management
Annual cost of “war room”
meetings
$4,620,000
Some of the contributing factors include:
frequency of incidents, inability to identify the
root cause,, number of IT FTEs involved, lack
of context, the amount of IT data that is not
actionable, inefficient workflows and
processes, etc.
Troubleshooting & resolution
$634,000
Average revenue lost per
month due to application
slowdowns
Some of the contributing factors include:
inability to proactively prevent performance
issues, lack of end-to-end view into health of
business services, increased expectation for
performance, time to resolve performance
issues, etc.
User experience
Cost of not acting

The study strongly proves that not all AIOps solutions are created equal. The research also shows that in order to
successfully adopt AIOps capabilities and close the gap with TPOs, organizations should be considering the following 6
areas.
Organizations should think about AIOps as a strategic
solution, not as a tool. That approach will allow them to
achieve full benefits of AIOps deployments and get the
value that goes beyond tactical tasks.
1
Successful AIOps deployments go beyond technology
and require an organizational and strategic approach.
2
Organizations are increasingly understanding limits of
manual work and identifying more tasks that are not
humanly possible to complete without context-based
automation.
3
By successfully addressing two key attributes of digital
transformation - using technology as a competitive
differentiator and improving customer experience - AIOps is
well positioned for future growth.
4
Successful AIOps deployments are not easy, but many
business areas being impacted and high cost of non acting
makes it well worth it to make changes necessary for
effective deployments.
5
AIOps plays a key role in reducing alert noise and
improving the troubleshooting process, but maximizing
the value of IT data, proactive management, enabling
DevOps and dynamic environments are driving even
more value.
6
Even organizations that do not fall into the TPO
class are experiencing performance
improvements from deploying AIOps capabilities.
TPOs view closing skill gaps of IT staff as one of the
key benefits of AIOps, while other organizations see IT
skill set as one of the key challenges for AIOps
deployment.
Key takeaways

Upcoming studies
Enabling Top Performing
Engineering Teams
Publishing: May, 2020
Study format: Maturity
Class
Transforming IT Operations
for Digital Economy
Publishing: June, 2020
Study format: Technology
Transformation
The Value of
Observability
Publishing: June, 2020
Study Format: Technology
Transformation
AIOps Solution Selection
Publishing: July, 2020
Study Format: Technology
Transformation
New Generation IT
Monitoring
Publishing: Jul-Aug, 2020
Class
The Role of Automation
in Enabling DevOps
Publishing: Jul-Aug, 2020
Class
Recent and upcoming research

Focus on business outcomes
Methodology framework leveraging a multi-
step approach to connect vendor's
differentiators with business outcomes
Situational analysis
Providing actionable recommendations to
user organizations based on their individual
requirements
User Insight Platform
Ongoing, personalized approach for
research data collection and analysis
Business model
Ability to continuously leverage up-to-date
research in each stage of the buying cycle
& sales funnel
Bringing together the most advanced concepts from analyst research and media industries
Contact DEJ
About DEJ

Strategies of Top Performing Organizations in Deploying AIOps - key findings

Recommandé

Recommandé

Contenu connexe

Tendances

Tendances (20)

Similaire à Strategies of Top Performing Organizations in Deploying AIOps - key findings

Similaire à Strategies of Top Performing Organizations in Deploying AIOps - key findings (20)

Dernier

Dernier (20)

Strategies of Top Performing Organizations in Deploying AIOps - key findings