This presentation, including any supporting materials, is owned by Gartner, Inc. and/or its affiliates and is for the sole use of the intended Gartner audience or other
authorized recipients. This presentation may contain information that is confidential, proprietary or otherwise legally protected, and it may not be further copied,
distributed or publicly displayed without the express written permission of Gartner, Inc. or its affiliates.
© 2012 Gartner, Inc. and/or its affiliates. All rights reserved.
Visão Gartner sobre o
“Budgeting” para os próximos
anos.
Celso Chapinotte
celso.chapinotte@gartner.com
0

Key Issues
1. Align IT Investment Levels With Strategy
Using Run, Grow, Transform and Beyond
2. Low-Cost IT:
How Industrialization Is Resetting IT Price for
Performance
3. IT Budgeting Tools
1

Key Issues
1. Align IT Investment Levels With Strategy
Using Run, Grow, Transform and Beyond
2. Low-Cost IT:
How Industrialization Is Resetting IT
Price for Performance
3. IT Budgeting Tools
2

Different Approaches to a View of IT
Spending Impact to Business Outcomes
Run Grow Transform
Run Compliance Grow Transform
Efficiency Enhancement Transformational
Existing Capabilities New Capabilities
Production/Operations New Projects
Replacement Regulatory Expansion Growth
The Past The Future
3

RUN GROW TRANSFORM
4

Market Leaders Track IT Spending
Against Strategic Planning Pillars
Source: Gartner (2011), actual figures
Industry-Generic Industry-Specific
Low Maturity Average Market Leader
Capex
Opex
Transform
Grow
Run
Quality
Customer
Efficiency
Regulatory
Cost
Revenue Risk
Avoid Cost
Reduce
Cost
Protect
Revenue
Grow
Revenue
WW Cross-
Industry
WW Cross-
Industry
Private Education Financial Services
5

IT Spending by Business Capability —
The Importance of External Context
6

Showing the "Business" Value of "Run" — Track
Trending of Run Divided by Business Output
Run
Change
Shipping: 20-foot equivalent unit (TEU) $230
Oil & Gas: $000 barrels of oil (BOE) $178
Automotive: Vehicle manufactured $333
Hospitals: Licensed beds $23,500
Railroads: Revenue ton mile $0.001
ROA IRR NPV — Discounted Cash Flow
Business Productivity Improvement
Business Value Metric Delta
Risk-Adjusted Business Value Metric
Customer or Partner Satisfaction
Source: Gartner, Inc. Figure meant to be illustrative and not a formal benchmark.
7

A Nexus of Forces:
How Will Enterprises Pay for This?
Make "room" in IT budgets to pay for this convergence
Pervasive
Access
8

IT Organizations Struggle to
Simultaneously Cut and Transform
Reduce Run by
5% to 10% per Year
Maintain Flat
IT Spend %
Revenue/
Operating Budget
Achieve
~50%
Run % IT
Spend
3-Year
IT Plan
Gartner Research: IT Metrics: Align IT Investment Levels With Strategy Using Run, Grow,
Transform and Beyond http://www.gartner.com/resId=1961518
9

Average Strategic IT Spending Profile by
Enterprise Personality (Percentages)
54%
24%
22%
Transform
Grow
Run
Aggressive
61%
21%
18%
Transform
Grow
Run
Mainstream
66%
18%
16%
Transform
Grow
Run
Conservative
What it takes to be
aggressive…
• Shifting 7% of IT spending to
grow/transform can transform a
mainstream organization to an
aggressive one
• Shifting 12% of IT spending to
grow/transform can transform a
conservative organization to
an aggressive one
10

Key Issues
1. Align IT Investment Levels With
Strategy Using Run, Grow, Transform
and Beyond
2. Low-Cost IT:
How Industrialization Is Resetting IT Price for
Performance
3. IT Budgeting Tools
11

Industrialized Low Cost Services
(ILCS) Are a …
2. IT Services' Forward
Looking Pricing Theory
1. Service Provider's Delivery
and Business Model
3. Growing Component of
Clients' Services'
Sourcing Strategies
DBVS
ILCS
12

ILCS Defined
Gartner qualifies an industrialized service as ILCS if:
• Entry price is between 10% and 30% of the average
corporate internal cost for that function in 2010
• Price is still at least 50% less than the (above) client cost,
once the service is configured and delivered
ILCS are managed, multitenant, ready-to-use IT services.
Designed and offered as no-frills services, with service options and add-ons.
Entry-level price — expressed as price per user, per month, or price per unit
per month (PUPM) — is low and attracts a high number of prospects.
Service
Client Cost
(2010 Benchmark Median)
ILCS
Entry Price
ILCS
Delivery Price
Email, no archive
$12 PUPM $1.20-$3.60 PUPM $6 PUPM
Managed Devices
Fully loaded cost, including assets $95 PUPM $9.50-$29 PUPM $48 PUPM
Unmanaged VM Wintel
1 to 4 CPU/GB (per VM) $504 pVMpm $50.40-$150 pVMpm $252 pVMpm
SAP Managed Hosting
DC service, up to SAP basis (IU4SAP) $34 PUPM $3.40-$10 PUPM $17 PUPM
Source: Gartner September 2011 — "Estimated Price Points for Industrialized Low-Cost IT Services" (G00214401)
13

ILCS and Utility Are too Complex for You?
Beware of a Return of Full Outsourcing!
Deal Price
Unit Price Trend
Utility
Pricing
Volume
Deal
Price
Unit Price
Deal Price
Cost
Traditional
Outsourcing
Volume
Cost
Unit Price
Full Outsourcing
Leveraged Price Trend
Volume
Deal Price
CFO
Prize
2012+10
Source: Gartner April 2012 — "CIOs Should Beware of a Return to Full Outsourcing" (G00226701)
14

Fix Cost (Run the Business)
• Infrastructure
• Application Management
Change (Business Transformation/Deliver Value)
• New Business Models
• New Products/Services
• New Business Processes30%
70%
Fund More
Transformation
50%
Increase
the
Value
Reduce the Cost
2012 2015+
• Cost reduction
level not
achievable
with traditional
methods
• Leading to a mix
of industrialized
and traditional
services
We Must Achieve IT as Soon as Possible
— Cut the Cost… To … Increase the Value
15

By 2015, 40% of the most successful
CIOs will use cloud sourcing to cut costs
and generate new revenue in order to
outperform competitors.
Strategic Planning Assumption
"Predicts 2012: IT Services Sourcing Strategies and Execution Demand Proactive Diligence" (G00227087)
16

Key Issues
1. Align IT Investment Levels With
Strategy Using Run, Grow, Transform
and Beyond
2. Low-Cost IT:
How Industrialization Is Resetting IT
Price for Performance
3. IT Budgeting Tools
17

Budgeting… let’s listen from CFO?
18

Budgeting… let’s listen from CFO?
19

We Must Achieve IT as Soon as Possible
— Top Findings From CEO/CIO's Survey
Top Three Business Priorities in 2012
Please indicate the top three business priorities for your
enterprise/business unit in 2012
1Increasing enterprise growth
2Attracting and retaining customers
3Reducing enterprise costs
Top Three CIO Strategies in 2012
Please indicate the top three priorities that you expect to
focus on in 2012
1Delivering business solutions
2Reducing the cost of IT
3Developing and managing a flexible infrastructure
Top Four CIO Technology Priorities
Please indicate your top three priorities for 2012-2015
1Analytics and business intelligence
2Mobile technologies
3Cloud computing (SaaS, PaaS, IaaS)
4Collaboration technologies
Source: Gartner January 2012 — "Amplifying the Enterprise: The 2012 CIO Agenda" (G00230429)
20

Budgeting… let’s listen from CFO?
21

Budgeting… let’s listen from C-level?
22

23

24

25

Vide #1 Relatório Exemplo
26

Vide #2 Relatório IT Metrics
27
Budgeting…

28
Budgeting… INFORMATION SECURITY
Mensagens aos nossos Clientes:
 Não deixem de executar o IT Budgeting/ IT Score
 Falem com nossos Analistas
Mensagens aos "não" Clientes:
 Nos solicitem um sample e executem o IT Budgeting

IT Organizations Struggle to
Simultaneously Cut and Transform
Reduce Run by
5% to 10% per Year
Maintain Flat
IT Spend %
Revenue/
Operating Budget
Achieve
~50%
Run % IT
Spend
3-Year
IT Plan
Gartner Research: IT Metrics: Align IT Investment Levels With Strategy Using Run, Grow,
Transform and Beyond http://www.gartner.com/resId=1961518
29

This presentation, including any supporting materials, is owned by Gartner, Inc. and/or its affiliates and is for the sole use of the intended Gartner audience or other
authorized recipients. This presentation may contain information that is confidential, proprietary or otherwise legally protected, and it may not be further copied,
distributed or publicly displayed without the express written permission of Gartner, Inc. or its affiliates.
© 2012 Gartner, Inc. and/or its affiliates. All rights reserved.
Visão Gartner sobre o
“Budgeting” para os próximos
anos.
Celso Chapinotte
celso.chapinotte@gartner.com
OBRIGADO!
30