iot report 2015: business at the speed of it

IOT REPORT 2O15: BUSINESS AT THE SPEED OF IT

S U RV E Y C O N D U C T E D B Y R E D S H I F T R E S E A R C HJ U N E 2 0 1 5

A L O O K AT T H E C U R R E N T L E V E L O F P R E PA R E D N E S S F O R A U S T R A L I A N I T D E PA R T M E N T S TO M E E T T H E C O M P L E X C H A L L E N G E S A N D O P P O R T U N I T I E S C R E AT E D B Y T H E I N T E R N E T O F T H I N G S ( I O T )

( A U S T R A L I A )

2

STUDY OVERVIEW

• Australian IT departments cite concerns over a lack of IT skills, security issues and growing network complexity as the key challenges for organisations looking to adopt IoT technology in the next three to five years.

• Nearly 60 percent of respondents said that more or different IT skills will be required as devices and robots become more intelligent, and close to three quarters (73 percent) feel the workforce is currently ill-equipped.

• Insufficient skills was also named as the top barrier to the uptake of IoT technologies (30 percent), with 44 per cent of respondents also agreeing that staying current with technology is the number one challenge impacting their work in the next three to five years.

• Respondents also cited that maintaining security (42 percent) and growing network complexity (38 percent) among the challenges that will most impact their work in the next three to five years.

• IT decision makers also highlighted several opportunities driven by the IoT including, improved capabilities for remote maintenance (39 percent), security management (32 percent), and the ability to offer high-margin personalised services (27 percent) to stakeholders

K E Y F I N D I N G S

© 2015 SOLARWINDS WORLDWIDE, LLC. ALL RIGHTS RESERVED.

3

STUDY OVERVIEW

D E M O G R A P H I C S : S U R V E Y R E S P O N D E N T S


200 IT decision makers in Australia from small,mid-size and enterprise companies participated in a June 2015 online survey

44%

27%

30%

Company Size(number of em-

ployees)0-49 FTEs

50-199 FTEs

200+ FTEs

34%

32%

17%

7%

6% 3% 2%

State/Territory

NSW VIC

QLD SA

WA TAS

ACT

35%

22%11%

10%

7%7%

5% 4% 2%Sector

Professional ServicesOther RetailManufacturingFinancial ServicesEducationConstructionHealthcareMining

4

FULL SURVEY RESULTS

K E Y C U R R E N T C H A L L E N G E S F O R I T D E C I S I O N S M A K E R S


Staying current with technology

Maintaining security (internal and external)

Reduced IT budgets

Growing network complexity

Inability to source experienced staff

The increasing use of smart devices/things on your network

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

45%

40%

39%

38%

27%

23%

61%

30%

25%

22%

21%

23%

31%

43%

54%

46%

31%

17%

32%

51%

46%

53%

31%

27%

Current challenges impacting most on the work of IT Decisions Makers

Enterprise

Mid-Size Bus

Small Bus

Overall

Which of these challenges currently impact most on your work?

Almost half of IT decisions makers believe staying current with technology most impacts on their work, with those working in organisations with more than 200 employees most impacted by network complexity

5

FULL SURVEY RESULTS

A N T I C I PAT E D C H A L L E N G E S F O R I T D E C I S I O N S M A K E R S


Staying current with technology

Maintaining security (internal and external)

Reduced IT budgets

Growing network complexity

Inability to source experienced staff

The increasing use of smart devices/things on your network

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

44%

42%

38%

38%

30%

24%

57%

38%

29%

20%

33%

17%

33%

44%

48%

50%

26%

28%

34%

44%

41%

53%

29%

31%

Anticipated challenges impacting most on the work of IT Decisions Makers in 3-5 years

Enterprise

Mid-Size Bus

Small Bus

Overall

Which of these challenges do you anticipate to impact your work most in 3-5 years' time?

In 3-5 years the majority of respondents anticipate that staying current with technology, maintaining security and reduced IT department will be the key challenges impacting their work

6

FULL SURVEY RESULTS

I O T M A N A G E M E N T C H A L L E N G E S


Cyber sercurity concerns

Network performance (to support a growing number of clients and faster Internet)

Data overload / Big Data management

Insufficient skills

Network and Systems Monitoring and Management

Inconsistent industry standards

Employees bringing in more devices that connect to the corporate network

Increased network administration complexity

Complexity in provisioning, tracking and managing IP addresses

No significant challenges

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

38%

34%

28%

27%

22%

18%

16%

16%

12%

11%

33%

22%

18%

36%

14%

13%

13%

16%

7%

21%

33%

43%

33%

15%

35%

28%

20%

19%

15%

2%

47%

44%

36%

25%

22%

17%

17%

14%

17%

5%

Top challenges associated with managing the 'Internet of Things' (IoT) (%)

Enterprise Mid-Size Bus Small Bus Overall

What are the challenges associated with managing the 'Internet of Things' (IoT) within your organisation? (top three)

Cyber security, network performance, data overload/big data management, insufficient skills, and network and systems monitoring and management are the top cited challenges associated with managing the IoT

7

FULL SURVEY RESULTS

I P A D D R E S S I N C R E A S E S


none

0-10

11 to 20

21-30

31-40

41-50

51-60

61-70

71-80

81-90

91-100

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

25%

17%

16%

14%

9%

9%

7%

3%

1%

1%

1%

51%

21%

15%

7%

3%

3%

1%

4%

12%

13%

19%

15%

19%

13%

4%

9%

16%

20%

18%

11%

7%

9%

4%

2%

2%

4%

Percentage of IP Address increases on networks in the past 12 months

Enterprise

Mid-Size Bus

Small Bus

Overall

Has the number of IP addresses on your network increased? If yes, by how much in the past 12 months?

Almost 50 percent (48%) of respondents have seen an increase of between 11-49 percent in IP addresses on their networks since June 2014

8

FULL SURVEY RESULTS

T I M E S P E N T M A N A G I N G I P A D D R E S S E S


Less than 5 hours per month

5-10 hours per month







0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

42%

13%

17%

11%

10%

5%

2%

1%

72%

7%

16%

2%

2%

0%

0%

0%

20%

13%

13%

22%

19%

7%

4%

2%

15%

20%

22%

14%

12%

8%

3%

2%

Amount of hours per month IT Decisions Makers spend managing IP Addresses

Enterprise

Mid-Size Bus

Small Bus

Overall

How much time do you currently spend managing IP addresses?

Nearly half of Australian IT departments already spend more than 10 hours a month on managing IP addresses (47%)

9

FULL SURVEY RESULTS

I M PA C T O F I O T O N N E T W O R K C O M P L E X I T Y


Not at all

Only slightly

To some extent

To a fairly significant extent

To a very significant extent

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

25%

26%

38%

10%

2%

46%

29%

24%

1%

13%

28%

44%

13%

2%

3%

20%

53%

19%

5%

Does IoT make network management more complex

Enterprise

Mid-Size Bus

Small Bus

Overall

Does IoT make your network management more complex?

Nearly 80 percent of organisations with 200 or more employees feel the IoT will make their network management more complex (77%) and growing network complexity (38%) is among the major challenges that

will most impact the work of Australian IT decision makers in the next three to five years

10

FULL SURVEY RESULTSI O T U P D AT E B A R R I E R S


Insufficient Skills

Cyber sercurity concerns

Data Privacy laws or concerns

Security of devices / End points on enterprise networks

Managing network complexity

Network performance concerns

Finance and legal departments' risk management

Network and Systems Monitoring and Management capability

No barriers

Inconsistent industry standards

Data overload / Big Data managements

Increased network administration complexity

Complexity in provisioning, tracking and managing IP addresses

Other

Device Firmware visibility

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

30%

29%

20%

19%

18%

16%

15%

12%

12%

11%

10%

9%

7%

6%

5%

36%

15%

13%

16%

16%

13%

3%

7%

20%

8%

3%

11%

5%

11%

3%

33%

35%

24%

26%

22%

22%

17%

13%

2%

17%

11%

6%

6%

2%

7%

17%

42%

27%

17%

15%

15%

31%

19%

10%

8%

17%

8%

12%

2%

5%

Barriers preventing IoT uptake

Enterprise

Mid-Size Bus

Small Bus

Overall

What are the barriers preventing uptake of IoT technologies in your organisation? (top three)

Insufficient skills was named as the top barrier to the uptake of IoT technologies (30%), closely followed by cyber security concerns and data privacy laws or concerns

11

FULL SURVEY RESULTS

T R E N D S I N I O T D E P L O Y M E N T M E T H O D S

© 2015 SOLARWINDS WORLDWIDE, LLC. ALL RIGHTS RESERVED.How is your IoT environment set up?

Australian organisations mainly have their IoT environment set up via a dedicated wide area network (55%)

Deployed over the internet

Has its own dedicated wide area network

Outsourced management

No formal policy/managed as-hoc at present

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

28%

33%

11%

30%

26%

13%

8%

53%

30%

44%

15%

11%

27%

51%

10%

12%

IoT Deployment Methods

Enterprise

Mid-Size Bus

Small Bus

Overall

12

FULL SURVEY RESULTS

S K I L L S E V O L U T I O N I N I O T W O R L D


More or different technical skills required from the IT department

Less skills required due to automation

No change in skill demand

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

59%

21%

21%

47%

16%

37%

61%

33%

6%

73%

15%

12%

Change in skills driven at IoT makes devices and robots more intelligent

Enterprise

Mid-Size Bus

Small Bus

Overall

What will happen in terms of skills required as IoT makes devices and robots more intelligent?

Nearly 60 percent of respondents said that more or different IT skills will be required as devices and robots become more intelligent

13

FULL SURVEY RESULTS

A U S T R A L I A N I T I O T S K I L L S


Not at all

Poorly

To a limited extent

Fairly well

Very well

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

4%

20%

49%

24%

4%

5%

21%

54%

20%

1%

4%

20%

46%

24%

6%

2%

19%

42%

31%

7%

How equipped is the Australian workforce currently to meet IoT skill demands

Enterprise

Mid-Size Bus

Small Bus

Overall

How equipped is the current Australian workforce placed to meet IoT skill requirements?

Close to three quarters (73%) feel the workforce is currently ill-equipped to meet IoT skills demands

14

FULL SURVEY RESULTS

T H E O P P O R T U N I T I E S F O R I O T


Remote maintenance

Security management

The ability to offer high-margin personalised services

Devices can diagnose their own problems

Mineable data to feed into Business Intelligence

Supply-chain optimisation

Infrastructure management

Don’t know yet

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

39%

32%

27%

22%

22%

20%

19%

19%

30%

23%

18%

15%

13%

13%

13%

36%

44%

39%

37%

28%

22%

26%

17%

4%

47%

37%

31%

27%

34%

24%

31%

7%

What are the key opportunities in in IoT world

Enterprise

Mid-Size Bus

Small Bus

Overall

What are the main opportunities for your organisation with IoT? (top three)

IT decision makers highlight several opportunities driven by the IoT including, improved capabilities for remote maintenance (39%), security management (32%) and the ability to offer high-margin personalised services

(27%) to stakeholders.

15

FULL SURVEY RESULTS

T H E I O T M A S T E R M I N D S


IT

Operations

Other

Marketing & Sales

C-Level

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

48%

15%

13%

11%

10%

30%

24%

25%

11%

9%

59%

9%

4%

6%

15%

63%

7%

2%

14%

7%

Who is driving IoT In the Australian workplace

Enterprise

Mid-Size Bus

Small Bus

Overall

Which department is driving IoT within your organisations?

As expected, IoT is largely driven by the IT department with 45 percent of organisations citing this

16

FULL SURVEY RESULTS

C H A N G I N G U S E R E X P E C TAT I O N S


Yes the same

No, lower

No, higher

Don't know

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

48%

15%

23%

16%

41%

10%

22%

26%

59%

22%

15%

4%

46%

14%

31%

10%

User expectations on device performance in an IoT environment

Enterprise

Mid-Size Bus

Small Bus

Overall

Do you expect users to have the same level of expectation of device performance in an IoT environment?

Respondents don’t anticipate user expectations of device performance to sway that much with almost 50 percent indicating that expectations will remain the same in an IoT environment, 25 percent however do

anticipate user expectations to be higher.

17

FULL SURVEY RESULTS

T H E I M PA C T O F T H E N B N O N I T D E PA R T M E N T


IT skills

Network complexity

Managing an increased mobile/remote workforce

Increased emphasis on service delivery and uptime

More smart devices on the network

Ensuring uptime

Don’t know

Application management

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

36%

34%

29%

24%

22%

21%

20%

18%

28%

18%

22%

23%

22%

16%

33%

8%

48%

56%

30%

19%

19%

20%

7%

28%

37%

36%

39%

29%

25%

27%

10%

24%

Anticipated impact of the challenges in managing IT with the NBN

Enterprise

Mid-Size Bus

Small Bus

Overall

What do anticipate will be the challenges in managing an IT environment with the NBN? (top three)

The major challenges in managing IT with the NBN include skills, network complexity and managing an increasingly mobile and remote workforce


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iot report 2015: business at the speed of it

Technology

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