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Overcoming Small Business IT Challenges Leveraging Cloud and On-Premise Resources for Maximum ImpactAn IDC InfoBrief | April 2016

Sponsored by:

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An IDC InfoBrief, sponsored by HPE and IntelOvercoming Small Business IT Challenges

Overview This IDC InfoBrief explores how small businesses using both on-premise and cloud-based IT can apply hybrid IT infrastructure to address IT challenges.

Methodologyu Web survey of 455 small businesses (10-49 employees) and midsize

firm (50-499 employees) IT decision makers in the US & UK

u Midsize firms were required to have remote locations to identify support issues

u Respondents had decision-making responsibility for company’s server and/or IT infrastructure

In This InfoBrief

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N=455, Source: IDC SMB IT Survey, 2016

Major pain points and challenges managing current IT infrastructure

Managing IT Has Never Been More ComplexSMB IT pain points are diverse and growing. Infrastructure costs and security are top concerns.

Size and unpredictability of IT costs

Ensure a secure data and overall IT environment

Lack of staff and budget to effectively manage remote office IT

Distractions related to technology that keep us from focusing on our business

Down time of mission critical applications

Provisioning and managing applications across cloud and on premise environments

Space/footprint required for servers and related equipment

Difficulties coordinating assets across multiple locations

Bring Your Own Device adds complexity to app and device management

Complicated set up of rack full of servers

Senior mgmt. expect IT to spend more time managing IT, less on fixing IT

Server sprawl: too many physical servers located across multiple offices

28%25%

7%9%

11%11%11%11%

11%17%

21%22%

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u Small business IT managers are being asked to do more with less

And Budget and Resources Have Never Been Tighter

75%

Cloud IT services are critical enablers when the majority of small businesses are spending less than $1000 monthly on IT.

of small businesses currently deploying cloud IT services

Average monthly IT spending

45%<$500

39%$500-$999

14%$1000-$2499

1%$2500+

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Source: IDC, 2016

In just 5 years, over 70% of small and 90% of midsize businesses have deployed cloud-based applications, primarily to increase employee productivity and ensure more agile business processes. And cloud engagement continues to grow over time – from a handful of apps to multiple.

Cloud is a Critical Enabler for Small Business IT Transformation

34%34% 34%

2010 20102015 2015

7% 1

71%

4

17%3

94%8

Average # Deployed Cloud Apps and Services

Small business Midsize business

SMB Cloud Adoption Rate

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Ability to manage remote offices and other operations efficiently and effectively is critical in today’s fast-moving workplace. Reduced cost used to be the top-cited benefit. While still important, efficiency and reliability are even more important.

Small & Midsize Businesses Recognize Multiple Cloud Benefits

Benefits of adopting a Cloud-based solution in IT operations

Being able to remotely manage and coordinate IT regardless of IT staff’s physical location

Faster recovery from unplanned operational disruptions

Reduced cost of set-up and operation

Expanding IT capabilities without adding additional staff

Flexibility to add/retire/manage user access to IT

38%

31%

23%

28%

28%

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Data security is still the number one concern, despite growing cloud familiarity. Service reliability/availability also, encouraging continuing use of on-premise resources. Longer term, “app sprawl,” or out-of-control user fees that increase IT spending.

Yet Concerns About Cloud Continue

Discouraging factors in the adoption of cloud resources

Concerns about data security

Concerns about data availability, or unexpected outages

Concerns about unpredictable monthly user fees

A lack of tech support or timely assistance from the provider or partner

Concerns about cost overruns from the adoption of new services

48%

32%

21%

23%

27%

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*Source: IDC SMB IT Survey, 2016

Growing cloud penetration and the increasing number of cloud apps, especially in remote locations, complicate both security and centralized management.

Coordination and control will be key

At the same time 61% of small & midsize businesses continue to prefer on-premise servers*.

Combining the Benefits of On-Premise and CloudTransforming Small Businesses to a Hybrid IT Infrastructure

On-Premise IT• Safe and secure

• LAN performance

• Reliability / Control

• Local data/apps

Cloud IT• IT as a service

• Scalable/flexibile

• Anytime, anywhere access

• Off-site resilience/ business continuity

The ideal? A combination of the two in Hybrid IT Infrastructure.

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The HPE ProLiant EC200a, powered by Intel Xeon processors features integrated compute, storage, and networking, together with Zynstra virtualization and cloud management software, and is delivered as a managed service. It is deployed onsite and comes pre integrated with cloud services and remote management from the cloud.

Designed with the needs of small businesses in mind, this solution features simple deployment and ease of management—all in a convenient subscription model for a predictable monthly fee.

Transforming to a Hybrid Infrastructure HPE ProLiant Easy Connect

HPE ProLiant EC200a Managed Hybrid Server

Copyright 2016 Hewlett Packard Enterprise Development LP Intel, the Intel logo, Xeon, and Xeon Inside are trademarks or registered trademarks of Intel Corporation in the U.S. and/or other countries

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Small businesses have serious issues to address as they update their IT environments to meet the changing demands of internal staff and external customers, suppliers, and partners.

Opportunities & Challenges for Small Business Technology Decision Makers

Opportunities include: u Driving higher levels of IT performance and agility while

avoiding the need to add excessive staff.

u Managing and coordinating on-premise and cloud services across multiple locations.

u Offloading maintenance and support to third party partners to free up IT staff time for higher-value projects.

Challenges include: u Scaling on-premise infrastructure to manage legacy apps

with the same effectiveness as cloud apps. IDC views this

as the greatest challenge of all.

u The transition to cloud services as replacements rather than additions to current IT infrastructure. Integration/implementation require serious work.

u Identifying and coordinating with a technology partner who can quickly and effectively implement changes at the application layer and be responsive to institution needs.

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IT managers will be judged by how quickly they can deploy new services, how consistently services can be delivered to users regardless of location, and how securely they manage data, apps and devices. Building an IT platform that meets tomorrow’s organizational challenges must consider the following:

u Reduce administrative overhead costs (or at least slow growth) u Provide higher levels of agility and flexibility to adjust to changing needs u Enable remote sites to be managed from a central location u Attain operational efficiency by eliminating the need for remote IT staff u Offer higher levels of IT security u Create an infrastructure that speeds deployment and mitigates risk

IDC Essential GuidanceThe ability to support remote IT functions will only grow over time as staff become increasingly mobile.

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Appendix: MethodologyIDC SMB IT Surveyu IDC deployed an online survey targeting decision makers from 455 small & midsize businesses in the US & UK u Must have decision-making responsibility for their organizations’ server and/or IT infrastructure u Small Business (10-49 employees), Midsize Business (50-499 employees) u Midsize firms required to have at least more than 1 location

Job Title Company Size

10%C-Level, President, Owner, Principal, Superintendent

3%Staff, individual

contributor

1%Other 5%

100-249

10%50-99

2%250-499

51%10-19

32%20-49

9%Vice President

14%Director

33%Manager/Supervisor

30%Office Manager

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