Copyright 2011 IDC. Reproduction is forbidden unless authorized. All rights reserved.

Technology, Innovation and Future Priorities

CIO Survey Summary : Australia

Technology, Innovation and Future Priorities

CIO Survey Summary : Australia

Tim DillonAssociate Vice President End User & Mobility Research  IDC Asia‐Pacific July 2011

Copyright 2011 IDC. Reproduction is forbidden unless authorized. All rights reserved.

Technology, Innovation and Future Priorities

CIO Survey Summary : Australia

Technology, Innovation and Future Priorities

CIO Survey Summary : Australia

Tim DillonAssociate Vice President End User & Mobility Research  IDC Asia‐Pacific July 2011

©2011 IDC | 3

By 2014 80% of New Software will be available via Cloud

Mobility becoming the rule for online access, over ½ of 2.1bn internet users

1m Apps combined on Apple & Google, 3bn apps downloaded

In 2011 330m Smartphones, 42m media tablets sold. Non PCs outship PCs

Social networking growing at average of 38% YoY for next 5 years

Public & private cloud spend outgrowing rate of overall IT market by 4-5 times

Digital universe will expand by almost 50% to just shy of 2 trillion gigabytes

By 2014 7 billion internet connected devices, only 2bn of which are PCs

IT: It’s getting a little complex…

CIO Survey

Agenda

Budget IndicatorsInnovationBusiness PrioritiesTechnologyA New Architecture?

CIO Survey

24% 49% 70% 16%23%6%

CIO Survey

52%33% 28% 25% 29%10%

* <100% due to ‘declined to answer’ (10%)

What happened toBudgets?Changes IT Budget as % of Focus

Increased : 30% (AP 44%)

Flat : 48% (AP 34%)

Decreased : 8% (AP 9%)

Declined : 14% (AP13)

Revenue: 5%

OPEX : 4%

‘Special’ : 2%

Lights on 23% (AP 15%)Transformation & modernisation : 40% (AP 25%) Business Profit via IT Alignment 37% (AP 60%)

Spend

What happened toBudgets?

0

1

2

3

4

5

6

7

2009 2010 2011

Hardware

Software

IT Services

NetworkHardwareFixed Comms

Mobile Comms

Cloud Services

%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

3+ years

2‐3 Years

1‐2 Years

< 1 Year

< 6 months

Spend : Growth, ROI

IT & Innovation : Australia

Success measured by Cost Reduction & Market Share.         (Speed to Market, Increased Revenues)  

Drivers: Customers & Competition (AP : Customers & Revenues)

IT supports innovation : 36% of respondents. (AP : 36%)

Business Priorities

Improve productivity via infrastructure12345

2

73

Better understand customers

New markets / regionsControl / manage costs

81

Australia ALL AP

678

910

Improve customer serviceBetter partner / channel integrationSupport competitive opportunities

4

Introduce new products / services

`

IT business cases

Technology Priorities

1 Migrating to new HW/SW platforms=2=245678

Control / manage costsAlign IT / Business

Meeting users’ expectations

Staffing & recruitmentOrganising / using BI

Managing data

Australia

Communication & collaboration

1 Have applications fit business process better2345678

Improve availability / performance of IT I/FImprove security

Improve data access

Faster applications deployment Lower IT I/F costs

Real-time business performance

AP

Technology Deployment Plans

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

Svr VirtRemote Apps Delivery

Cloud AppsBI / PA

Cloud PlatformSocial Business

Mobile BusinessUC

Web 2.0 BusCloud I/FDtp Virt

Cloud BaaSBYOC

Now

Next 12

Next 24

The Next 24 Months

1 Cloud234

Mobile BusinessDesktop Virtualisation

Applications Delivery & Management

1

4

23

ALL AP

BI / PAServer Virtualisation

Cloud

Mobile Business

5 Web 2.0 / Social Business

4 Unified Communications

Australia

©2011 IDC | 14

Cloud BI / PA

Mobile Business

Web 2.0 / Social Business

Cost

Revenue/Product

Customers

The Drivers

Desktop Virtualisation Cost

0% 20% 40% 60% 80% 100%

Cloud

Mob Bus

DT Virt

RADM

Web 2.0/Soc Bus

Cost reduction Revenue growth

Product/service deployments Customer retention

Other

RADM Cost

©2011 IDC | 15

Social Business

Internal / External

Using Social

Networks?

Yes (40%)

Internal : 25%

Communication

Customer Support

External 75%

Customer Support

Innovation

©2011 IDC | 16

Social Business : Integration & Deployment

0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0%

CRM

BI / PA

Yes Next 12 months Eventually

14.6%

14.6%

24.3%16.3%

30.1%

Existing enterpriseapplications

Cloud‐based

DIY Platforms

SI/PS Firm

Unsure

Tablets & Smartphones now outship PCs in AP

Ecosystem comprises devices, networks, OS, applications and the Cloud

New business models

Cloud starting to underpin delivery

BYOD

Mobile BusinessSoftware OS

becoming fragmented

©2011 IDC | 18

Mobility & Devices : Australia 2010 - 2014

Device YoY 2011/2012 GrowthSmartphones 24%Portable PCs 2%Tablets 22%Desktop PCs -2%

APeJ35%23%45%5%

Source: APJ Client Devices Trackers, 4Q10

0

5000000

10000000

15000000

20000000

25000000

TabletsPortable PCsSmartphoneDesktop

©2011 IDC | 19

TabletsQ. Does your organization intend to procure media tablets within the coming year?

Source: APeJ Continuum, 2011 (N=1,633)

©2011 IDC | 20

Business OS

47.3%

11.3%12.2%

15.9%

13.3%

2010Wintel

Android on ARM

iOS

Symbian on ARM

Other

27.3%

25.9%

14.4%

9.9%

22.4%Wintel

Android on ARM

iOS

WinPhone on ARM

Other

2014

©2011 IDC | 21

Mobile Business Applications : AUS

Source: APeJ UC & Mobility, Dec 2010 (N=576) – multiple responses

0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 90.0% 100.0%

Email

IM

Web Conf

Salesforce

LBS

CRM

ERP/ERM

Vertical

Social Media

Video

Now

1 yr

2yr

©2011 IDC | 22

CloudQ. Which types of applications do you believe are suitable for your organization to run in a Public

Cloud environment now, in 2011?

Source: APeJ Cloud Computing, April 2011 (N=493)

©2011 IDC | 23

Cloud Forecast : AUS (& AP) AUSTRALIA 2010 2011 2012 2013 2014 2015Public cloud

AaaS Appls $247 $315 $386 $445 $502 $577PaaS Applications D & D $49 $86 $114 $158 $201 $241IaaS Sys Infra Mgt Software $56 $86 $124 $162 $204 $263IaaS Server services $54 $57 $80 $104 $136 $157IaaS Storage services $37 $40 $56 $72 $95 $109

Subtotal $444 $584 $761 $940 $1,137 $1,346Virtual Private Cloud

IaaS Sys Infra Mgt Software $6 $15 $41 $69 $105 $124IaaS Server services $12 $32 $87 $146 $221 $260IaaS Storage services $12 $29 $79 $132 $200 $235

Subtotal $31 $76 $207 $347 $526 $618Australia TOTAL $475 $660 $968 $1,287 $1,663 $1,964

©2011 IDC | 24

A Future Business Architecture?

Windows OS

MacOSLinux

Android

iOSBlackberryWindows Phone

Symbian

Smartphone

iOS

AndroidLinux

Media Tablet

Linux

AndroideReader PMPs

iOS

Linux

Android

©2011 IDC | 25

An Example

Fully Virtualized

20k PC fleet, no refresh

Smartphone Laptop, Tablet

Platforms by

Microsoft, Apple,

Google, others

Staff RetentionCosts

THANK YOUTHANK YOU

IDC AustraliaL20, 8 Napier StreetNorth Sydney, NSWAustralia 2060

Tim DillonAVP ResearchAsia Pacificwww.idc.com

T. +61 410 65 9943E. tdillon@idc.com