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

Technology, Innovation and Future Priorities

Matt OostveenResearch DirectorIDC Australia 

CIO & CFO Survey

Agenda

Budget Indicators

Business Priorities

Technology Priorities

©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…

©2011 IDC | 4

The 4 pillars : Cloud, mobile, social, big dataThe 4 pillars : Cloud, mobile, social, big data

Source: IDC, 2012; all data for 2015

• IT & business services delivered via cloud will form a US$15.8Bmarket

• >3/4 of social media users access via mobile devices

• >50% of the companies in Asia/Pacific will have a social business strategy

•40% of all employees in Asia/Pacific will be mobile workers

• 1/2 billion smart phones will be shipped

• 90% of organizations will be analysing some form of 'Big Data’• The global Big Data technologies & services market will reach $16.9B

Clou

dSo

cialMobile

Big data

CIO

Survey

5 markets – Australia, India, Malaysia, New Zealand, Philippines & Singapore.

50% had 500‐999 employees ~ 50% had over 1,000 employees

CFO

Indicate your organisation’s view of business prospects

CIO Survey - Sentiment

2.5

23.7%

0.0%

15.9%16.3

29.4%

18.0%

28.2%

13.83.7%

15.9%7.3%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2011 2012 2011 2012

Very positive

Positive

Somewhat positive

Neutral

Negative

IDC Australia FFM, May 2012, n=245

81.2% 46.9% 82% 55.9%

The CFO View – CFOs are worried

0% 5% 10% 15% 20% 25% 30% 35%

Launch of new products/services

Falling Sales

Entering new geographical markets

Managing rapid growth

Managing corporate risk to regulatoryrequirements/compliance issues

Managing employee compensation levels

Managing foreign exchange risks

Collection of receivables ‐ days to receipt of cashstretching out

Access to adequate financing

Decreasing overall expenses 3 Main Concerns

• Rising costs of both raw materials as well as employee costs

• Market uncertainty and exposure to swings in foreign exchange rates

• Cash flow, including keeping cash in the enterprise as well as access to financing

IDC Asia/Pacific CFO Poll, Nov 2011, n=250

Aug-12© IDC

CFOs are Taking ActionCFOs are Taking Action

8

Consolidating suppliers

Increasing credit lines

Leasing instead of buying

equipment

Outsourcing non-core business functions

Nearlyof CFOs indicated they will be taking the following actions in the next six months…

IDC Asia/Pacific CFO Poll, Nov 2011, n=250

Aug-12© IDC

Some good news for IT…Some good news for IT…

If your organisation cuts overall expenses in response to economic uncertainty, which area do you expect will see the largest budget decrease?

9

IDC Asia/Pacific CFO Poll, Nov 2011, n=2500% 5% 10% 15% 20% 25% 30% 35%

Sales

IT

Finance/Accounting

Executive Management

Manufacturing or Product Creation

Customer Service & Support

Marketing

Adminstration & Operations

Research & Development/Engineering

Aug-12© IDC

In Fact….In Fact….

Almost 75% of CFOs view IT as a source of competitive differentiation.

Top 3 Ways IT Creates Differentiation

IDC Asia/Pacific CFO Poll, Nov 2011, n=250

1. Improving operational efficiencies

2. Support innovative products and services

3. Improve customer retention/relationships

Top 3 Ways IT Fails to Differentiate

1. Implementations take too long

2. ROI is better elsewhere in the business

3. Technology is a “commodity” in our company.

What happened toBudgets?

Spend: By Technology Area

0%

10%

20%

30%

40%

50%

60%

Hardware Software IT Services Public CloudComputing

NetworkHardware

Fixed datacosts

Mobile datacosts

Decrease since 2011 Remain the same Increase since 2011

Increase

Flat

Decrease

2011 2012

30%

48%

8%

52%

30%

13%

IDC Australia FFM, May 2012, n=245

Aug-12© IDC

ROIROI

On investing in any technology, what would be the timeframe by which you expect the investment to start giving a positive return on investment (ROI)?

12

IDC Australia CIO Poll, May 2012, n=245

11.7%0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

3+ years

2‐3 Years

1‐2 Years

< 1 Year

< 6 months

11.4%

24.5%

9.8%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100% Dependent on Investment

> 5 years

4-5 years

3-4 years

2-3 years

1-2 years

6 months - < 1 year

< 6 months

Alignment of Business and Technology

IDC Australia CIO, May 2012, n=245IDC Australia CIO Survey , May 2012, n=245

Ranking Business Goal

1 Newcustomers/segments

2 Dealing with cost

3 New market expansion

4 High profit margins

5 Customer retention

Ranking IT Goal

1 Lower costs

2 Infrastructure improvement

3 More secure environment

4 Better use BI/BA

5 Improve business processes

IDC Australia CIO Survey , May 2012, n=245

Technology Deployment Plans

IDC Australia CIO Survey , May 2012, n=245

22.0%

21.9%

20.8%

27.3%

20.4%

23.3%

24.1%

27.8%

22.0%

21.6%

20.0%

24.5%

20.0%

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

SVR Virt

Mobile Apps

Social Business

Green IT

UC/VC

Client Virt

BI/BA

Virtual Private Cloud

BPO

Private Cloud

BYOD

NFC/Payments

Public Cloud

Deployed Next 12 months Next 13‐24 months

>50% inc pilots

Aug-12© IDC

2011

MobileDevices & Apps

MobileBroadband

CloudServices

Social Business

Big Data/ Analytics

Industry TransformationIndustry Transformation

PC

LAN/Internet

Client-Server

1986

Millions of Users

Thousands of Apps

Hundreds of Millions of Users

Tens of Thousandsof Apps

Billionsof Users

Millionsof Apps

Trillionsof “Things”

© 2010 IDC

The 4 pillars Revisited Cloud, mobile, social, big dataThe 4 pillars Revisited Cloud, mobile, social, big data

Source: IDC, 2012; all data for 2015

• Moving beyond OPEX/CAPEX issues to business goals and outcomes•Still fitness for purpose•Cloud is the foundation for the other 3 pillars

•Social media show be a critical part of any organisations multi‐channel go to market strategy. •Optimise it for mobility, target and profile. 

•Mobility is a massive enabler of business however do not get too distracted by BYOD•Platforms and Applications more important

•SMB friendly solutions will come from the cloud. •Large enterprises will need to brace for potential self‐service analytics

Clou

dSo

cialMobile

Big data

Some Recommendations

MeasureMobility and BYOD is coming fast. Implementation of a strategy is vital to maintain control.

CollaborateHow tighly linked are your application, infrastructure and facilities teams?

Set a visionGoals, budgets and priorities change. Set guidance for what you want to acheive in a non‐project oriented manner.

Make a decisionConsumerisation, the carbon tax, data growth won’t wait. But do you have the internal skills and resources?

THANK YOUTHANK YOU

IDC AustraliaL20, 8 Napier StreetNorth Sydney, NSWAustralia 2060

Matt OostveenDirector

@mattoost