IT Modernisation Yields Business Advantages Even early : In The State of Technology in the Future, the IDG Research Services survey of 200 IT executives commissioned last December by the Insight Enterprises Cloud + Data Center Transformation team, respondents who completed 25 per cent or less of their initial modernization objectives reported achieving business improvement in each of the eight measured categories. Sixty-five percent had already achieved better service quality. Significant progress has also been made in improving customer experience / satisfaction (52 per cent), cost savings (50 per cent), uptime (44 per cent) and the ability to generate new revenue-generating products and services (42 per cent).
Organizations that had completed their initial Business Sales Objectives reported even better results for all eight measures, including the ability to extract business value from data (56 per cent) and faster time to market for all eight measures, New products and services (50%).
The findings clearly show that a modernized IT ecosystem is a key building block for business transformation. Whether spinning a new service or application quickly, diving deep data to identify new market opportunities or using artificial intelligence to improve sales forecasts or warehouse operations, horsepower, agility and advanced data analysis are essential capabilities to do the job.
More than two-thirds of people polled reported that public cloud costs exceeded their expectations, with overruns ranging from 51% to 100% for approximately half of those people polled. Most of the causes can be traced back to completely inadequate due diligence, governance or cloud enhancement efforts, often due to lack of in-house expertise in these areas. Examples include: unexpected data reflectance charges, subscriber to more cloud resources than required, failure to take added benefit of vendor volume discounts, lack of comprehension to analyze monthly cloud costs, and failure to optimize cloud workloads to obtain greatest profit from cloud platforms.
Adopting managed services is widespread at every stage of the IT modernization process, with an average of 95 per cent of respondents outsourcing one or more IT operating environment functions to a managed service provider and 84 per cent outsourcing to cloud management.
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