VMware : Built for the Fast Lane

VMware: Built for the Fast Lane

Executive Summary

2

VMware: Built for the Fast Lane – Executive Summary

Contents

About the research 3

Objectives 4

Overview 4

Key Findings 5

Peer pressure: the demand for more modern IT 5

A five month gap sitting between business and IT 7

A fear of being overtaken 8

A perceived talent deficit 9

Summary 10

About VMware 11

About Vanson Bourne 11

3


About the research

• The VMware Built for the Fast Lane study

was conducted on behalf of VMware by

specialist market research agency Vanson

Bourne

• 250 IT decision makers (ITDM) and

500 office workers were interviewed in

each of the UK, France, Germany, Italy,

Netherlands and Nordics (Sweden, Norway

and Denmark). 200 ITDMs and 400 office

workers were interviewed in Russia, while

100 ITDMs and 200 office workers were

interviewed in the Middle East (Saudi

Arabia and UAE)

• In total, 1,800 IT decision makers and

3,600 office workers were polled using a

hybrid approach of telephone and online

interviewing between March and April 2014

• Respondents came from organisations with

employee numbers ranging from more than

5,000 down to 100. The representative

sample was split similarly across the

following employee number ranges: 100

– 249, 250 – 499, 500 – 999, 1000 – 4999

and 5000+

4


Objectives

VMware commissioned the study to explore

the impact of IT complexity on businesses

as they grapple with the mobile cloud era.

The research aimed to provide a better

understanding of the challenges IT faces as

it juggles the maintenance and renovation of

existing systems, whilst looking to the future

and implementing new technology to support

their growing business needs.

Built for the Fast Lane highlights the

misalignment that has emerged between what

the business expects of IT and what it can

deliver, as well as the ramifications this carries

for the broader performance, competitiveness

and growth prospects of organisations.

Overview

The study found that throughout Europe,

the Middle East and Africa (EMEA) there is

a significant gap existing between what the

business wants and when IT can deliver it. This

comes within the context that businesses are

under real pressure to modernise and future-

proof their IT infrastructures, as more agile

companies challenge established players and

react with greater speed to the changing pace

of business.

For those ready to adapt, the mobile/cloud

era has created a huge opportunity for

innovation and growth, delivering greater

flexibility, control and speed to market. Many

organisations, however, are still struggling to

realise this opportunity.

What this study highlights is the pressure

modern IT departments are facing today, the

driving factors behind this and the implications

on the growth potential of companies. Bridging

the gap between IT and business will be crucial

in resolving this and will require a combination

of investment, greater internal alignment and

having exactly the right talent. With these

elements in place, companies can capitalise on

the new era of IT and take back the advantage

in the hotly contested race for growth.

5


33%36%

Graph 1 Graph 2

Headline: The areas IT decision makers believe

will be impacted most as IT is modernised

Data: sheet 10, column C, rows 14- 18 (top five)

The priorities IT departments have been tasked

with when modernising IT


Improved

responsiveness to

customers

Uplift in staff

productivity

Fewer complaints

from staff

Improved innovation

capability within your

department

34%

33%

31%

26%

23%

1

2

3

4

5

Reduce cost of IT

Increase mobility of

workforce

Move more

infrastructure into

the cloud

Implement hybrid

cloud

Move more applications

or data into the public

cloud

50%

43%

40%

30%

28%

1

2

3

4

5

Employee satisfaction

will increase

Graph 3

Headline: Notable implications IT decision

makers believe the gap between business and

IT will result in

Data: sheet 5, column C, rows 15/16/17

Reduced likelihood of innovation

across all departments in the

business

39%

Loss of customers to

more agile

competitors

Reduced staff

productivity

Graph 4

Areas IT departments are focusing on, within the increased

time spent on cloud management and related services

Data: sheet 20, column C, rows 15/16/17/19/22/23

Managing cloud services e.g. operations or service provisioning

Evaluating external cloud services and their respective costs

Tracking off-radar cloud spend in the business

Managing non-core business services, i.e. email

Developing a cloud application for the business

Managing the resilience and security of cloud services

34%

32%

31%

29%

23%

23%

Graph 5

IT decision makers that believe an adequate amount of time is spent

dealing with the increasing demands of compliance and regulation

Data: sheet 43, row 14, column C-K

0

10

20

30

40

50

60

70

80

53% 55%50%

62%56%

45%41%

72%

38%

UK France Germany Italy Nether-lands

Nordics Russia MiddleEast

EMEATotal

Graph 6

Headline 1: IT decision makers that believe smaller competitors can

more rapidly implement modern IT and react quicker to market changes




EMEATotal

Very threatened

Threatened

Concerned

46%

21%

6%

42%

14%

4%

42%

35%

5%

41%

24%

8%

44%

29%

12%

51%

17%

7%

60%

15%

5%

41%

8%

4%

46%

20%

0%



EMEATotal

55% 71% 52% 53% 59% 54% 51% 50% 46%

0 5 10 15 20 25 30 35

UPDATE!

£ £

Key Findings

Peer pressure: the demand for more

modern IT

Over two thirds (69%) of IT decision makers

(ITDMs) in EMEA state their departments are

under pressure from the CEO, CTO or board

to modernise IT within the next 12 months.

The race for change is on: this pressure is felt

across the whole of EMEA, particularly by IT

departments within Russia (85%), Sweden

(80%) and the Middle East (76%).

Those departments that are being tasked

with modernisation are specifically being told

to focus on reducing the cost of IT (50%),

increasing the mobility of the workforce (43%)

and moving more infrastructure to the cloud

(40%).

The priorities IT departments have been

tasked with when modernising IT

33%36%

Graph 1 Graph 2







Improved

responsiveness to

customers

Uplift in staff

productivity

Fewer complaints

from staff

Improved innovation


department

34%

33%

31%

26%

23%

1

2

3

4

5

Reduce cost of IT


workforce

Move more

infrastructure into

the cloud

Implement hybrid

cloud



cloud

50%

43%

40%

30%

28%

1

2

3

4

5


will increase

Graph 3



IT will result in




business

39%


more agile

competitors

Reduced staff

productivity

Graph 4










34%

32%

31%

29%

23%

23%

Graph 5




0

10

20

30

40

50

60

70

80

53% 55%50%

62%56%

45%41%

72%

38%



EMEATotal

Graph 6






EMEATotal

Very threatened

Threatened

Concerned

46%

21%

6%

42%

14%

4%

42%

35%

5%

41%

24%

8%

44%

29%

12%

51%

17%

7%

60%

15%

5%

41%

8%

4%

46%

20%

0%



EMEATotal

55% 71% 52% 53% 59% 54% 51% 50% 46%

0 5 10 15 20 25 30 35

UPDATE!

£ £

6


33%36%

Graph 1 Graph 2







Improved

responsiveness to

customers

Uplift in staff

productivity

Fewer complaints

from staff

Improved innovation


department

34%

33%

31%

26%

23%

1

2

3

4

5

Reduce cost of IT


workforce

Move more

infrastructure into

the cloud

Implement hybrid

cloud



cloud

50%

43%

40%

30%

28%

1

2

3

4

5


will increase

Graph 3



IT will result in




business

39%


more agile

competitors

Reduced staff

productivity

Graph 4










34%

32%

31%

29%

23%

23%

Graph 5




0

10

20

30

40

50

60

70

80

53% 55%50%

62%56%

45%41%

72%

38%



EMEATotal

Graph 6






EMEATotal

Very threatened

Threatened

Concerned

46%

21%

6%

42%

14%

4%

42%

35%

5%

41%

24%

8%

44%

29%

12%

51%

17%

7%

60%

15%

5%

41%

8%

4%

46%

20%

0%



EMEATotal

55% 71% 52% 53% 59% 54% 51% 50% 46%

0 5 10 15 20 25 30 35

UPDATE!

£ £

What is all this in aid of? Businesses anticipate

increased employee satisfaction (34%),

improved responsiveness to customers (33%)

and uplift in staff productivity (31%) as the

main benefits derived from more modern IT

infrastructure and resources.

The areas most likely to be impacted as IT

is modernised within organisations

Is this achievable? There’s a mix of confidence

throughout EMEA as to whether there is

enough allocated budget and resource to

achieve the task at hand. Some ITDMs are

confident they’ve got what is needed (75%

of German ITDMs and 63% of Italian ITDMs

think this is the case) although others are in

a less fortunate position (only a third of UK

ITDMs feel they have the required budget and

resources to modernise their IT).

What ITDMs in EMEA do have in common is

the recognition that an inability to effectively

modernise IT will detrimentally impact business

performance. 92% see at least one negative

implication stemming from this inability,

ranging from reduced staff productivity (40%)

to reduced likelihood of innovation across

all departments (38%) and increased cost

of management and maintenance of legacy

systems (36%).

With the mobile cloud era transforming how

businesses need to operate, bringing the

opportunity to innovate and work in new ways,

it should come as no surprise that ITDMs are

recognising the impact of not being able to

adapt and modernise.

33%36%

Graph 1 Graph 2







Improved

responsiveness to

customers

Uplift in staff

productivity

Fewer complaints

from staff

Improved innovation


department

34%

33%

31%

26%

23%

1

2

3

4

5

Reduce cost of IT


workforce

Move more

infrastructure into

the cloud

Implement hybrid

cloud



cloud

50%

43%

40%

30%

28%

1

2

3

4

5


will increase

Graph 3



IT will result in




business

39%


more agile

competitors

Reduced staff

productivity

Graph 4










34%

32%

31%

29%

23%

23%

Graph 5




0

10

20

30

40

50

60

70

80

53% 55%50%

62%56%

45%41%

72%

38%



EMEATotal

Graph 6






EMEATotal

Very threatened

Threatened

Concerned

46%

21%

6%

42%

14%

4%

42%

35%

5%

41%

24%

8%

44%

29%

12%

51%

17%

7%

60%

15%

5%

41%

8%

4%

46%

20%

0%



EMEATotal

55% 71% 52% 53% 59% 54% 51% 50% 46%

0 5 10 15 20 25 30 35

UPDATE!

£ £

7


A five month gap sitting between business and IT

Adding to the pressure ITDMs are feeling is the fact that two thirds (65%) believe an average time

lapse of five months exists between what the business wants and when IT can deliver it. This is

consistent throughout EMEA; in fact 80% of ITDMs in the UK think it’s the case. The ‘lag’ of IT

delivery behind business expectations rises to six months in the Netherlands and Nordics, and as

much as seven months in the Middle East.

Within the context of continued business competition, an ability to respond quickly to changing

market demand is paramount – any delay in IT delivery should be a concern for businesses.

This misalignment, predictably, has significant ramifications for the performance, competitiveness

and growth prospects of organisations. Specifically, ITDMs believe the five month time lapse will

directly lead to a reduced likelihood of innovation across all departments in the business (39%),

reduced staff productivity (36%) and loss of customers to more agile competitors (33%).

Notable implications IT decision makers believe the gap between

business and IT will result in

33%36%

Graph 1 Graph 2







Improved

responsiveness to

customers

Uplift in staff

productivity

Fewer complaints

from staff

Improved innovation


department

34%

33%

31%

26%

23%

1

2

3

4

5

Reduce cost of IT


workforce

Move more

infrastructure into

the cloud

Implement hybrid

cloud



cloud

50%

43%

40%

30%

28%

1

2

3

4

5


will increase

Graph 3



IT will result in




business

39%


more agile

competitors

Reduced staff

productivity

Graph 4










34%

32%

31%

29%

23%

23%

Graph 5




0

10

20

30

40

50

60

70

80

53% 55%50%

62%56%

45%41%

72%

38%



EMEATotal

Graph 6






EMEATotal

Very threatened

Threatened

Concerned

46%

21%

6%

42%

14%

4%

42%

35%

5%

41%

24%

8%

44%

29%

12%

51%

17%

7%

60%

15%

5%

41%

8%

4%

46%

20%

0%



EMEATotal

55% 71% 52% 53% 59% 54% 51% 50% 46%

0 5 10 15 20 25 30 35

UPDATE!

£ £

33%36%

Graph 1 Graph 2







Improved

responsiveness to

customers

Uplift in staff

productivity

Fewer complaints

from staff

Improved innovation


department

34%

33%

31%

26%

23%

1

2

3

4

5

Reduce cost of IT


workforce

Move more

infrastructure into

the cloud

Implement hybrid

cloud



cloud

50%

43%

40%

30%

28%

1

2

3

4

5


will increase

Graph 3



IT will result in




business

39%


more agile

competitors

Reduced staff

productivity

Graph 4










34%

32%

31%

29%

23%

23%

Graph 5




0

10

20

30

40

50

60

70

80

53% 55%50%

62%56%

45%41%

72%

38%



EMEATotal

Graph 6






EMEATotal

Very threatened

Threatened

Concerned

46%

21%

6%

42%

14%

4%

42%

35%

5%

41%

24%

8%

44%

29%

12%

51%

17%

7%

60%

15%

5%

41%

8%

4%

46%

20%

0%



EMEATotal

55% 71% 52% 53% 59% 54% 51% 50% 46%

0 5 10 15 20 25 30 35

UPDATE!

£ £

8


A fear of being overtaken

There is also a hint of David vs. Goliath within this EMEA picture of business and IT. The research

found that one in two (55%) IT decision makers recognise that smaller competitors can more rapidly

implement modern IT and therefore react quicker to market changes. This is a belief felt most strongly

in the UK, with 71% of ITDMs supporting the notion.

As a result, nearly three quarters (73%) of these respondents felt either concerned or threatened

by such smaller businesses. This sentiment rises to 86% in Denmark and 84% in Italy, and it’s not

just ITDMs that are recognising the competition – similar levels of ITDMs believe the leaders of their

organisations also feel threatened by these more agile smaller competitors.

IT decision makers that believe smaller competitors can more rapidly implement

modern IT and react quicker to market changes

IT decision makers that feel threatened or concerned by these smaller

competitors

33%36%

Graph 1 Graph 2







Improved

responsiveness to

customers

Uplift in staff

productivity

Fewer complaints

from staff

Improved innovation


department

34%

33%

31%

26%

23%

1

2

3

4

5

Reduce cost of IT


workforce

Move more

infrastructure into

the cloud

Implement hybrid

cloud



cloud

50%

43%

40%

30%

28%

1

2

3

4

5


will increase

Graph 3



IT will result in




business

39%


more agile

competitors

Reduced staff

productivity

Graph 4










34%

32%

31%

29%

23%

23%

Graph 5




0

10

20

30

40

50

60

70

80

53% 55%50%

62%56%

45%41%

72%

38%



EMEATotal

Graph 6






EMEATotal

Very threatened

Threatened

Concerned

46%

21%

6%

42%

14%

4%

42%

35%

5%

41%

24%

8%

44%

29%

12%

51%

17%

7%

60%

15%

5%

41%

8%

4%

46%

20%

0%



EMEATotal

55% 71% 52% 53% 59% 54% 51% 50% 46%

0 5 10 15 20 25 30 35

UPDATE!

£ £

33%36%

Graph 1 Graph 2







Improved

responsiveness to

customers

Uplift in staff

productivity

Fewer complaints

from staff

Improved innovation


department

34%

33%

31%

26%

23%

1

2

3

4

5

Reduce cost of IT


workforce

Move more

infrastructure into

the cloud

Implement hybrid

cloud



cloud

50%

43%

40%

30%

28%

1

2

3

4

5


will increase

Graph 3



IT will result in




business

39%


more agile

competitors

Reduced staff

productivity

Graph 4










34%

32%

31%

29%

23%

23%

Graph 5




0

10

20

30

40

50

60

70

80

53% 55%50%

62%56%

45%41%

72%

38%



EMEATotal

Graph 6






EMEATotal

Very threatened

Threatened

Concerned

46%

21%

6%

42%

14%

4%

42%

35%

5%

41%

24%

8%

44%

29%

12%

51%

17%

7%

60%

15%

5%

41%

8%

4%

46%

20%

0%



EMEATotal

55% 71% 52% 53% 59% 54% 51% 50% 46%

0 5 10 15 20 25 30 35

UPDATE!

£ £

9


A perceived talent deficit

If these are the problems that are hitting

businesses hard in EMEA, then what do

ITDMs believe are the next steps to resolve

them? The misalignment between business

and IT needs to be addressed as a priority,

as organisations grapple with the new era of

technology and look to benefit from it.

When asked what would be essential

to closing the gap, ITDMs cited further

investment (61%) and becoming closer

aligned with business objectives (58%). They

also, however, identified the need to recruit

more skilled talent (57%) as being key, as well

as highlighting the increased prominence

of the CIO on the board (30%) and the

creation of a Digital Officer role (30%) –

demonstrating the need to have the right

people in place to ensure IT fully supports

organisations. Sweden (66%), Russia (64%)

and Norway (64%) in particular believe

skilled talent is critical.

33%36%

Graph 1 Graph 2







Improved

responsiveness to

customers

Uplift in staff

productivity

Fewer complaints

from staff

Improved innovation


department

34%

33%

31%

26%

23%

1

2

3

4

5

Reduce cost of IT


workforce

Move more

infrastructure into

the cloud

Implement hybrid

cloud



cloud

50%

43%

40%

30%

28%

1

2

3

4

5


will increase

Graph 3



IT will result in




business

39%


more agile

competitors

Reduced staff

productivity

Graph 4










34%

32%

31%

29%

23%

23%

Graph 5




0

10

20

30

40

50

60

70

80

53% 55%50%

62%56%

45%41%

72%

38%



EMEATotal

Graph 6






EMEATotal

Very threatened

Threatened

Concerned

46%

21%

6%

42%

14%

4%

42%

35%

5%

41%

24%

8%

44%

29%

12%

51%

17%

7%

60%

15%

5%

41%

8%

4%

46%

20%

0%



EMEATotal

55% 71% 52% 53% 59% 54% 51% 50% 46%

0 5 10 15 20 25 30 35

UPDATE!

£ £

10


Summary

Our research shows that, across EMEA,

organisations are suffering from the gap

between what the business wants and when IT

can deliver it. This carries direct implications

for the business, impacting productivity,

innovation and the ability to compete. It also

ties into the recognition that IT needs to

completely transform its role, to become an

instrumental part in defining the strategy of

organisations and proactively drive innovation

to keep ahead of the game.

VMware has already helped IT leverage

virtualization to drive efficiencies and improve

IT’s ability to meet business expectations. In

fact, we calculate that our customers, through

adoption of VMware virtualization solutions,

realise a net saving of $10B annually*. Now,

in the mobile cloud era, IT is faced with new

challenges and opportunities, and VMware’s

journey to the Software-Defined Enterprise is

designed to offer a step-by-step transition to

thrive in response to these.

As companies make this transition, there are a

number of important steps to consider:

• Instigate a dialogue with the broader

business. If direct conversations are not

being had with those outside of IT, to

identify where the greatest savings and

impact can be made, then IT cannot help

in a meaningful way. There needs to be

a conscious alignment between business

and IT goals to deliver the outcome that

matters.

• Start small, stay strategic. Identify the

‘early wins’ within the business; those

who will benefit from change quickly and

demonstrate immediate success. Once

you show value, you’ll be in good position

to build trust, secure further funding and

momentum, and deliver impact on an

achievable scale.

• Recognise that IT is no longer just about

control and constraint. It’s responsible

for creating an infrastructure and culture

where risk can be managed in the right

way to encourage new ways of working.

Organisations should be looking to

transition to a model where at least 50% of

IT spend is dedicated to innovation, rather

than maintenance.

• Remember, this is never just about buying

software. It is people, mindsets and entire

operational models that are being changed.

The IT function must evolve to become

truly service-centric, to think of itself as

a service provider. Without this, the ‘IT

department’ of today is at real risk of

becoming irrelevant tomorrow.

Ultimately, we are in one of the most critical

times of IT over the last thirty years. The mobile

cloud era has completely transformed the way

businesses operate and is disrupting the role

IT must play within organisations. Companies

rise and fall with these waves of innovation

and the successful businesses will be those

that can adapt fastest. Every day, emergent

and more agile companies are challenging and

overtaking established players burdened with

legacy systems. Within this context, IT will be

* Source: VMware Journey Benchmark Survey, 4th Wave 2013

11


instrumental in taking back the advantage

and driving competitive edge in the race

for change. It’s VMware’s objective to help

organisations make a seamless transition to

become a Software-Defined Enterprise and

radically simplify their IT environment.

About VMware

VMware is the leader in virtualization and

cloud infrastructure solutions that enable

businesses to thrive in the Cloud Era.

Customers rely on VMware to help them

transform the way they build, deliver and

consume Information Technology resources

in a manner that is evolutionary and based on

their specific needs. With 2013 revenues of

$5.21 billion, VMware has more than 500,000

customers and 75,000 partners. The

company is headquartered in Silicon Valley

with offices throughout the world and can be

found online at www.vmware.com.

About Vanson Bourne

Vanson Bourne is an independent specialist

in market research for the technology sector.

Their reputation for robust and credible

research-based analysis, is founded upon

rigorous research principles and the ability to

seek the opinions of senior decision makers

across technical and business functions, in all

business sectors and all major markets.

For more information, visit

www.vansonbourne.com

VMware, Inc. 3401 Hillview Avenue Palo Alto CA 94304 USA Tel 877-486-9273 Fax 650-427-5001 www.vmware.com

Copyright © 2014 VMware, Inc. All rights reserved. This product is protected by U.S. and international copyright and intellectual property laws. VMware products are covered by one or more patents listed athttp://www.vmware.com/go/patents. VMware is a registered trademark or trademark of VMware, Inc. in the United States and/or other jurisdictions. All other marks and names mentioned herein may be trademarks of their respective companies. Item No: vmware