growing up hybrid: accelerating digital transformation

Growing up hybrid:Accelerating digital transformationIBM Center for Applied Insights Study

Susanne Hupfer

Hybrid cloud is the de facto state of IT

To understand how hybrid cloud is impacting organizations, we surveyed 500 IT decision makers worldwide who are blendingtraditional and cloud infrastructures

Growth markets surveyed: China, India, Brazil. Mature markets surveyed: USA, UK, France, Germany, Denmark, Finland, Norway, Sweden, Japan, Australia. To smooth possible geographic distortions, responses were weighted based on an IBM assessment of each country’s total IT spend.

Hybrid cloud is the new norm

2

The hybrid blend is changing as the use of cloud increases

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

100%

2-3 years ago Currently 2-3 years from now

Traditional IT

Public Cloud

Private Cloud

report they will always have a blend of traditional IT and cloud

7 in 10

Frontrunners are gaining competitive advantage through hybrid cloud and are managing their environment in an integrated, comprehensive fashion for high visibility and control (e.g., through a single dashboard)

Challengers are on the journey toward competitive advantage, but haven’t fully achieved unified management of their hybrid cloud environment

Chasers are not yet using hybrid cloud to drive competitive advantage and are in the early stages of gaining integrated control over their hybrid environment

Gainingcompetitive advantagethrough hybrid cloud

Man

agem

ent o

f hy

brid

clo

ud

Limited

Comprehensive

Low agreement

Chasers 22%

Leading enterprises are driving competitive advantage

3

... and gaining comprehensive control of their hybrid environments

High agreement

Challengers 52%

Frontrunners 26%

4

86% of Frontrunners say: Hybrid cloud gives us greater ROI than either an all-traditional or all-cloud environment

88% of Frontrunners say: Hybrid cloud is crucial to our business strategy and success

... and they’re using hybrid cloud to transform their organizations

Frontrunners believe hybrid cloud is essential

Frontrunners achieve better business outcomes with hybrid cloud

5

85% of Frontrunners report that hybrid cloud is accelerating digital transformation in their organization

They’re going beyond efficiency, using hybrid to forge their digital futures

EFFICIENCY & PRODUCTIVITY

DIGITAL BUSINESS

NEXT-GENERATIONINITIATIVES

Hybrid enables cost reduction and efficiency gains

Hybrid enables new business growth

Hybrid enables disruption

6

Frontrunners outpace others on efficiency and productivity

Chasers Challengers Frontrunners Frontrunnersvs. Chasers

Cost reduction by shifting fixed costs to variable costs 1.7xMaximizing value from existing traditional infrastructure 1.9xImproved productivity 1.8xImproved business processesand workflows 1.8xScalability 1.5xResiliency 1.4x

51%

50%

46%

55%

43%

46%

66%

69%

72%

64%

64%

64%

75%

75%

% of organizations achievingoutcomes with hybrid cloud:

85%

82%

82%

81%

7

Frontrunners are also ahead on achieving business growth

... and capturing new markets with hybrid cloud


Product/service innovation 2.0xExpansion into new markets, customer segments and offerings 2.2x

Expanded ecosystem 2.1x

Market responsiveness 2.1xDigital services 4.0xAssembly of new productsby composing APIs 4.3x

12%

42%

38%

8%

36%

37%

28%

64%

50%

18%

59%

70%

48%

34%

76%

82%

79%

79%

% of organizations achievingoutcomes with hybrid cloud:

8

Frontrunners use hybrid cloud to jump-start next-gen initiatives


Commercializing insights 2.9xCognitive computing 5.1x

Internet of Things 1.7x

14%

21%

7%

16%

21%

15%

40%

36%

36%

% using hybrid cloud to enable:

They use hybrid cloud to keep them on the leading edge of emerging technologies

Frontrunners don't always think hybrid is easy

9

70% of Frontrunners say that their hybrid environment is causing them greater security concerns

77% of Frontrunners report that hybrid cloud introduces greater IT management complexity into their IT environment

How are they overcoming these challenges and gaining more value than others?

They're very likely to cite management complexity and security as concerns

How do Frontrunners thrive?

Deliberate and comprehensive hybrid strategy

Hybrid transforms culture

Advanced hybrid management

Improved security & data protection

Frontrunners are more intentional about their hybrid strategy


Have an enterprise-widestrategy for hybrid 3.0xBelieve hybrid is essential to their mobile initiatives 1.8x

19%

46%

35%

69%

57%

83%

Comprehensive strategy

12

Frontrunners bring both IT and business leaders to the table


Drives more collaboration between IT and Line of Business 1.7x

Reduces shadow IT 2.1xIncreases role of businessleaders in IT decision making 1.7xIncreases CIO's role as anadvisor to the business 1.6x

44%

49%

38%

53%

59%

47% 59% 73%

76%

81%

85%68%

Hybrid transforms culture

Frontrunners are better at managing hybrid environments


Believe open technologies are essential for portability and interoperability

2.1xManage a growing number of platforms with hybrid 1.7xHighly integrated service management 2.6xAdvanced automation to manage hybrid 2.9xPrescriptive or predictive real-time analytics to manage hybrid 5.1x

Advanced hybrid management

40%

50%

60%

32%

26%

53%

51%

10% 21% 51%

84%

82%

76%

85%

65%

Frontrunners are achieving better security and data protection


Hybrid helps ensure availability and access to critical data 1.6xHybrid improves security and reduces risk 1.6xHybrid helps meet compliance requirements 1.6xHybrid helps achieve data protection 2.4x

Improved security & data protection

38%

50%

50%

49% 62%

25% 46% 61%

63%

73%

78%

79%

The Frontrunner Playbook

Think big picture

Move from vision to reality

Advance digital innovation

Shape the future

Collaborate across the business to develop a comprehensive hybrid strategy that can take advantage of existing infrastructure investments and the flexibility of cloud.

Apply advanced technologies to better manage complexity and secure hybrid environments.

Move beyond foundational gains of efficiency and productivity to high-value digital business benefits such as faster innovation and increased customer engagement.

Pilot emerging technologies and next-generation initiatives that establish differentiation across industries and disrupt markets.

16

ibm.com/ibmcai/hybrid-cloud

Growing up hybrid?Learn from the leaders.

Notices and Disclaimers

17

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