hybrid cloud leaders are accelerating digital transformation

© 2016 IBM Corporation

Growing up hybrid Accelerating digital transformation


Hybrid cloud is the de facto state of IT.

Leading organizations are blending

traditional and cloud infrastructures to

achieve better business outcomes—from

reduced costs and improved productivity to

business growth and digital transformation.

What’s more, they’re using hybrid cloud to

springboard to next generation activities that

allow them to disrupt and capture new

markets.


To understand how hybrid cloud is

impacting organizations, we

surveyed 500 IT decision makers

worldwide who are blending

traditional 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 connection of traditional IT systems to one or more clouds and/or connection of one or more clouds to other clouds.


Hybrid cloud is the new norm—the hybrid blend is changing as the use of cloud increases

4

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


Leading enterprises are out ahead, driving competitive advantage and gaining comprehensive control of their hybrid environments

5

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

Gaining competitive advantage

through hybrid cloud

Man

ag

em

en

t o

f

hyb

rid

clo

ud

Limited

Comprehensive

Low

agreement

High

agreement

Chasers Challengers Frontrunners

Chasers

22%

Challengers

52%

Frontrunners

26%


Frontrunners believe hybrid cloud is essential and provides greater ROI

6

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 achieve better business outcomes with hybrid cloud – going beyond efficiency gains and using it to forge their digital futures

7

85% of Frontrunners

report that hybrid cloud is

accelerating digital

transformation in their

organization

EFFICIENCY & PRODUCTIVITY

DIGITAL BUSINESS

NEXT-

GENERATION

INITIATIVES

HYBRID ENVIRONMENT

Comprehensive hybrid cloud integration and management

Hybrid cloud enables cost reduction and efficiency gains

Hybrid cloud enables new business growth

Hybrid cloud enables disruption


Frontrunners outpace other implementers on efficiency and productivity with hybrid cloud

8

Chasers Challengers Frontrunners Frontrunners

vs. Chasers

Cost reduction by shifting fixed

costs to variable costs 1.7x

Maximizing value from existing

traditional infrastructure 1.9x

Improved productivity 1.8x

Improved business processes

and workflows 1.8x

Scalability 1.5x

Resiliency 1.4x

51%

50%

46%

55%

43%

46%

66%

69%

72%

64%

64%

64%

75%

75%

% of organizations achieving

outcomes with hybrid cloud:

85%

82%

82%

81%


Hybrid cloud enables faster deployment while cutting costs

9

Headquartered in Norway, with offices around the

world, Cxense ASA provides real-time analytics, data

management and personalization technology to over

6000 media, financial and consumer sites around the

world. To expand globally, Cxense needed a hosting

platform that could scale efficiently while protecting

customer data.

Cxense implemented a hybrid cloud solution that

allowed them to expand data centers to other locations

in Europe and Japan, while also using the flexibility of

cloud to quickly and easily support growing demand.

As a result, Cxense achieved 98 percent faster

deployment with provisioning reduced from three

months to less than a day, allowing the company to

expand its global presence and improve agility.1


Frontrunners are also ahead on achieving business growth and capturing new markets with hybrid cloud

10


vs. Chasers

Product/service innovation 2.0x

Expansion into new markets,

customer segments and offerings 2.2x

Expanded ecosystem 2.1x

Market responsiveness 2.1x

Digital services 4.0x

Assembly of new products

by composing APIs 4.3x

12%

42%

38%

8%

36%

37%

28%

64%

50%

18%

59%

70%

48%

34%

76%

82%

79%

79%

% of organizations achieving

outcomes with hybrid cloud:


Russia’s renowned Mariinsky Theatre was looking to

expand its global reach by live-streaming opera, ballet

and orchestra performances. The quality of the

streamed content was a critical priority.

By connecting its existing infrastructure to a scalable,

high-performance cloud hosting solution, the theater

was able to reach new audiences and accommodate a

fluctuating number of viewers on its digital content-

streaming platform.

As a result of this hybrid cloud deployment, the theater

was able to cut capital expense by US$20,000, boost

performance by 30 percent and accelerate

infrastructure deployment by 99 percent.2

Hybrid cloud paves path for digital entertainment

11


Frontrunners use hybrid cloud to jump-start next-generation initiatives that keep them on the cutting edge

12


vs. Chasers

Commercializing insights 2.9x

Cognitive computing 5.1x

Internet of Things 1.7x

14%

21%

7%

16%

21%

15%

40%

36%

36%

% using hybrid cloud to enable:


Hybrid cloud is a common enabler of strategic next-generation initiatives

13

Commercializing insights from visual data

Switzerland-based nViso developed a facial

imaging solution that captures and

deciphers human emotions in real time,

using video streams from webcams, mobile

devices and in-store cameras.

Recognizing an opportunity to revolutionize

customer sentiment analysis in the retail

sector, nVisio adopted a hybrid cloud

solution to offer new ways

to analyze real-time data assets extracted

from videos of customers.

With the flexibility to run facial imaging

solutions in hybrid environments, nViso’s

clients can work with customer data

wherever it is stored and gain insight into

how customers’ physical reactions affect

their purchasing behavior.3

Applying cognitive insights

Finland’s largest airline, Finnair, aimed to

improve customer experience by offering

new digital services, while also managing

costs and growing revenue.

The airline leveraged the flexibility of a

hybrid cloud platform to integrate new cloud

services with its existing infrastructure. As

part of its digital transformation, it started

using cognitive capabilities to improve

employee productivity by enabling agents to

more quickly find responses to customer

needs.

With implementation underway, Finnair

hopes to gain operational efficiency, reduce

complexity and establish a foundation to

support new growth initiatives.4

Connecting homes and businesses with

Internet of Things smart data

Shaspa, a leading global vendor of smart

solutions for both home and office,

collects sensor data from residential

and commercial spaces. In order to

enable sophisticated analytics on that

data, information needs to be stored and

processed seamlessly.

By building a hybrid cloud-based IoT

platform to connect and control a variety

of environments, Shaspa was able to

connect building automation systems,

household appliances and mobile

platforms from hundreds of global

manufacturers.

As a result, Shaspa can deliver real-time

intelligent analytics to optimize living and

working conditions while reducing costs

through smart automation.5


Frontrunners don't always think hybrid is easy—they're very likely to cite management complexity and security as concerns

14

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?


How do Frontrunners thrive?

15

Deliberate and comprehensive

hybrid strategy

Hybrid transforms

culture

Advanced hybrid

management

Improved security

& data protection


Frontrunners are more intentional about their hybrid cloud strategy and bring both IT and business leaders to the table

16


vs. Chasers

Have an enterprise-wide

strategy for hybrid 3.0x

Believe hybrid is essential to

their mobile initiatives 1.8x

Drives more collaboration

between IT and Line of Business 1.7x

Reduces shadow IT 2.1x

Increases role of business

leaders in IT decision making 1.7x

Increases CIO's role as an

advisor to the business 1.6x

44%

19%

49%

46%

38%

53%

35%

69%

59%

57%

Hybrid transforms culture

47% 59% 73%

76%

81%

85%

83%

68%

Comprehensive

strategy



vs. Chasers

Believe open technologies are

essential for portability and

interoperability 2.1x

Manage a growing number of

platforms with hybrid 1.7x

Highly integrated service

management 2.6x

Advanced automation

to manage hybrid 2.9x

Prescriptive or predictive real-time

analytics to manage hybrid 5.1x

Hybrid helps ensure availability

and access to critical data 1.6x

Hybrid improves security

and reduces risk 1.6x

Hybrid helps meet compliance

requirements 1.6x

Hybrid helps achieve

data protection 2.4x

Frontrunners are better at managing security and the complexity of growing hybrid environments

17

Advanced hybrid

management

Improved security

& data protection

38%

40%

50%

50%

50%

49%

60%

62%

25% 46% 61%

32%

26%

53%

51%

10% 21% 51%

84%

82%

76%

63%

73%

78%

85%

65%

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.

• Are your IT and business

leaders joining forces on

the organization’s needs?

• Does your strategy inform

clear implementation and

integration plans for your

hybrid environment?

Apply advanced

technologies to better

manage complexity and

secure hybrid environments.

• Can predictive or

prescriptive analytics

provide insights for

improving the operation of

your hybrid environment?

• Are you using open

technologies to increase

interoperability and

portability across your

hybrid environment?

Move beyond foundational

gains of efficiency and

productivity to high-value

digital business benefits

such as faster innovation

and increased customer

engagement.

• How can hybrid

capabilities help you

accelerate development

of digital services to grow

your business?

• How are you expanding

and connecting your

ecosystem of partners

and customers?

Pilot emerging technologies

and next-generation

initiatives that establish

differentiation across

industries and disrupt

markets.

• Can hybrid cloud enable

your foray into cognitive

computing to create

intelligent systems?

• Can hybrid cloud help

spearhead your IoT

initiatives to connect

devices and data for

business gain?

18 © 2016 IBM Corporation


APPENDIX

19


Leaders gain competitive advantage through hybrid cloud, enabling digital transformation and next-generation initiatives • 70% of hybrid implementers report they will always have a blend of traditional IT and cloud

• 9 in 10 leaders say hybrid is crucial to their strategy and gives them greater ROI than

all-traditional or all-cloud environments

• 85% of leaders report that hybrid cloud is accelerating digital transformation in their

organization

20

How do leaders thrive?

Deliberate and comprehensive

hybrid strategy

3x more likely to have an enterprise-wide

hybrid strategy

Advanced hybrid management

5x more likely to use advanced prescriptive

and predictive real-time analytics

Hybrid transforms culture

2x more likely to report hybrid cloud helps

reduce shadow IT

Improved security & data protection

Over 2x more likely to say hybrid cloud

eases data protection

Source: IBM Center for Applied Insights study “Growing up Hybrid: Accelerating digital transformation”

Leaders gain more value from

hybrid cloud—improving

productivity, reducing costs and

maximizing traditional IT

Leaders are 4x more likely to be

using hybrid cloud to launch new

digital services

Leaders are 5x more to be using

hybrid cloud to drive initiatives in

cognitive computing

Efficiency & productivity Digital business Next-gen initiatives


We surveyed 500 hybrid cloud implementers worldwide to understand how hybrid is impacting their organizations

21

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.

Respondent distribution (spanning 13 countries and 23 industries)

Mature markets

71%

Growth markets

29%

Geo

C-Level 28%

IT Executive 20%

IT Director 25%

IT Manager 27%

IT Role

< 1000 27%

1,000-2,499 20%

2,500-4,999 18%

5,000-9,999 15%

10,000+ 20%

Organization size (no. of employees)

Hybrid cloud is the connection of traditional IT systems to one or more clouds and/or connection of one or more clouds to other clouds.


Sources

1 “Cxense agilely delivers online services to customers worldwide witha SoftLayer hybrid

cloud hosting solution,” http://www-

03.ibm.com/software/businesscasestudies/us/en/corp?synkey=I327737E25231Z82

2 “Historic Russian musical theater entertains new global audiences using IBM Hybrid Cloud, ”

https://medium.com/@ibmcloud/historic-russian-musical-theater-entertains-new-global-

audiences-using-ibm-hybrid-cloud-908456abf987#.z5kctaba6

3 “Shaspa: Enabling the internet of things for smarter environments,” http://www-

01.ibm.com/common/ssi/cgi-bin/ssialias?htmlfid=IMC14898WWEN&appname=skmwww

4 “Finnair uses IBM industry expertise, cloud and services to drive digital transformation,

support expansion,” https://www-03.ibm.com/press/us/en/pressrelease/47627.wss

5 “nViso: Using real-time facial imaging to deliver deep insights into customer sentiment,”

http://www-01.ibm.com/common/ssi/cgi-

bin/ssialias?infotype=PM&subtype=AB&htmlfid=YTC03822USEN

22

http://www-03.ibm.com/software/businesscasestudies/us/en/corp?synkey=I327737E25231Z82



https://medium.com/@ibmcloud/historic-russian-musical-theater-entertains-new-global-audiences-using-ibm-hybrid-cloud-908456abf987.z5kctaba6

























http://www-01.ibm.com/common/ssi/cgi-bin/ssialias?htmlfid=IMC14898WWEN&appname=skmwww





https://www-03.ibm.com/press/us/en/pressrelease/47627.wss



http://www-01.ibm.com/common/ssi/cgi-bin/ssialias?infotype=PM&subtype=AB&htmlfid=YTC03822USEN





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