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Next-Generation Datacentres Secure, Resilient and Agile Platforms for Digital TransformationAn IDC InfoBrief | April 2018

Digital Disruption: Upending the Business Status QuoDigital disruption has been a threat to traditional business models and an incredible opportunity to strengthen customer relationships and flatten organisational structures. While digital transformation (DX) is widely recognised as the key to overcoming the challenges to redefine business, many still struggle to progress in their transformational journey.

This IDC InfoBrief takes a closer look at the importance of evolving operational IT infrastructures for successful DX.

2

is a must-do for every organisation, but many are struggling with the “how to”.

of enterprises find that DX is already helping them to transform aggressively to garner greater market share and higher profit margin

Escalating cost of operations

Consumers’ buying/consuming patterns changing

New government regulations

New businessmodels

New competitors

Lack of relevant skill sets and managing

talent/workforce

of enterprises do not have a DX strategy but recognise it is important for them moving forward

Source: IDC Asia/Pacific C-suite Barometer Research 2017

TO P DX D R I V E R S

DX drivers are directly tied to cost savings, new revenue streams and return on assets/equity.

8% 35%

Operational Innovation Key to Becoming Digitally NativeThe inability to create new business models is one of the top DX challenges IT and business leaders face today. How can Asia-Pacific enterprises compete with digital native players, the born-in-the-cloud companies which are at the forefront of disrupting the market?

Organisations seeking to become digital native enterprises must undergo transformation and attain the 5 masteries of DX:

3

Source: IDC Asia/Pacific C-suite Barometer Research 2017

of enterprises cite organisational change management as a challenge and they have yet to effectively transform digitally

of enterprises do not have the budget to invest in a holistic DX programme

of enterprises do not have the ability to navigate the complexities and lead in the fast-paced DX economy

Successful transformation begins with moving away from legacy systems toward agile IT.36%

28%

40%13%

Operational innovation to achieve scalability and agility

By 2020, heavy workload demands of next-generation applications and new IT architectures in critical business facilities will have forced

of enterprises to modernise their

Omni-ExperienceTransformation

LeadershipTransformation

WorksourceTransformation

Operating ModelTransformation

InformationTransformation

DIGITALTRANSFORMATION

datacentre assets through updates to existing facilities and/or the deployment of new facilities

4

Source: IDC 2017 Asia/Pacific (Excluding Japan) IT Services End-user SurveySource: IDC Asia/Pacific (Excluding Japan) Enterprise Infrastructure and Datacentre Survey, 2017

Workload rationalisation and automation are part of the next-generation datacentre imperative to deliver new services efficiently and securely.

IDC predicts that by 2019of organisations will have initiated

efforts to rationalise workloads and accelerate the adoption of next-generation cognitive/AI, machine learning, and

augmented reality, necessitating drastic changes to infrastructure design and placement as well as IT operations models

C I O ’ S AG E N DA

O P E R AT I O N A LE XC E L L E N C E

AG I L EE C O SYS T E M

S E C U R I T Y &G OV E R N A N C E

S E C U R EE N V I R O N M E N T

B U S I N E S SI N N OVAT I O N

R E S I L I E N TI N F R A S T R U C T U R E

DATAC E N T R E I M P E R AT I V E S

Investing in automation and system management software tools to boost efficiency and tie datacentre spend to business value is a top IT priority for Asian businesses.

AvailabilityProductivity

Cost

RichnessSoftware-defined

Smart

CustomerProductProcess

Business Continuity/Disaster RecoveryScalability

Interconnectivity

PostureRisk

Compliance

Multi-layeredSoftware-defined

Compliance

The CIO’s Brief: Next-Generation Datacentres to Meet Business Priorities

5

Source: IDC Cloudview Survey 2016 & 2017 (N = 2266 & 2321)

A Multicloud Datacentre Environment for Foreseeable FutureCIOs now have a wide range of enterprise infrastructure environment options. While cloud has arrived, the on-premises datacentre is not going away soon. As hybrid IT becomes the standard environment for most organisations, the ability to support multicloud operations across all datacentre environments is critical.

16.4%*

PUBLIC CLOUD18.5%*

47.2%*

HOSTED PRIVATECLOUD

19.3%*19.3%*

TRADITIONALOUTSOURCEDTRADITIONALOUTSOURCED

12.3%*

ENTERPRISE PRIVATE CLOUD

33.5%*

TRADITIONALIN-HOUSE

18.5%*

PUBLIC CLOUD18.8%*

HOSTED PRIVATECLOUD

21.8%*21.8%*

TRADITIONALOUTSOURCEDTRADITIONALOUTSOURCED

15.2%*

ENTERPRISE PRIVATE CLOUD

25.6%*

TRADITIONALIN-HOUSE

20192016

Non-Cloud

PRO

VIDER

SITE: 59.1%*

CU

STOM

ER SITE: 40.9%

*

PRO

VIDER

SITE: 54.1%*

CU

STOM

ER SITE: 45.9%

*52.8%*

Cloud

52.5%*

Non-Cloud

47.5%*

Cloud

External Cloud: 34.9% External Cloud: 37.3%

At least 40% spending will be cloud-based

Reaching over 50% of all IT infrastructure, software services and technology spending

40% 50%BY 2 0 1 8 BY 2 0 2 0T H E R OA D TO D I G I TA L B U S I N E S S I S M U LT I C LO U D

A N D T H R O U G H A N E X T- G E N E R AT I O N DATAC E N T R E

All of this digital business capability needs to be supported and delivered by the datacentre

Numerousapplications

Digitalbusiness

Wide variety of data sources and sinks

Interconnection with diverse external IT environments

Dynamic scaling to meet variable

demand

Rapidprovisioning

and low latency delivery of

services

6

Digital Transformation Requires Maturation of Redundant DatacentreN E X T- G E N E R AT I O N DATAC E N T R E A D O P T I O N I S A S I G N O F A M AT U R I N G DATAC E N T R E M A R K E T

Archaic datacentre

Static datacentre

Transforming datacentre

Flexible datacentre

Dynamic datacentre

Datacentre portfolio focuses on maintaining dispersed set of legacy datacentres stemming from past acquisitions and geographical expansion

Datacentre decisions are driven by cost reduction and consolidation while meeting SLAs for hardware availability and response time

CIO is able to consider the use of of both internal and service provider facilities to enable more agile delivery of a growing range of virtualised applications

Datacentre decisions are based upon the ability to quickly deliver and scale highly secure and resilient pools of transactions, content, and analytic resources anywhere in the world

The IT organisation is the primary service provider and facilitator of secure, cost-effective, and resilient compute, data and network resources used to develop new digital business services

Business outcome: Business leaders think of datacentres as the buildings where their IT organisations’ warehouse siloed IT assets and datasets

Business outcome: Business leaders perceive datacentres as expensive, especially designed facilities where IT deploys and administers legacy, mission-critical applications

Business outcome: Business leaders recognise that agility in deployment of IT plays critical role in speeding development and delivery of new data intense and customer-facing applications

Business outcome: Business leaders expect datacentres leaders to accelerate DX

Business outcome: Business leaders consider access to a dynamic set of datacentre resources distributed around the globe to be the key foundation for enabling business and industry disruptions

Source: IDC DC.DX Datacentre Vision MaturityScape

C O N S O L I DAT E / V I R T U A L I S E

A U TO M AT E

O R C H E S T R AT E

F E D E R AT E

Source: 2017 IDC Asia/Pacific (Excluding Japan) Enterprise Infrastructure and Datacentre Survey (n=1102)

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Constraints on Next-Generation Datacentre Transformation

IDC predicts that by 2019 of digital services will fail to meet desired customer adoption levels as providers of such services are unable to

effectively monitor and respond quickly to performance, utilisation, and cost degradation across their diverse IT resource pools

S E RV I C E A S S U R A N C E :

R AT E O F V I R T U A L I Z AT I O N

RA

TE

OF

BIZ

CH

AN

GE

C O N S O L I DAT E V I R T U A L I Z E A U TO M AT E OR C H E ST R AT E F E D E R AT E

Lack specialised in-house

capabilities

Significant upfront costs

Need for business continuity/disaster recovery support

FacilityDesign

LowerCAPEX

Mobility IntegratedTelemetry

SelfService

Lifecycle

Management

Application

Optimised

Monitor and

Measure

ResourceBalancing

Simplify

Adminstration

Lower

OPEX

Metering &

Chargeback

Lower CAPEX

& OPEX

of enterprises cite the cost of building a new datacentre as a key challenge

22%

Source: IDC Asia/Pacific (Excluding Japan) Enterprise Infrastructure and Datacentre Survey, IDC , 2017, n=1102

8

Drivers for Datacentre and Infrastructure ServicesDatacentre infrastructure services include technology consulting, strategy and planning, integration and implementation, and support. These activities are provided across security, networking, server and storage domains.

M O D E R N I S AT I O N O F I T I N F R A S T R U C T U R E TO AC H I E V E AG I L I T Y A N D S C A L A B I L I T Y

C O M P R E H E N S I V E S E C U R I T Y F O R P R OT E C T I N G I T A N D P H YS I C A L A S S E T S

I M P R OV E I N F R A S T R U C T U R E P E R F O R M A N C E

of enterprises to invest in converged/disaggregated compute infrastructure

of enterprises to outsource more workloads to a service provider

of enterprises to improve internal processes

of enterprises to invest in software tools to improve infrastructure management

of enterprises to invest in advanced critical infrastructure (power and cooling equipment)

of enterprises to adopt software-defined compute/network/storage architectures

of enterprises to move more infrastructure to a colocation provider

20% 20%

52%

42%

33%

30% 28%

N E T W O R KS E RV I C E S

S E C U R I T YS E RV I C E S

S E RV E R &S TO R AG E S E RV I C E S

S U P P O R TS E RV I C E S

DATACENTREINFRASTUCTURE

SERVICE

9

Management of Datacentres Remain a Key Priority

Source: 2017 IDC Asia/Pacific (Excluding Japan) Enterprise Infrastructure and Datacentre Survey (n=1102)

Colocation or managed hosting services is a top datacentre management need in the next 12-24 months

TO P K E Y R E A S O N S F O R D E C I D I N G TO I N C R E A S E T H E C A PAC I T Y O F T H E I R C O LO C AT I O N DATAC E N T R E

2 2 %

1 4 %

1 4 %

1 2 %

1 1 %

9 %

9 %

8 %

Cost of building a new datacentre is too high

Need space in a short amount of time

To reduce IT staffing

Need additional bandwidth into and out of the datacentre

Lack of internal skill sets

Assistance in overhauling the entire network architecture

Applications/services are customer/Internet facing

Need multiple diverse bandwidth providers

10

What are Technology Buyers Looking for in a Datacentre Service Provider?

Source: IDC Asia/Pacific (Excluding Japan) Enterprise Infrastructure and Datacentre Survey, 2017, n=1102

Colocation is the centrepiece of a multicloud environment. Enterprises need to upgrade their existing datacentre infrastructure in order to run next-generation applications and digitally transform. Colocation provides the efficiency, security, reliability, agility and scalability required for enterprises to digitally transform.

KEY SELECTIONCRITERIA

42%

42%

36%

46%

54%

C LO U DC A PA B I L I T E S

D E S I G N &E N G I N E E R I N G O F

DATAC E N T R E

I N D U S T RYK N O W L E D G E

N E T W O R KO R C H E S T R AT I O N

C A PA B I L I T I E SLO W E RO P E X

Colocation provider selection criteria are maturing. While factors such as features of the physical facility, associated security, basic network connectivity, and basic pay-as-you-go (PAYG) models are still relevant, CIOs are also factoring in the internal ecosystem of the datacentre and management capabilities.

11

Selecting the Right Datacentre Services Provider

Agility Resilience Security and ComplianceTop of line, multilayer physical and digital security credentials as well as:

Ecosystem with end-to-end capability spanning:

Fully virtualised operating environment for critical workload

The ability to provide a high degree of operational resilience through:

Local presence, partnerships and local compliance support capabilities

Infrastructure (smart facilities and software-defined infrastructure)

Redundant infrastructure serviced by robust, high-speed connectivity

Familiarity with regulatory and data residency requirements

Services (transformation, service provisioning, environment management,cloud marketplace, extensible platform and partner services)

Multicloud interconnect and scalability

A L L O F T H I S AT T H E R I G H T P R I C E P O I N T

Next-Generation Datacentre Provider

12

Meeting enterprises’ need for agility, resilience, security and compliance of their datacentre.

LIG

HT

AS

SE

TS

HE

AV

Y A

SS

ET

S

Mature Enterprises

Benefits

BitC/Cloud-Native Companies

Traditional Companies

Characteristics:

Characteristics:

Innovation Enabler

Integrated Capabilities

Digital TransformationCharacteristics:

Mixed assets of legacy and cloud infrastructure Look for partners with integrated capabilities

Built the entire IT infrastructure on the cloudSecurity and availability concerns

Cloud EnhancementTo enhance business agility for

BitC customers

To enable innovation by more robust infrastructure support

Improved Reliability of Systems, Networks &

Infrastructure

Improved Business Support Systems

Improved Infrastructure Scalability & Flexibility

To act as a trusted total solution partner

To guide customers on the DX roadmap and assist seamless transformation into hybrid IT

Looking at pure cloud solutions:

Looking to bring in colocation support:

Looking for easier management:

Looking for DX expertise:

Self-run DCsLegacy infrastructureLegacy applications

TH

E H

YB

RID

IT E

RA

One OrderForm

OneProvisioning

process

One Helpdesk

AutomatedProvisioning

DevOpsAPI Automation &Orchestration

AUTO

MATIO

N

AN

D O

RCH

ESTRATION

CLO

UD

LIFECYC

LE SERVIC

ES(A

DV

ICE, TRA

NSFO

RM, O

PERATE)

Infrastructure Management Services

Software-Defined Data Centers

Software-Defined Network Security As A

Service

Managed Server Managed Storage

Manag

ed

Firewall

Hosting Racks

Singtel Internet Exchange (STiX) MPLS Eline

PVCross

Connect

DD

oS

VAPT

Consultancy Svc

Gigawave SingNetOnNet

Cloud Connect

Datacentre Connect

Singtel’s DC.DX Platform

SING

TEL DC

.DX PLATFO

RM

HYBRID CLOUD

LIQUID SKYTM

Orchestration and automation

ManagedPrivate Cloud

ManagedVirtual Private Cloud

ManagedPublic Cloud

Copyright 2018 IDC. Reproduction without written permission is forbidden. This IDC InfoBrief was produced by IDC Asia/Pacific Custom Solutions. Any IDC information or reference to

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