New Report: Enterprises In All-Out Race to Transform IT

HOPKINTON, Mass. and PALO ALTO, Calif., March 15, 2016 /PRNewswire/ --

News Highlights:

• More than 660 EMC and VMware enterprise customers across 18 industries identified gaps, progress and goals in their current IT Transformation initiatives
• Firms prioritized areas of greatest return in building a modern IT organization to help accelerate digital business opportunities
• 90% reported they were evaluating or in proof of concept testing for hybrid cloud
• 80% indicated they want to standardize services in a business-focused catalog with a self-service portal; 77% want to increase automation to improve IT service delivery
• 90% said they believe having a documented IT transformation strategy or roadmap is critical to success, yet more than half reported having neither
• Most firms prioritized reducing software development release cycle times by 75-90%; nearly 70% of firms reported their software development lifecycles take 6-12 months or more

Connect With EMC and VMware:

• EMC Reflections Blog: The State of IT Transformation: An Analysis of EMC and VMware Customers
• Download State of IT Transformation report http://www.emc.com/collateral/analyst-reports/h14736-state-of-it-transformation-english.pdf 
• Visit the microsite for more details, stats and Infographics: http://www.emc.com/microsites/it-transformation-analysis.htm
• Follow the conversation on Twitter with @EMCCorp, and @EMC_News, @VMware and @VMwareNews

Full Story:
EMC Corporation (NYSE: EMC) and VMware (NYSE: VMW) today released a joint State of IT Transformation report, an analysis of more than 660 EMC and VMware customers worldwide that are in the midst of IT transformation initiatives to help advance the digital business agendas of their organizations. More accurate than a survey of polled research subjects, it presents a qualified analysis of companies who participated in EMC IT Transformation and VMware Accelerate workshops and self-identified gaps, progress and target goals in their short- and long-term IT transformation initiatives.

Transforming Operations
Regardless of geography or industry, most organizations reported wanting to improve their IT service strategy to run IT like a customer-focused business.

While 90% of organizations indicated the importance of having a documented IT transformation strategy and roadmap with executive and line of business support, more than half (55%) admitted to having nothing documented.

80% indicated they want to standardize services in a business-focused catalog with a self-service portal and to increase automation to improve IT service delivery including:

• Resource Provisioning – 77% of participants expressed the desire to provision infrastructure resources in less than a day, or dynamically as needed; over half reported taking between one to four weeks to do so
• Financial Management – 87% said they rely on a yearly allocation-based recovery, or a project-by-project recovery of IT costs; only 5% said they are able to bill the business for services consumed at an advertised price
• Metering – 88% of organizations said they want to get to a state where they use automation to track the resources each business unit is consuming; 70% indicated they have gaps in their ability to track IT resource consumption across the business

Cloud Infrastructure – Defining a Strategic Platform

Participants indicated they want their IT organizations to be cost-competitive with external service providers and are seeking cost efficiencies by virtualizing, standardizing, and developing hybrid cloud architectures. Most organizations indicated they want to have a hybrid cloud architecture for their production applications within the next 18-24 months, with 90% reporting they are in the evaluation or proof-of-concept stage.

In terms of virtualization, nearly every participating organization reported wanting to reach between 80-100% in compute, storage, and application virtualization.

Applications – Empowering and Accelerating App Development

Participants said they want to automate platform delivery to help their organizations develop software faster.  Yet more than 80% of participants reported lacking a scalable, infrastructure-independent application framework and 68% said their organizations take 6–12 months or more to complete a new application development lifecycle.  Most indicated the desire to get this down to a few weeks.

Highlights By Industry

• Healthcare – firms identified the most opportunities for improvements in their IT transformations. Healthcare participants scored themselves the lowest in more areas while prioritizing gaps in more areas than any other industry.
• Retail – the top performer in desktop virtualization with the top 20th percentile reporting well above 60% of desktops virtualized.  They also report having a majority of their applications built on a scalable, infrastructure-independent application framework.
• Telecommunications – participants in this sector lead in network virtualization with the average firm reporting they've achieved 40% in network virtualization; the top 20% of companies in this sector have achieved nearly 80% network virtualization.
• Financial Services – participants scored above average in most areas of their IT transformation initiatives with nearly 40% having a fully supported, documented IT transformation strategy and roadmap.
• Government – top 20% reported having over 20% of production apps in a hybrid cloud and nearly 100% of compute and applications virtualized.

The complete EMC-VMware State of IT Transformation analysis report, along with summary content and Infographics can be viewed at: http://www.emc.com/microsites/it-transformation-analysis.htm

Executive Quotes:
Kevin Roche, President, Global Services, EMC Corporation

"Our analysis of hundreds of EMC and VMware customers was more validating than surprising in that nearly every organization that participated shared with honesty, very common gaps and target goals to deliver IT services more efficiently as the best way to help enable their organizations better compete as full-fledged digital businesses. Both EMC and VMware have been part of many successful IT transformations with our customers, particularly those that enthusiastically adopt hybrid cloud strategies. These customers are not only experiencing significant cost savings, they are also making the most progress toward their digital business objectives."

Loretta Brown, Vice President, Federation, VMware

"The State of IT Transformation report shows that organizations in a variety of global, vertical industries can benefit from the implementation of a robust IT service strategy, powered by software-defined technologies. Together, with EMC, our mutual customers can achieve IT transformation by easily extending their private cloud workloads to and from the public cloud, while managing, securing and connecting all of their applications across all clouds and all devices."

About EMC
EMC Corporation is a global leader in enabling businesses and service providers to transform their operations and deliver IT as a service. Fundamental to this transformation is cloud computing. Through innovative products and services, EMC accelerates the journey to cloud computing, helping IT departments to store, manage, protect and analyze their most valuable asset – information – in a more agile, trusted and cost-efficient way. Additional information about EMC can be found at www.EMC.com.

About VMware
VMware is a global leader in cloud infrastructure and business mobility. Built on VMware's industry-leading virtualization technology, our solutions deliver a brave new model of IT that is fluid, instant and more secure. Customers can innovate faster by rapidly developing, automatically delivering and more safely consuming any application. With 2015 revenues of $6.6 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.

EMC is a registered trademark of EMC Corporation in the United States and other countries. VMware is a registered trademark of VMware, Inc. in the United States and other jurisdictions.  All other trademarks used herein are the property of their respective owners.

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SOURCE EMC Corporation

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