Transcript CiscoEvolve - Ingram Micro

™
Meeting the Rising Challenge of
Modern Networks
2013
AberdeenGroup
1 •©©
Aberdeen
Group 2013 – Not For Distribution
What we’ll learn
• State of new technologies and their impact
• The challenges businesses face today in managing and
optimizing networks and applications
• Detailed looks at the impact of key emerging
technologies
• How Best-in-Class organizations are meeting these
technology challenges
• Benefits of being a Best-in-Class business
• Aberdeen Recommendations
2 • © Aberdeen Group 2013 – Not For Distribution
Aberdeen Research Methodology
 Survey end-users about their organization’s results from
technology deployment
 Define Leaders based on quantifiable business and operational
performance
 Identify characteristics, capabilities and business practices of
Leaders not widely practiced by Followers
 Recommend concrete actions for Followers based on the
performance advantages of Leaders
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Emerging Technologies: The Good and the Bad
New technologies keep things exciting and
offer improved capabilities and features. They
also disrupt established practices and increase
complexity and the difficulty of tech
management.
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Rising Tide of Emerging Technologies
 Top emerging technologies being deployed by business today.
Currently Implemented
Plan to Implement in 12 months
90%
80%
80%
75%
72%
70%
60%
50%
50%
46%
43%
40%
28%
30%
20%
20%
30%
18%
12%
10%
10%
0%
Server virtualization
VOIP and UC
Back-end storage
systems
10G network
capabilities
Source: Aberdeen Group, June 2013
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Enterprise video
content and
communications
Desktop virtualization
Rising Tide of Emerging Technologies
 Continued from previous slide.
Currently Implemented
Plan to Implement in 12 months
50%
45%
47%
44%
44%
43%
42%
40%
36%
35%
35%
30%
25%
25%
22%
21%
20%
20%
18%
15%
10%
5%
0%
Mobile device
management
Public cloud
Private / hybrid cloud
Big Data
Source: Aberdeen Group, June 2013
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Software Defined
Networking (SDN)
Switchover to IPv6
Top Challenges Faced by Business Today

For this data, we asked organizations what the top pressures were that were impacting
network and application service, performance and management.
Increasingly virtualized infrastructure
50%
Increased real-time high bandwidth traffic (UC, VOIP and video)
38%
Rising user demand for services
38%
Increasing volume of data (Big Data)
35%
Increased importance of mobile access
29%
Increasing costs for data center and NOC
29%
Employees using personal mobile devices (BYOD)
24%
0%
10%
Source: Aberdeen Group, June 2013
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20%
30%
40%
50%
60%
Increasing Pressures on Enterprises
Applications are too complex
44%
Poor understanding of end-user experience
42%
Can't justify cost of platform
39%
Application platform doesn't support business growth
33%
Lack tools to resolve problems
32%
0%
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10%
20%
30%
40%
50%
Service Margins vs. Product Margins
45%
40%
40%
35%
30%
Service Margins
vs. Product
25%
Margins,
Percentage of
20%
Respondents,
n=138
15%
23%
19%
10%
5%
3%
5%
0%
Higher by
10% or more
Higher by
less than
10%
Same
Lower by less Lower by
than 10% 10% or more
Source: Aberdeen Group, December 2012
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Emerging Technologies: A Deep Dive
Let’s shed some light on key new
technologies impacting business
today.
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Server Virtualization and Private Cloud
+50% of all applications deployed on virtualized servers
% of Survey Respondents
Small
80%
70%
60%
50%
40%
30%
20%
10%
0%
55%
Mid-Sized
Large
69%
62%
74%
72%
48%
Currently Deployed on
Virtualized Servers
Will be Deployed on virtualized
Servers when all Projects
Completed
n = 123
Source: Aberdeen Group, January, 2013
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Real-Time Communications
VoIP phones and software, and larger Unified Communications,
connect voice, video, collaboration, and email into an overarching
collaborative infrastructure. While these real- time systems
provide increased communication functionality and improved
management capabilities, they increase overall network traffic.
Due to their high demand for bandwidth and low tolerance for
latency, they require the highest levels of network service in order
to satisfy end-user expectations for enterprise-class
communications.
•30% of organizations consider
Unified Communications and
Voice Over IP to be critical to their
overall business
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The Move to Mobility
Corporate applications and data are accessed from anywhere and on
anything. The rise of powerful tablets and smartphones and the increasing
prevalence of the Bring Your Own Device trend mean that companies are
delivering applications to new types of devices over networks that they
have no control over or visibility into
•Number one pressure (for 71% of
organizations) is increased demand for
mobile application access
•In a recent Aberdeen survey, 91% of
respondents said they are using a
smartphone or tablet in the workplace
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Public Cloud
While cloud computing offers benefits in
infrastructure costs and management, it adds new
complexities. As cloud system adoption rates
increase, businesses will need to continue to ensure
high application uptime and performance levels.
The top THREE pressures driving cloud-focused
organizations to invest in performance
management solutions:
•43% said that the need to meet and measure
Service Level Agreements
•39% chose rising user demand for applications
and network bandwidth
•30% listed rising use of mobile devices and
applications
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More Emerging Technology on the Horizon
Big Data
Social Networking
Virtual Desktops & Applications
IPv6
Software Defined Networking
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Best-in-Class Strategies
Increase network capacity
53%
Design new networking strategy
42%
Automate performance monitoring
38%
Implement mobile application strategy
34%
Implement cloud strategy
34%
0%
10%
20%
30%
40%
50%
60%
Percentage of respondents, n=74
Source: Aberdeen Group, September 2012
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Best-in-Class Results
Network Benefits
Network Performance
Best-in-Class
Source: Aberdeen Group, September 2012
Network Performance
Followers
Bandwidth Capacity Increased by
100% or higher
14% of networking leaders saw a
large increase in network capacity
Only 4% reached this bandwidth
capacity milestone
Network Throughput Increase of
40% or higher
High increases in network
throughput capability were
reached by 16% of Best-in-Class,
twice the number of followers
8% of Followers achieved
improved network throughput
End-users extremely or very
satisfied with network
performance
32% of end-users are extremely or Only 14% of end-users are
very satisfied with performance
extremely or very satisfied with
network performance
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Best-in-Class Take a Profit Centric View
Is Service Run as a Profit Center,
Percentage of Respondents, n=138
80%
72%
56%
60%
38%
40%
24%
20%
0%
Yes
No
Best-in-Class
All Others
Source: Aberdeen Group, December 2012
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Link Between Customer Satisfaction and Loyalty / Revenue
Average Result
Customer
Satisfaction
> 90%
Customer
Satisfaction
< 50%
89%
48%
77
32
Revenue Growth (Previous 12
Months)
3.7%
-1.7%
Service Revenue Growth (Previous 12
Months)
6.1%
-2.9%
Metrics
Customer Retention
Customer Loyalty Score
Source: Aberdeen Group, December 2012
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Top Roadblocks for Effective Service Management
Cost cutting initiatives take
precedent
33%
Economic concerns hindering
service business growth
33%
Lack of budget for investment in
service
32%
Current technology infrastructure
is insufficient
29%
0%
10%
20%
30%
40%
Challenges, Percentage of Respondents, n = 138
Source: Aberdeen Group, December 2012
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Aberdeen Strategic Recommendations



Understand current networking infrastructure. A key first step
to improving network strategy is understanding your current
situation. Best-in-Class businesses know where their current network
is providing value and where it is coming up short.
Don't be afraid to do things differently. Emerging technologies
don't just impact your business, they impact your partners and
technology suppliers. Networking strategies that didn't exist a few
years ago are now available that can potentially provide improved
capabilities and increased cost savings.
Do the prep work. Very few new technologies can be dropped into
a company infrastructure without any changes necessary.
Technologies like big data and unified communications boost traffic
while cloud and mobile can increase management headaches. Making
sure that your IT infrastructure is ready for these technologies will go
a long way towards ensuring a successful deployment.
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Aberdeen Strategic Recommendations



Build for growth. Don’t think that this current explosion of new
technologies is going to end anytime soon. The Best-in-Class are redoing
their network and infrastructure strategies to ensure growth and
flexibility
Track emerging technologies early in their lifecycle. Even if you
don't anticipate implementing a new technology in the near future, having
a good understanding of the technology early on will ease both initial
investigation and deployment of the technology when the time to
implement it comes. Our research reveals that gaining an early
knowledge of emerging technology leads to performance gains and Bestin-Class status for organizations.
Talk to key suppliers and vendors about the new technology.
Gaining the knowledge that the vendors who supply your networking
and performance management solutions are already in the process of
supporting a new technology, will help with any implementation of the
technology on the part of your business.
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Aberdeen Strategic Recommendations



New service and services. As service margins continue to outpace
those of products, it is imperative that the organization create new valueadded services to provide customers with enhanced offerings. Top
performing organizations have established newer services like training or
consultation to become true partners with customers.
The competition is coming. The service opportunity is not going
unnoticed by the market. Revenue and profitability prospects have led to
a dearth of service providers and other competitive organizations
establishing businesses around servicing others products.
Don't get left behind. Across the board, Best-in-Class organizations
have a 15% edge in adopting new technologies when compared to
Industry Average businesses. Top performing companies understand that
new technologies often provide an edge in productivity and business
capabilities and move to take advantage of the competitive boost of these
technologies.
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THANK YOU!
Additional reports, blogs and other content on
these and other topics freely available at
www.aberdeen.com
Contact Aberdeen:
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Fax: 617.723.7897
[email protected]
AberdeenGroup
24©•2013
© Aberdeen
Group 2013 – Not For Distribution