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Enterprise Strategy Group | Getting to the Bigger Truth™
By Scott Sinclair, ESG Senior Analyst
APRIL 2021
Success in business has become increasingly defined by how efficiently and effectively an organization leverages its technology and data. Digital business initiatives unlock previously untapped markets, improve customer engagement, and optimize operations.
Events such as the global COVID-19 pandemic reinforced and accelerated this reality. Sixty percent of IT decision makers told ESG that the pandemic will make their organizations even more dependent upon technology moving forward.1
This has tremendous implications for IT. Simply keeping pace with digital business initiatives is no longer good enough. If a business wishes to succeed, IT must accelerate its operations. Reactionary behavior is not a strategy for success. However, as digital initiatives proliferate, the dilemma is that IT complexity also rises thanks to explosive growth in data and data center resources, increased security concerns, and the need to integrate new technologies. Hiring technical talent to support new and ongoing projects has become more difficult, resulting in problematic skill shortages.
Furthermore, the urgency of new IT projects is driven by the need to innovate faster using emerging capabilities in artificial intelligence (AI), deep learning, and analytics. Organizations that are unable to efficiently create new value from data will be left behind—whether in existing industries experiencing disruption or in nascent markets undergoing rapid change. Gathering disparate data. managing new data, and speeding up processing adds complexity and strain to existing IT operational challenges.
Relying solely on increased budgets and increased hiring is neither cost-effective nor realistic. Therefore, the infrastructure itself must rise to the challenge. It must become “smarter”—more capable of reducing and automating tasks while supplying greater and deeper insight, which will reduce IT burden by several orders of magnitude.
That is the promise of intelligent infrastructure. It can automatically adapt to the specific needs of an enterprise’s application and data environment. It integrates knowledge about the state of the infrastructure , the applications, and the data, and self-directs actions to optimize operations and resources.
DDN and Tintri, a DDN company, offer leading intelligent storage infrastructure products and technologies. They are now combining forces to deliver an extensive infrastructure portfolio that can help enterprise IT organizations modernize and transform their application environments, harness the power of data everywhere, accelerate time to insight, reduce personnel burdens, decrease OpEx and CapEx, and maximize business benefits now and in the future.
The pressing need to become “more digital” is pervasive. In a recent ESG research study, nearly every IT organization surveyed (98%) said they are in some phase of digital transformation—leveraging technology to improve many facets of the business. They aim to become more operationally efficient (reported by 56% of respondents), provide a better and more differentiated customer experience (40%), and develop innovative new products and services (38%) often by using AI or analytics (28%).
Unfortunately, few IT organizations have been able to fully rise to these challenges. Only 6% of line-of-business executives surveyed by ESG regard IT as a competitive differentiator, while 25%—four times as many—view IT as a business inhibitor.3 If success in the digital era means that IT must help transform the business, these numbers indicate that 94% of enterprises are failing at it. The two most commonly cited reasons executives perceive IT as a business inhibitor are that (1) processes to deploy IT services take too long (cited by 43%), and (2) it is too difficult to access the data they need for business operations and analysis (43%). For enterprises to succeed, something must change.
Complexity unfortunately mounts as IT organizations deploy technologies and embark on initiatives to accelerate business. In a recent ESG research study, 75% of IT decision makers told ESG they believe IT is more complex than it was just two years ago. Multiple factors are behind the increased complexity. COVID-19’s immediate impact tops the current list, but concerns over new data security and privacy regulations and higher data volumes also are major drivers. In addition, 29% of respondents report having a major digital transformation activity underway, further driving complexity (see Figure 1).
What do you believe are the biggest reasons your organization’s IT environment has become more complex? (Percent of respondents, N=496, five responses accepted)
Source: Enterprise Strategy Group
The struggle to innovate is pressing and constant. To address market demand, businesses are increasing the scale and diversity of their application environments, accelerating the adoption and integration of new technologies, and expanding remote work options for employees. The result is an almost insurmountable level of IT complexity that stifles innovation and overwhelms personnel. Again, throwing more IT staff at the problem isn’t viable. Thirty-four percent of organizations are experiencing problematic skill shortages related to IT architecture and planning, and 17% are seeing storage administrator shortages.
This has led to an industry-wide shift away from domain experts such as storage admins toward generalists. Sixty-two percent of organizations indicated that most of their open positions were for generalists.4 As new hires come into an organization with broader (not deeper) experience, it diminishes the overall level of detailed technology and component knowledge and further deepens the IT skills gap.
Digital business demands are accelerating. Complexity is rising. Data is exploding. Personnel are scarce and costly. IT infrastructure must therefore become intelligent enough to meet increased demands and automate enough activities to free up personnel. Today, the term “intelligent infrastructure” usually refers to data storage technology. Typically, these solutions leverage telemetry data collected from the infrastructure and integrated machine learning to reduce burdens on administrators.
Often, the goal is to move toward an autonomous IT infrastructure. Similar to autonomous vehicles, intelligent infrastructures come in multiple flavors, defined by a spectrum of capabilities. Like automatic parallel parking or lane-assist features, intelligent infrastructures offer a variety of “self-driving” capabilities that enable an IT organization to simplify and automate certain activities according to specific business needs.
The idea behind intelligent infrastructure is to replace projects, which can be large, time-consuming, costly, risky, and reliant on tribal knowledge, with products, i.e., intelligent data-driven solutions that are validated, proven, integrated, and repeatable. But different vendors offer different intelligence features with varied levels of maturity.
The following list describes how an intelligent infrastructure, if properly architected and managed, can transform an organization and deliver business acceleration and success. It will:
The above benefits will vary depending on the breadth of infrastructure intelligence and the level of automation integrated into the solution. The ability to identify the likeliest cause of a performance slowdown is beneficial. But the ability to highlight potentially impacted workloads and automatically shift resources to ensure consistent performance across them all until an administrator can address the problem—or without requiring an administrator at all—is more beneficial.
In addition to the intelligent infrastructure advantages identified above, the following three attributes can help gauge the value of a particular solution :
Source: Enterprise Strategy Group
1 Source: ESG Research Report, The Impact of the COVID-19 Pandemic on Remote Work, 2020 IT Spending, and Future Tech Strategies, Jun 2020.
2 Source: ESG Master Survey Results, 2021 Technology Spending Intentions Survey, Dec 2020. All ESG research references and charts in this white paper have been taken from this master survey results set, unless otherwise noted.
3 Source: ESG Master Survey Results, 2019 Technology Spending Intentions Survey, Mar 2019.
4 Source: ESG Master Survey Results, 2019 Data Storage Trends, Nov 2019.
This ESG White Paper was commissioned by DDN and Tintri, a DDN company, and is distributed under license from ESG.
All trademark names are property of their respective companies. Information contained in this publication has been obtained by sources The Enterprise Strategy Group (ESG) considers to be reliable but is not warranted by ESG. This publication may contain opinions of ESG, which are subject to change from time to time. This publication is copyrighted by The Enterprise Strategy Group, Inc. Any reproduction or redistribution of this publication, in whole or in part, whether in hard-copy format, electronically, or otherwise to persons not authorized to receive it, without the express consent of The Enterprise Strategy Group, Inc., is in violation of U.S. copyright law and will be subject to an action for civil damages and, if applicable, criminal prosecution. Should you have any questions, please contact ESG Client Relations at 508.482.0188.
Enterprise Strategy Group | Getting to the Bigger Truth™
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