In todays’ digital economy, enterprises expect more from the IT organization. They want applications delivered faster, and they want IT infrastructure to perform at a higher level than ever before. Consequently, IT operations must transform itself to better serve the business. Llearn about top strategies for transforming IT in the digital era!

1. IT & DATA MANAGEMENT RESEARCH,
INDUSTRY ANALYSIS & CONSULTING
The Path to Enterprise
IT Transformation
Shamus McGillicuddy
Senior Analyst, EMA
shamus@emausa.com
@shamusEMA

2. IT & DATA MANAGEMENT RESEARCH,
INDUSTRY ANALYSIS & CONSULTING
Agenda
• Digital Transformation
Requires IT Transformation
• How Do You Transform IT?
• Modernize IT Management
Systems
• Leverage the Cloud for Agility
and Resiliency
• Maximize Resources: Focus on
What Your People Do Best
Slide 2 © 2016 Enterprise Management Associates, Inc.
IT & DATA MANAGEMENT RESEARCH,
INDUSTRY ANALYSIS & CONSULTING

3. IT & DATA MANAGEMENT RESEARCH,
INDUSTRY ANALYSIS & CONSULTING
IT and Digital Transformation:
Two Sides of the Same Coin
• What is “transformation”?
• Digital transformation –
Optimize business or
organizational effectiveness via
digital and IT services
• IT transformation – Optimize IT
performance for business or
organizational needs and
outcomes
Slide 3 © 2016 Enterprise Management Associates, Inc.
*EMA, “Digital and IT Transformation: A Global View of Trends and Requirements,” September 2015.
• Digital transformation is more
effective when pursued in parallel
with IT transformation*
• 50/50 partnerships between IT and
the business are essential

4. IT & DATA MANAGEMENT RESEARCH,
INDUSTRY ANALYSIS & CONSULTING
Characteristics of Successful IT Transformation
• Start with assessment of management tools
• The top two external partners for future transformation efforts:
 #1. Application management software vendors
 #2. IT operations management software vendors
• The cloud is essential
• 95% of “extremely successful” transformation initiatives include cloud
technologies
 Versus just 67% of “somewhat successful” transformation efforts
• Get the most out of what you have
• IT budgets are growing but organizations still struggle with a lack of resources
Slide 4 © 2016 Enterprise Management Associates, Inc.
Source: EMA, “Digital and IT Transformation: A Global View of Trends and Requirements,” September 2015

5. IT & DATA MANAGEMENT RESEARCH,
INDUSTRY ANALYSIS & CONSULTING
Modernize IT Management Systems

6. IT & DATA MANAGEMENT RESEARCH,
INDUSTRY ANALYSIS & CONSULTING
Overcrowded IT Management Toolkits
Challenge IT Operations
Symptoms of overcrowded &
outdated IT management toolkits
Leading challenges to network
operations success*
Visibility gaps between tools #1. Lack of end-to-end network visibility
Operational silos/no collaboration #3. Lack of visibility/control into
external cloud services
#6. Lack of cross-domain visibility
Fractured workflows #5. Fragmented management tools
Slide 6 © 2016 Enterprise Management Associates, Inc.
* EMA, “Network Management Megatrends 2016,” April 2016.

7. IT & DATA MANAGEMENT RESEARCH,
INDUSTRY ANALYSIS & CONSULTING
Overcrowded Network Management Toolkits
Lead to Unstable Networks
• 34% of IT organizations use 11 or more tools to monitor and
troubleshoot networks. 21% use only 1 to 3 tools.
• Organizations using 11+ tools
 Detect only 52% of network problems before end users are affected
 Operate very unstable networks
 50%+ report having at least several network outages per week
• In contrast, organizations using 1 – 3 tools
 Detect 71% of problems before end users are affected
 Operate more stable networks
 39% say they experience no more than 1 or 2 outages a year
Slide 7 © 2016 Enterprise Management Associates, Inc.
Source: EMA, “Network Management Megatrends 2016,” April 2016.

8. IT & DATA MANAGEMENT RESEARCH,
INDUSTRY ANALYSIS & CONSULTING
Modernization Starts With Opportunities
for Consolidation & Integration
• Enterprises know a crowded toolkit is a problem
• Of organizations using 1 – 3 network monitoring & troubleshooting tools
 52% actively fight to maintain their current number
• Of organizations using 11+ tools
 60% actively consolidate wherever possible
• Opportunities for cross-silo integration
• Enterprises require network management tool integration with
 Virtual systems management (49%)
 Security monitoring (47%)
 Application performance management (37%)
Slide 8 © 2016 Enterprise Management Associates, Inc.
Source: EMA, “Network Management Megatrends 2016,” April 2016.

9. IT & DATA MANAGEMENT RESEARCH,
INDUSTRY ANALYSIS & CONSULTING
Tool Modernization Requires Visibility
Into New & Emerging Technologies
• Management and monitoring tools must provide
control and visibility of the new technologies that
enterprises leverage for transformation
• Public cloud
• Virtual infrastructure
• Containers
• Converged infrastructure
• IoT
Slide 9 © 2016 Enterprise Management Associates, Inc.

10. IT & DATA MANAGEMENT RESEARCH,
INDUSTRY ANALYSIS & CONSULTING
Example: Network Management
Extend Beyond Your Networks
Slide 10 © 2016 Enterprise Management Associates, Inc.
37%
35%
35%
33%
32%
31%
30%
27%
24%
1%
Customizable reporting
Log file analysis
Specific support for virtual server environments
Specific support for cloud environments
Specific support for virtualized network devices
APIs for integration with other tools
Support for multiple user/operator constituencies
Service/application-awareness
Task/workflow-oriented UI
Other
Which of the following network management product features
add significant value to your organization?
Source: EMA, “Network Management Megatrends 2016,” April 2016.

11. IT & DATA MANAGEMENT RESEARCH,
INDUSTRY ANALYSIS & CONSULTING
Leverage the Cloud
for Agility and Resiliency

12. IT & DATA MANAGEMENT RESEARCH,
INDUSTRY ANALYSIS & CONSULTING
Cloud Is Integral to Transformation Initiatives
• Cloud technologies offer
• Agility
• Elasticity
• Reduced CapEx
• Resiliency
Slide 12 © 2016 Enterprise Management Associates, Inc.
Source: EMA, “Digital and IT Transformation: A Global View of Trends and Requirements,” September 2015.
• Top 2 impacts of cloud technology on
digital & IT transformation initiatives
• Accelerates transformation (32%)
• Promotes more dialog with the
business (29%)
• Cloud technology is involved in 85% of
digital & IT transformation initiatives

13. IT & DATA MANAGEMENT RESEARCH,
INDUSTRY ANALYSIS & CONSULTING
Make Sure IT Management Tools Are Cloud-Ready
Cloud technologies are driving management tool decisions
Slide 13 © 2016 Enterprise Management Associates, Inc.
Source: EMA, “Network Management Megatrends 2016,” April 2016.
• Top IT initiatives that influence
network management priorities
 Server virtualization (49%)
 Internal cloud transformation (37%)
 Software-defined data centers (35%)
• Hybrid cloud infrastructure drives
new management tool investment
 51% of hybrid cloud adopters
acquire new NPM solutions to
support their investments

14. IT & DATA MANAGEMENT RESEARCH,
INDUSTRY ANALYSIS & CONSULTING
Evaluate Cloud-Readiness of
Your Infrastructure Monitoring Tools
• Identify your business cloud strategy
• Internal vs. external vs. hybrid
• Providers? AWS, Azure, Google, or someone else
• Private cloud platforms? OpenStack, commercial solutions
• What kinds of applications are migrating to the cloud?
• Cloud requirements for your IT monitoring tools
• Collect telemetry from internal and external cloud environments
• Present and analyze cloud telemetry
• Contextualize cloud resources with end-to-end infrastructure
• Provide reports to business stakeholders
Slide 14 © 2016 Enterprise Management Associates, Inc.

15. IT & DATA MANAGEMENT RESEARCH,
INDUSTRY ANALYSIS & CONSULTING
Maximize Resources:
Focus on What Your People Do Best

16. IT & DATA MANAGEMENT RESEARCH,
INDUSTRY ANALYSIS & CONSULTING
IT Organizations Have to Do More With Less
“Lack of people and budget” is the #2 challenge
to network operations success*
Slide 16 © 2016 Enterprise Management Associates, Inc.
* EMA, “Network Management Megatrends 2016,” April 2016.
Lack of budget:
IT transformation often
requires new investments
Lack of people: The technical
labor market is tight

17. IT & DATA MANAGEMENT RESEARCH,
INDUSTRY ANALYSIS & CONSULTING
IT Outsourcing: Not About Reducing Costs
• Put your people on the tasks that allow them to deliver the most
value to the organization
• 51% of enterprises outsource some aspect of network management
 Up from 36% in 2014*
• Motivations for outsourcing**
• 57% say it enables focus on core business functions
• 47% say it solves capability issues
* EMA, “Network Management Megatrends 2016,” April 2016.
** Deloitte Consulting LLP, “2016 Global Outsourcing Survey,” June 2016.
Slide 17 © 2016 Enterprise Management Associates, Inc.

18. IT & DATA MANAGEMENT RESEARCH,
INDUSTRY ANALYSIS & CONSULTING
Ineffective IT Outsourcing Will Hurt the Business
• Be careful
• 15% of enterprises say ineffective outsourcing is
a major challenge to network operations success
• Evaluate which aspects of your operation are suited for outsourcing
 What are your people good at? What value do they offer?
• Define requirements and best practices for outsourcing
• Validate MSP performance
 30% of outsourcing organizations use old monitoring tools to monitor MSP
activity
Slide 18 © 2016 Enterprise Management Associates, Inc.
Source: EMA, “Network Management Megatrends 2016,” April 2016.

19. IT & DATA MANAGEMENT RESEARCH,
INDUSTRY ANALYSIS & CONSULTING
IT & DATA MANAGEMENT RESEARCH,
INDUSTRY ANALYSIS & CONSULTING
The Roundup
• IT transformation is the
foundation of digital
transformation
• IT transformation starts with
management tool modernization
• The cloud can accelerate
transformation success
• Outsource strategically and
allow your IT organization to
focus on what delivers value
directly to the business
Slide 19 © 2016 Enterprise Management Associates, Inc.

20. IT & DATA MANAGEMENT RESEARCH, INDUSTRY
ANALYSIS & CONSULTING© 2017 Enterprise Management Associates, Inc.
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