ZDNetASIAITPRIORITIES 2013

Thestrategies,prioritiesandimplementationplansof AsianITleadersandprofessionals

Version:1.020March2013 Authors:AngusMacaskill Surveyprogramming,management,analysis:GanKwokLing,ShirongZeng,BlasPrieto 2013CBSInteractive

EXECUTIVESUMMARY............................................................................................................................ 4 ABOUTTHISREPORT............................................................................................................................... 6 REPORTRELEASESCHEDULE.................................................................................................................................6 ABOUTITPRIORITIES..........................................................................................................................................6 ABOUTZDNETANDCBSINTERACTIVE................................................................................................................... 6 ITPRIORITIES.......................................................................................................................................... 7 OPTIMIZINGCUSTOMERPROCESSTHENUMBERONEITPRIORITY............................................................................... 7 CUSTOMERPROCESSALSOHEADSTHETOP3PRIORITIESLIST.................................................................................... 8 THESTRATEGICPOSITIONINGOFICT...................................................................................................... 11 ICTSCONTRIBUTIONTOTHEBUSINESSCOULDDOBETTER..................................................................................... 11 THEROLEOFCXOSINDRIVINGICTLEDINNOVATION............................................................................................. 12 CEOSACTIVEINVOLVEMENTISABIGFACTOR........................................................................................................ 13 CEOINVOLVEMENTINICTIMPACTSBUSINESSSUCCESS........................................................................................... 14 CXOINVOLVEMENTALSOIMPORTANT.................................................................................................................. 15 ICTBUDGETS.......................................................................................................................................... 16 ICTEXTERNALSPENDINGIN2012....................................................................................................................... 16 ICTEXTERNALSPENDINGIN2013TOGROWBY23%ONAVERAGE...........................................................................17 SPENDINGINCREASESMOREWIDESPREADIN2013COMPAREDTO2012....................................................................18 BUSINESSPROFILE................................................................................................................................. 19 THECOMPETITIVEPOSITIONINGOFRESPONDENTBUSINESSES.................................................................................... 19 ANNUALREVENUES ...........................................................................................................................................20 DATACENTRE......................................................................................................................................... 21 ROLEWITHRESPONSIBILITYFORDATACENTRE........................................................................................................ 21 DATACENTREBUDGETIN2013V.2012............................................................................................................... 22 MOSTIMPORTANTDATACENTREPROJECTIN2013................................................................................................. 23 BUSINESSOBJECTIVESOFTHEMOSTIMPORTANTDATACENTREPROJECT......................................................................24 CURRENTIMPLEMENTATIONSTATUS.................................................................................................................... 25 FUTUREIMPLEMENTATION/UPGRADEPLANS........................................................................................................ 26 EXTENTOFVIRTUALISATION................................................................................................................................27 CLOUD................................................................................................................................................... 28 ROLEWITHRESPONSIBILITYFORPRIVATECLOUD..................................................................................................... 28 ROLEWITHRESPONSIBILITYFORPUBLICCLOUD ....................................................................................................... 29 CLOUDEXTERNALICTSPENDING2013V.2012.................................................................................................... 30 MOSTIMPORTANTCLOUDPROJECTIN2013......................................................................................................... 31 BUSINESSOBJECTIVESOFMOSTIMPORTANTCLOUDPROJECT.................................................................................... 32 CURRENTIMPLEMENTATIONSTATUS.................................................................................................................... 33 FUTUREIMPLEMENTATION/UPGRADEPLANS........................................................................................................ 34 ITSECURITY........................................................................................................................................... 35 RESPONSIBILITYFALLSONSENIORITMANAGEMENT................................................................................................ 35 FORMALIZEDSECURITYPOLICIESSTILLNOTABUSINESSNORM................................................................................... 37 FUTUREIMPLEMENTATION/UPGRADEPLANS........................................................................................................ 42 ANALYTICS............................................................................................................................................. 43

P a g e |2IT Priorities Asia 2013

ROLEWITHRESPONSIBILITYFORANALYTICS........................................................................................................... 43 ANALYTICSEXTERNALICTSPENDING2013V.2012............................................................................................... 44 MOSTIMPORTANTANALYTICSPROJECTIN2013.................................................................................................... 45 BUSINESSOBJECTIVESOFMOSTIMPORTANTANALYTICSPROJECT............................................................................... 46 CURRENTIMPLEMENTATIONSTATUS.................................................................................................................... 47 FUTUREIMPLEMENTATION/UPGRADEPLANS........................................................................................................ 48 NETWORKING/COMMUNICATIONS...................................................................................................... 49 ROLEWITHRESPONSIBILITYFORNETWORK/COMMUNICATIONS............................................................................... 49 NETWORK/COMMUNICATIONSBUDGETS2013V.2012........................................................................................ 50 MOSTIMPORTANTNETWORK/COMMUNICATIONSPROJECTIN2013........................................................................51 BUSINESSOBJECTIVESOFMOSTIMPORTANTNETWORK/COMMUNICATIONSPROJECT...................................................52 CURRENTIMPLEMENTATIONSTATUS.................................................................................................................... 53 FUTUREIMPLEMENTATION/UPGRADEPLANS........................................................................................................ 54 ENDUSERCOMPUTING.......................................................................................................................... 55 ROLEWITHRESPONSIBILITYFORENDUSERCOMPUTING........................................................................................... 55 ENDUSERCOMPUTINGEXTERNALICTSPENDING2013V.2012.............................................................................. 56 PRIMARYDESKTOP/LAPTOPOPERATINGSYSTEM..................................................................................................... 57 CURRENTIMPLEMENTATIONSTATUS.................................................................................................................... 58 FUTUREIMPLEMENTATION/UPGRADEPLANS........................................................................................................ 59 METHODOLOGYANDRESPONDENTS...................................................................................................... 60 INTRODUCTION................................................................................................................................................60 RESPONDENTDEMOGRAPHICS............................................................................................................................ 60

P a g e |3IT Priorities Asia 2013

Executive Summary
ForITleadersin2013,thecustomerisking ThenumberonepriorityforITthisyearinAsiaisoptimisingcustomerprocesses.Overone quarteroforganizations(28%)areprioritisingITtowardthecustomer.ItsaclearindicationICTis nowmorefocusedoutsidetheorganizationthaninside(bycomparison,just8%sayinternal businessprocessesareapriority). Internalcustomersmattertoo.DeliveringonITservicelevelsisthesecondmostimportant prioritycitedby14%oforganizations.Andsincedeliveringtointernalcustomersisoftenabout supportingtheirservicetoexternalones,thesetwomainprioritiesareconnected. CosteffectiveITiseffectiveIT Prioritiestodowithcostsalsoratehigh.Atotalof17%areprioritisingcostreductioninitiatives includingreducingoverallbusinesscosts(6%),reducingoverallICTcosts(4%),increasing efficienciesinthedatacentre(4%),andmovingtocloudarchitecture(3%). Despiteahostofothercompetingpriorities,likeprovidingasecureITenvironment,and optimisingprocesseswithsuppliers,theunmistakeablefocusofITinAsianorganisationswillbe onthecustomerandoncostmanagement. ITexternalspendingwillincrease23%on2012 BusinesseswillapplyresourcestocustomerprocessoptimisationandotherITprioritiesintwo waysthroughtheincreasedexternalbudgetsattheirdisposal(onaverageup23%ontheprior year),andviacostsavingsfromincreasedvirtualisationandcloudinitiatives. Threequarters(75%)ofbusinesseswillincreaseexternalITspendingin2013comparedtotheir 2012spend. Thecorrespondingsurveyin2012reportedthat60%hadincreasedbudgets.Theproportionof businesseswithincreasesgreaterthan20%thisyearisalmostdoublethatfromthe2012IT Prioritiesstudy. SavvyITvendorsthathelpbusinesseswithcustomerprocessoptimisationanddelivercost efficienciescouldfindgoodmarketopportunities. TheCEOisacriticalfigureinsuccessfulIT WiththeexceptionoftheCIO,theClevelexecutivemostcommonlydrivingICTledchangeisthe CEO.25%saytheCEOdoesthistoagreatextent,and22%sayalot. OrganizationswithaCEOwhosproactivelyinvolvedinICTledchangesayICTmakesalarger contributiontothebusinessthanotherswheretheCEOisnotsoinvolved.Theseorganizations arealsomorelikelytobeoutperformingtheirindustrypeers. P a g e |4IT Priorities Asia 2013

SometechnologiestakeprecedenceinsupportingkeybusinessandITpriorities. Inthedatacentre,servervirtualisationisthisyearsbiggestfocus(30%ofbusinessesareworking onitin2013).Themostprevalentvariantofcloudwillbeprivatecloud,and44%willworkon suchprojects. Despitetheincreasingsecuritythreats,themainfocusintermsofITSecurityisstill network/perimetersecurity31%ofbusinessesareimplementingand/orupgradingthese capabilities. Inanalytics,traditionaltoolslikeOLAPanddatawarehousingarethepriorityfor38%of businesses,wayaheadofthenewerbigdataanalyticstechnologies,whileinthenetworkarena theprimaryfocusisonnetworkmanagementtools. AsianITachangingpicture TheITlandscapeinAsiacanbethoughtofasoneviewedthroughashimmeringheathaze. Sometimesthepicturecomesintofocus,sometimesitslessdistinct.Itsalwayschanging,and changingdifferentlyineachcountryespeciallyasemergingeconomiesraceforward,with concomitantdemandsonITdevelopments. Thisreportisbutonesnapshotofthatchanginglandscape,oneweatZDNetAsiahopeaddsto theclarityofthepicture.Thepictureconsistsofmanymetaphoricalpixels,andinthecaseofIT Prioritiesthepixelsarethe1,236ofZDNetsaudiencewhocontributedaround20minutesof theirtimetohelpusformalargerunderstanding.Wesincerelythankyouallforyour contribution.

P a g e |5IT Priorities Asia 2013

About this report

Report Release Schedule

Initial Report ThisreportrepresentstheinitialreleaseofsurveyfindingsforZDNetAsiaITPriorities2013. Subsequent Reports Wewillreleasesubsequentaddendumswithfurtherdetailsonsomeofthetechnologyareas coveredattoplinelevelinthisreport.Thefirstofthesereports,ZDNetAsiaITSecurity Priorities2013sponsoredbyFireEye,isalsoreleasedduringw/c18Mar2013.Pleasecheckback towww.zdnet.com.auforfurthercategoryreports.

About IT Priorities
ThisisthethirdAsianinstalmentofITPriorities,anannualsurveyfromCBSInteractiveaboutthe strategies,prioritiesandimplementationplansofITleadersandprofessionalsacrosstheglobe. Inadditiontothisreport,CBSInteractiveisreleasingreportscoveringITmarketsinIndia,China, USA,UK,France,andAustraliaandNewZealandincomingweeks. PleaserefertotheMethodologychapterattheendofthisreportformoreinformationaboutthe reportscope,respondentbaseandtopicscovered.

About ZDNet and CBS Interactive

ZDNet(www.zdnet.com)iswheretechnologymeansbusiness.Thesiteattractsanenthusiastic andinteractiveaudienceofbusinesstechnologyinfluencers,manyofwhomvisitforthelatest coverageandanalysisofhowtechnologyimpactsbusiness. BusinessleadersanddecisionmakersincludingCEOs,CIOsandITprofessionalsatalllevelsvalue thesiteduetoitsextensiveresources,enablingthemtomakethemostoutoftechnologyfor theirbusinesschallenges.

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IT Priorities

Optimizing customer process - the number one IT Priority

Inlinewithinternationaltrends,customersaregettingmostICTattentioninAsia

OptimisingbusinessprocessesforcustomersisthenumberoneICTpriorityinoverone quarteroforganizations(28%).ThisisaclearindicationthatICTisnowmorefocusedoutside theorganizationthaninside(only8%sayinternalbusinessprocessesareapriority). Thefocusoncustomersisemphasisedbythefact10%aregivingprioritytoimproving informationmanagementformoreinformeddecisionmaking(e.g.usingdatawarehouses, analytics,bigdata)itisthe3rdhighestpriority. Internalcustomersmattertoo.ICTteamsarealsoputtingemphasisondeliveringonIT servicelevelsapriorityfor14%oforganizations.

SomeofthefocusonoptimisingcustomerprocesseswillbemadepossiblebyreducingICT spendingelsewhere Atotalof17%areprioritisingcostreductioninitiativesincludingreducingoverallbusinesscosts (6%),reducingoverallICTcosts(4%),increasingefficienciesinthedatacentre(4%),andmoving tocloudarchitecture(3%).

P a g e |7IT Priorities Asia 2013

Customer process also heads the top 3 priorities list

Thischartshowstheprioritiesrankingwhenall3topprioritiesareincluded(asopposedtojust thenumberonepriorityaswiththepreviouspage).Therankingofthelistispracticallythesame asthepreviouschart,butsomeoftheothertopicsareclosertooptimisingcustomerprocessby dintofpickingup2ndand3rdprioritynominations.

P a g e |8IT Priorities Asia 2013

Largeorganizationsaregivingmarginallymoreemphasistooptimisingbusinessprocessesfor customers(30%)thansmall(26%)andmediumsizedorganizations(21%).Makingiteasyfor customerstodobusinessthroughwhicheverchanneltheychooseiskeyhere.Smalland mediumsizedbusinessescantaffordtofallbehind.

WhileWesternsurveysindicateongoingeffortstomigratetoCloudarchitectures,suchashift isnotaleadingpriorityforAsianorganizations(only3%rateitasapriority),perhapsdueto lowerinternalcostbasesthaninthewestorconcernsaboutdatasovereignty. Only4%ofrespondentsratereducingoverallICTcostsasapriority Acrossorganizationsofallsizes,deliveringonITservicelevelsandimprovinginformation managementarethesecondandthirdstrongestpriorities,withtheexceptionofmedium sizedorganizationswhichrankoptimisingbusinessprocesseswithsuppliersastheirthird biggestpriority.

Optimisingbusinessprocessesfor customers DeliveringonITservicelevels ImprovingInformationManagement Optimisingbusinessprocesseswith suppliers Optimisinginternalbusinessprocesses ProvidingasecureICTenvironment Reducingoverallbusinesscosts ReducingoverallICTcosts Increasingefficiencies/reducingcosts inthedatacentre RecruitinganddevelopingthebestICT talent Providingfailsafedisasterrecovery MovingtoaCloudarchitecture <100 26% 100499 21% 500+ 30% Notdiscl. 29%

13% 9% 7%

13% 10% 12%

16% 10% 8%

15% 14% 8%

10% 6% 6% 5% 5%

9% 7% 7% 4% 4%

6% 6% 8% 4% 5%

8% 6% 5% 3% 1%

5% 3% 4%

3% 5% 4%

2% 2% 2%

8% 1% 3%

P a g e |9IT Priorities Asia 2013

ITprioritiesvarybyeconomy.ReducingoverallbusinesscostsandreducingoverallITCostsisa muchbiggerpriorityforSingapore,whileinternalbusinessprocessesfiguremorestronglyfor Indonesianorganizations. SG Optimisingbusinessprocessesfor customerse.g.CRM,selfserviceportals, ecommerceetc. DeliveringonITservicelevels(e.g.service availability,responsiveness)tobusiness users ImprovingInformationManagementfor moreinformeddecisionmaking(e.g.data warehousing,dataanalytics,Bigdataetc.) Optimisinginternalbusinessprocesses e.g.HR,Financeetc. Optimisingbusinessprocesseswith supplierse.g.ERP,Supplychain, procurementetc. ProvidingasecureICTenvironment Reducingoverallbusinesscosts ReducingoverallICTcosts Increasingefficiencies/reducingcostsin thedatacentre RecruitinganddevelopingthebestICT talent MY ID PH Other

27%

23%

27%

32%

22%

16%

15%

12%

15%

12%

5% 6%

7% 8%

11% 14%

14% 7%

11% 8%

6% 6% 12% 8%

10% 8% 7% 3%

9% 7% 3% 7%

6% 7% 4% 1%

13% 3% 8% 5%

4% 2%

5% 4%

5% 2%

4% 5%

3% 6%

Providingfailsafedisasterrecoveryand backupcapabilities

4%

5%

2%

1%

2%

MovingtoaCloudarchitecture

3%

3%

2%

3%

4%

Other

1%

1%

1%

1%

2%

P a g e |10IT Priorities Asia 2013

The strategic positioning of ICT

ICTinbusinesshasinitiallybeenseenasasupportfunctionwhereexpensivetechnologywasused toperformbasicisolatedfunctions,typicallysuchasfinancialaccounting,orstockcontrolor orderprocessing.ThegrowthofnetworkingandtheinternetgreatlyincreasedtheutilityofICT (thinkemailandelectronictransactionsinthesupplychain),andnowICThasbecomecentralto theoperationsofmostorganizations.Someorganizationshavegoneastepfurthertothepoint whereICTisnotjustsupportingthebusiness,inmanycasesitisthebasisforthesuccessand developmentofthebusiness.ThissectionlooksatthewayorganizationsperceiveICTs contributiontotheirperformance,andattheinvolvementofseniorexecutivesinICTled transformations.

ICTs contribution to the business could do better

ThischartshowsrespondentsperceptionsofthewayICTcontributestobusinessperformanceon a4levelhierarchymodel(thelowestlevelisdelivering,thehighestlevelisinnovating). ICTismakingabigcontributioninonequarterofbusinesses,butinmostothersitismerely deliveringadequateservice,orhelpingimproveprocessesinlimitedways

OnlyonequarterofrespondentssaytheirorganizationhasamajorcontributionfromICT (15%sayICTisinnovating,10%sayitisdifferentiating). Atthelowestlevelofthehierarchy,35%sayICTisjustdeliveringprovidinginfrastructure andapplicationsbutconcentratingondeliveringestablishedserviceswithoutimprovements. 40%reckonICTisimprovinghelpingmakespecificbusinessprocessmoreefficientand effective.

P a g e |11IT Priorities Asia 2013

Innearlyhalf(47%)ofthelargeorganizationssurveyed,ICTisperceivedtobedelivering infrastructure,applicationsanddatabasesaswellasestablishedservices,butinonly16%isit perceivedasinnovatingandinevenless(9%)asdifferentiating.

SmallandmediumsizedorganizationsaremorelikelytorelyonICTtodifferentiatethemin marketsagainsttheirlargercompetitors(the3rdlevelonthemodel),butahigherproportion oflargerorganizations(16%)haveICTcontributingatthe4thlevelofthemodel(innovating). 45%ofsmallorganizationsuseICTmerelytoimprovespecificbusinessprocessesratherthan inamoretransformationalway.However,theseorganizationsalsoplantorampuptheir externalICTspending,indicatingtheyintendtodrivechangeandcompetitivenessthrough increasedICTinvestment(SeeICTBudgets). ALL 15% 10% 40% 35% <100 11% 16% 45% 27% 100499 13% 15% 35% 38% 500+ 16% 9% 28% 47% NotDiscl. 16% 8% 42% 34%

Innovating Differentiating Improving Delivering

The role of CXOs in driving ICT-led innovation

TheCEOistheleadershipteammember(outsideIT)whomostoftendrivesICTledinnovation.

NosurprisethattheCIOistheexecutivemostlikelytobeproactivelydrivingICTled innovationintheorganization(34%saytheCIOdoesthistoagreatextent,and27%saya lot). SomereadersmaybesurprisedtheCEOisthesecondmostinvolvedexecutiveindrivingICT ledinnovation(25%saytheCEOdoesthistoagreatextent,and22%sayalot).Thismay contrastwiththereceivedwisdomthattheCMOistodayaleadingplayerindrivingICT,and isindeedstartingtotakeoversomeICTbudgets. Infact,theCMOislessinfluentialinAsiawithbusinessessayingtheCOO,CustomerService LeaderandSalesdirectoraremoreactiveinICTinnovationsthanistheCMO.

P a g e |12IT Priorities Asia 2013

CEOs active involvement is a big factor

ActiveleadershipandsponsorshipfromtheCEOisvitalforanyorganizationseekingtoextract realvalueandcompetitiveadvantagefromICTinvestment.

OrganizationswheretheCEOisproactivelydrivingICTledchangearealmosttwiceaslikelyto reportthattheirbusinessisleveragingICTatthehighestlevel(innovating)inafourlevel hierarchy.20%ofsuchbusinessessaytheroleofICTisinnovating,comparedtojust12%of businesseswheretheCEOisnotproactivelyinvolved. ThechartshowsthelevelatwhichICTcontributestoanorganizationfortwotypesof businessesthosewheretheCEOisproactivelydrivingICTledchangealotortoagreat extentcomparedtobusinesseswherethatsnotthecase.

P a g e |13IT Priorities Asia 2013

CEO involvement in ICT impacts business success

WhiletheactiveinvolvementoftheCEOandotherClevelexecutiveshelpsdriveICT performance,itisalsoclearthatICTsabilitytodeliverinnovationandnotjustservicesfeeds directlyintooverallbusinessperformance.Thatmakesthecaseforexecutiveleadershipfrom outsidetheICTgroupevenmorecompelling

OrganizationswheretheCEOisproactivelydrivingICTledchangearemuchmorelikelytobe performingbetterthanthosewheretheCEOisnotsoinvolved. 33%ofsuchbusinessessaytheyresignificantlyoutperformingindustrypeers,comparedto only19%ofotherbusinesseswherebusinesssuccessismostlymediocre.

P a g e |14IT Priorities Asia 2013

CXO involvement also important

TheactiveinvolvementofotherClevelexecutivesinICTledchangealsoproducessignificant benefits.Combined,thelasttwofindingsleadustoconcludethatorganizationsinwhichIT remainsanautonomousislandareindangeroflongtermICTunderperformanceandofnot maximisingtheirreturnonICTinvestment

Organizationswhereaminimumof3CXOsproactivelydriveICTledchangearealsomore likelytoreporttheyreleveragingICTatthehighestlevel(Innovating)inafourlevel hierarchy.20%ofsuchbusinessessaytheroleofICTisinnovating,comparedto16%of businesseswhere3CXOsarenotproactivelyinvolved. OrganizationswiththreeormoreCXOsproactivelydrivingICTledchangearealsomorelikely tobeatthethirdlevel(differentiating). ThisleadsustoconcludethatorganizationsinwhichICTappearstobeperformingwelltoits ownmetrics(forexample,servicemeasures)needtothinkmorebroadlyabouthowICTis performingindrivingbusinesssuccess.

P a g e |15IT Priorities Asia 2013

ICT Budgets
ICT external spending in 2012
44%ofrespondentsreportICTexternalspending(i.e.notincludingICTstaffsalariesand internalcosts)asUS$99Korlessinthepastfinancialyear).Thisreflectsthespreadof organizationsizesinAsia,andinthesampleforthisstudy.

16%hadexternalspendingofUS$100Kto$999K,and12%spentbetweenUS$1mand$49m. 5%ofrespondentshadexternalbudgetsofUS$50mandabove,while23%ofrespondentsdid notknowtheircompanysoverallICTexternalbudgets.

P a g e |16IT Priorities Asia 2013

ICT External Spending in 2013 to grow by 23% on average

SmallorganizationsareexpectingtoincreasetheirexternalICTspendingmorethanmedium andlargeorganizations,indicatingboththattheyarecomingoffalowerbaseofservice deliveryandknowtheyneedtoimprove.

Onaverage,respondentssayexternalICTspendingwillincreasein2013by23%comparedto 2012. Thepercentageincreaseswillbesmallestinlargerorganizations(thosewith500+staffwill have19%increases)andlargestinsmallbusinesses(23%forbusinesseswithlessthan100 staff).

RespondentssaytheirexternalICTspendingincreasesaremorewidespreadin2013,compared to2012,thantheywereinthe2012studycomparedto2011(seechartover).

Morethantwothirds(67%)reportplannedspendingincreasesof10%ormore.37%willget 20%ormore. Only9%willhavereducedexternalspendingin2013.

P a g e |17IT Priorities Asia 2013

Spending increases more widespread in 2013 compared to 2012

Threequarters(75%)ofbusinesseswillincreaseexternalITspendingin2013comparedto2012. Thecorrespondingsurveyin2012reportedthat60%hadincreasedbudgets.Theproportionof businesseswithincreasesthisyearisalmostdoublethatfromthe2012ITPrioritiesstudy.

P a g e |18IT Priorities Asia 2013

Business Profile
The competitive positioning of respondent businesses
Thereispossiblyamisperceptionamongtherespondentsoverthecompetitivepositioningof theirorganizations.Halfsaytheyareoutperforming,andyetathirdmoresaytheyareonapar withtheirpeers.Theycantallberight,althoughtheimbalanceintheanswersisalsopartly duetothenatureofthesamplewheremoreofthesuccessfulbusinesseshaveprobably responded(becausetheyarekeentoseehowtheycomparetotheirpeers).

Onehalfofrespondentssaytheyreaheadofthecompetition26%aresignificantly outperformingindustrypeersand24%areslightlyoutperforming. Justoveronethird(36%)saytheirperformanceisaboutthesameaspeers 14%saytheyreunderperformingeitherslightly(9%)orsignificantly(5%) Inreality,moreorganizationsmaybeunderperformingthaneitherrealiseoradmithere. Theirfailuretoaccuratelygaugethismustbeariskfactorfortheirbusinessesasitcouldbe readtoindicateadegreeofcomplacencyabouttheirrelativeperformance

63%oflargeorganizationssaytheyareoutperformingtheirpeersandanother28%saytheyare onaparwiththeirpeers

Smallandmediumsizedorganizationsarerathermorecriticaloftheirownperformancethan largeones. ALL 26% 24% 36% 9% 5% <100 15% 31% 38% 9% 7% 100499 18% 30% 43% 10% 0% 500+ 16% 47% 28% 6% 3% Notdiscl. 30% 20% 35% 9% 6%

Significantlyoutperforming Slightlyoutperforming Sameasindustrypeers Slightlyunderperforming Significantlyunderperforming P a g e |19IT Priorities Asia 2013

Annual revenues
Therevenuesofrespondentbusinessesspanawidespectrum.

24%ofrespondentshaverevenuesaboveUS$20m(9%areaboveUS$1bn). Inthemiddlerange,21%haveannualrevenuesbetweenUS$1mto$19m. ReflectingthedistributionofbusinessesinAsianeconomies,30%haverevenuesoflessthan US$1m.

P a g e |20IT Priorities Asia 2013

Datacentre

Role with responsibility for Datacentre

CIOsandCTOsholdthekeys SeniorITManagement(e.g.CIOs,CTOsandITManager)haveresponsibilityfor datacenterin52%oforganizations,andITinfrastructurestaffholdthatrolein23%of businesses. Executivemanagementanddepartmentheadstogetherholdswayoverthe datacentrein7%ofcompanies.ThesearetypicallyClevelexecutivesofsmallerfirms.

P a g e |21IT Priorities Asia 2013

Datacentre budget in 2013 v. 2012

DatacentrebudgetshowshighestgrowthacrossITcategories AsianbusinessesreportthatexternalICTspendingondatacenterswillgrowby24%in 2013.That'sthebiggestgrowthinbudgetacrossthecategoriessurveyedinthestudy. Thespendingincreaseissimilaracrossallsizesofbusinessthatdisclosedtheir businesssize. Thisisinlinewiththeongoingactivitytotransformdatacentersreportedinthis researchstudy.ItalsoreflectsGartnerspredictionofgrowingdatacenterspending intheAsiaPacific(Gartnerpredictsagrowthindatacenterspendingof9.5%to US$28.6millionin2013aboveitspredictionofa8%riseinoverallITexpenditure)

P a g e |22IT Priorities Asia 2013

Most important datacentre project in 2013

Servervirtualisationseenaskeytoperformance Servervirtualizationsarethemostimportantdatacenterprojectsthisyearfor30%of organizations. Thetopresultisinlinewithgrowinginterestinthesoftwaredefineddatacenter. Secondonthelistaremanagedservices/colocationinitiativesratedmostimportant by13%ofrespondents. Bottomchoicesaretheimplementationofhybridcloudandpubliccloudwithonly 5%ofrespondentssayingthesearethemostimportantdatacenterinitiative.

P a g e |23IT Priorities Asia 2013

Business objectives of the most important datacentre project

Datacenterprojectsheavilyfocusedoncostobjectives. Almostonehalf(49%)ofrespondentsciteacostrelatedobjectivefortheirmost critical2013datacenterproject. 20%ofAsianbusinessesaimtoachievecostefficienciesthroughbetterhardware utilization;16%saytheirprimaryobjectiveistocutcostsinthebusinessgenerally; and13%arelookingforcostefficienciesthroughautomationinthedatacenter. Thefocusonrelievingcostpressuresandimprovingproductivitycomesagainsta backdropoflingeringglobaleconomicuncertaintyanddownwardpressureon businesscostsgenerally,andalsoonITbudgets. Thesestatedprioritiesreflectthegrowingdesireoforganizationstospendlesson maintainingtheirITinfrastructure,andshiftthosesavingsintoITthatbuilds competitiveadvantage.Thatiscongruentwiththe13%whoreporttheprimary objectiveoftheirdatacenterprojectsistoincreasesales. Continuingwiththesalestheme,9%saytheirdatacenterprojectobjectiveisto developnewwaysofconnectingwithcustomers,and10%sayitstobuildamore agilebusinessmodel.

P a g e |24IT Priorities Asia 2013

Current Implementation Status

Bigpushtovirtualiseservers 41%oforganizationshavecompletedvirtualizationinitiatives,andafurther32% haveaprojectunderway.Whenthelattergroupcompletesthoseprojects,around threequarters(73%)ofAsianbusinesseswillhavevirtualizedtheirservers. Overonequarter(29%)ofcompanieshavevirtualizedstorage,and25%have virtualizedtheirnetwork,whileonefifthhaveimplementedmanagedservicesorco locationmodels. Cloudprojectsreceivedtheleastattention,withtheimplementationofahybridcloud modelatthebottomofthelist,withonly10%offirmshavingdonesoalthough another24%rollingitout.

P a g e |25IT Priorities Asia 2013

Future Implementation / upgrade plans

Virtualisationseenaswayforward Whileserverandstoragevirtualizationprojectswillbetotheforein2013,agrowing proportionofbusinesses(32%)willbevirtualizingtheirnetworksin2013,aswillthe proportion(28%)whoarevirtualizingdesktopsandlaptops. Theprojectwiththeleastinterestwastheimplementationofthepubliccloudwith only20%offirmspursuingthisin2013. Bytheendof2014,around1in2companieswillhaveembarkedonavirtualisation implementationorupgradeprojectandmostlikelywilldosotodrivecost efficiencies

P a g e |26IT Priorities Asia 2013

Extent of virtualisation

Mobiledeviceshavemostroomtobevirtualised WhileincreasingnumbersofAsianbusinessesarevirtualizingdatacenter components,thatdoesntmeantheyhavevirtualizedalltheirhardware.Onaverage, businesseshavevirtualized41%oftheirserverenvironment,38%ofstorageand34% oftheirnetworkinfrastructure. Thesegmentwhichreceivedtheleastattentionistablets/smartphoneswithonly23% offirmshavingvirtualizedthosedevices.ThatwillmostlikelyincreasewiththeBYOD trendbecomingmoreprevalent.Allowingemployeestodosoisincreasinglyseenas awaytoretaintalent.

P a g e |27IT Priorities Asia 2013

Cloud
Role with responsibility for private cloud
SeniorITmanagementhavebiggestsayinprivatecloud SeniorITManagementownprivatecloudinthemajorityoforganizations(55%), whilein18%ofbusinessestheresponsibilitysitswithanITInfrastructurerole. In10%oforganizationsseniormanagement(i.e.Clevelstaff)holdresponsibility. Thatstypicallyinfirmswithfewerthan100employees.

P a g e |28IT Priorities Asia 2013

Role with responsibility for public cloud

CIO,CTOmostcommonlymanagepubliccloud Typically,thesamejobrolesholdresponsibilityforpubliccloudastheydoforprivate cloud. ThereisnoapparentchangetoamoredevolvedmodelwhereCXOsandLineof BusinessheadstakedirectresponsibilityforSaaSapplicationsolutionsspecificto theirfunctions.Insimpleterms,thissuggeststheresponsibilityforacquiringand managingserviceslikeCRMandfinanceapplicationsviapubliccloudrestslargelywith theCIOratherthanthesaleschieforCFO.

P a g e |29IT Priorities Asia 2013

Cloud External ICT spending 2013 v. 2012

Smallestbudgetincreaseamongallcategories Theaverageincreaseinthecloudbudgetin2013is16%. Averagespendingincreasesarelower(13%)inlargerorganizations(500+staff). Thespendingsentimentoncloudisthelowestamongthesixcategoriesinthesurvey. ThisreflectsotherfindingsshowinghowongoingandplannedITprojectsare generallymoregearedtowardsvirtualizationofhardwareinsteadof(orasaprelude to)clouddeployment.

P a g e |30IT Priorities Asia 2013

Most important cloud project in 2013

Privatecloudmostsignificantinitiative Privatecloudprojectsaremostimportantin2013.Almosthalftheorganizations (44%)workingoncloudprojectsrateprivatecloudtheirmostimportantcloud initiative.Thesearetypicallyembracedmostbydatasensitivesectorssuchas financialservicesandhealthcare. However,thecombinedfocusonpubliccloudvariants(IaaS,PaaS,SaaS)showsthats alsoamajorfocus33%oforganizationsrateoneofthepubliccloudvariantsastheir mostimportant2013cloudinitiative.Whenwesumtheproportionsprioritising publicandhybridcloud,52%ofbusinessessaysomeformofpubliccloudisimportant totheirbusiness. Interestinhybridcloudimplementation(19%)wasrankedsecond,andtheresult echoestheviewsofsomeindustrypunditswhopredict2013tobeyearofthe hybridcloudduetoanincreaseinvendorofferingsandsupport.

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Business objectives of most important cloud project

Costefficienciesthemaindriver Businessessaycostreductionsarethemostimportantobjectivesfortheirmost importantcloudproject.22%aimtocutcostsinthebusinessgenerally,17%are lookingforcostefficienciesthroughbetterhardwareutilisation,and10%arelooking forcostefficienciesthroughautomationinthedatacentre. 16%aretargetingincreasedsalesmostlikelythroughtheuseofSaaSappssuchas CRM,butpossiblythroughtheredeploymentofcloudinitiatedsavingstoother projects. Businessesagilityisthekeyobjectiveforcloudprojectsfor15%oforganisationsas theylooktotakeadvantageoftherapiddeployment,scalabilityandpayasyougo fundingmodelsofcloudarchitectures.

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Current Implementation Status

Privatecloudapriority OrganizationshaveprioritisedprivateCloudthusfar,withonehalfhavingeither completedanimplementationorpartlydoneso(16%haveimplemented,34%have animplementationunderway). SoftwareasaService(SaaS)isthemostcommonPublicCloudapproach,andits likelymanyofthesebusinessesuseapplicationssuchasemailandCRMviaSaaS models. Aroundtwothirdsofbusinesseshavestilltoadoptpubliccloud. TheleastpopularapproachisPlatformasaService(PaaS)withonly8%having implementeditandanother24%rollingitout.

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Future Implementation / upgrade plans

Cloudtogomainstreamin2014

BetweenonefifthandonethirdoforganizationsaredoingaCloudprojectthisyear. Thisincludesbusinessesthathaveaprojectunderwayandarecontinuingthe implementationin2013,andbusinessesthatarestartingaprojectsometime betweenJanuaryandDecember2013). 2014istheyearwhencloudbecomesmainstream.ByDecember2014,69%willhave implementedprivatecloud,andjustunder50%willhaveadoptedSaaS,IaaSand Hybridmodels.

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IT Security

ResponsibilityfallsonseniorITmanagement Withthesecuritylandscapeincreasinglycomplex,organizationshavetaskedtheirseniorIT managementwithultimateresponsibilityfortheITsecurityportfolio. SeniorITManagement(specificallyCIOs,CTOsandtheirdirectreports)haveresponsibilityfor ITSecurityinonehalfoforganizations.24%givetheresponsibilitytoExecutiveIT Management(CIOs,CTOSs),20%totheITDepartmentmanager,and3%toeachofIT ConsultantandProjectManagement. Some28%oforganizationsbelievetheirsecuritypostureiscloselylinkedtoinfrastructure, assigningresponsibilityinthisareatotheirITinfrastructurestaff. In11%ofbusinessesITsecurityliesinthehandsofasecurity compliance/administrator/manager.Thisismorelikelyinlargercompanies15.3%of businesseswith500plusstaffdosocomparedto8.6%ofbusinesseswithlessthan100staff. For7%ofrespondents,seniormanagement(i.e.aClevelstaffmember)holdresponsibility forthecompany'sITsecuritywellbeingin4%itstheCEO,CFOetc,andin3%the departmenthead/director.

ThisfindingishearteningsinceindustrywatchersrecentlymentionedinaZDNetreportthatAsian companiesaregenerallyunpreparedforcyberattackscomparedtotheirAmericancounterparts duetoalackofawarenessfromseniormanagement.Theysayitwilltakeatleast10yearsbefore AsiancompaniescatchupwiththeU.S.intermsofcybersecurityreadinesspartlyduetolower awareness.

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Formalizedsecuritypoliciesstillnotabusinessnorm Despiteincreasinglysophisticatedthreatsandrisingadoptionofbringyourowndevice(BYOD)in theworkplace,32%oforganizationsintheregionstillhavenotestablishedpropersecurity policiestosafeguardtheircompany'sITinfrastructure.Also,amajoritydonothaveISO27001 certificationforInformationSecurityManagementSystem. Onethirdofbusinessesdonthaveaformalsecuritypolicy Mostcompanies(68%)haveaformalITsecuritypolicyinplace. However,almostonethird(32%)oforganizationsdonothaveaformal,documentedsecurity policy.Thesebusinessesriskthetheftofimportantcompanydata,andalsoareputtingtheir stakeholders(customers,suppliers,etc.)inharm'sway. EstablishingformalsecuritypoliciesisespeciallypertinentintheBYODerawheremore employeesarenowusingtheirpersonaldevicestocarryoutworkrelatedtasksandaccess thecorporatenetwork.Securitypoliciesshouldincludeguidelinesonwhatkindsofappsare offlimits,whichdevicesthecompanyiswillingtosupport,andmaintainingsecuritypatches.

OnlyafeworganizationshaveISO27001securitycertification Only20%oforganizationshaveISO27001certificationforInformationSecurityManagement System(ISMS),and14%arecurrentlyworkingonacquiringthiscertification. Twothirds(66%)ofbusinessesdonthaveISO27001certification.

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Businesstospendmorein2013tobeefupITsecurity It'sperhapscomfortingtoknowwhilenoteverycompanyhasformalizedsecuritypolicies,many indicateplanstoincreasethespendingonITsecuritythisyear.Midsizeandsmallerbusinesses aremakinglargerITsecuritybudgetincreases,whichiscatchupactivityonthelarger organizations. Overall,respondentssaytheirexternalspendingonITsecuritywillincreaseby21%thisyear comparedto2012. Midsizedbusinesses(100to499staff)onaveragewillhavethelargestpercentageincreases at25%. Theaveragespendingincreaseislowest(18%)amonglargerorganizations(500+staff).

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Securityzoomsinonthenetwork Companiesarelookingtoprotectthenetworkastheirkeysecurityfocus,whichisinlinewith advicecommonlydishedoutbyITsecurityvendors.However,withtherisingadoptionofBYOD, somebelieveattentionshouldalsobegiventoprotectingemployees'mobiledevices.Increasingly so,itwillbenecessarytoprotectboththedeviceandnetwork,alongwithenforcinguserpolicies, tokeepthecorporateinfrastructureanddatasafe. Almostonethirdofbusinessessaytraditionalnetwork/perimetersecurityistheirmost importantITsecurityinitiativethisyeardespitetherangeofnewsecuritychallengesthey face. Reflectingthewidespreadadoptionofvirtualisation,onequarteroforganizationssay securityforvirtualisedenvironmentsistheirmostimportantfocus. TheemergenceofmobilityandBYODarereflectedinthe16%whosaysecurityformobile devicesistheirmostimportantITsecurityfocusin2013. Otherbusinesses(14%)aregivingattentiontocloudsecurity,specificallyprivateandhybrid cloudarchitectures.Another7%areputtingtheirsecurityfocusonpublicclouds.

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Securitygoalsalsolinkedtosales Securityinitiativesaremostlyundertakenaspartofthecompany'saimtobeefuptheoverallICT infrastructure.Others,though,indicatetheirsecurityprojectsarecarriedouttoboostsales. Some37%ofrespondentssayimprovingsecurityoftheICTenvironmentisthekeyobjective fordeployingtheirmostimportantITSecurityproject. 13%sayincreasingsalesisakeyobjective.Thatmayappeararathersurprisinganswer,butit likelyreferstoimprovingthesecurityofonlinetransactionswithcustomersanoutcome thatwillincreasecustomerconfidenceandconsequentlysales. Businessesarealsolookingforcostefficienciesintheirsecurityimplementations.

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Perimetersecurityandsecurityforprivate/hybridcloudmostwidelydeployed Whilethemajorityhaveeitherdeployedorarecurrentlydeployingnetworksecurity,fewerhave donelikewisetosecuretheircloudinfrastructurethusfar.However,overonehalfof organizationswithprivateandpubliccloudhaveacloudsecurityimplementationinprogress. Themajorityofbusinesses(62%)haveimplementedorpartlyimplemented(24%)traditional network/perimetersecurity. But14%mostlysmallerbusinesseshavenotyetdoneso(22%ofbusinesseswith<100 staffhavenotimplemented). 30%oforganizationsthatuseprivate/hybridcloudhavedeployedsecuritycapabilities,and 51%areintheprocessofimplementingsecurityfortheirprivate/hybridcloud.Thatsthe sameproportionofbusinessesimplementingsecurityforpubliccloud. Thereisalsoactivityinimplementingsecurityforthosewithvirtualizedenvironments.28% havealreadyimplementedand39%havepartlyimplementedorhaveaprojectinprogress. Forthoseusingmobilecomputing,25%haveimplementedmobiledevicemanagement,and 40%areimplementingaproject,leaving35%yettodoso.Thisissomewhatworryingamid theincreasingBYODtrend.Asmoreemployeesusetheirpersonalmobiledevicestoaccess corporatedataandnetwork,companiescanillaffordtoneglecttheneedformobilesecurity tools.

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Future implementation / upgrade plans

Mostbusinessesgivecloudsecurityapass Asianorganizationshavealotofprojectactivityontheirplatesthisyear:overone third(37%)haveanimplementationorupgradefornetwork/perimetersecurity. Another21%willstretchsuchplansinto2014. 32%willimplementsecurityforvirtualizedenvironmentsthisyear,with22%planning similarprojectsfor2014. Aroundonequarterwilldosoformobiledevicemanagement,but47%havenoplans toimplementsuchtools.Again,theseeminglylackofplansinthemobilesecurity spaceisworrying,giventheincreasingadoptionofBYOD. Mostcompaniesalsoarechoosingtogivecloudsecurityamiss,with54%and61% havingnoplanstoimplementsecuritytechnologiesforprivate/hybridandpublic clouds,respectively.Thisisespeciallyworryingassecurityvendorscautionthatcloud computingbringsalonghighsecurityrisksincludingdatabreachesandloss,heightens theriskofinsiderthreats,aswellasincreasesthepossibilityofdenialofservice attacks.

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Analytics
Role with responsibility for Analytics

Dataintelligencegoestothetop Muchhasbeensaidaboutanalyticsandbigdataandtheirpotentialtoprovidericher insightsintocustomers,marketsandthegeneralbusinessenvironment.Small wonderthenseniorITexecutiveshavebeentaskedtooverseetheircompany'sdata analytics. SeniorITManagementhaveresponsibilityforanalytics/bigdatain50%of organizations. ITInfrastructurestaffhaveresponsibilityin20%oforganizations,andsenior managementin9%. In9%ofbusinesses,ITdevelopmentrolesareresponsibleforanalytics/bigdata.

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Analytics External ICT spending 2013 v. 2012

Allcompanysizesupspendingonintelligence
Overall,externalspendingonanalytics/bigdatawillincreaseby20%thisyearcomparedto 2012.Thisisprettymuchthesameacrosstheboard,regardlessofcompanysize. Thebudgetsatmediumandlargebusinesswillgoupby19%whilesmallerbusinesseshave setasideslightlymore,increasingtheiranalytics/bigdatabudgets20%.

Itisclearthatbigdataanalyticsaren'tjustforlargeenterprises.Softwarevendorsincluding Intuit,SAS,IBMandOracleallofferservicesthattargetsmallandmidsizebusinesses. MarketestimatesputglobalspendingonbigdataatUS$34billionthisyear,upfromUS$28billion in2012.

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Most important Analytics project in 2013

Traditionalanalyticstoolsstillthepreferredway
Despitethegrowingnumberofnewanalytictoolstoutedbyvendorstotapbigdata, companiesintheregionarestickingtothetriedandtested.Themajorityarechoosingto focustheiranalyticsinitiativesontraditionaltools. 38%ofbusinessessaytraditionalanalyticstools(e.g.OLAP,RDBMSanddatawarehouse)are theirmostimportantanalytics/bigdatainitiativesthisyear. Almostonethird(31%)saynextgenerationdatawarehouseprojectsaretheirmost important,indicatingthesehavemosttractioninthenewbigdatamarket. ApacheHadoopandpackagedbigdataappliances(oftenincorporatingHadoop)are consideredimportantbyfewerbusinesses(13%and11%respectively).

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Business objectives of most important Analytics project

Gainingagilitythroughintelligence
Bygeneratingintelligencefromtheirdata,companiesarehopingtobeabletomovemore quicklyandboostsales. Themostimportantoutcomesforanalytics/bigdataprojectsare:buildamoreagilebusiness model(16%),increasesales(14%),cutcostsinthebusiness(14%),andbetterunderstand markets(13%). Itssurprisingthatincreasingcustomerintimacywasratedmostimportantoutcomebyno morethan5%ofbusinesses,despitetheoftcitedbenefitofimprovingcustomerserviceand satisfactionthroughbetterinsights. Atalate2012ZDNetpaneldiscussiononbigdata,panelistsdescribeddataasthe"new naturalresource"forSingaporecompanies.Itprovidescompetitiveadvantageandoffers anotherlevelofinsightstosupportbusinessdecisions.Panelistsaddedthatthetruepotential ofbigdatacomesfromtheabilitytocombineanorganization'sowndatawithdataoutside thecompany'sfirewall.However,questionsremainovertheextenttowhichcompaniescan justifiablytapthedata,amidconcernsoveruserprivacyanddataregulations.

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Current Implementation Status

Mosthavesomeformofanalytics
40%havealreadyimplementedtraditionalanalyticstoolsandafurther31%havean implementationunderway.Whenthesearecompleted,closetothreequartersofbusinesses willhaveanalyticscapabilitiesinplace. Packagedbigdataappliancesandnextgenerationdatawarehousesareeachimplementedat 14%oforganizations.Closetoonethirdhaveimplementationsofthelatterunderway. Hadoopisimplementedat10%ofbusinesses,althoughimplementationsareproceedingata further25%.VendorssuchasIntel,EMCandRedHatseemarketopportunitiesinHadoop. Intel,forinstance,recentlylauncheditsdistributionforHadoopintheAsiaPacificregion, singlingouttelcosandgovernmentsastwosegmentswhichwillbenefitfromtheopensource datatool.

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Future Implementation / upgrade plans

Upgradeplansfocusontraditionalanalytics
Onethirdofbusinessesareworkingonaprojectintraditionalanalyticstoolsthisyear,with another23percentplanningasimilarinitiativefor2014. 20%oforganizationswillexecuteprojectsthisyearinnextgenerationdatawarehouses, Hadoopandpackagedbigdataappliances In2014,between20%to26%ofbusinesseswillworkonprojectsusingnontraditional analyticstools.

Industryanalystsareexpectingfocusonbusinessanalyticstogrow,andsoftwarevendorsalsoare uppingtheirplayinthebusinessanalyticsspace.IBM,forinstance,hasunveiledplanstosetupa businessanalyticsinnovationcentreinThailandwhichitsayswillofferhighvalueanalytics productstolocalcustomersandthoseintheSoutheastAsianregion. TheriseofsocialnetworksinAsiasuchasChina'sSinaWeiboalsohaspromptedtheneedfor multilingualanalyticsandnativelanguagedataprocessingcapabilities.Salesforce.com,for example,hassaiditisfocusingheavilyonmultilingualanalytictoolsandrecentlyincluded20 analyticsserviceproviderstoitsMarketingCloudplatformwhichwilloffernativelanguage analytictools.

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Networking / Communications

Role with responsibility for Network / communications

SeniorITpeopleownthenetwork

SeniorITManagementareresponsiblefornetworkingandcommunicationsin46 percentoforganizationssurveyed,followedbyITinfrastructure(31%)and,senior management(7%).

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Network / communications budgets 2013 v. 2012

Networking/communicationsbudgetsupbyonefifth Overall,respondentssayNetworking/Communicationsbudgetswillincreaseby21%thisyear comparedto2012. Midsizedorganizations,(100to499staff)saytheirnetworking/communicationsbudgetswill riseby22%in2013.Smallercompanies(lessthan100employees)expecttheirbudgetsto riseby21%. Budgetsatorganizationswithmorethan500employeeswillriseby20%.

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Most important Network / communications project in 2013

Networkmanagementprojectskeyin2013 Overonequarterofbusinesses(26%)saynetworkmanagementistheirmost importantnetworkinginitiativethisyear.Thisistwicethenumberofthesecond mostcommonprioritycollaborationtools(12%). WANoptimization,networkvirtualizationandloadbalancingareeachpriority projectsfor10%ofbusinesses. IDC'slatestresearchonvideoconferencingequipmentrevenue,immersive telepresencesystemsrevenuefell32.8percent.Simplecollaborativetoolssuchas Webmeetingsandscreensharingseemtobeenoughtosatisfyofficeworkers.

ThelowpriorityputonTelepresencesupportsrecentmarketanalysis.Accordingto

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Business objectives of most important Network / communications project

Costmanagementinvogue Organizationssaytheirprimaryobjectivefromnetworkinginitiativesiscost management.20%saycostefficienciesfrombetterICTutilizationisimportant,and 18%aimtocutcostsinthebusiness. Buildingamoreagilebusinessmodel(10%ofrespondents)andincreasingsales(also 10%)arealsocommonobjectives. Withtheuncertainglobaleconomy,it'snosurprisecuttingcosts,ensuringcost efficienciesandincreasingsalesarethekeyprioritiesofanytechnologiescompanies investin.

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Current Implementation Status

Networkmanagementremainsabigfocus
Themostwidelydeployedtechnologyisnetworkmanagement.46%havealready implementeditand37%sayitispartlyimplemented. Loadbalancingandcollaborationtoolsarealreadywidelydeployedorpartlydeployed,anda majorityofbusinesseshavedeployedorpartlydeployedVOIP(62%)andWANoptimization (55%). OnequarterhaveimplementedareintheprocessofimplementingEthernetfabricand networkvirtualization. LessthanonequarteroforganizationshavealreadyimplementedTelePresence,network virtualizationandsoftwaredefinednetworking(SDN),butaroundthesameproportionshave animplementationunderway.

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Future Implementation / upgrade plans

Networkmanagement,collaborationtools,loadbalancingarethe2013priorities In2013,Networkmanagementprojectsaremostprevalent(40%aredoingaproject), followedbycollaborationtools(32%)andloadbalancing(29%). Asthesearecurrentlythemostwidelydeployednetworkingtechnologies,itsclearthat implementationsareneveroneoffs.Likemanytechnologies,itsoftennecessaryto upgradeorextendthecapabilitiesofdeployedcapabilities. VOIPisalsoonthemenufor2013,with28%oforganizationsdoinganimplementationor upgrade. Softwaredefinednetworking(SDN)andVoWLANprojectsaretheleastcommon,with18%of organizationseachplanningtoimplementorupgradethetechnologies.Only21%and20%of organizationsplantoimplementSDNandVoWLANrespectively. SDNisoneoftwotechnologies,togetherwithVoWLAN,thathavelowestprojectactivitythis year.AccordingtoAccenture'sTechnologyVision2013report,SDNrequirestoolsand frameworksthatarestilldeveloping.Implementationisalsotimeconsumingandexpensive. Thiscouldbedeterringcompaniesfromdeployingit.

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End User Computing

Role with responsibility for end user computing

48%oforganizationsstateseniorITManagementareresponsibleforendusercomputing, whileITinfrastructurestaffdosoin13%ofbusinesses,andITservicein11%.

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End user computing External ICT spending 2013 v. 2012

Endusercomputingbudgetsgoingupby21%

Overall,respondentssaytheirexternalspendingonendusercomputingwillincrease by21%in2013comparedto2012. Smallandmediumbusinesseswillincreaseby21%,whilelargerbusinesseswill increasebudgetsonendusercomputingby19%.

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Primary desktop/laptop operating system

BusinesscomputingcontinuestorelyonMicrosoftsoperatingsystemsforthedesktop/laptop. 95%ofbusinessessaytheirprimaryoperatingsystemsisfromMicrosoft,with61%using Windows7. WindowsXPisstillthemainoperatingsystemin27%ofbusinesses,whileWindows8has madelimitedheadwaysinceitslaunchinlate2012. Itisnotsurprisingthatonly5percentoforganizationsareusingMicrosoftWindows8, whichwasonlylaunchedinthelatterhalfof2012.Windows8hasnotbeenwellreceived eitherbyconsumersorenterprises.Itstouchversionismorepopularamongusers comparedtoitsdesktopversion.Evenwhentouchversionsareusedinorganizations,itis generallyinrolessuchassales,whicharenotdeskbound. Linux(3%)andApple(2%)predominateinveryfeworganizations. ThepopularityofLinuxoverWindowsVistaandAppleOSXcouldalsobeduetoits operatingsystemsbeingusedinNexus7,whichhasbeenadoptedbysomebusinesses.

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Current Implementation Status

DesktopPCsandtraditionallaptopsremainthedominantendusercomputingtool. Desktopsandtraditionallaptopsaredeployedinmorethan70%ofbusinesses. Tablets(deployedin28%ofbusinesses)outnumberultrabooks(23%),andthatwillcontinue tobesoaftercompletionofdeploymentsinprogress. Laserprintersaredeployedinmoreorganizationsthaninkjets. Smartphoneandtabletdeploymentsarethetwomostcommoncurrentimplementations. ThisreflectstheincreasedutilisationofBringYourOwnDevice(BYOD)policywithin organizations,whichlookforproductivityandefficiencygainsamongemployees. TabletsandsmartphonesbothoutnumberUltrabooks.Whilemanybusinessesperceive Ultrabookperformancetobegoodthetradeoffinbatterylifecanbeaturnoffforsome organizations. LaserprintersarebeingimplementedmorethanInkjetprinterswithinorganizationsdueto efficiencyandquality.ThisisconsistentwithrecentIDCreportshowinglaserprintergrowth of0.8percentinthesecondquarterof2012whileinkjetprintershipmentsfell12.7percent, thelargestdropsinceQ32009.IndeedLexmarkisterminatingthemanufacturingofInkjet printers.

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Future Implementation / upgrade plans

BusinessesarentwalkingawayfromDesktopPCsandtraditionallaptopsanytimesoon Almostonehalf46%and45%oforganizationsarerespectivelydoingimplementationsor upgradesofdesktopsandlaptopsprojectsthisyear. 35%ofbusinessesandwilldosmartphoneprojectsin2013,and34%willdotabletprojects. 34%willalsodeploylaserprinters TheleastpopularendusercomputingtechnologiesareinkjetprintersandUltrabooks, adoptedonlyby29%and26%oforganizationsrespectively. Itspossible2014willbeatippingpointforUltrabooksdeploymentsinbusiness.20%have plansforUltrabooktechnologyrefreshandupgradein2014.Thisexceedsthepercentageof organizationswithplansfordesktopandtraditionalPCs/notebookprojects.

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Methodology and Respondents

Introduction
InFebruary2013,ZDNetAsialaunchedtheITPrioritiessurveytoourregisteredmembersvia eDMandonsitepromotionaltactics.Fieldworkcontinueduntiltheendofthemonth.The respondentsareITleadersandITprofessionalswhoregularlyvisittheZDNetAsiaandTech Republicwebsites.

Respondent Demographics
Respondent Location

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Respondent Organization Size

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