Technology Challenges Driving Large Enterprises to a Connected Cloud Suite. An IDC InfoBrief, Sponsored by Oracle October 2018

Transcription

1 Technology Challenges Driving Large Enterprises to a Connected Cloud Suite An IDC InfoBrief, Sponsored by Oracle October 2018

2 In This InfoBrief In July 2018, IDC conducted a global study to assess how large enterprises are evolving in their use of softwareas-a-service (SaaS) systems. The IDC study focused on SaaS workloads, including the number, integration, challenges and benefits of SaaS products and the impact of SaaS to the organization as it matures in its use of SaaS Products. Respondents were the IT and Business C Suite, VP, and Director levels who were either the final decision maker or on the final decision team. This InfoBrief summarizes key findings from this study. UK 22.2% Country of Interviews Canada 11.1% USA 44.4% 20,000 or more, 20% 10,000 to 19,999, 20% Firm size 500 to 999, 10% 1,000 to 1,999, 10% 2,000 to 4,999, 20% Germany 22.2% 5,000 to 9,999, 20% Sponsored by Oracle Page 2

3 Organizations Making Progress Toward SaaS, But Still Slow 83% of organizations utilize all three deployment models of SaaS, On-Premises, and Hosted applications SaaS 0% 6% 2% 83% 2% 6% 1% On-Premise SaaS integration is slowly becoming a critical requirement for enterprises: 43% 45% of SaaS applications are fully integrated with corporate-wide systems of SaaS applications are fully integrated with major Lineof-Business (LoB) applications Hosted Sponsored by Oracle Page 3

4 Fully Integrated SaaS Environments Are Still Rare Many large enterprises have made repeated, disconnected cloud purchases that have left them with a complex portfolio of inconsistent and potentially incompatible solutions that are expensive, cumbersome and not easily leveraged as a whole for strategic advantage. ONLY 5% of large enterprises (defined as 10,000 employees or more) have all their SaaS applications fully integrated with corporate-wide systems. However, the full integration of SaaS with corporate-wide systems is an important goal for 97% of large organizations. As SaaS integration maturity increases, so does importance of integration Tying SaaS to corporate systems is more important than tying to LoB applications. The more mature the organization, the more SaaS integration is considered to be a critical requirement. No SaaS 40%+ SaaS Standalone Apps <40% SaaS Apps Fully Integrated 40-60% SaaS Apps Fully Intergated 60-80% SaaS Apps Fully Integrated 80%+ SaaS Apps Fully Integrated Sponsored by Oracle Page 4

5 SaaS Integration Challenges SaaS applications are slightly more challenging to integrate with line-of-business (LoB) apps than with corporate-wide systems. However As organizations become more mature with respect to integration, both types of integrations are far less challenging. The greatest challenge is integration between SaaS and on-premises applications. 39% find incompatibility between different SaaS providers a challenge. But as more SaaS applications are added, organizations increasingly find compatibility challenges among the different SaaS providers. Less-mature organizations are challenged by incompatibility in SaaS applications from the same provider. Because of the complexity of SaaS Deployment, 50% of organizations find it causes technology investments to be delayed. Where applications are integrated with corporate and LoB systems, only 25% say the SaaS provider offers this integration. Organizations often rely on on-premises integration platforms (21%), cloud-based integration platforms (20%), custom in-house integration (16%), and systems integrators (14%). Sponsored by Oracle Page 5

6 SaaS Integration Benefits Mature organizations that have achieved integration between SaaS applications and corporate-wide/lob applications are able to benefit. Top 3 Benefits of SaaS Integration Improve Efficiency or Throughput Increased Revenues Increased Insights into Operations Mature organizations believe they are better able to: Improve Efficiency or Throughput Increase Revenues Increase Insights into Operations Increase Insight into Customers Increase Market Share Increase Budget Performance TOP 5 LINE-OF-BUSINESS GOALS 16% 15% 11% 9% 9% Improve operational efficiency Improve operational quality Improve customer experience Create new competitive advantage Improve the organization s talent SaaS integration benefits directly correlate to the focus areas needed to support the business in the next two years. Sponsored by Oracle Page 6

7 SaaS Integration Intersects with Technology Initiatives Technology initiatives and SaaS integration projects are driving organizations to rationalize their investments. This means consolidating SaaS solutions with a few strategic long-term vendors and their ecosystems for a connected cloud suite used more broadly and deeply across the enterprise. Top Technology Initiatives in the Next 12 Months: 1. Improving Security 2. Integration 3. Innovation Velocity And the Same Top 2 Are Challenges to These Technology Initiatives: 1. Improving Security 2. Better Integration 43% of large enterprises find that too many independent or non-integrated SaaS systems are a driving factor to their technology execution challenges. Sponsored by Oracle Page 7

8 Connected Cloud Suites Are Tied to Digital Transformation (DX) Initiatives 80% of companies believe they must digitally transform to stay competitive But only 46% of companies have begun building their DX Strategies. More mature enterprises are building DX strategies with a core platform that includes connected cloud suites and innovation accelerators (machine learning/ai, blockchain, IoT, mobile, voice recognition, etc.). PLANNED TECHNOLOGY APPLICATION INVESTMENTS WITHIN THE NEXT 2 YEARS Major investment in Enterprise Performance Management (EPM) 47% Major investment in Customer Experience 47% Major investment in Supply Chain Management 40% Major investment in Human Capital Management (HCM) 37% PLANNED INVESTMENTS OF NEW TECHNOLOGIES Investing now in Mobile Applications 52% Investing now in Big Data 47% Investing now in DaaS (Data as a Service) 41% Investing now in Predictive Analytics 38% Sponsored by Oracle Page 8

9 Enterprises Must Innovate to Stay Competitive All organizations believe they need to streamline and overhaul current processes to stay competitive and be innovative leading to more automated workflows and autonomous application updates. LEADING LINE-OF-BUSINESS INNOVATION GOALS 56% 53% 47% 45% 43% Improve operational efficiency Improve operational quality Improve customer experience Understand our customers better Develop new digital revenue streams Sponsored by Oracle Page 9

10 Executive Summary SaaS Integration Slowly Gaining Importance: 43% of SaaS apps fully integrated with corporate-wide systems 45% of SaaS apps fully integrated with LoB apps Fully Integrated SaaS Still Rare: Only 5% of large enterprises have SaaS apps fully integrated with corporate-wide systems Biggest Challenges: Integration between SaaS and on-premises apps As SaaS apps are added, compatibility challenges increase 50% of enterprises delay technology investment because of SaaS deployment complexity But SaaS Integration Well Worth It: Top 3 Benefits of SaaS Integration Improved Efficiency or Throughput Increased Revenues Increased Insights into Operations Sponsored by Oracle Page 10

11 The Leading Enterprise Technology Combination Connected Intelligent Cloud Suite Tactical SaaS adoption can be costly and frustrating Connected Cloud Suites Too many different, incompatible platforms and approaches In the Age of Cloud, reassess vendors based on a proven ability to deliver full SaaS integration Vendor should be able to provide a head start with innovation and digital transformation Innovation Platform Sponsored by Oracle Page 11