Inadequate IT infrastructure causing three out of five organizations to suffer

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1 EXECUTIVE SUMMARY Today s business environment is both ripe with opportunity and fraught with risk. This dichotomy is revealing itself in the world of IT and throughout boardrooms across the globe like never before. As more mission-critical applications are now deployed on virtualized environments, new approaches are needed to eliminate expansive and debilitating downtime. Fighting today's sophisticated cyber attacks and intrusions calls for a move beyond perimeter protection to intelligence-driven security analytics with monitoring and response capabilities to defend against more advanced threats to the business. Integrated backup & recovery needs to be more effective than ever before to prevent data loss, improve protection and speed time to recovery. To get a pulse on how these dynamics are playing out globally, EMC commissioned independent research company Vanson Bourne to conduct the global IT Trust Curve survey, comprised of 3,200 interviews of 1,600 IT and 1,600 business decision makers from the United States, the United Kingdom, Canada, Brazil, France, Germany, Italy, Spain, Russia, India, South Africa, Australia, Japan, China and the Nordic and Benelux regions. Respondents were employed at companies within ten industry sectors (life sciences, financial services, IT and technology, healthcare, the public sector, manufacturing, retail, energy, media & entertainment and consulting), with 50% working for organizations with employees and the other 50% at organizations with more than 1000 employees. The results reveal deep and far reaching insight into IT preparedness and the benefits an organization can realize through a high level of confidence in IT as well as the possible consequences that result from neglecting organizational IT systems.

2 Inadequate IT infrastructure causing three out of five organizations to suffer Of the 3,200 IT and business decision-makers interviewed, the majority of their organizations (61%) suffered at least one of the following: unplanned downtime (37%), a security breach (23%) or data loss (29%) in the last 12 months. The consequences of these incidents were diverse and highly damaging with the top three overall being: loss of employee productivity (45%), loss of revenue (39%) and loss of customer confidence/loyalty (32%). Loss of revenue is highlighted in particular, with estimated average annual losses of $494,037 for downtime, $860,273 for security breaches and $585,892 for data loss. So what is preventing organizations from achieving greater success in relation to data protection, security and availability? While budget (52%), resource and/or workload constraints (35%) and planning and anticipation (33%) were the top three reasons identified, one in five (19%) specifically noted lack of trust in technology/it as a key limitation.

3 Maturity Curve Respondent organizations were scored on a maturity scale, a model based on moving from primitive IT infrastructure to more progressive strategies and advanced technologies. Those at a more advanced level achieved higher scores in each of the three pillar sections (continuous availability, advanced security and integrated backup and recovery), which all contributed equally to the final maturity score received. The overall result of this model is a bell curve, which was then further divided into four even segments from a low to high score: Laggards (1-25), Evaluators (26-50), Adopters (51-75) and Leaders (76-100). The results show that =more than half (57%) of organizations surveyed fall into the lower maturity categories, Laggards and Evaluators, while only around 8% are currently in the highest scoring group the Leaders. LAGGARDS EVALUATORS ADOPTERS LEADERS Trust breakdown by country and sector Using this model to calculate average scores for the 16 regions and 10 verticals targeted in the study, we see established hierarchies in place. In terms of countries, China leads the way with the United States scoring second. As a whole, the BRICS (Brazil, Russia, India, China and South Africa) countries positioned highly making up three of the top four scores. By contrast, Japan is lagging behind with the lowest average score of all 16 countries surveyed. Additionally, of the six countries most likely to have increased their IT spend in the last year, five are BRICS.

4 MATURITY SCORE BY COUNTRY China 65.2 USA 61.8 South Africa 60.9 Brazil 53.8 Australia 52.8 Spain 51.6 France 51.4 UK 49.7 Canada 49.5 Benelux 49.5 India 49.4 Italy 49.1 Russia 48.7 Germany 48.4 Nordics 43.0 Japan 38.8 Country increased IT spend last year China 81% USA 64% South Africa 68% Brazil 71% Australia 54% Spain 45% France 37% UK 36% Canada 44% Benelux 29% India 79% Italy 48% Russia 58% Germany 50% Nordics 43% Japan 26% With regard to the surveyed verticals, we see that traditionally more regulated industries had corresponding higher levels of maturity. Financial services is at the top, closely followed by life sciences and IT and technology. While consulting lags behind, perhaps the most surprising result was public sector coming in 5th place in the overall ranking. MATURITY SCORE BY INDUSTRY Financial services Life sciences IT and technology Healthcare Public sector Manf. Retail and consumer products Energy Comms, media and ent Consulting 46.1

5 Low confidence in IT can be related to lack of trust maturity A low level of maturity has an impact upon the confidence of senior executives. Just 55% of respondents believe their senior executives are currently confident that they have adequate data protection, security and availability. Maturity dividends Those at the forefront of the curve (the Leaders) are experiencing significant advantages over those further behind. 53% of organizations in the higher maturity segment report a typical recovery time of minutes or less, compared with only 27% across all maturity tiers and 24% among the Laggards. 28% of organizations measure recovery time in minutes or less LAGGARDS EVALUATORS ADOPTERS LEADERS 24% 22% 30% 53% The Leaders are also more likely to be able to recover 100% of their data in the event of data loss, with 76% able to recover everything as opposed to only 44% of Laggards. 55% of organizations were able to recover 100% of data in the event of a data loss incident LAGGARDS EVALUATORS ADOPTERS LEADERS 44% 51% 62% 76% The ability to implement strategic and leading-edge technology projects, for example Big Data analytics, is greatly facilitated by a secure and sophisticated IT infrastructure. 74% of Leaders have fully deployed Big Data analytics, compared with just 8% of Laggards.

6 The IT department vs. the business Just 50% of all business decision-makers surveyed consider IT to be the drivers of a more resilient and secure infrastructure, compared to 70% within IT departments themselves who feel they drive this. This could be explained by IT departments not realizing the full business impact of downtime, security breaches and data loss as, on average, they estimate fewer hours of downtime than their business decision-makers counterparts. BDMs ITDMs Average hours lost from downtime in the last 12 months Concluding summary Ultimately, there are encouraging signs that the majority of organizations sitting at the bottom and middle of the maturity curve are moving in the right direction. Most are planning or evaluating new technology to improve their IT infrastructure and gain the competitive edge that this will enable. While the path is not always an easy one, this study has clearly quantified both the benefits as well as the negative consequences of not improving IT infrastructure. Methodology Survey data is the result of 3,200 interviews of 1,600 IT and 1,600 business decision makers from the United States, the United Kingdom, Canada, Brazil, France, Germany, Italy, Spain, Russia, India, South Africa, Australia, Japan, China and the Nordic and Benelux regions. Respondents were employed at companies within ten industry sectors (including the public sector), with 50% working for organizations with employees and the other 50% at organizations with more than 1,000 employees.

7 To create the curve, IT decision-makers were asked specific questions relating to IT infrastructure in each of the three pillar sections, continuous availability, advanced security and integrated backup and recovery. Within each section, respondents scored points for the sophistication of their organization s existing technology, but not for anything in the planning stages. Each section was scored out of a total of a maximum of 18 points and combined to give a total overall maturity score out of 54. This score was then multiplied by a scaling factor to normalize the curve and give a total score out of 100 points. Once scored, these IT decision-makers were divided into four even segments from a low to high score; Laggards (scoring 1 25), Evaluators (scoring 26-50), Adopters (scoring 51-75) and Leaders (scoring ). The questions that were used to make the model asked about technologies already in place, and therefore the scores were assigned based on how sophisticated the technology that the organization has in place within each pillar actually is. It is from this that we can ascertain the level of trust in IT the organization should have in each of the three pillars, based on the technologies in use. We can then use this to form an idea of the overall IT infrastructure within the respondent organization, and it is from this that we can assign the respondents a trust in IT score relating to the infrastructure that is currently in place, and the questions asked. ABOUT EMC EMC Corporation is a global leader in enabling businesses and service providers to transform their operations and deliver IT as a service. Fundamental to this transformation is cloud computing. Through innovative products and services, EMC accelerates the journey to cloud computing, helping IT departments to store, manage, protect and analyze their most valuable asset information in a more agile, trusted and cost-efficient way. Additional information can be found at About Vanson Bourne: Vanson Bourne is an independent specialist in market research for the technology sector. Vanson Bourne s reputation for robust and credible research-based analysis, is founded upon rigorous research principles and the ability to seek the opinions of senior decision makers across technical and business functions, in all business sectors and all major markets. For more information, visit