Story image

VMware report: Decentralisation of IT spending is 'stressing' Australian business

10 Nov 2016

VMWare's State of the Cloud Report has been unveiled at vForum Sydney today, painting a troubling picture of how the decentralisation of IT spending is having a detrimental effect on Australian and global enterprises.

The report found that almost two thirds of local IT decision makers and leaders agree that purchasing and IT management has become 'increasingly' decentralised over the last three years.

49% agree or strongly agree that the IT department has no control over IT decentralisation and 80% believe that it is increasing organisational costs or spending.

However there is a bright side, as 65% believe that IT decentralisation gives organisations more freedom to innovate, particularly as 63% believe that IT departments should be responsible for driving innovation.

Decentralisation also increases responsiveness to market changes (56%) and faster solutions to market (54%).

 60% of respondents believe the same IT decentralisation has led to the purchase of non-secure solutions. It has also led to application development outside regulations (56%) and a lack of regulatory compliance of data protection (57%).

67% also believe that there isn't enough clear ownership or IT responsibility in their business.

The survey also found that cloud computing has made it easier for 61% of Australian decision makers to buy their own IT, leading to an average of six additional cloud services being purchases outside the IT department per organisation.

According to Gartner, technology expected to drive Australian innovation to $85 billion in 2017 - a 2.8% rise. Australia has also dropped two places to 19th on the Global Innovation Index, suggesting there is work to be done.

“Harnessing innovation has become increasingly important for Australian organisations to compete globally, and for the national agenda set by Prime Minister Malcolm Turnbull to future-proof our economy with the introduction of the National Innovation and Science Agenda (NISA)," explains Alister Dias, vice president and managing director, VMware ANZ. 

In today’s competitive landscape, many businesses tend to sidestep IT and adopt their own cloud services to deal with potential competitive disruption and growth objectives. In Australia this has led to an average of six additional cloud services being purchased outside of the IT department per organisation," Dias continues.

At the forum today, Dias announced that with the cloud being crucial to innovation, security, inefficiencies and complexities need to be managed well. VMware's Cross-Cloud Architecture has been extended across its hybrid cloud strategy.

The company says the Architecture can help protect data and control costs, while allowing business fredom and flexibility in their cloud spaces - including AWS, Azure and IBM cloud.

“With a lack of control over the purchasing, implementation and proliferation of technology across the enterprise, IT departments are confronted with the issue of ‘shadow IT’ and the difficult task of managing and securing applications dispersed across multiple disconnected cloud platforms,” he says.

VMware says that multi-cloud adoption requires a common operating environment for all clouds, including consistent deployment models, security policies, visibility, and governance for all applications, running on-and off-premises. This will ensure decentralisation is effective in driving innovation.

The report is a combination of two different surveys. The first was conducted by the Economist Intelligence Unit and surveyed 726 people. The second Vanson Bourne surveyed 3300 people from 20 countries, including Australia.

Seven Aussie projects shortlisted in IDC's Smart Cities Awards
The nominated projects include three from Newcastle alone and span smart water metering, solar farms, virtualization and transport.
Y Soft and Brother partner to enhance print management
YSoft SafeQ integrated print management and document capture solution is now embedded in Brother multifunction devices.
F5 acquisition of NGINX now complete
The companies have released blogs on the topic, explaining how NGINX will now operate as a unit of F5, and the benefits they expect this merger to bring.
IXUP goes "post-quantum" with security tech upgrade
The secure analytics company has also partnered with Deloitte as a reseller, and launched a SaaS offering on Microsoft Azure.
Infoblox appoints channels head for A/NZ
Kenneth Cartwright’s appointment extends Infoblox’s position in secure cloud-managed network services throughout the region.
Adobe & Amazon: Making merchants' stores a lot more powerful
Magento Commerce branded stores for Amazon sellers features native integration with Amazon merchant tools including Amazon Pay and Fulfillment by Amazon. These provide the convenience of secure payments and speedy shipping services for buyers.
Edge computing market to provide ‘lucrative opportunities’
The market is set to skyrocket in the coming years, paving the way for emerging market players.
CIOs in A/NZ are slowly making digital business progress
“A/NZ CIOs have the chance to step up to become more influential business leaders, but most are not seizing that opportunity to drive change.”