IT Operations Strategies in an Economic Slowdown

IT Operations Strategies in an
Economic Slowdown
Webinar: May 7, 2020

© 2020 OpsRamp. All Rights Reserved.
Host:
Polly Traylor, Sr. Manager Corp. Comms, OpsRamp
Panel:
Donnie Berkholz, VP of IT Service Delivery, CWT
Mike Kavis, Chief Cloud Architect, Deloitte
Webinar: IT Operations Strategies in
an Economic Slowdown

Respondent Profile
66% 47% 48%
of respondents hold the role
of either director or senior
director of IT operations
of IT leaders work for
organizations that spend more
than $50 million annually on
technology budgets
of these technology executives
work at organizations with
more than 1,000 employees
Annual Technology Spending (In $ Million)
$5 to $50 Million
$51 to $ 200 Million
$201 to $500 Million
More than $500 Million
53%
26%
13%
8%
✔ A third party surveyed a total of 137
respondents on April 1, 2020.
✔ All respondents work at the IT director
level or above, across IT operations
teams in the United States.
✔ Enterprises surveyed have more than
500 employees and spent at least $5
million in annual technology budgets.
Methodology

1. Digital Transformation Stays On
a. Budgets will grow for most
b. Agile IT delivery a top priority.
1. IT Spending to Minimize Risk
a. Security, Cloud, MSPs
1. Business Value
a. Alignment, Creative Cost-Cutting
Key Trends for IT Operations
The current downturn is forcing
businesses to rethink every aspect
of customer value proposition and
re-prioritize digital platform
investments.

22/04/20 | OpsRamp Proprietary/Confidential
Speeding Up Digital
Transformation
Insight #1

Enterprises are Doubling Down on
Digital Transformation
✔ Despite economic uncertainty, 73
percent of IT operations leaders expect
to either accelerate or maintain their
digital transformation spending.

Technology Investments Can Both
Attract and Retain Customers
Expected Changes in Annual Technology Spending
A Significant Increase
A Moderate Increase
A Significant Decrease
A Moderate Decline
30%
28%
20%
18%
5%Same as Before
✔ Despite the global pandemic, 58
percent of IT leaders expect to either
significantly or moderately increase
their overall technology budgets to
accelerate digital transformation.

Staying Agile During a Downturn
Technology Initiatives for 2020
64%
62%
44% 36%
Agile IT Delivery
and DevOps
Cloud Cost
Optimization
Customer and
Market Insights
Business Model
Transformation
✔ Agile delivery and cloud cost
optimization are critical technology
priorities today, underlining the need
for customer-centricity and fiscal
discipline.

Technology Priorities for 2020
Insight #2

Renewed Investments in Security
and Multi-Cloud Infrastructure
Technology Initiatives for 2020
Information Security and Compliance
Big Data and Analytics
Public and Multi-Cloud Infrastructure
IoT and Edge Computing
62%
46%
45%
44%
42%Remote Work and Collaboration
Datacenters and Private Clouds
Business Continuity and Disaster
Recovery
41%
38%
✔ The three biggest areas where IT
operations teams will increase funding
this year include information security,
big data and analytics, and public
cloud infrastructure.

A New Breed of Performance
Monitoring Tools Take Center Stage
Leading Tools for Performance Monitoring
Artificial Intelligence for
IT Operations (AIOps)
Cloud Native Observability
Network Performance
Monitoring and Diagnostics
Digital Experience Monitoring
69
%
51%
51%
45%
39%Hybrid Infrastructure Monitoring
Application Performance
Monitoring
39%
✔ Enterprises will invest in machine
learning-driven event management,
cloud native observability, and
network monitoring tools for ensuring
the health and performance of
mission-critical services.

Managed Service Providers Need to
Ramp Up Now
Key Benefits of Working With MSPs
Technical Expertise and Know-How
Enhanced Security
Cost Optimization
Freeing Up Internal Resources
63%
52%
50%
40%
✔ Given the burden of supporting a
remote workforce while accelerating
digital transformation, IT teams will
lean more heavily on the expertise of
their managed service providers.

Why Cloud Infrastructure Remains a
Three-Legged Race
Preferred Public Cloud Platform Providers
Google Cloud Platform
Amazon Web Services
Microsoft Azure
IBM Cloud
61%
60%
60%
46%
26%Oracle Cloud Infrastructure
Alibaba Cloud 20%
✔ Google Cloud Platform topped the list
of preferred public cloud providers
followed closely by Amazon Web
Services and Microsoft Azure (both
jointly tied for the second position).

Insight #3
Delivering Business Value

Time for an Equal Partnership
Biggest Challenges for Operational Transformation
Business-IT Alignment
Economic Uncertainty
Available Technology Solutions
Staff Technology Skills
41%
25%
18%
13%
✔ IT leaders will need to work closely
with their business to prioritize high-
impact solutions while managing
costs so that their organization can
survive the economic downturn.

IT Leaders Will Need to Get More
Creative to Contain Costs
Cost Cutting Measures and Programs
Investing in Self-Service
Technologies
Consolidation of Technology
Vendors
Reliance on Managed
Service Providers
Adoption of Open Source
Technologies
60%
59%
58%
50%
45%Efficient Infrastructure Utilization
Delaying All Non-Essential Hiring 32%
✔ Top cost reduction measures include
self-service technologies, working
with a select set of technology
vendors, and reducing software spend
with open source technologies.

Financial Expertise: A Rare
Commodity in IT
Technology Roles Still In Demand
IT Finance
Cloud Architects
DevOps/Site Reliability Engineers
Data Scientists
68
%
53%
50%
47%
32%Product Managers
✔ The most important hire for two-thirds
of respondents is financial analysts
who can clearly communicate the
business value of technology spending.

Read the Report Now! As Seen In
Download the Report to learn how
your peers are aligning technology
spending, IT priorities, and hiring
during this economic uncertainty.

Thank You to Our Presenters!
Donnie Berkholz, VP of IT Service Delivery, CWT
Twitter: @dberkholz
Newsletter: https://nuzzel.com/dberkholz
Mike Kavis, Chief Cloud Architect, Deloitte
Twitter: @madgreek65
https://www.mikekavis.com/
Final Thoughts for IT Operations
Leaders

About OpsRamp: Simplify and Transform IT Ops
21
200+ Partners +1,800 Customers
Founded
2014
Worldwide
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Distribution
Employees
280 globally
Investors
Sapphire Ventures
Morgan Stanley
HPE
“ We see tremendous opportunity in equipping IT operations teams with the
next generation platform they need to maintain software availability,
business service performance, and to use automation and AI to work
efficiently and effectively across hybrid, multi-cloud environments. ”
“ With its investment in OpsRamp, HPE looks to
open a new chapter in IT operations management
”
– Paul Glaser, Vice President and Head of
Hewlett Packard Pathfinder –

IT Operations Strategies in an Economic Slowdown

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