VMware’s Cloud Strategy to Address Risks of Decentralized IT

VMware’s Cloud Strategy in Australia to Address Risks of Decentralized IT; Enables Digital Business Innovation with Cross-Cloud Architecture

  • Almost two thirds of Australian business users and IT professionals surveyed believe the IT department should be responsible for driving innovation, and that there is currently a lack of clear ownership and responsibility for IT
  • More than half of Australian business users and IT professionals surveyed indicated that the decentralization of IT has led to the purchasing of non-secure solutions and lack of regulatory compliance of data protection

SYDNEY, AUSTRALIA – November 10, 2016 – VMware, Inc. (NYSE: VMW) – Today at vForum Sydney, Australian business and IT professionals highlighted the most significant impediment to business innovation across the country: decentralized IT and the detrimental effect it has on enterprise operations. Insights from VMware’s State of the Cloud 2016 report, which surveyed 3,300 people from 20 countries including Australia, found that almost two-thirds of local IT decision makers and business leaders who responded to the survey (respondents) agree the purchasing and management of IT within their organisations has become increasingly decentralized in the past three years. The study also found that close to two-thirds (63 percent) of respondents feel that IT departments should be responsible for driving innovation across the organisation, yet there is a lack of clear ownership and responsibility for IT within their business (67 percent).

Many respondents believe the decentralization of IT gives the business more freedom to drive innovation (65 percent), increases responsiveness to market changes (56 percent) and enables them to launch new products and services to market more quickly (54 percent). However, many respondents also indicated that the decentralization of IT has led to the purchasing of non-secure solutions (60 percent), applications being developed outside of corporate or government regulations (56 percent) and a lack of regulatory compliance of data protection (57 percent).

With lines of business increasingly reaching to the cloud for digital business innovation, IT can play a part in mitigating complexities, inefficiencies and security risks by helping companies adopt a common operating environment for all clouds, initiating a consistent deployment model and security policy to govern all applications, running on- and off-premises. During the vForum general session, Alister Dias, vice president and managing director for VMware ANZ, detailed today’s multi-cloud reality and explained how VMware Cross-Cloud Architecture™ offers enterprises in Australia the ability to protect data and control costs, while allowing them the freedom and flexibility to innovate in the cloud of their choosing.

“Harnessing innovation has become increasingly important for Australian organizations 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). 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 organization,” said Alister Dias, vice president and managing director, VMware ANZ.

“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,” continued Dias.

To help local organizations reconcile the priorities and objectives of business leaders and IT decision makers in today’s multi-cloud landscape, VMware has extended the company’s hybrid cloud strategy with the VMware Cross-Cloud Architecture™, allowing enterprises the ability to manage, govern and secure applications running across public clouds, including AWS, Azure and IBM Cloud. In addition, the VMware Cloud Foundation offers a new “as-a-service” option that delivers the full power of the SDDC in a hybrid cloud environment.

New Research Highlights that IT Departments are Struggling to Cope with Decentralized IT

The State of the Cloud 2016 research demonstrates that decentralized IT is stressing IT resources and functions. The situation will only worsen if business leaders become key decision makers for technology purchases, and inadvertently contribute to a dispersal of decision making, a fragmentation of standards, and proliferation of assets across the enterprise – increasing costs, complexity and risks to business.

Key findings:

  • Almost two-thirds of IT decision makers and business leaders across Australia agree the purchasing (62 percent) and management (65 percent) of IT within their organizations, such as applications, hardware and cloud services, has become increasingly decentralized in the past three years.
  • Many respondents believe the decentralization of IT gives the business more freedom to drive innovation (65 percent); increases responsiveness to market changes (56 percent); enables them to launch new products and services to market more quickly (54 percent); and helps to attract better talent (54 percent).
  • However, many respondents also indicated that the decentralization of IT has led to the purchasing of non-secure solutions (60 percent); applications being developed outside of corporate or government regulations (56 percent); and a lack of regulatory compliance for data protection (57 percent).
  • Around two-thirds (63 percent) of respondents feel that the IT department should be responsible for driving innovation across the organization, and that there is currently a lack of clear ownership and responsibility for IT within their organization (67 percent).
  • Almost half (49 percent) of respondents agree or strongly agree that the IT department has had no control over the decentralization of IT.
  • 61 percent of Australian IT decision makers and business leaders indicated that cloud computing has made it easier for lines of business to purchase their own IT. This has led to an average of six additional cloud services being purchased outside of the IT department per organization.
  • 80 percent of IT decision makers and business leaders across the region indicated that the decentralization of technology is increasing costs or spending within their organizations.

To achieve their common goal of driving digital transformation and business innovation, business leaders and IT decision makers must procure and deploy the right technologies. Given that multi-cloud adoption is a key driver of decentralized IT, to ensure successful digital business innovation, Australian businesses must adopt a common operating environment for all clouds – one that enables consistent deployment models, security policies, visibility, and governance for all applications, running on- and off-premises, regardless of the underlying cloud, hardware platform or hypervisor.

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About The State of the Cloud 2016

The State of the Cloud 2016 research draws its conclusions from two different surveys, both sponsored by VMware.

The first was conducted by the Economist Intelligence Unit and targeted 726 people distributed equally across the Americas, Asia-Pacific, and EMEA. All the respondents were directors or above, from companies with an average revenue of $2.1B, and representing 20 industries. Half of those surveyed were business users and half IT.

The Vanson Bourne survey targeted 3,300 people from 20 countries split across the Americas (24 percent), Asia-Pacific (39 percent), and EMEA (36 percent). The respondents represented 20 industries with an average company revenue of $3.7B. Half of those surveyed were business users and half IT. Together, the survey results tell the story of decentralization both disrupting the enterprise and driving innovation.

About VMware

VMware, a global leader in cloud infrastructure and business mobility, helps customers accelerate their digital transformation. VMware enables enterprises to master a software-defined approach to business and IT with VMware Cross-Cloud Architecture and solutions for the data center, mobility, and security. With 2015 revenues of US$6.6 billion, VMware is headquartered in Palo Alto, CA and has over 500,000 customers and 75,000 partners worldwide.

VMware, Cross-Cloud Architecture, and Cloud Foundation are registered trademarks or trademarks of VMware, Inc. or its subsidiaries in the United States and other jurisdictions.

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