CIOs Should Focus On Creating Two Speed IT: Analyst
India has witnessed a rapid adoption of Cloud, BI, IoT etc. among enterprises. Enterprises are heavily investing in these technologies, however, it is crucial for CIOs to understand the business needs while embracing these technologies. In a candid interaction with CXO Today, Naveen Mishra, Research Director at Gartner, talks about the adoption of technologies like Public Cloud, BI & Analytics, Digital workplaces in India and also lists out top priorities of Indian CIOs.
Many MNC Data center solution providers are now looking at India as their key growth market. With many players coming into the space, what will be the data center landscape in India in the coming years?
I will talk about the three tier landscapes here. The first tier landscape is the one where the hyper scale companies like Microsoft are already present and Amazon and other Chinese players are coming in with a huge scale of economies.
The second landscape is the typical Indian Data Center solutions providers such as Sify, Wipro, Tata, Net magic etc. will continue to do what they are doing and the third and last tier is small cloud companies spread across the smaller cities like Indore, Vijayawada, Nashik etc.
Now with all of these, we are looking at the space where there will be roughly 30 plus providers as compared to 10-15 earlier. These 30 dominant players will be active in the market space. I believe these companies will account for around 80 per cent market. This is the big change in terms of the provider ecosystem.
Though Public Cloud is gaining traction in India, a large number of enterprises are still not comfortable to migrate to the platform. How do you see the adoption of Public Cloud among Indian enterprises?
I don’t expect a big wave in the Public Cloud space in India, but what I certainly expect is Cloud which was largely SMB play in the last few years is also becoming an enterprise play, though it still has low market share.
I expect that there will be workloads such as five-point marketing which will start moving to a public cloud as they are not mission critical applications. I would advise the customers to start with an 80:20 ratio, where 80 per cent applications will be on premise and 20 per cent applications will be off premise. Businesses today are asking for the services such as two speeds IT architecture. There are many global cloud providers present in India that will further encourage them.
So, I would say it is a phase two of cloud adoption in India. Phase three will be cloud becoming mainstream among enterprises.
The concept of Digital workplace is gaining relevance in the Indian Enterprise sector. But, how businesses are addressing the BYOD factor while embracing the technology?
I have not seen too much of uptake in the BYOD space and there is a mix adoption of BYOD in India, where some organizations have gone ahead and deployed the technologies and some are still resisting it. However, we have observed that there is a broader focus on building a digital workplace which will have the component of laptops, mobile phones and other kind of devices, which can give employees ‘Anywhere’ and ‘Anytime’ kind of work experience. Digital workplace is going to further deliver the promises of digital experience to the customers and to the employees.
The Gartner CIO survey 2016 reveals that while Indian CIOs are investing heavily in the BI and Analytics, Public Cloud, Digital Workplaces etc., security is still lacking behind in terms of funding? What is a reason behind CIOs not considering security as top priority?
Security is still not a priority area for the Indian CIOs. The reason behind this is security still does not relate directly to the business impact. Security does not have a custom of facing implications and there is a perception that security is cost centric. Therefore, customers and enterprises still don’t see security as one of the big things in India. However, the scenario is expected to change as we see some failures happening with the cloud model, some of the breaches happening in the security mechanism of enterprises and that definitely will create a different environment.
In India, a large number of enterprises still have on premise data centers. We don’t see many off-premise data centers in the public cloud space. As things will start unfolding, I would expect that security will be up the rank. With Cloud and mobility gaining traction, CIOs will be forced to revisit their security strategy. Also, it will become more competitive and comparative in terms of what global CIOs think about security as well as spending.
The role of the Chief Marketing Officer (CMO) is becoming significant in technology related decision making. What should be the role of CIOs and CMOs to complement each other’s tasks?
The CIOs will need to work closely with the CMOs. In some cases, the CMO will be funding specific projects, whereas in some cases, CIOs may require to fund the project in consultation with the CMO. In both the cases, the CMO is going to be the key influential in the decision making. IT has not worked very closely with the CMO in the past. However, today marketing has a good use case of Cloud adoption, Mobile, Analytics, etc. and it has helped to build a portfolio of the CIO, where he is also engaged with other departments including marketing.
According to you what will be the top technology priorities for the Indian CIOs in 2016?
As per our CIO survey, we clearly see CIOs are focused on driving the growth for the CEOs. Now, as part of the growth, we expect CIOs to focus on Customer Facing Applications (CFAs). I would recommend CIOs try to reduce the cost of core technologies and start investing in business driven projects around Analytics and Mobile, because these things will really help their business to cross-sell and upsell. One more thing which I believe is going to be important to this digital world is creating two speeds IT architecture, where one is still doing stable, solid and secure job and another is a sprint runner, which can deliver speed and agility. Indian CIOs has been very good in the first part, however, they need to embrace the second part of the two speed IT architecture, so that they can respond to the varying customer demands. I think that is going to be the biggest challenge for them.
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