CIOs To Spend $14-Bn In Converged Infra By 2018

by CXOtoday News Desk    Aug 11, 2015


Enterprises are increasingly banking on converged IT infrastructure in order to achieve capacity flexibility while reducing costs and speeding up their return on investment (ROI), according to a new IDC report.

CIOs will invest over $10bn this year on converged infrastructure systems, and will experience a 27% growth rate in coming years to represent $14.3bn in 2018, said the Converged IT infrastructure survey that was sponsored by VCE, the spin-off company created by Cisco Systems and EMC Corp.

IDC found that in order to seize the opportunities, enterprises should embrace the cloud as a system to deliver IT resources, with the use of cloud-based computing offering higher-level services like databases and applications. According to IDC, enterprises that adopt converged infrastructures witness a 36 percent decrease in operating costs, on average. They also reported a whopping 96 percent reduction in IT downtime, as well as faster application deployment, Enterprise Tech reported.

While the initial costs appear to be high, IDC researchers said the trade-off was almost always worthwhile: “While converged infrastructure has some issues in terms of capital and increased training, these are minor compared to the benefits and longer-term investments that it delivers,” the report concluded.

The analyst firm sees companies are upbeat on deploying converged infrastructure and the trend will accelerate. According to the study, IT departments will spend $14.3 billion on converged infrastructure by 2018, a 27 percent increase from the $10 billion they’ll spend this year.

The pace of development in recent years is fast as the study notes, 4.6 times more apps were developed or delivered in 2014 and 41% less time was spent keeping the lights on. New services or products came 4.4 times quicker to market and organizations experienced 96% less downtime.

Organisations experienced a 66% less time in the deployment of apps and application development life cycles were 55% faster. IDC found that companies reduced their time and budgets to keep the lights on to 46% from 78% earlier.

IDC says the trend among data centers for cloud-based platforms that integrate Big Data analytics is the main factor driving this shift to converged infrastructures. Such infrastructure has been dubbed “The 3rd Platform” by IDC, and is ideal for companies that place a high value on speed and agility. “No longer can business unites wait weeks or months for the infrastructure required to deploy or scale new applications or services,” the report said. “They require the flexibility to quickly scale their compute capacity up or down for any particular application to respond to changing use cases and patterns of demand.”

The study also concludes that converged infrastructure boosts overall productivity within organizations by reducing the amount of time IT teams must spend to keep things ticking over smoothly.