There’s no shortage of conversation around the topic of digital transformation today, and we can’t talk about digital transformation without referencing SAP. SAP CEO Bill McDermott predicted at last year’s SAPPHIRE NOW conference that the next five to 10 years will be far more disruptive than the last five to 10, with Machine Learning, Artificial Intelligence and Augmented Reality as the next game changers.
This year’s SAPPHIRE NOW conference promises to tackle those important digital transformation-related conversations, including a focus on AI, the IoT, Machine Learning and big data. We hope you’ll join us to chat about these and other topics!
The Cloud Boom
Insights from the study reinforce the perception that cloud adoption continues to rise, with the majority of survey respondents either considering migrating their IT operations to the cloud or already doing so. Private cloud is the chosen cloud strategy for 49 percent of respondents, whereas 19 percent are using a public cloud. While AWS remains the current market leader, Azure and Google Cloud are slowly chipping away to garner more of this market.
A combination of public and private clouds (hybrid) often provides you with more flexibility to make decisions as data demands and business and IT requirements change, with 32 percent of respondents leveraging a hybrid cloud strategy. We’ve found many customers view working with an MSP as a key component of their cloud initiative, as we can help prioritize and drive efficiencies.
The digital transformation-related areas that are compelling organizations to migrate to the cloud include big data and predictive analytics (41 percent) and the IoT (35 percent). Other related cloud adoption drivers cited included mobile applications (10 percent), machine learning (eight percent) and AI (four percent).
While the concepts of machine learning and AI may still be in their infancy, new numbers from IDC show that by the end of 2017, businesses will have spent $12.5 billion on AI and cognitive systems as they become key parts of your enterprise infrastructure and business.
For those who have yet to take the leap – and even for those who already have – there remain concerns around security. As security threats grow in quantity and complexity, your organization needs expert help identifying the most important threats and effectively preventing them.
With providers like MSPs, you don't have to be a security expert, we can help you manage emerging threats on an ongoing basis.
Your Transformation Team
IT skills and experience or team bandwidth were the second most cited concerns (45 percent) after security. There is a growing need for individuals who understand how to collect and manage data, lead analytics, understand business processes and, from there, automate and either develop or direct the development of these processes seamlessly.
We found IT directors and managers are leading digital transformation efforts at more than half of organizations surveyed. If you’re tasked with doing so, check out our advice on how to assemble your IT dream team.
Budgeting for Change
Given the buzz around digital transformation, it’s no surprise that a significant portion of company budgets are allocated to these efforts. Thirty-five percent of respondents said between 20 and 39 percent of budget is allocated to digital transformation, and 28 percent said between 40 and 59 percent is.
We recommend building on your existing infrastructure as you digitally transform, leaving many of the systems as is and lowering your cost of support. Invest a growing percentage of your budget on understanding what is happening in the enterprise and, from there, you can decide how to automate.
Join us at SAPPHIRE NOW for drinks and appetizers, where we can discuss your digital transformation journey and how it can enable you to preserve that competitive advantage.
To learn more about the study and how your organization can optimize its digital transformation journey, download the full eBook!
**Research was conducted in April 2017 using Researchscape, with opt-in responses from 230+ respondents who work in IT or Technology Implementation at companies with 250+ employees