Industry Insights from Hitachi Vantara Survey
In today’s data-driven world, organizations are inundated with vast amounts of data. However, a recent survey conducted by Hitachi Vantara, the modern infrastructure, data management, and digital solutions subsidiary of Hitachi, revealed that 55% of enterprises are struggling to derive meaningful insights from their data, primarily due to technology downtime. This highlights an industry-wide need to deliver technology faster, more reliably, and in more places. These challenges are not isolated incidents but rather pervasive issues that affect businesses across North America and Europe.
Challenges in the IT Landscape Due To Technology Downtime
The survey unveiled a series of pressing challenges that IT leaders and organizations are grappling with. These challenges are multifaceted and include security concerns, inflexible systems, isolated data, a skilled labor shortage, and the need for infrastructure agility. These issues are exacerbated by rising data complexities, rigid technology environments, and increasing costs attributed to aging or legacy infrastructure.
Security has always been a paramount concern, but as the digital landscape evolves, so do the threats. Organizations must continually adapt to the latest cybersecurity measures to protect their sensitive data. Inflexible systems and isolated data further complicate the ability to harness the full potential of data analytics and insights.
In the face of these challenges, there’s also the looming issue of a skilled labor shortage. A shortage of IT talent with the right expertise is impacting businesses’ ability to effectively navigate the complex tech environment.
Furthermore, many organizations find themselves locked into rigid technology infrastructures, making it difficult to adapt to changing business needs. This rigidity not only hampers innovation but also drives up operational costs. A significant portion of these costs is associated with maintaining aging or legacy infrastructure.
Key Findings from the “Embracing ITaaS for Adaptability and Growth” Study
To gain deeper insights into the state of IT as a Service (ITaaS), the “Embracing ITaaS for Adaptability and Growth” study surveyed 213 IT leaders across North America and Europe. The study had a specific focus on subscription- and consumption-based ITaaS models and their impact on businesses.
The survey exposed major legacy infrastructure challenges that are causing IT decision-makers to report negative impacts on their businesses. Key findings from the survey include:
– 56% of businesses reported a significant impact on revenue due to technology downtime. The financial repercussions of technology disruptions underscore the importance of reliable and resilient IT systems.
– 50% of organizations face a high total cost of ownership (TCO) or technical debt associated with critical applications. These financial burdens inhibit businesses from investing in innovative technologies and initiatives.
– 45% of businesses have difficulties navigating complex cloud landscapes. As more organizations migrate to the cloud, The intricacy of overseeing a variety of cloud environments emerges as a primary worry.
Gary Lyng’s Perspective
Gary Lyng, the vice president of product and solutions at Hitachi Vantara, shared his insights on the survey findings. He emphasized that in today’s digital age, IT is not just a department within an organization; it has become a driving force that propels progress. IT enables enterprises to innovate, collaborate, and flourish amid ever-evolving technology.
However, the complexity of existing technology landscapes is hindering innovation. This highlights the need for trusted specialists who can simplify the setup for seamless access to data and applications. Hitachi Vantara’s expertise in storage, digital infrastructure, and pay-as-you-go solutions aims to address these challenges and help struggling enterprises maximize the value and overall return on their IT investments.
Growth in IT as a Service (ITaaS)
The study also provided insights into the growing popularity of ITaaS as a solution to many of the challenges outlined above. It revealed that 42% of IT leaders are actively expanding their adoption of ITaaS. This is indicative of the increasing recognition of the benefits ITaaS can bring to organizations.
Budget Allocation Transformation
One of the noteworthy trends identified is the transformation in budget allocation. Many organizations are shifting from traditional capital budgets to ITaaS, adopting an operating cost model. This strategic shift allows them to more effectively predict and budget for their IT expenses. Decision-makers reported an average of a 20% reduction in Total Cost of Ownership (TCO) as a result of this shift.
Anticipated ITaaS Expansion
The future of ITaaS appears promising. It is not limited to individual solutions; rather, it is expected to expand across various infrastructure categories. Presently, 56% of respondents are utilizing ITaaS for all their primary infrastructure requirements. This percentage is projected to increase significantly, reaching 86% within the next three years. This indicates a substantial shift towards embracing ITaaS as a comprehensive solution for IT infrastructure.
Choosing the Right ITaaS Partner
As organizations look to embrace ITaaS, the choice of the right partner is crucial. It’s not solely about pricing; decision-makers are increasingly focused on partner expertise in supporting hybrid and multicloud strategies. The chosen partner should also provide expertise and enable faster innovation through seamless technology service integration. This strategic partnership is pivotal for the success of ITaaS adoption, ensuring that it aligns with an organization’s specific needs and goals.
Survey Methodology
In May 2023, Hitachi Vantara commissioned Forrester Consulting to conduct an online survey to assess ITaaS adoption. The study involved 213 IT infrastructure decision-makers from diverse industries across North America and Europe. The survey focused on IT infrastructure priorities, challenges, the significance of ITaaS in addressing key themes, and the preferred qualities in an ITaaS partner.
In conclusion, the findings from this survey provide valuable insights into the evolving landscape of IT as a Service. They emphasize the need for organizations to adapt to changing technology demands, streamline costs, and enhance their ability to innovate. As businesses continue to grapple with data complexities, security concerns, and the need for infrastructure agility, embracing ITaaS and choosing the right partner becomes essential to drive progress and unlock the full potential of technology in the digital age.
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