Thursday, 26 September 2019 01:39

Digital transformation, cloud migration, increasing customer demands create surge in IT complexity, costs: Dynatrace Featured

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Digital transformation, cloud migration, increasing customer demands create surge in IT complexity, costs: Dynatrace Image jscreationzs, FreeDigitalPhotos.net

Digital transformation, migration to the enterprise cloud and increasing customer demands are creating a surge in IT complexity and the associated costs of managing it, according to a global survey of CIOs commissioned by software intelligence company Dynatrace.

The survey of 800 CIOs, undertaken for Dynatrace by Vanson Bourne, reveals that technical leaders around the world are concerned about the effect of an increase in complexity and costs has on IT performance, and ultimately their business.

CIO responses captured in the 2019 research indicate that lost revenue (49%) and reputational damage (52%) are among the biggest concerns as businesses transform into software businesses and move to the cloud.

And, Dyanatrace says that as CIOs struggle to prevent these concerns from becoming reality, IT teams now spend 33% of their time dealing with digital performance problems - costing businesses an average of $3.3 million annually, compared to $2.5 million in 2018, an increase of 34%.

To combat this, 88% of CIOs say AI will be critical to IT’s ability to master increasing complexity.

According to Dynatrace, every company, in every industry, is transforming into a software business, with the way enterprises interact with customers, assure quality experiences and optimise revenues driven by applications and the hybrid, multi-cloud environments underpinning them.

“Success or failure comes down to the software supporting these efforts. The pressure of this “run-the-business” software performing properly has significant ramifications for IT professionals,” says Dynatrace, revealing that the survey found that:

  • 44% of CIOs fear there could be a threat to the existence of their business if they are unable to manage IT performance.
  • As complexity continues to grow, 74% of CIOs say it could soon become extremely difficult to manage performance efficiently.

“Underpinning this software revolution is the enterprise cloud, allowing companies to innovate faster and better meet the needs of customers,” observes Dynatrace.

“The enterprise cloud is dynamic, hybrid, multi-cloud, and web-scale, containing hundreds of technologies, millions of lines of code and billions of dependencies. However, this transformation isn’t simply about lifting and shifting apps to the cloud, it’s a fundamental shift in how applications are built, deployed and operated,” Dyanatrace said, pointing to the survey revealing that:

  • The majority of CIOs are already using or are planning to deploy microservices (88%), containers (86%), serverless computing (85%), PaaS (89%), SaaS (94%), IaaS (91%) and private cloud (95%) in the next 12 months, and
  • The average mobile or web application transaction crosses 37 different technology systems or components, bringing an inherent increase in IT complexity, making it harder for organisations to manage performance.

“We are squarely in the age of the customer, where high quality service is paramount due to the ease with which customers will try competitive offerings and share their experiences instantly via social media,” Dynatrace says.

And the research highlights the extent to which businesses are struggling to combat IT complexity that threatens the customer experience, with CIOs revealing:

  • On average, organisations have suffered six IT outages where user-experiences, business revenues or operations were impacted in the last 12 months. 

“Digital transformation, migration to the enterprise cloud and increasing customer demands are collectively putting pressure on IT teams, who continue to feel the strain, especially as it relates to performance,” says Dynastrace.

Revealing the extent of this dilemma, the key findings of the research also show that:

  • More than three quarters of CIOs (76%) say they don’t have complete visibility into application performance in cloud-native architectures. 
  • 78% of CIOs are frustrated that so much time is spent setting up monitoring for different cloud environments when deploying new services. 
  • IT teams now spend around 33% of their time tackling performance problems.

“As complexity grows beyond IT teams’ capabilities, the economics of throwing more manpower at the problem no longer works,” said Bernd Greifeneder, founder and CTO, Dynatrace.

“Organisations need a radically different AI approach. That’s why we reinvented from the ground up, creating an all-in-one platform with a deterministic AI at the core, which provides true causation, not just correlation.

“And, unlike machine learning approaches, Dynatrace does not require a lengthy learning period. The Dynatrace Software Intelligence Platform automatically discovers and captures high fidelity data from applications, containers, services, processes, and infrastructure. It then automatically maps the billions of dependencies and interconnections in these complex environments.

“Its AI engine, Davis, analyses this data and its dependencies in real-time to instantly provide precise answers – not just more data on glass. It’s this level of automation and intelligence that overcomes the challenges presented by the enterprise cloud and enables teams to develop better software faster, automate operations and deliver better business results.”

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Peter Dinham

Peter Dinham is a co-founder of iTWire and a 35-year veteran journalist and corporate communications consultant. He has worked as a journalist in all forms of media – newspapers/magazines, radio, television, press agency and now, online – including with the Canberra Times, The Examiner (Tasmania), the ABC and AAP-Reuters. As a freelance journalist he also had articles published in Australian and overseas magazines. He worked in the corporate communications/public relations sector, in-house with an airline, and as a senior executive in Australia of the world’s largest communications consultancy, Burson-Marsteller. He also ran his own communications consultancy and was a co-founder in Australia of the global photographic agency, the Image Bank (now Getty Images).

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