Logicalis US Research Uncovers Direct Correlation Between IT Effectiveness, Efficiency and Enterprise IT Transformation

NEW YORK, Feb. 4, 2014 /PRNewswire/ -- Logicalis US, an international IT solutions and managed services provider (www.us.logicalis.com), announced today the findings from a study into the impact of IT transformation on the effectiveness and efficiency of enterprise computing.  The study, which surveyed more than 600 qualified IT professionals, was based on a blueprint for IT growth and change called the IT Transformation Journey.  According to the study, commissioned by Logicalis through the Ponemon Institute, enterprise and midmarket IT organizations become increasingly more effective and cost-efficient as they move through the six stages of the IT Transformation Journey.  Responses highlighted concerns that a lack of vision, technology roadmap and budget, or trusted partners can stop IT progress in its tracks.

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[See an infographic summarizing key points from this study here: http://www.ict-log.us/song9.]

"CIOs are searching for relevance today, and in many ways, the ability to increase their value to the company is tied inextricably to the stage in which their IT infrastructure resides along the IT Transformation Journey," says Brett Anderson, director of Enterprise Computing Solutions for Logicalis US. "The more developed a company's IT roadmap, the more readily that company is able to adapt to technological changes and new requirements; respond to risks in a proactive, rather than reactive manner; and overcome threats to IT system availability and performance.  They may have less infrastructure on premise and be relying on partners more so that it frees their time to concentrate on using technology to benefit the company in more strategic ways."

Key Findings

• IT pros agree they need to move beyond break/fix keeping-the-lights-on activities into more strategic roles. Today, however, over half of the respondents say that there is a lack of vision on how to make the IT function within the organization more effective.
  • 60 percent say too much time is spent tracking and compiling IT expenses vs. performing IT analysis.
  • 56 percent say IT in their company is constantly engaged in fighting fires.
  • 54 percent say there is too much time spent on technical solutions in their organization, and not enough time spent on developing business-focused solutions.
    
• Organizations in the early stages of the Transformation Journey may find themselves in a difficult position if they haven't allocated enough budget to move to the next stage of their roadmap. However, those in the later stages find the efficiencies of a well-oiled IT infrastructure and the reduction in failures save them impressive amounts of money.
  • Stage 1 companies spent an average of about $51 million on IT transformation activities this year, whereas Stage 5 companies spent about $70 million.
  • IT system inefficiencies and failures cost Stage 2 companies an average of $45 million as opposed to Stage 6 companies' $21 million over the past year.
  • Companies in Stages 3 and 4 are more likely to predict a substantial increase (20 percent or more) in their IT spending over the next 12 months than companies in other stages.
    
• Having trusted third parties to rely on is critical throughout the IT Transformation Journey, and is an important factor in respondents' ability to demonstrate cost reduction and ROI along the way. This is important in terms of both creating and implementing the roadmap, as well as working with partners when IT systems are shifted to off-premise – and possibly managed service – environments, something that increases as companies move through the Transformation Journey.
  • 40 percent say there is a lack of trusted vendors to support the organization's IT transformation.
  • 67 percent of Stage 1 respondents and 66 percent in Stage 6 say these trusted relationships are either essential or very important.
  • The greatest percentage of IT operations that are on-premise are in Stage 1 and 2 environments (73 percent and 78 percent respectively), while that number decreases dramatically to just 45 percent for Stage 5 and 40 percent for Stage 6 respondents, illustrating a trend for more IT functions to be moved off premise in the later stages, and cementing the need for strong vendor/partner relationships.

Want to Learn More?

• Access the full report, "The Impact of IT Transformation on Enterprise Computing," here: http://www.ict-log.us/sonCx.
• See an infographic summarizing key points from this study here: http://www.ict-log.us/song9.
• Read a Logicalis Optimal Services study examining CIOs' search for relevance and use of services-led transformations to reduce day-to-day tasks here: http://www.ict-log.us/rI4VZ.

About Logicalis
Logicalis is an international IT solutions and managed services provider with a breadth of knowledge and expertise in communications and collaboration; data center and cloud services; and managed services.

Logicalis employs nearly 3,500 people worldwide, including highly trained service specialists who design, specify, deploy and manage complex ICT infrastructures to meet the needs of almost 6,000 corporate and public sector customers.  To achieve this, Logicalis maintains strong partnerships with technology leaders such as Cisco, HP, IBM, CA Technologies, EMC, NetApp, Microsoft, VMware and ServiceNow.

The Logicalis Group has annualized revenues of over $1.4 billion from operations in Europe, North America, South America and Asia Pacific and is fast establishing itself as one of the leading IT and Communications solution integrators specializing in the areas of advanced technologies and services.

The Logicalis Group is a division of Datatec Limited, listed on the Johannesburg and London AIM Stock Exchanges, with revenues of over $5 billion.

For more information, visit www.us.logicalis.com.

Business and technology working as one
To learn more about Logicalis activities through a variety of social media outlets, click here.

Media contacts:
Lisa Dreher, VP, Marketing &
Business Development,
Logicalis US
[email protected]
425-201-8111
www.us.logicalis.com

Karen Franse,
Communication Strategy
Group for Logicalis US
[email protected]
866-997-2424
www.gocsg.com  

SOURCE Logicalis US

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