'Profound change' drives business to bypass IT: Forrester

'Profound change' drives business to bypass IT: Forrester

42 per cent of APAC businesses say they will go around IT to source technology directly

Australian IT departments are being cut out of the loop as business units increasingly bypass tech managers in order to source technology and applications directly.

The VMWare Cloud Index 2013 study has today revealed 42 per cent of respondents said business units often go around IT if it is deemed unresponsive or too slow.

Conducted by Forrester Consulting and now in its fourth year, the index shows a concerning trend of IT marginalization in Australia due to a perceived lack of alignment with the business.

Furthermore, 73 per cent of Australian respondents said IT organisations must start provisioning services to business in a faster, more cost-effective way, or risk being marginalised.

However, the survey, which questioned 268 respondents in Australia across multiple verticals and across 2,785 IT and business decision makers, found that 67 per cent viewed IT as an enabler for change and a source of business value to the organisation. Only 38 per cent believed the credibility and influence of the CIO was increasing.

Forrester Consulting vice president and research director Michael Barnes said there was a sense of urgency among business units to use IT to engage customers.

“To me 73 per cent recognising a clear urgency is a change to the way they view things and clearly the underlying recognition is that if IT doesn’t change, that the business is going to find a way," he said.

“The Business will find ways to serve customers, to engage customers with or without IT. It’s critical that IT be a change agent.”

Barnes said when it came to disruption, Cloud technology evolution was not all that interesting.

“What’s interesting is the disruption of the business model,” he said. “The impact of these trends, of things like virtualisation, like Cloud computing, like software defined data centres, when it gets really interesting is when there is a convergence of these technology evolutions, these technology changes become as clear, obvious, completely unavoidable business needs.

“When these two come together that’s where the power and the absolute fundamental need for change comes in. That’s where transformation happens. Otherwise it’s just evolutionary, which will not actually drive change in a business sense.

“It’s about the convergence of different technologies; the opportunity as consumers, as employees to get the services that I need in my moment I need. This is profound change from the way we have as businesses traditionally thought of the market.”

VMware A/NZ managing director Duncan Bennet said Australian IT departments had enjoyed tremendous respect and admiration from business during the past several years, but that the trust was now being tested as we entered a new era of IT.

“VMware is leading companies into the new era, with a software-defined approach that will move businesses from the client server era to the mobile Cloud era of computing," he said.

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