Check out the Top 5 IT predictions for the ITOM market – This collection provides insightful and bold predictions that will emerge for the ITOM market in 2018. The list is comprised by specific industry guesses as well as some general trends.
1. IT Budgets Will Rise in 2018
Bucking a recent trend of cost-cutting, the new year will see an increase in IT budgets across the board. The recent bell-weather report from Spiceworks1 suggests IT budgets will increase 19% on average. Almost half (44%) of the companies surveyed expected their budget to increase and only 11% expecting a decrease. With corporate revenues looking healthy, IT departments will be able to dust off those project plans, hire more IT staff and expand those cloud projects that were put on hold last year.
2. Data Centers Live On
Despite all the buzz around cloud, the reality is that on-prem datacenters will remain a critical focus of investment. A recent survey2 stated that the percentage of workloads running on-prem has remained stable at 65% since 2014. In another related survey from IDG3, “Nearly 40% of organizations with public cloud experience report having moved public cloud workloads back to on premises, mostly due to security and cost concerns.” It appears the most common approach is too move new workloads more to the cloud and leave legacy systems running as they are.
3. Intelligent Things Actually Start Becoming Intelligent
A new catch-all phrase that covers all the buzzwords from AI, machine learning to intelligent apps and Internet of Things. This is not a new phenomenon, but up until recently the level of intelligence built into hardware and software has not really delivered true value. Now, the rise of chatbots are an example that machines can successfully impersonate real human beings and save time in the labour intensive customer service sector. In IT Operations, existing assets will become ever more automated, leaving scope to invest in innovative technologies that drive revenue growth. Recent studies4 suggest that most mid-market organizations struggle to find the right balance. Up to 80% of IT budgets are spent on maintenance. 70% of IT leaders say a focus on everyday system management tasks is holding them back. Only 10% of IT leaders believe they are using innovation to drive competitive advantage.
4. SaaS Monitoring Gets Serious
Companies have been shifting their applications to the cloud for the past few years. The growth of cloud based solutions such as Salesforce and Office365 have lowered the requirement for large on-prem datacenters and local infrastructure support. However, in many cases, Quality of Service (QoS) has decreased for the end-user mainly due to network latency issues for remote branch offices far away from 3rd SaaS datacenters. Furthermore, the amount of information shared on SaaS performance from SaaS providers is very limited. Whilst on-prem monitoring is a very mature in most modern enterprises, we will see a better focus on end-user monitoring for SaaS applications in 2018.
5. Industry Consolidation
As a continuation of the Cloud Wars, there could be some major acquisitions in the space over the next 12 months. VMware is an obvious target for both Google and Amazon. VMware remains a prized asset owned by Dell. VMware Cloud on AWS is a direct competitor aimed against Microsoft Azure to cover both public and private clouds. VMware is valued at 51bln, which is a big stumbling block. Other possibilities to look out for is Microsoft buying an ITSM player in their battle against ServiceNow. Cherwell or Provance are closely aligned with Microsoft. Cisco will continue to buy software companies after their successful integration of AppDynamics to complement their monitoring suite of products. Rumours are that AppDynmics will be shipped for free in Cisco IOS with all network routers and switches. This is a move that will shake up the NPM industry. Machine Learning companies will be hot property in 2018 to trawl through the huge amounts of infrastructure data and provide faster time to value for the leading IT Ops vendors such as IBM, HP, BMC and CA.