IT Complexity in the Era of Cloud and Big Data - Oracle · IT Complexity in the Era of Cloud and...

IT Complexity in the Era of Cloud and Big Data: Survey Results

CONTENTS

Executive Summary..................................................................02

Introduction ..............................................................................03

The IT Complexity Assessment................................................04

Simplicity Scorecard .................................................................06

Findings and the Path Forward.................................................09

Conclusion................................................................................15

Appendix and Methodology .....................................................16

2

EXECUTIVE SUMMARY

In January and February 2014, Oracle invited 544 IT executives to complete the IT Complexity

Assessment Survey. This online survey posed 18 questions designed to uncover the level of

IT complexity within each organization. Responses were anonymously aggregated and analyzed.

Key findings from the survey:

• Few IT organizations report high levels of IT simplicity.

Our survey asked respondents to rate themselves across six distinct areas of information

technology. Between 15 and 35 percent of organizations gave themselves high marks

in simplicity, depending on the IT area being examined. On average, only 19 percent

of organizations rated their IT environments as “highly simplified.”

• Less than one-quarter of organizations are ready for big data.

The areas that enable big data analysis showed some of the highest levels of complexity.

This is to be expected, given that big data is a relatively recent trend that many organizations

are still struggling to get their arms around. Simplifying information management proved to be

among the most critical priorities for IT organizations in our survey.

• Integration remains a challenge.

As more organizations migrate toward cloud applications, they face an array of integration

requirements from multiple vendors. More than two-thirds of respondents cited high levels

of complexity in the area of application integration. Additionally, few respondents are able

to identify integration requirements during the early phase of a project, which can often

lead to time and cost overruns.

3

INTRODUCTION

Research has shown that IT complexity can impede investment in new capabilities.

The Corporate Executive Board (CEB) has found that 2014 spending on new, “grow the business”

capabilities will account for only one-third of IT project budgets. The remaining two-thirds will

go towards process automation and shoring up foundational infrastructure.

Simplifying the IT environment can help shift some of this spending away from maintenance

projects in favor of new innovations. Past approaches to reducing IT complexity have included

retirement of legacy systems, virtualization, and reduction in the number of custom-built

applications. However, in an era of big data and cloud systems, additional approaches

are needed to simplify the IT environment and reduce complexity.

Breakdown of 2014 IT Budget Organizations Reporting High Levels of IT Simplicity

Top Simplifications PrioritiesOrganizations Reporting Strong Maturity

Simplify Existing Complexity Invest in Future Complexity Reduction

Critical Priority

Method of Application Intergration

Data Transformation Policy

MDM Policy Metadata Management Policy

Rationalization ProcessData

GovenancePolicyArchitecture

and Design Guidance

ArchitectureReview Process

Number of HW/SWVersions vs Target

Utilzation of Saas

Intergration Requirements Timing

Degree of ServerVirtualization

HW/SW Adherence to Standards

Removal of LegacyTechnologies

Degree of Multi-tenancy

TechologyPortfolioTracking

Volume of MissionCritical Application

Volume of CustomApplications

Low Priority Medium Priority

0%

5%

10%

15%

20%

25%

30%

35%

40%

ITG

overnance

Information

Managem

ent

ApplicationH

osting

TechnologyPortfolio

Degree of

Multitenancy

Degree of ServerVisualisation

Num

ber HW

/SWVersions vs Target

Volume of M

issionC

ritical Apps

Rem

oval of LegacyTechnologies

Intergration

ApplicationsPortfolio

19% 22% 15% 35% 23% 22%

Overall, only 19% of organizations have simplified IT environments.

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

0.5

1.0

1.5

2.0

Com

plex

ity G

ap

Percentage of Respondents with High IT Complexity

2.5

3.0

1. 2. 3. 4.

5. 6. 7. 8.

Technology Portfolio

Intergration Complexity

IT Govenance

Application Hosting

Application Portfolio

Information Management

0%

20%

40%

60%

80%

100%

48% 72% 21% 51% 45%


Degree of

Multitenancy

Degree of ServerVisualisation

Num

ber HW


Volume of M

issionC

ritical Apps

Rem


0%

20%

40%

60%

80%

100%

48% 72% 21% 51% 45%

Travel, Hospitality,

and Transportation

Transport and Logistics

Autom

otive

Aerospace

and Defense

Manufacturing and

Consum

er Products

Telecomm

unications

Business and

Technology Services

Banking, Financial and Insurance Services

Energy and Utilities

Healthcare,

Pharmaceutical and

Life Sciences

Governm

ent and Other

Public Sectors

Education andR

esearch

Media and

Entertainment

Engineering andC

onstruction

High

Technology

Retail and

Wholesale

Proffesional Services

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

17% 16% 13% 11% 10% 8% 6% 6% 5% 5% 5% 4% 4% 4% 2% 0% 0%

Simplify Existing Complexity

Invest in Future Complexity Reduction

Organizations Reporting Strong Maturity Organizations Reporting Strong MaturityOrganizations Reporting Strong Maturity Organizations Reporting Strong Maturity

Data

Transformation

Policy

Metadata

Managem

ent Policy

MD

M Policy

Data G

overnancePolicy

0%

20%

40%

60%

80%

100%

27% 24% 24% 21%

Architecture

Review

Process

Architecture and

Design G

uidance

Rationalization

Process

0%

20%

40%

60%

80%

100%

19% 35% 33%

Architecture

Review

Process

Architecture and

Design G

uidance

Rationalization

Process

0%

20%

40%

60%

80%

100%

28% 31% 40%

Integration R

equirements

Timing

Method of A

pplicationIntegration

Technology PortfolioTracking

Num

ber of HW



Degree of

Multi-tenancy

Data G

overnancePolicy

MD

M Policy

Metadata

Managem

entPolicy

Data

Transformation

Policy

Architecture and

Design G

uidance

Architecture R

eview

Process

Rationalization

Process

Utiilization of Saas

Volume of M

issionC

ritical Applications

Volume of C

ustomA

pplications

Rem


0%

10%

20%

30%

40%

50%

60%

70%

80%

48% 35% 72% 28% 31% 40% 20% 21% 39% 51% 45% 27% 24% 22% 21%

Applications Portfolio

HW

/SW A

dherenceto Standards

33%35% 19%

Integration Technology Portfolio Application Hosting Information Management IT Governance

4

CEB estimates that in 2014, spending on new, “grow the business” capabilities will account for only 33% of IT project budgets, with the remainder spent on process automation and shoring up foundational infrastructure.

IT COMPLEXITY: NEW APPROACHES ARE NEEDED

Business operations are frequently tied to complex IT systems that have become increasingly

difficult and costly to manage, and which can’t adequately support new ideas and changing

business models.

In response, IT organizations have employed many mechanisms to simplify the IT

environment, such as:

• Technology portfolio rationalization

• Centralization

• Consolidation

• Standards setting

New Capabilities, 33%

Process Automation and Core Inforstructor,

67%

Breakdown of 2014 IT Budgets

“2013–2014 IT Budget Benchmark,” CEB, October 2013.

5

THE IT COMPLEXITY ASSESSMENT

Oracle’s IT Complexity Assessment Survey polled 554 IT executives globally in an effort to uncover their organizations’ level of complexity across six areas of IT:

Applications Portfolio - Complexity related to legacy technologies, custom applications

and size of the applications portfolio.

Integration - Complexity related to how integration is conducted, including use of SaaS,

the point at which integration requirements are identified, and preferred methods for

applications integration.

Technology Portfolio - Complexity related to technology portfolio, volume of technology

versions, and degree of technology standardization.

Application Hosting - Complexity related to the application hosting environment (i.e. servers)

including use of server virtualization and multi-tenancy.

Information Management - Complexity related to information management practices, including

existence of policies for data governance, master data management, metadata management

and data transformation.

IT Governance - Complexity related to IT governance practices, including timing of architecture

guidance, the architecture review process and the technology rationalization process.

New Capabilities,33%





67%

Critical Priority






and Design Guidance



Utilzation of Saas










Degree of

Multitenancy

Degree of S

erverVisualisation

Num

ber HW

/SW

Versions vs Target

Volume of M

issionC

ritical Apps

Rem


0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

0.5

1.0

1.5

2.0

Com

plex

ity G

ap


2.5

3.0

1. 2. 3. 4.

5. 6. 7. 8.



IT Govenance

Application Hosting



0%

20%

40%

60%

80%

100%

48% 72% 21% 51% 45%


Degree of

Multitenancy

Degree of S

erverVisualisation

Num

ber HW

/SW

Versions vs Target

Volume of M

issionC

ritical Apps

Rem


0%

20%

40%

60%

80%

100%

48% 72% 21% 51% 45%


and Transportation


Autom

otive

Aerospace

and Defense

Manufacturing and

Consum

er Products

Telecomm

unications

Business and

Technology Services

Banking, Financial and Insurance S

ervices

Energy and U

tilities

Healthcare,

Pharm

aceutical andLife S

ciences

Governm

ent and Other

Public S

ectors

Education andR

esearch

Media and

Entertainm

ent

Engineering andC

onstruction

High

Technology

Retail and

Wholesale

Proffesional S

ervices

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

17% 16% 13% 11% 10% 8% 6% 6% 5% 5% 5% 4% 4% 4% 2% 0% 0%




Data

Transformation

Policy

Metadata

Managem

ent Policy

MD

M P

olicy

Data G

overnanceP

olicy

0%

20%

40%

60%

80%

100%

27% 24% 24% 21%

Architecture

Review

Process

Architecture and

Design G

uidance

Rationalization

Process

0%

20%

40%

60%

80%

100%

19% 35% 33%

Architecture

Review

Process

Architecture and

Design G

uidance

Rationalization

Process

0%

20%

40%

60%

80%

100%

28% 31% 40%

Integration R

equirements

Timing

Method of A



Tracking

Num

ber of HW

/SW

Versions vs Target

Degree of S

erverVirtualization

Degree of

Multi-tenancy

Data G

overnanceP

olicy

MD

M P

olicy

Metadata

Managem

entP

olicy

Data

Transformation

Policy

Architecture and

Design G

uidance

Architecture R

eview

Process

Rationalization

Process

Utiilization of S

aas

Volume of M

issionC


Volume of C

ustomA

pplications

Rem


0%

10%

20%

30%

40%

50%

60%

70%

80%

48% 35% 72% 28% 31% 40% 20% 21% 39% 51% 45% 27% 24% 22% 21%


HW

/SW

Adherence

to Standards

33%35% 19%


6

Overall, onlyOverall, only 19% 19% of organizationsof organizations ranked themselvesranked themselves

as having highlyas having highly simplified ITsimplified IT

environments.environments.

IT SIMPLICITY SCORECARD

In their efforts to simplify the IT environment, organizations have made the most

progress in areas related to application hosting. They have made fairly significant strides

in streamlining the server environment through virtualization and server multi-tenancy.

The lowest marks for IT simplicity are related to the technology portfolio, encompassing such

factors as the volume of technology versions and the degree of technology standardization.

0%

5%

10%

15%

20%

25%

30%

35%

40%

ITG

overnance

Information

Managem

ent

ApplicationH

osting

TechnologyP

ortfolio

Intergration

ApplicationsP

ortfolio

19% 22% 15% 35% 23% 22%


Organizations Reporting High Levels of IT Simplicity






67%

0%

5%

10%

15%

20%

25%

30%

35%

40%

ITG

overnance

Information

Managem

ent

ApplicationH

osting

TechnologyP

ortfolio

Degree of

Multitenancy

Degree of S

erverVisualisation

Num

ber HW

/SW

Versions vs Target

Volume of M

issionC

ritical Apps

Rem


Intergration

ApplicationsP

ortfolio

19% 22% 15% 35% 23% 22%

Overall, only 19% of organizations have simplified

IT environments.

1. 2. 3. 4.

5. 6. 7. 8.

0%

20%

40%

60%

80%

100%

48% 72% 21% 51% 45%


Degree of

Multitenancy

Degree of S

erverVisualisation

Num

ber HW

/SW

Versions vs Target

Volume of M

issionC

ritical Apps

Rem


0%

20%

40%

60%

80%

100%

48% 72% 21% 51% 45%


and Transportation


Autom

otive

Aerospace

and Defense

Manufacturing and

Consum

er Products

Telecomm

unications

Business and

Technology Services


ervices

Energy and U

tilities

Healthcare,

Pharm

aceutical andLife S

ciences

Governm

ent and Other

Public S

ectors

Education andR

esearch

Media and

Entertainm

ent

Engineering andC

onstruction

High

Technology

Retail and

Wholesale

Proffesional S

ervices

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

17% 16% 13% 11% 10% 8% 6% 6% 5% 5% 5% 4% 4% 4% 2% 0% 0%




Data

Transformation

Policy

Metadata

Managem

ent Policy

MD

M P

olicy

Data G

overnanceP

olicy

0%

20%

40%

60%

80%

100%

27% 24% 24% 21%

Architecture

Review

Process

Architecture and

Design G

uidance

Rationalization

Process

0%

20%

40%

60%

80%

100%

19% 35% 33%

Architecture

Review

Process

Architecture and

Design G

uidance

Rationalization

Process

0%

20%

40%

60%

80%

100%

28% 31% 40%

Integration R

equirements

Timing

Method of A



Tracking

Num

ber of HW

/SW

Versions vs Target

Degree of S

erverVirtualization

Degree of

Multi-tenancy

Data G

overnanceP

olicy

MD

M P

olicy

Metadata

Managem

entP

olicy

Data

Transformation

Policy

Architecture and

Design G

uidance

Architecture R

eview

Process

Rationalization

Process

Utiilization of S

aas

Volume of M

issionC


Volume of C

ustomA

pplications

Rem


0%

10%

20%

30%

40%

50%

60%

70%

80%

48% 35% 72% 28% 31% 40% 20% 21% 39% 51% 45% 27% 24% 22% 21%


HW

/SW

Adherence

to Standards

33%35% 19%


7

The Complexity Gap is the average difference in score between those organizations with simplified IT environments and those with highly complex IT.

TOP SIMPLIFICATION PRIORITIES

Critical Priority





Govenance PolicyArchitecture

and Design Guidance

Architecture Review Process

Number of HW/SW Versions vs Target

Utilzation of Saas


Degree of Server Virtualization


Removal of Legacy Technologies


Techology Portfolio Tracking

Volume of Mission Critical Application

Volume of Custom Applications


0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

0.5

1.0

1.5

2.0

Com

plex

ity G

ap


2.5

3.0



IT Govenance

Application Hosting



The above chart shows that IT complexity is particularly high among a cluster of areas related

to information management—namely, data transformation, master data management,

metadata, and data governance. More than 70 percent of respondents to our survey

indicated that they experienced high levels of complexity in each of these four areas.

This is to be expected of areas that are closely connected to big data, a relatively recent

trend that many organizations are still struggling to get their arms around.

In addition, application integration is an area where there is significant opportunity to

simplify. As more organizations migrate toward cloud applications, they face an array of

requirements and APIs from multiple vendors, leading to integration challenges with their

on-premise and/or mission-critical systems.





67%

Critical Priority






and Design Guidance



Utilzation of Saas










0%

5%

10%

15%

20%

25%

30%

35%

40%

ITG

overnance

Information

Managem

ent

ApplicationH

osting

TechnologyP

ortfolio

Intergration

ApplicationsP

ortfolio

19% 22% 15% 35% 23% 22%


0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

0.5

1.0

1.5

2.0

Com

plex

ity G

ap


2.5

3.0

1. 2. 3. 4.

5. 6. 7. 8.



IT Govenance

Application Hosting




Degree of

Multitenancy

Degree of S

erverVisualisation

Num

ber HW

/SW

Versions vs Target

Volume of M

issionC

ritical Apps

Rem


0%

20%

40%

60%

80%

100%

48% 72% 21% 51% 45%


and Transportation


Autom

otive

Aerospace

and Defense

Manufacturing and

Consum

er Products

Telecomm

unications

Business and

Technology Services


ervices

Energy and U

tilities

Healthcare,

Pharm

aceutical andLife S

ciences

Governm

ent and Other

Public S

ectors

Education andR

esearch

Media and

Entertainm

ent

Engineering andC

onstruction

High

Technology

Retail and

Wholesale

Proffesional S

ervices

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

17% 16% 13% 11% 10% 8% 6% 6% 5% 5% 5% 4% 4% 4% 2% 0% 0%




Data

Transformation

Policy

Metadata

Managem

ent Policy

MD

M P

olicy

Data G

overnanceP

olicy

0%

20%

40%

60%

80%

100%

27% 24% 24% 21%

Architecture

Review

Process

Architecture and

Design G

uidance

Rationalization

Process

0%

20%

40%

60%

80%

100%

19% 35% 33%

Architecture

Review

Process

Architecture and

Design G

uidance

Rationalization

Process

0%

20%

40%

60%

80%

100%

28% 31% 40%

Integration R

equirements

Timing

Method of A



Tracking

Num

ber of HW

/SW

Versions vs Target

Degree of S

erverVirtualization

Degree of

Multi-tenancy

Data G

overnanceP

olicy

MD

M P

olicy

Metadata

Managem

entP

olicy

Data

Transformation

Policy

Architecture and

Design G

uidance

Architecture R

eview

Process

Rationalization

Process

Utiilization of S

aas

Volume of M

issionC


Volume of C

ustomA

pplications

Rem


0%

10%

20%

30%

40%

50%

60%

70%

80%

48% 35% 72% 28% 31% 40% 20% 21% 39% 51% 45% 27% 24% 22% 21%


HW

/SW

Adherence

to Standards

33%35% 19%


8

DE-CLUTTERING HARDWARE AND SOFTWARE

Organizations have made strides in simplifying the software environment by:

• Reducing reliance on legacy technologies (i.e. older technologies that are no longer part

of the standard environment but are maintained due to existing applications that only

run on that platform).

• Reducing the overall volume of large-scale, mission-critical applications.

In parallel, organizations have reduced the likelihood of future hardware proliferation by:

• Increasing use of server virtualization.

• Increasing utilization of multi-tenancy.

However, organizations still face significant challenges when it comes to managing the number

of hardware and software versions in their IT environments. Only 21 percent of respondents

gave themselves a rating of “strong maturity” in this area.

Organizations Reporting Strong Maturity

100%

80%

60%

40%

20%

0%

48% 72% 21% 51% 45%

Degree of

Multitenancy

Degree of S

erverVisualisation

Num

ber HW

/SW

Versions vs Target

Volume of M

ission C

ritical Apps

Rem


Invest in FutureSimplify Existing Complexity Complexity Reduction

9

THE PATH FORWARD: RECOMMENDATIONS TO SIMPLIFY HARDWARE AND SOFTWARE ENVIRONMENTS

SIMPLIFY EXISTING COMPLEXITY

Build new applications for easy retirement. During the requirements gathering phase, identify features and specifications

that will make it easier to upgrade or replace applications as business needs evolve. Key elements include alerts and monitoring

capabilities that signal low utilization and the ability to set application expiration dates.

Fast-track retirement for technologies similar to recent retirees. Once there is a clear view on what makes for a good

retirement candidate, create two tracks for retirement. The first track is for technologies that do not adhere to the “ideal”

criteria, in which case a full review may be necessary. For technologies that fit the retirement profile, create a more

lightweight review process to accelerate removal and minimize bureaucracy without absorbing too much risk.

INVEST IN FUTURE COMPLEXITY REDUCTION

Understand organizational tolerance for server multi-tenancy. Business partners are often wary of multi-tenancy, fearing that

outages in one application can have broader impact. Assess where there is acceptable risk for multi-tenancy (e.g. non-mission

critical applications) for targeted utilization of the private cloud.

Enable dynamic management of workloads. Establish controls to automatically turn off unused capacity to ensure maximum

resource efficiency.

Provide visibility into metered usage. A key component of cloud computing is providing transparency into resource usage.

Establish “showbacks” to provide visibility into the relationship between consumption and costs.






67%

Critical Priority






and Design Guidance



Utilzation of Saas










0%

5%

10%

15%

20%

25%

30%

35%

40%

ITG

overnance

Information

Managem

ent

ApplicationH

osting

TechnologyP

ortfolio

Degree of

Multitenancy

Degree of S

erverVisualisation

Num

ber HW

/SW

Versions vs Target

Volume of M

issionC

ritical Apps

Rem


Intergration

ApplicationsP

ortfolio

19% 22% 15% 35% 23% 22%


IT environments.

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

0.5

1.0

1.5

2.0

Com

plex

ity G

ap


2.5

3.0

1. 2. 3. 4.

5. 6. 7. 8.



IT Govenance

Application Hosting



0%

20%

40%

60%

80%

100%

48% 72% 21% 51% 45%


Degree of

Multitenancy

Degree of S

erverVisualisation

Num

ber HW

/SW

Versions vs Target

Volume of M

issionC

ritical Apps

Rem


0%

20%

40%

60%

80%

100%

48% 72% 21% 51% 45%


and Transportation


Autom

otive

Aerospace

and Defense

Manufacturing and

Consum

er Products

Telecomm

unications

Business and

Technology Services


ervices

Energy and U

tilities

Healthcare,

Pharm

aceutical andLife S

ciences

Governm

ent and Other

Public S

ectors

Education andR

esearch

Media and

Entertainm

ent

Engineering andC

onstruction

High

Technology

Retail and

Wholesale

Proffesional S

ervices

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

17% 16% 13% 11% 10% 8% 6% 6% 5% 5% 5% 4% 4% 4% 2% 0% 0%




Architecture

Review

Process

Architecture and

Design G

uidance

Rationalization

Process

0%

20%

40%

60%

80%

100%

19% 35% 33%

Architecture

Review

Process

Architecture and

Design G

uidance

Rationalization

Process

0%

20%

40%

60%

80%

100%

28% 31% 40%

Integration R

equirements

Timing

Method of A



Tracking

Num

ber of HW

/SW

Versions vs Target

Degree of S

erverVirtualization

Degree of

Multi-tenancy

Data G

overnanceP

olicy

MD

M P

olicy

Metadata

Managem

entP

olicy

Data

Transformation

Policy

Architecture and

Design G

uidance

Architecture R

eview

Process

Rationalization

Process

Utiilization of S

aas

Volume of M

issionC


Volume of C

ustomA

pplications

Rem


0%

10%

20%

30%

40%

50%

60%

70%

80%

48% 35% 72% 28% 31% 40% 20% 21% 39% 51% 45% 27% 24% 22% 21%


HW

/SW

Adherence

to Standards

33%35% 19%


10

BIG DATA READINESS

In an era of analytics, poorly managed information can undermine organizations’ ability to draw

intelligence from big data. Less than one-quarter of IT executives say that their information

management policies are mature (i.e. formal, standardized, and adhered to) across four key policy areas:

• Data governance

• Master data management (MDM)

• Metadata management

• Data transformation

This is an urgent challenge for today’s data-driven organizations, where lines of business are

increasingly demanding faster, easier access to analytics.


100%

80%

60%

40%

20%

0%

27% 24% 24% 21%

Data

Transformation

Policy

Metadata

Managem

ent Policy

MD

M P

olicy

Data G

overnanceP

olicy

11

THE PATH FORWARD: RECOMMENDATIONS TO SIMPLIFY INFORMATION MANAGEMENT

Integrate line-of-business partners into policy creation. Standards can’t be imposed

on the business by IT. Bring line-of-business partners into standards decisions and discussions

to ensure that policies are relevant. Business partners are more likely to adhere to standards

if they play a role in determining when data standards make sense and where flexibility

is paramount.

Leverage heavy data users to drive consensus on common enterprise data definitions.

Knowledge workers are the heaviest users of enterprise data. Look to them for guidance

to ensure definitions are clear and consistent. To establish data standards create cohorts

of knowledge workers that share similar data needs and manage similar processes.

Establish accountability for data. Data is a critical business asset and needs to be managed

as such. To establish clear accountability for data stewardship, define dedicated roles and

responsibilities for monitoring quality and driving adherence to standards. Ensure business

partner representation on stewardship boards and roles to ensure that standards and policies

evolve with business conditions and priorities.

Pragmatically approach Master Data Management. MDM initiatives often fail due to the

vast scope of the effort. Instead of pursuing MDM comprehensively, prioritize the most critical

master data domains based on their importance to financial performance and staff productivity,

and the number of systems the data touches.

Federate your metadata model. Create a federated metadata model to maintain consistency

of core, enterprise metadata, while letting lines of business customize extended metadata

for asset types that are used mainly (or only) by their LOB.






67%

Critical Priority






and Design Guidance



Utilzation of Saas










0%

5%

10%

15%

20%

25%

30%

35%

40%

ITG

overnance

Information

Managem

ent

ApplicationH

osting

TechnologyP

ortfolio

Degree of

Multitenancy

Degree of S

erverVisualisation

Num

ber HW

/SW

Versions vs Target

Volume of M

issionC

ritical Apps

Rem


Intergration

ApplicationsP

ortfolio

19% 22% 15% 35% 23% 22%


0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

0.5

1.0

1.5

2.0

Com

plex

ity G

ap


2.5

3.0

1. 2. 3. 4.

5. 6. 7. 8.



IT Govenance

Application Hosting



0%

20%

40%

60%

80%

100%

48% 72% 21% 51% 45%


Degree of

Multitenancy

Degree of S

erverVisualisation

Num

ber HW

/SW

Versions vs Target

Volume of M

issionC

ritical Apps

Rem


0%

20%

40%

60%

80%

100%

48% 72% 21% 51% 45%


and Transportation


Autom

otive

Aerospace

and Defense

Manufacturing and

Consum

er Products

Telecomm

unications

Business and

Technology Services


ervices

Energy and U

tilities

Healthcare,

Pharm

aceutical andLife S

ciences

Governm

ent and Other

Public S

ectors

Education andR

esearch

Media and

Entertainm

ent

Engineering andC

onstruction

High

Technology

Retail and

Wholesale

Proffesional S

ervices

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

17% 16% 13% 11% 10% 8% 6% 6% 5% 5% 5% 4% 4% 4% 2% 0% 0%


Data

Transformation

Policy

Metadata

Managem

ent Policy

MD

M P

olicy

Data G

overnanceP

olicy

0%

20%

40%

60%

80%

100%

27% 24% 24% 21%

Architecture

Review

Process

Architecture and

Design G

uidance

Rationalization

Process

0%

20%

40%

60%

80%

100%

28% 31% 40%

Integration R

equirements

Timing

Method of A



Tracking

Num

ber of HW

/SW

Versions vs Target

Degree of S

erverVirtualization

Degree of

Multi-tenancy

Data G

overnanceP

olicy

MD

M P

olicy

Metadata

Managem

entP

olicy

Data

Transformation

Policy

Architecture and

Design G

uidance

Architecture R

eview

Process

Rationalization

Process

Utiilization of S

aas

Volume of M

issionC


Volume of C

ustomA

pplications

Rem


0%

10%

20%

30%

40%

50%

60%

70%

80%

48% 35% 72% 28% 31% 40% 20% 21% 39% 51% 45% 27% 24% 22% 21%


HW

/SW

Adherence

to Standards

33%35% 19%


12

IT GOVERNANCE HAS ROOM TO IMPROVE

Whereas de-cluttering the hardware and software environment helps rationalize the existing

environment, IT governance can be used to minimize future complexity. IT must improve its

ability to establish formal, long-term retirement strategies and technology lifecycle roadmaps.



Architecture

Review

Process

Architecture and

Design G

uidance

Rationalization

Process

0%

20%

40%

60%

80%

100%

19% 35% 33%


13

THE PATH FORWARD: RECOMMENDATIONS TO SIMPLIFY IT GOVERNANCE

Improve roadmapping quality and usability. Measure and monitor the two dimensions of

roadmaps that have most impact on business executives: completeness and graphics quality.

Establish minimum readability thresholds that all roadmaps must meet. Develop a simple checklist

against which roadmaps can be objectively scored. Make sure roadmaps that don’t meet the

threshold receive clear guidance.

Design a standards framework that is relevant to the business. Create a standardized

taxonomy that will allow for more or less flexibility depending on the need for agility in the related

business process.

Communicate criteria for standards application and exceptions. Many project teams lack an

understanding of how to apply standards to different project circumstances. Create a framework

that communicates how standards should be applied and where exceptions can be allowed.

Synchronize roadmapping with strategic and annual planning processes. Disjointed

enterprise, business unit, and IT planning processes can destroy the clarity of IT investment

benefits and timelines. Understand precisely where roadmaps have a role to play in strategic and

annual planning, and ensure that roadmaps are kept up-to-date and available to key stakeholders.

Develop an architecture review board, but keep it focused. Many architecture review boards

attempt to review too many projects and thus end up failing to provide any tangible value.

Establish an upfront questionnaire to determine the optimal role of the board for any given project.






67%

Critical Priority






and Design Guidance



Utilzation of Saas










0%

5%

10%

15%

20%

25%

30%

35%

40%

ITG

overnance

Information

Managem

ent

ApplicationH

osting

TechnologyP

ortfolio

Degree of

Multitenancy

Degree of S

erverVisualisation

Num

ber HW

/SW

Versions vs Target

Volume of M

issionC

ritical Apps

Rem


Intergration

ApplicationsP

ortfolio

19% 22% 15% 35% 23% 22%


IT environments.

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

0.5

1.0

1.5

2.0

Com

plex

ity G

ap


2.5

3.0

1. 2. 3. 4.

5. 6. 7. 8.



IT Govenance

Application Hosting



0%

20%

40%

60%

80%

100%

48% 72% 21% 51% 45%


Degree of

Multitenancy

Degree of S

erverVisualisation

Num

ber HW

/SW

Versions vs Target

Volume of M

issionC

ritical Apps

Rem


0%

20%

40%

60%

80%

100%

48% 72% 21% 51% 45%


and Transportation


Autom

otive

Aerospace

and Defense

Manufacturing and

Consum

er Products

Telecomm

unications

Business and

Technology Services


ervices

Energy and U

tilities

Healthcare,

Pharm

aceutical andLife S

ciences

Governm

ent and Other

Public S

ectors

Education andR

esearch

Media and

Entertainm

ent

Engineering andC

onstruction

High

Technology

Retail and

Wholesale

Proffesional S

ervices

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

17% 16% 13% 11% 10% 8% 6% 6% 5% 5% 5% 4% 4% 4% 2% 0% 0%




Data

Transformation

Policy

Metadata

Managem

ent Policy

MD

M P

olicy

Data G

overnanceP

olicy

0%

20%

40%

60%

80%

100%

27% 24% 24% 21%

Architecture

Review

Process

Architecture and

Design G

uidance

Rationalization

Process

0%

20%

40%

60%

80%

100%

19% 35% 33%

Integration R

equirements

Timing

Method of A



Tracking

Num

ber of HW

/SW

Versions vs Target

Degree of S

erverVirtualization

Degree of

Multi-tenancy

Data G

overnanceP

olicy

MD

M P

olicy

Metadata

Managem

entP

olicy

Data

Transformation

Policy

Architecture and

Design G

uidance

Architecture R

eview

Process

Rationalization

Process

Utiilization of S

aas

Volume of M

issionC


Volume of C

ustomA

pplications

Rem


0%

10%

20%

30%

40%

50%

60%

70%

80%

48% 35% 72% 28% 31% 40% 20% 21% 39% 51% 45% 27% 24% 22% 21%


HW

/SW

Adherence

to Standards

33%35% 19%


14

INTEGRATION COMPLEXITY IN THE CLOUD ERA

Only one-third of respondents indicated they can accurately identify integration requirements during

the early phases of a new project. This lack of early insight can often lead to a project taking longer,

and costing more, than originally anticipated.

As adoption of Software as a Service (SaaS) grows, the need to identify these requirements

early on becomes even more acute—particularly since vendor pricing typically does not include

money spent on integration efforts.

When deciding whether to implement SaaS, organizations must identify integration

requirements early in the process, in order to estimate the true, total cost of ownership.


100%

80%

60%

40%

20%

0%

28% 31% 40%

Architecture

Review

Process

Architecture and

Design G

uidance

Rationalization

Process

15

THE PATH FORWARD: RECOMMENDATIONS TO SIMPLIFY INTEGRATION

Begin inventory of common integration needs.

Critical to reducing integration time is having a library of services.

Identify the most common services and establish standards for

reuse. Start with identifying where there has been the highest

volume of point-to-point integration, as this signals the greatest

opportunity to remove complexity.

Define criteria for integration service creation. Ensuring reuse

of integration services can significantly reduce duplicated efforts.

However, clarity into which services have the greatest potential

for reuse can be low. To identify the best candidates, look for

integration services that map to foundational functions within the

enterprise—such as finance—since they are likely targets

for integration.

Organize and publicize your integration services library.

A library of integration services is only valuable if it’s widely

used. Publicize the volume of reuse and document the amount

of time saved in order to create incentives for adoption.

Consolidate similar integration services to improve

reusability and ROI. Once a library of services has been created,

look for similar services. Consolidate similar services based on

volume of usage, possibly pulling the most valuable component

parts of each service to build a more refined option.

CONCLUSION

In the era of big data and cloud services, new approaches are needed to simplify the IT environment and reduce complexity.

Integrated cloud offerings that include software, platform and infrastructure as a service are one approach to reducing complexity,

as well as improving ease-of-use and deployment. A complete big data architecture to manage both structured and unstructured

data can help companies reduce the high levels of complexity related to information management. Finally, an IT stack designed

and built to work together offers a way to reduce the time spent on routine maintenance, integration and testing. Simplifying the IT

environment can help organizations shift time, money and resources away from “keeping the lights on” and towards more strategic,

growth-oriented projects.

To rate your own level of IT complexity, take the survey:

oracle.com/goto/rate-my-IT-complexity

http://oracle.com/goto/rate-my-IT-complexity






67%

Critical Priority






and Design Guidance



Utilzation of Saas










0%

5%

10%

15%

20%

25%

30%

35%

40%

ITG

overnance

Information

Managem

ent

ApplicationH

osting

TechnologyP

ortfolio

Degree of

Multitenancy

Degree of S

erverVisualisation

Num

ber HW

/SW

Versions vs Target

Volume of M

issionC

ritical Apps

Rem


Intergration

ApplicationsP

ortfolio

19% 22% 15% 35% 23% 22%


IT environments.

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

0.5

1.0

1.5

2.0

Com

plex

ity G

ap


2.5

3.0

1. 2. 3. 4.

5. 6. 7. 8.



IT Govenance

Application Hosting



0%

20%

40%

60%

80%

100%

48% 72% 21% 51% 45%


Degree of

Multitenancy

Degree of S

erverVisualisation

Num

ber HW

/SW

Versions vs Target

Volume of M

issionC

ritical Apps

Rem


0%

20%

40%

60%

80%

100%

48% 72% 21% 51% 45%


and Transportation


Autom

otive

Aerospace

and Defense

Manufacturing and

Consum

er Products

Telecomm

unications

Business and

Technology Services


ervices

Energy and U

tilities

Healthcare,

Pharm

aceutical andLife S

ciences

Governm

ent and Other

Public S

ectors

Education andR

esearch

Media and

Entertainm

ent

Engineering andC

onstruction

High

Technology

Retail and

Wholesale

Proffesional S

ervices

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

17% 16% 13% 11% 10% 8% 6% 6% 5% 5% 5% 4% 4% 4% 2% 0% 0%




Data

Transformation

Policy

Metadata

Managem

ent Policy

MD

M P

olicy

Data G

overnanceP

olicy

0%

20%

40%

60%

80%

100%

27% 24% 24% 21%

Architecture

Review

Process

Architecture and

Design G

uidance

Rationalization

Process

0%

20%

40%

60%

80%

100%

19% 35% 33%

Architecture

Review

Process

Architecture and

Design G

uidance

Rationalization

Process

0%

20%

40%

60%

80%

100%

28% 31% 40%






67%

Critical Priority






and Design Guidance



Utilzation of Saas










0%

5%

10%

15%

20%

25%

30%

35%

40%

ITG

overnance

Information

Managem

ent

ApplicationH

osting

TechnologyP

ortfolio

Degree of

Multitenancy

Degree of S

erverVisualisation

Num

ber HW

/SW

Versions vs Target

Volume of M

issionC

ritical Apps

Rem


Intergration

ApplicationsP

ortfolio

19% 22% 15% 35% 23% 22%


0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

0.5

1.0

1.5

2.0

Com

plex

ity G

ap


2.5

3.0

1. 2. 3. 4.

5. 6. 7. 8.



IT Govenance

Application Hosting



0%

20%

40%

60%

80%

100%

48% 72% 21% 51% 45%


Degree of

Multitenancy

Degree of S

erverVisualisation

Num

ber HW

/SW

Versions vs Target

Volume of M

issionC

ritical Apps

Rem


0%

20%

40%

60%

80%

100%

48% 72% 21% 51% 45%




Data

Transformation

Policy

Metadata

Managem

ent Policy

MD

M P

olicy

Data G

overnanceP

olicy

0%

20%

40%

60%

80%

100%

27% 24% 24% 21%

Architecture

Review

Process

Architecture and

Design G

uidance

Rationalization

Process

0%

20%

40%

60%

80%

100%

19% 35% 33%

Architecture

Review

Process

Architecture and

Design G

uidance

Rationalization

Process

0%

20%

40%

60%

80%

100%

28% 31% 40%

Integration R

equirements

Timing

Method of A



Tracking

Num

ber of HW

/SW

Versions vs Target

Degree of S

erverVirtualization

Degree of

Multi-tenancy

Data G

overnanceP

olicy

MD

M P

olicy

Metadata

Managem

entP

olicy

Data

Transformation

Policy

Architecture and

Design G

uidance

Architecture R

eview

Process

Rationalization

Process

Utiilization of S

aas

Volume of M

issionC


Volume of C

ustomA

pplications

Rem


0%

10%

20%

30%

40%

50%

60%

70%

80%

48% 35% 72% 28% 31% 40% 20% 21% 39% 51% 45% 27% 24% 22% 21%


HW

/SW

Adherence

to Standards

33%35% 19%


16

33% 19%

Rationalization

Process

ArchitectureR

eview

Process

Percentage of Organizations Reporting Strong Maturity

Applications Portfolio Integration Technology Portfolio Application Hosting Information Management IT Governance

72% 28% 51% 45%40% 39% 35%31% 27% 24% 22%21% 21%20%

Utiilization of S

aas

Volume of M

ission C


Volume of C

ustom

Applications

IntegrationR

equirements

Timing

Method of A


HW

/SW

Adherence

to Standards

Degree of S

erverVirtualization

Data G

overnanceP

olicy


Tracking

Degree of

Multi-tenancy

MD

M P

olicy

Metadata

Managem

entP

olicy

Architecture and

Design G

uidance

Data

Transformation

Policy

Num

ber of HW

/SW

Versions vs Target

HOW COMPLEXITY VARIES ACROSS INDUSTRIES


and Transportation


Autom

otive

Aerospace

and Defense

Manufacturing and

Consum

er Products

Telecomm

unications

Business and

Technology Services

Banking, Financial andInsurance S

ervices

Energy and U

tilities

Healthcare,

Pharm

aceutical andLife S

ciences

Governm

ent and Other

Public S

ectors

Education andR

esearch

Media and

Entertainm

ent

Engineering andC

onstruction

High

Technology

Retail and

Wholesale

ProffesionalS

ervices

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

17% 16% 13% 11% 10% 8% 6% 6% 5% 5% 5% 4% 4% 4% 2% 0% 0%

Organizations Reporting High Levels of IT Simplicity, by Industry

APPENDIX

80%

70%

60%

50%

40%

30%

20%

10%

0%

48% 35%

Technologies R

emoval of Legacy

Copyright © 2012, Oracle and/or its affiliates. All rights reserved. This document is provided for information purposes only

and the contents hereof are subject to change without notice. This document is not warranted to be error-free, nor subject to

any other warranties or conditions, whether expressed orally or implied in law, including implied warranties and conditions

of merchantability or fitness for a particular purpose. We specifically disclaim any liability with respect to this document and

no contractual obligations are formed either directly or indirectly by this document. This document may not be reproduced or

transmitted in any form or by any means, electronic or mechanical, for any purpose, without our prior written permission.

Oracle and Java are registered trademarks of Oracle and/or its affiliates. Other names may be trademarks of their respective

owners.

AMD, Opteron, the AMD logo, and the AMD Opteron logo are trademarks or registered trademarks of Advanced Micro Devices.

Intel and Intel Xeon are trademarks or registered trademarks of Intel Corporation. All SPARC trademarks are used under license

and are trademarks or registered trademarks of SPARC International, Inc. UNIX is a registered trademark licensed through X/Open

Company, Ltd.

Accelerate and Complete Your HR TransformationMarch 2012Author: Oracle Marketing

Oracle CorporationWorld Headquarters500 Oracle ParkwayRedwood Shores, CA 94065U.S.A.

Find your local Oracle contact number here: http://www.oracle.com/us/corporate/contact/global-070511.html

Oracle.com

17

METHODOLOGY

Oracle conducted an online survey with 544 IT executives in January and February of 2014.

Sample Demographics:

Function/Title:

CIO/CTO/IT Manager, 32%

Infrastructure, 19%

Enterprise Architecture, 13%

Applications, 7%

Other, 29%

Industries Surveyed:

Business and Technology Services

Banking, Financial and Insurance Services

Healthcare, Pharmaceutical and Life Sciences

High Technology

ISV (Independent Software Vendor)

Telecommunications

IT Hardware Vendor

Aerospace and Defense

VAR / System Integrator

Energy and Utilities

Engineering and Construction

Oracle Corporation World Headquarters 500 Oracle Parkway Redwood Shores, CA 94065 U.S.A.

Find your local Oracle contact number here: http://www.oracle.com/us/corporate/ contact/global-070511.html

Oracle.com

Location:

North America, 40%

EMEA, 34%

APAC, 18%

Latin America, 8%

Automotive


Manufacturing and Consumer Products

Retail and Wholesale

Industrial Manufacturing

Media and Entertainment

Travel, Hospitality and Transportation

Government and Other Public Sectors

Education and Research

Professional Services

Copyright © 2014, Oracle and/or its affiliates. All rights reserved. This document

is provided for information purposes only and the contents hereof are subject to change

without notice. This document is not warranted to be error-free, nor subject to any

other warranties or conditions, whether expressed orally or implied in law, including

implied warranties and conditions of merchantability or fitness for a particular purpose.

We specifically disclaim any liability with respect to this document and no contractual

obligations are formed either directly or indirectly by this document. This document

may not be reproduced or transmitted in any form or by any means, electronic or

mechanical, for any purpose, without our prior written permission.

Oracle and Java are registered trademarks of Oracle and/or its affiliates.

Other names may be trademarks of their respective owners.

http://www.oracle.com/us/corporate/contact/global-070511.html

http://www.oracle.com/us/corporate/contact/global-070511.html

http://www.Oracle.com

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