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Summit 2017

Mike Cisek

To the Point: The Five Technology Trends Impacting the Midsize Enterprise

Midsize Enterprise Summit Fall

17 – 19 September 2017 / San Antonio, TX

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Key Issues

1. What defines a midsize enterprise?

2. What five technology trends are impacting the midmarket?

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Key Issues

1. What defines a midsize enterprise?

2. What five technology trends are impacting the midmarket?

3 © 2017 Gartner, Inc. and/or its affiliates. All rights reserved.

How Vendors Define the Midmarket

100 Employees

$50 Million $1 Billion

1000 Employees

Lower Midmarket Upper Midmarket

500 Employees

$500 Million

Storage

Servers and

Virtualization

End Users

Cloud Services

IT Budget

IT Budget % of Rev. WAN Topology

IT Resources

Applications

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What Actually Defines the Midsize Enterprise

Storage73TB

End Users978

Cloud as % of Total Portfolio

19%

WAN26 Sites

Application Portfolio60-80

Revenue$279

IT Budget 2% to 4% of

Rev. $1 to 10M

19 FTE's in IT56% Versatilists

App Developers5

Servers136

Source: Midsize Enterprise Summit West 2016 n = 108

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In the Words of a MSE IT Leader

▪ MSEs have an entirely different economic, cultural and

managerial environment.

▪ We are unique and not just scaled down versions of large enterprises.

It is therefore a mistake to contrast the IT decision-making behavior of

midsize enterprises with that of big companies.

▪ It is important to talk with someone who has a deep understanding of

the characteristics of midsize enterprises:

– Telling me to move everything to cloud does not help me.

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Key Tenets of the Midsize Enterprise

Economic Discipline

Rightsized Approaches

Dyadic Communication

▪ Dyad — A group of two people

▪ The strength of the relationship is evaluated on the basis of the time the individuals spend together as well as the emotional intensity of their relationship

▪ If one of the two fails to complete their duties, the group would fall apart

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Commonality of the Midsize Enterprises

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Key Issues

1. What defines a midsize enterprise?

2. What five technology trends are impacting the midmarket?

9 © 2017 Gartner, Inc. and/or its affiliates. All rights reserved.

Adoption of Agile, Cloud-Inspired Hybrid Infrastructure

Optimal and Advantageous Use of "Anything as a Service (XaaS)"

Use of Enhanced Security Detection and Response Capabilities

Embracing of Platforms That Optimize Operations and Customer Experience

Exploitation of Data and Analytics to Improve Insight and Decision Making, and Deliver Competitive Differentiation, Market Intelligence and User Context

Five Technology Trends Impacting Midsize Enterprises

10 © 2017 Gartner, Inc. and/or its affiliates. All rights reserved.

Hype Cycle for Midsize Enterprises, 2017

From "Hype Cycle for Midsize Enterprises, 2017," 19 July 2017 (G00313408)

Innovation Trigger

Peak of

Inflated Expectations

Trough of Disillusionment

Slope of EnlightenmentPlateau of

Productivity

time

expectations

Years to mainstream adoption:

less than 2 years 2 to 5 years 5 to 10 years more than 10 years

obsolete

before plateau

As of July 2017

Firewall as a Service

Cloud Data Backup

Third-Party Support for ERP

IoT for Customer Service

Self-Service Data Preparation

Micro Data CentersPredictive Analytics

API Management PaaS

Integrated Systems: Hyperconvergence

Analytics for Customer Intelligence

Cloud-Based IT PPM Services

Knowledge Management for Customer Service

Cloud OfficeHybrid Cloud Computing

Integrated IaaSand PaaS

Customer Self-Service Suites

Cloud Access Security Brokers

Cloud-Managed LANsDisaster Recovery as a Service (DRaaS)

Cloud UC (UCaaS)

IAM Managed Services

Managed WLAN

Application Performance Monitoring Suites

Public Cloud SaaS Administrative ERP

Enterprise Mobility Management Suites

IT Event Correlation and Analysis Tools

Visual Data Discovery

Content Services

Develop Your Own App

IDaaS

Application Security as a Service

11 © 2017 Gartner, Inc. and/or its affiliates. All rights reserved.

▪ Cloud Data Backup

▪ Micro Data Centers

▪ Hyperconvergence

▪ Hybrid Cloud Computing

▪ Cloud-Managed LANs

▪ DRaaS

▪ UCaaS

What do we know?

▪ Consolidation and virtualization have

yielded tremendous results.

▪ Integrated infrastructure solutions

consume the fewest technical and

financial resources possible.

▪ Investments must yield tangible results

i.e., improve resource utilization and

reduce complexity.

Adoption of Agile, Cloud-Inspired Hybrid Infrastructure

12 © 2017 Gartner, Inc. and/or its affiliates. All rights reserved.

▪ API Management PaaS

▪ Cloud-Based IT PPM Services

▪ Cloud Office

▪ Integrated IaaS and PaaS

▪ DRaaS

▪ UCaaS

▪ Public Cloud SaaS Administrative ERP

What do we know?

▪ The "right" XaaS can reduce capital

expenses, address skills gaps, and

enhance capabilities.

▪ Adoption and consumption of XaaS

must remain selective, and can be a

venture fraught with peril.

▪ XaaS must be viewed in terms of

impact on business process,

customer experience and

technology architectures.

Optimal and Advantageous Use of "Anything as a Service (XaaS)"

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▪ Firewall as a Service

▪ Content Services (EFSS/ECM)

▪ Cloud Access Security Brokers

▪ IDaaS

▪ IAM Managed Services

▪ Enterprise Mobility Management Suites

▪ Application Security as a Service

What do we know?

▪ Protection from advanced attacks is

needed immediately

▪ Complex solutions and/or large number

of alerts or events are unmanageable

▪ Network and endpoint threat defense

platforms provide access to

advanced behavioral engines for

malware protection

▪ Visibility and control of sensitive data in

public cloud is now a requirement

Use of Enhanced Security Detection and Response Capabilities

14 © 2017 Gartner, Inc. and/or its affiliates. All rights reserved.

▪ Third-Party Support for ERP

▪ Content Services (EFSS/ECM)

▪ IoT for Customer Service

▪ Develop Your Own App

▪ Knowledge Management for Customer Service

▪ Customer Self-Service Suits

▪ Cloud Office

▪ Managed LAN

What do we know?

▪ We need to make it easier for people

to share and exchange information

and ideas.

▪ Increased consumerization of

enterprise technology will enable

digital transformation.

▪ Social and collaborative capabilities

will grow and play a greater role in

user productivity.

Embracing of Platforms That Optimize Operations and Customer Experience

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▪ Self-Service Data Preparation

▪ Predicative Analytics

▪ Analytics for Customer Intelligence

▪ IT Event Correlation and Analysis Tools

▪ Visual Data Discovery

What do we know?

▪ Quick and easy access to analytical

insight from desperate data sources

has endless potential.

▪ High-value insight and decision

making, and from modern architecture

enables teams with scare resources to

be significantly more productive.

Exploitation of Data and Analytics to Improve Insight and Decision Making, and Deliver Competitive Differentiation, Market Intelligence and User Context

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Beware: Frankenstein's Monster!

Frankenstein: Something that destroys or harms the person or people who created it

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Recommended Gartner Research

Hype Cycle for Midsize Enterprises, 2017

Mike Cisek, James A. Browning and Others (G00313408)

Three Steps to Free Up Resources in Midmarket IT Organizations

James A. Browning and Mike Cisek (G00320946)

For more information, stop by Gartner Research Zone.