ZDNet ITPriorities2013 Asia FinalReport

7/27/2019 ZDNet ITPriorities2013 Asia FinalReport

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P a g e | 2 IT Priorities Asia 2013

EXECUTIVE SUMMARY ................................................................................................................................ 4

ABOUT THIS REPORT ................................................................................................................................... 6

REPORT RELEASE SCHEDULE ................................................................................................................................. 6

ABOUT ITPRIORITIES .......................................................................................................................................... 6

ABOUT ZDNET AND CBSINTERACTIVE ................................................................................................................... 6IT PRIORITIES .............................................................................................................................................. 7

OPTIMIZING CUSTOMER PROCESS - THE NUMBER ONE ITPRIORITY ........................................................ ....................... 7

CUSTOMER PROCESS ALSO HEADS THE TOP 3 PRIORITIES LIST ............................................................. ....................... 8

THE STRATEGIC POSITIONING OF ICT ........................................................................................................ 11

ICTS CONTRIBUTION TO THE BUSINESS COULD DO BETTER ................................................................ ..................... 11

THE ROLE OF CXOS IN DRIVING ICT-LED INNOVATION ............................................................. ................................ 12

CEOS ACTIVE INVOLVEMENT IS A BIG FACTOR............................................................. ........................................... 13

CEO INVOLVEMENT IN ICT IMPACTS BUSINESS SUCCESS........................................................... ................................ 14

CXO INVOLVEMENT ALSO IMPORTANT.................................................................................................................. 15

ICT BUDGETS ............................................................................................................................................. 16

ICT EXTERNAL SPENDING IN 2012 .................................................................................................. ..................... 16

ICTEXTERNAL SPENDING IN 2013 TO GROW BY 23% ON AVERAGE ................................................................. .......... 17

SPENDING INCREASES MORE WIDESPREAD IN 2013 COMPARED TO 2012 .................................................................... 18

BUSINESS PROFILE .................................................................................................................................... 19

THE COMPETITIVE POSITIONING OF RESPONDENT BUSINESSES............................................................... ..................... 19

ANNUAL REVENUES........................................................................................................................................... 20

DATACENTRE ............................................................................................................................................ 21

ROLE WITH RESPONSIBILITY FOR DATACENTRE ............................................................. ........................................... 21

DATACENTRE BUDGET IN 2013 V.2012 ......................................................... ...................................................... 22

MOST IMPORTANT DATACENTRE PROJECT IN 2013 ............................................................................ ..................... 23

BUSINESS OBJECTIVES OF THE MOST IMPORTANT DATACENTRE PROJECT ............................................................ .......... 24

CURRENT IMPLEMENTATION STATUS.................................................................................................................... 25

FUTURE IMPLEMENTATION / UPGRADE PLANS ............................................................. ........................................... 26

EXTENT OF VIRTUALISATION................................................................................................................................ 27

CLOUD ...................................................................................................................................................... 28

ROLE WITH RESPONSIBILITY FOR PRIVATE CLOUD.......................................................... ........................................... 28

ROLE WITH RESPONSIBILITY FOR PUBLIC CLOUD............................................................ ........................................... 29CLOUD EXTERNAL ICT SPENDING 2013 V.2012 .................................................................................................... 30

MOST IMPORTANT CLOUD PROJECT IN 2013 .............................................................. ........................................... 31

BUSINESS OBJECTIVES OF MOST IMPORTANT CLOUD PROJECT ............................................................... ..................... 32

CURRENT IMPLEMENTATION STATUS.................................................................................................................... 33


IT SECURITY .............................................................................................................................................. 35

RESPONSIBILITY FALLS ON SENIOR IT MANAGEMENT ................................................................ ................................ 35

FORMALIZED SECURITY POLICIES STILL NOT A BUSINESS NORM .............................................................. ..................... 37


ANALYTICS ................................................................................................................................................ 43


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Some technologies take precedence in supporting key business and IT priorities.

In the datacentre, server virtualisation is this years biggest focus (30% of businesses are working

on it in 2013). The most prevalent variant of cloud will be private cloud, and 44% will work on

such projects.

Despite the increasing security threats, the main focus in terms of IT Security is still

network/perimeter security - 31% of businesses are implementing and/or upgrading these

capabilities.

In analytics, traditional tools like OLAP and data warehousing are the priority for 38% of

businesses, way ahead of the newer big data analytics technologies, while in the network arena

the primary focus is on network management tools.

Asian IT a changing picture

The IT landscape in Asia can be thought of as one viewed through a shimmering heat haze.

Sometimes the picture comes into focus, sometimes its less distinct. Its always changing, and

changing differently in each country especially as emerging economies race forward, with

concomitant demands on IT developments.

This report is but one snapshot of that changing landscape, one we at ZDNet Asia hope adds to

the clarity of the picture. The picture consists of many metaphorical pixels, and in the case of IT

Priorities the pixels are the 1,236 of ZDNets audience who contributed around 20 minutes of

their time to help us form a larger understanding. We sincerely thank you all for your

contribution.


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About this report

Report Release Schedule

Initial Report

This report represents the initial release of survey findings forZDNet AsiaIT Priorities 2013.

Subsequent Reports

We will release subsequent addendums with further details on some of the technology areascovered at top-line level in this report. The first of these reports,ZDNet Asia IT Security Priorities

2013 sponsored by FireEye, is also released during w/c 18 Mar 2013. Please check back

tohttp://www.zdnetasia.comfor further category reports.

About IT Priorities

This is the third Asian instalment ofIT Priorities, an annual survey from CBS Interactive about the

strategies, priorities and implementation plans of IT leaders and professionals across the globe.In addition to this report, CBS Interactive is releasing reports covering IT markets in India, China,

USA, UK, France, and Australia and New Zealand in coming weeks.

Please refer to the Methodology chapter at the end of this report for more information about the

report scope, respondent base and topics covered.

About ZDNet and CBS Interactive

ZDNet (www.zdnet.com) is where technology means business. The site attracts an enthusiasticand interactive audience of business technology influencers, many of whom visit for the latest

coverage and analysis of how technology impacts business.

Business leaders and decision makers including CEOs, CIOs and IT professionals at all levels value

the site due to its extensive resources, enabling them to make the most out of technology for

their business challenges.
http://www.zdnetasia.com/http://www.zdnetasia.com/http://www.zdnetasia.com/http://www.zdnet.com/http://www.zdnet.com/http://www.zdnet.com/http://www.zdnet.com/http://www.zdnetasia.com/


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IT Priorities

Optimizing customer process - the number one IT Priority

In line with international trends, customers are getting most ICT attention in Asia

Optimising business processes for customers is the number one ICT priority in over one-quarter of organizations (28%). This is a clear indication that ICT is now more focused outside

the organization than inside (only 8% say internal business processes are a priority).

The focus on customers is emphasised by the fact 10% are giving priority to improvinginformation management for more informed decision-making (e.g. using data warehouses,

analytics, big data) it is the 3rd highest priority.

Internal customers matter too. ICT teams are also putting emphasis on delivering on ITservice levels a priority for 14% of organizations.

Some of the focus on optimising customer processes will be made possible by reducing ICT

spending elsewhere

A total of 17% are prioritising cost-reduction initiatives including reducing overall business costs

(6%), reducing overall ICT costs (4%), increasing efficiencies in the datacentre (4%), and moving

to cloud architecture (3%).


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Customer process also heads the top 3 priorities list

This chart shows the priorities ranking when all 3 top priorities are included (as opposed to just

the number one priority as with the previous page). The ranking of the list is practically the same

as the previous chart, but some of the other topics are closer to optimising customer process bydint of picking up 2

ndand 3

rdpriority nominations.


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Large organizations are giving marginally more emphasis to optimising business processes for

customers (30%) than small (26%) and medium sized organizations (21%). Making it easy for

customers to do business through whichever channel they choose is key here. Small and

medium sized businesses cant afford to fall behind.

While Western surveys indicate ongoing efforts to migrate to Cloud architectures, such a shiftis not a leading priority for Asian organizations (only 3% rate it as a priority), perhaps due to

lower internal cost bases than in the west or concerns about data sovereignty.

Only 4% of respondents rate reducing overall ICT costs as a priority Across organizations of all sizes, delivering on IT service levels and improving information

management are the second and third strongest priorities, with the exception of medium

sized organizations which rank optimising business processes with suppliers as their third

biggest priority.


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IT priorities vary by economy. Reducing overall business costs and reducing overall IT Costs is a

much bigger priority for Singapore, while internal business processes figure more strongly for

Indonesian organizations.

SG MY ID PH Other

Optimising business processes forcustomers - e.g. CRM, self-service portals,

e-commerce etc. 27% 23% 27% 32% 22%

Delivering on IT service levels (e.g. service

availability, responsiveness) to business

users 16% 15% 12% 15% 12%

Improving Information Management for

more informed decision making (e.g. data

warehousing, data analytics, Big data etc.) 5% 7% 11% 14% 11%

Optimising internal business processes -

e.g. HR, Finance etc. 6% 8% 14% 7% 8%

Optimising business processes withsuppliers - e.g. ERP, Supply chain,

procurement etc. 6% 10% 9% 6% 13%

Providing a secure ICT environment 6% 8% 7% 7% 3%

Reducing overall business costs 12% 7% 3% 4% 8%

Reducing overall ICT costs 8% 3% 7% 1% 5%

Increasing efficiencies / reducing costs in

the datacentre 4% 5% 5% 4% 3%

Recruiting and developing the best ICT

talent 2% 4% 2% 5% 6%

Providing fail-safe disaster recovery and

back-up capabilities 4% 5% 2% 1% 2%

Moving to a Cloud architecture 3% 3% 2% 3% 4%

Other 1% 1% 1% 1% 2%


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The strategic positioning of ICT

ICT in business has initially been seen as a support function where expensive technology was used

to perform basic isolated functions, typically such as financial accounting, or stock control or

order processing. The growth of networking and the internet greatly increased the utility of ICT

(think email and electronic transactions in the supply chain), and now ICT has become central to

the operations of most organizations. Some organizations have gone a step further to the point

where ICT is not just supporting the business, in many cases it is the basis for the success and

development of the business. This section looks at the way organizations perceive ICTs

contribution to their performance, and at the involvement of senior executives in ICT-led

transformations.

ICTs contribution to the business could do better

This chart shows respondents perceptions of the way ICT contributes to business performance on

a 4-level hierarchy model (the lowest level is delivering, the highest level is innovating).

ICT is making a big contribution in one-quarter of businesses, but in most others it is merely

delivering adequate service, or helping improve processes in limited ways

Only one-quarter of respondents say their organization has a major contribution from ICT(15% say ICT is innovating, 10% say it is differentiating).

At the lowest level of the hierarchy, 35% say ICT is just delivering providing infrastructureand applications but concentrating on delivering established services without improvements.

40% reckon ICT is improving helping make specific business process more efficient andeffective.


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In nearly half (47%) of the large organizations surveyed, ICT is perceived to be delivering

infrastructure, applications and databases as well as established services, but in only 16% is it

perceived as innovating and in even less (9%) as differentiating.

Small and medium-sized organizations are more likely to rely on ICT to differentiate them inmarkets against their larger competitors (the 3

rd

level on the model), but a higher proportionof larger organizations (16%) have ICT contributing at the 4th level of the model (innovating).

45% of small organizations use ICT merely to improve specific business processes rather thanin a more transformational way. However, these organizations also plan to ramp up their

external ICT spending, indicating they intend to drive change and competitiveness through

increased ICT investment (See ICT Budgets).

ALL


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CEOs active involvement is a big factor

Active leadership and sponsorship from the CEO is vital for any organization seeking to extract

real value and competitive advantage from ICT investment.

Organizations where the CEO is proactively driving ICT-led change are almost twice as likely toreport that their business is leveraging ICT at the highest level (innovating) in a four-level

hierarchy. 20% of such businesses say the role of ICT is innovating, compared to just 12% of

businesses where the CEO is not proactively involved.

The chart shows the level at which ICT contributes to an organization for two types ofbusinesses those where the CEO is proactively driving ICT-led change a lot or to a great

extentcompared to businesses where thats not the case.


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CEO involvement in ICT impacts business success

While the active involvement of the CEO and other C-level executives helps drive ICT

performance, it is also clear that ICTs ability to deliver innovation and not just services feeds

directly into overall business performance. That makes the case for executive leadership fromoutside the ICT group even more compelling

Organizations where the CEO is proactively driving ICT-led change are much more likely to beperforming better than those where the CEO is not so involved.

33% of such businesses say theyre significantly outperforming industry peers, compared toonly 19% of other businesses where business success is mostly mediocre.


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CXO involvement also important

The active involvement of other C-level executives in ICT-led change also produces significant

benefits. Combined, the last two findings lead us to conclude that organizations in which IT

remains an autonomous island are in danger of long-term ICT underperformance and of notmaximising their return on ICT investment

Organizations where a minimum of 3 CXOs proactively drive ICT-led change are also morelikely to report theyre leveraging ICT at the highest level (Innovating) in a four-level

hierarchy. 20% of such businesses say the role of ICT is innovating, compared to 16% of

businesses where 3 CXOs are not proactively involved.

Organizations with three or more CXOs proactively driving ICT-led change are also more likelyto be at the third level (differentiating).

This leads us to conclude that organizations in which ICT appears to be performing well to itsown metrics (for example, service measures) need to think more broadly about how ICT isperforming in driving business success.


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ICT Budgets

ICT external spending in 2012

44% of respondents report ICT external spending (i.e. not including ICT staff salaries and

internal costs) as US$ 99K or less in the past financial year). This reflects the spread of

organization sizes in Asia, and in the sample for this study.

16% had external spending of US$ 100K to $999K, and 12% spent between US$1m and $49m. 5% of respondents had external budgets of US$50m and above, while 23% of respondents did

not know their companys overall ICT external budgets.


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ICT External Spending in 2013 to grow by 23% on average

Small organizations are expecting to increase their external ICT spending more than medium

and large organizations, indicating both that they are coming off a lower base of service

delivery and know they need to improve.

On average, respondents say external ICT spending will increase in 2013 by 23% compared to2012.

The percentage increases will be smallest in larger organizations (those with 500+ staff willhave 19% increases) and largest in small businesses (23% for businesses with less than 100

staff).

Respondents say their external ICT spending increases are more widespread in 2013, compared

to 2012, than they were in the 2012 study - compared to 2011 (see chart over).

More than two-thirds (67%) report planned spending increases of 10% or more. 37% will get20% or more.

Only 9% will have reduced external spending in 2013.


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Spending increases more widespread in 2013 compared to 2012

Three-quarters (75%) of businesses will increase external IT spending in 2013 compared to 2012.

The corresponding survey in 2012 reported that 60% had increased budgets. The proportion of

businesses with increases this year is almost double that from the 2012 IT Priorities study.


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Business Profile

The competitive positioning of respondent businesses

There is possibly a misperception among the respondents over the competitive positioning of

their organizations. Half say they are outperforming, and yet a third more say they are on a par

with their peers. They cant all be right, although the imbalance in the answers is also partly

due to the nature of the sample where more of the successful businesses have probably

responded (because they are keen to see how they compare to their peers).

One-half of respondents say theyre ahead of the competition 26% are significantlyoutperforming industry peers and 24% are slightly outperforming.

Just over one-third (36%) say their performance is about the same as peers 14% say theyre underperforming either slightly (9%) or significantly (5%) In reality, more organizations may be underperforming than either realise or admit here.

Their failure to accurately gauge this must be a risk factor for their businesses as it could be

read to indicate a degree of complacency about their relative performance

63% of large organizations say they are outperforming their peers and another 28% say they are

on a par with their peers

Small and medium sized organizations are rather more critical of their own performance thanlarge ones.

ALL


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Datacentre

Role with responsibility for Datacentre

CIOs and CTOs hold the keys

Senior IT Management (e.g. CIOs, CTOs and IT Manager) have responsibility fordatacenter in 52% of organizations, and IT infrastructure staff hold that role in 23% of

businesses.

Executive management and department heads together hold sway over thedatacentre in 7% of companies. These are typically C-level executives of smaller firms.


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Datacentre budget in 2013 v. 2012

Datacentre budget shows highest growth across IT categories

Asian businesses report that external ICT spending on datacenters will grow by 24% in2013. That's the biggest growth in budget across the categories surveyed in the study.

The spending increase is similar across all sizes of business that disclosed theirbusiness size.

This is in line with the ongoing activity to transform datacenters reported in thisresearch study. It also reflects Gartners prediction of growing data center spending

in the Asia-Pacific (Gartner predicts a growth in datacenter spending of 9.5% to

US$28.6 million in 2013 - above its prediction of a 8% rise in overall IT expenditure)


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Most important datacentre project in 2013

Server virtualisation seen as key to performance

Server virtualizations are the most important datacenter projects this year for 30% oforganizations.

The top result is in line with growing interest in the software-defined datacenter. Second on the list are managed services/co-location initiatives rated most important

by 13% of respondents.

Bottom choices are the implementation of hybrid cloud and public cloudwith only5% of respondents saying these are the most important datacenter initiative.


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Business objectives of the most important datacentre project

Datacenter projects heavily focused on cost objectives.

Almost one-half (49%) of respondents cite a cost-related objective for their mostcritical 2013 datacenter project.

20% of Asian businesses aim to achieve cost efficiencies through better hardwareutilization; 16% say their primary objective is to cut costs in the business generally;

and 13% are looking for cost efficiencies through automation in the datacenter.

The focus on relieving cost pressures and improving productivity comes against abackdrop of lingering global economic uncertainty and downward pressure on

business costs generally, and also on IT budgets.

These stated priorities reflect the growing desire of organizations to spend less onmaintaining their IT infrastructure, and shift those savings into IT that builds

competitive advantage. That is congruent with the 13% who report the primary

objective of their datacenter projects is to increase sales.

Continuing with the sales theme, 9% say their datacenter project objective is todevelop new ways of connecting with customers, and 10% say its to build a more

agile business model.


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Current Implementation Status

Big push to virtualise servers

41% of organizations have completed virtualization initiatives, and a further 32%have a project underway. When the latter group completes those projects, around

three-quarters (73%) of Asian businesses will have virtualized their servers.

Over one-quarter (29%) of companies have virtualized storage, and 25% havevirtualized their network, while one-fifth have implemented managed services or co-

location models.

Cloud projects received the least attention, with the implementation of a hybrid cloudmodel at the bottom of the list, with only 10% of firms having done so - although

another 24% rolling it out.


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Future Implementation / upgrade plans

Virtualisation seen as way forward

While server and storage virtualization projects will be to the fore in 2013, a growingproportion of businesses (32%) will be virtualizing their networks in 2013, as will the

proportion (28%) who are virtualizing desktops and laptops.

The project with the least interest was the implementation of the public cloud withonly 20% of firms pursuing this in 2013.

By the end of 2014, around 1 in 2 companies will have embarked on a virtualisationimplementation or upgrade project and most likely will do so to drive cost

efficiencies


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Extent of virtualisation

Mobile devices have most room to be virtualised

While increasing numbers of Asian businesses are virtualizing datacentercomponents, that doesnt mean they have virtualized all their hardware. On average,

businesses have virtualized 41% of their server environment, 38% of storage and 34%

of their network infrastructure.

The segment which received the least attention is tablets/smartphones with only 23%of firms having virtualized those devices. That will most likely increase with the BYOD

trend becoming more prevalent. Allowing employees to do so is increasingly seen as

a way to retain talent.


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Cloud

Role with responsibility for private cloud

Senior IT management have biggest say in private cloud

Senior IT Management own private cloud in the majority of organizations (55%),while in 18% of businesses the responsibility sits with an IT Infrastructure role.

In 10% of organizations senior management (i.e. C-level staff) hold responsibility.Thats typically in firms with fewer than 100 employees.


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Role with responsibility for public cloud

CIO, CTO most commonly manage public cloud

Typically, the same job roles hold responsibility for public cloud as they do for privatecloud.

There is no apparent change to a more devolved model where CXOs and Line ofBusiness heads take direct responsibility for SaaS application solutions specific to

their functions. In simple terms, this suggests the responsibility for acquiring and

managing services like CRM and finance applications via public cloud rests largely with

the CIO rather than the sales chief or CFO.


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Cloud External ICT spending 2013 v. 2012

Smallest budget increase among all categories

The average increase in the cloud budget in 2013 is 16%. Average spending increases are lower (13%) in larger organizations (500+ staff). The spending sentiment on cloud is the lowest among the six categories in the survey.

This reflects other findings showing how ongoing and planned IT projects are

generally more geared towards virtualization of hardware instead of (or as a prelude

to) cloud deployment.


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Most important cloud project in 2013

Private cloud most significant initiative

Private cloud projects are most important in 2013. Almost half the organizations(44%) working on cloud projects rate private cloud their most important cloud

initiative. These are typically embraced most by data sensitive sectors such as

financial services and healthcare.

However, the combined focus on public cloud variants (IaaS, PaaS, SaaS) shows thatsalso a major focus - 33% of organizations rate one of the public cloud variants as their

most important 2013 cloud initiative. When we sum the proportions prioritising

public and hybrid cloud, 52% of businesses say some form of public cloud is important

to their business.

Interest in hybrid cloud implementation (19%) was ranked second, and the resultechoes the views of some industry pundits who predict 2013 to be year of the

hybrid cloud due to an increase in vendor offerings and support.


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Business objectives of most important cloud project

Cost efficiencies the main driver

Businesses say cost reductions are the most important objectives for their mostimportant cloud project. 22% aim to cut costs in the business generally, 17% are

looking for cost efficiencies through better hardware utilisation, and 10% are looking

for cost efficiencies through automation in the datacentre.

16% are targeting increased sales most likely through the use of SaaS apps such asCRM, but possibly through the redeployment of cloud-initiated savings to other

projects.

Businesses agility is the key objective for cloud projects for 15% of organisations asthey look to take advantage of the rapid deployment, scalability and pay-as-you go

funding models of cloud architectures.


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Private cloud a priority

Organizations have prioritised private Cloud thus far, with one-half having eithercompleted an implementation or partly done so (16% have implemented, 34% have

an implementation underway).

Software-as-a-Service (SaaS) is the most common Public Cloud approach, and itslikely many of these businesses use applications such as email and CRM via SaaS

models.

Around two-thirds of businesses have still to adopt public cloud. The least popular approach is Platform-as-a-Service (PaaS) with only 8% having

implemented it and another 24% rolling it out.


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Cloud to go mainstream in 2014

Between one-fifth and one-third of organizations are doing a Cloud project this year.This includes businesses that have a project underway and are continuing the

implementation in 2013, and businesses that are starting a project sometime

between January and December 2013).

2014 is the year when cloud becomes mainstream. By December 2014, 69% will haveimplemented private cloud, and just under 50% will have adopted SaaS, IaaS and

Hybrid models.


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IT Security

Responsibility falls on senior IT managementWith the security landscape increasingly complex, organizations have tasked their senior IT

management with ultimate responsibility for the IT security portfolio.

Senior IT Management (specifically CIOs, CTOs and their direct reports) have responsibility forIT Security in one-half of organizations. 24% give the responsibility to Executive IT

Management (CIOs, CTOSs), 20% to the IT Department manager, and 3% to each of IT

Consultant and Project Management.

Some 28% of organizations believe their security posture is closely linked to infrastructure,assigning responsibility in this area to their IT infrastructure staff.

In 11% of businesses IT security lies in the hands of a securitycompliance/administrator/manager. This is more likely in larger companies 15.3% of

businesses with 500 plus staff do so compared to 8.6% of businesses with less than 100 staff.

For 7% of respondents, senior management (i.e. a C-level staff member) hold responsibilityfor the company's IT security well-being in 4% its the CEO, CFO etc, and in 3% the

department head/director.

This finding is heartening since industry watchers recently mentioned in a ZDNet report that Asian

companies are generally unprepared for cyber attacks compared to their American counterparts

due to a lack of awareness from senior management. They say it will take at least 10 years before

Asian companies catch up with the U.S. in terms of cyber security readiness partly due to lower

awareness.


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Formalized security policies still not a business norm

Despite increasingly sophisticated threats and rising adoption of bring-your-own-device (BYOD) in

the workplace, 32% of organizations in the region still have not established proper security

policies to safeguard their company's IT infrastructure. Also, a majority do not have ISO 27001

certification for Information Security Management System.

One-third of businesses dont have a formal security policy

Most companies (68%) have a formal IT security policy in place. However, almost one-third (32%) of organizations do not have a formal, documented security

policy. These businesses risk the theft of important company data, and also are putting their

stakeholders (customers, suppliers, etc.) in harm's way.

Establishing formal security policies is especially pertinent in the BYOD era where moreemployees are now using their personal devices to carry out work-related tasks and access

the corporate network. Security policies should include guidelines on what kinds of apps are

off-limits, which devices the company is willing to support, and maintaining security patches.

Only a few organizations have ISO 27001 security certification

Only 20% of organizations have ISO 27001 certification for Information Security ManagementSystem (ISMS), and 14% are currently working on acquiring this certification.

Two-thirds (66%) of businesses dont have ISO 27001 certification.


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Business to spend more in 2013 to beef up IT security

It's perhaps comforting to know while not every company has formalized security policies, many

indicate plans to increase the spending on IT security this year. Mid-size and smaller businesses

are making larger IT security budget increases, which is catch-up activity on the larger

organizations.

Overall, respondents say their external spending on IT security will increase by 21% this yearcompared to 2012.

Mid sized businesses (100 to 499 staff) on average will have the largest percentage increasesat 25%.

The average spending increase is lowest (18%) among larger organizations (500+ staff).


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Security goals also linked to sales

Security initiatives are mostly undertaken as part of the company's aim to beef up the overall ICT

infrastructure. Others, though, indicate their security projects are carried out to boost sales.

Some 37% of respondents say improving security of the ICT environment is the key objectivefor deploying their most important IT Security project.

13% say increasing sales is a key objective. That may appear a rather surprising answer, but itlikely refers to improving the security of online transactions with customers an outcome

that will increase customer confidence and consequently sales.

Businesses are also looking for cost efficiencies in their security implementations.


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Perimeter security and security for private/hybrid cloud most widely deployed

While the majority have either deployed or are currently deploying network security, fewer have

done likewise to secure their cloud infrastructure thus far. However, over one-half of

organizations with private and public cloud have a cloud security implementation in progress.

The majority of businesses (62%) have implemented or partly implemented (24%) traditionalnetwork/perimeter security.

But 14% mostly smaller businesses - have not yet done so (22% of businesses with


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Future implementation / upgrade plans

Most businesses give cloud security a pass

Asian organizations have a lot of project activity on their plates this year: over one-third (37%) have an implementation or upgrade for network/perimeter security.

Another 21% will stretch such plans into 2014.

32% will implement security for virtualized environments this year, with 22% planningsimilar projects for 2014.

Around one-quarter will do so for mobile device management, but 47% have no plansto implement such tools. Again, the seemingly lack of plans in the mobile security

space is worrying, given the increasing adoption of BYOD.

Most companies also are choosing to give cloud security a miss, with 54% and 61%having no plans to implement security technologies for private/hybrid and public

clouds, respectively. This is especially worrying as security vendors caution that cloud

computing brings along high security risks including data breaches and loss, heightens

the risk of insider threats, as well as increases the possibility of denial of service

attacks.


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Analytics

Role with responsibility for Analytics

Data intelligence goes to the top

Much has been said about analytics and big data and their potential to provide richerinsights into customers, markets and the general business environment. Small

wonder then senior IT executives have been tasked to oversee their company's data

analytics.

Senior IT Management have responsibility for analytics/big data in 50% oforganizations.

IT Infrastructure staff have responsibility in 20% of organizations, and seniormanagement in 9%.

In 9% of businesses, IT development roles are responsible for analytics/big data.


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Analytics External ICT spending 2013 v. 2012

All company sizes up spending on intelligence

Overall, external spending on analytics / big data will increase by 20% this year compared to2012. This is pretty much the same across the board, regardless of company size.

The budgets at medium and large business will go up by 19% while smaller businesses haveset aside slightly more, increasing their analytics / big data budgets 20%.

It is clear that big data analytics aren't just for large enterprises. Software vendors including

Intuit, SAS, IBM and Oracle all offer services that target small and midsize businesses.

Market estimates put global spending on big data at US$34 billion this year, up from US$28 billion

in 2012.


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Most important Analytics project in 2013

Traditional analytics tools still the preferred way

Despite the growing number of new analytic tools touted by vendors to tap big data,companies in the region are sticking to the tried and tested. The majority are choosing to

focus their analytics initiatives on traditional tools.

38% of businesses say traditional analytics tools (e.g. OLAP, RDBMS and data warehouse) aretheir most important analytics/big data initiatives this year.

Almost one-third (31%) say next generation data warehouse projects are their mostimportant, indicating these have most traction in the new big data market.

Apache Hadoop and packaged big data appliances (often incorporating Hadoop) areconsidered important by fewer businesses (13% and 11% respectively).


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Business objectives of most important Analytics project

Gaining agility through intelligence

By generating intelligence from their data, companies are hoping to be able to move morequickly and boost sales.

The most important outcomes for analytics / big data projects are: build a more agile businessmodel (16%), increase sales (14%), cut costs in the business (14%), and better understand

markets (13%).

Its surprising that increasing customer intimacy was rated most important outcome by nomore than 5% of businesses, despite the oft-cited benefit of improving customer service and

satisfaction through better insights.

At a late 2012 ZDNet panel discussion on big data, panelists described data as the "newnatural resource" for Singapore companies. It provides competitive advantage and offersanother level of insights to support business decisions. Panelists added that the true potential

of big data comes from the ability to combine an organization's own data with data outside

the company's firewall. However, questions remain over the extent to which companies can

justifiably tap the data, amid concerns over user privacy and data regulations.


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Most have some form of analytics

40% have already implemented traditional analytics tools and a further 31% have animplementation underway. When these are completed, close to three-quarters of businesses

will have analytics capabilities in place.

Packaged big data appliances and next generation data warehouses are each implemented at14% of organizations. Close to one-third have implementations of the latter underway.

Hadoop is implemented at 10% of businesses, although implementations are proceeding at afurther 25%. Vendors such as Intel, EMC and Red Hat see market opportunities in Hadoop.

Intel, for instance, recently launched its distribution for Hadoop in the Asia-Pacific region,

singling out telcos and governments as two segments which will benefit from the open source

data tool.


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Upgrade plans focus on traditional analytics

One-third of businesses are working on a project in traditional analytics tools this year, withanother 23 percent planning a similar initiative for 2014.

20% of organizations will execute projects this year in next generation data warehouses,Hadoop and packaged big data appliances

In 2014, between 20% to 26% of businesses will work on projects using non-traditionalanalytics tools.

Industry analysts are expecting focus on business analytics to grow, and software vendors also are

upping their play in the business analytics space. IBM, for instance, has unveiled plans to set up a

business analytics innovation centre in Thailand which it says will offer high-value analytics

products to local customers and those in the Southeast Asian region.

The rise of social networks in Asia such as China's Sina Weibo also has prompted the need for

multilingual analytics and native-language data processing capabilities. Salesforce.com, for

example, has said it is focusing heavily on multilingual analytic tools and recently included 20

analytics service providers to its Marketing Cloud platform which will offer native language

analytic tools.


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Networking / Communications

Role with responsibility for Network / communications

Senior IT people own the network

Senior IT Management are responsible for networking and communications in 46percent of organizations surveyed, followed by IT infrastructure (31%) and, senior

management (7%).

.


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Network / communications budgets 2013 v. 2012

Networking/communications budgets up by one-fifth

Overall, respondents say Networking/Communications budgets will increase by 21% this yearcompared to 2012.

Midsized organizations, (100 to 499 staff) say their networking/communications budgets willrise by 22% in 2013. Smaller companies (less than 100 employees) expect their budgets to

rise by 21%.

Budgets at organizations with more than 500 employees will rise by 20%.


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Most important Network / communications project in 2013

Network management projects key in 2013

Over one-quarter of businesses (26%) say network management is their mostimportant networking initiative this year. This is twice the number of the second

most common priority collaboration tools (12%).

WAN optimization, network virtualization and load balancing are each priorityprojects for 10% of businesses.

The low priority put on Telepresence supports recent market analysis. According toIDC's latest research on video conferencing equipment revenue, immersive

telepresence systems revenue fell 32.8 percent. Simple collaborative tools such as

Web meetings and screen sharing seem to be enough to satisfy office workers.


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Network management remains a big focus

The most widely deployed technology is network management. 46% have alreadyimplemented it and 37% say it is partly implemented.

Load balancing and collaboration tools are already widely deployed or partly deployed, and amajority of businesses have deployed or partly deployed VOIP (62%) and WAN optimization

(55%).

One-quarter have implemented are in the process of implementing Ethernet fabric andnetwork virtualization.

Less than one-quarter of organizations have already implemented TelePresence, networkvirtualization and software defined networking (SDN), but around the same proportions have

an implementation underway.


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Network management, collaboration tools, load balancing are the 2013 priorities

In 2013, Network management projects are most prevalent (40% are doing a project),followed by collaboration tools (32%) and load balancing (29%).

As these are currently the most widely deployed networking technologies, its clear thatimplementations are never one-offs. Like many technologies, its often necessary to

upgrade or extend the capabilities of deployed capabilities.

VOIP is also on the menu for 2013, with 28% of organizations doing an implementation orupgrade.

Software defined networking (SDN) and VoWLAN projects are the least common, with 18% oforganizations each planning to implement or upgrade the technologies. Only 21% and 20% of

organizations plan to implement SDN and VoWLAN respectively.

SDN is one of two technologies, together with VoWLAN, that have lowest project activity thisyear. According to Accenture's Technology Vision 2013 report, SDN requires tools and

frameworks that are still developing. Implementation is also time consuming and expensive.

This could be deterring companies from deploying it.


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End User Computing

Role with responsibility for end user computing

48% of organizations state senior IT Management are responsible for end user computing,while IT infrastructure staff do so in 13% of businesses, and IT service in 11%.


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End user computing External ICT spending 2013 v. 2012

End user computing budgets going up by 21%

Overall, respondents say their external spending on end user computing will increaseby 21% in 2013 compared to 2012. Small and medium businesses will increase by 21%, while larger businesses will

increase budgets on end user computing by 19%.


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Primary desktop/laptop operating system

Business computing continues to rely on Microsofts operating systems for the desktop/laptop.

95% of businesses say their primary operating systems is from Microsoft, with 61% usingWindows 7.

Windows XP is still the main operating system in 27% of businesses, while Windows 8 hasmade limited headway since its launch in late 2012.

It is not surprising that only 5 percent of organizations are using Microsoft Windows 8,which was only launched in the latter half of 2012. Windows 8 has not been well received

either by consumers or enterprises. Its touch version is more popular among users

compared to its desktop version. Even when touch versions are used in organizations, it is

generally in roles such as sales, which are not desk bound.

Linux (3%) and Apple (2%) predominate in very few organizations. The popularity of Linux over Windows Vista and Apple OS X could also be due to its

operating systems being used in Nexus 7, which has been adopted by some businesses.


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Desktop PCs and traditional laptops remain the dominant end-user computing tool.

Desktops and traditional laptops are deployed in more than 70% of businesses. Tablets (deployed in 28% of businesses) outnumber ultrabooks (23%), and that will continue

to be so after completion of deployments in progress.

Laser printers are deployed in more organizations than inkjets. Smartphone and tablet deployments are the two most common current implementations.

This reflects the increased utilisation of Bring Your Own Device (BYOD) policy within

organizations, which look for productivity and efficiency gains among employees.

Tablets and smartphones both outnumber Ultrabooks. While many businesses perceiveUltrabook performance to be good the trade-off in battery life can be a turn-off for someorganizations.

Laser printers are being implemented more than Inkjet printers within organizations due toefficiency and quality. This is consistent with recent IDC report showing laser printer growth

of 0.8 percent in the second quarter of 2012 while inkjet printer shipments fell 12.7 percent,

the largest drop since Q3 2009. Indeed Lexmark is terminating the manufacturing of Inkjet

printers.


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Businesses arent walking away from Desktop PCs and traditional laptops any time soon

Almost one-half 46% and 45% of organizations are respectively doing implementations orupgrades of desktops and laptops projects this year.

35% of businesses and will do smartphone projects in 2013, and 34% will do tablet projects. 34% will also deploy laser printers The least popular end user computing technologies are inkjet printers and Ultrabooks,

adopted only by 29% and 26% of organizations respectively.

Its possible 2014 will be a tipping point for Ultrabooks deployments in business. 20% haveplans for Ultrabook technology refresh and upgrade in 2014. This exceeds the percentage of

organizations with plans for desktop and traditional PCs/notebook projects.


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Methodology and Respondents

Introduction

In February 2013, ZDNet Asia launched the IT Priorities survey to our registered members via

eDM and on-site promotional tactics. Fieldwork continued until the end of the month. The

respondents are IT leaders and IT professionals who regularly visit theZDNet Asia and Tech

Republic websites.

Respondent Demographics

Respondent Location


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Respondent Organization Size

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ZDNet ITPriorities2013 Asia FinalReport

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