VMWare Survey Shows Misalignment Between IT & Business Priorities

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Malaysia, 29 October 2013 — VMware Inc. (NYSE: VMW), the global leader in virtualization and cloud infrastructure, today announced the results from the annual VMware Cloud Index 2013 which provided interesting insights into the state of the IT landscape in Malaysian enterprises. Although most Malaysian respondents view cloud as a top priority or highly relevant to their organizations for driving business improvements, very few respondents believe their current IT investments are both sufficient and properly aligned with actual business priorities.

The VMware Cloud Index is commissioned by VMware and conducted by Forrester Consulting. It surveyed 2,785 senior IT and business decision-makers in 10 Asia Pacific countries, including Malaysia.

Misalignment between IT and business priorities

This year’s survey revealed that Malaysian respondents are most concerned about the lack of existing IT resources and the lack of current alignment of IT with business priorities. In fact, only 14 percent of Malaysian respondents believe their current IT investments are both sufficient and properly aligned – among the lowest in the region.

On the other hand, 67 percent of Malaysian respondents believe that leveraging cloud and ‘as-a-service’ approaches will help/has helped their organizations become more efficient and operate with leaner IT resources – highest in the region.

“While cloud adoption is increasing in Malaysia, many perceive IT is slow in providing the necessary tools to meet the organization’s business priorities. It is therefore important that we address the needs of organizations to simplify IT,” said Laurence Si, country manager, VMware Malaysia.

“At VMware, our vision is centered on empowering IT to help organizations become more agile, responsive and profitable. By evolving the software-defined data center, and enabling IT to build a radically simpler and more efficient IT infrastructure, businesses have the agility and flexibility to enhance their business growth.”

IT must keep up or ship out

The VMware Cloud Index also revealed that 92 percent of Malaysian respondents consider the need to address rising expectations of customers and improving customer satisfaction to be their top business priority over the next 12 months – tied with improving the quality and capabilities of their products.

In order to achieve this objective, IT as a business enabler needs to be in tune with such demands. And if IT doesn’t improve, the business will seek alternatives. This sentiment is shared by 82 percent of Malaysian respondents who confirm that business units circumvent IT in order to source technology or business applications directly.

“In order to IT to fulfill its potential as a transformational business tool, existing IT infrastructure must be optimized so that services are provisioned efficiently and speedily to meet the demands of businesses,” said Michael Barnes, Vice President & Research Director, Forrester Consulting. “With the rapid economic growth in the region, businesses are realizing the importance of making this change a priority so as to reap the benefits of IT.”

Improving overall IT efficiency and responsiveness is also a top priority within Malaysian organizations, according to the VMware Cloud Index. Among major technology trends that were identified, 67 percent of Malaysian respondents believe a software-defined approach to implementing and managing datacenter resources (servers, storage, networks) will have a significant impact on their organizations during the next 2-3 years.

“It is encouraging that Malaysian respondents recognize that a comprehensive and integrated suite of cloud infrastructure and management software can enable them to deliver IT-as-a-Service, and in the process potentially improve the level of efficiency, agility and control in data center environments,” said Si.

By extending the virtualization principles of abstraction, pooling and automation across all data center resources and services, the software-defined data center architecture can simplify and speed up the provisioning and management of compute, storage and networking resources through policy-driven automation.

“With the VMware vCloud® Suite 5.1, customers can achieve cloud service provider-level economics, agile application provisioning in minutes to respond to ever-changing business demands, and the right availability, security and compliance for each application with policy-based governance,” added Si.

A year after introducing the software-defined data center architecture, VMware’s pioneering IT framework has gained acceptance across global business giants and start-ups alike. In addition, customers that moved to a software-defined data center architecture have experienced greater value than those that did not. In a recent VMware survey, two-thirds of respondents reported being able to generate new revenue for their businesses by expanding their use of virtualization[1]. Of those businesses that were able to take full advantage of a complete software-defined data center architecture, 85 percent were able to generate new revenue as high as 22 percent for their businesses.

About the VMware Cloud Index

The VMware Cloud Index 2013 is an Asia-Pacific-wide study conducted by Forrester Consulting. Now in its 4th annual edition, the 2013 survey surveyed 2,785 senior IT practitioners across the region in 12 countries (Australia, China, Hong Kong, India, Indonesia, Korea, Malaysia, Philippines, Singapore, Taiwan, Thailand, and Vietnam).  The survey was conducted in July 2013.

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[1] VMware Annual Customer Benchmark, based on survey of 1,028 customers, July 2013