A Holistic Approach to Transformation: Accelerating Customer Outcomes
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An IDC InfoBrief, sponsored by Red Hat and Intel
A Holistic Approach to Transformation:
Accelerating Customer Outcomes
RESEARCH BY:
Al Gillen Jim Mercer Shawn Fitzgerald
Group Vice President, Software Research Director, Research Director, World Wide Digital
Development and Open Source, IDC DevOps, IDC Transformation Strategies, IDC
July 2020 | IDC Doc. #US48036321
A Holistic Approach to Transformation: Accelerating Customer Outcomes
Navigating this InfoBrief
Click on titles or page numbers to navigate to each section.
Digital Transformation and Innovation Open Architecture Requires Open Processes. . . . . . . . . . . 10
Top Priority . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
DevOps is Mainstream but Must Scale . . . . . . . . . . . . . . . . . . . 11
The World is at a Digital Tipping Point . . . . . . . . . . . . . . . . . . . . 4
Accelerate Transformation by Bringing
Profiles in Transformation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 People, Process, and Technology Together. . . . . . . . . . . . . 12
Effective Transformation Requires Open Processes Require Open Culture. . . . . . . . . . . . . . . . . . 13
an Open Architecture . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
How to Create an Open Enterprise Culture . . . . . . . . . . . . . 14
The Power of Open Source is Clearly
Unleashing Innovation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Focus on Customer Value and Engagement . . . . . . . . . . . 15
Organizations Must Accelerate Readiness About the Analysts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
for Modern App Delivery. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Message from the Sponsor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
Continuous Delivery Excellence is the Goal. . . . . . . . . . . . . . 9
IDC InfoBrief, sponsored by Red Hat and Intel
July 2021 | IDC Doc. #US48036321
2
A Holistic Approach to Transformation: Accelerating Customer Outcomes
Digital Transformation and Innovation
Top Priority
Anticipated impact: Anticipated benefits:
Starts with accelerated development of Will stem from digitally enhanced offerings,
innovative solutions and better customer operations, and relationships
experience
This changes the game. To stay competitive,
By 2022… organizations must holistically embrace:
up to a quarter of Fortune 500
companies will become software Open culture to foster
producers to digitally transform and maintain
their F-500 status.
collaboration
Open processes to ensure
By 2025…
integration
40% of the Fortune 500 will
reengineer culture and collaborative
practices — shifting from authorized to Open architecture to enable
empowered teams, which are then measured
by metrics aligned to team success.
innovation
IDC InfoBrief, sponsored by Red Hat and Intel
July 2021 | IDC Doc. #US48036321
Table of Contents 3
A Holistic Approach to Transformation: Accelerating Customer Outcomes
The World is at a Digital Tipping Point
By 2023…
90% of new apps will be built/released on demand using policy-driven security
47%
and compliance assessments in the delivery pipeline, as automation accelerates development,
DevOps, and DevSecOps.
By 2024…
Net-new production-grade cloud-native apps will increase to from 70%
10% of all apps in 2020, due to adoption of technologies such as microservices, containers, of North American companies
dynamic orchestration, and DevOps. will see their president, CEO,
owner, chairman, GM, or managing
director drive DX strategy and
implementation in their companies.
By 2023, Of the remainder, 40% are driven
91% 50% by CIO, CTO, or head of
technology/transformation.
of organizations developing their of organizations will neglect investing in
own applications deploy them to market-driven operations and will lose market
more than one cloud. share to existing competitors that made the
investments, as well as to new digital market entries.
IDC InfoBrief, sponsored by Red Hat and Intel
July 2021 | IDC Doc. #US48036321
Table of Contents 4
A Holistic Approach to Transformation: Accelerating Customer Outcomes
Profiles in Transformation
In the current era of digitally driven change, most organizations will need to reorient
how they work and the technology they use.
53%
47%
n = 809 of 1,526
Worldwide n = 717 of 1,526
Digitally Determined Digitally Distraught
DX is either integrated vs. DX is ad hoc and
across the enterprise short term with
or is the strategy. silos of innovation.
46% 54%
n = 244 of 531
North America n = 287 of 531
IDC InfoBrief, sponsored by Red Hat and Intel
July 2021 | IDC Doc. #US48036321
Table of Contents 5
A Holistic Approach to Transformation: Accelerating Customer Outcomes
Effective Transformation Requires
an Open Architecture
By 2022… By 2023… By 2024…
40% of the 500 million new logical From 40% in 2020
Fortune 500 applications will be created.
This is a new paradigm in app development
to 80% in 2024
will reengineer culture and reuse of third-party code in new
collaborative practices — shifting and delivery, requiring a change in what apps and digital solutions will
apps are and how they are built, deployed,
from authorized to empowered teams, increase, leading to a corresponding
which are then measured by metrics and updated.
increase in the number of apps produced
aligned to team success. each year by 1.5x.
IDC InfoBrief, sponsored by Red Hat and Intel
July 2021 | IDC Doc. #US48036321
Table of Contents 6
A Holistic Approach to Transformation: Accelerating Customer Outcomes
The Power of Open Source is Clearly
Unleashing Innovation
We are now in the era of multiplied innovation, where organizations are moving
beyond incremental transformation to a more wide-scale transformation.
This requires them to leverage an ecosystem of talent, technology and processes,
making open technologies a natural choice.
59% 30%
of organizations look to take
1 in 4 organizations of code for all customer applications
prefer to use community
full advantage of open source is built using open source
(self-supported) open source software
innovation and community support repositories/libraries.
for net new IT management and
when investing in automation
automation solutions.
solutions for app dev and deployment.
IDC InfoBrief, sponsored by Red Hat and Intel
July 2021 | IDC Doc. #US48036321
Table of Contents 7
A Holistic Approach to Transformation: Accelerating Customer Outcomes
Organizations Must Accelerate Readiness
for Modern App Delivery
Optimization Agility
35% 25%
or more U.S. organizations are using DevOps practices such of U.S. organizations are seeking standardization of
as automated testing, automated code quality, continuous container orchestration, automated infrastructure
integration and continuous delivery. (10% increase since 2020) provisioning, and developer self-service.
38%
of U.S. developers are using containers regularly.
Cloud native
36%
of U.S. developers are piloting the use of containers. 68%
68%
(10% change from last year) of U.S. organizations are prioritizing application
containerization to accelerate application delivery.
47%
of U.S. developers want to spend more time coding. 34%
36% of U.S. organizations expect cloud native to be an
integrated part of their organizational strategy by 2021.
of U.S. developers want to spend less time on debugging.
IDC InfoBrief, sponsored by Red Hat and Intel
July 2021 | IDC Doc. #US48036321
Table of Contents 8A Holistic Approach to Transformation: Accelerating Customer Outcomes
Continuous Delivery Excellence is the Goal
Continuous
integration with
76% automated build 24%
DevOps Protagonist and release DevOps Emergent
management
Enterprises that have fully shifted to these new automated
approaches dramatically accelerate their ability to push
out digital innovation.
These organizations see code deployments at twice the daily and weekly rates compared to
organizations not using DevOps practices.
The ability to accelerate digital innovation volume and pace will be the most critical new benchmark
for organizations competing in the digital economy.
IDC InfoBrief, sponsored by Red Hat and Intel
July 2021 | IDC Doc. #US48036321
Table of Contents 9A Holistic Approach to Transformation: Accelerating Customer Outcomes
Open Architecture Requires Open Processes
Knock down the silos. Enterprises thrive with a DevOps culture enabling
business innovation and facilitating open source innovation.
54% 64% 90%
of U.S. organizations use open of U.S. organizations expect open of enterprises state
source software as the basis for source software to give them access that DevOps teams
their DevOps practices. to technology that provides better drive business value.
and faster innovation.
IDC InfoBrief, sponsored by Red Hat and Intel
July 2021 | IDC Doc. #US48036321
Table of Contents 10A Holistic Approach to Transformation: Accelerating Customer Outcomes
DevOps is Mainstream but Must Scale
Organizations must start to think business-centric collaboration; it is all about enabling
DevOps-led business transformation.
At U.S. enterprises, the
top two challenges impeding
Adoption Coverage Pervasive DevOps adoption are:
86% 40% 72% 44% IT operations expertise and skill sets
of U.S. enterprises of app workloads of U.S. enterprises
use DevOps will be developed using spend at least half of their technical integration across
30% development and operations processes
practices today DevOps by 2021 time working on projects
that use DevOps practices
DevOps is the intersection of people, process, and technology that aligns with business leadership, culture, and strategy.
Take the learnings from a more collaborative style of working and push this through into the wider organization.
IDC InfoBrief, sponsored by Red Hat and Intel
July 2021 | IDC Doc. #US48036321
Table of Contents 11A Holistic Approach to Transformation: Accelerating Customer Outcomes
Best Practices for Driving Transformation
Merging Dev and Ops into one
organization 28%
Identify, agree, and document
new measurable KPIs 25%
Work more closely with the
business 35%
Drive collaboration between
security and DevOps teams 46%
DevOps teams are using
DevSecOps to ensure security 89%
and compliance
Source: IDC DevOps Survey, 2019
IDC InfoBrief, sponsored by Red Hat and Intel
July 2021 | IDC Doc. #US48036321
Table of Contents 12A Holistic Approach to Transformation: Accelerating Customer Outcomes
Open Processes Require Open Culture
Enterprises must reorient towards open cultures, where every employee is both a techie
and focused on business value. It is always a work in progress.
Cultivating collaboration, an innovation mindset,
and professional adaptability is now crucial for
of U.S. organizations tap open source code
remaining competitive and requires: 44% today when creating new applications
Shared Transparency, By 2023…
accountability collaboration
of the G2000 enterprises will have created their
60%
own software ecosystem.
will use publicly accessible community repositories
End-to-end team Accountability, 90%
to access reusable code components.
ownership with experimentation,
business stakeholder and fast failing
IDC InfoBrief, sponsored by Red Hat and Intel
July 2021 | IDC Doc. #US48036321
Table of Contents 13A Holistic Approach to Transformation: Accelerating Customer Outcomes
How to Create an Open Enterprise Culture
Facilitate learning and risk taking – essential elements for innovation and keeping
hard-to-find talent (as money is no longer enough)
Organizations must:
Take down hierarchies and champion cross-functional
collaboration. of enterprises cite digital
49% skill development as a
Focus on sharing rather than owning, encouraging primary challenge.
fast failures, and being comfortable with an approach
using minimum viable products.
of enterprises cite
Only of enterprises currently 31% reskilling and/or employee
24% embrace these approaches. training as a priority.
IDC InfoBrief, sponsored by Red Hat and Intel
July 2021 | IDC Doc. #US48036321
Table of Contents 14A Holistic Approach to Transformation: Accelerating Customer Outcomes
Focus on Customer Value and Engagement
An open enterprise culture is important for improving long-term customer satisfaction, as
it centers activity on customer value.
#1 Attracting and retaining
customers is the business
priority—now more than
ever.
53% Forward-looking companies will
have an advantage as just 36%
of enterprises say
customer experience currently use customer experiences/
is a top priority in the satisfaction to measure team
#2 Customer advocacy is
the second most important
IT department.
performance.
digital success metric
among enterprises.
IDC InfoBrief, sponsored by Red Hat and Intel
July 2021 | IDC Doc. #US48036321
Table of Contents 15A Holistic Approach to Transformation: Accelerating Customer Outcomes
About the Analysts
Al Gillen Jim Mercer Shawn Fitzgerald
Group Vice President, Software Research Director, Research Director, Digital
Development and Open Source, IDC DevOps, IDC Transformation Strategies, IDC
Al Gillen oversees IDC’s software development In this role, Jim is responsible for researching, Shawn Fitzgerald is Research Director for
research portfolio. Research disciplines in this writing, and advising clients on the fast-evolving IDC’s Worldwide Digital Transformation Strategies
group include developer research covering census, DevOps market. Jim’s core research includes practice and responsible for IDC’s Small and
demographics, and developer activities; platform topics such as rapid enterprise application Medium Research Practice. Mr. Fitzgerald has
as a service and cloud application services for development, modern microservice-based been quoted in numerous articles and reports,
developers; and developer life cycle and quality packaging and automated deployment, and life including both The Economist and Forbes.
assurance products. In addition, Al jointly oversees cycle/management strategies as applied to a He is a business practitioner, digital transformation
IDC’s DevOps research program, and runs a DevOps practice. In addition, he examines how the (DX) thought leader, researcher, and public speaker
program focused on the ecosystem of open source move to DevOps methodologies impacts enterprise with extensive global business and technology
software pan-industry. use of open source and preferences for using experiences. As a Lean Sigma certified Black
on-premises computing and development Belt practitioner, he’s led enterprise change
More about Al Gillen platforms versus public cloud services. Jim advises management initiatives at Dow 30 and Fortune
Senior IT, business, and investment executives 1000 companies across industry verticals
globally in the creation of strategy and operational including clinical research, life sciences, medical
tactics that drive the execution of digital device, manufacturing, and multi-modal
transformation and business optimization. transportation sectors.
More about Jim Mercer More about Shawn Fitzgerald
IDC InfoBrief, sponsored by Red Hat and Intel
July 2021 | IDC Doc. #US48036321
Table of Contents 16A Holistic Approach to Transformation: Accelerating Customer Outcomes
Message from the Sponsor
Digital Success Requires Holistic Transformation.
COLLABORATE INTEGRATE INNOVATE
Op
• Make required • Enable DevOps-led • Shift to modern application
organizational & business transformation architectures supported by
e e
cultural changes
• Integrate new agile and open infrastructure
r
n
• Transition to • Standardize, modernize,
ltu
pro
technologies with existing
Open Cu
risk-taking culture solutions and automate technology
cess
Open
transformation • Empower employees • Simplify the connection of architectures
to be customer-centric apps, services, APIs, data, • Advance continuous delivery
or connected assets as a working paradigm
e
ct
ur
Ope e For more information:
n a r c h it
redhat.com/digitaltransformation
IDC InfoBrief, sponsored by Red Hat and Intel
July 2021 | IDC Doc. #US48036321
Table of Contents 17This publication was produced by IDC Custom Solutions. As a premier global provider of market
intelligence, advisory services, and events for the information technology, telecommunications,
and consumer technology markets, IDC’s Custom Solutions group helps clients plan, market, sell
and succeed in the global marketplace. We create actionable market intelligence and influential
content marketing programs that yield measurable results.
@idc @idc idc.com
© 2021 IDC Research, Inc. IDC materials are licensed for external use, and in no way does the use or publication
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