IT Operations Management - The 2021 State of How IT Leaders Can Drive Faster Recovery in a Post-Pandemic World - OpsRamp

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IT Operations Management - The 2021 State of How IT Leaders Can Drive Faster Recovery in a Post-Pandemic World - OpsRamp
The 2021 State of
            Market Innovation a
                               s a Proxy for Tool Sprawl
            Over the last decade, there has been an explosion of new categories
            of IT operations management tools. Observability, AIOps, chaos
            engineering, value stream management, and FinOps tools were not
                                                                                              IT Operations
                                                                                              Management
            on the radar of most IT teams five years ago.

            The OpsRamp survey shows that tool proliferation is both a blessing
            and a curse for enterprise IT teams. Half (50%) of survey respondents
            typically use more than five tools in their daily operations while 45%
            work with more than 10 different tools across their entire hybrid
            IT environment. While there is a compelling case for discarding                     How IT Leaders Can Drive Faster
            outdated tools, technology practitioners will keep investing in
            innovative tools that can effectively manage and optimize their                   Recovery in a Post-Pandemic World
            legacy and modern infrastructure.
UK Survey

                                                                                                                              4
            INSIGHT #1: How Artificial Intelligence is Changing IT Operations as We Know It
IT Operations Management - The 2021 State of How IT Leaders Can Drive Faster Recovery in a Post-Pandemic World - OpsRamp
Executive Summary
With frequent lockdowns and strict social distancing            The 2021 State of IT Operations Management survey
norms, enterprises shifted to digital-first, cloud-centric,     looks at the specific factors constraining organisational
and remote work mandates to grow market share,                  innovation and the steps technology leaders are taking
stabilise operations, and increase customer relevance.          to unleash disciplined creativity across their extended
Whilst the pandemic reduced global IT investments by            teams. The study shares how strategies such as tool
3.2% in 2020, worldwide technology spending in 2021 will        modernisation and legacy portfolio rationalisation
increase to $3.92 trillion, according to Gartner, for overall   and technology investments such as AIOps and digital
annual growth of 6.2%.                                          operations management platforms can unlock value and
                                                                drive differentiation in a competitive market.
Which technology investments will gain outsized budgetary
allocations in 2021? IDG’s 2021 State of the CIO survey
finds that IT leaders are prioritising data and business
analytics (39%), security and risk management (37%), and
                                                                                   Methodology
cloud-based enterprise applications (32%) initiatives in
their enterprise. More importantly, 82% of technology            A third party surveyed a total of 102 respondents in
executives believe the pandemic has driven the adoption
                                                                 March 2021. All respondents work at the IT director level
of new technologies, IT strategies, and methodologies.
                                                                 or above, across IT/technology operations teams in the
Whilst the U.K. is expected to return to some semblance
                                                                 United Kingdom. Enterprises surveyed have more than
of normality by this autumn, most countries will probably
complete the vaccination of their citizens by the end of         500 employees and spend at least £3.5 million in annual
2022. Given that global demand will remain muted for the
                                                                 technology budgets.
time being, enterprises will need to accelerate the launch
of digital products and services to serve their customers.

                                                                                                                             2
IT Operations Management - The 2021 State of How IT Leaders Can Drive Faster Recovery in a Post-Pandemic World - OpsRamp
INSIGHT #1

How Artificial Intelligence
is Changing IT Operations as We Know It

                                                          There has been constant innovation in the IT operations

                                                            management market as both incumbents and startups
                                                             have built new solutions for age-old problems and

                                                              modern use cases. Tool rationalisation is top-of-mind

                                                              for IT leaders as enterprises look to get rid of legacy

                                                                toolchains. Artificial intelligence for IT operations

                                                                  (AIOps) platforms have emerged as a critical factor

                                                                in driving consolidated insights across diverse tools.

                                                                                                                        3
                                                                                                                        4
INSIGHT #1: Digital Operations Man-   agement US Survey
IT Operations Management - The 2021 State of How IT Leaders Can Drive Faster Recovery in a Post-Pandemic World - OpsRamp
Number of IT Operations Tools in Use
                                        Market Innovation a
                                                           s a Proxy for Tool Sprawl
                                        Over the last decade, there has been an explosion of new categories
                                        of IT operations management tools. Observability, AIOps, chaos
                                46%
                                        engineering, value stream management, and FinOps tools were not
                                        on the radar of IT teams five years ago.
   6 to 10 tools
                                        Our survey shows that tool proliferation is both a blessing and a
                                        curse for enterprise IT teams. Nearly all survey respondents (95%)
                        38%             typically use more than five tools in their daily operations. Half of
                                        technology leaders work with more than 10 different tools across
   11 to 20 tools                       their entire hybrid IT environment. Whilst there is a compelling
                                        case for weeding out legacy tools, technology practitioners will
                                        keep investing in innovative tools that will deliver capabilities for
                                        effectively managing, harnessing, and optimising their legacy and
               11%                      modern infrastructure.

   More than 20 tools

          5%

   5 or less tools
                                                                                                                         4
                                       INSIGHT #1: How Artificial Intelligence is Changing IT Operations as We Know It
Satisfaction with Current
                                                                                                   Monitoring/Operations Tools
    Modernising Legacy Monitoring Is a Must
    for Operational Agility
    Legacy monitoring approaches have short-circuited IT’s ability to
                                                                                                                                 52%
    ensure resilient and high-performing infrastructure that can keep up
    with the demands of digital transformation. A recent 451 Research                              Moderately satisfied
    report found that only 11% of technology teams are happy with their
    current monitoring solutions and around 44% are looking to actively
    replace their existing tools within a year.
                                                                                                                           27%
    Our survey shows only 27% of respondents are highly satisfied with
    their current monitoring approaches. 52% are moderately satisfied
                                                                                                   Highly satisfied
    while 21% are somewhat dissatisfied or not at all satisfied with
    their IT operations tools. Areas of improvement for existing tools
    include the ability to monitor hybrid, multi-cloud, and cloud native                                         14%
    infrastructure, integrate data and automate incident response for
    efficient and timely operations, and support business goals with
                                                                                                   Somewhat dissatisfied
    accurate and relevant insights.

                                                                                                          7%

                                                                                                   Not at all satisfied
5
                 INSIGHT #1: How Artificial Intelligence is Changing IT Operations as We Know It
Plans for Tools Rationalisation
                                         Optimise Effort and Save Money with Tools
                                         Portfolio Rationalisation

                                  37%    Our survey finds that tool portfolio rationalisation is high on the
                                         agenda of IT decision-makers. 37% of respondents expect to reduce
                                         more than 50% of their existing tools whilst 28% are looking to
Yes, by 50% or more
                                         reduce at least 25% of their IT operations tools portfolio.

                                         IT operators should look at how their business and technological
                            28%          needs are changing, figure out which of their current tools align with
                                         organisational priorities, and then retire or swap out specific tools
                                         that are no longer needed.
Yes, by 25% or less

                      22%

No, stay the same

           13%

No, we’re adding tools                                                                                                    6
                                        INSIGHT #1: How Artificial Intelligence is Changing IT Operations as We Know It
ITOM Tool Investments for 2021

    Delivering Compelling Digital Experiences
    With the Right Tools                                                                                                                     51%
                                                                                                    Hybrid infrastructure monitoring
    Covid-19 has forced enterprises to focus on curating compelling
    digital experiences for their customers, employees, and partners.
    A McKinsey Global survey of business leaders finds Covid-19 has                                                                      48%
    helped organisations accelerate their digital customer offerings
                                                                                                    AIOps
    by an average of seven years.

    In 2021, technology executives have prioritized ITOM tool                                                                            47%
    investments such as hybrid infrastructure monitoring (51%),
                                                                                                    Cloud native observability
    AIOps (48%), and cloud native observability (47%). Digital experience
    monitoring (46%) and Application performance monitoring (46%)
    tools are right behind, given the importance of ensuring solid                                                                     46%
    employee and customer experiences. These tool investments
                                                                                                    Digital experience monitoring
    are critical for monitoring technology services by isolating,
    analysing and fixing performance problems across on-prem and
    cloud infrastructure. Organisations can then deliver optimum                                                                       46%
    digital experiences wherever the infrastructure supporting those
                                                                                                    Application performance monitoring
    experiences resides.

                                                                                                                                       45%
                                                                                                    Network performance monitoring
7
                  INSIGHT #1: How Artificial Intelligence is Changing IT Operations as We Know It
Focus Areas for Tools Consolidation
                                                           AIOps Addresses The Challenges
                                                           of Siloed Operations
                                                    56%
                                                           Siloed tools have historically created problems for hybrid
Network performance monitoring                             infrastructure management as they offer limited context for
                                                           assessing the health and performance of an IT service. AIOps
                                              54%          platforms emerged to help IT teams identify, diagnose, and recover
                                                           from high-severity incidents by combining historical and real-time
Hybrid infrastructure monitoring                           data. AIOps can act as connective tissue for centralised operations
                                                           by delivering proactive insights across different IT monitoring,
                                          48%              service management, and process automation tools.

Artificial intelligence for IT operations (AIOps)          Our survey shows AIOps (48%) is a focus area for tools
                                                           consolidation, though it trails network performance monitoring
                                       47%                 (56%) and hybrid infrastructure monitoring (54%). Whilst AIOps can
                                                           certainly help IT teams make sense of their disparate monitoring
Digital experience monitoring                              tools, consolidating those monitoring tools remains an even higher
                                                           priority. IT teams can use AIOps to create a big data platform that
                                       47%                 can analyse volumes of information across domain-centric tools
                                                           and deliver a single source of truth for immediate action when an
Application performance monitoring                         issue occurs.

                                     45%
Cloud native observability                                                                                                                  8
                                                          INSIGHT #1: How Artificial Intelligence is Changing IT Operations as We Know It
Drive Agility and Innovation
                                                                                                Plans for AIOps Deployment
    with AI/ML-Powered Insights
    Research firm IDC expects that 50% of large enterprises in
    2024 will adopt AIOps for automating and optimising their
    technology operations. Our survey shows 42% of IT decision-                                                                                           55%
    makers have already deployed AIOps in their organisation.
                                                                                      Plan to in 2021
    Meanwhile, 55% plan to roll out AIOps this year whilst only
    3% have no intention of using AIOps in 2021.
                                                                                                                                                    42%
                                                                                      Yes
Business Goals Driving AIOps Implementations
                                                                                                      3%
                                                     68%                              No plans in 2021

   Be responsive to business needs

                                                   66%
                                                                          What factors are driving this uptick in AIOps interest among
   Optimise infrastructure for digital business                           IT operations teams? We find the two leading reasons for
                                                                          AIOps implementations include the ability to drive faster
                                            57%                           response times for business needs (68%) and optimise
                                                                          infrastructure for digital business (66%). Addressing
   Solve critical issues faster                                           problems quickly and cutting costs tied for the third most
                                                                          important reason at 57%.
                                            57%
   Cut cost with automated ops                                                                                                                            9
                                                                  INSIGHT #1: How Artificial Intelligence is Changing IT Operations as We Know It
INSIGHT #2   The Mandate for
             IT Operations Modernisation

             What modern practices, tools, and approaches can IT infrastructure
             leaders use to drive sustainable change in their organisations? Our

             survey throws light on specific roadblocks that are holding back
             innovation across IT teams, how to build specific competencies to
             handle business demands, and why investing in a modern digital
             operations management platform is a transformational initiative.

                                                                                   10
What Stops IT Organisations from Innovating?
IT teams have had to support a massive spurt in digital transformation                     IT executives ranked the pace of business innovation (49%),
initiatives coupled with a steady shift of on-prem workloads to cloud                      legacy toolchains (49%), and the pace of technological
and cloud native architectures. This has created significant challenges                    innovation (45%) as the biggest impediments to agile
for technology leaders who need to support critical business goals                         and effective IT operations. Technology decision-makers
whilst maintaining fiscal and operational discipline.                                      should make it a priority to understand and respond to
                                                                                           changes in the broader business environment, invest in
                                                                                           modern platforms to counteract technical debt, and roll
                                                                                           out bootcamps and certification programs to keep up with
                                                                                           technological change. Where business innovation lags
                49%                        49%
                                                                                           technology innovation, IT leaders can become champions for
                                                              45%                          new technologies that boost process improvement and help
                                                                                           modernise business operations.

                                                                              39%
                                                                                                          37%
                Pace of technological

                                                                                                                                           26%

                                                                              Siloed organisation
                                                           Pace of business

                                                                                                                                         Understaffed
                                                                                                                                         organisation
                                                                                                          Lack of skills
                                            Legacy tools
                innovation

                                                           innovation

                                        Biggest Barriers to Meeting Organisational Goals
11
                                                                                                                           INSIGHT #2: The Mandate for IT Operations Modernisation
Invest in Specific Operational Capabilities
   to Build Organisational Muscle
   In 2021, 55% of IT leaders expect to increase their full-time employee                Here are the four IT operations approaches ranked
   count to handle the demands of cybersecurity, hyperautomation,                        most critical by executives:
   cloud adoption, and remote work. Given the urgency with which
   enterprises have embraced digitization, IT teams need to invest in                    • D
                                                                                            ata/visibility (72%) refers to the need for bringing
   critical capabilities that can help them deliver resilient infrastructure               IT operations data together across domains such as
   services for a wide variety of business needs.                                          application, compute, network, storage, cloud, and on-prem
                                                                                           as well as data formats such as metrics, logs, and traces.

                                                                                         • A
                                                                                            utomation (64%) refers to the use of software tools to
     72%                                                                                   invoke policy-based actions automatically in response to
                                                                                           changing conditions and remediate problems with little or
                        64%
                                                                                           no human intervention.
                                       57%                57%
                                                                    55%                  • C
                                                                                            ollaboration (57%) is about creating a shared ownership
                                                                                           model for different operations staff such as IT operations,
                                                                             44%           security operations, and DevOps.

                                                                                         • P
                                                                                            rocesses (57%) are critical for integrating and streamlining
                                                                                           organisational workflows for operational tasks such
      Data/Visibility

                                        Collaboration

                                                                                           as provisioning, configuring, monitoring, alerting, and
                        Automation

                                                                            Centricity
                                                                                           decommissioning across different business units.
                                                                            Service-
                                                          Process

                                                                    AI/ML

                           Critical IT Operations Capabilities
                                                                                                                                                    12
INSIGHT #2: The Mandate for IT Operations Modernisation
Key Requirements
for a Modern IT Operations Solution
The demands on modern IT operations solutions have never been                        Given the fallout of the SolarWinds sunburst supply chain
higher. Enterprise IT teams need technology platforms that can capture               attack, our survey shows that platform security (61%),
real-time telemetry for a wide variety of infrastructure environments,               which is the ability to withstand sophisticated attacks is
offer the ability to scale as per demand, provide chargeback and                     the most critical attribute of a modern solution. The next
capacity recommendations to optimise infrastructure, and deliver                     two capabilities ranked important by IT decision-makers
algorithmic insights for troubleshooting and repairing IT services.                  include hybrid infrastructure management (53%) for
                                                                                     controlling the chaos of distributed architectures, and SaaS
                 61%                                                                 and multi-tenant architecture (46%) that allow IT to manage
                                                                                     hybrid infrastructure from the cloud, without introducing
                                                                                     additional system overhead.
                                   53%

                                                            46%             45%
                                                                                                 42%
                                  Hybrid infrastructure

                                                                                                                        29%

                                                                         Multi-cloud and
                                  management

                                                                                                                     cause analysis
                                                          architecture

                                                                         cloud native
                                                          multitenant

                                                                         monitoring

                                                                                                                     faster root
                                                          SaaS and

                                                                                                                     AIOps for
                  Security

                                                                                                  Price
13
                               Critical Attributes of a Modern IT Ops Solution
                                                                                                          INSIGHT #2: The Mandate for IT Operations Modernisation
Value of a Digital Operations
                           Management Platform
                                                                The Emergence of Digital Operations
                                                                Management Platforms
                                                                A digital operations management platform brings together
                                                          56%   diverse data sources, optimises organisational processes,
                                                                and uses analytics to drive innovation and agility across the
           Planning to purchase next year
                                                                organisation. Given the volume, velocity, and variety of events
                                                                that enterprises have to deal with, IT teams need to use a digital
                                                                operations management platform that can reduce repetitive
                                                    36%         alerts, identify the proximate cause(s) for an IT outage, and
                                                                ensure outstanding user experiences using AI/ML.
           Maybe but depends on budget
                                                                Technology leaders see huge value in deploying a digital
                                                                operations management platform that offers capabilities
                  8%                                            for hybrid, multi-cloud, and cloud native monitoring, drives
                                                                intelligent incident management and automated remediation,
           No, we already have a unified platform               and integrates with their existing tools in a single place. 56%
                                                                of respondents expect to roll out a digital operations
                                                                management platform this year whilst 36% expressed interest
            0%                                                  in purchasing a modern platform if no budgetary constraints
                                                                were holding them back.
           We don’t see the value of a central platform

                                                                                                                              14
INSIGHT #2: The Mandate for IT Operations Modernisation
Why Invest in a Digital Operations
Management Platform
Whilst technology practitioners have long tried to find a single                                               IT leaders plan to roll out a digital operations
pane of glass (SPOG) for IT operations, they’ve usually ended up                                               management platform for:
with a single glass of pain due to the duct-taped nature of legacy
ITOM suites that tried and failed to deliver a SPOG. Modern digital                                            • Deploying automation and AIOps (42%) so that IT teams
operations management platforms are different as they combine                                                    can use machine learning algorithms and process
data, analytics, and workflows to offer relevant insights into an                                                automation to reliably cut down alert noise, drive faster
organisation’s hybrid IT ecosystem.                                                                              root cause identification, and handle repetitive activities.

                                                                                                               • Centralised visibility (38%) so that operators can get a
    42%                                                                                                          single source of truth about the state of their hybrid IT
                                            38%
                                                                                                                 infrastructure wherever it resides and break down silos
     Deploy automation and AIOps

                                                                     34%                                         between systems.
                                                                                            33%
                                                                                                               • Saving time and money (34%) with data-driven insights in
                                                                                                                 a modern platform so there is no need to switch between
                                                                     Save time and money
                                            Centralised Visibility

                                                                                                                 multiple tools and optimise costs by swapping out legacy
                                                                                           faster resolution     IT management tools.

                                                                                                               • Driving agility and faster resolution (33%) for reducing
                                                                                           Agility and

                                                                                                                 organisational friction and enabling collaboration across
                                                                                                                 siloed infrastructure teams.

                                   Why Implement a Digital Operations
                                                                                                                                                                                15
                                         Management Platform
                                                                                                               INSIGHT #2: The Mandate for IT Operations Modernisation
Conclusion
Here are three key takeaways from the ‘The State of IT Operations Management’ report for technology leaders as they deal
with the profound implications of the next normal that we are entering into:

Digital transformation demands            Tool sprawl and tool rationalisation          Why digital operations
   new tooling                               are two sides of the same coin                management platforms
                                                                                           are a game-changer
The ITOM tools category has seen             Most business executives might
new solutions emerge to address the          frown if they learned about the               92% of IT executives have either
complexities of delivering seamless          actual number of IT operations                decided to invest or would like
digital experiences, managing cloud          tools used at their organisation.             to invest in a digital operations
native infrastructure, ensuring              However, bringing in a new tool               management platform to centralise
infrastructure resilience, and keeping       requires significant efforts in training      insights for hybrid infrastructure,
a tight lid on public cloud expenditure.     and upskilling of team members,               enable rapid restoration of mission-
IT leaders have budgeted money for           tweaking organisational processes, and        critical services, and drive greater
investing in hybrid infrastructure           securing budget commitments. Few              efficiencies by reducing context-
monitoring, AIOps, and cloud                 IT leaders would take on the burden           switching across multiple tools. The
native observability tools to meet           of introducing a new solution unless          remaining 8% believe they already have
the challenges and opportunities             there is a clear payoff for return on         such a platform. Digital operations
unleashed by digital transformation.         investment, freeing up organisational         management platforms deliver unified
                                             resources, and retiring technical debt        visibility, time and cost savings, and
                                             in the form of legacy tools.                  rapid resolution with algorithmic
                                                                                           insights and proactive automation.

                                                                                                                             16
About
            Market Innovation a
                               s a Proxy for Tool Sprawl
                   OpsRamp is a digital operations management software company
            Over the last decade, there has been an explosion of new categories
                  whose SaaS platform is used by enterprise IT teams to monitor and
            of IT operations management tools. Observability, AIOps, chaos
                  manage
            engineering,     their
                          value     cloud
                                stream    and on-premises
                                       management,   and FinOps infrastructure.
                                                                tools were not  Key capabilities
            on the radar of most IT teams five years ago.
                   of the OpsRamp platform include hybrid infrastructure discovery and
                 monitoring,
            The OpsRamp    surveyevent
                                   shows and    incident
                                          that tool         management,
                                                    proliferation              and remediation
                                                                  is both a blessing             and
            and a curse for enterprise IT teams. Half (50%) of survey respondents
                 automation, all of which are powered by artificial intelligence.
            typically use more than five tools in their daily operations while 45%
            work with more than 10 different tools across their entire hybrid
            IT environment. While there is a compelling case for discarding
            outdated tools, technology practitioners will keep investing in
            innovative tools that can effectively manage and optimize their
            legacy and modern infrastructure.
UK Survey

                   To learn more visit OpsRamp.com
                   © 2021 OpsRamp, Inc. All Rights Reserved.                                           4
            INSIGHT #1: How Artificial Intelligence is Changing IT Operations as We Know It
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