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Thursday, June 23, 2016

Digital Transformation: the DevOps Journey to Progress

More organizations across the globe are proactively making the move to embrace Digital Transformation methodologies. Why change now? Technology must be at the heart of every enterprise. It's time to "Go Digital, or Die," according to the latest worldwide market study by the Everest Group.

To become truly digital, enterprises must develop a holistic IT applications and infrastructure strategy, with DevOps as the pivotal enabler. According to Everest Group research conducted during Q1 2016, over three-fourths of enterprises believe in leveraging digital technologies to achieve competitive differentiation.

Digital Enterprise Market Development

"Enterprises that embrace digital adoption are using technology to create new business, not just enable it. For example, enterprises are discovering how IoT and mobility can dramatically improve user experiences, which is unlike the traditional role of technology for driving efficiencies in back-office operations," said Yugal Joshi, practice director at Everest Group.

"Digital enterprises are those that employ emerging technologies throughout the enterprise -- across internal and market-facing operations," continued Joshi. "This requires an integrated applications and operations strategy with DevOps as its pivotal element."

Everest Group also reports that though CIOs are keen to adopt DevOps principles, most organizations struggle with them and require guidance on their journey. But it hasn't always resulted in higher engagement with IT vendors and service providers, as organizations learn how to support this growing demand themselves.

Other key findings from the study include:

  • Enterprises have begun adopting Agile and DevOps principles by themselves. However, they are struggling with scaling up their pilot projects to an enterprise-wide adoption.
  • Many enterprises already have adopted Agile approaches in the application development and testing phases of the lifecycle and are now experimenting with ways to integrate the crucial operations phase to embark on a truly DevOps journey.
  • While in some cases enterprises lack executive leadership commitment to institute cultural change, in other cases, enterprises overemphasize technology without getting the pre-requisite peripherals in place.
  • The Application Services market grew by approximately 5 percent in 2015, higher than the overall IT services industry growth of 3 percent.
  • Demand for consulting services spiked in the last year, driven primarily by enterprise adoption of digital technologies.
  • Anti-incumbency is gaining traction among buyers as they are increasingly seeking newer vendor engagement constructs.
  • The Banking, Financial Services and Insurance (BFSI) segment led overall deal activity with 26 percent share. Healthcare and life sciences enterprises increased their spending proportion to 14 percent share.
  • Digital adoption will continue to witness increased traction, but the bulk of enterprise spending will be on traditional application services that take up the majority of legacy software application portfolios.
  • Application services will begin to take up a slightly larger share of the market as demand for digital technologies and connected systems will necessitate development of ecosystems across multiple channels.