UK top IT Priorities.

The latest quarterly survey of the UK's top IT Priorities can be summarised in the twin themes of productivity and efficiency. Overall, 47% of projects were motivated by the need either to increase user productivity or to improve the competitiveness of the organisation, and this emphasis on IT as a contributor of value, rather than purely as a cost-saver is borne out by the high ratings given in areas such as the development of Web applications, workforce mobility, business intelligence, and office productivity tools. For the IT professional, there is also an acute awareness that the majority of the IT budget is still spent on operations and the maintenance of existing systems. Therefore improving efficiency in these areas, and reducing the cost of IT service delivery, can free up additional funding for new business initiatives. This was supported by an emphasis on projects such as server consolidation, business continuity, and software asset management, and by strong scores for IT governance and IT process improvement.

The Survey

ZDNet UK launched the IT Priorities programme 2003 to help put strategy back into technology purchasing. Every quarter, the results of an in-depth survey of a cross-section of IT professionals are used to create a reference "port with exclusive information on the the technologies that UK companies see as vital now and over the next 12 months. IT Priorities as valuable because senior IT Professionals increasingly need:

* Justification of their own IT spending priorities and peer-based knowledge of other priorities outside their organisation.

* Technology becoming more and more commoditised and homogeneous.

* Information on real-life implementations, not just theory.

* The impact of new technology on the company's bottom line.

Survey Findings

Security continues to loom large in the survey, with anti-virus, anti-spyware, and network security all featuring in the top 5 detailed responses. The worrying picture here, we believe, is a lack of clear progress in security counter-measures across the industry: for some time there have been claims that the war is being won, and yet there is no reduction in the time and resource that IT professionals must devote to the campaign. There are also few signs of any abatement in the level of threats, and those seeking to exploit them, or in the incidence of security failures: whatever technical advances are made, these are the only measures that matter to IT users. There is also a risk that other areas of security, such as identity and access management, get overlooked, which is particularly dangerous given the increased exposure of IT systems to external access.

Businesses are seeking to make more efficient use of computing resources to reduce costs, increase utilisation rates, and improve flexibility, and the survey showed a high level of interest in techniques such as server consolidation, visualisation, and the deployment of blade servers. However, we believe it is important that this process is undertaken in a well-planned manner, preferably driven by an Enterprise Architecture blueprint. In many cases, companies are taking a one dimensional view of these methods, targeting them at specific projects, business initiatives, or departments. This rather misses the point (and the opportunity) of consolidation, because the important aim is to abstract the relationship between hardware and underlying applications. Further work is needed here to increase the progress towards a utility model of computing. The recent spat between Blackberry-producer RIM and its patent nemesis NTP, has highlighted the degree to which organisations must support not simply the traditional mobile workforce, but the increasing mobility that is demanded by executives and information workers in all industries.

Remote access technologies, wireless networks, mobile devices, and roaming all scored highly as priority areas in the survey, with the major motivator being to increase user productivity. We believe the emphasis in this area should be on the flexibility and mobility of information, and access to applications, rather than on mobility for its own sake. Although the support infrastructure must clearly be in place, the business case should be driven by providing seamless access to information systems irrespective of device, location, or network.

Responses also highlighted the increasing importance of the Web, not solely as a communication medium, but as an application delivery channel. 22% of respondents in the application development section of the survey indicated that they were working on Rich Internet Applications (RIAs) or other Web-based initiatives, and the rapid emergence of the dramatically reduced the usability gap between Web-based and traditional fat-client applications. However, implementing a security strategy is about more than just putting in an anti-virus and anti-spyware solution, it also embraces other technologies such as Intrusion Detection, Authentication, and Identity Management. Two of the most interesting areas of the security section. Make no mistake, this has been a highly disruptive technology, perhaps most remarkably in its relative simplicity, and predictably the application development tool vendors are jostling for advantage. Our belief is that the open source immunity will lead the way on this occasion, and this is very much to be welcomed.

Desktop software is another area that was highlighted in the survey, particularly in respect of office productivity tools, which 20% of respondents to this section indicated as a priority. With the arrival of Microsoft Office 2007 later this year (provided Microsoft meets its target schedule), users will again be faced with difficult decisions on the timing of upgrades. One can hardly miss Microsoft's current dinosaur-led advertising campaign, exhorting users to upgrade to the latest versions, but interest in less costly tools, and issues over the openness of document formats, indicate that users are not prepared to slavishly follow the upgrade path. In terms of collaboration, the Microsoft vision is only now starting to see maturity, and Office 2007 will be an important element of this, for those wanting something more than a straightforward word processor, e-mail client, or spreadsheet. Our advice here is to assess business needs carefully, and only then evaluate which tools will best meet these requirements.

Security

As expected, anti-virus and anti-spyware as two of the highest priority areas for IT organisations, with only network security receiving a higher rating. This reflects the fact that companies still see these two areas as being key components of a security solution. Within all of the technology areas cited in the survey, risk management is the predominent motivator for implementing any security technology, with 67.9% of anti-spyware respondents selecting this option.

However, implementing a security strategy is about more than just putting in in an anti-virus and anti-spyware solution, it also embraces other technologies such as Intrusion Detection, Authentication and Identity Management. Two of the most interesting of the security section of the survey are Authentication and Identity Management. Whilst not yet as important to organisations as anti-virus, anti-spyware and network security, it is gaining prominence as a security issue, which we expect to grow.

Within both Identity Management and Authentication, 50% of respondents felt that managing risk was the most important motivator. This is currently a huge driver for Identity Management as organisations have to manage increasing numbers of user identities, particularly if they have customers accessing their systems via the Web. Many Identity Management implementations are deployed in a phased approach with one feature implemented at a time, starting with one of the biggest pain points for an organisation, and the one that can provide a quick win, which is often either password management or Single Sign-On (SSO). Many users now need to access several applications during the course of a typical day.

This often requires a separate login routine for each application, forcing employees to remember several passwords. This results in passwords being written down with the risk that unauthorised users will gain access to applications.

SSO reduces the risk of password theft by enabling users to access multiple applications by authenticating themselves once, eliminating the need to remember multiple passwords, reducing the risk that the password will be written down. Although many organisations aspire to implement SSO, it is often not easy to achieve and many have to settle for reduced sign-on. Although users may not need to write down passwords to remember them using SSO, the potential threat if a password is discovered is much greater, as once authenticated an intruder could have access to multiple applications. In order to reduce the risk, organisations should implement two or three factor authentication. Another problem experienced by organisations where users have multiple accounts, is that help desks become clogged up by password reset requests from users who forget their passwords. Password management provides the ability to automate the process of password reset, and in many cases integrates with help desk solutions allowing every password request to be automatically logged with the help desk and closed once the process has been completed. This provides a log of every password reset request, which can be reported alongside other help desk issues.

It is interesting to note that compliance played a much smaller role as a driver for Authentication and Identity Management with 9.3% of respondents stating that it was the prime motivator for Authentication and 10.8% for Identity Management. At present, compliance is a much higher priority for organisations that have a presence in the US, or work with US companies. A comment from one of the respondents of the survey summed this up.

"Since I am supporting a US government agency, information security is a major concern. There is much information that has controlled access, for reasons of protecting government data, and sometimes to protect data about individual persons or businesses. The agency is involved in and committed to e-Government (people doing business with the government on-line), so many of the above technologies are very important--especially identity management, authentication, and network security". Within the other motivators for Authentication and Identity Management only 6.5% of respondents for Authentication and 5.9% for Identity Management saw an increase in the productivity of users as the major motivator and a similar percentage cited saving money as the key motivator. Increasing competitiveness was felt to be slightly more important as was easing the management of the technology department. However, none of these came close to risk management as a driver.

To implement a total security solution, products torn more than one technology area are required. At the very minimum organisations just implement anti-virus software and possibly anti-spyware. Authentication and Identity management are two other areas that should be included as part of a security strategy, as these pose some of the greatest risks from unauthorised access to company systems if they are not managed effectively.

Application Development

Software application development is always in a state of change with new technologies and hardware spurring software innovation and software construction paradigms undergoing evolution. This is the case with Rich Internet Applications (RIA) where a well-stablished mode of architecture, the additional client-server design, is being superseded by applications delivered via e Web. Once developers are offered the opportunity to create desktop-like, user experiences for fully Web-enabled applications, and with equal ease, there little reason why they should opt for client-server over RIA when developing general purpose applications.

In Butler Group's opinion this scenario is not that far off into the future. The developer community now fully aware about RIA thanks to the Asychronous JavaScript and XML (AJAX) bandwagon. The next bridge to cross is for RIA to be understood within the user community, but most likely in a different language than that used by developers, The primary advantages of RIA are firstly that the application offers an improved user experience, coming the delays associated with basic HTML-driven applications; secondly that a single instaillation on a server can service multiple clients connecting via the Internet, and thirdly the updating of the application is easily performed by making changes only to the server installation. In addition, corporate security is improved as there is greater control over the server environment than client machines, and therefore less opportunity for users to introduce viruses, and it makes it simpler to comply with lockdown policies, and to use in remote locations where IT support is limited. From a user perspective, it loosens the ties to a desk or corporate LAN, since a mobile user simply needs a browser and Internet connection to run applications. With commercial transactions increasingly conducted via the Internet, the demand for RIA will also grow by the users expecting Web experiences to be at least as seamless as the desktop experience. For example, the loss to business of badly designed Web form filling is well attested, where screen refreshes can be too frequent and slow, and every Web page that needs filling loses a percentage of customers abandoning the process. With large volumes of business transferring to the Web, companies will no longer put up with inferior Web designs that hurt the balance sheets. So there are multiple imperatives driving RIA: application developer interest, enterprise IT considerations, and the need for improved Web quality as the volume of commercial transactions increase. The survey results indicate that two thirds of developers believe RIA to significantly increase productivity of end-users and increase competitive advantage, with each aspect supported by 33% of respondents. This demonstrates that the developer community has grasped the advantages of RIA: productivity is gained through a richer interface that is easier for the user to interact with and competitiveness is increased through a superior experience for the user compared with rivals that use traditional Web technologies. Another new trend in application development is Application Lifecycle Management (ALM)--this addresses areas beyond just development and spans the management of the whole lifecycle, with the emphasis on management. The latest generation of ALM suites provide management with visibility into IT, and crucially aligning IT with business needs. The survey results reflect a view of ALM from a developer viewpoint, with a quarter of responses declaring ALM to be effective for managing risk, as well as saving the business costs (the view of just under 20% of developers), but in aiding compliance and easing the management of a technical department there was little support. Butler Group would expect this view to differ amongst managers.

Networking and Communications

Respondents to the survey have once again marked investment in networking and communications as one of the top five IT priorities, clearly demonstrating their awareness of the importance of maintaining and improving corporate networks. The regular spend on networks and communications is driven largely by two factors. Firstly users demand ever faster, and more flexible access to corporate information, including support for mobile work styles and devices. Then there is the need for IT departments to store and process an increasing volume of corporate information in a way that complies with regulatory and legislative requirements. Where previously four or five servers could cope with a medium sized organisation's data, now twenty or thirty are required with an equal increase in data traffic, leading to the need for more networking capacity and bandwidth.

Fortunately wireless broadband and Internet telephony technologies are coming of age and are helping organisations deliver flexible and rapid connectivity. These technologies allow organisations to converge and streamline networks, and do away with costly physical connections, therefore speeding up return on investment. Respondents to the survey showed a clear understanding of these facts by identifying the main motivators for investment in these technologies to be saving money, increasing user productivity and increasing competitiveness. Overall, the survey results showed that out of the 35% of the respondents who considered investment in networking and communications the top IT priority, 26% planned to spend on Internet telephony Voice over Internet Protocol (VoIP), and internal wireless broadband (WiR, WLAN). Network administration was the third priority with a 12% share. Voice over IP in its early days was hailed as the next major evolution in communications technology, and the signs are that it is living up to that reputation. Its ability to converge networks into one does away with the need to purchase, administer, and maintain separate voice, video, and data networks. This leads to a reduced capital infrastructure spend, and on going cost Wireless internal broadband (WiFi), also referred to as wireless local area network (WLAN) is becoming more pervasive in enterprises. The survey results indicate that the enterprise sector is starting to move beyond the stage where security concerns were a significant impediment to WLAN deployment. This could be due to the availability of both native security solutions and third-party support allaying the fears of enterprise IT decision makers. Another factor that is increasing the acceptance of wireless broadband in the workplace is the availability of wireless enabled laptops/notebook computers, which make WLAN easily accessible and simple use. Cost saving when relocating staff and equipment are also seen as a major driver for implementing WLAN solutions. A number of respondents remarked that WLAN does away with the cost of laying more cables in already overcrowded cable ducts,

Respondents' comments showed that mobile and flexible access to networks is a key driver for investment in networking and communication technologies. VoIP are seen as the enablers of that flexible connectivity, contributing to lower costs, improved productivity and competitiveness. Network administration is viewed as essential for management of risks and optimisation of network usage. Given the powerful drivers behind investment in these technologies, they are likely to remain as top priorities for the foreseeable future.

Server Hardware

The world of server hardware covers a range of different technologies, but the survey responses indicate that the focus of IT professionals in this area is very much on improving productivity and reducing costs. Three categories-realisation, blade servers, and server consolidation accounted for almost 50% of the responses, and all are being used in combination to improve the efficiency and utilisation rates of the IT infrastructure. As one respondent commented: "we undertook server consolidation for 50 depots using blade servers". This quote and the evenness of the responses dearly support the view that customers are considering server consolidation from more than just a single perspective. All three scored highest on saving money, followed by ease of management for the technology department.

This signifies that organisations see opportunities to extract greater value from their investments, while increasing customer service, whether that is derived by reducing the number of support staff, saving on energy bills, reducing maintenance expense, or freeing up data centre floor space. To quote another respondent: "we consolidated servers to increase resilience and to provide a better resource to the users", which sums up the general view of being more customer-centric while reducing cost. Today the name of the game in data centre management is server density. With server proliferation a constant problem, IT departments are always looking for ways to pack more computing power into a smaller space. Blade servers consume far less space and power than conventional rackmounted servers. Therefore, customers are able to increase server density and improve resource utilisation, whilst reducing management overhead.

Many organisations are seeking to make more efficient use of computing resources to reduce costs, increase utilisation rates, and improve flexibility. This process typically evolves through phases of standardisation, consolidation, and modularisation, and one of the key techniques is to overcome the physical constraints of server and storage assets through virtualisation. Whilst this is starting to happen at a granular level, with multiple virtual environments being supported on a single machine, the concept of wide-scale virtualisation across multiple machines has been ilow to gain ground, other than in academic and research environments. This quote from a respondent indicates some of the perceived benefits in virtualisation: "by the use of virtualisation, we save money not just on hardware and software, but on the time taken to switch between environments and the ability to have less qualified staff. In addition it allows us to test and roll back without the expense of backups and rebuilds."

Another technology that is growing in popularity is 64 bit computing, which was flagged as a priority by 15% of respondents to this section, the overwhelming motivator was increased productivity with over 50% of the responses, followed by increased competitiveness with 26%. The rise of 64-bit computing is seen as a solution to the current performance issues many servers suffer today, but the advances in hardware also need the operating systems and application software to take advantage. For over 2 years now, 64-bit processors have been touted as the next big thing that could radically change the business computing landscape: with a theoretic ability to address 18 Terabytes of memory, it opens up new possibilities for loading large databases into memory and by reducing latent of access, could generate faster response times However, memory costs, backup issues, and software support are all factors that have as yet prevented the 64-bit revolution from really flying.

Overall the top motivator for those that saw server hardware as a priority was cost saving (23%), closely followed by increased user productivity (22%), with managing risk (8%) and aiding compliance (7%) as the least-quoted factors. This suggest that IT departments are looking at achieving the twin goals of reducing costs and increasing user satisfaction (through higher productivity), and see maximising the investment in server hardware as a key component in delivering a lower Total Cost of Ownership (TCO) to organisations from their IT infrastructure. This priority was neatly summed up by the respondent who commented: "consolidation and virtualisation are key drivers in managing the cost and efficiency of the data centre.

Desktop Software

The corporate PC, in its many guises, continues to be something of a bug-bear to the IT Manager, as while it undoubtedly provides a platform of unparalleled flexibility, it also serves as a significant drain on scarce IT resources. Every five years or so, Microsoft releases a major new desktop operating system, which then prompts organisations to re-evaluate their desktop software strategies: 2006 is just such a year.

Over a ten-year period, the IT industry has swung from a technology landscape strewn with client-server applications, to one of a wholly different nature--the Web. However, despite the Web-centric world in which we live, organisations continue to invest in the very latest desktop devices, jam-packed with incredible processing capabilities and huge storage facilities. Indeed, over the coming year, those organisations responding to the IT Priorities survey, placed client hardware spend above that of Content Management, People Management, Server OS Upgrades, Integration/Middleware, and Mail and Messaging Management.

Of course, desktop hardware is of use to no one unless it is running the right software, and so it follows that Desktop Software is also one of the top IT priorities, coming above the likes of Enterprise Applications and Systems Management. Respondents to the survey clearly believe that the choice of operating system and desktop productivity applications has a significant bearing on user productivity. Over a quarter of the survey group identified increased end-user productivity as a motivating factor for Operating Systems Migration, closely followed by cost saving and risk mitigation. This would suggest that Microsoft is finally getting the message across, which is to say that Windows XP is a more productive and more secure operating system than Windows 2000 Professional Edition (the precursor to Windows XP). And with Windows 2000 no longer in what Microsoft calls the "Mainstream Support Phase", end-user organisations must weigh-up their desktop OS options carefully.

Unlike previous versions. Windows Vista will be targeted at different user communities, rather than specific computer types, and so Butler Group is advising organisations to evaluate Windows Vista Ultimate, Business, and Enterprise editions. But Microsoft should not expect to have everything its own way when it comes to operating system migrations and upgrades, as there are dear signs that Linux is starting to be considered as an alternative to Windows on the desktop. "We are moving some of our team members to Linux systems, in part because our local partners in North Africa are increasingly preferring an open-source solution." said one of the respondents to the IT Priorities survey--a statement Butler Group is beginning to hear on a more frequent basis. By adopting a combination of Linux, OpenOffice, Web-based applications, and Virtual Machine (VM) technology, some organisations appear to be lessening their reliance on a wall-to-wall Microsoft desktop solution. Back in February, Microsoft took the covers off the next version of its office productivity suite. Known as "Office 12" while under development, the new name for this collection of programs, servers, and services, is the 2007 Microsoft Office system.

RELATED ARTICLE: Convergence Drives Growth In Communication Sales

UK Convergence resellers have outgrown traditional communications resellers by 130% over the past year.

Resellers focussing on convergence and IP telephony grew at 23% last year, more than double the average growth rate of 10.3% achieved by the sector as a whole. In total the top 200 UK Communications Resellers achieved revenues of [pounds sterling]1.36 billion from the sale of Communications services. Those companies focusing on MPLS and Broadband VPN solutions also enjoyed above average growth of 15.6%. These are amongst the findings of, the latest database report from IT Europa. The report, which provides detailed business profiles of each of the top 200 UK resellers of communications and convergence solutions, also reveals that income from new communications services such as broadband and MPLS networks represented 14% and 24% respectively of total revenues and that voice services remained the mainstay earner at 35% (the remainder of communications income came from traditional ISDN and leased line sales). Of the companies who sold telephony systems, 65% of their PBX solution sales over the last year were IP-based and only 24% traditional TDM based. The remaining 11% was derived from new hosted or IP Centrex solutions.

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