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New Survey: Enterprise IT Procurement Patterns Favor Cloud Technologies

We’re back with more survey results! Our la survey of more than 400 IT executives shows that enterprise IT procurement patterns favor cloud technologies, although most execs polled still see themselves as operating “Mode 1” type IT organizations – we’ll get into an explanation of this below. Our Public Cloud Procurement: Packaging, Consumption and Management survey sought to understand the organizational emphasis and strategic focus of modern enterprise IT departments based on the tech services they’re consuming and how much they’re spending.

Gartner refers to Mode 1 organizations as traditional and sequential, emphasizing safety and accuracy and preferring entire solutions over self-service, while Mode 2 organizations are exploratory and nonlinear, emphasize agility and speed, prefer self-service and have a higher tolerance for risk. Going into the survey, we expected most enterprise IT organizations to be bimodal, with their focus split between stability and agility. The results confirmed our expectations – bimodal IT is common for modern IT organizations.

Here are some of our findings:

  • 71% of respondents reported being a Mode 1 IT organizations.
  • 72% of respondents emphasize sequential processes and linear relationships (Mode 1) over short feedback loops and clustered relationships (Mode 2) for IT delivery.
  • 65% said plan-driven / top-down decision making best represented their planning processes – a Mode 1 viewpoint.

However, respondents also showed considerable interest in public cloud technologies and outsourced management for those services:

  • 89% of respondents use AWS, Google Compute Engine or Microsoft Azure.
  • 39% have dedicated up to 25% of total IT spend to public cloud.
  • 43% spend at least half of their cloud service budget on AWS.

Many respondents found the process of buying, consuming and managing public cloud services difficult. A large majority would pay a premium if thatprocess of buying public cloud was easier, and 40% went so far as to say they’d be willing to pay 15% over cost for the benefit of an easier process.

Read the full survey results or download the infographic for a visual representation.

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