© 2015 BROCADE COMMUNICATIONS SYSTEMS, INC. Taking up the Task of Business Transformation Global CIO Study 2015

Why Business Transformation? Agility Equals Survival in the Digital Era By 2018 one third of leaders in every industry will be disrupted by competitors that leverage the 3rd platform to innovate and disrupt cost and profit models. IDC PREDICTIONS 2015

CIO at the Centre of a Changing Business Landscape… The next generation of business Facebook, Twitter, Employees, Customers, Commerce Big Data, Customer Insight, IT/OT Convergence BYOD, M2M Communications, mCommerce SaaS, PaaS, BPaaS, IaaS… Security, Regulation, Compliance CIO

IT problems prohibit proactivity: Over half of CIOs lose around 1000 working hours a year reacting to unexpected problems and issues – application access, data loss and network downtime. Growing IT Relevancy Gap: 83% believe adoption of cloud without IT involvement will continue to increase. Over half fear losing the ability to control/mitigate the actions of the business unit leaders when it comes to IT investments/deployments Stressed about job security: 82% admit to fearing for their job security, with 20% stating that unsanctioned cloud causes ‘extreme stress’. The CIO 2015

The Business of Transformation Top CIO concerns It’s all about enabling insight & services; 79% worry about supporting the delivery of new services to support business growth 77% are concerned about enabling analytics and data mining 68% say improving delivery of services overall is a major concern Less than two thirds are concerned about reducing operational expense

Technology for Transformation Top CIO concerns Applications, operations & collaboration: 68% cite ‘fast deployment of new applications’ as an ‘extreme’ or ‘significant’ concern 65% say the same with regard to ‘fast access to applications from multiple devices’ 23% are ‘extremely’ concerned about deploying operational platforms [e.g. SAP, Oracle] Almost two thirds see communication & collaboration as an area of significant or extreme concern

Enabling Transformation Top CIO concerns Who & how bigger concerns than cost: 40% of CIOs are worried about choosing the right vendors to support the business strategy Lack of skilled resource and lack of ingenuity are the biggest non- technical issues CIOs face Lack of budget is an issue, but mostly for Chinese and Russian CIOs Poor organizational discipline is a bigger concern for European & American CIOs

Cloud & Transformation Still not a total solution Cloud still relies on connectivity via corporate networks… 90% of organizations surveyed have some form of cloud deployed Over a third of CIOs state that cloud adoption without IT involvement is not allowed but ‘does’ or ‘may’ still happen Top concerns related to non authorised cloud are: the impact unexpected demand has on the owned infrastructure, inability to manage the network, IT distracted by disputes with cloud providers

The CIO Challenge Unwieldy & Slow, Reactive Market dinosaur Static, office bound Data-deluge Slow deployment of new services, applications IT is an issue Business as Usual Agile & Fast, Proactive Market agitator Mobile Immediate insight & intelligence Fast adoption of innovation IT-as-a-service Digital Business So; how to transform?

It’s Time to talk about the Network 75 % of CIOs stated that the network is an issue that impacts their organizations ability to achieve its business goals. For almost a quarter, it is a ‘significant’ issue.

New Business Models Need a New IP Network transformation to Enable Business Transformation

The CIO Choice Proprietary Hardware centric Manual Silo’d Ops High Cost Slow Innovation Status Quo Open Software-enabled Automated True Democracy Optimized Costs Fast Innovation New IP

Research Summary 200 CIO’s surveyed UK (25), France (25), Germany (25), Russia (25), China (50), and USA (50) In-depth telephone interviews, combination of quantitative and qualitative responses Independently conducted by Vanson Bourne on behalf of Brocade Notes: All CIOs work for organizations with more than 250 employees. 81 percent of respondents work for organizations that have between 500 and 5000 employees. A broad range of vertical sectors are represented.

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