1. Five Technology Trends Driving Change in Midmarket IT
Midsize Enterprise Summit Spring 2018
29 April – 01 May 2018 / Orlando, FL
Five Technology Trends Driving Change in Midmarket IT
Mike Cisek
@mrcisek
#GartnerMSE
Mike Cisek

2. "There Is Nothing So Useless as Doing Efficiently That Which Should Not Be Done at All."
— Peter Drucker
Peter Drucker – Australian-born American Management Consultant
Key Ideas
Decentralization and simplification
Planned abandonment – Business tend to cling to "yesterdays successes" rather than seeing when they are no longer useful
A companies primary responsibility is to sever its customers
Do what you do best and outsource the rest.

3. Key Issues The attributes that define a midsize enterprise?
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The attributes that define a midsize enterprise?
What is driving behavior in midsize enterprises?
What five technology trends are impacting the midmarket?

4. How Gartner (and Vendors) Define Midsize Enterprises
100 Employees
$50 Million
$1 Billion
1000 Employees
Lower Midmarket
Upper Midmarket
500 Employees
$500 Million
Storage
Servers and
Virtualization
End Users
Cloud Services
IT Budget
IT Budget% of Rev.
WAN Topology
IT Resources
Applications

5. Attributes That Define Midsize Enterprises (MSE)
Revenue
$272M
Employees 978
Servers
116
85% Virtual
App Developers
5 FTEs
23% = 0 FTEs
% of Portfolio XaaS
20 to 25%
IT Budget
90% < $10M
2 to 4% Rev.
IT Staff
19 FTEs
63% Versatilists
Storage
92TB
62%<50TB
Security Resources
.97 FTEs
44% = 0 FTEs
% Desktops Virtual
16%
46% = 0
Sources: Priorities, Challenges, Global CIO Survey, Inquiry, Events
These data points are MSE, North America Specific
Source: Midsize Enterprise Summit Spring & Fall 2017 n = 228

6. Common Threads Among Midsize Enterprises
Technology to Improve Business Outcome
First Mover Advantage
Adapt Quickly to Change
Publicly Traded
Family Owned
Startup
Nonprofit
$50 M — $1 B Annual Revenue
Limited Pool of Funding
Attracting Right Skills
Attention From Vendors
Privately Owned
Lack Economies of Scale
Fit for Purpose & Good Enough
Optimize Vendor Selection & Value
Manage Services Not Technology Assets
Exploit
Mitigate
Intimate Executive Relationships
Agility
Quicker Decision Making
Smaller Scale Environment
Advantages
Constraints

7. Key Issues The attributes that define a midsize enterprise?
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The attributes that define a midsize enterprise?
What is driving behavior within midsize enterprises?
What five technology trends are impacting the midmarket?
Sources:Priorities, Challenges, Global CIO Survey, Inquiry, Events

8. Three Dynamics That Drive Behavior in Midsize Enterprises
Economic Discipline
Dyadic Communication
Rightsized Approaches
MSEs have an entirely different economic, cultural and managerial environment.
"We are unique and not just scaled down versions of large enterprises. It is, therefore, a mistake to contrast the IT decision-making behavior of midsize enterprises with that of big companies."
"It is important to talk with someone who has a deep understanding of the characteristics of midsize enterprises. Telling me to move everything to cloud does not help me."

9. Thinking About Your Organization as a Whole, What Would You Say Are the Its Top Business Priorities for the Next Two Years (2017 to 2018)?
Growth/
Market Share
28%
Digital Business/Digital Transformation
14%
Innovation, R&D, New Products and Services
10%
Technology
Improvements 8%
Workforce
Focus 8%
Customer
Focus 8%
Corporate M&A, New Business Consolidation 8%
Security, Safety
and Risk 8%

10. Link Investment Decision to Economic Principles That Generate Monetized Business ValueBI
Analytics
21%
Digitalization/
Digital Marketing
10%
Cloud Services/
Solutions
10%
Infrastructure
Data Center 7%
CRM 6%
Mobility/Mobile
Applications 5%
Network, Voice &
Data Communications 4%
ERP 7%
I think this page makes more sense at the end when we point to specifics around I&O and Apps.
Which technology area do you think is most important to help your business differentiate and win/is most crucial to achieving your org. mission?

11. Key Issues The attributes that define a midsize enterprise?
Placeholder for text (substitute your own text; delete when not used)
The attributes that define a midsize enterprise?
What is driving behavior within midsize enterprises?
What five technology trends are impacting the midmarket?
Sources:Priorities, Challenges, Global CIO Survey, Inquiry, Events

12. Five Technology Trends Impacting Midsize Enterprises
Cloud-Inspired Hybrid Infrastructure
Selective Utilization of "Anything as a Service (XaaS)"
Enhanced Security Detection and Response Capabilities
Platforms That Optimize Operations and Customer Experience
Exploiting Data and Analytics to Drive Business Transformation

13. Hype Cycle for Midsize Enterprises, 2017
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Innovation Trigger
Peak of
Inflated Expectations
Trough of Disillusionment
Slope of Enlightenment
Plateau of Productivity
Time
Expectations
Years to mainstream adoption:
Less than 2 years
2 to 5 years
5 to 10 years
More than 10 years
Obsolete
before plateau
As of July 2017
Firewall as a Service
Cloud Data Backup
Third-Party Support for ERP
IoT for Customer Service
Self-Service Data Preparation
Micro Data Centers
Predictive Analytics
API Management PaaS
Integrated Systems: Hyperconvergence
Analytics for Customer Intelligence
Cloud-Based IT PPM Services
Knowledge Management for Customer Service
Cloud Office
Hybrid Cloud Computing
Integrated IaaS and PaaS
Customer Self-Service Suites
Cloud Access Security Brokers
Cloud-Managed LANs
Disaster Recovery as a Service (DRaaS)
Cloud UC (UCaaS)
IAM Managed Services
Managed WLAN
Application Performance Monitoring Suites
Public Cloud SaaS Administrative ERP
Enterprise Mobility Management Suites
IT Event Correlation and Analysis Tools
Visual Data Discovery
Content Services
Develop Your Own App
IDaaS
Application Security as a Service
From "Hype Cycle for Midsize Enterprises, 2017," 19 July 2017 (G )

14. Cloud-Inspired Hybrid Infrastructure
Cloud Data Backup
Micro Data Centers
Hyperconvergence
Hybrid Cloud Computing
Cloud-Managed LANs
DRaaS
UCaaS
What do we know?
Consolidation and virtualization have yielded tremendous results.
Integrated infrastructure solutions consume the fewest technical and financial resources possible.
Investments must yield tangible results i.e., improve resource utilization and reduce complexity.

15. Selecting of "Anything as a Service (XaaS)"
API Management PaaS
Cloud-Based IT PPM Services
Cloud Office
Integrated IaaS and PaaS
DRaaS
UCaaS
Public Cloud SaaS Administrative ERP
What do we know?
The "right" XaaS can reduce capital expenses, address skills gaps and enhance capabilities.
Adoption and consumption of XaaS must remain selective and can be a venture fraught with peril.
XaaS must be viewed in terms of impact on business process, customer experience and technology architectures.

16. Enhanced Security Detection and Response Capabilities
Firewall as a Service
Content Services (EFSS/ECM)
CASB
IDaaS
IAM Managed Services
EMM Suites
Application Security as a Service
What do we know?
Protection from advanced attacks is needed immediately.
Complex solutions and/or large number of alerts or events are unmanageable.
Network and endpoint threat defense platforms provide access to advanced behavioral engines for malware protection.
Visibility and control of sensitive data in public cloud is now a requirement.

17. Platforms That Optimize Operations and Customer Experience
Third-Party Support for ERP
Content Services (EFSS/ECM)
IoT for Customer Service
Develop Your Own App
Knowledge Management for Customer Service
Customer Self-Service
Cloud Office
What do we know?
We need to make it easier for people to share and exchange information and ideas.
Increased consumerization of enterprise technology will enable digital transformation.
Social and collaborative capabilities will grow and play a greater role in user productivity.
Knowledge Management – Machine learning Virtual assitants, chat
Application Performance monitoring

18. Exploitation of Data and Analytics to Drive Transformation
Self-Service Data Preparation
Predictive Analytics
Analytics for Customer Intelligence
IT Event Correlation and Analysis Tools
Visual Data Discovery
What do we know?
Quick and easy access to analytical insight from desperate data sources has endless potential.
High-value insight and decision making from modern architecture enables teams with scarce resources to be significantly |more productive.

19. Recommended Gartner Research
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Three Dynamics That Drive Midsize Enterprises Mike Cisek and Mark Fabbi (G )
Hype Cycle for Midsize Enterprises, Mike Cisek, James A. Browning and Others (G )
Three Steps to Free Up Resources in Midmarket IT Organizations James A. Browning and Mike Cisek (G )
How MSE IT Leaders Can Maximize Investment Funds for Infrastructure Acquisitions Mark Fabbi and Mike Cisek (G )