40%+ of firms lose revenue from technology downtime and cloud complexity

40%+ of firms lose revenue from technology downtime and cloud complexity Duncan is an award-winning technology industry analyst, specialising in cloud computing, blockchain, martech and edge computing.


55% of enterprises are struggling to derive meaningful insights from their data, highlighting an industry-wide need to deliver technology faster, more reliably and in more places, according to a survey by Hitachi Vantara, the modern infrastructure, data management and digital solutions subsidiary of Hitachi.

The survey revealed ongoing challenges related to security, inflexible systems, isolated data, a skilled labor shortage, and the need for infrastructure agility. These challenges are heightened by rising data complexities, rigid technology environments, and increasing costs due to aging or legacy infrastructure.

The “Embracing ITaaS For Adaptability and Growth study surveyed 213 IT leaders across North America and Europe to assess the IT as a Service (ITaaS) market with a focus on subscription- and consumption-based models. The survey exposed major legacy infrastructure challenges causing IT decision-makers to report negative impacts on their businesses. Key findings include:

  • 56% of businesses reported a significant impact on revenue due to technology downtime.
  • 50% of organisations face a high total cost of ownership (TCO) or technical debt associated with critical applications.
  • 45% of businesses have difficulties navigating complex cloud landscapes.

Gary Lyng, vice president, product and solutions, Hitachi Vantara, said: “In today’s digital age, IT is not just a department; it’s a driving force that propels progress. It enables enterprises to innovate, collaborate, and flourish amid ever-evolving technology.

“But complexity is hindering innovation, which emphasises the need for trusted specialists to simplify setup for seamless access to data and applications. Our expertise in storage and digital infrastructure and pay-as-you-go solutions rights the ship for struggling enterprises, maximising value and the overall return on their investment.”

The study also sheds light on the recent growth of ITaaS, revealing that 42% of leaders are expanding their adoption. Additional survey findings include:

  • ITaaS Budget Allocation: To conserve capital budgets, IT leaders use ITaaS to shift their IT financing model to a set of operating costs which are easier to predict and budget for. Decision-makers cite a 20% reduction in TCO on average.
  • Expected ITaaS Growth: ITaaS is expected to rise not only for individual solutions but also across the entirety of various infrastructure categories. For example, 56% of respondents are using ITaaS for all of their primary infrastructure today, and this value is expected to go up to 86% in three years.
  • Strategic Partnership with the Right ITaaS Vendor is Key: Infrastructure leaders also noted the importance of choosing the right partner. Beyond pricing, decision-makers carefully consider elements such as the partner’s proficiency in supporting hybrid and multicloud strategies, providing expertise, and enabling faster innovation through seamless technology service integration.

Methodology

In May 2023, Hitachi Vantara commissioned Forrester Consulting to conduct an online survey to assess ITaaS adoption. The study involved 213 IT infrastructure decision-makers from diverse industries across North America and Europe. The survey focused on IT infrastructure priorities, challenges, the significance of ITaaS in addressing key themes and preferred qualities in an ITaaS partner.

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