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Better insights

The vast majority of nearly 800 CxO participants in our future enterprise survey experienced challenges in getting insight in the performance of their software development and DevOps teams. Most organizations have practices in place to help them to monitor and report on the performance, but this insight does not reach CxO level. What are the causes of this paradox and what can you do to align the insights in the organization to effective CxO information?

As you can see from the numbers there is a good chance that your development and DevOps teams are using at least one of the top 4 practices to monitor performance. What we encounter in practice is that the way these practices are implemented is either not consistent over all development and DevOps teams or inconsistent in a way that is prone to be influenced by personal judgment or taste. When you have implemented code quality management tools like SonarQube, Checkstyle or FindBugs, but have no rules on how these tools should be used, how do you know what the quality of the software is that your teams are developing or maintaining? If you don’t use it consistently throughout your whole application portfolio, how do you know where to direct improvement attention?

Team productivity is quite often determined based on DORA or Flow. These types of metrics are ideal on a team level to help the teams improve, but are not suitable for CxO level decisions because they have no consistent meaning beyond the team level.

IDC is all about data. With our KPI model, we can help you determine the right dataset you need to make fact-based decisions to direct teams to bring value to your organization. When you are already a value-driven organization, IDC can tie the right KPI’s to your objectives and key results. With an assessment of your data in your tools we can help you piece the right data together or we can help you fill the gaps based on best practices.

Some examples of real insight that we have helped set up for some of our customers:

Output of the teams. How much software are they producing, compared to similar teams in similar companies, based on standardized sizing metrics. This is real management information on top of the DORA, Flow and happiness metrics for the teams themselves.
Estimation erosion. When internal team processes evolve, so do internal estimates. Improved internal processes are not always reflected in more value per sprint. By comparing the internal metrics to standardized metrics you can determine whether estimation is improving or eroding.
Code analysis at system or portfolio level. Almost half of the organizations we interviewed are using automated code quality management tools. Most of these tools are limited to establishing the code quality of an individual piece of code. Code analysis at system or portfolio level looks deeper or wider, also taking account of the quality of the total code base. This can bring to light risks in your code base of interactions between individual pieces of code or of bad updating practices for open source components that are used in your code base.
Insight in the real Bill of IT. All IT costs, including cloud spent, can be mapped towards the right value stream.

By comparing the real insights from your company to the insights we have from our IDC global market data, we can give you insight into how you compare to similar organizations. By comparing like for like we show you the differences between you and your peers. With this information you can make fact-based decisions on whether or not you need to change something. Our insight can help you make better decisions in cooperation with external service providers, make better sourcing decisions, make better decisions on how to set up your IT organization, how to create more value or to transform your application landscape.

What we see with all of our clients is that better informed decisions lead to better outcomes. Examples of those better outcomes are:

To learn more about how IDC can help you and get connected with someone on our team, click the button below.

One can be forgiven for their quizzical expression on hearing that we still have a third of the world’s population without internet access. 

According to the International Telecommunication Union (ITU), an estimated 2.9 billion people, representing 35% of the world’s population, do not have access to internet. The least developed countries are the least connected, however, these connectivity gaps also extend to developed countries.

For example, approximately 19 million Americans representing 6% of the population still lack access to fixed broadband service at threshold speeds. Global connectivity gaps exist in parts of Europe and Asia, Africa, and South America.

It’s against this backdrop that a challenge to bridge the digital divide creates an opportunity for comms SPs (Communications Service Providers) partnering with LEO (Low Earth Orbit) satellite operators to offer highspeed cost-effective options. This will close the remote and rural connectivity gap, considering terrestrial network deployment has not been financially feasible to develop a robust digital infrastructure. 

The pairing of satellite providers’ constellations in LEO with comms SPs’ mobile networks promises to deliver highspeed satellite-to-cellular coverage and broadband internet access to connect the unconnected.  Comms SPs have high expectations to derive significant benefits including extended coverage with lower latency, resiliency, access to emerging markets, and the ability to offer new services and applications.

The Surge in LEO Satellite Constellations

Previously, satellites’ success has been hindered by substantial costs and invisible profit margins associated with launching and maintaining a fleet of satellites. This time, satellite companies have a higher chance of success because of several key reasons:

Building smaller, more capable LEO satellites that are placed in orbit at an altitude of 2,000km or less. The advancement in rocket technology has made reusable rockets a reality. This significantly improves the economics of launching satellites into lower Earth orbit, making the business case more viable.
Conventional satellite connectivity placed in more distant GEO and MEO orbits have had challenges with cost, signal delay, and high latency for many cases. Whereas LEO satellite services offer lower latency in the range of 20–50ms due to the satellites’ lower orbit, making them a more viable highspeed satellite connectivity option.
Combined private and public funding in the billions of dollars for LEO satellite ventures. Governments, driven by the desire to establish control in space are diverting resources away from other programs to invest in space-related initiatives. Prominent examples include the U.S., India, China, and the European Union.
Private companies such as SpaceX are outperforming governments in terms of deployment speed, shaving years off the process.   Also, previously struggling companies such as OneWeb and Iridium have been revived out of bankruptcy through public and private funds.

With these factors at play, the current landscape presents a more favorable environment for LEO satellite operators to thrive and overcome previous challenges in addressing a vast untapped market.

Comms SPs Tying the Knot with LEO Satellite Partners

The advent of LEO satellites signals an important new opportunity for comms SPs to extend the reach of their network.  Some of these early and notable comms SP and satellite operator partnerships capitalize on this opportunity with first-mover advantage, including:

T-Mobile announced its technology alliance with SpaceX (Starlink) in August 2022 to develop satellite-to-smartphone connectivity in the United States by pairing the Starlink satellite constellation in LEO with T-Mobile’s wireless network.
Verizon announced its strategic collaboration with Amazon (Project Kuiper) LEO satellites in October 2021 to extend 4G/LTE and 5G connectivity solutions for both consumers and businesses in rural and remote communities in the United States.
Orange SA and OneWeb announced their partnership, in March 2023, to expand connectivity services across Europe, Africa, Latin America, and other global regions using LEO satellite communications.  
AT&T, Rakuten, and Vodafone have each separately partnered with AST SpaceMobile to use its LEO satellites to provide direct satellite-to-cellular communications. The partnership, in April 2023, tested the first-ever direct voice connection from space to an everyday cellular device.
NTT and SES announced in April 2023 a multiyear partnership to use MEO satellites to deliver NTT’s edge as a service to enterprise customers.
Apple in partnership with Globalstar unveiled satellite connectivity for its iPhone 14 and iPhone 14 Pro models in November 2022 to provide emergency SOS satellite service in remote areas without regular cell phone coverage.
Qualcomm and Iridium announced their partnership in January 2023 to bring satellite-to-cellular communications to Android smartphones connected to Iridium’s LEO satellite constellation.

It is evident satellite providers who also own the rockets to launch their LEO satellites have an advantage in building out their constellations versus those that rely on third-party rocket providers. IDC expects, due to the increased competition, smaller satellite operators will be either acquired or forced to partner to survive. Also, the right partnerships will be crucial for comms SPs to support their growth plans for satellite-to-cellular coverage as well as future road map development for broadband wireless services.

IDC’s Conclusion

IDC is projecting alliances with long-term implications will increase and become more significant through the pairing of satellite providers’ constellations in LEO with comms SPs.  Enabling comms SPs to evolve their network beyond terrestrial cellular with LEO satellite services that include high-speed internet, 4G/LTE and 5G broadband backhaul, and Internet of Things (IoT).

The partnering of terrestrial and satellite communications holds the promise of helping bridge the digital divide and open new economic opportunities for remote areas of the world.  It also aligns with the United Nations mandate that by 2030 every person in the world should have safe and affordable access to internet.

The coexistence of satellite and cellular networks will become increasingly prevalent and the continued standardization effort in the 3GPP ensures 5G systems integrate NTNs, such as high-altitude platform systems (e.g., LEO, MEO, and GEO satellites), with terrestrial options.

The new wave of LEO satellite deployments have placed them on the radar of government regulatory bodies. Regulators are taking note of next-generation satellite technologies and government oversight will continue to increase as nations look to establish protective borders in space.

LEO satellite constellations offer a pragmatic and more cost-effective option to close the remote and rural connectivity gap, considering terrestrial wireless network deployment has not been financially feasible to develop a robust digital infrastructure.

The opportunity presented to global comms SPs by integrating LEO satellite connectivity is huge to connect the unconnected and help bridge the digital divide. Hence the right alliances with satellite operators will be critical for comms SPs to support their growth plans for ubiquitous satellite-to-cellular coverage and 5G wireless data and broadband services.

For more insight and information on comms SPs expanding service and revenue opportunities with LEO Satellites please see IDC’s market perspective, “Communication Service Providers Expand Service and Revenue Opportunities with Low Earth Orbit Satellites.”

The breach of U.S. government email accounts by Chinese hackers, which Microsoft reported this week, will no doubt become one of the leading cybersecurity stories of 2023. It will join the likes of the SolarWinds hack and the Log4J fiasco as a major cybersecurity breach. Analysts will cite this breach for years to come to underscore why investment in cybersecurity is so critical.

But the government email breach isn’t just another example of what can go wrong when the bad guys find holes in cyberdefenses. It exemplifies novel cybersecurity challenges that forward-thinking businesses should be preparing for today. Doing more of the same on the cybersecurity front won’t protect organizations against attacks like this one.

To prove the point, let’s unpack three key takeaways from the Microsoft government hack and what they mean for the future of cybersecurity at organizations everywhere.

1.  Sophisticated cyber threats are the new threat

Perhaps the most important lesson from this incident is that the most serious threats facing organizations today are highly sophisticated ones. Gone are the days when ransomware or phishing attacks targeting low-hanging fruit – meaning businesses that were underprepared because they failed to meet standard baselines of cybersecurity preparedness – were the main challenge that CISOs had to worry about.

In the case of this hack, sophisticated, government-sponsored threat actors who presumably had extensive resources at their disposal carried out a complex attack. They didn’t exploit a known vulnerability in a server that someone had forgotten to patch, or email unsuspecting employees hoping to trick them into handing over passwords. They apparently discovered and exploited a zero-day flaw within a complex system managed by one of the world’s most sophisticated and successful tech companies – Microsoft.

The takeaway here is that erecting defenses that make your organization harder-than-average to breach will no longer suffice because the bad guys might not simply be searching for low-hanging fruit. Protecting against more mundane risks, like those that traditional ransomware attackers exploit, remains important, of course. But understanding which threat actors might be seeking to carry out more sophisticated and targeted attacks against your organization will be critical, too.

2.  The meaning of software supply chain security needs to expand

The government hack is also notable because it highlights how sophisticated threat actors are targeting software supply chains in novel ways.

Traditionally, when cybersecurity analysts talked about software supply chain security, they referred to ensuring that any third-party software components that businesses imported into their applications – such as open source libraries or modules – were secure. Hence why the U.S. government instructed developers to compile Software Bills of Materials (SBOMs). SMOBs provide visibility into the third-party software resources that businesses depend on.

SBOMs are important for determining whether a known vulnerability impacts a business’s apps. But in the case of the government hack, an SBOM would not have helped protect victims because this was not a conventional software supply chain attack. The Chinese hackers did breach the software supply chain of government agencies, but they did so by targeting a third-party SaaS platform – Microsoft Exchange Online – rather than targeting code that victims incorporated directly into their own software applications.

This type of supply chain breach isn’t entirely novel. The SolarWinds attack similarly gave attackers a backdoor into the IT environments of companies that used a third-party application. Although in that case the attackers planted malicious code into the product, which made the incident resemble a traditional supply chain breach in many ways. With this latest government hack, threat actors didn’t plant malicious code into anyone’s software supply chain; they just found a way to exfiltrate user data from third-party software that government agencies depend on.

Plus, to remediate the attack, victims had to rely on their software vendor. That also makes this incident different from conventional software supply chain attacks, which developers can remediate themselves by removing vulnerable components from their applications. In this case, only Microsoft could supply the remediation.

The key lesson here is that CISOs must think more broadly about software supply chain security. Securing your supply chain must involve more than just ensuring the securing of third-party code that your business depends on. Engaging with software vendors to manage supply chain security in SaaS apps is equally critical.

3.  Geopolitics continues to impact cybersecurity

Finally, this incident is a reminder that geopolitics is poised to play an increasingly important role in cybersecurity. Although it’s not clear exactly why Chinese hackers targeted government agencies, it’s a reasonable assumption that Chinese government competition with the United States was a factor.

A similar story has already been playing out in the context of the Ukraine conflict, which bore important implications for global cybersecurity. This latest attack highlights how tension between two other nations – the United States and China – may also lead to increased cyber attacks and cyberespionage, and perhaps not only against government agencies.

Advice for CISOs

A deep dive on what all of the above means for CISOs and the future of cybersecurity is beyond the scope of this post. But in short, businesses must adapt to a changing cybersecurity environment by:

Steeling themselves against highly sophisticated threat actors.
Taking a broader and more dynamic approach to software supply chain security by extending it to include partnerships with third-party SaaS vendors.
Anticipating and preparing to respond to cybersecurity threats linked to global conflicts or tensions.

That, at least, is what we’re thinking about the future of cybersecurity based on the information released so far about the Chinese hack. We look forward to sharpening our thoughts and guidance as more details emerge about the nature and scope of the incident.

To access more insights and would like to learn more about the benefits of IDC and how our IT Executive Programs can help you with your IT strategy, implementation, and digital transformation, click the button below.

In today’s fast-paced world, automation has emerged as a revolutionary force reshaping the technological landscape.

From self-driving cars to intelligent virtual assistants, automation is rapidly permeating various industries. Because of its increasing popularity and the importance it plays in streamlining processes and reducing costs, it has become a critical part of many organizations’ digital transformation strategy.

So far, enterprise automation has been mostly reactive. It has been implemented as a piecemeal, noninvasive method to automate routine, repetitive tasks, and structured processes and data. Business drivers, goals, and means for business processes, IT operations, and software development of enterprise automation have expanded for the next chapter of the digital journey.

According to IDC’s Future Enterprise Resiliency and Spending Survey, Wave 1 (January 2023), 30% of organizations are more than 50% done with their automation goals for their front office businesses.

The promise of automation means we will continue to see new use cases pop up. This is particularly evident with the ever-increasing amount of data that organizations need to compile, organize, and analyze. B2B buyers’ expectations for agility, flexibility, and the ability to roll out new products and services quickly have also pushed companies to embrace automation.

Digital journeys and automation are now the dynamic duo that will run a viable digital business at scale.

Rapid innovation in AI-assisted automation adds another layer of possibilities to what can be accomplished. Below, we’ll discuss a couple of ways in which automation is being used today to deliver a better customer experience overall.

Personalization at Scale

Automation plays a crucial role in the ability of businesses to tailor and customize customer experiences, communications, and offerings. Starting with data collection and analysis, automation streamlines the process of gathering customer data from multiple sources such as website interactions, purchase history, social media activity, and customer surveys.

The use of artificial intelligence (AI) and machine learning (ML) within automation enables algorithms to extract meaningful insights from the data gathered and make informed decisions. With automation tools, businesses can create and update customer profiles. Data is incorporated from various sources in real-time. These profiles give businesses a holistic view of each customer, allowing them to effectively customize their experiences.

Automation tools can also help organizations generate and deliver content in real-time. From personalized product recommendations based on browsing and purchase history to email marketing campaigns based on customer segmentation, dynamic content delivery ensures that customers receive relevant and engaging information that resonates with their specific needs.

Enterprise automation means artificial intelligence continuously supports decision-making and automated actions that proactively optimize and enrich outcomes. This process spans across the entire organization and will maximize the business value.

Proactive Engagement

Automation enables organizations to proactively engage with customers based on triggers or predefined conditions. For instance, when a customer abandons a shopping cart, an automated workflow can send a personalized email with a reminder or a special discount to encourage them to complete the purchase.

These workflows can be designed to address various customer interactions such as onboarding, upselling, cross-selling, and re-engagement. Automation can extend proactive engagement to social media platforms where businesses can monitor customer mentions, comments, and questions.

An infrastructure that’s scaled and agile delivers a great user experience. As part of digital transformation, leaders must enhance their risk and controls environment to be more intuitive and automated.

AI and ML have had a considerable impact on automation, particularly in how they’ve enabled better customer experiences. The introduction of generative AI has been met with enthusiasm. Automation use cases are already being created that have the potential to impact customer experience. Some examples of where automation within CX is headed:

Resource reallocation. Automation continues to take over manual tasks that humans perform daily, freeing up resources to focus on more complex, skill-driven activities. Everything from recruiting to medical diagnoses will be assisted by AI-driven automation, giving back valuable time to highly skilled employees to meet the unique needs of each customer.
Communication mining. Communication mining uses intelligent automation to extract valuable information and insights with AI and NPL (natural language processing). These come from various forms of communication data such as text messages, emails, social posts, customer support interactions, phone calls, recordings, and more. By mining communication data, organizations can gain insight into customer preferences. They can identify emerging trends, improve customer services, and make data-driven decisions.
Employee experience. Investing in employees and creating a positive work environment not only leads to happier, motivated, and engaged employees but improves customer service. With automation handling routine and time-consuming activities, employees can work on high-value projects and achieve higher levels of productivity. Automation can also provide opportunities for employees to develop new skills and expand their expertise. When employees feel empowered and have the right tools to be productive, they are more likely to deliver a positive customer experience.

The future of automation in CX is intelligent, automated, and engaging. The brands that achieve the most favorable results in CX are those that will merge automation and intelligent tools with human ingenuity and compassion.

It’s no secret that datacenters – the digital heartbeats powering our interconnected world – are voracious consumers of energy resources. Their energy consumption and corresponding carbon emissions are pressing concerns to those within and outside the datacenter industry.  

The importance of reducing carbon emissions as a crucial strategy to tackle climate change cannot be overstated. From the potential consequences of rising sea levels to the unpredictability of extreme weather events and disruptive impacts on ecosystems, the stakes are high. Pressure is mounting on industries worldwide to curtail their carbon footprints and contribute to global environmental efforts. 

Understanding this, the datacenter industry is far from indifferent. Almost every datacenter provider now advocates for net-zero operations. Leaders are targeting a specific date to achieve this lofty ambition. Simultaneously, IT vendors tout their innovative solutions, purporting to aid their customers in shrinking their carbon footprint. But amidst these eco-conscious promises, a troubling void becomes evident – the lack of quantitative data. 

Ironically, for an industry that thrives on data, the datacenter sector lacks comprehensive, credible data. There is a data deficit regarding power capacity, energy consumption, and carbon emissions resulting from a datacenter’s operations. We don’t have an accurate measure of the industry’s environmental impact. As a result, we don’t have a clear pathway to meeting stated net-zero goals. 

Recognizing this, IDC created new research aiming to estimate the energy consumption and carbon emissions of the datacenter market. This endeavor promises to shed new light on the datacenter industry’s environmental footprint. IDC’s research offers a quantitative lens through which to assess and compare the impact of different datacenter types and geographies. 

This dataset quantifies key parameters such as energy consumed, carbon emitted, and carbon avoided through the use of carbon-neutral energy sources. It also details power capacity, square footage, and expenditure by datacenter type, including Internet Giants, Colocation, Internal, Edge, and Telco datacenters. 

Datacenter Carbon Emissions – A Key Business Issue 

As digital transformation continues to redefine the operational landscape of organizations, another influential paradigm has become increasingly prominent – sustainability.   

IDC estimates that worldwide digital transformation investments will reach $3.4 trillion in 2026, all of which drives demand for datacenter capacity. 

“The demand for datacenter capacity is outpacing sustainability advancements” 

As part of digital transformation efforts, organizations will invest in Generative AI technologies.  These revolutionary technologies are particularly energy-hungry. Using them places an unprecedented demand on datacenter resources compared to traditional loads. For example, the energy consumption to train GPT-3 (a precursor to Chat GPT 3.5) is estimated to be 1.287 gigawatt hours. This does not include end user consumption while interacting with the model. 

It is also clear that sustainability is no longer an optional add-on or a public relations talking point. ESG (Environmental, Social, and Governance) practices create business value by fostering long-term sustainability, mitigating risks, attracting socially conscious investors, enhancing brand reputation, and driving innovation. 

These two seemingly opposing goals are creating the pre-eminent challenge for the datacenter industry. How can we meet the rapidly growing capacity demands while ensuring our operations are sustainable? 

Progress toward Net-Zero Goals 

In recent years, the datacenter industry has seen a remarkable increase in sustainability-oriented claims. In an effort to stay competitive almost all datacenter vendors are asserting their sustainability credentials. Cloud Service Providers (CSPs) and Colocation Providers are pledging to reach net-zero carbon emissions by specific target dates.

In addition, IT vendors boast about the enhanced energy efficiency of their latest chips and equipment compared to older models. While these claims are often valid and reflect a promising shift towards more sustainable practices, they can inadvertently give the impression that the datacenter industry is rapidly becoming more sustainable.  

However, this might not be the full picture. Individual components are becoming more efficient and companies are setting emission reduction goals but the overall environmental impact of the industry may not necessarily be decreasing at the same pace. Especially considering its continuous and rapid expansion. Therefore, there’s a pressing need for reliable data.

Accurate figures on energy consumption and carbon emissions of the entire datacenter industry would provide a more objective assessment of its sustainability progress. This data will help identify gaps and develop strategies to mitigate the environmental impact effectively.

So, while we must applaud the efforts and strides taken so far, it’s equally important to validate them with robust, industry-wide data to ensure a truly sustainable future for the datacenter industry. 

IDC estimates the global energy consumption of datacenters in 2022 at 382 Terawatt Hours (TWh). With a compound annual growth rate (CAGR) of 16.0%, leading to 803TWh by the year 2027. 

For more insight and information on the trends in datacenter energy growth and sustainability, please see the IDC Datacenter Deployment Model.