Masters of Machines

Business insight from IT operational intelligence

Clive Bob Tarzey Longbottom,
C

Service Director, Analyst and Director Quocirca Ltd

Quocirca Ltd. April 3rd 2014

Overview
Background Metrics Infrastructure Operational intelligence Machine data Tooling-up

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Background

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Research background: 5 countries, 6 sectors

Overall France Germany UK Sweden Netherlands 0% 85 20 22 21 8 14 20% 85 22 20 22 15 6 40% 85 23 22 18 9 13 60% Gaming 85 20 21 22 12 10 80% 5 5 20 20 9 7 7 3 1 2 100%

Finance
RDT
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Manufacturing
Telco

Other commercial

RDT = retail, distribution and transport

Business sizes by sector

Overall Finance Manufacturing Other commercial 6 22 34 30 151

Job roles of respondents: Senior IT or e-commerce

146 37 29 49 26 22 6 77

RDT
Telco Gaming 0% 6 6 20%

51
4 8 40% 60%

23
10 4 80%

11

2 100%

200 to 1,000
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1,000 to 3,000

3,000 to 5,000

Over 5,000

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"Our organisation could benefit from the use of operational intelligence by collecting, storing and analysing real-time and historical machine data to gain insights that would not otherwise be available." Overall Telco Finance 33% 40% 42% 49% 50% 46%

To what extent do you agree with this statement:

Other commercial
Gaming 20%

36%
60%

47%

RDT
Manufacturing 0%
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24%
29% 20% Strongly agree 40%

54%
46% 60% 80% 100%

Somewhat agree

Metrics

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Transactiveness

Operational intelligence maturity

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TRANSACTIVENESS: volume of daily commercial transactions driven by IT systems

Overall 40,445 82,320 31,820

Size. No. of employees

Over 5,000 3,000 to 5,000

1,000 to 3,000
200 to 1,000 Telco Finance

28,519
13,083

111,050 65,824

Sector

RDT
Manufacturing Gaming Other commercial 0

29,603
27,316 27,125 25,560 40,000 80,000 120,000

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Types of business transactions considered essential OVERALL

B2B B2C 47% 38% 36% 20% 69%

Overall

B2P M2M Digital assets

See report for data by industry

0%
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20%

40%

60%

80%

Transaction volume ranges

23%

21%

Very high (< 50K) High (20K-50K)

26%

30%

Medium (5K to 20K) Low (< 5000)

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The 4 stages of operational intelligence maturity

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The 4 stages of operational intelligence maturity

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Please rate your organisations ability to do the following OVERALL

Real-time business Operational Proactive Search and insights visibility monitoring investigate 1A 1B 1C 2A 2B 29% 27% 28% 33% 26% 28% 24% 24% 43% 43% 49% 48% 23% 46% 47% 43% 40% 44% 36% 24% 23% 19% 24% 17% 17% 14% 20% 4% 4% 6% 9% 5% 7% 6% 11% 9%

2C
3A 3B

3C
4A 4B 4C
0%

25%
28% 25%
20%

39%
44% 42%
40% 60% Poor

23%
21% 23%
80% None

12%
8% 10%
100%

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Already strong

Would like to improve

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Operational intelligence index by sector

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Operational intelligence index by size

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Infrastructure

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What role do the following play in the way IT is deployed by your organisation?
Our own systems in our own data centre Virtualisation

64%

26%

47%
31% 30%

42%
45% 45%

Our own systems in a third party data centre Software-as-a-service (SaaS)

Infrastructure/platform-as-aservice (IaaS/PaaS)
0%

28%
20%

38%
40% 60% 80% 100%

Primary
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Secondary

Transactiveness and use of flexible infrastructure

Overall Use virtualisation Use SaaS/PaaS A primary way we deploy 40,445 40,808

A secondary way we deploy

We do not deploy in this way A primary way we deploy A secondary way we deploy We do not deploy in this way 0

44,185
35,404 46,617 34,751 35,450 20,000 40,000 60,000

Average daily transaction volume

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Percentage of infrastructure managed in-house and by service providers

Overall 65% 35%

Telco
RDT Other commercial Finance Manufacturing Gaming 0%
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72%
67% 66% 64% 63% 58% 20% In-house 40% 60%

29%
33% 34% 36% 37% 42% 80% 100%

Outsourced

Operational intelligence

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Operational intelligence in action

Call centre monitoring Monitoring usage of online services Fraud prevention Payment card controls Physical access control Access authentication Service personalisation IT management controls KPI measurement and monitoring
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Operational intelligence maturity By use of FLEXIBLE INFRASTRUCTURE

Overall Use of PaaS/IaaS A primary way we deploy 1.92 2.27

A secondary way we deploy

We do not deploy in this way A primary way we deploy A secondary way we deploy 1.56

1.98

Use of virtualisation

2.02 1.89

We do not deploy in this way

0 1

1.69
2 3

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OI index

Job roles with a comprehensive view of operational intelligence

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What roles in the organisation have access to operational intelligence?

IT managers 56% 29% 9%

Application developers
Board level executives Marketing managers Product managers Partners

36%
35% 28% 27% 22% 22%

36%
27% 41% 38% 21%

12% 16%
22% 18% 22% 34% 16% 13% 13%

Service providers 0%
Comprehensive
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17% 20%

28% 40%

19% 60%

36% 80% 100%

Would like to improve No need/don't know/no OI

Would like to, not able to

Board level view of operational intelligence By OI INDEX

Overall Maximum High Medium Low Very low 0%

35% 82% 48% 33%

27%

22%

16% 9% 9%

35% 28% 23%

11% 6% 16%

27% 16%
20%

21% 34%
40%

37% 47%
60% 80%

15%

100%

Comprehensive view Would like to provide a view

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Would like to improve view No need/don't know/no OI

View of operational intelligence provided to service providers By HOW IT IS MANAGED

Overall

17%

28%

19%

36%

How IT infrastructure is managed

Mainly in-house

16%

22%

18%

44%

Equal

20%

41%

13%

26%

Mainly by service provider

18%
0% 20%

38%
40%

25%
60%

18%
100%

80%

Already comprehensive
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Would like to improve No need/no OI capabilty/don't know

Would like to, not able to

Machine data

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Sources of machine data

System and network data User data Application data Web data Other sources

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How necessary is machine data for delivering operational intelligence?

Overall Telco Finance Other commercial RDT Manufacturing 38% 30% 48% 42% 34% 35% 41% 34% 41% 60% 39% 44%

Gaming
0%
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20%
20% Very

45%
40% Somewhat 60% 80% 100%

How much of a challenge are the following issues for your organisation? OVERALL
Collecting, searching and analysing large volumes of historic machine Integration of multiple data stores Correlate historical machine data with new machine data collected Ability to add new data sources to existing data stores Delivering value to your business from machine generated 'big data'

26%
23% 21% 19% 20%

38%
37% 37% 37% 33%

Integrate and analyse machine data from both on-premise and on-

18%

33%

0% 10% 20% 30% 40% 50% 60% 70%

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A big challenge

Somewhat of a challenge

Percentage of IT infrastructure machine data is gathered from By OI INDEX

Maximum

65% 49% 45% 39%

High OI Index

Medium

Low

Very low 0%
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15%
10% 20% 30% 40% 50% 60% % of infrastructure machine data gathered from 70%

Tooling up

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How does your organisation currently capture operational intelligence?

Business intelligence tools Spreadsheets Data warehouse Relational database system Custom scripts Purpose built tool We do not currently capture
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64%
57%

54%
46%

45%
27%

4%
0% 20% 40% 60% 80%

Machine data collected by tool used

Overall
Purpose built tool Relational database system Business intelligence tools Custom scripts
45% 44% 44% 44% 43%

43%
52%

Data warehouse
Spreadsheets
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20%

30%

40%

50%

Quocircas report is freely available here: http://www.splunk.com/goto/masters_of_machines_whitepaper

Quocirca 2014

THANK YOU www.quocirca.com

bob.tarzey@quocirca.com

Quocirca 2014