Top CIO Challenges: IT Complexity and Managing IT Performance
September 30, 2019
Share this

Digital transformation, migration to the enterprise cloud and increasing customer demands are creating a surge in IT complexity and the associated costs of managing it. Technical leaders around the world are concerned about the effect this has on IT performance and ultimately, their business according to a new report from Dynatrace, based on an independent global survey of 800 CIOs, Top Challenges for CIOs in a Software-Driven, Hybrid, Multi-Cloud World.

CIO responses to the survey indicate that lost revenue (49%) and reputational damage (52%) are among the biggest concerns as businesses transform into software businesses and move to the cloud.

And, as CIOs struggle to prevent these concerns from becoming reality, IT teams now spend 33% of their time dealing with digital performance problems, costing businesses an average of $3.3 million annually, compared to $2.5 million in 2018; an increase of 34%. To combat this, 88% of CIOs say AI will be critical to IT’s ability to master increasing complexity.

Software is Transforming Every Business

Every company, in every industry, is transforming into a software business. The way enterprises interact with customers, assure quality experiences and optimize revenues is driven by applications and the hybrid, multi-cloud environments underpinning them. Success or failure comes down to the software supporting these efforts. The pressure of this "run-the-business" software performing properly has significant ramifications for IT professionals.

According to the survey:

■ 44% of CIOs fear there could be a threat to the existence of their business if they are unable to manage IT performance.

■ As complexity continues to grow, 74% of CIOs say it could soon become extremely difficult to manage performance efficiently.


Enterprise "Cloud-First" Strategies Increase Complexity

Underpinning this software revolution is the enterprise cloud, allowing companies to innovate faster and better meet the needs of customers. The enterprise cloud is dynamic, hybrid, multi-cloud, and web-scale, containing hundreds of technologies, millions of lines of code and billions of dependencies. However, this transformation isn’t simply about lifting and shifting apps to the cloud, it’s a fundamental shift in how applications are built, deployed and operated.

According to the survey:

■ The majority of CIOs are already using or are planning to deploy microservices (88%), containers (86%), serverless computing (85%), PaaS (89%), SaaS (94%), IaaS (91%) and private cloud (95%) in the next 12 months.

■ The average mobile or web application transaction crosses 37 different technology systems or components. This brings an inherent increase in IT complexity, making it harder for organizations to manage performance.

The Age of the Customer Increases Pressure to Deliver Great Experiences

We are squarely in the age of the customer, where high quality service is paramount due to the ease with which customers will try competitive offerings and share their experiences instantly via social media.

The research highlights the extent to which businesses are struggling to combat IT complexity that threatens the customer experience, with CIOs revealing: on average, organizations have suffered 6 IT outages where user-experiences, business revenues or operations were impacted in the last 12 months.

IT Teams Are Feeling the Strain

Digital transformation, migration to the enterprise cloud and increasing customer demands are collectively putting pressure on IT teams, who continue to feel the strain, especially as it relates to performance. Revealing the extent of this dilemma, key findings of the research also show that:

■ More than three quarters of CIOs (76%) say they don’t have complete visibility into application performance in cloud-native architectures.

■ 78% of CIOs are frustrated that so much time is spent setting up monitoring for different cloud environments when deploying new services.

■ IT teams now spend around 33% of their time tackling performance problems.


Exploring the potential antidote to these challenges, the research further reveals that 88% of CIOs say that they believe AI will be critical to IT’s ability to master increasing complexity.

Share this

The Latest

December 05, 2019

Application performance monitoring (APM) has become one of the key strategies adopted by IT teams and application owners in today’s era of digital business services. Application downtime has always been considered adverse to business productivity. But in today’s digital economy, what is becoming equally dreadful is application slowdown. When an application is slow, the end user’s experience accessing the application is negatively affected leaving a dent on the business in terms of commercial loss and brand damage ...

December 04, 2019

Useful digital transformation means altering or designing new business processes, and implementing them via the people and technology changes needed to support these new business processes ...

December 03, 2019
The word "digital" is today thrown around in word and phrase like rice at a wedding and never do two utterances thereof have the same meaning. Common phrases like "digital skills" and "digital transformation" are explained in 101 different ways. The outcome of this is a predictable cycle of confusion, especially at business management level where often the answer to business issues is "more technology" ...
December 02, 2019

xMatters recently released the results of its Incident Management in the Age of Customer-Centricity research study to better understand the range of various incident management practices and how the increased focus on customer experience has caused roles across an organization to evolve. Findings highlight the ongoing challenges organizations face as they continue to introduce and rapidly evolve digital services ...

November 26, 2019

The new App Attention Index Report from AppDynamics finds that consumers are using an average 32 digital services every day — more than four times as many as they realize. What's more, their use of digital services has evolved from a conscious decision to carry around a device and use it for a specific task, to an unconscious and automated behavior — a digital reflex. So what does all this mean for the IT teams driving application performance on the backend? Bottom line: delivering seamless and world-class digital experiences is critical if businesses want to stay relevant and ensure long-term customer loyalty. Here are some key considerations for IT leaders and developers to consider ...

November 25, 2019

Through the adoption of agile technologies, financial firms can begin to use software to both operate more effectively and be faster to market with improvements for customer experiences. Making sure there is the necessary software in place to give customers frictionless everyday activities, like remote deposits, business overdraft services and wealth management, is key for a positive customer experience ...

November 21, 2019

For the past two years, Couchbase has been digging into enterprises' digital strategies. Can they deliver the experiences and services their end-users need? What pressure are they under to innovate and succeed? And what is driving investments in new technologies? ...

November 20, 2019

Adapting to new business requirements and technological shifts requires that IT Ops teams adopt a different viewpoint, and along with that, skills and culture. A survey by OpsRamp uncovered some common thinking among IT Operations leaders on how to address talent, budget, and data management pains amid digital disruption ...

November 19, 2019

Unexpected and unintentional drops in network quality, so-called network brownouts, cause serious financial damage and frustrate employees. A recent survey sponsored by Netrounds reveals that more than 60% of network brownouts are first discovered by IT’s internal and external customers, or never even reported, instead of being proactively detected by IT organizations ...

November 18, 2019

Digital transformation reaches into every aspect of our work and personal lives, to the point that there is an automatic expectation of 24/7, anywhere availability regarding any organization with an online presence. This environment is ripe for artificial intelligence, so it's no surprise that IT Operations has been an early adopter of AI ...