Welcome!

@CloudExpo Authors: Kevin Benedict, Steve Wilson, Yeshim Deniz, Stackify Blog, Elizabeth White

Related Topics: @CloudExpo

@CloudExpo: Article

Leaders vs Laggards in the Application Economy By @JackieKahle | @CloudExpo

What you need to learn from the application economy leaders, based on a new global research study

Leaders Versus Laggards in the Application Economy

Today, we’re at a crossroads. Some companies are choosing to dive into the application economy, while others stand back afraid of the change. It should come as no surprise then that companies that are embracing the application economy are emerging as victorious.

That’s because customers today are far more likely to experience brands through software than in-person interactions. Everything is connected through the application-based world, and customers are demanding superior user experiences.

What can you learn from the leaders in the application economy, and what will it take for you to join their ranks?

The study

We ask ourselves this every day, and our customers come to us for our advice as well. So we thought it would be helpful if we got some hard data.

Several months ago CA technologies commissioned the research firm Vanson Bourne to conduct a global survey with 1,425 senior business executives to find out what enterprises today were actually doing to respond to the application economy.

Leaders versus laggards

In looking at their responses to several questions, we were able to develop two segments we call the application economy “leaders” and “laggards”. We were then able to look at each segment’s self-reported revenue growth, profit growth, and percent of their revenue, which is coming from new products and services.

The differences are pretty compelling (see the chart below).  The leaders (as compared to the laggards) have:

  • More than double the revenue growth
  • 68% higher profit growth
  • 50% more business coming from new products and services

Okay, bet we have now have your attention!

What makes the leaders successful?

The survey didn’t stop there – we went on to look at what specific things the leaders were doing differently from the laggards – things our customers could also potentially replicate. And we discovered four concrete behaviors that differentiate the application economy leaders:

Leaders embrace DevOps to accelerate delivery of proven, high-quality applications.

Almost half (49%) of the leaders have adopted DevOps versus only 6% of the laggards. Moreover, they are far more likely to use external metrics (such as revenue and customer experience) to measure DevOps success – 58% of the leaders versus only 26% of the laggards.

Leaders use security as a business enabler rather than just a way to control access.

A full 47% of leaders (versus 18% of laggards) report that they have seen increased revenue from new services enabled by security, and 54% have seen an increase in the number of customers using their apps and services due to their security initiatives (versus 20% of laggards).

To enable a full application eco-system, 93% of leaders also open access to their APIs versus 49% of the laggards.

Leaders manage IT as a business and report better overall IT performance. Leaders are far more likely to frequently use software tools to manage IT as a business – 43% use them to share KPIs with the business (versus 6% of Laggards), 50% to evaluate shifts in IT investments (versus 12% of the Laggards) and 53% to evaluate whether IT is achieving their KPIs (versus 20% of Laggards).

Leaders adopt an enterprise-wide approach to mobility and report higher levels of consumer satisfaction and faster time-to-market from their mobility apps/services.

Rather than approach mobility as a set of siloed projects, 67% of leaders have adopted enterprise mobility (versus 14% of laggards). Just over half (52%) of leaders report increased customer satisfaction from their mobility initiatives (versus 21% of laggards) and 53% report faster time-to-market (versus 16% of laggards).

Survive and thrive in the application economy

If you still have doubts about how the application economy is going to affect your business, or are not convinced you need to transform your current IT practices in response, we encourage you to download the research report  How to Survive and Thrive in the Application Economy.

It will also give you much more details on how we developed the leaders and laggards segments. Then let me know what you think – via Twitter @jackiekahle or LinkedIn at www.linkedin.com/in/jrkahle

More Stories By Jackie Kahle

Jackie is a 30-year veteran of the IT industry and has held senior management positions in marketing, business development, and strategic planning for major systems, software, and services companies including Hewlett-Packard, Compaq, and Gartner. She currently manages the strategy and execution of CA Technologies thought leadership programs. Jackie has an MBA from the Whittemore School, University of New Hampshire, a BA in Mathematics from New York University and is the Vice-Chair of the N.H. State Council on the Arts.

@CloudExpo Stories
SYS-CON Events announced today that GrapeUp, the leading provider of rapid product development at the speed of business, will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Grape Up is a software company, specialized in cloud native application development and professional services related to Cloud Foundry PaaS. With five expert teams that operate in various sectors of the market acr...
Blockchain is a shared, secure record of exchange that establishes trust, accountability and transparency across business networks. Supported by the Linux Foundation's open source, open-standards based Hyperledger Project, Blockchain has the potential to improve regulatory compliance, reduce cost as well as advance trade. Are you curious about how Blockchain is built for business? In her session at 21st Cloud Expo, René Bostic, Technical VP of the IBM Cloud Unit in North America, will discuss th...
SYS-CON Events announced today that CA Technologies has been named "Platinum Sponsor" of SYS-CON's 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. CA Technologies helps customers succeed in a future where every business - from apparel to energy - is being rewritten by software. From planning to development to management to security, CA creates software that fuels transformation for companies in the applic...
In his opening keynote at 20th Cloud Expo, Michael Maximilien, Research Scientist, Architect, and Engineer at IBM, discussed the full potential of the cloud and social data requires artificial intelligence. By mixing Cloud Foundry and the rich set of Watson services, IBM's Bluemix is the best cloud operating system for enterprises today, providing rapid development and deployment of applications that can take advantage of the rich catalog of Watson services to help drive insights from the vast t...
There is only one world-class Cloud event on earth, and that is Cloud Expo – which returns to Silicon Valley for the 21st Cloud Expo at the Santa Clara Convention Center, October 31 - November 2, 2017. Every Global 2000 enterprise in the world is now integrating cloud computing in some form into its IT development and operations. Midsize and small businesses are also migrating to the cloud in increasing numbers. Companies are each developing their unique mix of cloud technologies and service...
Cloud adoption is often driven by a desire to increase efficiency, boost agility and save money. All too often, however, the reality involves unpredictable cost spikes and lack of oversight due to resource limitations. In his session at 20th Cloud Expo, Joe Kinsella, CTO and Founder of CloudHealth Technologies, tackled the question: “How do you build a fully optimized cloud?” He will examine: Why TCO is critical to achieving cloud success – and why attendees should be thinking holistically ab...
WebRTC is great technology to build your own communication tools. It will be even more exciting experience it with advanced devices, such as a 360 Camera, 360 microphone, and a depth sensor camera. In his session at @ThingsExpo, Masashi Ganeko, a manager at INFOCOM Corporation, will introduce two experimental projects from his team and what they learned from them. "Shotoku Tamago" uses the robot audition software HARK to track speakers in 360 video of a remote party. "Virtual Teleport" uses a...
Internet of @ThingsExpo, taking place October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 21st Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago. All major researchers estimate there will be tens of billions devic...
An increasing number of companies are creating products that combine data with analytical capabilities. Running interactive queries on Big Data requires complex architectures to store and query data effectively, typically involving data streams, an choosing efficient file format/database and multiple independent systems that are tied together through custom-engineered pipelines. In his session at @BigDataExpo at @ThingsExpo, Tomer Levi, a senior software engineer at Intel’s Advanced Analytics ...
While some vendors scramble to create and sell you a fancy solution for monitoring your spanking new Amazon Lambdas, hear how you can do it on the cheap using just built-in Java APIs yourself. By exploiting a little-known fact that Lambdas aren’t exactly single-threaded, you can effectively identify hot spots in your serverless code. In his session at @DevOpsSummit at 21st Cloud Expo, Dave Martin, Product owner at CA Technologies, will give a live demonstration and code walkthrough, showing how ...
SYS-CON Events announced today that Elastifile will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Elastifile Cloud File System (ECFS) is software-defined data infrastructure designed for seamless and efficient management of dynamic workloads across heterogeneous environments. Elastifile provides the architecture needed to optimize your hybrid cloud environment, by facilitating efficient...
As DevOps methodologies expand their reach across the enterprise, organizations face the daunting challenge of adapting related cloud strategies to ensure optimal alignment, from managing complexity to ensuring proper governance. How can culture, automation, legacy apps and even budget be reexamined to enable this ongoing shift within the modern software factory?
The question before companies today is not whether to become intelligent, it’s a question of how and how fast. The key is to adopt and deploy an intelligent application strategy while simultaneously preparing to scale that intelligence. In her session at 21st Cloud Expo, Sangeeta Chakraborty, Chief Customer Officer at Ayasdi, will provide a tactical framework to become a truly intelligent enterprise, including how to identify the right applications for AI, how to build a Center of Excellence to...
SYS-CON Events announced today that Golden Gate University will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Since 1901, non-profit Golden Gate University (GGU) has been helping adults achieve their professional goals by providing high quality, practice-based undergraduate and graduate educational programs in law, taxation, business and related professions. Many of its courses are taug...
@DevOpsSummit at Cloud Expo taking place Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center, Santa Clara, CA, is co-located with the 21st International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is ...
DevOps at Cloud Expo, taking place October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 21st Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to w...
SYS-CON Events announced today that DXWorldExpo has been named “Global Sponsor” of SYS-CON's 21st International Cloud Expo, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Digital Transformation is the key issue driving the global enterprise IT business. Digital Transformation is most prominent among Global 2000 enterprises and government institutions.
21st International Cloud Expo, taking place October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy. Me...
yperConvergence came to market with the objective of being simple, flexible and to help drive down operating expenses. It reduced the footprint by bundling the compute/storage/network into one box. This brought a new set of challenges as the HyperConverged vendors are very focused on their own proprietary building blocks. If you want to scale in a certain way, let’s say you identified a need for more storage and want to add a device that is not sold by the HyperConverged vendor, forget about it....
In his session at 20th Cloud Expo, Scott Davis, CTO of Embotics, discussed how automation can provide the dynamic management required to cost-effectively deliver microservices and container solutions at scale. He also discussed how flexible automation is the key to effectively bridging and seamlessly coordinating both IT and developer needs for component orchestration across disparate clouds – an increasingly important requirement at today’s multi-cloud enterprise.