Decision Imperative #4 (Premature Obsolescence)

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IDC's CIO Agenda Top 10 Decision Imperatives 0-12 Organizational Impact Time (Months) to Mainstream Note: The size of the bubble indicates complexity/cost to address. 12-24 12+ Singledepartment Multipledepartments Companywide StrategicArchitecture CompetitiveStrategies PrematureObsolescence EnterpriseData 5 3 1 2 4 CIOPriorities

The 3rd Platform accelerates technology adoption and maturity cycles, and this will lead to premature obsolescence of current IT assets. The shift away from existing IT assets can be delayed, at a cost, but cannot be avoided.

The CIO can lament the rapid loss of value or grab the opportunity to migrate to new, flexible, variable-cost, service-based solutions to legacy business applications. But fundamentally there has to be focus on reducing legacy quicker, and running on simpler IT architecture.

38% 36% 33% 27% My functional area is becoming more tech savvy and we feel comfortable driving our own IT projects The link between technology and business results is increasing and my functional area feels a sense of urgency to implement new technolo-gy initiatives Requirements to incorporate new technologies into legacy IT systems make it difficult for IT to meet demands of our functional area We are able to access technology more easily because of cloud computing

IDC LOB Sentiment Study - August 2014
n=304 Technology Buyers in the Business

IT Impact

  1. Previous strategic investments are becoming liabilities and are a drag on IT's ability to move at the speed of business change
  2. Existing IT assets are not designed to support increasingly complex cyber threats or 3rd Platform user expectations
  3. The CIO's credibility is challenged when making the case for ignoring sunk costs and inability to simplify existing IT landscapes

Guidance

  1. Immediately assess current IT assets, and remediate all systems that are past EOM life cycle and security support
  2. Create migration strategies for assets where upgrades to current requirements are unaffordable or more expensive than replacement
  3. Design an approach which ensures simplification of the existing IT landscape allows for easy migration off legacy systems

IDC Prediction

By 2016, 80% of CIOs Will Accelerate 3rd Platform Migration to Counter Premature Obsolescence of Current IT Assets