VMware Cloud Index 2013

2. VMware Cloud Index 2013 Michael Barnes, VP & Research Director October 22, 2013

3. The Background A online study conducted across Asia Pacific (excluding Japan) by Forrester Consulting. This is the fourth annual iteration of research that the AP VMware communications team has commissioned. Conducted in July 2013.

4. The Respondents Surveys were executed using an online-based approach and leveraged the VMware database to ensure consistency in the findings from 2010 through 2013.

5. Why Is This Study So Critical? Four Market Imperatives Driving Organizational Change Transform the customer experience Embrace the mobile mind shift Age of the Customer Turn big data into business insights Become a digital disruptor

6. Business Needs Are Changing, So Must IT 73% of all Australia IT and business decision makers believe their IT organization must more quickly and cost-effectively provision services to the business or risk getting marginalized. Rising to 81% in the public sector. If IT doesn’t improve, the business will seek alternatives 42% of respondents confirm that business units often go around IT in order to source technology or business applications directly

7. Australia Versus Regional Perceptions “On a scale of 1 to5, how strongly do you agree with the following statements?” Base: 2,785 senior IT and business decision makers across APEJ & 268 in Australia; Source: Forrester custom research prepared for VMware, October 2013

8. It’s Up To IT Organizations To Embrace The Change Current perceptions of IT remain positive in Australia 67% of respondents believe IT is viewed as a change enabler and source of business value to the organization 38% believe the perceived credibility, influence and power of the CIO is increasing, with only 12% believe it’s decreasing (although it’s worth noting that this is nearly double the regional average of only 7%)

9. Business Views Of IT Are Positive Across AP “On a scale of 1 to5, how strongly do you agree with the following statement: IT is seen as a change enabler and source of business value to the org?” Base: 2,785 senior IT and business decision makers across APEJ; Source: Forrester custom research prepared for VMware, October 2013

10. Perceptions Of CIOs Are Also Positive “How would you rate the perceived credibility, influence and power of the CIO within your organization?” Base: 2,785 senior IT and business decision makers across APEJ; Source: Forrester custom research prepared for VMware, October 2013

11. Cloud Computing Is A Change Enabler For IT The journey won’t be easy 41% of Australia organizations sill manually provision applications and/or services to the business Among major technology trends, Australia respondents believe cloud computing or ‘as-a-service’ approaches will have the greatest impact on their organizations over the next 2-3 years

12. IT Is Embracing The Change • “On a scale of 1-5, how significant an impact will each of the following technology trends have on your organization over the next 2-3 years?” Base: 2,785 senior IT and business decision makers across APEJ; Source: Forrester custom research prepared for VMware, October 2013

13. Hybrid Cloud And SDDC – The New Normal 65% of Australia respondents believe that cloud and ‘as-a-service’ approaches will help the organization become more efficient and operate with leaner IT resources But 63% still have concerns deploying strategic or mission-critical applications to a public cloud Hence 70% of Australia respondents expect investments to center on private or hybrid approaches over the next 12-18 months, versus only 14% focused on the public cloud Cloud-related skills and project experience are key to this, since 62% of respondents believe that if they don’t improve their skills in areas like cloud enablement and software-defined data centers, they risk falling behind their peers professionally

14. Michael Barnes 61 (0)437 598 768 mbarnes@forrester.com @mb_analyst