Web Analytics Business News This Week CA Study Reveals Enterprises in Asia Pacific and Japan are Most Impacted by the Application Economy | Business News This Week

Nov 21, 2014

CA Study Reveals Enterprises in Asia Pacific and Japan are Most Impacted by the Application Economy

IN · · Leave a Comment
CA Study Reveals Enterprises in Asia Pacific and Japan are Most Impacted by the Application Economy

94% of Line of business executives face increased pressures to launch new applications faster

CA Technologies (NASDAQ:CA) today unveiled an Asia Pacific and Japan (APJ) study which revealed that APJ enterprises are most affected by the Application Economy, compared to enterprises in the Americas and Europe, Middle East and Africa (EMEA).

More than half of the APJ senior IT and business leaders surveyed (APJ:57%; Americas: 46%; EMEA: 45%) are seeing a significant impact of the application economy on their industry, and 53% (Americas: 45%; EMEA: 35%) are already experiencing the effects on their own organization.

CA TechnologiesWhile enterprises across APJ recognize the impact of the application economy, less than half of the respondents (49%) felt that they are very or highly effective in responding to it. Security concerns (41%) and budget constraints (36%) were cited as the biggest obstacles.

To better cope and meet the new demands of the application economy, enterprises in APJ are taking the following steps:

- Increasing investments by an average of 18% over the next five years

- Acquiring software companies to add development capabilities - 38% have made a software acquisition or plan to in the next year

- Delivering an average of six customer applications in the past year– 42% developed four or more customer applications

The Line of Business (LOB) executives in APJ are also feeling the pressure of the application economy. An overwhelming 94% of them are facing increased pressure to release applications more quickly due to customer demand (58%) and competitive pressures (65%).

Despite the rapid rate of application delivery (average of six customer applications and six internal applications delivered in the past year), only 15% of LOB executives are completely satisfied with IT's speed in delivering new applications or services. As a result, 82% of enterprises surveyed have adopted or are planning to adopt DevOps to increase application delivery.

infographic on survey
“As it was at the advent of the Internet Age where websites became ubiquitous, today, applications have become fundamental to every business that wants to survive and thrive in the application economy,” said Kenneth Arredondo, president & general manager, Asia Pacific & Japan, CA Technologies. “In a hyper-connected region like APJ, applications are redefining customer interactions and spearheading business growth initiatives. This study has shown that IT decision makers in APJ are acting quickly to better respond to customer demands and rapid advances brought on by the application economy.”

The Application Divide in APJ

The study also identified a set of “Leaders” and “Laggards” in the application economy. By embracing the application economy, the “Leaders” in APJ are distinctly outperforming the “laggards” in all key business metrics, creating an application divide in APJ.

According to the study, “Leaders” are growing revenue more than four times and profit more than three times the rate of “Laggards”. “Leaders” are also experiencing more than double of the business coming from new products and services than their “Laggard” counterparts.

“Leaders” in APJ are deploying several technologies and processes in order to survive and thrive in the application economy. Here are some key findings:

- 43%of the “Leaders” have adopted DevOps methodologies and technologies to speed application delivery compared to only 4% of the “Laggards”.

- “Leaders” are spending more on security compared to “Laggards”. One-third of all IT spending is expected to be spent on security in three years by the leaders.

- "Leaders" manage IT as a business and report better overall IT performance. They are far more likely to frequently use software tools to manage IT as a business.

- More than two-thirds (69%) of the "Leaders" a readopting mobility as an enterprise-wide strategy versus 14% of the “Laggards”, with clear evidence of increased customer satisfaction and faster time-to-market.

Survey Methodology

650senior IT and business leaders from financial services, healthcare, manufacturing, retail telecommunications and media / entertainment in six markets in Asia Pacific and Japan, namely Australia, China, India, Japan, Korea and Singapore, participated in the CA Technologies-sponsored study conducted by Vanson Bourne. This is part of a global survey involving nine other countries in the Americas, and EMEA. Click here to download the whitepaper and learn more about the research.


Post a Comment