SHARE



ABOUT THE AUTHOR


Melanie Turek
Melanie Turek is Vice President, Research at Frost & Sullivan. She is a renowned expert in unified communications, collaboration, social...
Read Full Bio >>
SHARE



Melanie Turek | December 02, 2012 |

 
   

Business and Technology Trends: Frost & Sullivan's Annual CXO Survey

Business and Technology Trends: Frost & Sullivan's Annual CXO Survey CXOs appear most concerned about leveraging technology to support new business needs, respond to new regulatory requirements, and allow IT staff to focus on more strategic projects.

CXOs appear most concerned about leveraging technology to support new business needs, respond to new regulatory requirements, and allow IT staff to focus on more strategic projects.

Frost & Sullivan recently published its annual communications and collaboration survey of C-level executives. In the next several weeks, I will post some of the data here. Clients can find several full reports, broken down into subject areas, on www.frost.com. In this post, I will look at some of the initial findings around UC&C trends, planning and budgets.

The majority of CXOs report that their infrastructure and IT operations are relatively inefficient and unable to fully address broader business objectives. They appear most concerned about their ability to leverage technology to support new business needs, respond to new regulatory requirements, and allow IT staff to focus on more strategic projects. Less than one-third of respondents believe that their IT and business strategies are well aligned; only 28% believe that IT is able to effectively meet new business needs; a mere 20% claim that IT staff can effectively focus on more strategic tasks.

Businesses spend as much on maintenance and support costs as they do on new UC&C technologies. The majority of executives expect their UC&C budgets to remain the same over the next two years and beyond. In the next 12 months, some anticipate slightly higher budget allocations, primarily due to anticipated company growth.

Indeed, corporate growth and expansion is the primary reason for any increase in spending on communications and collaboration tools, followed closely by advances in the technology itself. Forty percent cite budget limitations and a reduction in spending as the top reason for any future decrease in spending, followed by the general economic environment.

UC&C budgets, as well as budget allocations for related services, vary somewhat by industry but not very much by company size as a proportion of overall spending. Although maintenance and support costs are relatively similar across companies of different sizes, we see a slight increase in the percent of budget allocated to maintenance and support as company size increases. CEOs have significantly larger influence on UC&C budgets than other decision makers within customer organizations.

As might be expected, the IT/Telecom vertical allocates the highest percentage of the IT budget to communications and collaboration technologies. It is also quick to adopt new technologies and delivery models. Healthcare industries also devote a high percentage of budget toward new technologies.

The retail and financial services sectors allocate the lowest percentage of budget toward communications and collaboration maintenance and support costs. Retail services have been among early adopters of hosted services, which explains their reported lower maintenance costs (as these are associated with premises-based solutions).

Implementing a mobile strategy and leveraging social media in the enterprise and with customers are top of mind for the CXOs in our survey. Businesses must address the influx of consumer mobile devices and the growing use of consumer tools in the enterprise (known as the "consumerization of IT"), and the related security and control issues that this trend poses to IT staff. Providers that can effectively and economically deliver business-grade mobility and social media services and integration can gain significant ground among customers.





COMMENTS



May 31, 2017

In the days of old, people in suits used to meet at a boardroom table to update each other on their work. Including a remote colleague meant setting a conference phone on the table for in-person pa

April 19, 2017

Now more than ever, enterprise contact centers have a unique opportunity to lead the way towards complete, digital transformation. Moving your contact center to the cloud is a starting point, quick

April 5, 2017

Its no secret that the cloud offers significant benefits to enterprises - including cost reduction, scalability, higher efficiency, and more flexibility. If your phone system and contact center are

May 18, 2017
Diane Myers, senior research director at IHS Markit, walks us through her 2017 UC-as-a-service report... and shares what might be to come in 2018.
April 28, 2017
Change isn't easy, but it is necessary. Tune in for advice and perspective from Zeus Kerravala, co-author of a "Digital Transformation for Dummies" special edition.
April 20, 2017
Robin Gareiss, president of Nemertes Research, shares insight gleaned from the firm's 12th annual UCC Total Cost of Operations study.
March 23, 2017
Tim Banting, of Current Analysis, gives us a peek into what the next three years will bring in advance of his Enterprise Connect session exploring the question: Will there be a new model for enterpris....
March 15, 2017
Andrew Prokop, communications evangelist with Arrow Systems Integration, discusses the evolving role of the all-important session border controller.
March 9, 2017
Organizer Alan Quayle gives us the lowdown on programmable communications and all you need to know about participating in this pre-Enterprise Connect hackathon.
March 3, 2017
From protecting against new vulnerabilities to keeping security assessments up to date, security consultant Mark Collier shares tips on how best to protect your UC systems.
February 24, 2017
UC analyst Blair Pleasant sorts through the myriad cloud architectural models underlying UCaaS and CCaaS offerings, and explains why knowing the differences matter.
February 17, 2017
From the most basics of basics to the hidden gotchas, UC consultant Melissa Swartz helps demystify the complex world of SIP trunking.
February 7, 2017
UC&C consultant Kevin Kieller, a partner at enableUC, shares pointers for making the right architectural choices for your Skype for Business deployment.
February 1, 2017
Elka Popova, a Frost & Sullivan program director, shares a status report on the UCaaS market today and offers her perspective on what large enterprises need before committing to UC in the cloud.
January 26, 2017
Andrew Davis, co-founder of Wainhouse Research and chair of the Video track at Enterprise Connect 2017, sorts through the myriad cloud video service options and shares how to tell if your choice is en....
January 23, 2017
Sheila McGee-Smith, Contact Center/Customer Experience track chair for Enterprise Connect 2017, tells us what we need to know about the role cloud software is playing in contact centers today.