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gartnergroup entire contents 1999 by gartner group inc all rights reserved reproduction of this publication in any form without prior written permission is forbidden the information contained herein has been obtained from sources believed to be reliable gartnergroup disclaims all warranties as to the accuracy completeness or adequacy of such information gartnergroup shall have no liability for errors omissions or inadequacies in the information contained herein or for interpretations thereof the reader assumes sole responsibility for the selection of these materials to achieve its intended results the opinions expressed herein are subject to change without notice r 08 2141 r mack e purchase strategic analysis report 12 may 1999 it s management how the transition to distributed computing is progressing management summary the sheer complexity of the migration to distributed computing makes it extremely difficult to judge where most enterprise transition projects stand and how well they are progressing however gartnergroup has conducted an extensive study of enterprises and their transition experiences the study inquired in detail about all the important elements of transitions including management issues and technology issues this strategic analysis report summarizes the study findings describes key trends and identifies any unusual or unexpected developments perhaps the most important point revealed by the survey is that management holds the key to transition success although many enterprises in transition often emphasize hardware architecture support and other aspects of it infrastructure they undertake transitions for reasons that go beyond technology above all business issues not technology drive this change the migration to distributed computing has been more complex and slow moving than anyone expected but most enterprises feel that the distributed model better fits today s dynamic business environment to derive a competitive advantage from their transition projects enterprises must concentrate primarily on how to use technology to achieve business objectives in other words enterprises should devote their highest attention to the transition s management problems the study revealed the following about the six major management elements of a transition goals alignment is an important first step in the application selection process and most of the enterprises have an alignment process that delivers acceptable results politics the trend toward democratization of corporate it makes organizational politics an important problem although enterprises in transition address some political issues they often overlook or underestimate others organizational change transitions lead to extensive organizational changes that often reflect the enterprise s effort to redefine itself responsibility for application and user support are returning to the business units served managing skill scarcity with competency centers is still uncommon but remains an effective way to increase the chances for transition success skills planned processes for it skills management and training will be one of the most important elements for successfully implementing re engineered business processes on distributed computing platforms today s tight it labor market demands extra management attention to competitive compensation and benefits and to progressive human resources hr policies formal processes for skills inventory management and technical training are key in any transition plan it s management how the transition to distributed computing is progressing gartnergroup ras services copyright 1999 r 08 2141 12 may 19992 outside help enterprises commonly use external services providers esps and will increase their spending on them however responsibility for contract success begins with the transition planners who must have a clear idea of what activities are most appropriate for external help why help is needed and the benefits the enterprise hopes to gain once established planners must clearly communicate those goals to the vendor reflect them in the contract terms and measure and track them to ensure success external forces the euro and the year 2000 problem are the two largest external forces that enterprises must plan for in their transitions most enterprises have responded to year 2000 with significant initiatives but most enterprises have yet to believe that the euro will affect them significantly the study revealed the following about the five major technology elements of a transition architecture becomes the skeleton on which a transition is fleshed out it provides the basis for conserving scarce resources and makes possible an efficient operation of the resulting it infrastructure total cost of ownership tco studies inevitably point out bloated costs resulting from supporting mixed architectures as enterprises adapt to changing marketplaces by integrating their business processes and reaching out to their supply chain partners over the internet they need a consistent enterprise architectural standard despite resistance architectural standards will become inevitable as enterprises focus on cost and business strategies choosing applications enterprises typically choose a low risk application as their first business process to re engineer and commonly buy the solution from a packaged software vendor however most have not implemented an application architecture and risk making the integration of business processes across multiple vendor products more difficult as complex applications are re engineered in the transition s later stages technology selection transition planners commonly focus on technology but this shortsighted approach minimizes the importance of having correct business alignment it standards and application selection processes a successful transition requires a process for selecting technologies that balances all of these elements operations is often underestimated most is organizations maintain centralized control over the management and operation of the it infrastructure but the complex undertaking also requires management tools to simplify labor intensive activities and reduce costs to plan an operations strategy enterprises should consider cultural change and complexity as well as technology end user support an effective help desk becomes especially important in a transition as integrated enterprise applications become more common help desk roles shift to business units and their users enterprises should implement a number of best practices to assure success e g customer surveys service level agreements slas a quality manager service quality and performance metrics it s management how the transition to distributed computing is progressing gartnergroup ras services copyright 1999 r 08 2141 12 may 19993 contents 1 0introduction 7 1 1the study 7 2 0a summary of the transition study findings 7 2 1why are we doing this 7 2 2how is the transition going 11 3 0the management issues 15 3 1economics 15 3 2a perspective on politics 18 3 3extensive organizational change 22 3 4the skills dilemma 26 3 5using outside help 30 3 6external forces 34 4 0the technology issues 37 4 1architectural standards 37 4 2choosing applications 40 4 3technology selection 44 4 4don t forget operations 49 4 5end user support 52 5 0summary and conclusion 55 appendix a acronym key 57 it s management how the transition to distributed computing is progressing gartnergroup ras services copyright 1999 r 08 2141 12 may 19994 it s management how the transition to distributed computing is progressing gartnergroup ras services copyright 1999 r 08 2141 12 may 19995 figures figure 1 overview of respondent demographics 7 figure 2 transition experience 8 figure 3 major business issues driving the need for it transition 8 figure 4 major information technology issues driving the need for transition 9 figure 5 organizations or groups driving the need for it transitions 10 figure 6 status of transition by stage 11 figure 7 transition status vs expectation 12 figure 8 most difficult elements of transition 12 figure 9 elements that respondents would have done differently 13 figure 10 transition elements that were easier than expected 14 figure 11 transition elements that respondents feel they did well 14 figure 12 total cost of ownership analysis 16 figure 13 business benefits analysis 16 figure 14 justifying infrastructure costs 17 figure 15 managing distributed assets 17 figure 16 relationship with users 19 figure 17 how politics are handled compared to other is organizations 19 figure 18 presence of an executive sponsor 20 figure 19 influence of constituencies driving transitions 20 figure 20 how it decisions are being made 21 figure 21 communications processes 22 figure 22 how much organization change 23 figure 23 the most significant changes 23 figure 24 application development responsibility 24 figure 25 help desk responsibility 25 figure 26 skill management with competency centers 25 figure 27 most important competency center skills 26 figure 28 skills availability and impact on it transitions 26 figure 29 it transition skills in short supply 27 figure 30 severity of various personnel issues 28 figure 31 status of it skills management processes 29 figure 32 formalized training programs in place 30 figure 33 training delivery now and in the future 30 figure 34 use of external services providers in it transitions 31 figure 35 portion of it budget spent on esps 31 figure 36 portion of specific activities assigned to external services providers 32 figure 37 reported benefits from external services providers 33 figure 38 difficulties with external services providers 33 it s management how the transition to distributed computing is progressing gartnergroup ras services copyright 1999 r 08 2141 12 may 19996 figure 39 year 2000 compliance status 34 figure 40 year 2000 experience 35 figure 41 greatest year 2000 difficulties 36 figure 42 the effect of year 2000 on transitions 36 figure 43 architecture presence 37 figure 44 architecture importance 38 figure 45 architectural compliance 39 figure 46 key architecture elements 39 figure 47 it goals alignment process 40 figure 48 it goals alignment results 41 figure 49 portion of mission critical applications moved to distributed computing 41 figure 50 source of mission critical applications 42 figure 51 presence of an applications architecture 43 figure 52 sequence of applications moved 44 figure 53 use of a buy list 46 figure 54 simplification of technology as an enterprise strategy 46 figure 55 plans for mainframes 47 figure 56 estimated time of removal 48 figure 57 server workload distribution 48 figure 58 server workload distribution pro and con mainframe 49 figure 59 operations as an element of transition planning 50 figure 60 distributing operational control 50 figure 61 automating operations tasks 51 figure 62 difficult aspects of operations transition 52 figure 63 help desk presence 53 figure 64 help desk responsibility 53 figure 65 end user support best practices 54 figure 66 help desk services 54 figure 67 help desk support ratios 55 it s management how the transition to distributed computing is progressing gartnergroup ras services copyright 1999 r 08 2141 12 may 19997 1 0 introduction the migration to distributed computing is extremely complex and few is organizations have completed it nevertheless the migration from a mainframe centric model to combinations of client server internet intranet network computers and related forms of distributed computing is pervasive above all business issues not technology drive this change during the past year or so gartnergroup analysts have traveled throughout the united states europe and south america to discuss the transition a poll of attendees at those sessions revealed that although virtually everyone was in some stage of transition to a new computing model most were uncomfortable with the process and felt they trailed the rest of the industry despite anecdotal evidence that the industry as a whole was not as far along in the transition process as many had expected little research had been done to prove this point or to analyze why to better understand the problems and strategies of transition gartnergroup launched a multiclient study of more than 30 enterprises in april 1998 1 1 the study comprehensive in scope the study consisted of more than 90 in depth questions that probed the cultural political economic and technical issues of it migration built around the stages and elements of a transition model that gartnergroup published in 1997 see transition strategies assessing transitions a stalking horse tv 000 297 21 january 1997 these questions provided valuable information on how different enterprises deal with a common challenge this report explains the results and implications of what our respondents reported study participants came primarily from north america and spanned 17 different industries and included a wide variety of sizes see figure 1 two thirds of the respondents represented the entire enterprise the rest came from independent divisions departments or business units of a parent enterprise e g a product division of a manufacturing company or the judicial branch of a state government averagemedianlowhigh enterprise size employees 10 300 3 020 135100 000 annual revenue 2 1b 580m 50m 30 6b or equivalent is organization size personnel 200 75 2 1 400 annual budget 35 9m 12 5m 250k 220m or equivalent user devices supported 5 085 2 200 36 25 000 source gartnergroup figure 1 overview of respondent demographics 2 0 a summary of the transition study findings 2 1 why are we doing this despite the transition s overall complexity and organizational changes it forces business imperatives drive enterprises to implement a new it computing model not surprisingly only a few enterprises have completed the transition to distributed computing see figure 2 these were smaller enterprises with competent users e g research scientists and a modest number of business applications to migrate by it s management how the transition to distributed computing is progressing gartnergroup ras services copyright 1999 r 08 2141 12 may 19998 contrast some respondents did not feel they were in transition they felt that the mainframe centered computing model suited their needs and that their users were happy with the services they received however most respondents were in some state of migration to distributed computing and most did not find it easy only a handful reported that the change proved less troublesome than past transitions almost 60 percent felt that this migration involved more turmoil than other migrations one half of those considered it the most dramatic it upheaval they had ever experienced clearly this data warns that most enterprises will find the move to distributed computing complex and difficult enterprises cannot underestimate the difficulties and must plan for them carefully and realistically not in transitionless than 5 in transition less turmoil than in the past 10 in transition same turmoil as in the past 26 in transition more turmoil than in the past 29 the most dramatic transition ever experienced 29 completed our transitionless than 5 percentage of responses state of transition source gartnergroup figure 2 transition experience many it professionals wonder if the move to distributed computing is so difficult why do so many enterprises undertake it to answer that question gartnergroup asked respondents to identify the major business and it issues driving the change respondents could provide up to three drivers in each of the two categories and do so in their own words the study did not give them a list of predetermined answers figure 3 summarizes the business driver results after we grouped responses into common topics percentage of business driversresponses react to changing market conditions and competition more readily 20 faster easier access to business information and data 19 cost of business processes and it development 9 speed to market of business products and services 8 year 2000 compliance 8 inflexibility and stability of existing systems and processes 8 accommodate corporate acquisitions and restructuring 5 accommodate business growth and expansion 4 other 19 source gartnergroup figure 3 major business issues driving the need for it transition the first driver reflects today s changing business environment respondents simply felt that legacy systems and the associated application development ad processes could not respond as readily to market dynamics as distributed technology models the exact nature of business changes varied by industry and enterprise but they commonly included the work force s mobility and geographical dispersion governmental changes and deregulation electronic commerce supply chain integration and it s management how the transition to distributed computing is progressing gartnergroup ras services copyright 1999 r 08 2141 12 may 19999 increased competition particularly in global markets a close second on the list and related to the first point was the question of information and data access respondents felt that distributed computing offered more help in improving the ease speed of access dissemination and sharing of information across and outside the enterprise reducing costs came third and included the cost of business processes as well as the cost of it services to support those processes e g ad and legacy system maintenance three items tied for fourth time to market year 2000 compliance and the viability of older systems and processes speed to market encompassed concerns over the faster delivery of customer orders reduced product development life cycles and similar elements year 2000 worries extended to business processes and the retirement of legacy systems in addition several respondents expressed particular concern that nonmainstream vendors would soon stop supporting their older technologi
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