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Tag Archives: IT as a Service

Taking IT Out of the Shadows

by Barton Kaplan

Wikipedia defines shadow IT as “systems and solutions built and used in organizations without explicit organizational approval…by departments other than the IT department.” It’s been a sore point for central IT organizations for a long time, and judging from the most recent data, it’s only getting worse.

Gartner predicts that by 2015, 35 percent of technology spending will occur outside the central IT organization[1]. In a US$2.7 trillion industry[2], that’s a big number. What’s worse, CIOs consistently underestimate how much the business spends on technology. According to best practices firm CEB, business partners spend almost twice as much on technology as IT estimates[3].

Why is this happening? Recent technology trends compound the prevalence of shadow IT, and putting increased pressure on central IT to keep pace.

  • Business partners have become more tech savvy and are much more willing to take on technology-related activities. From technology evaluation to vendor management, some two-thirds of business executives express a willingness to lead.[4]
  • With the maturation of cloud and XaaS offerings, it’s easier than ever for the business to go around IT to meet its technology needs. And vendors are targeting these business buyers because they typically purchase more and procure faster than IT departments.
  • Across industries, technology is viewed as more critical to enterprise success and competitive differentiation than ever before.
  • As business speeds up and third party providers improve their ease of use, central IT is  perceived as getting even more slow and bureaucratic.

What’s worse, traditional approaches to managing shadow IT simply don’t work anymore. Historically, central IT has reacted to shadow IT in one of three ways:

  1. Police – Attempt to root out and shut down shadow IT. The reality in today’s enterprises, however, is that the vast majority of central IT groups simply don’t have the stature to adopt this approach, or the authority to enforce it. Further, much of this spend is business-sanctioned and viewed as essential.
  2. Ignore – Turning a blind eye to shadow IT isn’t an option either, given the size of the spend and the potential risks to the enterprise of it going completely ungoverned.
  3. Incorporate – Bringing shadow IT into the central IT organization is actively opposed by the business out of fear that it will result in lost agility and innovation. Fifty percent of business technology spending is on innovation, which is three times the size of IT’s innovation budget.[5]

So what should IT do? First and foremost, central IT organizations need to adjust their mindset. The days when shadow IT meant hiding a server under your desk are long gone. Today’s shadow IT has become much more sophisticated and central to the business.

IT organizations need to accept and advise business partners’ experimentation with technology, not resist it. Progressive practitioners who have had success changing their technology relationships with the business are adopting the following three tactics:

  1. Distinguish between healthy and unhealthy shadow IT. At one consumer products company, the IT organization differentiated between “shallow” vs. “deep” IT when determining whether a project should be business or IT-led. This more cooperative approach resulted in a 52 percent increase in IT investments directed at new opportunities.[6]
  2. Change IT’s perspectives on risk. IT’s typical approach to risk is one of mitigation. Less risk is always better. By contrast, business partners look at risk vs. reward tradeoffs. If the reward is great enough, it may be worth the risk. Leading IT organizations are adopting risk management frameworks that capture this more nuanced view of risk.
  3. Improve business perceptions of IT. IT needs to operate at the speed of business and devote more of its budget to innovation. According to VMware data[7], customers who are running IT as a service spend 50 percent of their budgets on innovation vs. an industry average of just 30 percent .

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Bart Kaplan is a business solution strategist with VMware Accelerate Advisory Services and is based in Maryland.


[1] Gartner, Inc. “Predicts 2014: Application Development.” Brian Prentice, David Mitchell Smith, Andy Kyte, Nathan Wilson, Gordon Van Huizen, and Van L. Baker, November 19, 2013.
[2] The New York Times. “Hard Times Could Create a Tech Boom.” Quentin Hardy, November 17, 2012.
[3] Corporate Executive Board (CEB) webinar: “Getting to Healthier Shadow IT.” January 9, 2014
[4] Ibid.
[5] Ibid.
[6] Ibid.
[7] VMware “VMware IT Evolution: Today and Tomorrow – Insight from the VMware 2013 Journey to IT as a Service Study.” August 2013.

How to Keep an IT Professional Happy

by Alex Salicrup

It’s 6:00AM; my alarm clock just went off.  Another day started in a hotel bed hundreds of miles away from home and family. As a consultant, I do this half of the week most weeks, working with my customers. And, my team’s experience is very similar to mine.

We meet this morning, all traveling from every corner of the U.S., to discuss several challenges that two of our clients are facing while making the cultural transition from traditional IT to service providers. Both clients are two of the largest, everyday brands we consume worldwide; both strive to achieve similar outcomes.

The mood in our conference room is passionate, yet full of humor and laughter. Sometimes we have tough days, but as innovators, we are always motivated by the answer yet to be formulated—we are IT explorers. We all believe in what we do and have seen the success that each of us uniquely brings to the problem-solving process.

As a strategist, I could likely secure a lucrative position within a major IT department. I receive emails every week for consultant-, director-, even executive-level roles. I pay no attention to them. Yes,  I endure long separations from my family and heavy travel. However, it’s difficult for me to contemplate leaving a job environment where I get to collaborate with amazing and motivated individuals and have a positive influence on so many organizations. To me there is no greater satisfaction than seeing my customers increase their skills and develop their capabilities to morph into a culture that uses a lot more of their annual budget innovating rather than reacting.

Why do I use myself as an example? Because I am the outcome of a well-aligned service provider. Because my attitude is likely to mirror any employee’s within your IT organization. All IT professionals would love to forge new routes, develop plans, and create innovative ways to forecast and meet or exceed business needs. No one is satisfied with reacting to repetitive requests and remediation.  These tasks still need attention, and there are more effective ways to address them. For many IT organizations, there just isn’t time or in-house experience to change status quo.

Unfortunately, most IT resources are still dedicated to reactive tasks. Many of the IT organizations I work with have tried to move away from this behavior but without the best practices to achieve service-driven ambitions, many stall in spite of their efforts. In the end, I believe the skill to execute is what’s lacking. Few IT organizations systematically tackle transforming their operations by subscribing to a roadmap that embraces the key pillars of a successful service provider.

Three key pillars of a successful service provider include:

  1. A proactive service culture,
  2. Robust processes that drive automation as well as using technical tools and,
  3. The technical skills required to operate the new environment.

Many organizations try, but find it hard to do it on their own. They may be so immersed in their culture that they can’t see the opportunities change will bring. The motivation may also be lacking to get them to the finish line.  This can change with the right focus and, possibly, the right help.

In my experience, it’s a fact that IT employees who embrace and subsequently become part of a service-driven culture enjoy their jobs significantly better—and like me, increase their productivity through efficiency. Over time, they find it hard to let go of those opportunities to innovate. Everyone loves it when a plan comes together! They learn new skills that are less tactical and more strategic. And the attrition rate among service-driven IT organizations is much lower than traditional ones.

I partner with clients to understand their goals and act as a shepherd to guide them in developing these results by constructing long-term road maps with game-changing milestones throughout their journey.  With the right direction and tools, the short-term wins soon amass to reach the organization’s end-state goals.

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Alex Salicrup is an IT transformation strategist with VMware Accelerate Advisory Services.