Press Release

Almost two-thirds of British industries have high growth ambitions, but 94% confirmed Brexit has impacted IT decision making

Despite the ongoing market uncertainty, 90% of organisations
expect to grow in the next 10 months

 

Core News Facts
1. 94% of British enterprises confirmed that Brexit uncertainty has impacted IT decision making
2. 90% consider how close the cloud hosting their applications is to their users
3. 60% of British organisations are proactively investing in digital transformation to stay ahead in the changing market
4. On average UK businesses will move 46 % of IT infrastructure to the cloud in the next 10 months
5. 58% of UK CIO’s admit that the changing political climate is their biggest concern
6. 40% of UK CIO’s have put IT plans on hold as they ‘wait to see’ what happens with Brexit

 

London, UK – 10 July 2017 – Interoute today announced the results of a survey of 120 IT leaders in the UK revealing that 90% of British enterprises remain ambitious for growth in the next 10 months. Overall, 27% take conservative view of growth, while 63% of British organisations anticipate high growth, despite a market dealing with the impact of Brexit, dynamic technology change and global political uncertainty.

The survey, ‘Transforming for Success in a Changing World’, which was commissioned by Interoute, the UK headquartered global cloud and network provider, reveals how senior IT leaders plan to transform for success. Most UK CIO’s (94%) confirmed that Brexit has impacted their IT decision making and nearly 60% see uncertainty around the changing political environment as the single biggest challenge to achieving their digital Transformation objectives.  On top of this is the unsettling view held by 52% of the IT leaders surveyed, that there is a the “lack of direction and consensus from the c-suite” at a time when clarity is most needed.

There is a positive reaction to change though as almost 60% of organisations are making technology infrastructure decisions that allow them to respond to the uncertain environment and remain competitive. Although 40% are adopting a ‘wait and see’ approach.

Other key findings include:

  • 90% consider how close the cloud hosting their applications is to their users
  • 58% cite the changing political climate as their biggest challenge when making decisions
  • 35% are making technology infrastructure decisions to support change
  • 24% are pursuing digital transformation initiatives that will help drive competitiveness
  • 23% have cancelled at least one digital transformation project
  • 18% are cautious about change, putting on digital transformation budgets on hold for now

Matthew Finnie, CTO at Interoute commented, “This study proves that most British enterprises are proactively taking technology decisions and are prepared to pivot quickly to remain competitive in the face of a changing uncertain market. It also illustrates how technology planning has taken a strategic shift. Digital transformation is about ensuring an organisation is flexible enough to react to geo-political and market changes as well as delivering customer and business value. This requires a ICT infrastructure that enables, not inhibits change. Rather than handcuffing an organisation to a specific vendor or inflexible infrastructure choice. It is about ensuring the platform and provider you choose gives you the freedom to change and adapt as the market does.”

Connecting the old with the new
Businesses driving towards different goals are contending with different legacy systems and internal infrastructure challenges to remain competitive whilst managing costs and ensuring stability. The key objectives driving digital transformation strategies of British business are:

  • Modernise IT systems to improve operations and reduce costs (42%)
  • Enhance experiences offered to employees (42%) and customers (38%)
  • Globalise IT infrastructure to leverage skills from outside of the UK (38%)
  • Foster innovation to drive new revenues and competitive advantage (35%)

Moving to the Cloud
In response to changing demands, businesses are migrating a significant proportion of their IT infrastructure – 46 per cent on average – to the cloud over the next 10 months. When it comes to choosing which cloud is best for applications, 90% highlighted the need for physical proximity between cloud-based applications and their customers.  And, almost three quarters (73%) stressed the importance of full integration between the cloud and network. Yet, organisations with a cloud strategy are divided over how firm a cloud mandate should be:

  • 28% mandate cloud-first regardless of challenges and cost implications
  • 28% understand that when an application requires re-factoring, reverting to a hybrid strategy makes sense
  • 22% have the flexibility to decide the best infrastructure option for each application
  • 21% appreciate that when an application requires a lift and shift, it makes sense not to migrate to the cloud

-ENDS-

 

About the Research
The survey, ‘Transforming for Success in a Changing World’, was carried out independently by Coleman-Parkes Research on behalf of Interoute in March 2017. The findings include feedback from 120 senior IT decision-makers in UK-based companies with global revenues of between £200M and £5 billion. It explored the challenges facing technology leaders, and how they were embracing digital transformation while reacting to wider geo-political and economic influences outside their control.