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Edge Strategies / LogMeIn BYOA Research

Study Finds IT Pros Grossly Underestimate Scope of Employee Introduced Apps

BOSTON, April 18, 2014 (GLOBE NEWSWIRE) -- A recent survey by LogMeIn, Inc. (LOGM) and Edge Strategies reveals that IT professionals significantly underestimate the scope of the bring-your-own-app (BYOA) trend in their workplace. Designed to explore the usage and adoption of employee-introduced cloud applications in the US, Canada, the UK, Ireland, Australia and New Zealand, the study delves into the types and numbers of applications entering the workplace, as well as IT's response to managing and controlling this influx. As indicated in the study, while approximately 70% of companies surveyed reported active use of employee-introduced apps in the workplace, IT professionals surveyed estimated the number of these apps to be 2.8 apps per organization. However, subsequent data collected from similar-sized organizations via app discovery technology found that the average number of BYO apps to be closer to 21 per company -- a staggering 7 times more.

Conducted by Edge Strategies on behalf LogMeIn, the survey explores the impact of BYOA, a trend at the intersection of two of the biggest IT industry transformation drivers: the pervasive rise of cloud offerings and the consumerization of IT. Survey questions covered popular apps and categories like cloud file sync and share apps (e.g. Dropbox, Cubby, Google Drive), collaboration apps (e.g. Skype, join.me, Trello), productivity apps (Evernote, Google Apps for Business/Google Docs), as well as social apps and remote access apps. Survey respondents included IT professionals, outsourced IT service providers and non-IT business professionals sourced from organizations ranging from SMBs to mid-sized companies to large enterprises. IT professionals, in particular, were also asked about their own BYOA policies, current approaches to management of these apps, as well as their role in evaluating, influencing, and securing such apps.

Key findings from the report include:

-- IT significantly underestimates the number of employee introduced apps in the workplace: While IT reported an average of 2.8 BYO apps in their workplace, subsequent app discovery data shows the average to be closer to 21 apps -- a 7X disparity

-- BYOA is pervasive and expected to grow: Approximately 70% of companies report that employee-introduced apps are actively being used in the workplace, and 42% of respondents expect BYOA to grow significantly over the next 5 years

-- SMBs report higher prevalence of BYOA: For companies between 11-100 employees, BYOA was even more acute, with 81% reporting active use of employee introduced apps

-- Nearly 2/3 of BYO apps are introduced and used despite existing IT-provided solutions already in place: Empowered employees are choosing their own preferred solutions, as more than 64% of employee-introduced apps are being used in place of existing company applications meant to serve the same need

-- Consulting IT no longer the norm ... and it's worse than IT believes: When asked whether IT is consulted on the decision to introduce apps into the workplace, 56% of IT pros reported that they were consulted. Employees had a much different answer, with only 45% saying they actually consulted or informed IT before introducing cloud applications into the workplace

-- Employee introduced apps overtaking -- or have overtaken -- IT provisioned apps in key categories

  • 58% of all cloud sync and share apps were first introduced by employees
  • 52% of all productivity apps were first introduced by employees
  • 49% of all collaboration apps were first introduced by employees

-- Employees lead, IT follows: Apps originally introduced by employees are often later adopted and/or endorsed by IT for broader use within the organization.

  • 59% of collaboration apps originally introduced by employees are now endorsed by IT
  • 55% of productivity apps originally introduced by employees are now endorsed by IT
  • 41% of file sync and share apps originally introduced by employees are now endorsed by IT

-- Free and unmanaged versions are the norm, even after IT endorsement: Even after IT pros endorse employee-introduced apps, only a very small percentage of those apps become centrally managed.

  • File sync and share apps: 54% of employees use unmanaged free versions; 20% use individual, unmanaged paid versions and only 26% used centrally managed, business versions
  • Collaboration apps: 46% of employees use unmanaged free versions; 25% use individual, unmanaged paid versions and only 29% used centrally managed, business versions
  • Productivity apps: 42% of employees use unmanaged free versions; 42% use individual, unmanaged paid versions and only 15% used centrally managed, business versions

-- Line of business managers take on provisioning lead over IT: Only 1/3 of IT pros report that they handle all provisioning of cloud apps; 67% of IT pros report that they either split or outright concede most cloud app provisioning responsibilities to business owners

-- Security concerns reign. Control a close second: When asked which issues limit their company's adoption or support of BYOA, more than half (54%) point to concerns around data security, and 45% cite a lack of control/management of apps

-- Few IT pros claim to have the policies and management tools to handle BYOA: Only 38% of organizations have a BYOA policy in place and a mere 20% of IT pros feel they are very prepared and have policies and technology in place to mitigate most, if not all, of the security risks associated with BYOA

-- Three IT management profiles/styles emerging around BYOA: While preparedness and management of BYOA remains inconsistent, IT respondents fell into three distinct camps:

  • Active gatekeepers: 30% of IT pros manage BYOA by actively blocking cloud apps from their workplace
  • Strategic facilitators: 29% of IT pros manage BYOA through a combination of analyzing web traffic logs, packet sniffing and/or device monitoring
  • Passive observer: A full 39% of IT pros report that they are neither monitoring nor managing BYOA at all

"The rapid rise of cloud offerings -- along with the consumerization of IT -- is forcing major changes to the way IT operates, and calling into question IT's overall relevance in today's employee empowered workplace. The critical security and management requirements remain IT's primary mandate, and yet IT is increasingly outside of the loop when it comes to app selection and worse, the way data is stored and shared across these apps," said W. Sean Ford, CMO of LogMeIn. "We believe that the role of IT needs to be fundamentally redefined if IT professionals want to regain their strategic voice, and this means reinventing the way they approach the management of apps, devices and data in the BYO era."

Related materials:

Full report: http://solutions.logmein.com/BYOA/managing-applications-in-the-age-of-BYOA-report-part-1.html

Infographic: http://blog.logmein.com/uncategorized/infographic-place-age-byoa

Slideshare: http://www.slideshare.net/LogMeIn/byoa-powerpoint

About the research/methodology:

This survey is part of a series of major research studies recently conducted by LogMeIn that focus on the state of IT management in today's world of independent, "BYO" consumers. The series will focus on three key areas: managing applications, managing devices and managing data.

For this study, we explored usage and adoption of employee-introduced applications within companies worldwide and how this has led to a loss of control for IT managers. We partnered with Edge Strategies to survey IT and non-IT professionals across the world in various-sized organizations, including both LogMeIn customers, as well as an independent panel. Respondents included 1,390 IT and Non-IT professionals in the US, Canada, the UK, Ireland, Australia and New Zealand.

About LogMeIn, Inc.

LogMeIn (LOGM) transforms the way people work and live through secure connections to the computers, devices, data, and people that make up their digital world. The company's cloud services free millions of people to work from anywhere, empower IT professionals to securely embrace the modern cloud-centric workplace, give companies new ways to reach and support today's connected customer, and help businesses bring the next generation of connected products to market.

LogMeIn is headquartered in Boston's Innovation District with offices in Australia, Hungary, India, Ireland, and the UK.

LogMeIn is a trademark of LogMeIn in the U.S. and other countries.

PBX/VOIP Cloud transition opens UC opportunities

Challenges in Evolving to a UC-focused Business Model

UCaaS is inherently more complex and less understood than email. Success as a provider of UCaaS, whether or not full voice and PBX capabilities are included at the outset, requires changes in marketing, sales and support process:

Know Your Installed Base: Capturing data and Identifying well-qualified customer opportunities is essential given the increased cost of sales.

Implement a consultative sales process:  Asking key questions, providing customer education, helping the customer understand the benefits to their particular business, are essential. Lync is still primarily a "push" product that requires business-oriented sales teams who can fully demonstrate and explain the customer benefits of Lync and how it will fit into the customers' environment.

Align Sales Incentives: Adjusting the incentive programs for sales personnel to allow for a longer sales cycle and a gradual adoption path.

Attract Partners: Lead generation through referral and reseller programs with traditional IT Solution Partners who do not provide UCaaS can be effective.

Develop a Phase-in Program: Potential customers have needs for a variety of different service components for subsets of employees. Offer to activate, and train a subset of employees within a customer organization who will quickly realize the benefits and act as internal advocates.

Leverage Microsoft Resources: Take full advantage of Microsoft Corporate and field resources and marketing campaigns.

Understand the Competition: Know how to position Lync versus Skype, Google, WebEx, and GoToMeeting (and others based on region). Most potential customers are using one or more of these products. Present the unique competitive differentiation provided by full integration with Active Directory, Outlook and other applications.

Effective GTM Strategies: Service Providers

GTMSPNew 
Key considerations include:
  • What are their standards and policies? How well are they documented? What metrics do they use for self-evaluation? How well do they meet them?
  • How robust is their Enterprise Security? Are they using the right controls, not only for electronic penetration but for physical security- building access, etc.?
  • Does the Service Provider staff have the relevant skills to meet the SI need?
  • How well can they meet the Service Level Agreements: Proof points, Redundancy, clear escalation path?
  • Do they provide visibility into the performance of the Infrastructure?
  • Can the demonstrate value- the benefit vs. the cost. (Not just the lowest cost.)
  • What is the quality of the Management Interface?
  • What is their proximity? (Potentially important.)
  • How flexible are their offers? What control do they allow for the Solution stack?
  • What is their reputation?
  • How strong is their account management? Do they provide dedicated or named technical managers as part of a premium service package? How accessible and responsive are they in the even that something goes wrong?

Mid-Sized Cloud SI and Service Provider Strategy

Objective

Midsized Systems Integrators will play a critical role in influencing and implementing Cloud Solutions. Edge Strategies was engaged by a global provider of public/private/hybrid Cloud software and services, to deliver insight and recommendations for Go-To-Market strategies engaging this essential channel. The project focus:

  • What Cloud products and services are currently being provided by Midsized?
  • What key trends are driving changes in their business models?
  • What are the key factors determining their selection of Cloud IaaS/PaaS/SaaS partners?
  • How do they prefer to engage?
  • Which SIs provide the highest potential return? What specific steps can the client take to build effective channel relationships with these firms?

 

Midsize Cloud SI

Method

Edge Strategies conducted Qualitative and Quantitative research with a broad range of mid-sized Systems Integrators, including:

  • There is no information about methodology, N, etc. in the “SI and Service Provider Opportunity” deliverable.

Results

Edge Strategies segmented the competitive landscape into several distinct but overlapping business models, each with key differences impacting potential Cloud service provider relationships.

A detailed analysis was developed for each segment:

  • What products and services did they traditionally offer? How is this likely to change with the Cloud?
  • What is the typical size and scope of their engagements?
  • How many Clouds providers will they work with? What are their critical selection criteria?
  • How do they prefer to engage? What balance of flexibility and control do they expect from a Cloud provider? What are their support/SLA expectations? How price sensitive are they?

These and other factors were mapped against the Client’s current and planned product and services offerings to create a set of specific recommendations for identifying partners and building effective and profitable channel relationships.

Increased Market Share Through Research


Competitive Analysis graphic

 

Objective:

A global IT firm's product, marketing and sales teams need to understand the market positioning, strengths and weaknesses of competitor Real-Time Charging (RTC,) Data Retention (DR) and Customer Revenue Management (CRM) portfolios.

Edge Strategies’ Response

  • Conducted secondary and primary research, including  more than 20 in depth interviews with service providers and suppliers responsible for the solution areas.
  • Mapped supplier solution framework to customer requirements and analyzed competitor strength, weaknesses and market positions within this framework.
  • Provided findings and key differentiators against new solution framework.
  • Developed parallel solutions frameworks for RTC, CRM and DR offerings.
  • Recommended solutions to address portfolio gaps and highlighted key areas of differentiation.

Result

The project results were distributed through internal Webinars and one-on-one briefings to arm sales and marketing staff with competitive tactics. This enabled account teams to advance sales through improved competitive differentiation.  Deliverables were also usd by product marketing managers to strengthen solution value propositions through in marketing collateral.

 

Retail Channel Partner Strategy

Objective:

A global IT supplier needs to generate insights and approaches for a retail channel go-to-market strategy.   Edge Strategies research focused on the following key questions:

  • Which retailers have the potential to be the best partners?
  • Which products to sell through SMB retailers?
  • What retailer programs should our client develop to to help its retail channel become most successful with their products and services?

Retail Case Study

Method:

 Edge Strategies conducted quantitative and qualitative research with customers and channels:

  • Retailer profiles and insights were generated via secondary research followed by in-depth telephone interviews with executives (director and VP level) at each retailer with responsibility for their technology line of products and services
  • Interviews with 300 Small Business Customers to understand their needs, expectations and preferences

Results:

Our client selected several key retail chains on each continent to work with.  Our recommendations included:

  • Which retail business models will work best in the evolving Cloud Services markets
  • Which Services are most appropriate to offer through the retail channel
  • How to train their personnel
  • How to help their retail channels partner with third party integration partners to deliver complete solutions to SMBs
  • Programs designed to improve the complete customer experience for Small Business Customers

CIO Perspectives on Hybrid Clouds

Objective:

A global supplier of IT technologies engages Edge Strategies to resolve Cloud computing perspectives and plans regarding Cloud computing of CIO/IT Executive responsible for Data Centers in major firms in the US and Europe. 

The focus of the research:

  • The paths they intend to take to Data Center Cloud adoption, including business and technical challenges
  • The major IT vendors considered to guide and support their adoption process
EdgeHybrid

Methodology:

Edge Strategies built insights and recommendations through the following:

  • Identified and recruited target CIO/IT Executives responsible for data center operation and technology/supplier selection in major firms in US and Europe. (Including Coca Cola, Raytheon, Humana, Deutche Bank, Boeing)
  • Conducted 30 online surveys with 30 CIOs/IT Executives; in-depth, one-on-one interviews with 12
  • Integrated primary research with industry data and secondary research

Results:

Detailed findings included:

  • The range of varying definitions and attitude toward  Cloud computing, virtualization and the Private Cloud
  • The impact of current technologies, including legacy and server environments,  on the Cloud migration path
  • Perceptions of major vendors, including value propositions and trends
  • These and other findings were the foundation for targeted strategic recommendation to help the client improve customer perception of their capabilities and increase market share.

 

Cloud Service Activation

Objective:

Increase Activation and Adoption Rates for Telecom Service Providers and Mobile Operators for SMB customers. 

slide9

Service Providers are beginning to offer business-class Cloud Services to their SMB customers, but they face many challenges. Most important of these is getting customers to activate and actively use these services. 

On behalf of several major Telecom Service Providers in Europe, Edge Strategies developed a methodology to help them understand and deal with the challenges of selling, enabling and getting customers to full adopt complex services.  This was particularly true of services involving email, Domain and Data Migration. 

Methods: 

To  address this challenge, Edge Strategies used and continues to use three primary methodology's: 

  • Analysis of Best Practices of the Most Successful Cloud Service Providers  
  • Extensive research with Telecom Providers' customers who succeed or failed in the adoption/activation process 
  • Operational analysis of existing process within the Telecom Service Provider Organization 

Results: 

Major Telecom Service Providers in US, Europe and Asia are adoption Edge Strategies'  methodology's strategies and recommendations for maximizing adoption of business class cloud services for small and medium business. 

Some operators are already indicating: 

  • higher activation rates 
  • reduce churn 
  • Improved Customer Experience 

Application Marketplace

Objective:

Build a "best in class" Developer Marketplace for Next Wave Developers. This required understanding two critical factors: how they create new applications; and what would attract them to build for our client's environment. 

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Approach:

  • Built a database of Next Wave web developers using a web crawling system to identify application characteristics
  • Conducted interviews with over 100 next wave developers
  • Created a model segmenting New Wave Developers based on their development methodology and technologies

Result:

Created a complete, detailed model of the design and development process for Next Wave applications.

This model was used to design a marketplace to attract Next Wave Developers.