Mercury Interactive Corporation, the global leader in business technology optimization (BTO), announced the results of Yankee Group's IT Executive Survey on BTO. More than 175 IT executives from mid-size to Global 2000 companies revealed that optimizing the business value of IT with BTO is a strategic priority. The survey confirmed that executives' BTO priorities include:
- Aligning IT and business strategy
- IT Governance
- Optimizing application quality, performance and business availability
Reducing IT costsYankee Group forecasts a rapid 21 percent compound annual growth rate for the BTO market through 2007. Investment in BTO technologies is projected to be $3.3 billion globally in 2004, up 18 percent from $2.8 billion in 2003. Yankee Group projects growth will continue to $6 billion by the end of 2007.
These investment trends are driven by the need to change the status quo in IT. In 2004, BTO projects will focus on optimizing applications and IT processes to reduce inefficiency and costs. Yankee Group research indicates that the definition of BTO will expand in scope over time to transform IT units into more strategic, business-oriented organizations.
"BTO is a hit," said Zeus Kerravala, vice president of application infrastructure and software platforms at Yankee Group. "To achieve maximum benefit from new and existing technology, CIOs and IT executives must shift their thinking from bits and bytes to productivity and profits. BTO takes the necessary first step to align IT performance with businesses' economic success."
The survey found that 60 to 70 percent of current IT budgets are devoted to maintaining existing systems, with less than 30 percent of the IT budget going to new application development activities. IT leaders indicated a strong need for better IT management and governance and a willingness to invest in BTO now. The respondents believed that BTO projects could reduce the cost of application overhead by 10 to 20 percent. Such savings would provide a huge transition of funds for investment in new technologies while improving the productivity of IT organizations. Furthermore, the survey revealed that enterprises that have implemented a BTO strategy have a stronger IT maturity and spend less on maintaining existing systems.
"Optimizing the business value of IT with BTO has become a strategic imperative for CIOs around the globe," said Christopher Lochhead, chief marketing officer at Mercury. "It is time for our industry to shift from making stuff to making stuff work."
Sixty two percent of IT leaders polled indicated that their interest in IT Governance was either high or extremely high and more than half of respondents have already begun implementing IT Governance within their enterprises. Yankee Group concluded that organizations embracing IT Governance as a component of their BTO approach show a progressive stance toward better overall management than those who do not.
Yankee Group's BTO Survey is available on the Mercury site at www.mercury.com.
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