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Avanade UK CIO Research Reveals How Gaps in Microsoft® Windows XP Migration, BYOD Integration and IT Ownership Issues are Placing Strains on Business Critical Applications
·         Large volumes of unsupported Windows XP applications are a big legacy concern for 80% of CIOs and IT leaders
·         91% of enterprises are at risk from evolving application legacy pain points as BYOD becomes more widespread
·         Accountability for emerging Bring Your Own App (BYOA) trend exposes enterprises to millions of pounds in cost per annum
 
LONDON – February 20, 2013   Avanade a global business technology solutions and managed services provider, today released an independent survey of 200 UK CIOs and IT leaders, revealing worrying trends in enterprise applications for UK PLCs. Specifically, reduced productivity (67%), increased employee frustration (63%) and decreased customer satisfaction (45%) are listed as the top three risks of poorly designed and integrated applications. The study also highlights that these risks are now on the rise due to a large and growing number of unsupported enterprise applications across legacy platforms. Experts at Avanade urge businesses to implement a more effective enterprise application strategy to avert these risks and optimise the true potential of new and existing technologies in the workplace.
 
“Blind spots in application strategy can mount pressure on businesses leading to increased costs and loss of revenue. This survey reveals that the issue has the potential to escalate unless UK enterprises are able to address key pain-points around new and legacy applications, which are no doubt keeping IT leaders up late at night,” said Chris Lowndes, Application Development Director at Avanade UK. “In terms of legacy infrastructure, Windows XP in particular hosts a number of business critical applications at risk today, from those that have operated under the radar of IT, to others seen as too costly to migrate to modern platforms. The emergence of multi-device application environments born from BYOD platforms, are also introducing similar and entirely new legacy risks. Moreover, if businesses are able to find a more holistic approach for application development and maintenance, not only will they prevent future legacy issues but also more confidently adapt business processes to embrace these new mobile and consumer technologies that are transforming the workplace.”
 
With only 14 months to go until the end of Windows XP support, more than half (52%) of enterprises do not have formal plans for how to address what will quickly become a legacy problem – one which accounts on average for 43% of enterprise desktop infrastructures in the UK today. The lack of a business case is cited as the key barrier to Windows XP application migration in 79% of these organisations. Hence large volumes of unsupported applications post-Windows XP are a concern for 80% of CIOs and IT leaders. 91% also say their business is at risk from application platform problems in the move towards multi-device or BYOD environments.
 
 
In a similar manner to BYOD, whereby employees are driving adoption of workplace technology, the survey also looked at the fast emerging trend of Bring Your Own App (BYOA), in which line of business managers are purchasing applications such as Software-as-a-Service that are not directly provisioned by IT. According to the respondents, BYOA is present in over one quarter (27%) of UK businesses today and growing to almost three-quarters (72%) by 2015.  However, with one in three (33%) BYOAs in the enterprise are already unsupported by IT, there is another looming gap in application strategy. 
 
“Regardless of who owns the application, whether it’s the employee or IT department, the challenge for businesses is accountability for that application. According to 94% of IT leaders surveyed, application accountability will intensify their problems with application strategy, and at a cost of £1.8billion per annum to UK enterprises*,” Lowndes added. “Businesses must seek more effective application strategies to help address these and other problems highlighted in the survey. It is important to recognise that it is about tough transformation and execution. For example, when introducing a new application, the first step is to understand why the original application needs improving or changing, and the value this will deliver to the organisation. It is then important to assess this against any remediation effort, and the impact of a new application. Only then can a decision be made. Real advantage comes in having the ability to make the assessment process quick, and develop a model for remediation or replacement.”
 
According to the survey nearly half (49%) of enterprises today don’t have a formal application strategy. Avanade is therefore urging businesses to review their existing application estate and aim to develop a more holistic strategy for management and deployment of applications. Not only will this allow businesses to reduce risk and costs but also maximise their investment in both legacy infrastructure and new exciting technologies that can significantly improve employee productivity and customer satisfaction.
 
Ends
 
*According to the survey, the average cost of Application Accountability for each enterprise if left unaddressed is £1.35m per annum. According to the Office of National Statistics, in the UK there 1,340 enterprises with over 1,000 employees (see: http://tiny.cc/wud9qw). Therefore total cost of Application Accountability to UK enterprises is approximately £1.8 billion.

 
About Avanade
Avanade provides business technology solutions and managed services that connect insight, innovation and expertise in Microsoft® technologies to help customers realize results. Our people have helped thousands of organizations in all industries improve business agility, employee productivity, and customer loyalty. Avanade combines the collective business, technical and industry expertise of its worldwide network of experts with the rigor of an industrialized delivery model to provide high quality solutions using proven and emerging technologies with flexible deployment models–on premises, cloud-based or outsourced. Avanade, which is majority owned by Accenture, was founded in 2000 by Accenture LLP and Microsoft Corporation and has 17,000 professionals in more than 20 countries. Additional information can be found at www.avanade.com.
 
About this Survey
This Survey was conducted by independent research company Vanson Bourne. The survey respondents include of 200 IT leaders (CIOs, IT Directors) in large enterprise organizations with over 1,000 employees.
 
Avanade and the Avanade logo are registered trademarks or trademarks of Avanade Inc. Other product, service, or company names mentioned herein are the trademarks or registered trademarks of their respective owners.
MEDIA CONTACTS:
Avanade: Caroline Overholt
+44 20 7025 1098
 
Edelman: Sophie Bloxam
+44 203 047 2036 Sophie.Bloxam@edelman.com  
 

 
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