CIOs see Google as more innovative than current enterprise vendors

CIOs see Google as more innovative than current enterprise vendors

Summary: The usual enterprise tech vendor lineup had innovation influence over the last decade, but the next 10 years will be led by Google, Amazon and "other," according to Gartner's 2014 CIO agenda.


ORLANDO — Chief information officers see Google and Amazon being the most influential in enterprise innovation over the next decade with Apple, Microsoft, SAP, Oracle and a bevy of other core vendors looking like last decade's news.

And notably the most influential technology company in the enterprise is dubbed "other." Those takeaways on innovation were outlined in a Gartner presentation on the CIO agenda for 2014 by analyst Dave Aron. The 2014 outlook was based on a 2013 CIO survey.

Aron said that businesses need to "move from a handful of vendors to crowdsourcing and managing more of them." The reality is that today's vendors can't keep up with digitization, said Aron. That point was also noted earlier in the day by Gartner research chief Peter Sondergaard. 

This slide highlights the IT sourcing landscape and how it's shifting.


Perhaps the most notable point in that slide is that enterprises don't see their core vendors being all that innovative in the years to come. These CIOs see innovation coming, but from providers that may be unknown today.

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Aron's agenda for CIOs portrayed IT departments as in flux. Budgets are shifting to other business line leaders, satisfaction is solid with 10 percent very satisfied with IT, 39 percent somewhat satisfied and 21 percent slightly satisfied. Only 7 percent was neutral on IT. In other words, if the IT department had a net promoter score it wouldn't look half bad.

The biggest hurdle for CIOs in 2014 is enabling companies to become digital businesses. And it's likely that this chore will fall to CIOs and business leaders. Why? Less than 10 percent of companies have a chief digital officer or strategist — for now.

"We need leadership that can create the agility to capture the business moments," said Aron. Aron reiterated that CIO influence will ebb and flow and that digital officers will peak and then decline. "The CIO needs to be the digital story teller," he said. 

As for technologies, the 2014 new spending priorities are the usual suspects: Cloud, analytics, mobile, digital marketing and infrastructure.

The infrastructure and data center investment for 2014 reveal that companies are going to be two-speed hybrids using their own gear as well as the public cloud. Think of the approach as agile on one side with more of a methodical approach on the other. One key question: How can CIOs be fast enough without making a mess?

Gartner's CIO survey revealed a quarter have invested in the public cloud mostly for software as a service, but platform as a service and infrastructure as a service occupy sizeable chunks. Fifty four percent of CIOs cited agility as the primary reason for public cloud investments with 14 percent citing innovation and 6 percent saying cost drove the spending.

Nevertheless, few see a day anytime soon when half their business will run on the cloud.

Topics: CXO, Cloud, Enterprise Software

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  • Looks like the right time to buy some "other" stock!

  • Judging by the title of this article....

    I am bracing for the onslaught of WinFan, Google bashing past Glass articles have drawn here at zdNet.

    I have popcorn at the ready....
    • Titles are meant for attention getting

      What I don't understand is how Apple is in this list? Enterprise Innovation? Sorry don't buy that, maybe Consumer Innovation?
      Sean Foley
  • Now that I have had time to read the article...

    I must say that I am impressed that so many CIOs get it!

    They must be finally thinking for themselves and not just following the commercials that say you will look like the coolest CIO on the block if you buy this product.

    The big bet on "other" in the next ten years is exactly I can see where Ubuntu Touch, Google Glass and a whole new generation of NEW products and businesses will emerge and take off.
  • I'm sorry - this statement is patently incorrect based on your own data...

    "Chief information officers see Google and Amazon being the most influential in enterprise innovation over the next decade with Apple, Microsoft, SAP, Oracle and a bevy of other core vendors looking like last decade's news."

    If you look at your own chart - even AFTER the decline (ie: next 10 years) most of the CIO still place Microsoft and Apple at the top (15% of the respondents) - although it brings Microsoft and Google to a tie and still has Apple ahead. Only 3% of them see Amazon as a major player in the next 10 years.

    So the only significant take away here is that more CIOs see Google as a major force for innovation and that there will be three players in the future: Microsoft, Apple AND Google.

    Which is pretty much the common view.
    The Werewolf!
  • As I see it..................

    It looks like CIO's are now doing their own research and NOT relying on golssy adds or the so called leaders on IT.

    As I see it if a product/platform does NOT fit into their model, (current or projected) then DONT spend $$$$$ions on a direction that will amount to nothing.

    Dont listen to hype and your you MUST have salespersons.

    Do your homework......
  • Google is not a technology company.

    Google is an advertising company. (Approx. 95% of their revenue is from selling ads.) They USE tech to gather information so they can target ads better. I would question the judgement of any CIO that would trust their company's data to Google.
  • Next 10 years

    The only reason Google is /predicted/ by some people as leading for the next 10 years is because they have to flaunt pre-production stuff long before it's ready for production. In contrast, Apple generally keeps new products under wraps until they're ready. Samsung's dumb smart watch is a good example of why Apple has to keep mum on products in development--although Samsung fell for the idea and rushed to market with a novel piece of garbage.
  • Can't we all just get along?

    Embellished titles aside, it would be great to have a link to the research used to determine how CIOs [specifically] were surveyed. Projecting past and future "Influence" is not the same as "Innovation." The two are very distinct. One can influence without innovation as well as innovate without influence. It's no surprise that Google is seen as a primary influencer solely based on its reach and visibility to the general public, whereas niche B2B enterprise services are confined to a particular market.

    All things considered, it is interesting (and refreshing) to see the "Others" category jump as high as it did. We can read this in several ways but it appears that "Search" is winning - The CIO space is undergoing a shift in role values. Once reactionary or back-end ICT roles are now becoming thought leaders and emphasizing innovative information solutions. They are now better equipped to seek out custom solutions from otherwise unknown brands instead of defaulting to established legacy organizations.

    Brings up a lot of exciting questions for lesser known market savvy tech providers. It should be an interesting decade with a volatile list of names vying for this top ten list.