Rackspace Hosting reveals online marketing strategies leave IT departments isolated
Released on: March 12, 2009, 5:35 am
IT decision makers are increasingly falling into a "Website
Wilderness" as they fail to align technology with the delivery of
online marketing, according to international research launched by
Rackspace Hosting (NYSE: RAX). The research also indicates that
businesses are not engaging effectively online or aligning formal
objectives with business goals.
The survey investigated the views and future plans of 250 IT decision makers among
eight industry sectors and across several regions - the UK, Northern Europe
(Netherlands, Sweden, Denmark) and South Africa.
According to the study nearly two-thirds (64%) of UK respondents expect to see more
investment in online marketing in the coming year, but almost the same number (65%)
claim they would not be involved in its delivery. The findings were similar across
Northern Europe, where 44% stated online marketing would be a big focus, but 45% did
not expect to get involved in it. Considering 90% of shoppers bought their Christmas
presents online in 2008*, these findings are particularly startling.
As well as the disconnect between IT and the delivery of online marketing, only 20%
of UK businesses and 32% in Northern Europe are investing in blogs and web forums.
This could put businesses at a competitive disadvantage as the use of social media
as a channel to communicate with customers increases in many sectors.
Just over a third (36%) of IT decision makers have formal objectives aligning IT
with business goals, highlighting a disconnect between business strategy and
technology implementation. This number is less in Northern Europe (28%). With so
many options on how technology is delivered to the business, it seems that IT
decision makers are confused by the array of applications they can host, which
include hosting, accounting, finance, email, ERP,
payroll and websites.
Fabio Torlini, marketing director at managed hosting provider Rackspace, said: "The online
ambitions of the marketing departments need to be supported by the technical
expertise of the IT department for the benefit of the whole company. Technology has
evolved in such a way that businesses can have almost any service adapted to support
their marketing needs. So for businesses not to use this to their advantage is
"Marketing leaders must tap into the expertise of the IT department and IT decision
makers become engaged in the marketing strategy. The challenge for IT people is to
look to new ways of working, such as online engagement and hosted applications, to
enhance competitive edge. In particular I would expect to see a review of strategies
in line with the economic downturn. Outdated views of technology and a disconnect
between IT and the wider organisation will present a risk for businesses in 2009. Set against a backdrop of economic uncertainty, making mistakes in IT strategy could
prove costly to repair."
Notes to editors:
* IMRG e-Retail Customer Service (e-CSi) Index, Dec 08
The research was carried out by independent research company, Loudhouse Research,
who interviewed 100 IT decision makers from UK, including IT Directors, IT Managers,
IT Project Managers, Heads of IT, Network Managers, MDs and CEOs.
About Rackspace Hosting
As the world’s leader and specialist in hosting, Rackspace Hosting is changing the
way businesses worldwide buy IT. Rackspace delivers computing-as-a-service,
integrating the industry’s best technologies into a flexible service offering,
making computing more reliable and affordable. A trusted partner to companies of all
sizes, Rackspace enables IT departments to be more effective. Rackspace is
distinguished by its award-winning Fanatical Support, furthering the company’s
mission to be one of the world’s greatest service companies. Rackspace featured in
the top 30 of both the Sunday Times 100 Best companies to work for list and the
Financial Times Great Place to Work Awards, 2008. Rackspace's portfolio of hosted
services includes managed hosting, email hosting
and cloud hosting.
For further information, please contact:
20 Garrick Street
08453 707 024