Welcome to the Huddle’s presentation: Death of the enterprise or Re-birth of IT department. Originally presented by Zuzanna Pasierbinska-Wilson, VP Marketing at Huddle at Internet World, May 2011.
First a quick introduction. For those who don’t know Huddle is the leader in cloud collaboration and content management. Effectively, we help you manage projects, files and people securely, in the cloud. We’re a global company with offices in London and San Francisco. 85,000 companies across 180 countries are currently using Huddle. Our customers include Kia, Disney, HTC, PWC, BBC, Post Office and many more.
So, why the death of the enterprise? How will it die, exactly? Of old age? With the decay of time? We believe it will die battle. Because ladies and gentlemen, we are on an avoidable collision course. On a collision course where an unstoppable force – business community is about to reach an immovable object – the IT department.
Many of you must’ve heard a phrase: consumerization of IT. It’s effectively what is driving the explosion of Enterprise 2.0. and is contributing to the death of the traditional enterprise model. In their personal lives, people have the ability to communicate, share information and run personal projects using a plethora of readily available and super easy to use applications and software. If they can buy an application on their smartphone with a single tap, they will expect the very same power and simplicity to be available in the workplace. Younger generations in the employment are no longer happy with being dictated to by a central IT department, people want to manage their own work, organize their own content and use the tools that they feel are the best for the job. The new breed of business community wants their requirements to be fulfilled as quickly as in the consumer world.
The best example of this trend is the explosion of mobile devices in the workplace. There are few business folk who do not use a personal iPhone or BlackBerry to check work emails or to communicate with work colleagues. Think about every single time you did some work on your home computer. Usage of personal devices for work it’s so engrained in our lives we don’t even spare a thought. But someone does. That someone is your IT department.
The consumertization of IT is growing. IDC recently conducted a sur vey of IT consumerization trends. The survey found that consumerization is well underway - among the findings is the fact that 95% of the workers who responded have used technology they purchased themselves for work. IDC notes that there is a disconnect between employees and employers about how consumer technologies are used in the enterprise.
How big is this disconnect? The IDC’s findings show that it’s very much the case of the left hand right having no idea what the right hand is doing. For instance, the employers don't seem to know how many or what consumer technologies are in use in their workplace. At all. Workers report using consumer devices at twice the rate employers reported. At the same time, workers are dissatisfied with the level of support IT provides for consumer technologies. More than half of workers believe that can store personal data on the company network, overestimating support from the employers. IT must be having a heart attack by now. And there’s of course the issue of social media. Although employers want to increase the business use of social networking in the next year, few are integrating those technologies into existing enterprise applications. Many organizations (40%) lack guidelines for social media use in the workplace. How many in this room actually have guidelines for social? Finally, and no surprise here, tech savvy workers want to work for tech-savvy employers, but only about 1/3 of employers recognize this. These two worlds will eventually collide.
Business community want the apps they will help them work efficiently here and now. The IT department is putting out a tender and takes 3 months to decide on and implement a technology they feel comfortable with: which gives them adequate level of control and proved security levels. They opt for traditional systems, because it’s safe. No one gets fired for buying Microsoft. I share Accenture’s sentiment: IT needs to get on with the programme and understand the world is going to be different and will demand a much more transparent and agile method of IT delivery in the future. Single tap rather than a 3 month tender.
The issue of control is at the heart of the enterprise 2.0 debate, but there’s still time to prevent the breakout of open war between the workforce and central IT. And it’s IT that needs to balance the demands for flexibility, fast delivery and openness with security and control.
In a few years the question of whether the cloud is a viable replacement for on-prem technologies will become rhetorical. But Software as a Service and the cloud have truly come of age. And IT’s concerns about security, control, adoption and ROI have to be dispelled. The gap between the business community and IT needs to narrowed. Otherwise, as Accenture points out, business people, armed with a credit card, can and will bypass IT to order the services they want.
To avoid a complete annihilation of the IT department, IT has to give into the cloud. This stuff clearly works: converted IT managers quote: simplified IT management process, improved end-user experience, decreased IT performance challenges, alleviated internal resource pressure amongst the cloud benefits.
And there’s a question of money too. With no set up costs and lower variable costs, cloud-based software wins both arguments.
How secure is the cloud? I can only speak for Huddle. Our cloud-based application has multiple levels of security: physical security: Servers hosted in secure facilities, operated by Rackspace, with restricted access and 24/7 monitoring; network security: servers are hosted behind sophisticated firewalls, with a protected perimeter. We carry out penetration testing on an ongoing basis, and have had formal penetration testing commissioned on a number of occasions by third parties. Finally, application security: access to workspaces and files is restricted, with full administrative control. Then there are certifications, accreditations i.e. SAS70; disaster recovery and encryption. Effectively as secure as a bank.
But what about all the legacy systems that IT has got already in place. These cost an arm and leg to begin with, but due to its low adoption levels, usually cause by a lack of user-friendliness, have become half obsolete or purely hated. There’s no need to rip your existing infrastructure apart. SaaS software such as Huddle, boasts open API and numerous extension which makes it a doddle to integrate into the likes of SharePoint or internal intranet systems.
A few stats. 46% of SharePoint of users use it once a week or once a week. 83% prefer using email instead of SP for collaboration on documents. This shows that simply buying a piece of technology is not enough. The technology needs to be fit for purpose, it needs to be user-friendly. Users of a new system need to buy into the technology. This can only achieved if they are fully trained and supported at all times. Huddle prides itself for having a high if not the highest adoption rates in the industry – 90% adoption rate across the enterprise. Disclaimer: SharePoint is Huddle’s direct competitor. Stats are from ‘How are businesses using Microsoft SharePoint in the Enterprise, Market Survey Update for 2011, by Global 360 Inc.
Government is an unlikely place for the cloud to flourish. Yet, this most conservative of all verticals embraced it with open arms. Huddle is currently being used by 60% of the central government and there are plans to get everyone in the government huddling, so if you’re in gov, watch out for your Huddle invitation. We’re working with MOJ, Home Office, DCMS and Cabinet Office, not to mention numerous local councils. The government should be a blueprint for in what direction an IT department needs to evolve. For instance G-cloud’s vision is to provide political, business and ICT leaders with greatly improved agility, flexibility and choice in the ICT that enables the public sector and to deliver substantial cost savings on both existing and new ICT services. To simplify it: to deliver easy to use, flexible and open software and services faster to the users, at lower cost. And what about Alpahgov, which launched in May? A fantastic initiative where all the information that a citizen might ever want to know is available on a user-friendly, highly searchable and accessible from anywhere web site. If the government can resolve the user/IT conundrum, so can the enterprise.
People are accustomed to using simple, flexible web-based tools to communicate with people in their social lives, and they want this ease of use to be available in the enterprise.
If people have the ability to buy software apps on their smartphones they will expect the same power and simplicity to be available in the workplace. ABI Research has revealed that nearly 8bn apps were downloaded in 2010!
Employers don't seem to know how many or what consumer technologies are in use in their workplace.
Workers are dissatisfied with the level of support IT provides for consumer technologies.
More than half of workers believe that can store personal data on the company network
Even though 95% of employees use self-purchased technologies for work, 70% employers want to buy standardized technologies for them.
IT department is still stuck in a top-down command and control paradigm There is a need for IT to get with the program and understand the world is going to be different and demand a much more transparent and agile method of IT delivery in the future (Accenture)
But it doesn’t have to be a battle… IT professionals need to balance the demands for flexibility and control
SaaS and ‘the cloud’ have come of age IT’s concerns about security, control, adoption and ROI are unfounded
(courtesy of cloudhypermarket.com) This stuff works
COST TO BUSINESS SET UP COSTS NUMBER OF USERS Hardware, software, licensing, consultancy etc VARIABLE COSTS COST TO BUSINESS NO SET UP COSTS NUMBER OF USERS Traditional IT SaaS VARIABLE COSTS (h/t wikibon.org) And saves money too