Dogfighting communism coal cloud connect chicago final

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Dogfighting, Communism and Coal: Understanding Business Agility and IT Spending in the Age of Cloud

ServiceMesh's Dave Roberts delivered at Cloud Connect Chicago, 2012.

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  • Dogfighting communism coal cloud connect chicago final

    1. 1. Dogfighting, Communism and CoalUnderstanding Business Agility and IT Spendingin the Age of CloudDave RobertsVice Presidentdave.roberts@servicemesh.com@sandhillstrat
    2. 2. Dave RobertsVice Presidentdave.roberts@servicemesh.com@sandhillstrat
    3. 3. @sandhillstrat
    4. 4. Why is cloud important?
    5. 5. “History doesn’t repeat itself, but it does rhyme.” -- Mark Twain
    6. 6. What if your competition embraces cloudcomputing before you do?
    7. 7. Cloud computing is a strategic weapon, for or against you.
    8. 8. Most of your competition will “do it wrong.”
    9. 9. What are the benefits of cloud computing?
    10. 10. 1. Decreased IT spending.
    11. 11. 1. Decreased IT spending.2. Improved business agility.
    12. 12. Is this correct?
    13. 13. What is agility?
    14. 14. What is agility?
    15. 15. USAF Fighter Weapons School, Nellis AFB
    16. 16. Col. John Boyd, USAF
    17. 17. 40
    18. 18. 40 Seconds
    19. 19. Boyd never lost the bet.
    20. 20. Why?
    21. 21. OOD ALoop
    22. 22. OODA
    23. 23. O bserveO rientD ecideA ct
    24. 24. Fast TransientsWorst&Slightly&Be/er&Best&
    25. 25. Lesson:Whoever can handle thequickest rate of change survives the fight.
    26. 26. 1. Small loops (small teams)
    27. 27. 1. Small loops (small teams)2. Communicate high-level intent
    28. 28. OODA( Central( Authority(High3Level( High3Level(Objec9ves( Objec9ves(OODA( OODA( OODA( OODA(
    29. 29. Cloud shrinks the loops involving IT.
    30. 30. How can we best ensure theright resources get to the rightpeople at the right time?
    31. 31. Spectrum of Economic ModelsTop$Down( Bo5om$Up(Command(and(Control( Decentralized(Socialist( Free(Market(
    32. 32. Central Planning
    33. 33. Central PlanningGiven enough inputs and smart people, you can efficiently plan almost anything.
    34. 34. Source:(h*p://kcmeesha.com/2010/02/20/behind9the9iron9curtainshortages/
    35. 35. Source:(h*p://kcmeesha.com/2010/02/20/behind9the9iron9curtainshortages/
    36. 36. Ludwig von Mises
    37. 37. Ludwig von Mises Friedrich Hayek
    38. 38. The EconomicCalculation Problem
    39. 39. The Economic Calculation Problem1. You can never know everything.
    40. 40. The Economic Calculation Problem1. You can never know everything. 2. Things change all the time.
    41. 41. Shortage / Make More
    42. 42. Glut / Make Less
    43. 43. Conclusion:Central planning loses for nation-states
    44. 44. What about smaller organizations?
    45. 45. Thesis
    46. 46. ThesisIndividual firms that allocate IT resourcesusing free-market principles will do better than firms that favor central planning.
    47. 47. Products$sold$at$market$price$ Business$Unit$ Raw$materials$&$labor$ purchased$at$market$price$“Monopoly$pricing$&$ monopoly$money”$ Firms$ IT$Dept.$ Raw$materials$&$labor$ purchased$at$market$price$ Free$Market$
    48. 48. Symptoms of IT Inefficiency: BYOD Consumerization of IT Shadow / Rogue IT
    49. 49. True Free Markets: Multiple suppliers Competition Freedom of choice Competitive failure
    50. 50. Products$sold$at$market$price$ Business$Unit$ Raw$materials$&$labor$ purchased$at$market$price$Market$compe;;ve$ Allow$BUs$to$purchase$offerings$and$pricing$ from$mul;ple$suppliers$ Firms$ IT$Dept.$ Raw$materials$&$labor$ purchased$at$market$price$ Free$Market$
    51. 51. Products$sold$at$market$price$ Business$Unit$ Raw$materials$&$labor$ purchased$at$market$price$Market$compe;;ve$ Allow$BUs$to$purchase$offerings$and$pricing$ from$mul;ple$suppliers$ Firms$ IT$Dept.$ Raw$materials$&$labor$ purchased$at$market$price$ Free$Market$
    52. 52. Cloud delivers the machineryfor accurate, granularaccounting andbilling.
    53. 53. What sort of IT cost reduction should we expect from cloud computing?
    54. 54. What sort of IT cost reduction should we expect from cloud computing?
    55. 55. 1865
    56. 56. When would Britainexhaust its coal mines?
    57. 57. When would Britainexhaust its coal mines?
    58. 58. The Jevons’ Paradox
    59. 59. The Jevons’ ParadoxGreater Efficiency ➡ More Consumption
    60. 60. ?
    61. 61. The Jevons’ ParadoxGreater Efficiency ➡ More Consumption
    62. 62. The Jevons’ ParadoxGreater Efficiency ➡ New ApplicationsNew Applications ➡ More Consumption
    63. 63. Cloud will make individualworkloads less expensive.
    64. 64. Cloud will make individualworkloads less expensive. But you’ll use more, andthus costs will increase in aggregate.
    65. 65. Thank YouDave%Roberts%SVP,%Strategy%and%Evangelism%%Email: % %dave.roberts@servicemesh.com%Web:% % %h>p://www.servicemesh.com/%Company%Twi>er:% %@servicemesh%Personal%Twi>er:% %@sandhillstrat%%

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