Cloudy forecasts and other trends in information technology

Cloudy Forecasts and Other Trends in Information Technology Alan McSweeney

Objectives • To discuss the trend towards cloud computing in the context of current and past trends and forecasts in Information Technology March 15, 2010 2

Agenda • Cloud Computing • IT Trends • Cloud Adoption March 15, 2010 3

Tired of Presentations from Vendors With Pictures of Clouds? March 15, 2010 4

Cloud Computing as a Trend in Information Technology • What are the sources of information technology trends − Surveys by trade bodies of members − Surveys by journals and publications − Statements by analysts − Statements by vendors • Which are real trends and which represent wishful/fanciful thinking or biased? • Which trends are relevant to your organisation, based on operating area, geography, size, state of adoption and use of IT? • What happened to previous trends? March 15, 2010 5

Cloud Definition • The use of a collection of services, applications, information and associated infrastructure consisting of pools of computing, networking and storage resources • Components can be rapidly provisioned, implemented and decommissioned and scaled up or down providing for an on-demand utility-like model of allocation and consumption March 15, 2010 6

What Use Are Trends? • To the business - what is likely to be able to generate revenue through additional sales, access to new markets or channels or save money • To the IT function within an organisation – what new technologies can help in managing IT like a business and delivering value • To suppliers of IT services - what customers will buy, where I should focus my sales effort, how I should restructure my products/services to be relevant, how I should invest in R&D March 15, 2010 7

Business and IT Concerns Regarding Information Technology Information Business Technology Efficiency Business Processes Delivered by IT Business Alignment, Management Systems and Control Internal Cost Cost, Budgeting, Planning Focus Continuity and Availability Reliability, Continuity and Availability Training Personnel Training Technology Changes Competition Vendors and Suppliers External Regulation What Partners and Competitors Are Focus Governance and Standards Doing Business Partners Technical Platforms of New Applications March 15, 2010 8

Relevance of Trends in Information Technology to Business and IT Information Business Technology Will it Reduce IT Management Costs? Will it Save Money? Will it Improve IT Service Internal Management? Will it Generate Money? Focus Will it Enable IT to be More Responsive? External Will Adoption of Trends Assist With Will Existing Systems Be Rendered Competition, Regulation and Focus Governance? Obsolete and Unsupported? March 15, 2010 9

How Much of Trend Adoption Is Driven By? Information Business Technology Everybody Else Is Doing It I Want To Do It So It Appears On My Resume I Like New Technology Internal Vendors Keep Talking About It Focus I Need One Good Idea To Stamp My Mark On The Organisation It Will Solve All My Problems External Focus March 15, 2010 10

Layered View of IT Infrastructure Operations, Usage, Layer 8+ Management, Control, Governance What the Business Layer 7 Applications, Systems and is Concerned With Business Processes Layer 6 Data Presentation, Data Security Layer 5 Communication Layer 4 Connection What IT is Concerned With Layer 3 Network Transmission Layer 2 Storage and Network Addressing Storage Media and Network Layer 1 Signals March 15, 2010 11

Information Technology Concerns • IT should concern itself with trends that − Assist and improve its internal operations − Improve the systems and service IT delivers to the business March 15, 2010 12

Cloud Manifestations Cloud Computing A business model for delivering IT as a service, referred to as IT as a service (ITaaS) Types of Cloud Private Cloud - behind firewall serving applications in their company Public Cloud – shared infrastructure, accessible to general customers with multiple tenants Manifestations of IaaS - Infrastructure as a service Cloud Computing PaaS - Platform as a service SaaS - Software as a service STaaS - Storage as a service BRaaS - Backup and recovery as a service EaaS - Everything as a Service March 15, 2010 13

Cloud Manifestations • Is it all just a pain in the …aaS March 15, 2010 14

What are the Issues Cloud Computing is Trying to Fix? • Up to 85% of computing capacity is unused • 54% growth in storage capacity every year • 70% of IT budget on average is spent on maintaining current IT infrastructures rather than adding new capabilities • How will cloud computing fix these issues? March 15, 2010 15

Migration to Cloud Traditional (Partially) Private Public Application- Virtualised (Internal) (Shared) Based Infrastructure Cloud Cloud Infrastructure Applications Servers Network Storage Relatively Minor and A Major Change Incremental Evolutions March 15, 2010 16

Migration to Cloud • Virtualisation technology enables a shared and a type of service-oriented infrastructure • Creates a pool of computing, storage and network resources that can be shared between applications • Private cloud implementations are effectively more packaged versions of virtualisation technology created by vendors with additional management tools March 15, 2010 17

Cloud Features and Potential Benefits • Features • Benefits • Virtualised and standardised • Potential for simplified and more infrastructure efficient IT and application management • Highly scalable (depending on the application • Deliver more applications to large number of users • Fault tolerant and highly reliable and available • increased utilisation at reduced cost • Fast application deployment • Faster reaction to business requirements March 15, 2010 18

Analysis of Some Information Technology Trends • AICPA – Survey of members from 2001 to 2009 (2010 not published) on initiatives in IT that are of concern to their members • Gartner – well known analyst company • Two very different views of information technology trends March 15, 2010 19

Gartner – Key IT Trends 2008 - 2010 2010 2009 2008 1 Cloud Computing Virtualisation Green IT 2 Advanced Analytics Cloud Computing Unified Communications 3 Client Computing Servers - Beyond Blades Business Process Modelling 4 IT for Green Web-Oriented Architectures Metadata Management 5 Reshaping the Data Centre Enterprise Mashups Virtualisation 2.0 6 Social Computing Specialised Systems Mashup and Composite Applications 7 Security – Activity Monitoring Social Software and Social Web Platform and Web- Networking Oriented Architectures 8 Flash Memory Unified Communications Computing Fabric 9 Virtualisation for Availability Business Intelligence Real World Web 10 Mobile Applications Green IT Social Software March 15, 2010 20

Gartner – Key IT Trends 2008 - 2010 • How relevant are these trends to you and your organisation? March 15, 2010 21

AICPA Top 15 IT Initiatives 2001-2009 2009 2008 2007 2006 2005 2004 2003 2002 2001 Information Security Information Security Information Security Information Security Information Security Information Security Information Security Business And Financial Information Security 1 Management Management Management Reporting And Controls Applications Privacy Management IT Governance Identity And Access Assurance And Electronic Document Spam Technology Business Information Training And E-Business 2 Management Compliance Management Management Technology Applications Competency Secure Data File Business Continuity Conforming To Disaster And Business Data Integration Digital Optimisation Application Information Security Electronically-based 3 Storage, Transmission Management And Assurance And Continuity Planning Integration and Controls Business and Financial And Exchange Disaster Recovery Compliance Standards Reporting Planning Business Process Privacy Management Privacy Management IT Governance Spam Technology Database and Web Services Quality of Service Privacy 4 Improvement, Work Application Flow and Process Integration Exception Alerts Mobile and Remote Business Process Disaster Recovery Privacy Management Disaster Recovery Wireless Technologies Disaster Recovery Disaster Recovery Training and 5 Computing Improvement, Planning and Planning and Business Technology Workflow and Process Business Continuity Continuity competency Exception Alerts Management Management Training and Identity and Access IT Governance Digital Identity and Collaboration and Disaster Recovery Wireless Technologies Communication Disaster Recovery 6 Competency Management Authentication Messaging Technologies Technologies Technologies Bandwidth Identity and Access Conforming to Securing and Wireless Technologies Wireless Technologies Data Mining Intrusion Detection Remote Connectivity Qualified IT Personnel 7 Management Assurance and Controlling Tools Compliance Standards Information Distribution Improved Application Business Intelligence Mobile and Remote Application and Data Authentication Virtual Office Intrusion Detection Web-Based and Web- Quality of Service 8 and Data Integration Computing Integration Technologies Enabled Applications Document, Forms, Mobile and Remote Electronic Archiving Paperless Digital Storage Technologies Business Exchange Customer Relationship Qualified IT personnel Electronic Audit 9 Content and Computing and Data Retention Technologies Technology Management Trail Knowledge Management Electronic Data Document, Forms, Document, Content Spyware Detection Learning and Training Messaging Privacy Messaging Application Service 10 Retention Strategy Content and and Knowledge and Removal Competency Applications Applications (e-mail, Provider Knowledge Management faxing, voicemail, Management instant messaging) Business Continuity Customer Training and E-mail Filtering RFID (Radio ID/Authentication ID/Authentication 11 Management and Relationship Awareness including Spam and Frequency Disaster Recovery Management (CRM) Malware scanning Identification) Planning Conforming to Improved Application Business Process Outsourcing Search Radio Frequency M-Commerce 12 Assurance and and Data Integration Improvement, Identification (RFID) Compliance Workflow and Process Standards Exception Alerts Collaboration – Training and Improved Application Storage and Backup Fuel Cells 3G Wireless Tablet PC 13 Information Portals Competency and Data Integration Technologies# Business Intelligence Web-deployed Web Deployed Patch and Network Digital Home Simple Object Access 3G Wireless 14 Applications Applications Management Tools Protocol (SOAP) Customer Information Portals Enterprise System Technology Display Technology# Autonomic Computers 15 Relationship Management Competency and Management Effective Utilisation March 15, 2010 22

AICPA Top 10 IT Initiatives 2004-2009 2009 2008 2007 2006 2005 2004 1 Information Security Information Security Information Security Information Security Information Security Information Security Management Management Management 2 Privacy Management IT Governance Identity And Access Assurance And Electronic Document Spam Technology Management Compliance Management Applications 3 Secure Data File Business Continuity Conforming To Disaster And Business Data Integration Digital Optimisation Storage, Transmission Management And Assurance And Continuity Planning And Exchange Disaster Recovery Compliance Standards Planning 4 Business Process Privacy Management Privacy Management IT Governance Spam Technology Database and Improvement, Work Application Integration Flow and Process Exception Alerts 5 Mobile and Remote Business Process Disaster Recovery Privacy Management Disaster Recovery Wireless Technologies Computing Improvement, Planning and Business Workflow and Process Continuity Exception Alerts Management 6 Training and Identity and Access IT Governance Digital Identity and Collaboration and Disaster Recovery Competency Management Authentication Messaging Technologies Technologies 7 Identity and Access Conforming to Securing and Wireless Technologies Wireless Technologies Data Mining Management Assurance and Controlling Information Compliance Standards Distribution 8 Improved Application Business Intelligence Mobile and Remote Application and Data Authentication Virtual Office and Data Integration Computing Integration Technologies 9 Document, Forms, Mobile and Remote Electronic Archiving Paperless Digital Storage Technologies Business Exchange Content and Computing and Data Retention Technologies Technology Knowledge Management 10 Electronic Data Document, Forms, Document, Content Spyware Detection and Learning and Training Messaging Applications Retention Strategy Content and and Knowledge Removal Competency Knowledge Management Management March 15, 2010 23

Security, Privacy, Governance, Disaster Recovery 2009 2008 2007 2006 2005 2004 2003 2002 2001 Information Information Information Information Information Information Information Information 1 Security Security Security Security Security Security Security Security And Management Management Management Controls Privacy IT Governance Identity And Access 2 Management Management Business Continuity Disaster And Information 3 Management And Business Continuity Security and Disaster Recovery Planning Controls Planning Privacy Privacy IT Governance Privacy 4 Management Management Disaster Recovery Privacy Disaster Recovery Disaster Recovery Disaster Recovery 5 Planning and Management Planning and Business Continuity Business Continuity Management Management Identity and Access IT Governance Digital Identity and Disaster Recovery Disaster Recovery 6 Management Authentication Technologies Identity and Access Conforming to Securing and Intrusion Detection 7 Management Assurance and Controlling Compliance Information Standards Distribution Authentication Intrusion Detection 8 Technologies Electronic Audit 9 Trail Spyware Detection 10 and Removal Business Continuity ID/Authentication ID/Authentication 11 Management and Disaster Recovery Planning Conforming to 12 Assurance and Compliance Standards 13 14 15 March 15, 2010 24

Data, Information and Document Management/ Integration and Analysis and Related Initiatives 2009 2008 2007 2006 2005 2004 2003 2002 2001 1 Electronic Business 2 Document Information Management Management Secure Data File Data Integration Digital Optimisation Application 3 Storage, Integration Transmission And Exchange Database and 4 Application Integration 5 Digital Identity and 6 Authentication Technologies Data Mining 7 Improved Business Application and 8 Application and Intelligence Data Integration Data Integration Document, Forms, Electronic Archiving Paperless Digital Storage Business Exchange 9 Content and and Data Retention Technologies Technologies Technology Knowledge Management Electronic Data Document, Forms, Document, Content 10 Retention Strategy Content and and Knowledge Knowledge Management Management 11 Improved 12 Application and Data Integration Improved Storage and Backup 13 Application and Technologies# Data Integration Business 14 Intelligence 15 March 15, 2010 25

AICPA Top 15 IT Initiatives 2001-2009 • Notice any differences? • Business-oriented focus of IT initiatives • Not concerned with IT plumbing and infrastructure (such as cloud) but on business concerns - running the business - and business-related IT concerns – potential impact of IT systems on the wider business • Security, privacy, disaster recovery/business continuity and governance concerns dominate • How will cloud computing assist in delivering these initiatives? March 15, 2010 26

It’s Easy to Sneer at Past Predictions But … • Gartner Highlights Key Predictions for IT Organisations in 2007 and Beyond − Vista will be the last major release of Microsoft Windows. The next generation of operating environments will be more modular and will be updated incrementally. The era of monolithic deployments of software releases is nearing an end. Microsoft will be a visible player in this movement, and the result will be more-flexible updates to Windows and a new focus on quality overall. − Blogging and community contributors will peak in the first half of 2007. Given the trend in the average life span of a blogger and the current growth rate of blogs, there are already more than 200 million ex-bloggers. Consequently, the peak number of bloggers will be around 100 million at some point in the first half of 2007. − By 2010, 60% of the worldwide cellular population will be "trackable" via an emerging "follow-me Internet." Local regulations have arisen to protect users' privacy, but growing demands for national safety and civil protection are relaxing some of the initial privacy limitations. Marketing incentives will also push users to forgo privacy concerns, and many other scenarios will enable outsiders to track their users. March 15, 2010 27

Private Cloud Computing • Cloud computing is largely an IT-focussed initiative that potentially allows IT manage systems and applications infrastructure more effectively March 15, 2010 28

Private Cloud • Private cloud should consist of computing, network and Management, Resource Management storage hardware packaged Administration and Control with key management, administration and control Backup Provisioning facilities into self-contained and Recovery systems and applications infrastructure Information Collection Disaster Recovery and • Not a panacea Auditing − There is no such thing as an IT Data Management Security system that does not require maintenance and management Service Management Application Lifecycle Management • Cloud computing is a means to an end and not an end in itself March 15, 2010 29

Cloud Processes • Possible suite of service management processes associated with conversion to cloud March 15, 2010 30

Public Cloud • Potential for fragmentation of applications and associated data as specific business applications are run on separate clouds from separate suppliers ERP CRM Application Usage Data Integration Document Mail and Management Messaging March 15, 2010 31

Public Cloud • Offers the potential for the business to bypass the IT function and buy the application from the cloud vendor, leading to a proliferation of disparate platforms and systems • Public cloud needs to be viewed as a form of outsourcing and needs to be implemented with the same care • Look to learn from the lessons from problems with outsourcing • Vendors will target business rather than IT staff and IT will be landed with implementation, maintenance and support March 15, 2010 32

Cloud and The Business • IT needs to be aware and beware of: − If IT cannot help us, who else can? March 15, 2010 33

Disconnect Between What the Business Wants and What IT Delivers What the Business Wants What the Business Gets 15% 5% 35% 25% 70% 50% Maintain The Momentum Of The Business Through Maintain The Momentum Of The Business Through Existing Business Systems Existing Business Systems Contribute To Improving Business Results Contribute To Improving Business Results Provide It Direction And Management That Is Aligned To Provide It Direction And Management That Is Aligned To The Needs Of The Business The Needs Of The Business March 15, 2010 34

IT Value Management is a Key Topic for IT Do Not Measure Business Value From IT 40% Investments Metrics Do Not Adequately Capture Business 45% Value Executives Skeptical Of ROI From IT 52% Find It Difficult To Calculate ROI 62% CEO/CFO Demanding Better Ways To 71% Demonstrate Value 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% • Results of managing IT for business value − Budget flexibility coupled with strategic IT alignment leads to 50% greater IT payoffs − Improving management practices alongside IT investment drives 20% higher IT yields March 15, 2010 35

Lessons Learned from Outsourcing Problems • Smoothly Transferring Services And Resources − Common cause of failure is the ineffective management of the transfer of services and resources to the service provider, leading to service delivery problems − Successful service providers rigorously control the transfer of services and resources to ensure that the new service is able to adequately deliver the service and the service continuity is maintained. • Maintaining Stakeholder Expectations − Common source of failure in sourcing engagements is a difference in expectations between the client, the service provider, and the suppliers and partners − Identifying and managing those expectations helps to ensure a common understanding of what is necessary for success • Translating Implicit And Explicit Needs Into Defined Requirements With Agreed Upon Levels Of Quality − Frequent cause of failure in sourcing is that the service provider does not fully understand the needs of the client − Successful service providers rigorously gather and analyse the stated and unstated needs, then translate those needs into a set of documented requirements − Successful service providers also recognise that needs change over time and establish provisions for gathering and analysing modifications to their services March 15, 2010 36

Lessons Learned from Outsourcing Problems • Reviewing Service Design And Deployment To Ensure An Adequate Coverage Of The Client’s Requirements − Failure in sourcing is caused by the service provider not fully addressing the needs of the client − To ensure that the service delivery will meet the client’s needs successful engagements include rigorous reviews of the service design and deployment activities by the clients and the service provider prior to service delivery • Managing Client’s Security − Managing security and controlling critical data and assets are critical to establishing trust − Security management includes protection of intellectual property, confidentiality, and privacy concerns • Monitoring And Controlling Activities To Consistently Meet The Service Delivery Commitments − Successful service providers rigorously monitor their service delivery activities to ensure that the client’s commitments are being met − Actions are taken to resolve and prevent problems, thereby escalating issues as appropriate to ensure that they are addressed in a timely basis March 15, 2010 37

Lessons Learned from Outsourcing Problems • Monitoring And Managing Client’s And End User’s Satisfaction − Success is not always defined in terms of meeting the agreed upon commitments, because clients and end users may be unsatisfied even when commitments are being met − Successful sourcing engagements monitor the satisfaction levels of the stakeholders to identify problems and take action • Managing Employee Satisfaction, Motivation, And Retention − IT-enabled sourcing often involves challenges during transition, deployment, and service delivery − High employee turnover jeopardises the service provider’s ability to meet its client’s requirements and undermines their expected gains and performance levels − Proactively monitoring and managing employee satisfaction and motivation can improve personnel retention and effectiveness • Managing Technological Shifts And Maintaining The Availability, Reliability, Accessibility, And Security Of Technology − Technology is a key component of outsourcing − Major challenges for the service provider include keeping pace with rapid changes in technology and effectively managing the technology infrastructure while changes are incorporated March 15, 2010 38

Summary • Trends come from many sources: analysts, industry bodies, vendors, surveys, publications and some of these may be tendentious • A trend needs to be validated against your geography, operating area, organisation size and technology maturity • Adopting a trend is not an automatic guarantee of benefits - there are rarely easy answers - you have to work at it • There is still a need for architecture, analysis, design, validation to ensure that you will derive the greatest benefits from adopting new technologies/systems/applications • Private cloud can offer flexibility • Public cloud is a form of outsourcing and needs to be managed as such • There is no such thing as an IT system that does not require maintenance and management March 15, 2010 39

Cloudy forecasts and other trends in information technology

by Alan McSweeney on Mar 15, 2010

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