A new style of IT is emerging. Cloud computing is fundamentally changing the way people live and work. Organizations are looking for ways to capitalize on opportunities for revenue growth and competitive advantage. To do this they need to create agility and speed innovation, at lower costs. They see cloud computing as a key component in their ability to gain access to the right mix of IT services to drive their business forward. As organizations evolve, they are expanding their cloud adoption with more strategic and comprehensive deployments that deliver business value and competitive differentiation.
A new style of IT is emerging:
Generally occurring about every decade we a set of tectonic shifts, starting with the mainframe, then moving to client/server, then to the Internet, and now the four big mega trends today around mobility, social, Big Data, and cloud computing.
What is interesting about each of these shifts is that they have been driven by business needs to speed innovation, enhance agility, and lower costs, and that is absolutely the case right now as it relates to the latest set of megatrends and the business actually trying to get in front to create competitive advantage and better serve their constituencies.
What are the implications for IT?
A lot of those services that you see on the outer bubbles are actually being consumed from external sources today, which is very, very different than the traditional delivery of IT services would have been within the traditional data center. This puts additional or enhanced risk on a business, and most businesses are accelerating the usage of those services because they see the clear benefits—simplicity, lower cost, and greater speed to innovation and time-to-market.
In many cases, businesses do not think they need IT anymore, and there are all sorts of implications for the IT organization as services are consumed, governed, and managed in a fundamentally different way.
Different clouds have different capabilities and one size does not fit all.
We at HP believe that it’s going to be a hybrid world – a journey to where enterprises leverage the best of private cloud, managed cloud, public cloud – as well as traditional IT.
HP recently conducted a study: 75% of IT executives plan to pursue a HYBRID DELIVERY MODEL. And 72% said that PORTABILITY OF WORKLOADS between cloud models are important to their cloud implementations And finally, 65% are concerned with VENDOR LOCK-IN.
Why do we believe, and clearly most IT executives believe, a hybrid model is the best for way to go?
Because a hybrid approach provides the means to address the IT service delivery challenges facing IT organizations today in the most efficient and cost effective way. This means taking advantage of the capabilities (SLAs….availability, security, performance, compliance, cost) offered across private cloud, managed cloud, public cloud as well as traditional IT.
It means looking at the portfolio of applications in your organization, segmenting them according to their respective SLA requirements, and then aligning the applications to the appropriate deployment model. And thus creating the most optimal use of internal and external resources.
In this new hybrid world, the role of the CIO and IT organizations expands from the traditional builder of services to a build AND broker; creating a seamless experience for end-users independent of service source.
Right now we are in a transition phase where we are moving from a government led service experience to a citizen led one, with web based tools, Freedom of information access needs and greater expectations driving this.
HP believes IT organizations will need to plan for hybrid IT to meet the demand of the business. Hybrid IT is integration of private cloud, public cloud and traditional IT. With Hybrid IT, enterprises and service providers will be able to provide the speed, agility and security required for IT organizations to be a core part of the business value delivery chain. With Hybrid IT, IT organizations will be able to match applications to the right delivery model. In some cases, it may be best to deploy in a public cloud. It other cases, it may be best to deploy in a private cloud. In yet other cases, the best model may be a mix of private and public cloud services, or a mix of traditional IT and private cloud. The main point is HP can help ensure your applications are deployed to the right deployment model, based on your business requirements.
Existing enterprises start with private cloud Startups start with public cloud
This month, Forrester released its list of top technology trends for the three year time horizon. The author of the report, Forrester Analyst Brian Hopkins makes the point that now that consumers and employees have continuous connectivity and an endless supply of apps, the CIO must drive the nimbleness that will be demanded by employees and customers, while he or she must also do so securely. These trends are so woven into the business drivers, that IT leaders must become much more strategic, providing the rationale for the changes that are afoot. With this background in mind, Forrester identifies the following ten technology trends for the 2014 through 2016. 1. Digital convergence erodes boundaries Physical and digital worlds are converging. As a result consumers expect uniform service whether they are in the physical world or if they are in the digital world. The convergence of the business and personal use of technology is also fueling this trend. Move up http://i.forbesimg.com t Move down Gartner: Top 10 Strategic Technology Trends For 2014 Peter High Contributor Five Ways to Prepare IT to Drive Productivity Peter High Contributor The Emergence of the CIO-Plus Peter High Contributor 2. Digital experience delivery makes (or breaks) firms Forrester makes the point that “A great digital experience is no longer a nice-to-have; it’s a make-or-break point for your business as we more fully enter the digital age.” The report points to a growing number of firms that have chosen a mobile-first approach, but then falling flat because “systems of record cannot keep up with engagement needs.” To a greater extent, customers’ impressions of a business are established through digital engagement forcing businesses to recognize that “software is the brand.” Some CIOs are losing their influence over the decisions in these areas as digital experience agencies are engaged by chief marketing officers and chief technology officers to a greater extent than by chief information officers. 3. APIs become digital glue Forrester draws a comparison between service-oriented architecture (SOA) and application platform interfaces (APIs). Like the former, the latter provides “open access to useful functionality through network-based services using technologies that are readily accessible from a broad range of programming environments.” The report sites as examples Amazon.com AMZN -0.15%’s product advertising API and the Washington Metropolitan Area Transit Authority’s API which represent business model innovation under this paradigm, while also highlighting the need for ever more sophisticated security given the exposure of data to a much broader set of individuals. 4. The business takes ownership of process and intelligence Forrester highlights that IT is losing its control over business intelligence platforms, tools, and applications often due to IT’s inability to operate at the increased pace of the business. The report also notes that business process management, again a traditional domain of IT by-and-large, is increasingly becoming the domain of other functions as “a new class of users demands more user-friendly, self-service features to automate ad hoc processes without expensive and scarce IT resources.” As mobility increasingly becomes a strategic imperative of the entire business greater levels of process and data innovation should arise, again leading to various functional leaders to wrestle control away from IT. 5. Firms shed yesterday’s data limitations Forrester maintains that “firms that embrace big data concepts, open data, and adopt new adaptive intelligence approaches are creating next generation smart systems that overcome limitations and create disruptive business innovations.” Cheaper, more agile, collaborative, and adaptive methods for analytics and data sharing are key. Forrester also notes that it is important to design “predictive apps able to sense their environment and respond in real-time, anticipate user action, and meet users in their moment of need.” 6. Sensors and devices draw ecosystems together The Internet-of-Things will move from hype to reality with the ubiquity of connectivity and proliferation of devices, and wearable computing will go from niche to broader use. This will turn the traditional “spray-and-pray promotional campaigns” into marketing to ecosystems that emerge as a result of these changes. 7. “Trust” and “identity” get a rethink The report posits that trust has been irreparably harmed as “it’s impossible to identify ‘trusted’ interfaces, many data breeches comes from trusted insiders, and the concept of ‘trust’ doesn’t even apply to data packets.” Consumerization of IT means that a greater number of IT devices and apps are being used in the workplace, especially by the digital natives. IT’s need to catch up with this will continue to be the norm. Forrester also points out that “the minimum cost of a data breech is $10 million, and in many cases it can be much larger”, and so it cannot be ignored. 8. Infrastructure takes on engagement Forrester foresees a number of changes that will change infrastructure from barrier to progress to “enabler of business demand for engagement.” The report notes that leading companies are changing silo unified communications and collaboration, mobile device management, and desktop computing to more efficiently deliver and foster employee engagement and innovation. Also, “converged infrastructure and software-defined networks are leading to the emergence of the software-defined data center (SDDC) as the new organizational model for intelligent infrastructure management — as a result, technology infrastructure will be able to deliver blazing fast performance on a variety of workloads, all at an affordable cost and level of complexity.” 9. Firms learn from the cloud and mobile Many firms have cloud strategies and mobile strategies, but the report makes the point that the benefits of the cloud will be limited by the speed with which traditional applications are re-written to take advantage of cloud. Without this redesign, benefits will be limited. Additionally, mobile strategies that have been a part of IT strategies across industries for a couple of years are now insufficient given the need to think of mobile as only one part of a broader omni-channel approach which requires a new kind of “application architecture that must be capable of supporting systems of engagement.” 10. IT becomes an agile service broker (or fades away) Forrester notes that “Today’s leading IT organizations are moving from aligned IT to empowered business technology practices.” Examples include Becoming technology service broker Modifying the software development lifecycle , architecture, and solutions development to deliver mobile, cloud, and big data solutions more readily Changing portfolio management to focus on products rather than projects as projects are more narrow in focus which leads to narrower value Replacing the success metrics to gauge project management “from time, cost, and resources” to “value, capacity, and time-to-market metrics. Peter High is the President of Metis Strategy, a business and IT advisory firm. He is also the author of World Class IT: Why Businesses Succeed When IT Triumphs, and the moderator of the Forum on World Class IT podcast series. To read his series on CIO-pluses, visit this link. To read his series profiling CIOs who have risen beyond that role, visit this link. Follow him on Twitter @WorldClassIT.
According to Meta Group - Global 2000 companies rely on an average of 49 enterprise applications and spend up to 33% of the IT budget just to get them to talk to one another.
This model represents the movement from interfaces which are hard-coded in a point-to-point approach.
In this model can you imagine training to build a business process which needs to consume information from those interfaces. It is very complex. Supporting all these interfaces also drains funding from the portfolio which could be used to drive innovation and differentiation.
In the model on the right common interfaces are re-used. Information can be published to the bus and then those applications or business process which require the information can subscribe to the content.
Similar to traditional EAI, but now supported by industry standards
Tremendous momentum Over 1900 enterprise customers using HP Cloud – 60% year-over-year growth Enterprise customers well balanced between build and consume… confirms it will be a hybrid cloud world. Ecosystem of partners… 250+ Partners We chose not to disclose Cloud revenue as there is still much confusion in the industry over what to include making the definition nebulous HP will wait until the definition of Cloud revenue is solidified -----------------------------------------------------------------------------------------
We have tremendous momentum. Whether you characterize it in customers’ experience or capability – we are moving, and fast. You can read the facts on the slides but there are two that I want to highlight. One is that over 1900 enterprise customers have turned to HP to help them build out their Cloud or are consuming HP Cloud services – representing approximately 60% year-over-year growth. Moreover, the fact that enterprise customers are well balanced between build and consume, affirms our vision that it will be a hybrid cloud world. Forrester noted the significant benefits of consistency and ease of use in their analysis of nine cloud vendors in The Forrester Wave: Private Cloud Solutions, Q4 2013. In this report Forrester also mentioned how HP had effectively used HP Cloud OS, an enterprise-grade version of OpenStack developed by HP, to provide a very effective UI. “CloudSystem Enterprise is one of the first OpenStack-based private cloud solutions and, more importantly, HP has effectively used this head start to develop additional capabilities while presenting a clean and navigable user interface.” Equally important is being a steady pair of hands to go with on their journey. Enterprise customers need a trusted advisor – that might be in product, or it might be in services but they are going on that journey with us.
Enterprise View listed twice – is that correct?
CloudGov 2014 - Cloud & Related Technologies for PSUs and Government Businesses - R Balasubramanian, National BD -Cloud Solution, HP