Clouds of Revolution - Reinventing the Social Enterprise


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Keynote by Peter Coffee of for Phorum 2012 event of Philadelphia Alliance for Capital and Technologies (PACT) - Revolutions in cloud services enabling reinvention of enterprise collaboration and social engagement through teams, customer communities, and socially enabled products

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  • Fantastic presentation. If you ever get a chance to see Peter present about the Cloud Revolution, I highly recommend it. I saw this live at Philly Phorum yesterday 3/28/12.
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Clouds of Revolution - Reinventing the Social Enterprise

  1. 1. Clouds of RevolutionReinventing the (Social) Enterprise @PeterCoffee Peter Coffee VP & Head of Platform Research inc.
  2. 2. Safe HarborSafe harbor statement under the Private Securities Litigation Reform Act of 1995: This presentation may contain forward-lookingstatements that involve risks, uncertainties, and assumptions. If any such uncertainties materialize or if any of the assumptions In Other Words:proves incorrect, the results of, inc. could differ materially from the results expressed or implied by the forward-looking statements we make. All statements other than statements of historical fact could be deemed forward-looking, includingany projections of subscriber growth, earnings, revenues, or other financial items and any statements regarding strategies orplans of management for future operations, statements of belief, any statements concerning new, planned, or upgraded services Everything Thator technology developments and customer contracts or use of our services.The risks and uncertainties referred to above include – but are not limited to – risks associated with developing and deliveringnew functionality for our service, our new business model, our past operating losses, possible fluctuations in our operating resultsand rate of growth, interruptions or delays in our Web hosting, breach of our security measures, risks associated with possible You See Heremergers and acquisitions, the immature market in which we operate, our relatively limited operating history, our ability toexpand, retain, and motivate our employees and manage our growth, new releases of our service and successful customerdeployment, our limited history reselling products, and utilization and selling to larger enterprise customers.Further information on potential factors that could affect the financial results of, inc. is included in our annual is Realreport and on our Form 10-Q for the most recent fiscal quarter: these documents and others are available on the SEC Filingssection of the Investor Information section of our Web site.Any unreleased services or features referenced in this or other press releases or public statements are not currently available andmay not be delivered on time or at all. Customers who purchase our services should make the purchase decisions based uponfeatures that are currently available., inc. assumes no obligation and does not intend to update these forward-looking statements. @PeterCoffee
  3. 3. Revolution 1: Breakout Speed & Efficiency• Silicon Photonics – performance/watt has been flat over time (Google Labs, ’05) – Ge lasers 100 times faster than intra-chip wires (MIT) – reduced power losses, easier to cool – ‘seed & melt’ detector fab: cheaper than vapor deposition (IBM)• Memristors (HP, IBM, Hynix) – roughly twice the density of flash – more than 1,000 times faster – millions of rewrite cycles• Metamaterials (Purdue) – new semiconductors ‘steer’ light with electric fields – aluminum and gallium doping agents reduce optical losses @PeterCoffee
  4. 4. Revolution 2: Precise Control of Trust• Formally verified operating system (National ICT Australia)• Application ‘whitelisting’• Facebook “Custom” button – What do they have in common? – Finally, a trend toward granting specific permissions rather than trying to anticipate and block attacks and errors @PeterCoffee
  5. 5. Revolution 3: Massive Analytics & Insight• Big Data – “Time is lost, confusion results and money is spent.” (1917 complaint about the telephone) – ‘volume, velocity, variety’ (Gartner) – beyond scientific computing• Bigger Tools – Hadoop (Facebook / Cloudera) – Informatica• Improving Informatica Algorithms & Visualizations @PeterCoffee
  6. 6. Revolutions 4-?: Connecting Everything• Bandwidth pooling – BitMate (Pakistan) effectively doubles connection speed – downloaded by users in 173 countries• Tagged-packet networking (USC / GM) – instead of sending packets to an address, label with data attributes • ‘This is what I’m about’ • ‘This is where I’m useful’ • ‘This is when I’m outdated’• Task-inferring search (Siri)• Data security and robustness (RSA)• Pervasive Social Networking @PeterCoffee
  7. 7. Social Revolution: Social Networking Surpasses Email So what? 1.1 Social Users billion social users Email Users2007 2008 2009 2010 2011 Source: Comscore, June 2011 @PeterCoffee
  8. 8. Social Networks: More Than Just ‘Sum of the People’(Arcs Represent Number • Distance of Facebook ‘Friend’ Links) @PeterCoffee Pop quiz: where is Beijing?
  9. 9. ‘Digital’=Evolution; ‘Connected’=Revolution Replacing doctors’ clipboards with smartphones? – Does not make current health care model sustainable – Connectivity lets patients stay in sensor-enriched homes • Radically reduce office visits and hospital admissions Replacing students’ textbooks with iPads? – Does not make current higher education model sustainable – Connectivity turns the campus inside out • Most of students’ time spent in ‘intern’ environment • Instructors can tailor presentation sequence to work demands • Return to campus for seminars, research colloquia…and graduation @PeterCoffee
  10. 10. Networks are More Than Webs Webs are woven; networks emerge – A web is just a collection of connections – The arcs of a network have direction, magnitude, quality, and value ‘Friend’ is bilateral; ‘Follow’ is not – Counting followers → ego rewards, but what do they do for you? • Followers may be just as entertained by your failure – A critic whose input is acknowledged becomes an advisor • When input → results, advisors feel invested → advocates and zealots Products have buyers; brands have fans @PeterCoffee
  11. 11. Fans Arise from ‘+1’ Customer Experience Engineers get to write spec sheets… Assembly workers get to build and ship… Lawyers get to write the terms of service… Call centers get to compile call statistics… …but only the customers get to say what kind of experience they had – and they say it to the world Is every employee in the company equipped to make that experience excellent? @PeterCoffee
  12. 12. Collaboration is Key A social workplace is ‘relative’ – Not statically defined by org chart – Reshaped by knowledge – Accelerated by events All applications are socially enabled by Chatter – Older apps simply acquired the new behavior – Social behaviors are pervasive, not isolated in social silo @PeterCoffee
  13. 13. Experience Is Not Partitioned @PeterCoffee
  14. 14. ‘Product’ = Vehicle of Ongoing Experience Chatter for 320,000 Toyota Vehicles Employees Social Customer Profile Dealers/Distributo Toyota Friend rs Mobile Toyota Friend 1-800-4-My- Website Toyota Manufacturing/ Toyota Friend Finance on Youtube Toyota Friend on Toyota Friend Toyota Friend Facebook on mixi on Twitter @PeterCoffee
  15. 15. Experience Creation → Profit Preservation “One automaker’s chief financial officer told Sun COO Jonathan Schwartz that his company could give a car away for free, if it could charge a customer $220 per month for a subscription.”“CE device margins are razor thin, and the promise ofmaintaining an always-on connection to the customer after thepoint of sale is mighty enticing… Simply put, connecteddevices make connected customers.” Richard Schwartz, President and CEO, Macheen “The retail cloud has reached critical mass: everything from DVD players to TVs, from car entertainment to alarm clocks, comes with some sort of cloud service to support that device.” David Linthicum, 18 January 2012 @PeterCoffee
  16. 16. Experience = Interaction → Adaptation  Where are customers & influencers having conversations?  What facilities exist for tapping that stream?  What are the cultural norms of that community?  When should you be present?  How should you participate?  Who will represent you?  How will that process scale?  What will you learn?  How will you change? @PeterCoffee
  17. 17. Refining Experience: More Than Listening @PeterCoffee
  18. 18. Experience Delivery: a Model, not an App• Collaborative process creation & maintenance• Best practice Andrew Leigh. I need to create a new sharing customer service process for the iPad, can you guys help?• Integration with New process created: iPad Tier 1 Support feeds and other Process (Goals: Run time, 5 min) social channels• Social Steve Wood. Great – I can help with the case escalation by linking in the Apple Escalation Process. process Varadarajan Rajaram. Yes, I know this product well – there are a bunch of management solutions I can build into this process. @PeterCoffee
  19. 19. Enterasys Devices Are Social Network congestion in Asia. Facebook, Twitter, and Chatter notifications Users receive alarms and alerts Enables rapid response Reduces system downtime @PeterCoffee
  20. 20. The Value of VelocityNew Devices → New Use Environments → New Moments of Opportunity & Decision CIO Tablet Intentions “ 2011 Employee- ...fastest ramping Not Allowed Purchased for Employees owned mobile device ” ever. 2010 Morgan Stanley, “Tablet Demand and Disruption”, February 14, 2011. @PeterCoffee
  21. 21. The Value of Velocity Legacy Stack-Based Process – Wherever It Is Install & Write Deploy & Monitor Patch and Configure Load & Tune Regression Code Stack Test TestYou Your AppAverage time to build a custom app with software is 8 months.IDC White Paper sponsored by “ Cloud Platform Drives Huge Time to Market and Cost Savings”, Doc # 219965, September, 2009By late 2009, Qualcomm/Android cycle time had dropped to 4.5 months.Computerworld, “Is Quadroid the new Wintel?,” 2 December 2010 @PeterCoffee
  22. 22. The Value of Velocity One developer with no prior training built a patient admission app in just 4 days Deployed to Medical Directors and Program Directors in hospitals on iPhones and iPads • Eliminated paper forms; • Workflow reduced response time“We’re blown away…a mobile healthcare by more than 60%;app on with one person in just 4 • Cut process time from 18 hoursdays… The same app built in [previousmodels] would have taken over 3 months” to less than 60 minutes @PeterCoffee
  23. 23. Social Velocity Leads to The Cloud• Old Cloud: Centralization + Automation → Cost Reduction – Distant resources: considered to be a tolerable nuisance – Security: assumed to be a challenge, and compliance a barrier – ‘Cloudwashing’ of legacy products: tempting and easy• New Cloud: Connection + Simplification → Acceleration – Data and process in cloud are closer to everything else you need – Security is part of the service; audit trails are easy to provide – You can’t ‘connectwash’ a server, no matter how much virtualization you apply or how many ‘private clouds’ you proclaim – In false clouds, you pay for resources… …in true clouds, you pay for opportunities @PeterCoffee
  24. 24. Trust Attainment Enables CloudAdoption• Robust infrastructure security• Rigorous operational security• Granular customer controls – Role-based privilege sets – Convenient access control & audit• “Sum of all fears” scrutiny – Multi-tenancy shrinks attack surface; slashes opportunities for error – The most demanding customer sets the bar – FISMA: FIPS 199 LOW and MODERATE – PCI DSS Compliance Level 1 – Comprehensive and continuing audit and certification @PeterCoffee
  25. 25. Best Practices Matter More than Data Location "There are five common factors that lead to the compromise of database information": • ignorance • poor password management • rampant account sharing • unfettered access to data • excessive portability of data, October 2009 @PeterCoffee
  26. 26. All Assets Secured, All the Time Despite resource sharing, multitenancy will often improve security. Most current enterprise security models are perimeter-based, making you vulnerable to inside attacks. Multitenant services secure all assets at all times, since those within the main perimeter are all different clients… Multitenancy is here to stay. Our research and analysis indicates that multitenancy is not a less secure model — quite the opposite! @PeterCoffee
  27. 27. “Do it yourself” vs. “Who you gonna call?” Po t e nt ia l b e ne f it s f r o m t r a ns it io ning t o a p ub l ic c l o ud c o mp ut ing e nv ir o nme nt : • St a f f Sp e c ia l iz a t io n • Pl a t f o r m St r e ng t h • Re s o ur c e Av a il a b il it y • Ba c k up a nd @PeterCoffee Re c o v e r y • Mo b il e
  28. 28. Public Clouds of Public Trust:No More ‘Forbidden Zones’ General Economic Health & Defense & TransportationGovernment Development Human Services Public Safety Science & Environment @PeterCoffee
  29. 29. The Cloud Experience: It’s About Results• ‘The cloud’ does use technology • Virtualization • Dynamic provisioning • 4G wireless • SOA These enable; they don’t guarantee• ‘Cloud’ is a business commitment – Negligible up-front capital – Alignment of cost with value – Maximal stakeholder engagement @PeterCoffee
  30. 30. @PeterCoffee
  31. 31. Velocity is a Vector ‘Social’ has both magnitude and direction – If you’re going the wrong way, it doesn’t help to go faster – The Social Revolution offers ~ unlimited ways to go wrong Trust takes a long time to win; ~ zero time to lose – Unhappy customers used to call you and wait for action – Today, they can give the world hourly updates while they wait – Never a headline, “X Corp.’s customer data uncracked today” It’s not enough to evolve – Where must you be in three years? – What should you have been doing today? @PeterCoffee
  32. 32. Thank You @PeterCoffee