E Crime Symposium June 10

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An exploration of themes around cloud, innovation and commoditisation in I.T. at E-Crime Symposium.

An exploration of themes around cloud, innovation and commoditisation in I.T. at E-Crime Symposium.

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  • 1. Situation normal, everything must change
  • 2. Sccott Beale/Laughing Squid : http://www.flickr.com/photos/laughingsquid/
  • 3. Pain
  • 4. Pain No. Slides
  • 5. Pain 20 slides OK No. Slides
  • 6. 246 slides Severe Pain risk of harm OK No. Slides
  • 7. photos/videoplacebo/3481780379/
  • 8. Cloud?
  • 9. Note 1: Cloud computing is still an evolving paradigm. Its definitions, use cases, underlying technologies, issues, risks, and benefits will be refined in a spirited debate by the public and private sectors. These definitions, attributes, and characteristics will evolve and change over time. Note 2: The cloud computing industry represents a large ecosystem of many models, vendors, and market niches. This definition attempts to encompass all of the various cloud approaches. Definition of Cloud Computing: Cloud computing is a model for enabling convenient, on-demand network access to a shared pool of configurable computing resources (e.g., networks, servers, storage, applications, and services) that can be rapidly provisioned and released with minimal management effort or service provider interaction. This cloud model promotes availability and is composed of five essential characteristics, three service models, and four deployment models. Essential Characteristics: On-demand self-service. A consumer can unilaterally provision computing capabilities, such as server time and network storage, as needed automatically without requiring human interaction with each service’s provider. Broad network access. Capabilities are available over the network and accessed through standard mechanisms that promote use by heterogeneous thin or thick client platforms (e.g., mobile phones, laptops, and PDAs). Resource pooling. The provider’s computing resources are pooled to serve multiple consumers using a multi-tenant model, with different physical and virtual resources dynamically assigned and reassigned according to consumer demand. There is a sense of location independence in that the customer generally has no control or knowledge over the exact location of the provided resources but may be able to specify location at a higher level of abstraction (e.g., country, state, or datacenter). Examples of resources include storage, processing, memory, network bandwidth, and virtual machines. Rapid elasticity. Capabilities can be rapidly and elastically provisioned, in some cases automatically, to quickly scale out and rapidly released to quickly scale in. To the consumer, the capabilities available for provisioning often appear to be unlimited and can be purchased in any quantity at any time. Measured Service. Cloud systems automatically control and optimize resource use by leveraging a metering capability at some level of abstraction appropriate to the type of service (e.g., storage, processing, bandwidth, and active user accounts). Resource usage can be monitored, controlled, and reported providing transparency for both the provider and consumer of the utilized service. Service Models: Cloud Software as a Service (SaaS). The capability provided to the consumer is to use the provider’s applications running on a cloud infrastructure. The applications are accessible from various client devices through a thin client interface such as a web browser (e.g., web-based email). The consumer does not manage or control the underlying cloud infrastructure including network, servers, operating systems, storage, or even individual application capabilities, with the possible exception of limited user-specific application configuration settings. Cloud Platform as a Service (PaaS). The capability provided to the consumer is to deploy onto the cloud infrastructure consumer-created or acquired applications created using programming languages and tools supported by the provider. The consumer does not manage or control the underlying cloud infrastructure including network, servers, operating systems, or storage, but has control over the deployed applications and possibly application hosting environment configurations. Cloud Infrastructure as a Service (IaaS). The capability provided to the consumer is to provision processing, storage, networks, and other fundamental computing resources where the consumer is able to deploy and run arbitrary software, which can include operating systems and applications. The consumer does not manage or control the underlying cloud infrastructure but has control over operating systems, storage, deployed applications, and possibly limited control of select networking components (e.g., host firewalls). Deployment Models: Private cloud. The cloud infrastructure is operated solely for an organization. It may be managed by the organization or a third party and may exist on premise or off premise. Community cloud. The cloud infrastructure is shared by several organizations and supports a specific community that has shared concerns (e.g., mission, security requirements, policy, and compliance considerations). It may be managed by the organizations or a third party and may exist on premise or off premise. Public cloud. The cloud infrastructure is made available to the general public or a large industry group and is owned by an organization selling cloud services. Hybrid cloud. The cloud infrastructure is a composition of two or more clouds (private, community, or public) that remain unique entities but are bound together by standardized or proprietary technology that enables data and application portability (e.g., cloud bursting for load-balancing between clouds).Note: Cloud software takes full advantage of the cloud paradigm by being service oriented with a focus on statelessness, low coupling, modularity, and semantic interoperability.
  • 10. Point 1 Cloud computing is still an evolving paradigm.
  • 11. http://www.flickr.com/photos/rainbowproject/3928445074/
  • 12. We don’t know what “cloud” is yet. http://www.flickr.com/photos/rainbowproject/3928445074/
  • 13. “The real thing to do today is to capture, what are the dimensions of the thing that literally, I will tell you, we’re betting our company on, and I think pretty much everybody in the technology industry is betting their companies on” Microsoft CEO, Steve Ballmer
  • 14. We don’t know what “cloud” is yet http://www.flickr.com/photos/rainbowproject/3928445074/
  • 15. We don’t know what “cloud” is yet but bet your company on it http://www.flickr.com/photos/rainbowproject/3928445074/
  • 16. We don’t know what “cloud” is yet but bet your company on it everybody else is. http://www.flickr.com/photos/rainbowproject/3928445074/
  • 17. “open up exciting new prospects for the employment of computers in ways and on a scale that would have seemed pure fantasy only five year ago”
  • 18. “The challenge of the computer utility” Douglas Parkhill 1966
  • 19. http://www.flickr.com/photos/radioflyer007/ /upload.wikimedia.org/wikipedia/en/5/51/Metropolis.jpg http:/
  • 20. http://ftp.arl.army.mil/ftp/historic-computers/png/brlescII1.png
  • 21. Computer Utility Cloud Computing
  • 22. Change
  • 23. Change Why now?
  • 24. Change Why now? Benefits & Risk
  • 25. Change Why now? Benefits & Risk General
  • 26. Change Why now? Benefits & Risk General Managing Change
  • 27. Ubiquity
  • 28. Ubiquity Certainty
  • 29. Ubiquity TV’s, Phones & VCRS Certainty
  • 30. Ubiquity TV’s, Phones & VCRS Certainty
  • 31. Ubiquity Innovation Certainty
  • 32. Ubiquity Commodity Certainty
  • 33. Ubiquity Innovation of early lists, 1980. Certainty
  • 34. Ubiquity Custom built, DB Marketing Mid 80s Certainty
  • 35. Ubiquity Product Early 90s Certainty
  • 36. Utility Services Ubiquity of Salesforce Certainty
  • 37. Ubiquity Utility Services Commodity Product Custom built Innovation Certainty
  • 38. Ubiquity Innovation of Z3, 1941 Certainty
  • 39. Ubiquity Custom Built LEO, 1946 Certainty
  • 40. Ubiquity Products IBM 650, 1954 Certainty
  • 41. Ubiquity Commodity Hardware Certainty
  • 42. Utility services Ubiquity of Amazon EC2 Certainty
  • 43. Ubiquity Innovation of W. H. Wollaston, 1821 Certainty
  • 44. Ubiquity Early Products, Hippolyte Pixii, 1830s Certainty
  • 45. Utility Services Ubiquity of the National Grid Certainty
  • 46. Electricity Accounts Ubiquity Infrastructure Payroll CRM HR systems ERP Web Portal Search Engines Enterprise 2.0 Information market VRM Certainty
  • 47. Ubiquity io n at it is o d m m Co Certainty
  • 48. http://www.flickr.com/photos/privatenobby
  • 49. http://www.flickr.com/photos/billege
  • 50. http://www.flickr.com/photos/billege/
  • 51. Ubiquity Demand (user competition) Certainty
  • 52. http://www.flickr.com/photos/privatenobby
  • 53. http://www.flickr.com/photos/mush2274
  • 54. http://www.flickr.com/photos/mush2274/
  • 55. Ubiquity Demand (user competition) Improvement (supply competition) Certainty
  • 56. Ubiquity Demand (user competition) io n at it is o d m m Co Improvement (supply competition) Certainty
  • 57. Ubiquity Certainty
  • 58. Ubiquity Certainty
  • 59. Ubiquity Widespread (Demand) Feature Complete (Improvement) Certainty
  • 60. Ubiquity Utility Services Certainty
  • 61. Application Database Framework Messaging Operating System Virtualisation CPU Memory I/O
  • 62. Application Framework Messaging Operating System Virtualisation Memory I/O
  • 63. Application Framework Messaging Operating System Virtualisation Infrastructure Memory I/O
  • 64. Application Framework Messaging Platform Operating System Virtualisation Infrastructure Memory I/O
  • 65. Application Software Framework Messaging Platform Operating System Virtualisation Infrastructure Memory I/O
  • 66. Ubiquity Software ... as a Platform Service Infrastructure ... as a Product Certainty
  • 67. Change Why now?
  • 68. Concept
  • 69. Concept Suitability
  • 70. Concept ? Technology Suitability
  • 71. Gerald J. Popek (1947-2008)
  • 72. Attitude Concept ? Technology Suitability
  • 73. Paul Strassmann http://www.strassmann.com/
  • 74. Nick Carr
  • 75. Ubiquity g in ue h l is va in c im gi D e ra t st Certainty
  • 76. Payroll HR Systems CRM ERP Sales Automation Infrastructure Finance & Accounting
  • 77. Ubiquity HR Payroll Certainty
  • 78. Ubiquity HR Payroll Why are we spending $600M p.a. on customising stuff has no strategic value? Certainty
  • 79. Customise your payroll system! http://www.flickr.com/photos/rainbowproject/3928445074/
  • 80. Ubiquity Way back when ... Certainty
  • 81. Ubiquity Now Way back when ... Certainty
  • 82. Ubiquity Standardised Service! Certainty
  • 83. Ubiquity Standardised Service! Marketplace Certainty
  • 84. Attitude Concept Technology Suitability
  • 85. Ubiquity Software ... as a Platform Service Infrastructure ... as a Product Certainty
  • 86. Change Why now? Benefits & Risk
  • 87. Ubiquity Early Utility Westinghouse, 1890s Product Hippolyte Pixii, 1830s Certainty
  • 88. Ubiquity Economies of scale (volume operations) Certainty
  • 89. Ubiquity Economies of scale (volume operations) Focus on core (outsource) Certainty
  • 90. Ubiquity Economies of scale (volume operations) Focus on core (outsource) Pay per use (utility) Certainty
  • 91. Ubiquity Economies of scale (volume operations) Focus on core (outsource) Pay per use (utility) Certainty
  • 92. Ubiquity efficiency Certainty
  • 93. Ubiquity Agility (Self Service) Certainty
  • 94. Previous Time (mins) New server 72,000 64 node 130,000 cluster
  • 95. Previous Cloud Time Time (mins) (mins) New server 72,000 7 64 node 130,000 15 cluster
  • 96. Ubiquity Agility (Self Service) Innovation (creative destruction, componentisation) Certainty
  • 97. The fundamental impulse that sets and keeps the capitalist engine in motion comes from the new consumers, goods, the new methods of production or transportation, the new markets, the new forms of industrial organization that capitalist enterprise creates. Joseph A. Schumpeter (1883 - 1950)
  • 98. The fundamental impulse that sets and keeps the capitalist engine in motion comes from the new consumers, goods, the new methods of production or transportation, the new markets, the new forms of industrial organization that capitalist enterprise creates. Joseph A. Schumpeter (1883 - 1950)
  • 99. Creative Destruction Joseph A. Schumpeter (1883 - 1950)
  • 100. Ubiquity lu e Va in g d E ro Certainty
  • 101. Ubiquity lu e Va in g d E ro Enables Innovation Certainty
  • 102. Ubiquity Internet Electricity Hardware Certainty
  • 103. Ubiquity Internet Electricity Hardware Enable Innovation Search Certainty
  • 104. Ubiquity Software Platform Infrastructure Enable Innovation Certainty
  • 105. Theory of Hierarchy Componentisation Herbert A. Simon (1916 - 2001)
  • 106. Rate of evolution of a system is dependant upon the organisation of its subsystems. Herbert A. Simon (1916 - 2001)
  • 107. Application
  • 108. Application Database Framework Messaging
  • 109. Application Database Framework Messaging Operating System Virtualisation CPU Memory I/O
  • 110. Application Database Framework Messaging Operating System Virtualisation CPU Memory I/O
  • 111. Application Orders of Magnitude CPU
  • 112. Ubiquity Software Platform Infrastructure Accelerated Innovation Certainty
  • 113. Henry Maudslay (1771 - 1831)
  • 114. Ubiquity Agility (Self Service) Innovation (creative destruction, componentisation) Opportunity (long tail, co-evolution, price elasticity) Certainty
  • 115. Importance Limit of IT Projects
  • 116. Importance Limit of IT demand (backlog) Projects
  • 117. Price !P !Q Quantity
  • 118. Ubiquity Innovation Flemming Valve, 1904 Certainty
  • 119. Ubiquity Products Intel 4004, 2300 Transistors, 1971 Certainty
  • 120. Busicom
  • 121. Busicom MCS-4
  • 122. Busicom Co-Evolution MCS-4
  • 123. > 1,000,000,000,000,000,000
  • 124. Ubiquity Agility (Self Service) Innovation (creative destruction, componentisation) Opportunity (long tail, co-evolution, price elasticity) Certainty
  • 125. Ubiquity consumption Certainty
  • 126. It’ll reduce your IT spend. http://www.flickr.com/photos/rainbowproject/3928445074/
  • 127. consumption efficiency
  • 128. “Jevons Paradox” Technological progress that increases the efficiency with which a resource is used, tends to increase the rate of consumption of that resource. William Stanley Jevons, 1865
  • 129. Choice?
  • 130. Ubiquity Market You Certainty
  • 131. Ubiquity Market Competitive Gap You Certainty
  • 132. Ubiquity Market Pay per use Focus on core Economies of scale Speed to market Accelerated innovation You Certainty
  • 133. Ubiquity Market ure ss Pre You Certainty
  • 134. Ubiquity Market ure ss Pre You Prof. Van Valen “Red Queen Hypothesis” Certainty
  • 135. “Red Queen Hypothesis” The need to constantly evolve in order to stand still relative to a surrounding ecosystem Prof. Van Valen
  • 136. http://www.flickr.com/photos/privatenobby
  • 137. http://www.flickr.com/photos/billege
  • 138. http://www.flickr.com/photos/giddygoose/
  • 139. No Choice?
  • 140. Ubiquity Marketplace Certainty
  • 141. Ubiquity Private Marketplace Certainty
  • 142. Ubiquity Hybrid Certainty
  • 143. Ubiquity Transition Confusion Governance Trust Security Transparency Certainty
  • 144. Ubiquity Transition Outsourcing Confusion Suitability Governance Competition Trust Lock-in Security Second Source Transparency Control Certainty
  • 145. Ubiquity Transitional Risks Security of supply, governance, trust ... Hybrid Certainty
  • 146. Ubiquity Certainty
  • 147. Only public cloud is cloud computing! http://www.flickr.com/photos/rainbowproject/3928445074/
  • 148. Benefits vs Risks
  • 149. Recap
  • 150. Ubiquity Software ... as a Platform Service Infrastructure ... as a Product Certainty
  • 151. Attitude Concept Technology Suitability
  • 152. Ubiquity Software Platform Infrastructure Accelerated Innovation Certainty
  • 153. Ubiquity Transition Outsourcing Confusion Suitability Governance Competition Trust Lock-in Security Second Source Transparency Control Certainty
  • 154. Ubiquity Market ure ss Pre You Prof. Van Valen “Red Queen Hypothesis” Certainty
  • 155. http://www.flickr.com/photos/privatenobby
  • 156. Ubiquity Hybrid Certainty
  • 157. Benefits vs Risks
  • 158. Change Why now? Benefits & Risk General
  • 159. Ubiquity IT Certainty
  • 160. Ubiquity Certainty
  • 161. Ubiquity Infrastructure Certainty
  • 162. Ubiquity Infrastructure Collective Enables Intelligence Certainty
  • 163. Ubiquity provided as .. built on ... Certainty
  • 164. Ubiquity Certainty
  • 165. Ubiquity Hybrid Certainty
  • 166. Data Code
  • 167. Data Code
  • 168. Proprietary Open Source
  • 169. TCO Proprietary Open Source
  • 170. Exit Proprietary Open Source
  • 171. Minimise future costs defacto public standard open source implementation
  • 172. Change Why now? Benefits & Risk General Managing Change
  • 173. Electricity Accounts Ubiquity Infrastructure Payroll CRM HR systems ERP Web Portal Search Engines Enterprise 2.0 Information market VRM Certainty
  • 174. Electricity Accounts Ubiquity Infrastructure Payroll CRM HR systems ERP Web Portal Search Engines Enterprise 2.0 Information market VRM Certainty
  • 175. Lifecycle
  • 176. # Lifecycle
  • 177. # Lifecycle
  • 178. Electricity # Infrastructure Payroll CRM HR systems Lifecycle
  • 179. # Enterprise 2.0 Information market VRM Lifecycle
  • 180. # Commoditisation Demand vs Suppply Competition Co-evolution Lifecycle
  • 181. # Commoditisation Demand vs Suppply Competition Co-evolution Innovation Creative Destruction Componentisation Lifecycle
  • 182. # Lifecycle
  • 183. # Dynamic Lifecycle
  • 184. # Dynamic Deviation Lifecycle
  • 185. # Dynamic Deviation Uncertain Lifecycle
  • 186. # Dynamic Deviation Uncertain Emergent Lifecycle
  • 187. # Dynamic Deviation Uncertain Emergent Serendipty Lifecycle
  • 188. # Dynamic Deviation Uncertain Emergent Serendipty Competive Adv. Lifecycle
  • 189. # Chaotic Dynamic Deviation Uncertain Emergent Serendipty Competive Adv. Lifecycle
  • 190. # Chaotic Linear Dynamic Deviation Uncertain Emergent Serendipty Competive Adv. Lifecycle
  • 191. # Chaotic Linear Dynamic Repeatable Deviation Uncertain Emergent Serendipty Competive Adv. Lifecycle
  • 192. # Chaotic Linear Dynamic Repeatable Deviation Standardised Uncertain Emergent Serendipty Competive Adv. Lifecycle
  • 193. # Chaotic Linear Dynamic Repeatable Deviation Standardised Uncertain Known Emergent Serendipty Competive Adv. Lifecycle
  • 194. # Chaotic Linear Dynamic Repeatable Deviation Standardised Uncertain Known Emergent Predictable Serendipty Competive Adv. Lifecycle
  • 195. # Chaotic Linear Dynamic Repeatable Deviation Standardised Uncertain Known Emergent Predictable Serendipty Procedural Competive Adv. Lifecycle
  • 196. # Chaotic Linear Dynamic Repeatable Deviation Standardised Uncertain Known Emergent Predictable Serendipty Procedural Competive Adv. CODB Lifecycle
  • 197. # Chaotic Linear Dynamic Repeatable Deviation Standardised Uncertain Known Emergent Predictable Serendipty Procedural Competive Adv. CODB Lifecycle
  • 198. # Chaotic Linear Innovation of Utility Services early lists, 1980. of Salesforce Lifecycle
  • 199. Use Six Sigma! http://www.flickr.com/photos/rainbowproject/3928445074/
  • 200. # Six Sigma Lifecycle
  • 201. # Six Sigma Repeatable Standardised Known Predictable Lifecycle
  • 202. # Six Sigma Dynamic Deviation Uncertain Emergent Lifecycle
  • 203. Use Six Sigma! No! Use Agile! http://www.flickr.com/photos/rainbowproject/3928445074/
  • 204. # Agile Dynamic Deviation Uncertain Emergent Lifecycle
  • 205. # Agile Repeatable Standardised Known Predictable Lifecycle
  • 206. # No Magic Bullet Lifecycle
  • 207. # Joseph A. Schumpeter (1883 - 1950) Lifecycle
  • 208. # Joseph A. Schumpeter Prof. Van Valen (1883 - 1950) Lifecycle
  • 209. Innovation Paradox Survival today requires ‘coherence, coordination and stability’. Survival tomorrow requires the replacement of these erstwhile virtues. Salaman & Storey
  • 210. One Size fits all! http://www.flickr.com/photos/rainbowproject/3928445074/
  • 211. Ubiquity Utility Services Commodity Product Custom built Innovation Certainty
  • 212. # Lifecycle
  • 213. # Six Sigma Lifecycle
  • 214. # Lifecycle
  • 215. # Outsource Lifecycle
  • 216. # Why are we spending $600M p.a. on customising stuff has no strategic value? Lifecycle
  • 217. # Software Platform Infrastructure Lifecycle
  • 218. # Software Platform Infrastructure Innovation Lifecycle
  • 219. # “Built on” “Provided as” Lifecycle
  • 220. http://www.flickr.com/photos/rednuht/479370088
  • 221. http://www.flickr.com/photos/rednuht/479370088
  • 222. http://www.flickr.com/photos/fatdeeman/2879894647
  • 223. http://www.flickr.com/photos/fatdeeman/2879894647
  • 224. http://www.flickr.com/photos/privatenobby
  • 225. http://www.flickr.com/photos/8078381@N03/3979391704/
  • 226. Recap
  • 227. Ubiquity Software ... as a Platform Service Infrastructure ... as a Product Certainty
  • 228. Attitude Concept Technology Suitability
  • 229. Ubiquity Software Platform Infrastructure Accelerated Innovation Certainty
  • 230. Ubiquity Transition Outsourcing Confusion Suitability Governance Competition Trust Lock-in Security Second Source Transparency Control Certainty
  • 231. consumption efficiency
  • 232. Ubiquity Market ure ss Pre You Prof. Van Valen “Red Queen Hypothesis” Certainty
  • 233. http://www.flickr.com/photos/privatenobby
  • 234. Ubiquity Hybrid Certainty
  • 235. Benefits vs Risks
  • 236. Minimise future costs defacto public standard open source implementation
  • 237. # “Built on” “Provided as” Lifecycle
  • 238. http://www.flickr.com/photos/rednuht/479370088
  • 239. # Commoditisation Demand vs Suppply Competition Co-evolution Innovation Creative Destruction Componentisation Lifecycle
  • 240. 2010 Study Tour – Surf the Change or Be Swept Away – Consumerization, Mobility, and the Cloud The annual LEF EP Study Tour this year will focus on the rapid evolution of IT consumerization – In terms of driving business change Some Key Questions To Be Addressed • How do we treat IT-savvy employees and customers – in terms of their technology decision rights? • How do we promote business value add in terms of social networking tool usage? – without “heavy handed “ IT governance? • What information sharing rules need to be changed in an era of increased external collaboration? • How do we make it easier for staff to leverage cloud computing services? – while maintaining enterprise discipline around security and risk? 17 – 22 October 2010 San Francisco, USA For more information, visit: http:// lef.csc.com/events/studytour Leading Edge Forum 06/08/10 02:53 AM