Future of IT

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Presentation I gave back at TechEd 07.

Slide 19-32 cover the project I did that resulted in the paper on www.itasaservice.com

34-35 are predictions of how IT might evolve.

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Future of IT

  1. 1. ARC05-IS The Future of IT Matt Deacon Microsoft UK UK Architect Council
  2. 2. Agenda • What’s happening in the world of software? • What are the Implications for the Enterprise? • What could the IT of the Future look like?
  3. 3. Galton’s Ox!
  4. 4. Exercising the “computer” • Name/Alias/email (optional) • Organisation type: • Enterprise (S,M,L) • System Integrator/Consultancy • Software Vendor • Outsourcer • Other • Job Function: • Developer • Development Manager • Architect (Solution, Infrastructure, Enterprise) • Consultant • Other
  5. 5. What’s happening in the world of software?
  6. 6. Historically 80’s 70’s 90’s 00’s Centralised, Managed Democratised, Adaptable
  7. 7. Drivers Business Social • • Costs Web 2.0 • • Agility Gaming • • Globalisation Creativity • • Sourcing models Communication and collaboration • • Risk Social Relationships (trust / rating) • Markets / Long Tail • Power of numbers • Innovation • Knowledge workforce Technical Technology • “Green” IT • REST/SOAP • • Connectivity AJAX • • Bandwidth Dynamic Languages • • Hardware Costs RSS / ATOM / SSE • • Blogs and Wiki’s Multiple Devices • • SaaS, SOA, Web 2.0 WS*
  8. 8. Catalysts 1. Externalising IT - Sourcing outside of the enterprise. 2. Application Decoupling - to increase agility 3. Ad-hoc collaboration - across the business 4. Consumer-grade IT - becoming good enough 5. Unmanaged PC - from control to enablement Cost & Complexity - of “old ways” 6.
  9. 9. Service transition • “Software as a Service” is the catalyst with potential to • Transform the way IT relates to and thinks about their role as providers of computing services • Change ITs focus from deploying and supporting applications to managing the capabilities that those applications provide.
  10. 10. What is Software as a Service? Definition: “Application delivery model where a software vendor develops a web-native application and hosts and operates it”1 • SaaS Key characteristics2: • network-based • Remote hosted/access • one-to-many (multi-tenant) model • No software • Subscription based pricing model 1 Foresters 2 Characteristics according to IDC
  11. 11. The Service’s Spectrum The continuum of hosted software services On-Premise SaaS Licensing Perpetual Subscription Transaction Ad-Funded Location On-Premise Appliance Third-Party Hosted Life Cycle Corporate IT ASP Black Box Management Reality: Is a future where local software and remote services seamlessly interact with one another. Software makes services better and services make software better.
  12. 12. Software + Services Web 2.0 Service SaaS SOA
  13. 13. The S+S Framework Communities & Partnerships “Attached” “Finished” Services Tooling and Guidance Services “Heads” Desktop Web Mobile Voice Delivery On-premise Hosted Ms Hosted “Building block” Services Windows Platform
  14. 14. The S+S Platform Landscape “Cloud” Client Server XBOX XBOX Live Home Server Consumer Media Center “Live” Mobile Vista Services Platform Office Live Business Windows Server “Online”
  15. 15. The “Services Platform” Architecture Applications and Solutions Live Platform Services Cloud Infrastructure Services Global Foundation Services
  16. 16. What are the Implications for the Enterprise?
  17. 17. The FIT Project An investigation into 21st Century IT Sourcing UK Architect Council
  18. 18. FIT Hypotheses 1. IT is moving to a multi-sourcing model 2. Sourcing/Service providers will deliver services at finer levels of specialisation 3. Services will be provided both on and off-premise 4. Emerging architectures (SOA, SaaS & Web 2.0) are enabling this transformation
  19. 19. Workshop 1 Pro’s and Con’s of new sourcing strategies
  20. 20. What’s going to cause the chosen sourcing strategies to succeed? 1. Scalable 2. Cost reduction 3. Economies of scope • Works well in constrained problem domains 4. Upgrade speed 5. Benefits of competition 6. Agility/Time to market 7. Leverage vertical knowledge 8. Efficient (when works!) 9. Easy management of risk (SLAs etc) 10. Other (Please specify)
  21. 21. What’s going to cause the chosen sourcing strategies to fail? Organisations don’t know its own IT – Too many unknowns 1. Loss of control – vendor lock-in 2. Risk – data ownership and security 3. 4. Ability of vendor to provide service 5. Culture clashes across organisations 6. Metrics (SLAs) different, hard to define/synchronise, not covered 7. Management overhead 8. Knowledge share/retention overhead/ Deskilling 9. Lack of accountability 10. Customer experience 11. Stifles innovation 12. Vendor goes out of business 13. Other (please specify)
  22. 22. Workshop 2 Making things tangible
  23. 23. Making things tangible • Sourcing opportunities • What tangible opportunities exist for portfolio-based sourcing to add value to the organisation? • Transition strategy • What practical steps need to be taken, in what order and who realistically needs to be involved? • Organisational structure/processes • What level of organisational maturity, and what pre-requisites need to be in place before embarking? • Success criteria • What criteria and metrics can be used to measure and judge success as things progress?
  24. 24. From 4 perspectives Business IT Solution Organisation Infrastructure
  25. 25. Setting the Context • BPO is working so we don’t need to revisit that • Service provision is pretty well established in every tier of IT • However it is not always shaped/delivered as a service • Starting point is to consider what the organisation doesn’t want to do for itself • Ultimately, about turning resources into a service i.e. good old utility computing • Manage less/more focused
  26. 26. Challenges • Self-knowledge – does organisation understand itself? • Trusting outsourcers to manage your business • Resistance when deep knowledge held around mainframe and legacy • Technical challenges on the part of the provider • Requirement for packaged SLAs vs. Custom definitions • Can provider join into the change management process • Avoiding “over sourcing”
  27. 27. Sourcing opportunities • Needs well defined boundaries • Look for Business Capabilities • Differentiate between core & non-core • What is core is often the data not the process
  28. 28. Transition strategy • Board level sponsorship • Need to understand commercials/contracts • Know where you’re headed • Definition of an enterprise architecture • Action plan & roadmap • Strong Governance “with teeth” • Good Change management • Need to define a criteria for sourcing • Well governed selection/due diligence process • Training and change management process • Ring fence legacy while migrating
  29. 29. Organisational structure • What people need to be left in IT organisation? • Managers/co-ordinators/architects • Design authority for business design, technical design • Commercial management • Governance, change management • Business lead/IT delivered • Buy in experience at first • E.g. contract writing • Service desk should manage the problem end to end
  30. 30. Success criteria • Measurable outcomes • Operational excellence – cost savings, financial targets • Customer satisfaction • SLAs met • Demonstrable sustainable agility • Compliance with regulations • Can I transition service to another vendor? • Have to be able to measure before, during and after!
  31. 31. What could the IT of the Future look like?
  32. 32. IT Organisation of the Future Business Stakeholder Group - Board-level responsibility/ownership - Capability Owners/sponsors - Customers Commercial IP Architecture & Service & Change Department Design Management - Monitoring - IP & Data Protection - Portfolio Management - Integration - SLA/KPIs - Standards & Governance - Service Reporting - Penalties - Roadmap - Scheduling - Prime/ Sub Contracts - Design Authority - Service desk Capability Delivery Team - Supplier/Service Selection - Due diligence
  33. 33. Predictions for the future of IT 1. IT will physically 2. ITs boundaries 8. Architecture contract will expand 4. Commercials and and Design will Service management will be the key be major IT functions technology related roles 5. But these can be sourced externally too. 3. Services provided to the organisation will IT IT be at finer levels of specialisation 6. Data is the key BUT external asset to be broker providers protected over process will hide much of this 7. But this too could be hosted externally
  34. 34. Thank you! Matt Deacon mattd@microsoft.com blogs.technet.com/matt_deacon
  35. 35. © 2007 Microsoft Corporation. All rights reserved. This presentation is for informational purposes only. MICROSOFT MAKES NO WARRANTIES, EXPRESS OR IMPLIED, IN THIS SUMMARY.

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