Business Drivers of SDN by Paul Wiefels, Chasm Group


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The Chasm Group: The Future of Enterprise IT - From Systems of Record to Systems of Engagement

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Business Drivers of SDN by Paul Wiefels, Chasm Group

  1. 1. #SDN2012 THE FUTURE OF ENTERPRISE IT From Systems of Record to Systems of Engagement Paul Wiefels
  2. 2. THE CHASM GROUP: MARKETING & MANAGEMENT CONSULTANTS TO THE TECHNOLOGY INDUSTRY Executive advisory & counsel Go-to-market execution & plan development Branding & product development alignment Corporate strategy & positioning development Product market development strategy Strategy “tune-ups” Management seminars & workshops Thought leadership: books and articles
  3. 3. ENTERPRISE IT: THE CURRENT STATE SYSTEMS OF RECORD ARE LARGELY COMPLETE • Transaction systems for global commerce . . . • Financials, Order Processing, Inventory, HR, CRM, Supply Chain • Mainframes, minis, client-server, PC, Internet-enabled, SaaS • Drove three decades of investment • Home-grown data centers • OLTP/ERP type applications and Business Intelligence were key drivers • Y2K put the capstone on this trend • Pulled forward a half decade of investment • Enterprise IT has had to go through a long ―digestive‖ period • Focus in past decade has been on efficiency investments 3
  4. 4. IT INNOVATION DURING THE PAST DECADE Enterprise IT Consumer IT BRCD Application & System Opportunity Application & System optimization – transformation – Cheaper, faster, better to Enable access, broadband, support Systems of Record. mobile to support Systems of Engagement. Beware disruptions. Embrace disruptions. 4
  5. 5. REDEFINING INFO TECHNOLOGY FOR CONSUMERS: THE DIGITIZATION OF HUMAN CULTURE • Access • Broadband • Mobile • Infinite content, no barriers to entry, no barriers to exit • Communications are globally democratized • Microsoft, Google, Facebook, Wikipedia, OpenTable • Pictures, video, shopping • Internet touches both the mind and the heart • Skype, iTunes, YouTube, Pandora, Hulu, Netflix, Zappos • • • • PC for emerging markets MacAirs and Ultrabooks iPhone and iPad set the bar in mature markets IM, email, camera, game, wallet, magazine. . . even a phone! How will this impact enterprise IT? What will drive change? 5
  6. 6. THE BIG DISCONNECT How disruptive do you think Consumer IT will be to Enterprise IT? 6
  7. 7. THE FUTURE OF ENTERPRISE IT: AN EVOLUTION IN INFRASTRUCTURE Platform as a Service Software as a Service Infrastructure as a Service Virtualized Data Centers Composite Apps in the Cloud Enterprise Apps over the Internet Managed Hosting Servers, Storage, and Networks Many IT vendors doing this today 7
  8. 8. THE FUTURE OF ENTERPRISE IT: A REVOLUTION IN APPLICATIONS Video on Demand Instant Orientation Instant Communication Info on Demand YouTube, Netflix, Facetime GPS, Google Maps, Navigation, Personal healthcare monitoring SMS, Facebook, Twitter, Skype Google, Bing, Yelp, Wikipedia This is radically new 8
  9. 9. SYSTEMS OF ENGAGEMENT: EVOLUTION MEETS REVOLUTION Evolution in Infrastructure Revolution in Applications  Focuses on Systems of Record  Focuses on Systems of Engagement  Continuation of current trends and investments  Totally new end user experience  Not fundamentally disruptive  Radically discontinuous What will drive enterprises to invest in systems of engagement? 9
  10. 10. SYSTEMS OF ENGAGEMENT FOR B2B Can you do a demo for the field? • Enterprise Facebook • Enterprise YouTube/GoToMeeting Let’s make sure everyone fills out the budget the same way! • Enterprise LinkedIn • Enterprise App Store • Enterprise Chatter • On demand conferencing • Who knows energy and speaks Chinese? Global presence detection Let’s get everyone together now! • • Let’s look at the data and get Charlie to walk us thru it Mobile access to everything Social content management • With more revolutionary applications to come . . . . Who is the VP Operations in Client X? How is the quarter coming? I need to talk to Harry— where is he? What got decided at the last project meeting? 10
  11. 11. SYSTEMS OF ENGAGEMENT FOR B2C Who’s in the market today? Timely! It just seems to get smarter!! Just the way I like it! • • • • • • • • • • Collaborative filtering Behavioral targeting Personalized transactions Birds of a feather flock together! Now that’s what I like! Location-based services Machine learning Lucky you added that extra inventory! Fraud detection Foiled again! Predictive analytics Multi-channel engagement Near-field transaction processing No more plastic! And lots more to come . . . 11
  12. 12. SPECIALISTS ALL AROUND: THE RISE OF COLLABORATIVE BUSINESS NETWORKS • Fundamental structure of business changing • OLD: Hierarchically organized integrated enterprises • NEW: Business networks of specialized enterprises • Business networks increase demand for: • Communication – Coordination - Collaboration • Relationship management and trouble shooting • Challenge: To engage with peers globally to solve problems • Answers are not in Systems of Record • They are in other people’s (and often other companies’) heads 12
  13. 13. B2C SYSTEMS OF ENGAGEMENT: COMPELLING ONLINE EXPERIENCES ARE CORE • From Transactions to Interactions on the web • Battle for customer preference at the moment of choice • Pressure to be relevant in real time • Goal is maximum exposure and transparency • The Answers are in computers or databases • They are tiny needles in massive haystacks • Must find and activate them before prospect moves on • This information is gold to hackers, cybercriminals, spies, etc. • No time for people—or disk drives—to be in the loop • Show it all and show it fast 13
  14. 14. HOW IT PLAYS OUT TODAY: THE CURRENT SYSTEMS OF RECORD STACK… Business Process Consulting Desktop Environment Business Layer Transaction Applications Business Intelligence Document-based Collaboration Web Application Infrastructure Compute Processes Systems Management Infrastructure Database Operating System Mainframes Compute Engines Servers Storage Data Network High-Performance Microprocessors 14
  15. 15. …NOW MORPHING TO MEET USER DEMANDS Business Layer Business Process Consulting User Experience Design Desktop Environment Mobile Clients Transaction Applications Apps Business Intelligence Real-Time Analytics Document-based Collaboration Live Collaboraborative Sessions Mobile Application Infrastructure Web Application Infrastructure Compute Processes Systems Management Infrastructure Public/Private Cloud Management In-Memory Caches Database Virtualization System Operating Platforms Compute Engines Mainframes Servers Infrastructure as a Service Storage Voice/Data/Video Network Data Network High-Performance Microprocessors Low-Power Microprocessors 15
  16. 16. SYSTEMS OF RECORD & SYSTEMS OF ENGAGEMENT • Systems of Record (SORs) create efficiency • Impossible to do global commerce without them • Focus on cost, quality, and contractual commitments • Systems of Engagement (SOEs) create effectiveness • Address the complexities of global business relationships • Create compelling consumer interactions on line • Sought after architecture • SOEs operating on top of and in touch with SORs • This is where the evolution in infrastructure comes in Networks must be agile, changeable, and fast to deploy. All of which means they will need to be virtualized. 16
  17. 17. TWO DIFFERENT TRAJECTORIES Systems of Record Stack Systems of Engagement Stack Business Process Consulting User Experience Design Desktop Environment Mobile Clients Offered as part of a Transaction Applications massive suite of Business Intelligence applications Document-based Collaboration Best Apps of Breed for Real-Time Analytics Real-time differentiation Live collaborative Sessions Web Application Infrastructure Mobile Application Infrastructure Systems Management Infrastructure Public/Private Cloud Management Advantage: Relational Data Management Huge SOR vendors Operating System Mainframes Servers Advantage: Next-gen Start-Ups In Memory Caches Virtualization Platforms Infrastructure as a Service Storage Data Network Voice/Data/Video Network High-Performance Microprocessors Low-Power Microprocessors 17
  18. 18. KEY TAKEAWAYS • Intense and global competition is causing companies to evolve how they pursue, acquire, monetize, and sustain relationships with customers and partners. • Both online and traditional businesses are shifting their customer focus from a transactions orientation to that of pursuing and nurturing ongoing interactions. • The need for employees often globally disbursed to collaborate with one another real-time as never been greater. • This requires flexible networks. Time to value can’t be paced by time to connection. • Security challenges abound. The more open, the more vulnerable. 18
  19. 19. #SDN2012 SDN Security Seminars 2012 Technical Track