Clouds of connection sept2011 acm aitp


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Presentation to annual joint meeting of L.A. Chapters, September 2011 in Culver City

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  • We won’t be doing any “road maps” today. Everything we’re here to discuss with you is either ready for use, or at a minimum ready for your evaluation, right now.
  • Clouds of connection sept2011 acm aitp

    1. 1. Where the Brains Are:IT Update, Autumn 2011<br />Peter Coffee<br />VP & Head of Platform Research<br /> inc.<br />
    2. 2. Safe Harbor<br />Safe harbor statement under the Private Securities Litigation Reform Act of 1995: This presentation may contain forward-looking statements that involve risks, uncertainties, and assumptions. If any such uncertainties materialize or if any of the assumptions 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, including any projections of subscriber growth, earnings, revenues, or other financial items and any statements regarding strategies or plans of management for future operations, statements of belief, any statements concerning new, planned, or upgraded services or technology developments and customer contracts or use of our services.<br />The risks and uncertainties referred to above include – but are not limited to – risks associated with developing and delivering new functionality for our service, our new business model, our past operating losses, possible fluctuations in our operating results and rate of growth, interruptions or delays in our Web hosting, breach of our security measures, risks associated with possible mergers and acquisitions, the immature market in which we operate, our relatively limited operating history, our ability to expand, retain, and motivate our employees and manage our growth, new releases of our service and successful customer deployment, 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 report and on our Form 10-Q for the most recent fiscal quarter: these documents and others are available on the SEC Filings section of the Investor Information section of our Web site. <br />Any unreleased services or features referenced in this or other press releases or public statements are not currently available and may not be delivered on time or at all. Customers who purchase our services should make the purchase decisions based upon features that are currently available., inc. assumes no obligation and does not intend to update these forward-looking statements.<br />In Other Words:Everything That You See Hereis Real<br />
    3. 3. What are the Smart People Doing? Faster… <br />Silicon Photonics<br />performance/watt has been flat over time (Google Labs, ’05)<br />Ge lasers 100 times faster than intra-chip wires (MIT)<br />reduced power losses, easier to cool<br />‘seed & melt’ detector fab: cheaper than vapor deposition (IBM)<br />Memristors (HP, IBM, Hynix)<br />roughly twice the density of flash <br />more than 1,000 times faster<br />millions of rewrite cycles<br />Metamaterials (Purdue)<br />new semiconductors ‘steer’ light with electric fields<br />aluminum and gallium doping agents reduce optical losses<br />
    4. 4. What are the Smart People Doing? Safer… <br />Formally verified operating system (Australia)<br />Application ‘whitelisting’<br />Facebook “Custom” button<br />What do they have in common?<br />Finally, a trend toward granting specific permissions rather than trying to anticipate and block attacks and errors<br />
    5. 5. What are the Smart People Doing? Smarter… <br />Big Data<br />“Time is lost, confusion results and money is spent.”(1917 complaint about the telephone)<br />‘volume, velocity, variety’ (Gartner)<br />beyond scientific computing<br />Bigger Tools<br />Hadoop (Facebook / Cloudera)<br />Informatica<br />ImprovingAlgorithms &Visualizations<br />Informatica<br />
    6. 6. What are the Smart People Doing? Smarter2… <br />Collaboration analysis / anonymity (Yahoo!, 4Chan)<br />‘Contestification’ (Frito-Lay, Toyota)<br />‘Chatterlytics’<br />What do they have in common?<br />Formalizing measurement ofinteraction and influence<br />Balancing desire for credit withbenefits of anonymity<br />Rewarding contribution, ratherthan mere activity<br />
    7. 7. Connecting it All Together<br />Bandwidth pooling<br />BitMate (Pakistan) effectively doubles connection speed<br />downloaded by users in 173 countries<br />Tagged-packet networking (USC / GM)<br />instead of sending packets to an address,label with data attributes<br />‘This is what I’m about’<br />‘This is where I’m useful’<br />‘This is when I’m outdated’<br />Task-inferring search (Bing)<br />Data security and robustness (RSA)<br />
    8. 8. Today’s Maps are Drawn by Our Connections<br />(Arcs Represent Number • Distance of Facebook ‘Friend’ Links)<br />Pop quiz: where is Beijing?<br />
    9. 9. Ten Year Computing Cycles<br />10X more users with each cycle – but this time, with a difference<br />“Whereas earlier entrepreneurs looked at the Internet and saw a network of computers, Zuckerberg saw a network of people.” – Time, 15 Dec. 2010<br />’10s Social<br />Revolution<br />’00s Mobile <br />Cloud Computing<br />’90s Desktop <br />Cloud Computing<br />’80s Client/Server Computing<br />’70s Mini <br />Computing<br />’60s Mainframe <br />Computing<br />SocialApps<br />Data <br />Management Apps<br />Business Logic Apps<br />Process <br />Automation Apps<br />Web Apps<br />Mobile Apps<br />
    10. 10. Social Revolution:<br />Social Networking Surpasses Email<br />1.1 <br />billion<br />social <br />users<br />Social Users<br />Email Users<br />2011<br />2010<br />2007<br />2008<br />2009<br />Source: Comscore, June 2011<br />
    11. 11. Social Revolution:<br />The WAWKI* is Shrinking<br />4 hours<br />per month<br />Web Usage (minutes)<br />* Web As We’ve Known It<br />2010<br />Sources: Ben Elowitz, Wetpaint / comScore<br />2011<br />
    12. 12. Social Revolution:Mobile Apps Used More than Web Browsers<br />81<br />minutes<br />per day<br />Facebook mobile users are 2X more active than desktop users.<br />Mobile Apps<br />Browser<br />-<br />Source: comScore, Alexa, Flurry Analytics <br />
    13. 13. Social Revolution:<br />Device Choice Indicates New Use Cases<br />16 billion<br />mobile devices by 2013<br />Tablets <br />Smartphones<br />Laptops<br />Desktop<br />2006<br />2007<br />2008<br />2009<br />2010<br />2011E<br />2012E<br />2013E<br />Source: Gartner Research; Smartphone, Tablet, and PC Forecast, December 2010.<br />
    14. 14. Social Revolution:<br />Apple / Android App Store Volume Exploding<br />750,000<br />Apps<br />Number of Apps<br />7/08<br />10/08<br />4/09<br />7/09<br />11/09<br />4/10<br />9/10<br />6/11<br />
    15. 15. Social Revolution:Employees Forcing the Pace of Change<br />CIOs Surveyed on Tablet Usage<br />“<br />...fastest ramping mobile device ever.<br />”<br />2011<br />Employee-owned<br />Purchased for Employees<br />Not Allowed<br />2010<br />2006<br />Morgan Stanley, “Tablet Demand and Disruption”, February 14, 2011.<br />
    16. 16. A Critical New Role for “Cloud”<br />Old Cloud: Centralization + Automation  Cost Reduction<br />Distant resources: considered to be a tolerable nuisance<br />Security: assumed to be a challenge, and compliance a barrier<br />‘Cloudwashing’ of legacy products: tempting and easy<br />New Cloud: Connection + Simplification Acceleration<br />Data and process in cloud are closer to everything else you need<br />Security is part of the service; audit trails are easy to provide<br />You can’t ‘connectwash’ a server, no matter how much virtualization you apply or how many ‘private clouds’ you proclaim<br />In false clouds, you pay for resources……in true clouds, you pay for opportunities<br />
    17. 17. Bank of America’s New Branch is Twitter on the Salesforce Service Cloud<br />1,100 tweets per day handled by agentsAutomatic conversionof tweet-to-caseFast Resolution with case<br />
    18. 18. Gatorade Joins Customer Conversations on Social Media<br />Gatorade Social Monitoring CenterEngaging athletes on social media7% increase in sales250% traffic increase in product education<br />
    19. 19. Products Become Participants<br />Instant updates, not limited by human speed or attention<br />Effective integration of hardware speed & human judgment<br />The next new application opportunity<br />public String CloudThoughts{ get; set;}<br />Mike Leach,<br />
    20. 20. Enterasys Devices Are Now Social <br />Network congestion in Asia.<br />Facebook, Twitter, and Chatter notifications <br />Users receive alarms and alerts<br />Enables rapid response<br />Reduces system downtime<br />
    21. 21. Because ‘social’ is a model, not an app<br />Collaborative process creation & maintenance<br />Best practice sharing<br />Integration with feeds and other social channels<br />Social process monitoring<br />Andrew Leigh.I need to create a new customer service process for the iPad, can you guys help?<br />New process created: iPad Tier 1 Support Process (Goals: Run time, 5 min)<br />Steve Wood. Great – I can help with the case escalation by linking in the Apple Escalation Process.<br />Varadarajan Rajaram. Yes, I know this product well – there are a bunch of solutions I can build into this process.<br />
    22. 22. Difficult to Track Conversations Across Customer Social Networks<br />What are your <br />customers saying?<br />200million<br />tweets/day<br />1.5 billion<br />Facebook <br />posts/day<br />Billions<br />of blogs & <br />communities<br />
    23. 23. What Role for “The Crowd”?<br />Sift more dirt, find more gold<br />With modern machines/methods, gold mines areviable at 1 g. Au / ton of ore<br />Costs of collecting/sifting the crowdstreamcontinue to fall<br />The oddly opposite models:<br />Delphi Method: people with wildly varying knowledge, exposed to each other’s opinions, produce consensus surpassing the sum of the parts<br />Open-Source Method: Individual contributions, appropriately incented (if only with ego rewards), yield cost-effective combined results<br />Can the crowd survive its success?<br />“Even mild social influence can undermine the wisdom of crowd effect.”<br />Proceedings of the National Academy of Sciences, 16 May<br />Vital elements: diversity, independence, decentralization, aggregation<br />
    24. 24. From Data to Information<br />
    25. 25.
    26. 26. Chatter for 320,000 Employees<br />Toyota Vehicles<br />Social Customer Profile<br />Dealers/Distributors<br />Toyota Friend Mobile<br />Toyota Friend Website<br />1-800-4-My-Toyota<br />Manufacturing/<br />Finance<br />Toyota Friend on Youtube<br />Toyota Friend on Facebook<br />Toyota Friend on mixi<br />Toyota Friend on Twitter<br />Toyota Social Enterprise<br />
    27. 27. Cloud Connection  Margin Growth and Brand Differentiation<br />“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.”<br /><br />“CE device margins are razor thin, and the promise of maintaining an always-on connection to the customer after the point of sale is mighty enticing. With a connected device, there are all kinds of new opportunities to present offers and services that can generate ongoing monthly revenue. Simply put, connected devices make connected customers.”<br />Richard Schwartz, President and CEO, Macheen<br />
    28. 28. Objections Are Being Addressed<br />Security: American Bankers Association blog says an enterprise should “verify that any outsourcing partner meets its standards. However, once verified, a cloud partner can actually provide greater security.”<br />Availability:<br /> now routinely exceeding 500M transactions/day<br />In June 2011, achieved 100% of planned availability<br />Compliance: United States’ National Institute of Standards and Technology says cloud-resident data “can be more available, faster to restore, and more reliable… [and] less of a risk than having data dispersed on portable computers or removable media.”<br />
    29. 29. Trust is Enabled by Transparency<br />
    30. 30. Data Stewardship is a Practice, not a Technology<br />Data protection regulations<br />Where can it be stored?<br />Who’s allowed to see it?<br />Peel the onion of ‘compliance’<br />Anonymize/encrypt/partition specific fields<br />Cloud disciplines can enhance auditability<br />Role-based privilege assignment<br />Actions taken using granted privileges<br />Looking at the laws is not enough<br />USA PATRIOT Act inspires concern from global collaborators who may fear a multi-tenant ‘dragnet’…but…<br />Court rulings already encourage escrow/isolation of targeted data when a multi-tenant system is involved<br />
    31. 31. “Do it yourself” vs. “Who you gonna call?”<br />Potential benefits from transitioning to a public cloud computing environment:<br /><ul><li> Staff Specialization
    32. 32. Platform Strength
    33. 33. Resource Availability
    34. 34. Backup and Recovery
    35. 35. Mobile Endpoints
    36. 36. Data Concentration</li></li></ul><li>Cloud Credibility: Option of First Resort<br />
    37. 37. The Upsides Become Compelling<br />Innovation:<br />Old: Windows XP is 10 years old, but runs almost half of the world’s PCs<br />New: In time between Win 7 and SP1, had six upgrades<br />Collaboration:<br />Organizations adopting Chatter routinely see 30%+ reduction of email<br />When people are given a choice, they choose the social model<br />Competitive Advantage: McKinsey Global Institute finds that<br />“fully networked enterprises…[use] collaborative Web 2.0 technologies intensively to connect the internal efforts of employees and to extend the organization’s reach to customers, partners, and suppliers”<br />“[they] are not only more likely to be market leaders or to be gaining market share, but also to use management practices that lead to margins higher than those of companies using the Web in more limited ways.”<br />
    38. 38. Cloud leverage empowers innovatorsRapid iPad Deployment for Patient Prescreening<br />One developer with no prior training built a mobile app in just 4 days<br />Deploying to Medical Directors, Program Directors in hospitals on iPhones and iPads<br />Eliminates paper forms, workflow cuts response time by more than 60%<br />Cut processing time from 18 hrs to less than 60 min<br />“We’re blown away by how we built a mobile healthcare application on with one person injust 4 days…<br />The same app built in [previous models] would have taken over 3 months”<br />
    39. 39. The Rising Floor of “Easy”<br />Bulldozers greatly reduce the jobs for ditch-diggers…but they greatly increase the number of jobs for landscape architects and golf-course designers<br />Old IT:<br />Make capacity decisions once a year, then keep the pedal to the metal and wish that you had more<br />Make security decisions based on perimeters…and hope for the best<br />New IT:<br />Make capacity decisions every hour—or less—and continually evaluate business value of every marginal cycle<br />Make security decisions based on relationships…and monitor use of the privileges you grant<br />
    40. 40. The Future Has Already Happened<br />When a bomb explodes, it takes some time before you see anything happen…but the energy has been released<br />Three fundamental energiesare in play:<br />Connectivity<br />Capacity in place<br />Protocols and power management<br />Mobility<br />Devices drive cloud demands<br />Social interaction model<br />Dominating on- & off-job interactions<br />
    41. 41. ‘Cloud’ only hints at what you don’t need to do<br />‘Social’ describes what your workers and customers want<br />‘Mobile’ describes what they need<br />‘Open’ describes the freedom to do it the way that works for them<br />Cost reduction is not the path to leadership<br />Cloud models make it easier to match IT costs against business tasks<br />Superior ROI, and compelling improvement in time-to-market, change the terms of debate surrounding IT investments and resources<br />The job of the ‘IT professional’ is changing<br />Integrator of services, rather than buyer and operator of technologies<br />Instigator and manager of innovative tools and processes<br />Enabler and custodian of relationships and insights<br />In Conclusion<br />
    42. 42. Peter Coffee<br />VP & Head of Platform Research<br /><br /><br /><br /><br />Q&A?<br />