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IT Next January 2010 Issue


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IT Next Magazine is published by 9.9 Media and is basically targeted to the senior IT professional community.

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IT Next January 2010 Issue

  1. 1. DEC 2009-JAN 2010 / RS. 150 VOLUME 01 / ISSUE 01 Taxation: Is your IT infrastructure ready 30 Virtualisation: Has34 the fizz settled or is Tech for Logistics: How IT can help save every 38 THE BIG Q How to track IP theft for GST roll out? it another passing fad? paisa you earn? and prevent it? Pg.53 ARE YOU THE NEXT CIO? 7 S Ilango, Senior Manager Sushil Aggarwal, STEPS Aditya Birla Group Leader-IT Marathon Electric India Rakesh Mohan Project Manager TO THE Dhiraj Sinha, Tech Lead Dell Perot Systems Flytxt TOP SEAT PAGE 16 15 MINUTE Jojo Jose GM (Systems) GTN Group MANAGER Easy if you are willing to change your mindset A 9.9 Media Publication PAGE 47
  2. 2. EDITORIAL It’s time for the Maybach The $825 Model T launched in 1908 by Henry Ford was not just the first ‘affordable’ car. It also introduced the concept of “IT Next is more like a assembly line in the automobile sector. This opened custom-built Maybach a floodgate for others to follow. The concept of “one size fits that has been designed all” became universal, spreading quickly across all sectors, including to suit your needs and mainline media, which adopted it for reaching the masses. More recently, requirements” niche magazines have also gone the assembly line way, becoming all things S H U B H E N D U PA R T H to all people. So, when we decided to launch a new publication targeted to IT Managers, one thing was clear—ours would be no assembly line. We decided to take a tailor-made approach like the top-of-the-line custom- built German car, the Maybach. The result is a thoughtfully crafted IT Next that is customised to your needs. We began with a survey of the IT Managers in India to confirm our hypothesis that this is a community that wields considerable influence and is far more extensive than the CXO fraternity, which several magazines and portals focus on. Indeed, the survey revealed that there is a yawning gap in the way existing magazines, including majority of B2B IT publications, cater to the specific needs of the IT Manager. Not surprising then, that you overwhelmed us with your views, ideas and concerns through your responses to our survey. In fact, several stories in this launch issue are based on the suggestions you gave us. We hope to further build on your inputs in launching our online version,, in the coming days. Blogs To Watch! I sincerely hope that you like IT Next not only in terms of the content and P HOTOG RA P H Y: DR LOH I A design but also for its theme and philosophy. Believe me, we have toiled over every aspect of this eclectic product. Unlike Ford’s Model T, IT Next Your views and opinion matter is more like a custom-built Maybach that has been designed to suit your to us. Send your feedback particular needs and requirements. on stories and the magazine at shubhendu.parth@9dot9. So, do let us know your reactions and join us in the journey to facilitate in or SMS us at 567678 (type and celebrate your growth as a technocrat. ITNEXT<space>your feedback) D E C 2 0 0 9 – J A N 2 0 1 0 | IT NEXT 1
  3. 3. CONTENT Fa c e b o o k: ht t p : // w w w. f a c e b o o k . c o m / ho m e . p hp # / g r o u p . p hp ? g i d = 1 9 5 67 5 0 3 05 8 2 Tw i t t e r : ht t p : // t w i t t e r. c o m / i t n e x t L i nke d I n ht t p : // w w w. li nk e d i n . c o m / g r o u p s ? g i d = 2 2 6 17 7 0& t r k = m y g _ 7 FOR THE L ATEST TECHNOLOGY UPDATES GO TO ITNEXT.IN DEC ’09-JAN ’10 V O L U M E 0 1 | I S S U E 0 1 u g r p _ ov r 09 SURVEY STEPS TO THE TOP Page SEAT BASED ON AN EXTENSIVE SURVEY OF IT MANAGERS, IT Next presents a handy guide for technology managers who have their hearts set on 16 becoming a CIO INSIGHTS BOSS TALK INTERVIEW 23 Clicking it big Communication as a Service (CaaS) is set to change the way an enter- prise communicates and collaborates today C OV E R P H OTO G RA P H Y: DR LOH I A , M EX Y X AV IE R & SA N TOS H BH AS K A R 26 No mishaps for this mail e-Mail security needs to guarantee perimeter safety, confidentiality and non-repudiation 28 Top 5 mobile applications C OV E R DES I G N : JAYA N K N A RAYA N A N Technologies that can help enterprises go mobile 30 Ready steady GST The forthcoming GST regime will compel IT managers to execute a 05 Innovate to add value | 44 “There was no recession complete realignment of the IT infrastructure. Are you prepared? Birlasoft CEO, Arup Gupta on in India” | SAP’s Asia-Pacific importance of innovation and Senior V-P, Simon Dale, discusses 34 Has the fizz settled? how it can help IT managers the global slowdown and the Is it time to assess the benefits of server virtualisation? succeed professionally company’s changing strategy 2 IT NEXT | D E C 2 0 0 9 – J A N 2 0 1 0
  4. 4. ITNEXT.IN MANAGEMENT Managing Director: Dr Pramath Raj Sinha Printer & Publisher: Vikas Gupta EDITORIAL Group Editor: R Giridhar Editor: Shubhendu Parth Consulting Editor: Pravin Prashant Page LONG WAY TO GO | How ICT intervention in Associate Editor: Shashwat DC Sr Correspondent: Jatinder Singh 38 the logistics sector can make a huge difference DESIGN Sr Creative Director: Jayan K Narayanan OPINION 52 Manage IT | 5 simple steps Art Director: Binesh Sreedharan 12 Tech Talk: On cloud nine! to greening your enterprises Associate Art Director: Anil VK | by Dr Manoj Saxena, CEO, Net- Manager Design: Chander Shekhar Edge Computing Solutions OFF THE SHELF Sr Visualisers: Anoop PC, Santosh Kushwaha 60 HP shrinks your world | A Sr Designers: Prasanth TR & Anil T 14 Money wise: The Penny sneak preview of enterprise prod- SALES & MARKETING route to Pounds by Ratnakar ucts, solutions and services VP Sales & Marketing: Naveen Chand Singh Nemani, CIO & Head—IT Projects (09971794688) Wing, VST Brand Manager: Siddhant Raizada (09990388390) National Manager-Events & Special Projects: 15-MINUTE Mahantesh Godi (09880436623) MANAGER National Manager Online: Nitin Walia 47 Predicting IT right | (09811772466) Strategic IT forecasting is a GM South: Vinodh Kaliappan(09740714817) challenging task, but can make a THE BIG Q GM North: Pranav Saran(09312685289) GM West: Sachin N Mhashilkar(09920348755) difference to your business 53 Who stole my washing Assistant Brand Manager: Arpita Ganguli machine? | How to track IP Co-ordinator Ad Sales, MIS, Scheduling: 48 Office Yoga | Asanas for a theft and prevent it Deepak Sharma busy manager CUBE CHAT PRODUCTION & LOGISTICS 50 Get back to the class- 58 Pining to be a TV star | Yes, Sr. GM Operations: Shivshankar M Hiremath room! | Choosing the right skills professional achievers too can Production Executive: Vilas Mhatre to upgrade is key to beating the nurture off-beat aspirations and Logistics: MP Singh, Mohamed Ansari, recession blues Rajesh Aggarwal, IT Manager, Shashi Shekhar Singh D P Jindal Group is one of them OFFICE ADDRESS Nine Dot Nine Mediaworx Pvt Ltd K-40, Connaught Place, Outer Circle, REGULARS New Delhi–110 001, India Editorial _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 01 Printed and published by Vikas Gupta for Industry update_ _ _ _ _ _ _ _ _ _ 06 Nine Dot Nine Mediaworx Pvt Ltd K-40, Connaught Place, Outer Circle, Tech indulge _ _ _ _ _ _ _ _ _ _ _ _ _62 New Delhi–110 001, India Open debate _ _ _ _ _ _ _ _ _ _ _ _ _63 Editor: Vikas Gupta My log _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 64 K-40, Connaught Place, Outer Circle, New Delhi–110 001, India ADVERTISER INDEX Printed at: Nutech Photolithographers IBM Reverse Gatefold B-240, Okhla Phase–I, Canon IFC P L E AS E New Delhi–110 020, India R ECYC L E Samsung 10-11 Page TataComm 13, 27, 43 THIS M AGA Z I N E AND R E M OVE Sybase IBC 54 EMC BC I N S E RTS B E FO R E RECYCLING © A L L R I G H TS R ES E R V E D : R E P R O D UC T I O N I N W H O L E O R I N PA RT W I T H O UT W R I T T E N P E R M I S S I O N F R O M N I N E D OT N I N E M E D I AWO R X P V T LT D I S P R O H I BI T E D. D E C 2 0 0 9 – J A N 2 0 1 0 | IT NEXT 3
  5. 5. BOSS TALK | ARUP GUPTA PROJECT MANAGEMENT Innovate to add value oday, IT managers, I think, have T become very inward-focused in terms of adhering to process, cost and scope. These are all good things from the Capability Matu- rity Model (CMM) perspective, but are they really meeting the expectations of the customer? Though we may follow all CMM processes faith- fully, the customer is really looking for value- add beyond their specifications. Real successful IT managers are able to add value, enabling “The need of the hour is to find the best customers to become more competitive in their business spheres. solution for a particular problem, rather IT managers, in addition to knowing the than treat it just as a routine affair” software delivery process, need to be aware of technologies and domains so that they can choosing the more fruitful career path— deliver the best possible solution to a particular managerial or purely technological. Some problem. This is what we call an innovative Indian companies offer a clear growth path in solution. That is the transformation that I would pure technology and pure domain, but still like to see in the mind set of all IT managers. most professionals opt for the faster managerial IT managers abroad would possibly be less route. Most Indian companies try to hire project stringent about processes, giving more attention managers or senior practice managers with some to adding value in terms of domain, new SUGGESTION BOX knowledge of the latest domain technologies, technology and architecture. So how does one but as I said earlier, some of the deficiencies in change the mind set of an Indian IT manager? managers in regard to technology and domain One needs to start thinking out of the box and can be compensated by bringing all stakeholders bringing together various stakeholders in the together. I have seen some of the best-of-the- problem like domain expertise, technology breed IT companies in India do so. expertise and possibly the architecture group for Yes, a pure technocrat too can become a brainstorming session. That is exactly what the a CEO. I myself hold a master’s degree in people abroad do. computer science and have grown through the If the problem is too complex, outside ranks. However, more boards and promoters consultants and talent can be involved, rather The book talks are inclined to hire CEOs who can showcase than opting for the solution that exists in house about how to add diversity in terms of technology and domain, and somehow make it fit the particular problem. value and make cli- and now, also an MBA degree. This ensures that P HOTOG RA P H Y: D R LO H IA I am not laying undue emphasis on routine ents more competi- with overall grooming, the individual can solve things like operational efficiency and delivery. tive. It also has tips the complex sets of problems being faced by The need of the hour is to find the best solution on how to build the companies today. for a particular problem, rather than treat it just winning team. The author is CEO of Birlasoft. He has more than 30 years as a routine affair. WRITER: JIM COLLINS experience in the IT industry and has previously worked P UBL I S H E R : H A R P E R BUS I N ES S IT managers are often in a dilemma about PRICE: INR 626.00 with Polaris and TCS D E C 2 0 0 9 – J A N 2 0 1 0 | IT NEXT 5
  6. 6. UPDATE I N D U S T R Y TRENDS UPDATE DEALS PRODUCTS SERVICES PEOPLE promises to provide an online platform for software developers to create their own programs, and space for customers to store data. The service had been in testing phase for about a year and will go fully live at the beginning of next year, according to Microsoft’s chief software architect Ray Ozzie. Big Blue (IBM) also raised the stakes by launching a new cloud computing service, similar to that from Amazon and Dubbed as the ‘Smart Analytics Cloud’, it is IBM’s biggest cloud computing service yet and will be at first The cloud gets MS and IBM enhanced their cloud adopted internally by the company. Meanwhile, on the domestic more pervasive commit- ments, by front, companies like Reliance and Airtel have already TECH TRENDS | There was much reason to cheer for the cloud comput- launching launched cloud service. Also, ing front as bigger players made cloud announcements. While, it is services Zenith Infotech has entered the still early days for the cloud industry, which Gartner Research esti- based on the space through its private cloud mates will ring up sales of about $3.4 billion this year, the momentum model computing platform PROUD, has started building up with two biggest software giants, Microsoft which it is positioning as a single and IBM, announcing their plans. centralised computing system Microsoft, which seemed to have missed the cloud bus, announced that can replace the need for that it will roll out the long-awaited Azure system on January 1, 2010. customers to buy computing Azure is Microsoft’s foray into the cloud computing system and it and network hardware as separate and difficult-to-manage components. More recently, NIIT and TELEC OM Global end user spending on telecom is all set for a positive Hitachi have announced their SPEND growth in 2010, after 12 months of negative growth cloud offering for the enterprise (NUMBERS IN US$ BILLIONS) space. To begin with, Hitachi Spending on 2000 Information Systems will WAN optimisa- leverage NIIT Technologies’ data tion and SSL 1950 centre in Bangkok and create its P HOTOG RA P H Y: P HOTOS .C OM virtual private -4 .0 network 6 % 1958 % % first hub outside Japan. This will 1900 5. 3.2 1940 is less likely to be networked to their existing be influenced 1850 1879 infrastructure. The services, 2007 2009 2008 2010 1854 according to the road map, 1800 should be available from the first quarter of the next fiscal. SO U R CE: GART NER , S E PTE M B E R 2 0 0 9 6 IT NEXT | D E C 2 0 0 9 – J A N 2 0 1 0
  7. 7. YOUR PRIMARY DEFENCE LAYER EXPRESS YOUR CREATIVITY COOL YOUR DATA UPDATE Norton’s NIS 2010 claims to enhance user Genius has introduced new range of Extreme Networks has introduced a 10 experience with new fea- Graphic Tablets—the EasyPen i405 and Gigabit Ethernet switch, that promises tures like Quorum and safe the MousePen i608. It features 30% power sav- web protection. The product two buttons and 1024 ings, for the next is Windows 7 compatible level pressure sen- generation data and available at Rs 1,450 sitivity for control over centre, cloud com- for a single PC license. drawing or writing. puting and hosted environments. LinkedIn opens up APIs were evaluated on a case- by-case basis, where priority was given to “integrations that provide the most value to the greatest TECH TIDINGS | Popular net- number of LinkedIn users,” working and professional site according to its former policy. The LinkedIn seems to be opening up LinkedIn Platform now allows to the developer community. It that access to everyone. has launched a platform for the However, there is some developer community. With this doubt on whether the move move, third party developers will is too little and a tad late, as be able use LinkedIn’s profile other networking giants like content in their business appli- Facebook and MySpace have cations and Websites. The move successfully engaged the follows the company’s decision developer community in the last to join hands with technology couple of years. There is a lot companies—IBM, Microsoft, of speculation on the pending Research In Motion (Blackberry), interface redesign, but no official and Twitter—for integrations Announces across different networks. word on it. with their respective products platform for Developers can now register at Nevertheless, by opening and solutions. While these third party to receive up its API the company has partnerships created additional developers a unique key that allows access to insured that developers can add channels for LinkedIn’s plat- discussion boards, sample code, to LinkedIn’s value by building form, the latest move would provisioning code and more. In a whole new set of standalone make LinkedIn ubiquitous the past, requests to use LinkedIn products. AROUND THE WORLD QUICK BYTE Unified communication: to touch $4.2 Bn by 2014 While the world rued the economic slowdown, there was a silver lining for the Unified Communications (UC) industry. Enterprises took to UC solutions to cut GOOGLE CO-FOUNDER SERGEY BRIN down on costs. According an ABI Research report, ON CHROME OS VS MS WINDOWS... the segment is set to jump from $302 million in 2008 “CALL US DUMB to $4.2 billion by 2014. The growth confirms the BUSINESSMEN, BUT WE REALLY FOCUS ON perception of UC as a productive and cost-cutting USER NEEDS RATHER technology rather than a fancy collaborative tool, THAN ON STRATEGIES particularly for MNCs with offices across multiple RELATED TO OTHER BUSINESSES” geographies. D E C 2 0 0 9 – J A N 2 0 1 0 | IT NEXT 7
  8. 8. UPDATE Salesforce unveils office networking tool WEB 2.0 | Understanding the significance of social network- ing and the opportunity it can bring for corporates, Salesforce. com, has introduced an in-house social networking model called Salesforce Chatter. INTERVIEW The service is intended to PAUL KAELEY provide a platform where all Director—Global Storage (Data Man- agement) Consulting Practice, Dell employees can collaborate and connect with their co-workers using the intranet. The new itself with Twitter and IT NEXT: What is your outlook of the The service, an in-house social tool will be Facebook that users are IT consulting business in India? networking and collaboration included in all already comfortable with. PAUL: There is a great opportunity tool aims at improving interaction paid editions While employees at within the India market in the IT consult- within the organisation. It enables of Salesforce Salesforce have already ing space. Our consulting approach is employees to create their profile, CRM and started using the designed to help customers of all sizes update their status, and inform chatterbox, the company to rapidly identify ways to drive more peers about “what they are doing,” is looking at making it efficiency within their data centres. Using right away. available to the corporate our Measurable Rapid Insight (MRI) The move comes on the in early 2010. approach we can quickly identify what expected line of the changing The new chatter edition customers are spending on storage and working environmemt, with will be sold for $50 per then show a path to how they can reduce enterprises swiftly evaluating user per month and will cost and complexity. how cloud and social networking include salesforce chatter, can help them reach business salesforce content and How are you addressing the needs of goals in a smoother way., the company IT managers? The service also integrates informed. Our whole strategy is focused on quickly addressing key pain points of IT manag- ers. Our storage services directly map Enterprise software market to key issues faced by our customers today—from data growth to data protec- tion and optimising storage. to grow 10% in 2009 How is Dell applying its consulting services for improved storage ef- TECH TRENDS | The enterprise software been mitigated by the large untapped ficiency? market in India continues to post a market that is adopting IT on a The need to address enterprise data healthy growth and is expected to regis- continuous scale, the report states. management issues continues to be high ter an overall 10.1% growth this year. The main driving force behind the on the agenda of CIOs and IT Managers. The recent Gartner report enterprise software market P HOTOG RA P H Y: JAYA N K N A RAYA NA N Most companies are spending a large predicts that the market will still continues to ERP, continue to improve and touch 11.8% growth in 2010. India is the fourth-largest market in the Asia-Pacific (APAC) region, and while .3 ENTERPRISE S/W GLOBAL GROWTH IN % driven by SAP and Oracle. India, China and Vietnam are the biggest drivers for the enterprise market in the $20 billion APAC market, percentage of their budget on storage and Dell’s consulting services capabilities can help quickly identify how organisations can maximise their spend and ensure that storage is matched to business needs. the impact of the slowdown 2009 which will grow by 10.2% Source: Gartner cannot be discounted it has in 2009. By Jatinder Singh 8 IT NEXT | D E C 2 0 0 9 – J A N 2 0 1 0
  9. 9. UPDATE SOCIAL NETWORKING Fujitsu, NetApp join NSE starts hands for storage to Tweet The Twitter club got a major The two boost as the National Stock companies Exchange (NSE) begun sending will jointly out live quotes of its benchmark develop inte- index Nifty on the micro-blogging grated data website. The Indian bourse cur- management rently sends out an update of the and storage Nifty index as well as the highs products and and lows every 10 minutes during solutions the trading hours. With this move, NSE has become the first Indian bourse to join the Twitter club, beating its rival Bombay Stock Exchange (BSE). Internationally, TECH ALLIANCE | In what can be termed as a single console management major bourses major realignment in the data management space, of the entire infrastructure, like NASDAQ Fujitsu, a player in software management joined and increases productivity from the US and hands with storage system vendor NetApp to pro- and operational efficiency FTSE from the vide tightly integrated and automated storage and through ease of use. With UK have already data management solutions. the combination of products established their According to the announcement made by the and solutions from both presence on Twit- two companies, they will jointly develop integrated companies, customers can ter. Meanwhile, products and services in the areas of virtualisation, reduce their capex and NSE plans to provide more infor- storage and data management, and storage services leverage IT infrastructure. mation over Twitter in the coming and solutions. The two companies further days. The NSE Tweets have been The two companies will also work towards plan to implement a global well received by the users. Within integrating NetApp’s storage management joint go-to-market strategy a week of its launch, the NSE has software into Fujitsu’s resource management for all complementary already registered about 1,600 framework, that dynamically orchestrates servers, products. The tie-up also followers.The exchange aims to networks, storage and software to run applications envisages full integration of add some more indices and tools on demand. NetApp V-series products on the social networking site in The framework also enables easier with Fujitsu’s Eternus the coming days, besides enabling administration of data centre environments, allows storage systems. investors to reach NSE through NEWS @ WHAT IS COOKING AT MICROSOFT? BLOG PERHAPS THE WHOLE, “end-of-the-world” thing in 2012 really has something to do with Microsoft, which is likely to release Windows 8 in that year | Nicholas Kolakowski <> in Microsoft Kitchen The blog posted two slides suggesting that the next Windows Server and P HOTOG RA P H Y: P HOTOS .C OM Windows 8 would be released in 2012. Earlier in October, the LinkedIn page for Robert Morgan, a senior member of Microsoft’s Research & Development team, stated his current projects included 128 bit architecture compatibility with the Windows 8 kernel and Windows 9 project plan. D E C 2 0 0 9 – J A N 2 0 1 0 | IT NEXT 9
  10. 10. SMS itnext samsung
  11. 11. TECH TALK OPINION DR. MANOJ SAXENA CEO, NetEdge Computing Solutions Key attraction Cloud computing has a tremendous On cloud nine! enterprise pull because it conceals the complexity of the infrastructure from end-users. They do not know, or need to know, what is there in the cloud. Yes, that is where cloud computing is set to This has become possible due to one of the key architectural attributes and take enterprises--both big and small underlying technologies of the cloud computing model—virtualisation. This refers to the abstraction of physi- cal IT resources from the people and loud computing, as a ser- applications using them. C vice offering, has been gaining momentum in India in the last couple of years. While big players such as Sun Microsystems, Google, IBM, Amazon and Microsoft are in the lead, many small private companies are Virtualisation allows servers, storage devices and other hardware to be treated as a pool of resources rather than discrete systems so that these resources can be allocated on-demand. Cloud computing brings a new level of efficiency and economy to delivering beginning to grab market share. IT resources on demand, and in the The evolution of cloud computing process, it opens up new business will create not only a dynamic IT models and market opportunities. environment, but will also bolster user- empowerment through the concept of Cost efficiency IT as a Service. A wide range of cloud As organisations cope with a dynami- computing platforms and applications cally changing business environment, are emerging in the market, offering IT managers can look to cloud comput- businesses an entirely new way to ing as a way to maintain a flexible and deploy technology. scalable IT infrastructure that enables business agility. The IT managers are The architecture showing keen interest in investing time Before delving deeper into the criteria “Cloud computing and understanding how the cloud will for adoption of the cloud computing impact access control, network security model by enterprises, it is important brings in a new level of and other core network components. to understand its architectural frame- efficiency and economy IT managers of many organisations are work. While the majority of contempo- also eyeing the cloud computing ser- rary Internet applications use three-tier to delivering IT vices model to save money. model as generic architecture, the use resources on demand” The principal findings of a research of virtualisation in clouds has created a conducted recently among IT managers new set of abstraction at higher levels— of SMEs to study the acceptance of cloud applications, platforms and infrastruc- of the software runs on a provider’s computing by businesses has revealed ture. These layers not only encapsulate infrastructure and serves multiple that IT managers are aggressively on-demand resources but also define a clients. The middle layer, Platform as a deploying cloud computing initiatives new application development model. Service or PaaS, offerings can provide to accomplish business objectives. Within each layer of abstraction, there for every phase of software development As budgets for cloud computing P HOTOG RA P H Y: AJAY C H AW L A are myriad business opportunities for and testing, or they can be specialised increase, IT managers are examining defining services that can be offered on around a particular area such as critical technologies for building the a pay-per-use basis. content management. Infrastructure as infrastructure behind the cloud. Software as a Service or SaaS a Service or IaaS lies at the lowest rung. So how does an individual, a business occupies the highest layer and features This layer can deliver basic storage and or an IT manager take advantage of a complete application offered as a computing capabilities as standardised the cloud computing trend? Cloud service on-demand. Single instance services over the network. computing is not just about proliferation 12 IT NEXT | D E C 2 0 0 9 – J A N 2 0 1 0
  12. 12. OPINION Companies have realised that by clinging to the cloud they can access profitable business applications and can drastically boost their infrastructure resources, all at a negligible cost. of IT stacks on a restricted handful clinging to the cloud they can access of infrastructure providers. It is profitable business applications also about an emerging ecosystem and can drastically boost their of complementary services that infrastructure resources, all at a provide computing resources such as negligible cost. This is forcing IT applications on demand, distributed managers and CEOs of companies to databases and virtual private data deploy the cloud computing model in centres for the entire range of IT their organisations. consumers. These services span the Keeping in view the array of range of customer requirements advantages that cloud computing from individual developers and has to offer, the number and quality small startups to large enterprises. of public and commercially available Not only the larger firms but cloud-based service offerings has also small and medium enterprises been growing fast. Using the cloud can leverage cloud computing to is often the best option for start- save costs. ups, research projects, Web 2.0 developers, or niche players who Boon for SMEs want a simple and low-cost way to Cloud computing provides an alter- load and go. native to investing in one’s own A recent finding by global financial infrastructure and software. There- services firm Merrill Lynch suggests fore, the ability to cloud-source an that cloud computing will expand application instead of buying self- into a global market of $95 billion hosted applications has seen a sig- over the next four years. Gartner has nificant rise amongst SMEs. Cloud also named cloud computing, green computing presents a powerful IT and social-computing platforms opportunity to SMEs to use latest among technologies that are poised technologies and services from to achieve broad enterprise adoption the cloud which also helps them in the next two to five years. save costs, as it is a pay-per-license This cloud is not one to be blown model. It helps them to avoid buy- away in a hurry. ing the entire hardware or the soft- ware library. Besides heading NetEdge, the author is also Companies have realised that by a registered Computer Consultant with ADB D E C 2 0 0 9 – J A N 2 0 1 0 | IT NEXT
  13. 13. MONEY WISE OPINION RATNAKAR NEMANI CIO & Head—IT Projects Wing, VST step would be to avoid use of multiple packages with similar functionality. Besides, as an IT manager you can also explore options like e-learning to cut The Penny route travel and accommodation costs for the HR department. Web conferences also benefit geographically distributed to Pounds functional departments. Pennies can also be saved by delaying investment in new IT infrastructure, like new PCs, by a year or more. The n times like these, when the IT manager can think of alternatives I world economy is struggling to recover from a long economic downturn and top line growth is either marginal or just not pos- sible, cost reduction becomes a favoured means for a company to stay afloat. It is in these times that every function instead of going in for basic technology upgrades. A simple example can be virtualisation of desktops or adoption of thin clients. This will not only offer benefits in capital expenses (Capex)but also reduce the operational expensees (Opex) by ensuring less power within the company needs to be an consumption and lower manpower active participant in financial matters, requirement. Not to talk about enhanced and the CIO needs to also look at things security levels and the satisfaction of from the perspective of a ‘Cheap Innova- creating a greener IT environment. tion Officer’. One might wonder how the IT Benchmark yourself function, which seldom accounts for Finally, all this exercise will be in vain, more than single digit of the overall if you do not really benchmark your- expenditure, really helps reduce costs. But in these times, a penny saved is “The CIO needs to self. What is the percentage of IT spend vis-à-vis net turnover? Ensure that you indeed a penny earned. In fact, the look at things from check this ratio every year, benchmarking IT function can play the catalyst in enterprise-wide productivity measures. a Cheap Innovation with the best companies. I would advise IT managers to look at ways and means Let me share with you how I have Officer perspective” to turn the IT function into a profit cen- done this at VST, one of the leading tre from a conventional cost centre. For companies in the tobacco space. return on investment (ROI) that they instance, in case you have excess man- fetched. Such evaluation always helps power, think of utilising their skills for Be clear on ROI, TCO a firm plug any leakage in the process. outside projects instead of rendering One of the primary functions of the IT For instance, on detailed examination them redundant. This will not only gener- team is to work out the planned invest- we found out that Total Outsourcing ate revenue but also enhance employees’ ment for upcoming projects and keep of Services (TOS) well suited to VST trust in the company. Externally too, the Total Cost of Operation (TCO) within needs since it offered twin benefits— firm can gain prestige and credibility. reasonable limits. To accomplish this, contemporary technology and better The list can be endless. But you need to align your IT needs with technical expertise. In fact, VST was earning better profits through cost the company plan, as lack of business among the pioneers in the country to go in reduction should remain the eternal can spell failure for projects. for long-term outsourcing in April 2004. mantra for IT professionals within P HOTOG RA P H Y: S U RES H VA NGA PAL LY Initiatives causing time inefficiency This pulled down our costs significantly. the organisation as they can lead the and impacting strategic business should charge towards raising productivity be identified and scrapped, even if they Re-examine current systems levels even as costs are cut. After all, are already part of the projects portfolio. One of the important things that an IT pennies make pounds! The first thing that I did after taking manager can do in these trying times over as IT function head at VST was to is to re-valuate the existing infra- The author is a cost accountant by qualification and an IT professional by choice. He is, cur- identify the kind of investments that structure and try to pinch a penny rently, focussed on turning VST’s IT division into were being made in IT and the precise here and a penny there. A simple first a profit centre 14 IT NEXT | D E C 2 0 0 9 – J A N 2 0 1 0
  15. 15. 09 7 XXXXXXXXXXXXX | COVER STORY SURVEY STEPS TO THE TOP SEAT BASED ON AN EXTENSIVE SURVEY OF IT MANAGERS, IT Next presents a handy guide for technology managers who have their hearts set on becoming a CIO BY SHASHWAT DC / IMAGING ANIL T P HOTOG RA P H Y: JAYA N K N A RAYA NA N Peep into an anthill and you will realise what seamless order and perfection mean. Our tiny insect cousins have engineered a complex organisational structure which, though hierarchal, is highly efficient. At the very apex, sits the queen, the head of all the domicile ants, and does little than preen and procreate. Below the empress, there are scores and scores of worker ants which toil endlessly to ensure that her majesty remains unperturbed and at ease. D E C 2 0 0 9 – J A N 2 0 1 0 | IT NEXT 17
  16. 16. COVER STORY | 09 SURVEY Were we to project this organisational case of Mr O who is the CIO of a large cabin, and moves in hallowed circles structure on to a standard enterprise, pharmaceutical company and whose receiving awards and recognition with more so on to the IT function of a typical lifestyle is the envy of many. More often amazing regularity. enterprise, it will be fairly evident that than not, he is touring the country, or the So when does Mr O work? Well the CIO is the queen of the IT-hill, globe, for work and conferences. He is honestly, he does not; he merely gets waited upon by the rest of the managers courted by vendors, analysts, journalists the work done. Over the years, he has and professionals. The IT head often has and others who are all ears for every word outsourced much of the infrastructure little to do with IT these days; he frets that escapes his mouth. Even the CEO of management to external vendors. Now and fumes over things like RoI, people the company pays attention whenever all he has is a small and well-knit team management, business issues, et al. Mr O comes up with a new proposal or of managers and IT professionals who For the sake of illustration, take the strategy. Mr O operates out of a spacious handle the day-to-day functioning of the IT infrastructure and the data centre. The anthill is not much different from the IT-hill, is it? “IT managers IT Next survey While one cannot be sure if the worker need to take ant within the anthill aspires to be the up bigger queen, but IT managers certainly desire challenges and “For an IT to become CIOs. This was evident when we conducted a survey to ascertain get out of their manager to what it takes to be a CIO. Our survey comfort zone to succeed, it drew responses from nearly 250 IT succeed” is essential managers around the country—repre- senting a wide array of verticals, cities —Dhiraj Sinha that he looks and profiles. To say that the response Leader (Tech), at bridging was overwhelming will be an under- Dell Perot Systems business statement. Nearly 200 IT managers had completed the survey within two versus IT gap” days, with more responses trickling in —Jojo Jose over the next few days. The dozen odd GM (Systems), questions in the survey were designed GTN Group to capture the ‘essentials’ of what it P HOTO G RA P H Y: ( RI G H T ) SA N TO S H B H AS K A R takes to be a CIO. Once, the verdict was received from the IT managers’ end, the same questions were posed to CIOs and external consultants, and they were asked to share their views. Based on the findings from the two surveys, we present the 7-step guide to becoming a CIO. Though much of this may seem fairly obvious and commonsensical, do remember that it is BE BUSINESS ‘DE-TECHNI- BE THE SAVVY CALISE’ GAUNTLET GUY 7 You are already a tech Non-IT issues Be the first to 1 2 3 whiz kid, but so are need to be stake a claim to the other IT manag- befriended. Get challenging as- ers eyeing the CIO’s out of the techie signments. Even slot. Better bone up mould and you if the project fails, THE on the company’s business; understand its nuances. Get will discover a new world. Learn more about HR, mar- you will end up learning. And, of course, the powers STEPS familiar with business con- keting, sales, production that be will learn about you cepts like RoI, EBITDA and and issues that interest if the project succeeds. You PAT to gain an edge over the other people. will be that much closer to competition. the coveted cabin. 18 IT NEXT | D E C 2 0 0 9 – J A N 2 0 1 0
  17. 17. COVER STORY the small things that go to make a CIO. And it is these traits and specialities track of its financial standing, market share, market scenario, competitors 09 SURVEY that need to be imbibed and displayed and their strategies. Considering that to earn the CIO cap. While the steps IT plays a very critical role, the CIO is may seem fairly easy they demand a expected to don a business hat at all complete change of mind set. junctures. And the IT manager, who desires to take on the CIO role, needs to Be business be at home wearing the business hat as 1ST savvy well. So, start practicing it right away. STEP Over the past few years, “The CIO is an interface between 75% the role of the CIO has business and technology. He is expected undergone a 180 degree change. While, to have knowledge of both the worlds. the CIO continues to remain the king It is very obvious that he can map the (or the queen) of all things technical, technology to business processes and his role has expanded to encompass all requirements easily because of his functions in an organisation. Thus, a understanding of both,” says Ketan CIO is no more chained to the data cen- Shah, Associate Director, Angel Broking. say Jack of All IT tre or the IT department but is expected According to him, if a manager is Manager is most suited to take on a bigger and more strategic aiming to become a CIO, then he has to become a CIO role within the organisation. This is also to bring about a major change in his because with rapid digitisation, IT and thought process. “An IT manager looks technology are not just backend, but at the business from the technology 42% front-end tools. perspective, while a CIO takes a What this implies is that while a business view of technologies. This CIO at a retail organisation may be change is possible only when an IT concerned about implementing the best manager starts understanding the inventory and warehousing system in business. Once an IT manager develops his organisation, he also needs to look a better understanding of the business at the Web and mobile as additional he can start mapping technology to want CEOs to mentor fronts to reach the customer. Here, IT business, since technology is any way potential CIOs can provide the organisation with a his forte,” Shah adds. completely new revenue stream that did not exist before. The CIO, in this case, ‘De-technicalise’ needs to be the change agent who ushers 2ND Read a Dilbert comic in such a transformation—in a proactive and not reactive manner. STEP strip and you will realise what the IT guys 47 S OU RC E: IT N EX T S UR VE Y 2 0 0 9 The IT manager too needs to think about the world, and in return, inculcate this kind of business- conscious approach. The first step is to familiarise oneself with all business concepts like RoI, EBITDA and PAT. It what the world thinks about them. Even today, despite the ubiquity of computing lingo, it is hard for a layman to have a conversation with a technical % feel 13+ years of ex- is not enough to know just what your expert. It is not surprising, considering perience is neces- company does, you also need to keep that techies are often considered geeks sary to become a CIO BECOME BE A PEOPLE GET TURN INTO A INNOVATIVE PERSON NETWORKED BE-ALL PERSON Focus on the Managing people Increase your The CIO needs 4 5 6 7 needs and ways is infinitely more circle. Join to be a jack-of-all of doing busi- difficult than man- online sites like trades. He has to ness. Think out aging computers. LinkedIn, Face- manage different of the box. Add Learn to inspire book, Orkut and tasks, different value. Delight the cus- peers. Let them come to special community groups. people and different situ- tomer and the boss. The you with their problems. Share experiences and ations, all the time. So, if CIO’s seat will not seem Empathise and resolve their knowledge. The network your eyes are set on the so distant. problems. They will love to will sustain you as you plum CIO assignment, get follow you. work towards your goal. ready for all this and more. D E C 2 0 0 9 – J A N 2 0 1 0 | IT NEXT 19