The document discusses several key internet-related innovations that are driving changes in computing, software development, data usage, and networking. These include continuous service delivery and microservices, which allow faster software creation; federating and commercializing data through linking different data sources; blockchains for securely managing distributed systems like IoT; containerization through tools like Docker; and fog computing which distributes computing to network edges. These innovations are being adopted by many large companies and are creating more jobs in engineering, research, and operations while reducing roles in administration and support. Overall, the innovations emphasize modularity, security, and using data and edge devices to create new networked systems and services.

1. Innovation, the Internet and
Future Growth
Describing Enterprise-based Innovations Driving Change
Robert B. Cohen, PhD
bcohen@bway.net, @bcohen777
Senior Fellow, Economic Strategy Institute
Columbia University CITI Conference on Internet and
Employment June 5, 2015

2. Key Internet-Related Innovations
• Changes to Service and Software Development
– “Continuous Service Delivery” speeding the creation of new
applications/services changing the way software is developed and by
using modular software or “microservices.”
• Microservices -- using modularity to more rapidly develop new services in the
cloud.
– “Federating and Commercializing Data” raising the value of business
services based upon data analytics.
• Changes to how Computing is Organized
– Block Chains: Shifting from a single, “central cloud” to a decentralized,
highly-secure cloud.
– Containerization: Creating new ways to “ship” resources – material
and virtual -- from one place to another. (2014)
– “Fog Computing” – “is about computing on the edge. In Fog
computing devices communicate peer-to-peer to efficiently
share/store data and take local decisions.”*
Source: Angelo Corsaro, “Fog Computing with VORTEX,” http://www.slideshare.net/Angelo.Corsaro/20141210-fog
2

3. Continuous Service Delivery 1:
Speeding up Software Creation
Design teams replace isolated
“skill areas,” like quality
assurance; drastically reduce
the number of steps to create
software
Impact: Better knowledge
of customers, new sales
opportunities.
Adrian Cockcroft, “Creating Business Value with Cloud Infrastructure,” Open Networking User Group, May 13-14, 2015. 3

4. Continuous Service Delivery 2: Using
Microservices to Modularize Software
• Software development is more unstructured.
• Working in the cloud means new services can be deployed quickly.
• Far more room for innovation and agility.
• Winning firms capture “speed advantages” and shape the market.
• A knowledge of the new marketplace is a key competitive advantage.
Source: Martin Fowler, “Microservices http://martinfowler.com/articles/microservices.html
4

5. Continuous Service Delivery
• Who’s Doing it?
– Amazon, Nordstrom, US Department of Homeland
Security, Netflix, Conde Nast, Facebook, Gap, Walmart, and
many banks.
• Main Benefit
– Speeds software creation for the cloud
• Related benefits:
– Firms know more about their customers, can identify
which customers want specific services/goods; can test
ways to retain customers;
– Sales increase, loyalty increases
– Cost to serve customers declines
5

6. Federating and Commercializing Data
for the Internet of Things
• Internet of Things provides an opportunity to link Big Data,
such as genomic information to healthcare treatment.
• This linkage reduces treatment costs
• The cost savings usually go into developing greater skills in using
data for treatment.
• This shifts the focus of healthcare providers from facilities
and service providers to data analytics.
• Data becomes a critical/defining resource for healthcare
providers. In a similar fashion, physicists working with CERN
made data the primary focus of their Internet services
during the hunt for the “Higgs Boson.”
• “Federating Data” may provide significant advantages for
activities like electronic design that rely on collaboration.
6

7. Block Chaining: Re-architecting the Cloud to Create a
Highly Secure Management System for Hundreds of
Billions of Devices for the Internet of Things
• Block chaining creates the ability to manage a highly distributed cloud
• Once a product is identified in a block chain, it is there throughout its life. Thus, in a block chain
based IoT, the product’s information, its history, product revisions, warranty details and end of life
in the block chain means the block chain itself can become the trusted product database.
• This creates a highly secure means to track value/information transfers
• As a result, it provides a way to transform not only banking, but also new highly complex systems
– networks for driverless cars, data analytic systems for healthcare – into very manageable
distributed clouds
See: Paul Brody and Veena Pureswaran, “Device democracy: Saving the future of the Internet of Things,” IBM Institute for Business Value, Sept. 2014, p. 7. http://www-
935.ibm.com/services/us/gbs/thoughtleadership/internetofthings/ IBM Institute for Business Value,” ADEPT: An IoT Practitioner Perspective,” ibm.biz/devicedemocracy
Impact: Greatly reduces the costs of transactions and complex system exchanges.
Facilitates scalability, security, interoperability and new value creation/exchange.
7

8. 8
Source: “Introduction to Docker,” November 2013. http://www.slideshare.net/dotCloud/docker-intro-november

9. Containerization and Shipping Virtual
Resources: Docker
• Who’s Using it?
– ING, NY Times, GE Appliances, Capital One, Orbitz
Worldwide, Activision (gaming), Grub Hub (food delivery)
• Main Benefit
– Speed software implementation at different locations
– Create a pipeline for new services
• Related benefits:
– Build once…run anywhere
– Run each app/service in its own isolated container
– Eliminate concerns about compatibility on different
platforms
9

10. Fog Computing
• Fog takes the load off centralized clouds and puts computing at the edge.
• This “turns the Internet inside out” (Paul Brody of IBM quoted in WSJ)
• Creates an infrastructure similar to that in “block chaining.”
• Used in Nice, France’s “Connected Boulevard” and in the coming year, in
air traffic control systems in Italy and France.
Source: Angelo Corsaro, “Fog Computing with VORTEX,” http://www.slideshare.net/Angelo.Corsaro/20141210-fog and Christopher Mims ,
Forget 'the Cloud'; 'the Fog' Is Tech's Future,” Wall Street Journal, May 18, 2014,
http://www.wsj.com/articles/SB10001424052702304908304579566662320279406
10

11. Summary: Key Innovations in the
Internet
Computing Data Centers Software Internet of Things Networking
Initial Changes Virtualization
Virtualization via
Hosting and Software-
as-a-Service
Machine-to-Machine
Communications,
Subnets of Things,
Centralized Cloud
with Virtualization
Software Defined
Technology
Open Stack/Open Flow
Software Defined
Networking (SDN) and
Network Function
Virtualization (NFV)
Software Defined Data
Center. Then Open
Stack/Open Flow
Software Defined
Networking (SDN) and
Network Function
Virtualization (NFV)
Software Defined
Programmable
Networks
Automated Programming
Programming Protocol-
Independent Packet
Processors (P4) (2015)
Programming Protocol-
Independent Packet
Processors (P4) (2015)
Microservices
Shared Resources and
Services
"Federated Data" Containers (2014)
"Fog Computing,"
Distributed Cloud and
Block Chaining.
Programming
Protocol-Independent
Packet Processors
(P4) (2015)
Programmable
Networks with SDN,
NFV and Open Stack
frameworks
11

12. What Kind of Jobs will these
Innovations Create?
12
Older, Large Firms
Social Media and On-
Demand Firms
Peer-to-Peer eCommerce
Firms
AngelList Job Postings
Amazon, Google, Apple,
and Salesforce.com
Facebook, Twitter, and
Uber
Airbnb, Taskrabbit, Etsy
Silicon Valley Startup
Firms seeking employees
Sales and Marketing
34% 35% 20% 23%
Finance, Administration,
Human Resources and Support*
26% 23% 20% 4%
Engineering and Research,
Operations, IT and IS
40% 43% 59% 73%
Number of jobs 13, 245 839 202 14,636
Source: Jigsaw.com profiles accessed June 2, 2015 and Codingvc.com, "Analyzing AngelList Job Postings, Part 1: Basic Stats," 08 Sep
2014,
http://codingvc.com/analyzing-angellist-job-postings-part-1-basic-stats.
Note: The latter source includes jobs posted on August 31, 2014.
* The AngelList jobs in this category includes lawyers.