Infrastructure Matters discusses trends in IT for 2014. It notes the rise of business services, the "Internet of Things" connecting billions of devices, and exponentially growing data. Infrastructure will need to process workloads and massive data quickly in secure environments. Virtualization increases flexibility, utilization, reliability and reduces costs. The role of CIO is expanding from operational roles to innovation, architecture and business transformation. While applications and users grow exponentially, infrastructure demands challenge traditional IT models, increasing the need for third platform technologies.

1. Infrastructure Matters
January 2014
Vernon Turner
Senior Vice President

2. What’s Different With IT In 2014
Business Transformation
A Shift To Business
Services
The Rise Of ‘Things’
Everything Seems Faster
Innovation Everywhere
Supply Chain
Transparency

3. 2014 – The IT Overview
Innovation
Information
Business Agility
IT Agility
Services
Systems

4. The Internet Of Things:
Creating Smart Industrial Solutions With Increased
Infrastructure Demands
Communication
Pressure (sensor)
Accelerometer (sensor)
Smart Plug (actuator + sensor)
Light & Sound (actuator)
Microphone (sensor)
Battery
GPS (sensor)
Presence (sensor)
Ambient (sensor)

5. Some Early Results…..In 2013
1.
2.
3.
Sept 2013, Executive Panel at Oracle World
http://www.datacenterknowledge.com/archives/2013/01/18/facebook-builds-new-data-centers-for-cold-storage/
Source: IDC White Paper, "The Digital Universe in 2020: Big Data, Bigger Digital Shadows, and Biggest Growth in the Far East" Sponsored by EMC, Dec. 2012
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6. In 2014…We Think That ..
There Will Be Over 1 Million Intelligent
Systems Shipped Every Day To
Manage Over 9 Billion Smart
Connected Things (IoT)
The Digital Universe Will Reach
Almost 8 Zeta Bytes ( or 8 Million Peta
Bytes) of Content Created
There Will Be 87 Million Virtual
Machines Installed, Managed By 1.1
Million Systems Administrators,
Costing IT $97B In Management
Costs

7. How Fast Do We Think Transformation Will
Occur?
3rd Platform will dominate growth: up by
15%, driving 29% of 2014 IT spending, and
89% of growth
3rd Platform will cannibalize 2nd Platform:
40-50% of 3rd Platform growth in 2014 will
come at the expense of 2nd Platform
Value migrating within 3rd Platform: Up the ‘Stack’, towards
customers’ competitive advantage

8. What Will Infrastructure Need To Do To
Respond To Business Transformation?
1.
Process Workloads In The Same Time Envelope
2.
Process Massive Amounts Of Structured & Unstructured Data
3.
Process In Safe Environments For Mission Critical Workloads
To Be Managed
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9. Some Benefits Of Wide Scale Virtualization
Flexibility:
System Resource Utilization
Time:
Time to Market for New Services
Reliability:
Reduced Incidents/Downtime
Cost per User Reductions Span:
Server
Storage
50%
25%
2-3x
2x
50-75%
Network
Facilities
Power &
Cooling
50%
25%
50%

10. Customer Intimacy & Value
In Conclusion ….The CIO Has New Opportunities…
Aspirational Role
Value Added Roles
Service
Broker
Essential CIO Roles
Chief
Innovation Officer
Business
Architecture
Change Agent
(New Services)
IT
Architecture
Custodian of IT Services  Operational and Utility Roles
Operational
Run
Build
Buy
to
Business Service
Management
Transformational
Architect
Business
Transformation

11. In Conclusion ….While The Infrastructure Still Matters
The explosion in applications, data, devices and users challenges CAPEX and OPEX in traditional IT driving need for 3rd
Platform-based Infrastructure:
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12. vturner@idc.com
vernonxt