The document discusses how technology procurement is changing due to trends in IT like technologies having shorter lifecycles, microservices architecture, and agile development. Some implications are that there is no long term planning, goals are determined by budgets, ownership of software and hardware is difficult, and finding alternatives is challenging due to dependencies on open source projects. Technology procurement now involves many smaller deals instead of large long-term contracts. The document provides examples of how technologies like Hadoop have been replaced and suggests procurement must adapt to this new dynamic IT environment through changes like bucket-based budgeting and prioritizing flexibility over large discounts on future purchases.

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RE-DESIGNING IT : TECHNOLOGY PROCUREMENT
PINI COHEN

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Traditional IT procurement principles
• Look at the whole picture & plan
• Budget is planned according to goals
• Long term relationship & deals
• Big deals that include many items
• Discount for large & long-term quantity/deal
• Ownership of SW / HW
• Look for alternatives is top priority

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But now:
• There is no big picture
• Goals is reached according to budget
• Technology & projects last less
• No ownership of SW & HW
• Harder to find alternatives
• Many small deals = more work for
technology procurement!!

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Agenda
• Technology last less
• Microservices architecture
• Fail fast business philosophy
• Agile software development
• New budgeting
• Shorter project lifetime
• Opensource

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The fast-changing
technology:
Hadoop example
• Presentation from 2016 not relevant anymore

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Replacing Mapreduce and HDFS

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“Technology last less” implications on
technology procurement:
• Technology & projects last less
• Long term deals are irrelevant and
might hurt the organization

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Microservices architecture and polyglot
Source: http://martinfowler.com/

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9
Microservices
Business agility Combine several
technologies in
the same project
Better scale,
more robust
Runs in
containers
Might cause
latency

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Microservices implications on technology
procurement
• Technology & projects last less
• Polyglot XX = Many small deals =
more work for technology
procurement!!

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Fail fast business philosophy

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“Fail Fast” implications on technology
procurement
• More “try and buy” deals Many small
deals = more work for technology
procurement!!

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DevOps
01 02
03
04
05
Deploy &
implement
Define requirements
based on customer
metrics
Design system & test
outcomes with
customer metricsAgile development
& test with
outcome metrics
JOB TO BE
DONE
DESIGN
PRODUCT
PROTOTYPE
& TEST
DEVELOP THE
PRODUCT
FRUITION
Outcome-Driven
Development®Product
strategy
Problem
definition
Product
prototype
Deploy
ment
Maintain
Implementation
& Training
TIM Methodology®Define market/
product strategy
based on unmet needs
Agile development
alone
(without management
support and LoB full
involvement) can’t
bring the real
change that the
organization needs this will be explained during
the session on
“organizational & IT
initiatives”
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Agile Project Management - Overview
Analysis
Code
Test
Implement
Analysis
Code
Test
3 6 9 12
36912
14
Source: Cutter
Source: cutter

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Agile team
• All needed for current
sprint – working together

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Good enough vs. Grandiose

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What stops
cloud native
development?
• Process is not done right (skip DT, skip
LEANprototype, aim for features instead of
goals, etc.)
• InfraOpsSec stops the cloud platform
• Business is not part of the dev process
• Outdated budgeting yearly plan and
evolution from “projects” to
“products”(explained during “organizational
& IT initiatives”)
• Midrange managers jeopardize the move
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Customer Centric (Digital Transformation) IT Budget
InnovateIT Budget
40%
Cost Reduction &
efficiency
Customer facing
projects uncertainty
60%
Run the
Business
Run the
Business
Run the
Business
Many new tech,
small projectsInnovate
IT budget and strategic planning
process are too slow, inaccurate, and
high resource demanding for agile
reality:
• Annual budget – not relevant
• Poor ability of pricing new tech projects –
buffers
• Demand and portfolio mng are complex,
high resources demanding, mostly manual
and excel based processes
Once the budget is approved, changes are made -
AND it's a good thing!

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All traditional KPIs must be changed!!!
IT will continue to measure project’s time/ cost/ scope
As long as management continue to require it
Outcome-driven (Agile) ProjectsTraditional Projects (Waterfall)
FixedEstimated
PartofContractFlexible
VALUE
DRIVEN
Scope
Costs Time
Business value VS Outdated KPIs
PLAN
DRIVEN
Scope
Costs Time
False sense of control
focus on reporting
Constantly changing scope of work
Product has o clear definition of what has to be delivered.
Customer needs evolve over time, and products must evolve
accordingly

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Agile development implications on
technology procurement:
• There is no big picture – hard to plan
• Goals is reached according to budget
= different way of budgeting

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Project set up time comparing to project
lifetime
initiation
Environment
setup
Create In use
initiation Environment setup Create In use

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Project set up time comparing to project
lifetime
• When life-time is shorter – setup time has higher impact
• What about choosing & setting up alternative that is not the
“natural selection”? Much less appealing!!
• It is safer to be on the main-stream than before
• Finding alternative is harder

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Opensource projects
technology dependencies
• Harder to find alternatives

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Current technology procurement
• There is no big picture (agile)
• Goals is reached according to budget
(bucket-based budgeting)
• Technology & projects last less
• Many small deals (microservices)
• No ownership of SW & HW
• Harder to find alternatives (opensource
dependencies, shorter project life – no
time for specific integration)

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Other issues:
• Discount for future purchase is
big risk (technology might not
be needed anymore!!)
• Its hard to predict cloud budget
• From CPU to container-based
procurement
• Its more important than before
to be safe on the “mainstream”
– harder to be “creative” in
procurement

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‫דיון‬
•‫לאן‬ ‫טכנולוגיות‬ ‫רכש‬?‫בפתיח‬ ‫שהוזכרו‬ ‫התופעות‬ ‫מורגשות‬ ‫כמה‬ ‫עד‬?‫איזה‬
‫רכש‬ ‫בתהליכי‬ ‫לבצע‬ ‫ניתן‬ ‫שינויים‬?‫שינוי‬ ‫לאשר‬ ‫שצריכים‬ ‫הגורמים‬ ‫מהם‬
‫רכש‬ ‫בתהליכי‬?‫תחת‬ ‫החיים‬ ‫ציבוריים‬ ‫ארגונים‬ ‫מתמודדים‬ ‫כיצד‬"‫חובת‬
‫מכרזים‬"?‫החדשים‬ ‫האתגרים‬ ‫עם‬ ‫להתמודדות‬ ‫ורעיונות‬ ‫טיפים‬.
•‫הטכנולוגי‬ ‫ברכש‬ ‫השינוי‬ ‫את‬ ‫מרגישים‬ ‫אתם‬ ‫כמה‬ ‫עד‬?
•‫טכנולוגי‬ ‫ברכש‬ ‫שינוי‬ ‫בצעתם‬ ‫האם‬?
•‫טכנולוגי‬ ‫ברכש‬ ‫לשינוי‬ ‫רעיונות‬
•‫ענן‬ ‫רכש‬ ‫של‬ ‫בנושאים‬ ‫כללי‬ ‫דיון‬,‫מיקרוסופט‬,‫אורקל‬VMWARE ,‫אחסון‬,
‫שרתים‬,‫תקשורת‬,SAP , SF,‫וכד‬'.
•‫ב‬ ‫ניסיון‬ ‫יש‬ ‫האם‬-BYOL‫ענן‬ ‫לסביבות‬
•‫יכול‬ ‫וכיצד‬ ‫האם‬/‫חליפיים‬ ‫בפתרונות‬ ‫לקוחותיו‬ ‫את‬ ‫טכנולוגית‬ ‫לאתגר‬ ‫צריך‬

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Cloud Native
IT
procurement
27
Pini Cohen
STKI CTO
pini@stki.info