In 2012, enterprise IT is shaped by significant trends including the rise of cloud services, the transformation of legacy systems, and the emergence of big data. The convergence of IT and operational technology will redefine enterprise operations, while companies are prompted to embrace transparency amidst increasing security concerns. Despite economic uncertainty, technology innovation persists as organizations adapt to a mobile and user-centric approach, emphasizing the importance of knowledge retention and sustainability.

1. TOP
ENTERPRISE IT
IN 2012
10
By Bob Hayward
Chief Technology and
Innovation Officer,
CSC Australia and CSC Asia
TECHNOLOGY
TRENDS
TO C

2. It’s time to look back over 2011 and try to discern the key technologies
TOP and trends likely to be top of mind for enterprise IT in 2012.
10
Innovations, products and concepts from the consumer world contin-
ued to dominate enterprise technology during 2011. This trend started
more than 10 years ago and shows no sign of slowing down.
Finishing the year as the world’s second-largest PC firm, Apple contin-
ues to grow at a phenomenal rate. Their innovations fuelled the explo-
sion of smartphones and tablet devices. In 2011, the post-PC era arrived,
TECHNOLOGY
and who would have guessed just 5 years ago that Apple (iPads, iPods),
TRENDS Google (with Android), Samsung (Galaxy) and Amazon (Kindle Fire)
would emerge as the major players?
Competition in this space has become brutal. Patent battles Having a presence in social media, using the sites to glean
and deals to acquire firms with important patent assets are sentiment and market insights, and emulating them through
commonplace headlines in the news. Even the incumbent corporate-sanctioned facsimiles were priorities of enterprise
favourite for enterprise mobility — RIM with their BlackBerry IT in 2011.
devices — stumbled badly during the past 12 months.
High-profile incidents in 2011 involving WikiLeaks, Sony,
RSA and Epsilon changed the way we think about informa-
BE MORE SOCIAL
tion security. Now all enterprises must continually assess
Other consumer firms and technologies that forced en- their levels of protection and treatment of sensitive data.
terprise IT to respond in 2011 included Twitter, Facebook,
2011 was not a banner year for systems reliability and
LinkedIn and a number of other social media sites.
availability. Serious website outages affected Common-
wealth Bank, Qantas, Virgin, RIM, Distribute.IT, the ASX
and the Australian Parliament.
GET YOUR HEAD IN THE CLOUDS
Yet, if there was one prevailing ray of hope during the
darker days of 2011, the one answer that could change
everything, it was ‘the Cloud’. Enterprises started to un-
derstand cloud services. They considered the increasing
number of choices and options from cloud service providers
as serious alternatives to the normal delivery of IT services.
During the last year, we started to discuss the phenomenon
of ‘big data’ as we grasped the potential to use a growing
variety of data architectures to more optimally support
diverse workload requirements. No longer is the answer
always a SQL database.
The IT industry lost many pioneers and innovators in 2011,
including one of the greatest of all time. Steve Jobs left
us at far too early an age. Other greats who have sadly
departed include Ken Olsen, Dennis Ritchie, John McCarthy
and Robert Morris. The part of the Baby Boomer generation
that gave birth to this incredible IT industry is now
reaching its twilight.
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3. 1
The Sky Is Not the Limit
HEAD FOR THE CLOUDS
2
A Legacy Transformed
REWRITE HISTORY
3
Big Data
MORE IS BETTER NOW
4
SO WHAT DOES 2012 HOLD IN STORE? Convergence of IT and OT
I predict a lot more of the same. Consumer tech disruptions CLOSE THE DIVIDE
will drive agendas, even within the largest of enterprises.
2012 is shaping up to be tough for business, with a great
5
deal of uncertainty about the economic outlook in Europe
clouding global sentiment. Unless something changes Strategic Leaking
soon, economic growth will be slow during the next several OPEN THE PIPELINE
months. Business will pare IT budgets to the bone. Every-
thing that can be pushed back or deferred will be.
6
Nevertheless, the momentum behind technology-enabled
Post-PC Era
business growth and innovation remains strong. IT
investment does not come to a complete stop as in-flight MOBILITY FOR EVERYONE
projects continue.
7
DELIVER CHEAPER AND BETTER
The User Is the Universe
For 2012, Gartner still project over US$2.7 trillion of global
enterprise spending on information and communications
WORK ANYWHERE
technology. CSC’s Leading Edge Forum (LEF) has identi-
fied, as the service economy of the new world matures, that
8
enterprise is changing its view of IT from a choice between
Rapid Knowledge Capture
lower costs and more value to a new view where cheaper
and better is the new norm. KEEP KNOW-HOW
In this new world, enterprise IT functions must reduce
their back-office focus so they can keep up with the
9
explosion of technology at the front of the company. Taking IT Seriously
As a result, enterprises in Australia will be casting their
eyes over several technology trends in 2012, trying to
GREEN IT IS IN FULL BLOOM
discern the right time and the best approach to take
the best advantage.
10
Here are my top 10 technology trends for Collaborate Without Borders
enterprise IT in 2012: FINDING TALENT EVERYWHERE
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4. 1
TREND
The Sky Is Not the Limit
HEAD FOR THE CLOUDS
THE SILVER LINING FOR ENTERPRISE IT
The cloud bandwagon rolls on, transforming and redefining
service availability in its path. The five defining elements of
a cloud service (elasticity, on-demand, metered consump-
tion, shared resources and Web access) start to become
the default means by which new IT services are rolled out
and implemented. Cloud elements are made available in the
public, private, community and hybrid models to support
infrastructure, platform, software, and business process
service types.
Improved agility and removal of all the impediments for
innovation become the most significant advantages gained
The growing need for by choosing cloud.
There are subtle changes underway as the overall adop-
transparency, trust and tion of cloud increases. The growing need for transparency,
governance will gradually trust and governance will gradually lead to the emergence of
voluntary industry codes of conduct, trust marks and confor-
lead to the emergence of mance to emerging standards, like the CloudTrust Protocol.
voluntary industry codes of Currently, weak scrutiny by SMEs and consumers on the
conduct, trust marks and credentials of cloud providers will adjust to reflect growing
concerns over treatment of data, privacy and security. And
conformance to emerging larger enterprises remain somewhat cautious about using
global public clouds. These public cloud ‘take it or leave
standards, like the it’ offerings do have a role to play in modern enterprise IT,
CloudTrust Protocol. and leading organisations will always find some part of the
portfolio of IT to run here. But they are not that interested
in running the majority of their portfolio in offshore clouds,
or clouds that might be reached through the public Internet
using fraudulent credentials and currency.
As a result, enterprises start to lean towards clouds that
are inaccessible from the public Internet. Participation is
by invitation only to selected like-minded enterprises. The
participants will be in-country, and usually in community
or private clouds. And service delivery is by reputable
providers with a pedigree in handling sensitive
enterprise requirements.
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5. 2
TREND
A Legacy Transformed
REWRITE HISTORY
THE DEMISE OF LEGACY ASSETS
The huge inventory of legacy systems and applications is a Enterprises in 2012 start to seriously consider retiring,
substantial part of many enterprise IT portfolios. And yet it replacing or decommissioning legacy assets. And many will
is missing out on all the exciting innovation from consumer look to transform legacy to more contemporary languages
tech, cloud and mobility. (Java, C#, Ruby) and environments (x86, cloud) using a
growing number of automated and semi-automated tools
Something has to be done.
now coming into the market. The costs of inaction are now
Legacy systems cost a fortune to operate. They voraciously outweighed by the benefits of using more contemporary IT
consume scarce energy using outdated hardware and environments.
lazily operate obsolete software/languages with
dwindling expertise.
Enterprises in 2012 start
to transform and seriously
consider retiring, replacing or
decommissioning legacy assets.
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6. 3
TREND
Big Data
MORE IS BETTER NOW
THE REVOLUTION CHANGING EVERYTHING
The potential value of gaining insights from analysing large A word of caution ...
and increasingly unstructured data sets has hit mainstream.
Big data means big backups and big recovery. Enterprises
So be prepared for ‘big data’ questions from your business.
that do not engage comprehensive disaster recovery plan-
CSC’s recent Leading Edge Forum (LEF) report The Data ning are playing with fire.
rEvolution revealed the impressive range of data-intensive
technologies, applications and future possibilities. But the
gap between the promise and the reality of big data
usage is still wide.
Be prepared for ‘big data’
In 2012 many organisations will try to apply the new questions from your business.
shared-nothing architecture and distributed processing
frameworks to store, process and manage business
information. By the end of 2012, IT strategy and
architecture vocabulary will grow to include terms
like MapReduce, Direct Record Access or Queries,
NoSQL Databases, Parallel Relational Databases,
Hadoop (MapReduce engines) and many more.
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7. 4
TREND
Convergence of IT and OT
CLOSE THE DIVIDE
WE’RE NOT AT A CROSSROADS.
WE’RE AT AN INTERSECTION.
Business will look to exploit the increasing convergence This convergence of ‘white collar’ and ‘blue collar’
between traditional information technology (IT) used across enterprise technologies will be given many names: the
enterprises and operational technology (OT) used to sup- Internet of Things, Smart [name your thing here],
port production and control assets. IT/OT convergence Machine to Machine and IT/OT, to name a few.
promises to integrate machines with enterprise systems,
driving value-based optimisation and bullet-proof reliability.
While IT has matured in reliability, its convergence with OT While IT has matured in reliability,
will not rapidly expand the traditional patch of enterprise
its convergence with OT will not
IT as some are promising. The convergence is happening
at different paces and it depends on the operational stack rapidly expand the traditional
you are talking about (e.g., MES/SCADA, control, intelligent
sensors) and the industry you are dealing with (e.g.,
patch of enterprise IT as
manufacturing, mining, defence). some are promising.
Nevertheless, we expect that in 2012 enterprise IT will
increasingly work in the operational space. But the focus
for enterprise IT must address the age-old divide between
OT managers (mainly engineers) and their IT counterparts.
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8. 5
TREND
Strategic Leaking
OPEN THE PIPELINE
THE POWER OF INFORMATION TRANSPARENCY
The 2011 disclosures of hundreds of thousands of U.S. State
Department diplomatic cables by WikiLeaks led CEOs,
CIOs and senior managers to ask, “How can I lock down
my organisation’s information and make sure this doesn’t
happen to me?”
It is becoming increasingly clear, however, that companies
will have to become more transparent, whether they want
to or not.
In 2012 we expect that the more strategic firms will ask a
completely different question: “What data and information
that we’ve always considered confidential should we be
making available online — and how could we leverage the
disclosure of that information?”
As part of ongoing Leading Edge Forum (LEF) research,
CSC has found that organisations that practice strategic
leaking will gain big advantages over their competitors in
a wide variety of ways: better publicity; deeper customer
loyalty and trust; more satisfied and motivated employees;
stronger links to vendors, contractors and partners;
improved recruiting; and better relations with investors.
It is becoming increasingly clear
that companies will have to
become more transparent,
whether they want to or not.
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9. 6
TREND
Post-PC Era
MOBILITY FOR
EVERYONE
THE CONSUMERISATION OF IT
Smart, context-aware, mobile devices and enterprise Enterprise IT must make significant changes in procurement,
applications that exploit the latest devices are making the vendor management, employee support, security policies
traditional desktop/laptop computer seem old-fashioned, and legal compliance. This became clear as part of the
unintuitive and generally a drain on productivity. In CSC Leading Edge Forum (LEF) ongoing study of the
combination with in-built location-based presence, accelerating consumerisation of IT.
augmented reality and sensors, employees are exposed
Designing enterprise applications that redefine
to a new way of interacting with the digital world.
productivity using the newly emerging interfaces of smart
2012 will be the year that these truly mobile devices and devices will be a critical competitive differentiator.
applications become pervasive across the enterprise (in the Exploiting voice (think of the longer-term impacts of
new post-PC era). Enterprise IT must find ways to embrace Apple’s Siri on the iPhone 4S) and gesture- and
this trend so it does not end up on the wrong side of history. expression-recognition technologies. Leveraging
improved real-time translation capabilities and using
video and augmented reality. These will be the new
skills of the transformative developer.
Enterprise IT must find ways to
embrace this trend so it does not
end up on the wrong side of history.
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10. 7
TREND
The User Is the Universe
WORK ANYWHERE
THE ENTERPRISE IS NO LONGER THE CENTRE
If we are indeed in a post-PC trend, then enterprise IT Traditional enterprise will grow
will require a greater level of understanding of our new
perimeter at the edges. With increasing mobility, users are beyond its accustomed perimeter,
able to work anywhere, on any device and over any network
moving out to the edges.
(business, shared or third-party). Robust access like this
raises notable security concerns.
Traditional enterprise will grow beyond its accustomed
perimeter, moving out to the edges. With stories of
high-profile data breaches constantly in the news, security
identity management will be in the spotlight. In 2012,
forward-thinking organisations will understand the new
perimeter and change current enterprise-centric
approaches to a new user-centric federated identity
management approach.
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11. 8
TREND
Rapid Knowledge Capture
KEEP KNOW-HOW
THE DRIVE TO RETAIN RETIRING BABY BOOMERS
There are thousands of baby boomers retiring now every In particular, organisations leverage principles from the
year. Many are irreplaceable, and unfortunately there are computer gaming industry to make business processes and
simply not enough people to take their place. The result: a education ‘sticky’ (addictive). The gaming sector definitely
huge loss of critical knowledge and IP, most of which is tacit has the user engagement formula nailed. The 2011 launches
know-how built up over years of experiences that can’t be of Call of Duty: Modern Warfare 3 and Battlefield 3 were
easily transferred. larger than any Hollywood blockbuster movie during the year.
The mass exodus, or ‘great crew change’ as some So stay tuned to hear the phrase ‘gamification’ a lot more.
industries have labelled it, will drive targeted spending
on rapid knowledge capture, storing and transference.
In 2012, expect to see the use of virtual environments The mass exodus, or ‘great crew
to communicate key business processes. New human–
computer interfaces, like Microsoft Kinect and Augmented change’ as some industries have
Reality, could allow some retirees to remotely stay on the labelled it, will drive targeted
job, shadowing and interacting with their younger peers.
spending on rapid knowledge
capture, storing and transference.
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12. 9
TREND
Taking IT Seriously
GREEN IT
IS IN FULL BLOOM
THE URGENCY TO PAINT IT GREEN
IT sustainability has dropped off in importance due to continuous improvements in energy, ethical waste removal
global financial uncertainties. But the introduction of a and water use. Nationally, initiatives such as Mandatory
carbon tax in Australia and rising energy costs will force Energy Performance and Government-led product
enterprises to take sustainable IT seriously. stewardship will place sustainability firmly on any
enterprise IT agenda.
The visibility and urgency of electricity spending —
especially in Australia, where the public grid energy is IT use of energy is projected to grow four-fold between
almost entirely produced from coal — will rapidly rise up the now and 2020. But the IT systems deployed in areas such
corporate hierarchy. In 2012 IT will lead the deployment of as smart grids, intelligent buildings, optimised supply chains
better tools required for detailed reports on energy use by and fleet management should help offset energy use
business unit across the IT infrastructure, and to track as they utilise improved efficiencies across industries
and economies.
IT use of energy is projected By the prudent and focused investment in intelligent IT
systems in building management, supply chain, transport,
to grow four-fold between logistics and energy production/distribution, the national
now and 2020. goals of achieving carbon emission reductions in excess
of 25% by 2020 can be achieved (without the need for a
tax or trading scheme).
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13. 10
TREND
Collaborate Without Borders
FINDING TALENT
EVERYWHERE
THE EMPHASIS ON OFFSHORING KNOWLEDGE
AND PROCESS
The global search for talent and insight at a competitive Technologies that enable or
price will drive an increased emphasis on offshoring of
knowledge work and the outsourcing of business processes facilitate collaboration across the
in 2012. A readiness to go outside the organisation for
world in virtual teams will be major
skills and feedback will also raise the acceptance of
crowd-sourcing and the use of social media to converse areas of investment.
with the market, stay alive to new opportunities, generate
ideas and create content. Technologies that enable or
facilitate collaboration across the world in virtual teams
will be major areas of investment.
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14. So, what’s the point here? Well, if you’re not actively discussing or
even debating and assessing the implications of these trends in
your organisation, then enterprise IT is not doing its job. It’s
imperative that your organisation understand these trends and
incorporates them into strategic thinking. It will help you create
new ways of doing things. Find better markets. Rise above the
IN SUMMARY competition. And thrive in this fast-paced and ever-growing,
innovative world.
What do you
ADDITIONAL INSIGHTS:
CSC Chief Innovation Officer Lem Lasher’s IT-Business
Predictions for 2012
CSC Chief Innovation Officer Lem Lasher’s IT-Business
Predictions for 2012 (Video)
think will be
CSC’s Leading Edge Forum
on the agenda
of enterprise IT
Gartner Predictions 2012
IDC Australian ICT 2012 Top 10 Predictions
Ovum Super Themes in 2012
in 2012?
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15. Worldwide CSC Headquarters
Australia
26 Talavera Road
Macquarie Park, NSW 2113
Australia
+61(0)2.9034.3000
The Americas
3170 Fairview Park Drive
Falls Church, Virginia 22042
United States
+1.703.876.1000
Europe, Middle East, Africa
Royal Pavilion
Wellesley Road
Aldershot, Hampshire GU11 1PZ
United Kingdom
+44(0)1252.534000
Asia
20 Anson Road #11-01
Twenty Anson
Singapore 079912
+65.6221.9095
About CSC
The mission of CSC is to be a global leader in providing technology-enabled business solutions and services.
With the broadest range of capabilities, CSC offers clients the solutions they need to manage complexity,
focus on core businesses, collaborate with partners and clients and improve operations.
CSC makes a special point of understanding its clients and provides experts with real-world experience to
work with them. CSC is vendor independent, delivering solutions that best meet each client’s unique requirements.
For more than 50 years, clients in industries and governments worldwide have trusted CSC with their business
process and information systems outsourcing, systems integration and consulting needs.
The company trades on the New York Stock Exchange under the symbol “CSC.”
For more information, visit the company’s website at www.csc.com/au
or email talk_to_us@csc.com.au
© 2012 Computer Sciences Corporation. All rights reserved.
2437-12