In 2012, we will witness the end of business as we know it. The relationship between technology and business will be inverted. Until recently, technology has typically been designed and implemented in order to support and enable business processes. For example, CRM and ERP software applications were created to improve the performance of existing business processes. In other words, business developments forced change in technology development.
In 2012, technology developments will frequently force change in business processes. This has already occurred in some industries, most notably, the media industry. Personal clouds in which people can stream their own content are forcing enormous change in the media industry. In fact, technology has completely transformed the media industry. The inversion of the relationship between business and technology is driving several key developments that will be apparent in 2012.
Executives in all industries will need to closely monitor the activities of technology firms, particularly Apple, Amazon, Google and Facebook. In addition to forcing change in the retail, travel and hospitality and media industries, 2012 will see technology firms forcing change in other industries. For example, mobile payment products such as Google Wallet enable technology firms to compete with financial services firms and will change the way people spend money.
In 2012, this inversion of the relationship between technology and business, will be primarily driven by three key technology trends. These three 2012 developments are:
• Cloud computing will become mainstream
• Cloud computing will drive mobile computing
• Social media will be widely integrated into business activities
#1 Cloud Computing will Become Mainstream
In 2012, cloud computing is set to become mainstream in Asia Pacific. Indeed, approximately 30% of APAC organizations have already adopted some form of cloud computing.
In 2012, the impact of the shift to cloud computing will become apparent. One of the first obvious effects of this type of technology is the cloud-driven transformation of whole industries such as the media industry and the IT industry itself.
Platform-as-a-service (PaaS) is set to be the new battleground in the cloud computing industry as PaaS vendors seek to attract developers to their platforms. Today, Force.com has an advantage over other platforms as a result of its early entry into the market. However, over the last 18 months or so, new platforms have come online, supported by major vendors such as Microsoft, Amazon, IBM, Red Hat, Google and VMWare. Two or three platforms can be expected to dominate as a critical mass of applications is developed on each.
Cloud brokers will emerge en masse, as organizations seek partners that can customize cloud applications for them. These cloud brokers will typically affiliate themselves with a particular platform such as Force.com. In other words, many more applications will be available from the public cloud and these applications will be much more highly customized than most of today’s cloud applications. In turn, industry fragmentation will occur as many more Software- as-a-Service (SaaS) vendors emerge, many with industry-specific applications. Today’s SaaS offerings are predominantly horizontal.
Private clouds will mainly appear in the form of internal clouds that replicate the offerings of Infrastructure-as-a-Service vendors. Many large organizations will engage in datacenter transformation projects or build new datacenters in order to offer business units access to IT resources. Chargeback mechanisms will be built in, resources will be accessed via browsers and apps and the benefits associated with scalability and rapid provisioning will be integrated. These internal clouds will have most of the characteristics of public clouds.
Cloud computing will have a profound impact on the way businesses operate. The cloud model will engender innovation as well as giving businesses an opportunity to enhance existing business processes, this making themselves more competitive.
#2 Cloud Computing will Drive Mobile Computing
In 2012, more smartphones and tablets will be shipped than PCs and laptops. These devices will continue to offer much richer functionality to the extent that they will displace PCs in many business areas. Already, tablets are being used by front line staff, who previously used laptops, for example, sales staff in car dealerships.
It is the provision of cloud services that is leading to the huge growth in mobile-specific applications and other applications that run on smartphones and tablets.
Executives will drive the move to ‘Bring Your Own Technology (BYOT) as they seek to use their mobile devices in their workplaces. This transition to mobile devices in business environments will be reinforced as other workers follow suit in 2012.
The combination of mobile technology and cloud computing will drive change in business. For example, these technologies will make the provision of point of care solutions in the healthcare sector commonplace. In the airline industry these technologies will lead to much more self service. The full service airlines will emulate self service check-in activities that are typical for many low cost carriers. In fact, self service will become widespread across many industries. Where possible, business will seek to use cloud computing and mobile technology to enable self service.
#3 Social Media will be Widely Integrated into Business Activities
In several Asia Pacific countries, more than half of the working population uses social media. In spite of this development, Asian businesses have taken a very conservative stance towards the use of social media. Most Asian businesses have been more focused on blocking employee access to social media rather than viewing it as a new and powerful way of engaging with customers and other stakeholders. Asian companies have also been cautious in their use of social media because best practice in the use of social media has not been established.
Nevertheless, Asian organizations have started to recognize the importance of Online Reputation Management (ORM). For example, ICICI Bank in India has used social media as a means of understanding customer sentiment towards their brand, product and services. In turn, it has used social media to determine how to improve the company’s reputation and to determine which products and services require most focus in terms of improvement.
Commonly used social media tools such as Facebook, Twitter, LinkedIn, YouTube, and Renren and Weibo in China, have been used for some time for marketing and PR activities. They are now being used to support and enable a much wider range of business processes. For example, more wealth management advice is now delivered using Facebook than by any other means. Both Twitter and LinkedIn are now becoming standard tools for recruitment. 2012 will see this trend continue and develop.
In fact, in 2012, organizations will increasingly focus on integrating social media with its other customer and stakeholder touch points. Social media will be the fourth channel, augmenting face to face contact, voice interaction though contact centers, and interaction through web sites.
Social buying, also known as group buying, has become common in Asia and businesses have rushed to work with both local and international group buying companies to increase sales, acquire new customers and manage inventory. This trend will continue in 2012 and become integrated into overall sales and marketing strategies for a lot of businesses.
In summary, the inversion of the relationship between technology and business will become clear in 2012. Cloud computing, mobility and social media will drive this trend. Each of these trends is a major disruptive force in all industries.
Other notable developments in 2012 will be centered around the growing importance of ‘big data’ and the tools needed to analyze it, mobile payments becoming more common, increased corporate involvement in the burgeoning gaming industry, machine to machine technologies impacting multiple industries and the adoption of Smart TV.
Sunday, December 18, 2011
Saturday, November 26, 2011
Cloud Computing - 2012 Outlook
In 2012, cloud computing is set to become mainstream in Asia Pacific. Indeed, approximately 30% of APAC organizations will have adopted some form of cloud computing by 2012.
Clearly, decision makers in most Asian organizations, recognize the benefits of cloud computing, which are manifold. These benefits include the ability to offer greater business agility, cost reduction and a switch in IT spending from capital investment to operational expenditure. Basically, cloud computing is becoming critical as a means of gaining a competitive advantage for today’s organizations. It is now a strategic issue.
Against this background the market for public cloud computing is set to reach $5.8 billion by 2015, growing at a CAGR of 39% between 2010 and 2015.
In 2012, the impact of the shift to cloud computing will become apparent. One of the first obvious effects of this type of technology is the cloud-driven transformation of whole industries. The IT industry itself is being transformed by cloud computing as consumers and businesses depend, to a greater extent, on smartphones and tablets. Increasingly, data resides remotely in datacenters managed by third parties. This data is accessed by devices such as tablets and smartphones which require a comparatively small amount of data to reside locally.
Other industries such as the media industry are being transformed as media content is increasingly streamed from ‘personal clouds’ and the downloading of files becomes unnecessary. In addition to this, access to media content from physical sources such as books and DVDs is declining. Cloud computing is impacting all major industries.
The channel is also being transformed by cloud computing. Businesses can source IT functionality by using a web browser. In many cases, they can bypass the traditional channel. Channel players will need to re-focus their offerings to match the needs of organizations that are shifting their IT resources to the cloud, and away from the reselling of commoditized products and the provision of basic support services.
Platform-as-a-service (PaaS) is set to be the new battleground in the cloud computing industry as PaaS vendors seek to attract developers to their platforms. Today, Force.com has a huge advantage over other platforms as a result of its early entry into the market. However, over the last 18 months or so, new platforms have come online, supported by major vendors such as Microsoft, Amazon, IBM, Google and VMWare. Two or three platforms can be expected to dominate as a critical mass of applications is developed on each.
Cloud brokers will emerge en masse, as organizations seek partners that can customize cloud applications for them. These cloud brokers will typically affiliate themselves with a particular platform such as Force.com. In other words, many more applications will be available from the public cloud and these applications will be much more highly customized than most of today’s cloud applications. In turn, industry fragmentation will occur as many more Software- as-a-Service (SaaS) vendors emerge, many with industry-specific applications. Today’s SaaS offerings are predominantly horizontal.
Private clouds will typically appear in the form of internal clouds that replicate the offerings of Infrastructure-as-a-Service vendors. Many large organizations will engage in datacenter transformation projects or build new datacenters. These organizations will seek to offer internal business units access to IT resources and gain some of the benefits of public cloud services. Chargeback mechanisms will be built in, resources will be accessed via browsers and apps, and the benefits associated with scalability and rapid provisioning will be integrated. These internal clouds will have several of the key characteristics of public clouds.
In summary, cloud computing will have a profound impact on the way businesses operate. The cloud model will engender innovation as well as giving businesses an opportunity to enhance existing business processes, thus making themselves more competitive.
Clearly, decision makers in most Asian organizations, recognize the benefits of cloud computing, which are manifold. These benefits include the ability to offer greater business agility, cost reduction and a switch in IT spending from capital investment to operational expenditure. Basically, cloud computing is becoming critical as a means of gaining a competitive advantage for today’s organizations. It is now a strategic issue.
Against this background the market for public cloud computing is set to reach $5.8 billion by 2015, growing at a CAGR of 39% between 2010 and 2015.
In 2012, the impact of the shift to cloud computing will become apparent. One of the first obvious effects of this type of technology is the cloud-driven transformation of whole industries. The IT industry itself is being transformed by cloud computing as consumers and businesses depend, to a greater extent, on smartphones and tablets. Increasingly, data resides remotely in datacenters managed by third parties. This data is accessed by devices such as tablets and smartphones which require a comparatively small amount of data to reside locally.
Other industries such as the media industry are being transformed as media content is increasingly streamed from ‘personal clouds’ and the downloading of files becomes unnecessary. In addition to this, access to media content from physical sources such as books and DVDs is declining. Cloud computing is impacting all major industries.
The channel is also being transformed by cloud computing. Businesses can source IT functionality by using a web browser. In many cases, they can bypass the traditional channel. Channel players will need to re-focus their offerings to match the needs of organizations that are shifting their IT resources to the cloud, and away from the reselling of commoditized products and the provision of basic support services.
Platform-as-a-service (PaaS) is set to be the new battleground in the cloud computing industry as PaaS vendors seek to attract developers to their platforms. Today, Force.com has a huge advantage over other platforms as a result of its early entry into the market. However, over the last 18 months or so, new platforms have come online, supported by major vendors such as Microsoft, Amazon, IBM, Google and VMWare. Two or three platforms can be expected to dominate as a critical mass of applications is developed on each.
Cloud brokers will emerge en masse, as organizations seek partners that can customize cloud applications for them. These cloud brokers will typically affiliate themselves with a particular platform such as Force.com. In other words, many more applications will be available from the public cloud and these applications will be much more highly customized than most of today’s cloud applications. In turn, industry fragmentation will occur as many more Software- as-a-Service (SaaS) vendors emerge, many with industry-specific applications. Today’s SaaS offerings are predominantly horizontal.
Private clouds will typically appear in the form of internal clouds that replicate the offerings of Infrastructure-as-a-Service vendors. Many large organizations will engage in datacenter transformation projects or build new datacenters. These organizations will seek to offer internal business units access to IT resources and gain some of the benefits of public cloud services. Chargeback mechanisms will be built in, resources will be accessed via browsers and apps, and the benefits associated with scalability and rapid provisioning will be integrated. These internal clouds will have several of the key characteristics of public clouds.
In summary, cloud computing will have a profound impact on the way businesses operate. The cloud model will engender innovation as well as giving businesses an opportunity to enhance existing business processes, thus making themselves more competitive.
Wednesday, November 23, 2011
Four Cloud Computing Myths
Today, cloud computing is becoming mainstream. In Asia Pacific, approximately two-thirds of organizations expect to increase their spending on cloud computing over the next year.
Clearly, decision makers in most Asian organizations, recognize the benefits of cloud computing, which are manifold. These benefits include the ability to offer greater business agility, cost reduction and a switch in IT spending from capital investment to operational expenditure. Basically, cloud computing is becoming critical as a means of gaining a competitive advantage for today’s organizations. It is now a strategic issue.
Nevertheless, adoption of cloud computing, in particular public cloud computing, is being hindered by several myths. The most common myths are:
• Cloud computing is less secure than on-premise alternatives.
• Cloud computing is only suitable for consumers and smaller organizations.
It is not suitable for enterprises.
• Cloud computing is not suitable for mission critical activities.
• Private clouds offer the benefits of cloud computing without the drawbacks.
Myth #1 – Cloud Computing is less secure than on-premise alternatives
Currently, there is no evidence to show that cloud computing is less secure than on-premise alternatives. In fact, there are strong arguments to suggest the opposite. Cloud computing is, in many ways, inherently more secure than on-premise alternatives. Most security breaches are caused by human error. In cloud computing enviroments, more activities are automated, reducing the possibility of human error. Additionally, on-premise systems are usually distributed by nature and therefore have more points of vulnerability. Cloud architectures are more centralized and have fewer points of vulnerability.
Cloud service providers also tend to focus, to a greater extent on security, than most individual organizations. Security breaches, for them, destroy their entire businesses and their credibility as service providers.
Major security breaches in recent years have had nothing to do with cloud computing. Sony, the US DoD, the UK government and others had major security breaches as a result of human error and poor process control. It is much easier to manage these two factors in cloud environments than in on-premise ones.
Myth #2 – Cloud Computing is only suitable for consumers and smaller businesses
Clearly, this statement is not correct as there are many examples of larger organizations using both private clouds and public cloud services. Typically, it is public cloud services that are perceived to be unsuitable for enterprise use. This perception can also be proved to be false.
The best known example of a company that runs on the public cloud is Netflix and it is a US$2 billion organization, hardly a small company. The bulk of its operations are run on Amazon EC2. In APAC, even major financial services firms use public cloud services. For example, BankWest, a subsidiary of Commonwealth bank uses SuccessFactors. Salesforce.com is widely used in enterprises as is Netsuite and Concur.
It is true that regulatory and compliance factors inhibit the use of public cloud services by enterprises, particularly in the financial services sector, across Asia Pacific. However, this only relates to customer data. There are many more applications in areas such as HR, ERP and accounting that lend themselves to the public cloud without causing regulatory challenges.
Myth #3 – Cloud Computing is not suitable for mission critical activities
It is true that, in many cases, cloud computing is not suitable for mission critical activities. However, there are examples of cloud computing being used for mission critical workloads and the number of such examples will grow rapidly. For example, Netflix uses Amazon for mission critical activities. Increasingly, we are seeing a variety of workloads shifting to the cloud, including the public cloud. Public cloud service providers are now offering improved SLAs, similar to other providers of services centered around mission critical activities.
The increased use of smart phones and tablets by senior executives and their demands to do their work on these devices is driving mission critical workloads into the cloud. These mobile devices carry minimal amounts of data and are designed to access data located remotely, in the cloud.
Public cloud services also offer high levels of business agility which is important with mission critical workloads.
Finally, 67% of server infrastructures are virtualized. Virtualization is a key step on the journey towards cloud computing. Mission critical workloads can be expected to share this journey.
Myth #4 – Private Clouds offer the benefits of cloud computing without the drawbacks
Security is often given as a drawback of public cloud computing that can be overcome by using private clouds. However, there is no evidence to suggest that private clouds are more secure than public clouds. In fact, most public clouds deploy best practice security policies and procedures. This is not always the case with private clouds.
There are a variety of different types of private clouds offering a few or many of the benefits of cloud computing. Typically, private clouds do not offer the following benefits that are usually offered by public cloud services:
• An Opex model instead of a Capex one.
• As much scalability as can be offered by public clouds.
• Economies of scale associated with sharing resources, which are found in
public clouds.
• Little need for support services and scarce skills.
In summary, there are reasons to be cautious about any shift in the way business is done and this includes the shift to cloud computing. However, over the past few years, outright falsehoods about cloud computing, specifically the public cloud model have spread widely and influenced perceptions within the business community. It is time for these falsehoods to be challenged more widely and for the benefits of cloud computing to be evaluated without prejudice.
Clearly, decision makers in most Asian organizations, recognize the benefits of cloud computing, which are manifold. These benefits include the ability to offer greater business agility, cost reduction and a switch in IT spending from capital investment to operational expenditure. Basically, cloud computing is becoming critical as a means of gaining a competitive advantage for today’s organizations. It is now a strategic issue.
Nevertheless, adoption of cloud computing, in particular public cloud computing, is being hindered by several myths. The most common myths are:
• Cloud computing is less secure than on-premise alternatives.
• Cloud computing is only suitable for consumers and smaller organizations.
It is not suitable for enterprises.
• Cloud computing is not suitable for mission critical activities.
• Private clouds offer the benefits of cloud computing without the drawbacks.
Myth #1 – Cloud Computing is less secure than on-premise alternatives
Currently, there is no evidence to show that cloud computing is less secure than on-premise alternatives. In fact, there are strong arguments to suggest the opposite. Cloud computing is, in many ways, inherently more secure than on-premise alternatives. Most security breaches are caused by human error. In cloud computing enviroments, more activities are automated, reducing the possibility of human error. Additionally, on-premise systems are usually distributed by nature and therefore have more points of vulnerability. Cloud architectures are more centralized and have fewer points of vulnerability.
Cloud service providers also tend to focus, to a greater extent on security, than most individual organizations. Security breaches, for them, destroy their entire businesses and their credibility as service providers.
Major security breaches in recent years have had nothing to do with cloud computing. Sony, the US DoD, the UK government and others had major security breaches as a result of human error and poor process control. It is much easier to manage these two factors in cloud environments than in on-premise ones.
Myth #2 – Cloud Computing is only suitable for consumers and smaller businesses
Clearly, this statement is not correct as there are many examples of larger organizations using both private clouds and public cloud services. Typically, it is public cloud services that are perceived to be unsuitable for enterprise use. This perception can also be proved to be false.
The best known example of a company that runs on the public cloud is Netflix and it is a US$2 billion organization, hardly a small company. The bulk of its operations are run on Amazon EC2. In APAC, even major financial services firms use public cloud services. For example, BankWest, a subsidiary of Commonwealth bank uses SuccessFactors. Salesforce.com is widely used in enterprises as is Netsuite and Concur.
It is true that regulatory and compliance factors inhibit the use of public cloud services by enterprises, particularly in the financial services sector, across Asia Pacific. However, this only relates to customer data. There are many more applications in areas such as HR, ERP and accounting that lend themselves to the public cloud without causing regulatory challenges.
Myth #3 – Cloud Computing is not suitable for mission critical activities
It is true that, in many cases, cloud computing is not suitable for mission critical activities. However, there are examples of cloud computing being used for mission critical workloads and the number of such examples will grow rapidly. For example, Netflix uses Amazon for mission critical activities. Increasingly, we are seeing a variety of workloads shifting to the cloud, including the public cloud. Public cloud service providers are now offering improved SLAs, similar to other providers of services centered around mission critical activities.
The increased use of smart phones and tablets by senior executives and their demands to do their work on these devices is driving mission critical workloads into the cloud. These mobile devices carry minimal amounts of data and are designed to access data located remotely, in the cloud.
Public cloud services also offer high levels of business agility which is important with mission critical workloads.
Finally, 67% of server infrastructures are virtualized. Virtualization is a key step on the journey towards cloud computing. Mission critical workloads can be expected to share this journey.
Myth #4 – Private Clouds offer the benefits of cloud computing without the drawbacks
Security is often given as a drawback of public cloud computing that can be overcome by using private clouds. However, there is no evidence to suggest that private clouds are more secure than public clouds. In fact, most public clouds deploy best practice security policies and procedures. This is not always the case with private clouds.
There are a variety of different types of private clouds offering a few or many of the benefits of cloud computing. Typically, private clouds do not offer the following benefits that are usually offered by public cloud services:
• An Opex model instead of a Capex one.
• As much scalability as can be offered by public clouds.
• Economies of scale associated with sharing resources, which are found in
public clouds.
• Little need for support services and scarce skills.
In summary, there are reasons to be cautious about any shift in the way business is done and this includes the shift to cloud computing. However, over the past few years, outright falsehoods about cloud computing, specifically the public cloud model have spread widely and influenced perceptions within the business community. It is time for these falsehoods to be challenged more widely and for the benefits of cloud computing to be evaluated without prejudice.
Friday, October 14, 2011
How is Plato Relevant to Business Today?
I was recently asked to explain the relevance of Plato in 5 minutes to an audience of senior managers, from across Asia Pacific, at Frost & Sullivan's GIL Congress in Singapore on 13 October 2011. I accepted the challenge. In doing so, I needed to simplify Plato's teachings greatly in order to get my message across. The speech was as follows:
"Throughout my working life, I have heard people talking about the importance of famous writers and thinkers.
For example, I often hear about the importance of understanding Shakespeare, the importance of ancient philosophers like Plato, as well as more recent ones like Nietzche or Sartre.
At school, I learned Latin and Ancient Greek.
But, until very recently I could not comprehend how such studying and such concepts could possibly benefit me at work or help anyone in business. I believe that this view is shared by many.
5 years ago, I completed an MBA. As part of the course, I studied Western philosophy and how it relates to business and the modern world.
For me, this was an epiphany.
I do not have time to talk to you about more than one philosopher or writer.
So I have selected one. I’m going to very briefly talk about Plato and his massive contribution to the way the world operates and, in turn, the way large MNCs operate.
Before Plato, people had a very simple view of the world.
You were what you did, basically. For example, you could be a warrior and that defined everything about you and your role in society.
There was no such thing as a concept, or an idea.
Everything was understood through the use of your senses such as eating, or running or dying.
Plato enabled us to consider concepts such as a thought or knowledge.
Plato argued that there were two worlds, the one we can sense by seeing it, hearing it, tasting it and touching it and the one we can think of using our minds. That’s Plato in a nutshell.
This philosophical view created concepts that we take for granted today such as justice, courage, virtue, innovation and leadership.
These are all abstract concepts and each of us in this room will have a different understanding of these concepts.
By abstract, I mean that we can’t use senses to understand, for example, leadership.
We can’t physically touch leadership. It is a concept.
This is unlike say a potato, we can touch, feel, smell and taste a potato and all of us have a clear idea of what a potato is.
By understanding Plato, we understand that terms like leadership, management, innovation and so forth are abstract and therefore highly subjective.
These terms mean different things to different people, in different contexts.
In business, it is important to understand clearly what is meant by these terms or effective decision making becomes paralyzed and managers become confused by jargon.
Plato’s philosophy, helps us to frame our questions and use reason to understand how such concepts can benefit us and the organizations that employ us.
In other words, Plato arms us with a 'bullshit detector' and forces us to minimize the amount of bullshit that we, ourselves, spout.
Today, many of us do not question the meaning of concepts such as leadership, innovation and management. We need to do this.
Understanding the thinking around them and what they mean in specific contexts is critical.
For example, many of us confuse the meanings of management and leadership.
Plato’s philosophy encourages us to ask the difference between the two as well as ask questions such as 'Is a good manager also a good leader'? Do we want a manager or a leader for a certain role or both?
And in the context of today’s event, 'What is the relationship between growth, innovation and leadership'?
I never imagined I would try to explain Plato and his relevance to business in five minutes. I hope that you have found this to be useful.
Thanks for your attention".
"Throughout my working life, I have heard people talking about the importance of famous writers and thinkers.
For example, I often hear about the importance of understanding Shakespeare, the importance of ancient philosophers like Plato, as well as more recent ones like Nietzche or Sartre.
At school, I learned Latin and Ancient Greek.
But, until very recently I could not comprehend how such studying and such concepts could possibly benefit me at work or help anyone in business. I believe that this view is shared by many.
5 years ago, I completed an MBA. As part of the course, I studied Western philosophy and how it relates to business and the modern world.
For me, this was an epiphany.
I do not have time to talk to you about more than one philosopher or writer.
So I have selected one. I’m going to very briefly talk about Plato and his massive contribution to the way the world operates and, in turn, the way large MNCs operate.
Before Plato, people had a very simple view of the world.
You were what you did, basically. For example, you could be a warrior and that defined everything about you and your role in society.
There was no such thing as a concept, or an idea.
Everything was understood through the use of your senses such as eating, or running or dying.
Plato enabled us to consider concepts such as a thought or knowledge.
Plato argued that there were two worlds, the one we can sense by seeing it, hearing it, tasting it and touching it and the one we can think of using our minds. That’s Plato in a nutshell.
This philosophical view created concepts that we take for granted today such as justice, courage, virtue, innovation and leadership.
These are all abstract concepts and each of us in this room will have a different understanding of these concepts.
By abstract, I mean that we can’t use senses to understand, for example, leadership.
We can’t physically touch leadership. It is a concept.
This is unlike say a potato, we can touch, feel, smell and taste a potato and all of us have a clear idea of what a potato is.
By understanding Plato, we understand that terms like leadership, management, innovation and so forth are abstract and therefore highly subjective.
These terms mean different things to different people, in different contexts.
In business, it is important to understand clearly what is meant by these terms or effective decision making becomes paralyzed and managers become confused by jargon.
Plato’s philosophy, helps us to frame our questions and use reason to understand how such concepts can benefit us and the organizations that employ us.
In other words, Plato arms us with a 'bullshit detector' and forces us to minimize the amount of bullshit that we, ourselves, spout.
Today, many of us do not question the meaning of concepts such as leadership, innovation and management. We need to do this.
Understanding the thinking around them and what they mean in specific contexts is critical.
For example, many of us confuse the meanings of management and leadership.
Plato’s philosophy encourages us to ask the difference between the two as well as ask questions such as 'Is a good manager also a good leader'? Do we want a manager or a leader for a certain role or both?
And in the context of today’s event, 'What is the relationship between growth, innovation and leadership'?
I never imagined I would try to explain Plato and his relevance to business in five minutes. I hope that you have found this to be useful.
Thanks for your attention".
Sunday, September 25, 2011
Will the Public Cloud Model of Computing Dominate in 2020?
I am always interested at how we often fail to see ‘shades of grey’ and instead tend to view choices as being binary.
I have spent the past several years arguing that we are going to source the bulk of our IT resources from remote datacenters that are managed by third parties and that browsers will be the interfaces that we use for these activities. I still believe this to be the case except that increasingly, we will access these resources by using apps on our lighter and more portable devices.
Nevertheless, many still view cloud computing as a binary decision. Either adopt cloud computing across the board and expose yourself to all the risks associated with it, or you do not adopt it and continue to invest in on-premise resources. Clearly, this is not and never will be the case.
Cloud computing, in many ways, is making IT more complex. It is adding yet another dimension to heterogeneous IT environments. Corporate IT environments typically consist of a mix of mainframe technology from the 1960s and 1970s, client/server technology and cloud computing technology. This will continue. Cloud computing technology will increasingly be deployed in the form of private clouds and public clouds. It will soon be the dominant IT environment as client/server technology gets displaced.
However, client/server and mainframe technology will not disappear. It will instead account for a smaller proportion of IT infrastructures. In the meantime, large organizations will focus on integrating cloud computing with their existing infrastructures and this will be a major focus over the next few years. Already, systems integrators are massively benefiting from the huge opportunity that this additional complexity brings to them.
There will be a steady move to adopting IT resources, where appropriate from the public cloud. This is where the real disruption will occur. Why invest in on-site technology whether it is so called private cloud technology or other legacy technology, when you can access the necessary resources over the public Internet? In other words, why not source as much as possible from the cloud?
Some argue that there is a move back to processing on local devices. It is true that many apps carry out processing on local devices, but the bulk of processing and IT activity will occur remotely. Apps will offer some customization and, in my view, are a way of making the cloud work more effectively. They offer more personalized ‘windows to the cloud’ than is the case with traditional browsers. Indeed, browsers will be used much less often as a way of accessing the cloud.
In summary, more and more resources will be sourced from the public cloud. This is the real impact of cloud computing. Public cloud resources will need to be integrated with on-site investments which are made up of legacy mainframe and client/server systems as well as more recent datacenter or private cloud investments. By 2020, on-site IT activity will account for a very small proportion of an organization’s overall IT activity. In other words, the public cloud will be the dominant model of computing very soon.
I have spent the past several years arguing that we are going to source the bulk of our IT resources from remote datacenters that are managed by third parties and that browsers will be the interfaces that we use for these activities. I still believe this to be the case except that increasingly, we will access these resources by using apps on our lighter and more portable devices.
Nevertheless, many still view cloud computing as a binary decision. Either adopt cloud computing across the board and expose yourself to all the risks associated with it, or you do not adopt it and continue to invest in on-premise resources. Clearly, this is not and never will be the case.
Cloud computing, in many ways, is making IT more complex. It is adding yet another dimension to heterogeneous IT environments. Corporate IT environments typically consist of a mix of mainframe technology from the 1960s and 1970s, client/server technology and cloud computing technology. This will continue. Cloud computing technology will increasingly be deployed in the form of private clouds and public clouds. It will soon be the dominant IT environment as client/server technology gets displaced.
However, client/server and mainframe technology will not disappear. It will instead account for a smaller proportion of IT infrastructures. In the meantime, large organizations will focus on integrating cloud computing with their existing infrastructures and this will be a major focus over the next few years. Already, systems integrators are massively benefiting from the huge opportunity that this additional complexity brings to them.
There will be a steady move to adopting IT resources, where appropriate from the public cloud. This is where the real disruption will occur. Why invest in on-site technology whether it is so called private cloud technology or other legacy technology, when you can access the necessary resources over the public Internet? In other words, why not source as much as possible from the cloud?
Some argue that there is a move back to processing on local devices. It is true that many apps carry out processing on local devices, but the bulk of processing and IT activity will occur remotely. Apps will offer some customization and, in my view, are a way of making the cloud work more effectively. They offer more personalized ‘windows to the cloud’ than is the case with traditional browsers. Indeed, browsers will be used much less often as a way of accessing the cloud.
In summary, more and more resources will be sourced from the public cloud. This is the real impact of cloud computing. Public cloud resources will need to be integrated with on-site investments which are made up of legacy mainframe and client/server systems as well as more recent datacenter or private cloud investments. By 2020, on-site IT activity will account for a very small proportion of an organization’s overall IT activity. In other words, the public cloud will be the dominant model of computing very soon.
Sunday, August 7, 2011
Managing Complexity in the Cloud
Although cloud computing offers enormous benefits to today’s organizations, it also adds to the overall complexity of IT environments.
If the bulk of IT resources and workloads, including IT management and monitoring, were sourced remotely from the cloud, IT environments would, in many ways, be simplified and would focus to a greater extent on the provision of business services and business value to organizations.
However, most IT resources continue to remain on-premise and need to be integrated with and to co-ordinate with resources and services that are sourced from the cloud. This adds to the overall complexity of most enterprise IT environments. Indeed, many of today’s organizations are working with a mix of proprietary mainframe technology, client/server technology, other on-premise resources such as private clouds and public clouds (in which resources reside off-site).
For this reason, there is a much greater need for tools that can manage and monitor integrated cloud and on-premise IT environments. Consequently, many enterprise customers are placing greater emphasis on cloud management software strategies. Organizations are searching for an end to end, top down view of complex business processes and workloads, in order to increase productivity and engender greater business agility. Managing these environments goes way beyond provisioning and VM sprawl reduction. Security management, performance management, utlilization, availability, compliance, and productivity all need to be addressed by management tools.
So, managing and monitoring complex heterogeneous IT environments, in which an increasingly large proportion of IT resources are being delivered from the cloud is critical. Most management and monitoring tools remain on-premise and integrated with legacy infrastructure. Addressing changing needs which are often driven by migration to cloud computing is a major challenge for legacy on-premise implementations of IT management and monitoring software. Therefore, for buyers of IT management software, it increasingly makes logical sense to seek flexible and scalable SaaS versions of IT management software or IT management as a service.
In a recent discussion between myself and some Nimsoft executives, we discussed the SaaS market for IT management and monitoring. Nimsoft combines IT monitoring and service management to provide ITIL based IT Management as a service. It is joined by many small companies such as Spiceworks and Zenoss which have emerged to offer IT management as a service, as well as the larger traditional IT management firms. IT management as a service, offered by companies such as Nimsoft, is much easier to implement and use than traditional on premise IT management and monitoring products. The largest enterprises with the most complex IT environments will continue to express concern about the security, stability and strategic fit of cloud solutions. Nevertheless, IT management as a service offers enormous benefits to small and medium sized businesses and objections from the largest companies can be expected to be steadily overcome.
The ability of IT management as a service products to be integrated with on-premise resources as well as public cloud services, is critical. Organizations now need a console view of their complete IT environments as well as the benefits of cloud computing such as rapid provisioning, agility and scalability. The IT management as a service market, together with other cloud middleware markets, which focus on other forms of cloud computing enablement, will become prominent over the next year. Furthermore, IT management as a service will soon be commonly found in the largest organizations.
If the bulk of IT resources and workloads, including IT management and monitoring, were sourced remotely from the cloud, IT environments would, in many ways, be simplified and would focus to a greater extent on the provision of business services and business value to organizations.
However, most IT resources continue to remain on-premise and need to be integrated with and to co-ordinate with resources and services that are sourced from the cloud. This adds to the overall complexity of most enterprise IT environments. Indeed, many of today’s organizations are working with a mix of proprietary mainframe technology, client/server technology, other on-premise resources such as private clouds and public clouds (in which resources reside off-site).
For this reason, there is a much greater need for tools that can manage and monitor integrated cloud and on-premise IT environments. Consequently, many enterprise customers are placing greater emphasis on cloud management software strategies. Organizations are searching for an end to end, top down view of complex business processes and workloads, in order to increase productivity and engender greater business agility. Managing these environments goes way beyond provisioning and VM sprawl reduction. Security management, performance management, utlilization, availability, compliance, and productivity all need to be addressed by management tools.
So, managing and monitoring complex heterogeneous IT environments, in which an increasingly large proportion of IT resources are being delivered from the cloud is critical. Most management and monitoring tools remain on-premise and integrated with legacy infrastructure. Addressing changing needs which are often driven by migration to cloud computing is a major challenge for legacy on-premise implementations of IT management and monitoring software. Therefore, for buyers of IT management software, it increasingly makes logical sense to seek flexible and scalable SaaS versions of IT management software or IT management as a service.
In a recent discussion between myself and some Nimsoft executives, we discussed the SaaS market for IT management and monitoring. Nimsoft combines IT monitoring and service management to provide ITIL based IT Management as a service. It is joined by many small companies such as Spiceworks and Zenoss which have emerged to offer IT management as a service, as well as the larger traditional IT management firms. IT management as a service, offered by companies such as Nimsoft, is much easier to implement and use than traditional on premise IT management and monitoring products. The largest enterprises with the most complex IT environments will continue to express concern about the security, stability and strategic fit of cloud solutions. Nevertheless, IT management as a service offers enormous benefits to small and medium sized businesses and objections from the largest companies can be expected to be steadily overcome.
The ability of IT management as a service products to be integrated with on-premise resources as well as public cloud services, is critical. Organizations now need a console view of their complete IT environments as well as the benefits of cloud computing such as rapid provisioning, agility and scalability. The IT management as a service market, together with other cloud middleware markets, which focus on other forms of cloud computing enablement, will become prominent over the next year. Furthermore, IT management as a service will soon be commonly found in the largest organizations.
Sunday, July 17, 2011
China in Pole Position for Cloud Computing Opportunities
Although cloud computing has been slow to take off in much of APAC, this is starting to change as more geographies become ‘cloud ready’. Most interest in cloud computing adoption in APAC, is, of course, directed at the region’s largest economy, China.
This can be explained by the strongly held view that China will offer the greatest cloud computing opportunities in the world within the next five years. China does not have the legacy infrastructure of the more mature economies and is investing huge amounts into new infrastructure that will enable the provision of cloud computing services and make the adoption of these services very attractive.
In mature economies, large organizations have typically invested millions of dollars in on-premise infrastructure. In order to see a return on their investments, these organizations are often reluctant to move into a world where most infrastructure, applications and content reside off-site. Strong vested interests also impede the adoption of cloud computing. A shift to using cloud services at the expense of on premise infrastructure, challenges the role of IT departments. Hence, many within IT departments are reluctant to propose cloud computing options. Similarly, suppliers of hardware and software to large organizations may view cloud computing as a threat to strong revenue streams from their legacy businesses. These organizations are unlikely to propose options to their clients that reduce the size of a deal.
Organizations in China and in some other geographies in the APAC region such as India, Thailand, Indonesia and Vietnam don’t face these challenges. The biggest challenge that they face is infrastructure and the impact of this infrastructure (or lack of it) on the performance and availability of cloud computing. However, this is changing rapidly, particularly within China.
In China, cities such as Shanghai, Shenzhen, Guangzhou and Ordos now have infrastructure that lends itself to the extremely rapid takeup of cloud computing services. Massive data centers are being built such as the data center in Langfang, Hebei province (being built by IBM and Range Technology) to meet demand for cloud services, in particular IaaS.
China’s strong position is compounded by the readiness of large telecommunications vendors such as China Telecom and China Mobile to offer cloud computing services, and the growth in local Chinese suppliers of cloud computing services. Indeed, Microsoft is now working with China Mobile to develop and deliver cloud services while SAP is doing the same with China Telecom. Both global software companies, clearly recognize the importance of establishing themselves in the Chinese cloud computing market. Examples of Chinese suppliers of cloud services are Kingdee and Ufida. Both companies have a heritage in the provision of on –premise software. Both are now making strategic moves to ensure that they are major suppliers of software as a service in China.
In summary, it has become clear only in the last few months that parts of China now have the infrastructure to enable the provision of cloud computing services; the suppliers positioned to deliver these services; and demand for these services. They do not have the same brake on cloud computing adoption, namely legacy business and investments, which exists in mature economies. Key regions within China are now poised to offer some of the most significant cloud computing opportunities in the world.
This can be explained by the strongly held view that China will offer the greatest cloud computing opportunities in the world within the next five years. China does not have the legacy infrastructure of the more mature economies and is investing huge amounts into new infrastructure that will enable the provision of cloud computing services and make the adoption of these services very attractive.
In mature economies, large organizations have typically invested millions of dollars in on-premise infrastructure. In order to see a return on their investments, these organizations are often reluctant to move into a world where most infrastructure, applications and content reside off-site. Strong vested interests also impede the adoption of cloud computing. A shift to using cloud services at the expense of on premise infrastructure, challenges the role of IT departments. Hence, many within IT departments are reluctant to propose cloud computing options. Similarly, suppliers of hardware and software to large organizations may view cloud computing as a threat to strong revenue streams from their legacy businesses. These organizations are unlikely to propose options to their clients that reduce the size of a deal.
Organizations in China and in some other geographies in the APAC region such as India, Thailand, Indonesia and Vietnam don’t face these challenges. The biggest challenge that they face is infrastructure and the impact of this infrastructure (or lack of it) on the performance and availability of cloud computing. However, this is changing rapidly, particularly within China.
In China, cities such as Shanghai, Shenzhen, Guangzhou and Ordos now have infrastructure that lends itself to the extremely rapid takeup of cloud computing services. Massive data centers are being built such as the data center in Langfang, Hebei province (being built by IBM and Range Technology) to meet demand for cloud services, in particular IaaS.
China’s strong position is compounded by the readiness of large telecommunications vendors such as China Telecom and China Mobile to offer cloud computing services, and the growth in local Chinese suppliers of cloud computing services. Indeed, Microsoft is now working with China Mobile to develop and deliver cloud services while SAP is doing the same with China Telecom. Both global software companies, clearly recognize the importance of establishing themselves in the Chinese cloud computing market. Examples of Chinese suppliers of cloud services are Kingdee and Ufida. Both companies have a heritage in the provision of on –premise software. Both are now making strategic moves to ensure that they are major suppliers of software as a service in China.
In summary, it has become clear only in the last few months that parts of China now have the infrastructure to enable the provision of cloud computing services; the suppliers positioned to deliver these services; and demand for these services. They do not have the same brake on cloud computing adoption, namely legacy business and investments, which exists in mature economies. Key regions within China are now poised to offer some of the most significant cloud computing opportunities in the world.
Sunday, May 15, 2011
Social Media and Innovation in the Financial Services Sector
I recently attended a conference on IT in financial services in Macau and had the opportunity to meet with several CIOs from prominent financial services organizations in the Asia Pacific region.
During the event, much discussion was around innovation. Financial services organizations are exploring ways in which technology can engender innovation, such as the manner in which they engage with their customers and the types of products and services that they offer.
Financial services firms have a very strong history of using technology to engage with customers in new and innovative ways. For example, Internet banking was quick to emerge once Web usage became widespread. Similarly, smart phone bank apps appeared very rapidly and allow us to interact with banks using our smart phones.
Social media also offers opportunities to innovate in the way financial services firms interface with their customers and other stakeholders. However, most financial services organizations in Asia Pacific are more pre-occupied with blocking employee access to social media than engendering innovative use of social media. The reason for this is usually given as a need to adhere to internal policies. But what is driving such policies? In my discussions with CIOs, the need for security and data leakage prevention was mixed up with concerns around productivity. To me, these are two totally different beasts and need to be addressed in totally different ways.
Data leakage and other aspects of security must be addressed comprehensively by financial services organizations. Is it necessary to block or to restrict access to social media to achieve these goals? Products such as Zscaler allow organizations to offer access to social media while preventing any uploads or downloads. It enables organizations to separate security and productivity concerns that are associated with social media. Such products address security risks while permitting access to social media. I know of at least one major financial services organization in Asia that uses Zscaler for precisely this reason. The CIO believes that allowing staff to use social media can enable them to work more efficiently and engender innovation. He stated that even though he doesn’t use social media extensively for his work, he recognizes that he cannot force others to approach their work in the same way, especially younger workers. In this particular institution, there is no longer a concern around falling productivity because of social media usage. It acknowledges that attempting to restrict access to social media is a losing battle and will eventually backfire as social media tools become increasingly widespread within businesses.
Concerns around falling productivity existed around the use of spreadsheets in the 1980s and around the Web in the 1990s. These concerns have proved to be unfounded as employees found new ways in which these tools could support them in doing their jobs. The same is the case with social media. Ultimately, employees must be measured on their performance. No link has been demonstrated between improved employee performance and restrictions on social media. It is doubtful that the two are even related. Financial services institutions must focus on real issues that impact them when social media is used. They need to concern themselves with engendering innovation and allowing individual employees to work in the ways that make them productive, while addressing the security issues around these activities. Social media will be a key tool for financial services as they innovate, enhance customer experience, and make themselves more competitive. Indeed, blocking and restricting access to social media, based on unproven productivity concerns may well make financial services firms less competitive, less efficient and less productive.
During the event, much discussion was around innovation. Financial services organizations are exploring ways in which technology can engender innovation, such as the manner in which they engage with their customers and the types of products and services that they offer.
Financial services firms have a very strong history of using technology to engage with customers in new and innovative ways. For example, Internet banking was quick to emerge once Web usage became widespread. Similarly, smart phone bank apps appeared very rapidly and allow us to interact with banks using our smart phones.
Social media also offers opportunities to innovate in the way financial services firms interface with their customers and other stakeholders. However, most financial services organizations in Asia Pacific are more pre-occupied with blocking employee access to social media than engendering innovative use of social media. The reason for this is usually given as a need to adhere to internal policies. But what is driving such policies? In my discussions with CIOs, the need for security and data leakage prevention was mixed up with concerns around productivity. To me, these are two totally different beasts and need to be addressed in totally different ways.
Data leakage and other aspects of security must be addressed comprehensively by financial services organizations. Is it necessary to block or to restrict access to social media to achieve these goals? Products such as Zscaler allow organizations to offer access to social media while preventing any uploads or downloads. It enables organizations to separate security and productivity concerns that are associated with social media. Such products address security risks while permitting access to social media. I know of at least one major financial services organization in Asia that uses Zscaler for precisely this reason. The CIO believes that allowing staff to use social media can enable them to work more efficiently and engender innovation. He stated that even though he doesn’t use social media extensively for his work, he recognizes that he cannot force others to approach their work in the same way, especially younger workers. In this particular institution, there is no longer a concern around falling productivity because of social media usage. It acknowledges that attempting to restrict access to social media is a losing battle and will eventually backfire as social media tools become increasingly widespread within businesses.
Concerns around falling productivity existed around the use of spreadsheets in the 1980s and around the Web in the 1990s. These concerns have proved to be unfounded as employees found new ways in which these tools could support them in doing their jobs. The same is the case with social media. Ultimately, employees must be measured on their performance. No link has been demonstrated between improved employee performance and restrictions on social media. It is doubtful that the two are even related. Financial services institutions must focus on real issues that impact them when social media is used. They need to concern themselves with engendering innovation and allowing individual employees to work in the ways that make them productive, while addressing the security issues around these activities. Social media will be a key tool for financial services as they innovate, enhance customer experience, and make themselves more competitive. Indeed, blocking and restricting access to social media, based on unproven productivity concerns may well make financial services firms less competitive, less efficient and less productive.
Thursday, April 21, 2011
Offshore Outsourcing - The Unspeakable Taboo
I recently participated in a contact centre industry event in Sydney. Predictably, many of the vendors that sponsored and presented at the event were promoting offshore contact centre services.
The sales messages, as always were very compelling. Offshore contact centre destinations such as the Philippines offer many benefits above and beyond lowering costs. The availability of skilled staff who are willing to work as contact centre agents is much greater than in mature economies.
However, what was most interesting to me was the unwillingness of delegates to openly talk about the benefits of sourcing contact centre services from offshore locations. Talking positively about offshore outsourcing has now become taboo. Companies that purchase these services prefer not to discuss them at all. Financial services organisations, in particular, seem terrified of negative stories appearing in the press about them ‘sending local jobs overseas’ and creating unemployment in their home markets. Worse still, they fear being forced to justify their business decisions to politicians that take a steadily growing interest in their operational activities.
Indeed, offshore outsourcing has become a major political issue. The most commonly articulated views on this matter are negative. Few politicians will argue publicly in favour of sourcing services from offshore destinations. Only the business press writes about any of the benefits of offshoring.
To me, the success of the offshore outsourcing market is one of the few obvious benefits that globalisation delivers to ordinary people. It creates jobs and business in parts of the world that have been starved of investment and opportunities. It also enables poorer countries to sell services to rich countries. Today, Australia sells a lot more to India than India does to Australia. So, it doesn’t seem right that people should complain about the balance of trade becoming more even as Australian companies buy more services from India. We cannot continue to live in a world where a few countries hoard most of the wealth and create international trading environments that reinforce global inequalities.
Indeed, large businesses in Western countries prefer not to discuss the massive benefits that offshoring is offering to communities in poorer countries. They seem to be unwilling to stand their ground on this issue. In the case of offshoring, it is one of the few areas in which financial services organisations can claim to be on the moral high ground.
An interesting paradox has emerged in Western countries. It is often argued that those that work in the banking sector must continue to receive very large bonus payments or their jobs will go offshore. On the other hand, it is also argued that we must be in a position to lower the costs associated with employing ordinary workers or risk their jobs going offshore. Many of those in the financial services sector are happy to publicly justify sky high bonuses that clearly demonstrate market failure to any student of economics. On the other hand, they are much less likely to publicly justify an activity in which the market is working to the benefit of ordinary people, namely the provision of services from poorer countries that benefit hugely from this trade.
The sales messages, as always were very compelling. Offshore contact centre destinations such as the Philippines offer many benefits above and beyond lowering costs. The availability of skilled staff who are willing to work as contact centre agents is much greater than in mature economies.
However, what was most interesting to me was the unwillingness of delegates to openly talk about the benefits of sourcing contact centre services from offshore locations. Talking positively about offshore outsourcing has now become taboo. Companies that purchase these services prefer not to discuss them at all. Financial services organisations, in particular, seem terrified of negative stories appearing in the press about them ‘sending local jobs overseas’ and creating unemployment in their home markets. Worse still, they fear being forced to justify their business decisions to politicians that take a steadily growing interest in their operational activities.
Indeed, offshore outsourcing has become a major political issue. The most commonly articulated views on this matter are negative. Few politicians will argue publicly in favour of sourcing services from offshore destinations. Only the business press writes about any of the benefits of offshoring.
To me, the success of the offshore outsourcing market is one of the few obvious benefits that globalisation delivers to ordinary people. It creates jobs and business in parts of the world that have been starved of investment and opportunities. It also enables poorer countries to sell services to rich countries. Today, Australia sells a lot more to India than India does to Australia. So, it doesn’t seem right that people should complain about the balance of trade becoming more even as Australian companies buy more services from India. We cannot continue to live in a world where a few countries hoard most of the wealth and create international trading environments that reinforce global inequalities.
Indeed, large businesses in Western countries prefer not to discuss the massive benefits that offshoring is offering to communities in poorer countries. They seem to be unwilling to stand their ground on this issue. In the case of offshoring, it is one of the few areas in which financial services organisations can claim to be on the moral high ground.
An interesting paradox has emerged in Western countries. It is often argued that those that work in the banking sector must continue to receive very large bonus payments or their jobs will go offshore. On the other hand, it is also argued that we must be in a position to lower the costs associated with employing ordinary workers or risk their jobs going offshore. Many of those in the financial services sector are happy to publicly justify sky high bonuses that clearly demonstrate market failure to any student of economics. On the other hand, they are much less likely to publicly justify an activity in which the market is working to the benefit of ordinary people, namely the provision of services from poorer countries that benefit hugely from this trade.
Sunday, March 13, 2011
Hail the Consumer Cloud
Most cloud-computing related discussion has focused on the use of cloud computing by businesses and government.
However,among consumers, we are witnessing a shift to full cloud computing by stealth. Already, consumers use well known consumer cloud offerings, such as Google’s offerings, Facebook and other collaboration and sharing applications. Video and music streaming are becoming more common. For example, Spotify offers access to an enormous catalogue of music which can be streamed. There are no files to download. Customers pay a subscription fee per month.
Will the notion of files residing locally on devices owned by consumers soon seem quaint and old-fashioned? For music and video, will files become rare as streaming takes over? In effect, consumer choice is driving a shift away from files. Firms like Spotify will undermine the iTunes model of purchasing content as consumers cease to own discrete pieces of content but instead gain access to vast warehouses of content.
True, consumers continue to use personal productivity software products such as Microsoft Office which reside locally. But, for how much longer? Cloud-based alternatives are available including products from Microsoft, and these are witnessing very rapid uptake.
Offerings such as iCloud that provide virtual desktops can be expected to gradually displace traditional PC software. Dropbox offers storage as a service and is widely used by consumers. Other consumer offerings that are experiencing rapid uptake are the chargeable Amazon S3 and the Rackspace Cloud.
The consumer IT market has in recent years seen the emergence of new technology giants such as Facebook and Google. Microsoft has continued to address consumer needs and is shifting to cloud computing rapidly. These firms understand consumers and the impact of their behaviours and choices on business and government computing. It is the more traditional IT suppliers which have more distant consumer relationships that stand to lose as consumers drive yet more change in the IT business.
However,among consumers, we are witnessing a shift to full cloud computing by stealth. Already, consumers use well known consumer cloud offerings, such as Google’s offerings, Facebook and other collaboration and sharing applications. Video and music streaming are becoming more common. For example, Spotify offers access to an enormous catalogue of music which can be streamed. There are no files to download. Customers pay a subscription fee per month.
Will the notion of files residing locally on devices owned by consumers soon seem quaint and old-fashioned? For music and video, will files become rare as streaming takes over? In effect, consumer choice is driving a shift away from files. Firms like Spotify will undermine the iTunes model of purchasing content as consumers cease to own discrete pieces of content but instead gain access to vast warehouses of content.
True, consumers continue to use personal productivity software products such as Microsoft Office which reside locally. But, for how much longer? Cloud-based alternatives are available including products from Microsoft, and these are witnessing very rapid uptake.
Offerings such as iCloud that provide virtual desktops can be expected to gradually displace traditional PC software. Dropbox offers storage as a service and is widely used by consumers. Other consumer offerings that are experiencing rapid uptake are the chargeable Amazon S3 and the Rackspace Cloud.
The consumer IT market has in recent years seen the emergence of new technology giants such as Facebook and Google. Microsoft has continued to address consumer needs and is shifting to cloud computing rapidly. These firms understand consumers and the impact of their behaviours and choices on business and government computing. It is the more traditional IT suppliers which have more distant consumer relationships that stand to lose as consumers drive yet more change in the IT business.
Thursday, February 10, 2011
Cloud Computing Specialisation and the Emergence of Local Champions
I recently attended an announcement of the launch of an Australia-based IaaS firm, Ninefold. The firm addresses many of the challenges created by cloud computing. Its local IaaS offerings represent a key part of the evolution of cloud computing and the emergence of a utility based form of computing.
Most of us have heard about the benefits of cloud computing such as rapid provisioning, usage based pricing, multitenancy (leading to economies of scale), greater scalability, instant updates, and a reduced need to hire scarce skills.
We are also familiar with the challenges associated with cloud computing, such as quality of service issues, provision of support and data sovereignty. Overcoming these challenges is critical, if cloud computing is to evolve further.
At present, data is subject to the regulations of the country in which it sits. As yet, there are no international regulations that protect data from misuse. Such regulations are necessary to overcome concerns about data sovereignty. The WikiLeaks saga has damaged confidence in overseas cloud providers and Amazon has done a lot to cause this, by bowing down to pressure from politicians. Plenty of people may not like the actions of WikiLeaks but its actions have not been proved to be illegal. This precedent suggests that if US politicians do not like what a business is doing or are corrupt (this is possible), they can interfere with cloud-based businesses. Therefore, it is reasonable to assume that politicians in other jurisdictions, like their US counterparts, may choose to interfere with a business, foreign or domestic, because they do not like its activities. This is a very compelling argument for keeping data close to the organisation.
Cloud services that are provided from international locations are often unable to offer the latency and speed that is required for certain activities. Cloud services that are provided in-country or even in the same city can offer higher performance levels. This is another argument for keeping data nearby.
Cloud services such as those offered from US-based datacentres, offer great value for money. But, this service typically does not offer any local support. Although cloud computing reduces the need for support dramatically, some local support will be necessary for some organisations. A lack of available support will also act as a hindrance to the adoption of some Amazon-style cloud computing services.
Companies are emerging that seek to address key challenges associated with cloud computing and to provide offerings that are more specifically targeted. Ninefold offers IaaS that is comparable with Amazon’s offerings, except that it addresses many of the challenges associated with using Amazon. Issues with data sovereignty are immediately overcome as its datacentres are located in Australia and its offerings are targeted at Australia-based customers. Issues with quality of service, in particular latency and speed, are addressed by the relative proximity of Ninefold’s datacentres to customer premises. Finally, support issues are addressed by the provision of local support.
Ninefold can be seen as part of the evolution of cloud computing as we move to a utility model of computing. Instead of offering standard services across the globe, it has specialised in serving one geography, Australia. Continued specialisation can be expected as customers demand cloud services that meet increasingly specific requirements. What form will this specialisation take at a local level?
Most of us have heard about the benefits of cloud computing such as rapid provisioning, usage based pricing, multitenancy (leading to economies of scale), greater scalability, instant updates, and a reduced need to hire scarce skills.
We are also familiar with the challenges associated with cloud computing, such as quality of service issues, provision of support and data sovereignty. Overcoming these challenges is critical, if cloud computing is to evolve further.
At present, data is subject to the regulations of the country in which it sits. As yet, there are no international regulations that protect data from misuse. Such regulations are necessary to overcome concerns about data sovereignty. The WikiLeaks saga has damaged confidence in overseas cloud providers and Amazon has done a lot to cause this, by bowing down to pressure from politicians. Plenty of people may not like the actions of WikiLeaks but its actions have not been proved to be illegal. This precedent suggests that if US politicians do not like what a business is doing or are corrupt (this is possible), they can interfere with cloud-based businesses. Therefore, it is reasonable to assume that politicians in other jurisdictions, like their US counterparts, may choose to interfere with a business, foreign or domestic, because they do not like its activities. This is a very compelling argument for keeping data close to the organisation.
Cloud services that are provided from international locations are often unable to offer the latency and speed that is required for certain activities. Cloud services that are provided in-country or even in the same city can offer higher performance levels. This is another argument for keeping data nearby.
Cloud services such as those offered from US-based datacentres, offer great value for money. But, this service typically does not offer any local support. Although cloud computing reduces the need for support dramatically, some local support will be necessary for some organisations. A lack of available support will also act as a hindrance to the adoption of some Amazon-style cloud computing services.
Companies are emerging that seek to address key challenges associated with cloud computing and to provide offerings that are more specifically targeted. Ninefold offers IaaS that is comparable with Amazon’s offerings, except that it addresses many of the challenges associated with using Amazon. Issues with data sovereignty are immediately overcome as its datacentres are located in Australia and its offerings are targeted at Australia-based customers. Issues with quality of service, in particular latency and speed, are addressed by the relative proximity of Ninefold’s datacentres to customer premises. Finally, support issues are addressed by the provision of local support.
Ninefold can be seen as part of the evolution of cloud computing as we move to a utility model of computing. Instead of offering standard services across the globe, it has specialised in serving one geography, Australia. Continued specialisation can be expected as customers demand cloud services that meet increasingly specific requirements. What form will this specialisation take at a local level?
Wednesday, January 5, 2011
16 Key Attributes of Cloud Computing
The term, cloud computing is being used to describe a continually growing list of computing products and services. Indeed, many people stretch the term to include on-premise IT implementations, sometimes known as ‘private clouds’. Unfortunately, definition stretching can render the term cloud computing meaningless. In effect, terminology pollution of this kind helps legacy IT suppliers to slow the adoption of IT as a service and the migration to a utility model of computing. They prefer to continue gouging huge amounts of capital from their customers and to describe their current offerings as ‘private clouds’.
A great way to simplify the concept of cloud computing is to list the key attributes of cloud computing using non technical terminology that non IT specialists can understand. Buyers of IT products and services can use such a list to determine where their computing resources sit on the cloud computing spectrum. They can also use it as a roadmap to determine what needs to be undertaken or negotiated in order to reap the benefits of cloud computing.
16 key attributes of cloud computing are as follows:
1. Cloud computing offerings are services, not products
2. Cloud computing allows customers to increase and decrease the number of users that have access to services, exponentially
3. Cloud computing allows customers to provision new services to users instantly or within hours
4. Cloud computing turns computing resources into operational expenses rather than capital expenditure
5. Cloud computing enables organizations to pay for computing resources based on consumption of the resources in question
6. Cloud computing allows multiple, diverse customers to share computing resources
7. Cloud computing service enhancements, such as updates, are automatic
8. Cloud computing resources can be accessed using any Internet-enabled device, from any location
9. Cloud computing integrates security into services
10. Cloud computing eliminates the need for support contracts
11. Cloud computing costs less than on-premise alternatives
12 Cloud computing allows the purchase of services without human interaction
13. Cloud computing integrates automatic backup into services
14. Cloud computing services are delivered from remote locations
15. Cloud computing services are delivered by a third party
16. Cloud computing services are delivered via the Internet or via an IP VPN
A spectrum of attributes like the one above allows us to illustrate where a service fits with respect to cloud computing. For example, services provided by public cloud vendors such as Salesforce.com, Netsuite and SuccessFactors satisfy most of these attributes. Hence, it seems reasonable to refer to their offerings as cloud computing services.
‘Private clouds’ typically satisfy comparatively few of these attributes. Hence, it seems unreasonable to refer to such offerings as cloud computing services.
If organizations seek the agility and flexibility offered by cloud computing, they must consider purchasing services that offer as many of these attributes as possible.
A great way to simplify the concept of cloud computing is to list the key attributes of cloud computing using non technical terminology that non IT specialists can understand. Buyers of IT products and services can use such a list to determine where their computing resources sit on the cloud computing spectrum. They can also use it as a roadmap to determine what needs to be undertaken or negotiated in order to reap the benefits of cloud computing.
16 key attributes of cloud computing are as follows:
1. Cloud computing offerings are services, not products
2. Cloud computing allows customers to increase and decrease the number of users that have access to services, exponentially
3. Cloud computing allows customers to provision new services to users instantly or within hours
4. Cloud computing turns computing resources into operational expenses rather than capital expenditure
5. Cloud computing enables organizations to pay for computing resources based on consumption of the resources in question
6. Cloud computing allows multiple, diverse customers to share computing resources
7. Cloud computing service enhancements, such as updates, are automatic
8. Cloud computing resources can be accessed using any Internet-enabled device, from any location
9. Cloud computing integrates security into services
10. Cloud computing eliminates the need for support contracts
11. Cloud computing costs less than on-premise alternatives
12 Cloud computing allows the purchase of services without human interaction
13. Cloud computing integrates automatic backup into services
14. Cloud computing services are delivered from remote locations
15. Cloud computing services are delivered by a third party
16. Cloud computing services are delivered via the Internet or via an IP VPN
A spectrum of attributes like the one above allows us to illustrate where a service fits with respect to cloud computing. For example, services provided by public cloud vendors such as Salesforce.com, Netsuite and SuccessFactors satisfy most of these attributes. Hence, it seems reasonable to refer to their offerings as cloud computing services.
‘Private clouds’ typically satisfy comparatively few of these attributes. Hence, it seems unreasonable to refer to such offerings as cloud computing services.
If organizations seek the agility and flexibility offered by cloud computing, they must consider purchasing services that offer as many of these attributes as possible.
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