Cloudy forecasts and other trends in information technology

Cloudy Forecasts and Other Trends in Information Technology

Alan McSweeney

March 15, 2010 2

Objectives

• To discuss the trend towards cloud computing in the context of current and past trends and forecasts in Information Technology

March 15, 2010 3

Agenda

• Cloud Computing

• IT Trends

• Cloud Adoption

March 15, 2010 4

Tired of Presentations from Vendors With Pictures of Clouds?

March 15, 2010 5

Cloud Computing as a Trend in Information Technology

• What are the sources of information technology trends

− Surveys by trade bodies of members

− Surveys by journals and publications

− Statements by analysts

− Statements by vendors

• Which are real trends and which represent wishful/fanciful thinking or biased?

• Which trends are relevant to your organisation, based on operating area, geography, size, state of adoption and use of IT?

• What happened to previous trends?

March 15, 2010 6

Cloud Definition

• The use of a collection of services, applications, information and associated infrastructure consisting of pools of computing, networking and storage resources

• Components can be rapidly provisioned, implemented and decommissioned and scaled up or down providing for an on-demand utility-like model of allocation and consumption

March 15, 2010 7

What Use Are Trends?

• To the business - what is likely to be able to generate revenue through additional sales, access to new markets or channels or save money

• To the IT function within an organisation – what new technologies can help in managing IT like a business and delivering value

• To suppliers of IT services - what customers will buy, where I should focus my sales effort, how I should restructure my products/services to be relevant, how I should invest in R&D

March 15, 2010 8

Business and IT Concerns Regarding Information Technology

Business Processes Delivered by IT Systems

Cost

Continuity and Availability

Training

Competition

Regulation

Governance and Standards

Business Partners

Efficiency

Business Alignment, Management and Control

Cost, Budgeting, Planning

Reliability, Continuity and Availability

Personnel

Training

Technology Changes

Vendors and Suppliers

What Partners and Competitors Are Doing

Technical Platforms of New Applications

BusinessInformation

Technology

Internal

Focus

External

Focus

March 15, 2010 9

Relevance of Trends in Information Technology to Business and IT

Will it Save Money?

Will it Generate Money?

Will Adoption of Trends Assist With Competition, Regulation and

Governance?

Will it Reduce IT Management Costs?

Will it Improve IT Service Management?

Will it Enable IT to be More Responsive?

Will Existing Systems Be Rendered Obsolete and Unsupported?

BusinessInformation

Technology

Internal

Focus

External

Focus

March 15, 2010 10

How Much of Trend Adoption Is Driven By?

Everybody Else Is Doing It

I Want To Do It So It Appears On My Resume

I Like New Technology

Vendors Keep Talking About It

I Need One Good Idea To Stamp My Mark On The Organisation

It Will Solve All My Problems

BusinessInformation

Technology

Internal

Focus

External

Focus

March 15, 2010 11

Layered View of IT Infrastructure

Connection

Communication

Data Presentation, Data Security

Applications, Systems and Business Processes

Storage Media and Network Signals

Storage and Network Addressing

Network Transmission

Layer 4

Layer 5

Layer 6

Layer 7

Layer 1

Layer 2

Layer 3

Operations, Usage, Management, Control,

GovernanceLayer 8+

What the Business

is Concerned With

What IT is

Concerned With

March 15, 2010 12

Information Technology Concerns

• IT should concern itself with trends that

−Assist and improve its internal operations

− Improve the systems and service IT delivers to the business

March 15, 2010 13

Cloud Manifestations

IaaS - Infrastructure as a service

PaaS - Platform as a service

SaaS - Software as a service

STaaS - Storage as a service

BRaaS - Backup and recovery as a service

EaaS - Everything as a Service

Manifestations of Cloud Computing

Private Cloud - behind firewall serving applications in their company

Public Cloud – shared infrastructure, accessible to general customers with multiple tenants

Types of Cloud

A business model for delivering IT as a service, referred to as IT as a service (ITaaS)

Cloud Computing

March 15, 2010 14

Cloud Manifestations

• Is it all just a pain in the …aaS

March 15, 2010 15

What are the Issues Cloud Computing is Trying to Fix?

• Up to 85% of computing capacity is unused

• 54% growth in storage capacity every year

• 70% of IT budget on average is spent on maintaining current IT infrastructures rather than adding new capabilities

• How will cloud computing fix these issues?

March 15, 2010 16

Migration to Cloud

Storage

Servers

Applications

Network

Traditional

Application-

Based

Infrastructure

(Partially)

Virtualised

Infrastructure

Private

(Internal)

Cloud

Public

(Shared)

Cloud

Relatively Minor and

Incremental EvolutionsA Major Change

March 15, 2010 17

Migration to Cloud

• Virtualisation technology enables a shared and a type of service-oriented infrastructure

• Creates a pool of computing, storage and network resources that can be shared between applications

• Private cloud implementations are effectively more packaged versions of virtualisation technology created by vendors with additional management tools

March 15, 2010 18

Cloud Features and Potential Benefits

• Features

• Virtualised and standardised infrastructure

• Highly scalable (depending on the application

• Fault tolerant and highly reliable and available

• Fast application deployment

• Benefits

• Potential for simplified and more efficient IT and application management

• Deliver more applications to large number of users

• increased utilisation at reduced cost

• Faster reaction to business requirements

March 15, 2010 19

Analysis of Some Information Technology Trends

• AICPA – Survey of members from 2001 to 2009 (2010 not published) on initiatives in IT that are of concern to their members

• Gartner – well known analyst company

• Two very different views of information technology trends

March 15, 2010 20

Gartner – Key IT Trends 2008 - 2010

Social SoftwareGreen ITMobile Applications10

Real World WebBusiness IntelligenceVirtualisation for Availability9

Computing FabricUnified CommunicationsFlash Memory8

Web Platform and Web-Oriented Architectures

Social Software and Social Networking

Security – Activity Monitoring7

Mashup and Composite Applications

Specialised SystemsSocial Computing6

Virtualisation 2.0Enterprise MashupsReshaping the Data Centre5

Metadata ManagementWeb-Oriented ArchitecturesIT for Green4

Business Process ModellingServers - Beyond BladesClient Computing3

Unified CommunicationsCloud ComputingAdvanced Analytics2

Green ITVirtualisationCloud Computing1

200820092010

March 15, 2010 21

Gartner – Key IT Trends 2008 - 2010

• How relevant are these trends to you and your organisation?

March 15, 2010 22

AICPA Top 15 IT Initiatives 2001-2009

Autonomic ComputersDisplay Technology#Technology Competency and Effective Utilisation

Enterprise System Management

Information PortalsCustomer Relationship Management

15

3G WirelessSimple Object Access Protocol (SOAP)

Digital HomePatch and Network Management Tools

Web Deployed Applications

Web-deployed Applications

Business Intelligence14

Tablet PC3G WirelessFuel CellsStorage and Backup Technologies#

Improved Application and Data Integration

Training and Competency

Collaboration –Information Portals13

M-CommerceRadio Frequency Identification (RFID)

SearchOutsourcingBusiness Process Improvement, Workflow and Process Exception Alerts


Conforming to Assurance and Compliance Standards

12

ID/AuthenticationID/AuthenticationRFID (Radio Frequency Identification)

E-mail Filtering including Spam and Malware scanning

Training and Awareness

Customer Relationship Management (CRM)

Business Continuity Management and Disaster Recovery Planning

11

Application Service Provider

Messaging Applications (e-mail, faxing, voicemail, instant messaging)

PrivacyMessaging Applications

Learning and Training Competency

Spyware Detection and Removal

Document, Content and Knowledge Management

Document, Forms, Content and Knowledge Management

Electronic Data Retention Strategy10

Electronic Audit

Trail

Qualified IT personnelCustomer Relationship Management

Business Exchange Technology

Storage TechnologiesPaperless Digital Technologies

Electronic Archiving and Data Retention

Mobile and Remote Computing


9

Quality of ServiceWeb-Based and Web-Enabled Applications

Intrusion DetectionVirtual OfficeAuthentication Technologies

Application and Data Integration


Business IntelligenceImproved Application and Data Integration8

Qualified IT PersonnelRemote Connectivity Tools

Intrusion DetectionData MiningWireless TechnologiesWireless TechnologiesSecuring and Controlling Information Distribution


Identity and Access Management7

Disaster RecoveryCommunication Technologies Bandwidth

Wireless TechnologiesDisaster RecoveryCollaboration and Messaging Technologies

Digital Identity and Authentication Technologies

IT GovernanceIdentity and Access Management

Training and Competency6

Training and Technology competency

Disaster Recovery Planning and Business Continuity Management

Disaster RecoveryWireless TechnologiesDisaster RecoveryPrivacy ManagementDisaster Recovery Planning and Business Continuity Management

Business Process Improvement, Workflow and Process Exception Alerts

Mobile and Remote Computing5

PrivacyQuality of ServiceWeb ServicesDatabase and Application Integration

Spam TechnologyIT GovernancePrivacy ManagementPrivacy ManagementBusiness Process Improvement, Work Flow and Process Exception Alerts

4

Electronically-based Business and Financial Reporting

Information Security and Controls

Application Integration

Digital OptimisationData IntegrationDisaster And Business Continuity Planning

Conforming To Assurance And Compliance Standards

Business Continuity Management And Disaster Recovery Planning

Secure Data File Storage, Transmission And Exchange

3

E-BusinessTraining And Technology Competency

Business Information Management

Spam TechnologyElectronic Document Management

Assurance And Compliance Applications

Identity And Access Management

IT GovernancePrivacy Management2

Information Security And Controls

Business And Financial Reporting Applications

Information SecurityInformation SecurityInformation SecurityInformation SecurityInformation Security Management

Information Security Management

Information Security Management1

200120022003200420052006200720082009

March 15, 2010 23


Messaging ApplicationsLearning and Training Competency

Spyware Detection and Removal



Electronic Data Retention Strategy

10


Storage TechnologiesPaperless Digital Technologies




9

Virtual OfficeAuthentication Technologies



Business IntelligenceImproved Application and Data Integration

8

Data MiningWireless TechnologiesWireless TechnologiesSecuring and Controlling Information Distribution


Identity and Access Management

7

Disaster RecoveryCollaboration and Messaging Technologies


IT GovernanceIdentity and Access Management

Training and Competency

6

Wireless TechnologiesDisaster RecoveryPrivacy ManagementDisaster Recovery Planning and Business Continuity Management

Business Process Improvement, Workflow and Process Exception Alerts


5

Database and Application Integration

Spam TechnologyIT GovernancePrivacy ManagementPrivacy ManagementBusiness Process Improvement, Work Flow and Process Exception Alerts

4

Digital OptimisationData IntegrationDisaster And Business Continuity Planning

Conforming To Assurance And Compliance Standards


Secure Data File Storage, Transmission And Exchange

3

Spam TechnologyElectronic Document Management

Assurance And Compliance Applications



Information SecurityInformation SecurityInformation SecurityInformation Security Management



1

200420052006200720082009

March 15, 2010 24

Security, Privacy, Governance, Disaster Recovery

151413


12

ID/AuthenticationID/AuthenticationBusiness Continuity Management and Disaster Recovery Planning

11

Spyware Detection and Removal10

Electronic Audit Trail9

Intrusion DetectionAuthentication Technologies8

Intrusion DetectionSecuring and Controlling Information Distribution


Identity and Access Management7

Disaster RecoveryDisaster RecoveryDigital Identity and Authentication Technologies

IT GovernanceIdentity and Access Management6


Disaster RecoveryDisaster RecoveryPrivacy Management


5

PrivacyIT GovernancePrivacy Management

Privacy Management4

Information Security and Controls

Disaster And Business Continuity Planning


3



Information Security And Controls

Information Security







1

200120022003200420052006200720082009

March 15, 2010 25

Data, Information and Document Management/ Integration and Analysis and Related Initiatives

15

Business Intelligence14

Storage and Backup Technologies#


13


12

11



Electronic Data Retention Strategy10


Storage Technologies

Paperless Digital Technologies



9


Business Intelligence


8

Data Mining7


65

Database and Application Integration

4

Application Integration

Digital OptimisationData IntegrationSecure Data File Storage, Transmission And Exchange

3

Business Information Management

Electronic Document Management

21

200120022003200420052006200720082009

March 15, 2010 26


• Notice any differences?

• Business-oriented focus of IT initiatives

• Not concerned with IT plumbing and infrastructure (such as cloud) but on business concerns - running the business -and business-related IT concerns – potential impact of IT systems on the wider business

• Security, privacy, disaster recovery/business continuity and governance concerns dominate

• How will cloud computing assist in delivering these initiatives?

March 15, 2010 27

It’s Easy to Sneer at Past Predictions But …

• Gartner Highlights Key Predictions for IT Organisations in 2007 and Beyond− Vista will be the last major release of Microsoft Windows. The next generation

of operating environments will be more modular and will be updated incrementally. The era of monolithic deployments of software releases is nearing an end. Microsoft will be a visible player in this movement, and the result will be more-flexible updates to Windows and a new focus on quality overall.

− Blogging and community contributors will peak in the first half of 2007. Given the trend in the average life span of a blogger and the current growth rate of blogs, there are already more than 200 million ex-bloggers. Consequently, the peak number of bloggers will be around 100 million at some point in the first half of 2007.

− By 2010, 60% of the worldwide cellular population will be "trackable" via an emerging "follow-me Internet." Local regulations have arisen to protect users' privacy, but growing demands for national safety and civil protection are relaxing some of the initial privacy limitations. Marketing incentives will also push users to forgo privacy concerns, and many other scenarios will enable outsiders to track their users.

March 15, 2010 28

Private Cloud Computing

• Cloud computing is largely an IT-focussed initiative that potentially allows IT manage systems and applications infrastructure more effectively

March 15, 2010 29

Private Cloud

• Private cloud should consist of computing, network and storage hardware packaged with key management, administration and control facilities into self-contained systems and applications infrastructure

• Not a panacea

− There is no such thing as an IT system that does not require maintenance and management

• Cloud computing is a means to an end and not an end in itself

Management,

Administration and

Control

Backup

and

Recovery

Disaster

Recovery

Service Management

Information

Collection

and

Auditing

Provisioning

Resource Management

Application Lifecycle

Management

Data Management Security

March 15, 2010 30

Cloud Processes

• Possible suite of service management processes associated with conversion to cloud

March 15, 2010 31

Public Cloud

• Potential for fragmentation of applications and associated data as specific business applications are run on separate clouds from separate suppliers

Data

Integration

CRM

Mail and

Messaging

Document

Management

ERP

Application

Usage

March 15, 2010 32

Public Cloud

• Offers the potential for the business to bypass the IT function and buy the application from the cloud vendor, leading to a proliferation of disparate platforms and systems

• Public cloud needs to be viewed as a form of outsourcing and needs to be implemented with the same care

• Look to learn from the lessons from problems with outsourcing

• Vendors will target business rather than IT staff and IT will be landed with implementation, maintenance and support

March 15, 2010 33

Cloud and The Business

• IT needs to be aware and beware of:

− If IT cannot help us, who else can?

March 15, 2010 34

Disconnect Between What the Business Wants and What IT Delivers

What the Business Wants

15%

50%

35%

Maintain The Momentum Of The Business Through

Existing Business Systems

Contribute To Improving Business Results

Provide It Direction And Management That Is Aligned To

The Needs Of The Business

What the Business Gets

70%

25%

5%

Maintain The Momentum Of The Business Through

Existing Business Systems

Contribute To Improving Business Results

Provide It Direction And Management That Is Aligned To

The Needs Of The Business

March 15, 2010 35

IT Value Management is a Key Topic for IT

71%

62%

52%

45%

40%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

CEO/CFO Demanding Better Ways To

Demonstrate Value

Find It Difficult To Calculate ROI

Executives Skeptical Of ROI From IT

Metrics Do Not Adequately Capture Business

Value

Do Not Measure Business Value From IT

Investments

• Results of managing IT for business value− Budget flexibility coupled with strategic IT alignment leads to 50% greater IT

payoffs− Improving management practices alongside IT investment drives 20% higher IT

yields

March 15, 2010 36

Lessons Learned from Outsourcing Problems

• Smoothly Transferring Services And Resources− Common cause of failure is the ineffective management of the transfer of services and

resources to the service provider, leading to service delivery problems

− Successful service providers rigorously control the transfer of services and resources to ensure that the new service is able to adequately deliver the service and the service continuity is maintained.

• Maintaining Stakeholder Expectations− Common source of failure in sourcing engagements is a difference in expectations

between the client, the service provider, and the suppliers and partners

− Identifying and managing those expectations helps to ensure a common understanding of what is necessary for success

• Translating Implicit And Explicit Needs Into Defined Requirements With Agreed Upon Levels Of Quality− Frequent cause of failure in sourcing is that the service provider does not fully

understand the needs of the client

− Successful service providers rigorously gather and analyse the stated and unstated needs, then translate those needs into a set of documented requirements

− Successful service providers also recognise that needs change over time and establish provisions for gathering and analysing modifications to their services

March 15, 2010 37


• Reviewing Service Design And Deployment To Ensure An Adequate Coverage Of The Client’s Requirements− Failure in sourcing is caused by the service provider not fully addressing the

needs of the client− To ensure that the service delivery will meet the client’s needs successful

engagements include rigorous reviews of the service design and deployment activities by the clients and the service provider prior to service delivery

• Managing Client’s Security− Managing security and controlling critical data and assets are critical to

establishing trust− Security management includes protection of intellectual property,

confidentiality, and privacy concerns

• Monitoring And Controlling Activities To Consistently Meet The Service Delivery Commitments− Successful service providers rigorously monitor their service delivery activities

to ensure that the client’s commitments are being met− Actions are taken to resolve and prevent problems, thereby escalating issues

as appropriate to ensure that they are addressed in a timely basis

March 15, 2010 38


• Monitoring And Managing Client’s And End User’s Satisfaction− Success is not always defined in terms of meeting the agreed upon commitments,

because clients and end users may be unsatisfied even when commitments are being met

− Successful sourcing engagements monitor the satisfaction levels of the stakeholders to identify problems and take action

• Managing Employee Satisfaction, Motivation, And Retention− IT-enabled sourcing often involves challenges during transition, deployment, and

service delivery

− High employee turnover jeopardises the service provider’s ability to meet its client’s requirements and undermines their expected gains and performance levels

− Proactively monitoring and managing employee satisfaction and motivation can improve personnel retention and effectiveness

• Managing Technological Shifts And Maintaining The Availability, Reliability, Accessibility, And Security Of Technology− Technology is a key component of outsourcing

− Major challenges for the service provider include keeping pace with rapid changes in technology and effectively managing the technology infrastructure while changes are incorporated

March 15, 2010 39

Summary

• Trends come from many sources: analysts, industry bodies, vendors, surveys, publications and some of these may be tendentious

• A trend needs to be validated against your geography, operating area, organisation size and technology maturity

• Adopting a trend is not an automatic guarantee of benefits - there are rarely easy answers - you have to work at it

• There is still a need for architecture, analysis, design, validation to ensure that you will derive the greatest benefits from adopting new technologies/systems/applications

• Private cloud can offer flexibility

• Public cloud is a form of outsourcing and needs to be managed assuch

• There is no such thing as an IT system that does not require maintenance and management

Date post:	17-Oct-2014
Category:	Technology
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