ARC05-IS The Future of ITMatt DeaconMicrosoft UK

UK Architect Council

Agenda

• What’s happening in the world of software?• What are the Implications for the Enterprise?• What could the IT of the Future look like?

Galton’s Ox!

Exercising the “computer”

• Name/Alias/email (optional)• Organisation type:

• Enterprise (S,M,L)• System Integrator/Consultancy• Software Vendor• Outsourcer• Other

• Job Function:• Developer• Development Manager• Architect (Solution, Infrastructure, Enterprise)• Consultant• Other

What’s happening in the world of software?

Historically

70’s 80’s

90’s 00’s

Centralised, Managed Democratised, Adaptable

Drivers

Social• Web 2.0• Gaming• Creativity• Communication and

collaboration• Social Relationships (trust /

rating)• Power of numbers

Technology• REST/SOAP• AJAX• Dynamic Languages• RSS / ATOM / SSE• Blogs and Wiki’s• WS*

Business• Costs• Agility• Globalisation• Sourcing models• Risk• Markets / Long Tail• Innovation• Knowledge workforce

Technical• “Green” IT• Connectivity• Bandwidth• Hardware Costs• Multiple Devices• SaaS, SOA, Web 2.0

Catalysts

1. Externalising IT - Sourcing outside of the enterprise.

2. Application Decoupling - to increase agility3. Ad-hoc collaboration - across the business4. Consumer-grade IT - becoming good enough5. Unmanaged PC - from control to enablement6. Cost & Complexity - of “old ways”

Service transition

• “Software as a Service” is the catalyst with potential to

• Transform the way IT relates to and thinks about their role as providers of computing services

• Change ITs focus from deploying and supporting applications to managing the capabilities that those applications provide.

What is Software as a Service?

Definition: “Application delivery model where a software vendor develops a web-native application and hosts and operates it”1

• SaaS Key characteristics2:• network-based• Remote hosted/access• one-to-many (multi-tenant) model• No software• Subscription based pricing model

1 Foresters 2 Characteristics according to IDC

The continuum of hosted software services

Licensing Perpetual Subscription Transaction Ad-Funded

Location On-Premise Appliance Third-Party Hosted

Life Cycle Management

Corporate IT ASP Black Box

Reality: Is a future where local software and remote services seamlessly interact with one another. Software makes services

better and services make software better.

On-Premise SaaS

The Service’s Spectrum

Experience

Delivery

Federation

Composition

Monetization

Software + Services

Service

SOA

SaaS

Web 2.0

“Finished” Services “Attached” Services

“Building block” Services

Toolin

g a

nd

Gu

idan

ce

Windows Platform

Communities & Partnerships

“Heads”Deskto

pWeb Mobile Voice

DeliveryOn-

premiseHosted Ms Hosted

The S+S Framework

The S+S Platform LandscapeB

usi

ness

Client

Consu

mer

Server “Cloud”

XBOX Home Server

Media Center

Vista

Windows Server

XBOX Live

Mobile

“Live”

“Online”

Office Live

Services Platform

Applications and Solutions

Live Platform Services

Cloud Infrastructure Services

Global Foundation Services

The “Services Platform” Architecture

What are the Implications for the Enterprise?

The FIT ProjectAn investigation into 21st Century IT Sourcing

UK Architect Council

FIT Hypotheses

1. IT is moving to a multi-sourcing model2. Sourcing/Service providers will deliver services

at finer levels of specialisation3. Services will be provided both on and off-

premise4. Emerging architectures (SOA, SaaS & Web 2.0)

are enabling this transformation

Workshop 1Pro’s and Con’s of new sourcing strategies

What’s going to cause the chosen sourcing strategies to succeed?

1. Scalable 2. Cost reduction3. Economies of scope

• Works well in constrained problem domains4. Upgrade speed5. Benefits of competition6. Agility/Time to market7. Leverage vertical knowledge8. Efficient (when works!)9. Easy management of risk (SLAs etc)10.Other (Please specify)

What’s going to cause the chosen sourcing strategies to fail?

1. Organisations don’t know its own IT – Too many unknowns

2. Loss of control – vendor lock-in3. Risk – data ownership and security4. Ability of vendor to provide service5. Culture clashes across organisations6. Metrics (SLAs) different, hard to define/synchronise, not

covered

7. Management overhead8. Knowledge share/retention overhead/ Deskilling9. Lack of accountability10. Customer experience11. Stifles innovation12. Vendor goes out of business13. Other (please specify)

Workshop 2Making things tangible

Making things tangible

• Sourcing opportunities• What tangible opportunities exist for portfolio-based

sourcing to add value to the organisation?• Transition strategy

• What practical steps need to be taken, in what order and who realistically needs to be involved?

• Organisational structure/processes• What level of organisational maturity, and what pre-

requisites need to be in place before embarking?• Success criteria

• What criteria and metrics can be used to measure and judge success as things progress?

From 4 perspectives

IT Organisation

Business

Solution

Infrastructure

Setting the Context

• BPO is working so we don’t need to revisit that• Service provision is pretty well established in

every tier of IT• However it is not always shaped/delivered as a

service • Starting point is to consider what the

organisation doesn’t want to do for itself • Ultimately, about turning resources into a

service i.e. good old utility computing• Manage less/more focused

Challenges

• Self-knowledge – does organisation understand itself?

• Trusting outsourcers to manage your business• Resistance when deep knowledge held around

mainframe and legacy• Technical challenges on the part of the provider• Requirement for packaged SLAs vs. Custom

definitions• Can provider join into the change management

process• Avoiding “over sourcing”

Sourcing opportunities

• Needs well defined boundaries• Look for Business Capabilities• Differentiate between core & non-core• What is core is often the data not the process

Transition strategy

• Board level sponsorship• Need to understand commercials/contracts• Know where you’re headed

• Definition of an enterprise architecture• Action plan & roadmap• Strong Governance “with teeth”• Good Change management

• Need to define a criteria for sourcing• Well governed selection/due diligence process• Training and change management process• Ring fence legacy while migrating

Organisational structure

• What people need to be left in IT organisation?• Managers/co-ordinators/architects• Design authority for business design, technical design• Commercial management• Governance, change management

• Business lead/IT delivered• Buy in experience at first

• E.g. contract writing• Service desk should manage the problem end to

end

Success criteria

• Measurable outcomes• Operational excellence – cost savings, financial targets• Customer satisfaction• SLAs met

• Demonstrable sustainable agility• Compliance with regulations• Can I transition service to another vendor?• Have to be able to measure before, during and

after!

What could the IT of the Future look like?

IT Organisation of the Future

Business Stakeholder Group- Board-level responsibility/ownership- Capability Owners/sponsors- Customers

Commercial IP Department

- IP & Data Protection- SLA/KPIs- Penalties- Prime/ Sub

Contracts

Architecture & Design

- Portfolio Management - Standards & Governance- Roadmap- Design Authority

Service & Change Management

- Monitoring- Integration- Service Reporting- Scheduling- Service desk

Capability Delivery Team- Supplier/Service Selection- Due diligence

IT

Predictions for the future of IT

IT

1. IT will physically contract

2. ITs boundaries will expand

8. Architecture and Design will be the key technology related roles

4. Commercials and Service management will be major IT functions

5. But these can be sourced externally too.

3. Services provided to the organisation will be at finer levels of specialisationBUT external broker providers will hide much of this

6. Data is the key asset to be protected over process

7. But this too could be hosted externally

Thank you!

Matt Deaconmattd@microsoft.comblogs.technet.com/matt_deacon

© 2007 Microsoft Corporation. All rights reserved.This presentation is for informational purposes only.MICROSOFT MAKES NO WARRANTIES, EXPRESS OR IMPLIED, IN THIS SUMMARY.