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IT in New Decade:
        Time of Change
Datacenter Today and Tomorrow

           Ondrej Felix
            BIF 2010
             Praha
Overview


Where we are
Where we go
How to be successful
As I see IT
Long-term predictions


Larry Ellison and his network computer in
1995
Bill Gates and his tablet PC in 2002
Craig Barret and his WIMAX in 2004
Marc Benioff and his End of Software in
1996
Carly Fiorina and her commodity HP in 2003
Real mid-term winner


               Steve Jobs
Network computer in 1995, Tablet PC in
2002 => IPAD in 2010
WIMAX in 2004 => 3G, 4G mobile networks
used by IPHONE since 2007
End of Software <> AppsStore, iTunes
Commodity HP => iPAD, iPHONE, iPOD,
Mac
Burton Group’s Three Executive
   Trends for 2010 Planning

 The Externalization of IT
     −      Externalization plays an important role in IT economics,
         prompting value assessments of what capabilities should be
         treated as commodity. Enterprises are refocusing their
         efforts on core business capabilities while examining
         alternatives for the non-core activities. The benefits of IT
         externalization include the potential of reduced cost,
         renewed focus on the core, and strategic partnership with
         the business. A growing number of options for externalizing
         IT, including the cloud, holds the promise of streamlined and
         efficient operations, demand elasticity, and more effective
         business-driven priorities.
Burton Group’s Three Executive
   Trends for 2010 Planning

 The Consumerization of IT
    −   The average person has become a sophisticated
        technology user and this is reflected in the desire for
        individual choice of devices and applications for maximum
        personal productivity. The growing trend of allowing
        information workers to choose their own equipment
        imposes significant burdens on the enterprise; it’s hard to
        secure equipment you don’t own, and it’s hard to manage
        and support a very diverse hardware and software base. IT
        innovation, once emanating from internal IT out, is now
        predominantly driven inward by employees and customers.
Burton Group’s Three Executive
   Trends for 2010 Planning

 The Democratization of IT
 Democratization is evident in the rise and importance of social
 networks within and outside the modern enterprise which changes the
 “ways of work” and challenge traditional organization structures and
 schema. The challenge to the organization is to facilitate the
 coexistence of hierarchical and democratic styles of communication
 and choice-making. Democratization is being forced by generation Y’s
 familiarity with technology, and new social networking solutions within
 the enterprise.
Technology Is Like the Air


Kids look at computers the same way that boomers look at TV. We
don't marvel at the technology or wonder how television transfers video
and audio through thin air - we simply watch the screen. TV is a fact of
life. So it is with kids and computers.


                                       Don Tapscott
                                       Growing up digital
7 growing priorities for 2010
            CIO Insight
1. Using social networks to sell/market products
2. Using alternative productivity aps
3. Telework/virtual office
4. Offshoring
5. Developing/utilizing private clouds
6. Using consumer tech in enterprises
7. M&A/Industry consolidation
Cloud computing

        Cloud is everything we currently do – Larry Ellison
Software as a Service (SaaS)
   Complete software application provided over web
   (Salesforce.com, Zoho, Google)
Infrastructure as a Service (IaaS)
   IT resources over Internet – power, storage,memory
   (Amazon, GoGrid)
Platform as a Service (PaaS)
   Web based development tools and runtime environment
   (future Google)
From current datacenter to future

                      Current Datacenter
hidden isolated secured carrier of complete corporate back-office

                       Future datacenter
                center of gravity for private cloud


Success of transition depends on ability of public cloud providers
  to be reliable, secure and trustworthy for midsize corporations
IT careers – 13 most important
                roles
             CIO Insight
13. Human resources in IT
12. IT research
11. Asset management
10. Portfolio management
8 - 9. Business continuity and IT financial management
7. Client relationship management
6. Service management
5. Security
4. Project management
2 – 3. Architecture and IT strategy planning
1. Business analysis
Three mega trends by OF

InformationTechnology is delivered as
embedded technology in consumer products
(feature rich - overkill, huge numbers, reflecting de facto
standards,short lifecycle, one size fits as many as possible)

InformationCommunicationTechnology
services are delivered as commodity utility
(as simple as possible, fulfilling de facto and legal standards, same for
all, hooks for loyalty)

CIO's between consumerized IT and
commoditized ICT, in hands of consultants
Two real problem's
1. How to limit responsibility for
     damages and liability

Product liability
    −   negligence, strict liability, breach of
        warranty, and various consumer protection
Online service liability ???
Responsibility for business failure and
consequent damages ???
Two real problem's
2. Information security and privacy

  How to audit or verify external supplier's
  security policies
  How to enforce necessary levels of security?
How to be successful CIO
   (OF subjective opinion)

Govern IT by architecture
   −    Define explicit and agreed operational
       business model glued together by mid
       term operational strategy (IT in companies
       is about operation)
   −   Define and maintain IT functional model
       reflecting operational business model and
       mid term operational strategy
How to be successful CIO
   (OF subjective opinion)

Govern IT by architecture
   −    Define which functions are allowed to be
       covered by commodity ICT services
   −   Define which functions are not allowed to
       be covered by commodity ICT services
       and must be internal
   −   Define which internal functions could be
       implemented using consumer IT products
   −   Define solution architecture for rest of
       functional map
How to be successful CIO
   (OF subjective opinion)

Govern IT by architecture
   −   Define company IT architecture
   −   Implement company IT architecture
   −   Maintain and modify company IT
       architecture reflecting company IT strategy
Hire good team of architects and business
consultants to keep whole concept together
Questions ?

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01 ondrej felix [režim kompatibility]

  • 1. IT in New Decade: Time of Change Datacenter Today and Tomorrow Ondrej Felix BIF 2010 Praha
  • 2. Overview Where we are Where we go How to be successful As I see IT
  • 3. Long-term predictions Larry Ellison and his network computer in 1995 Bill Gates and his tablet PC in 2002 Craig Barret and his WIMAX in 2004 Marc Benioff and his End of Software in 1996 Carly Fiorina and her commodity HP in 2003
  • 4. Real mid-term winner Steve Jobs Network computer in 1995, Tablet PC in 2002 => IPAD in 2010 WIMAX in 2004 => 3G, 4G mobile networks used by IPHONE since 2007 End of Software <> AppsStore, iTunes Commodity HP => iPAD, iPHONE, iPOD, Mac
  • 5. Burton Group’s Three Executive Trends for 2010 Planning The Externalization of IT − Externalization plays an important role in IT economics, prompting value assessments of what capabilities should be treated as commodity. Enterprises are refocusing their efforts on core business capabilities while examining alternatives for the non-core activities. The benefits of IT externalization include the potential of reduced cost, renewed focus on the core, and strategic partnership with the business. A growing number of options for externalizing IT, including the cloud, holds the promise of streamlined and efficient operations, demand elasticity, and more effective business-driven priorities.
  • 6. Burton Group’s Three Executive Trends for 2010 Planning The Consumerization of IT − The average person has become a sophisticated technology user and this is reflected in the desire for individual choice of devices and applications for maximum personal productivity. The growing trend of allowing information workers to choose their own equipment imposes significant burdens on the enterprise; it’s hard to secure equipment you don’t own, and it’s hard to manage and support a very diverse hardware and software base. IT innovation, once emanating from internal IT out, is now predominantly driven inward by employees and customers.
  • 7. Burton Group’s Three Executive Trends for 2010 Planning The Democratization of IT Democratization is evident in the rise and importance of social networks within and outside the modern enterprise which changes the “ways of work” and challenge traditional organization structures and schema. The challenge to the organization is to facilitate the coexistence of hierarchical and democratic styles of communication and choice-making. Democratization is being forced by generation Y’s familiarity with technology, and new social networking solutions within the enterprise.
  • 8. Technology Is Like the Air Kids look at computers the same way that boomers look at TV. We don't marvel at the technology or wonder how television transfers video and audio through thin air - we simply watch the screen. TV is a fact of life. So it is with kids and computers. Don Tapscott Growing up digital
  • 9. 7 growing priorities for 2010 CIO Insight 1. Using social networks to sell/market products 2. Using alternative productivity aps 3. Telework/virtual office 4. Offshoring 5. Developing/utilizing private clouds 6. Using consumer tech in enterprises 7. M&A/Industry consolidation
  • 10. Cloud computing Cloud is everything we currently do – Larry Ellison Software as a Service (SaaS) Complete software application provided over web (Salesforce.com, Zoho, Google) Infrastructure as a Service (IaaS) IT resources over Internet – power, storage,memory (Amazon, GoGrid) Platform as a Service (PaaS) Web based development tools and runtime environment (future Google)
  • 11. From current datacenter to future Current Datacenter hidden isolated secured carrier of complete corporate back-office Future datacenter center of gravity for private cloud Success of transition depends on ability of public cloud providers to be reliable, secure and trustworthy for midsize corporations
  • 12. IT careers – 13 most important roles CIO Insight 13. Human resources in IT 12. IT research 11. Asset management 10. Portfolio management 8 - 9. Business continuity and IT financial management 7. Client relationship management 6. Service management 5. Security 4. Project management 2 – 3. Architecture and IT strategy planning 1. Business analysis
  • 13. Three mega trends by OF InformationTechnology is delivered as embedded technology in consumer products (feature rich - overkill, huge numbers, reflecting de facto standards,short lifecycle, one size fits as many as possible) InformationCommunicationTechnology services are delivered as commodity utility (as simple as possible, fulfilling de facto and legal standards, same for all, hooks for loyalty) CIO's between consumerized IT and commoditized ICT, in hands of consultants
  • 14. Two real problem's 1. How to limit responsibility for damages and liability Product liability − negligence, strict liability, breach of warranty, and various consumer protection Online service liability ??? Responsibility for business failure and consequent damages ???
  • 15. Two real problem's 2. Information security and privacy How to audit or verify external supplier's security policies How to enforce necessary levels of security?
  • 16. How to be successful CIO (OF subjective opinion) Govern IT by architecture − Define explicit and agreed operational business model glued together by mid term operational strategy (IT in companies is about operation) − Define and maintain IT functional model reflecting operational business model and mid term operational strategy
  • 17. How to be successful CIO (OF subjective opinion) Govern IT by architecture − Define which functions are allowed to be covered by commodity ICT services − Define which functions are not allowed to be covered by commodity ICT services and must be internal − Define which internal functions could be implemented using consumer IT products − Define solution architecture for rest of functional map
  • 18. How to be successful CIO (OF subjective opinion) Govern IT by architecture − Define company IT architecture − Implement company IT architecture − Maintain and modify company IT architecture reflecting company IT strategy Hire good team of architects and business consultants to keep whole concept together