pushing the technology envelope to deliver business innovation an idc perspective
TRANSCRIPT
© 2009 IDCCopyright 2011 IDC. Reproduction is forbidden unless authorized. All rights reserved.
Pushing the Technology Envelope to Deliver Business InnovationAn IDC Perspective
Presented by:
Rasika Versleijen, Senior Market Analyst, [email protected]
© 2009 IDC© IDC 2011
Agenda
The Cloud Journey: CIO Led Innovation
Driving Business Innovation
The Data Explosion
© 2009 IDC
What is your view on Cloud
Computing?
1. It’s mostly hype
2. It’s somewhat important and
has some relevance to my
business
3. It may fundamentally change
the way IT is delivered and
could seriously change the
use of IT in my business
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© 2009 IDC
WHERE ARE WE TODAY?
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© 2009 IDC© IDC 20111980 1990 2000 2010
Where have we come from?
Internally dev.
ESP (C&I)
Outsource
Everything-as-a-Service
Standardize
Automate
Integrate
Transform
Legacy
ERP, SCM, CRM, Industry-specific
SOA, BPM, Web Services
Business Analytics
Mainframe
Client/ServerWeb
Private CloudInfrastructure
Business
Process
Delivery
Model
2020
Application/
Middleware/
Database Layer
© 2009 IDC
What Are Cloud Services?
Key Attributes
Shared, standard service
Solution-packaged
Self-service Elastic scaling
Use-based pricing
Internal & Internet-based interfaces
Published service APIs
© 2009 IDC
The Categories of Cloud Services
Cloud Infrastructure(Infrastructure as a Service)
Cloud Platforms(Platforms as a Service)
Cloud Applications(Apps as a Service)
Servers
Storage
Networks
Clients
Application Development Software
Application Server Middleware
Data Access, Analysis, and Delivery
Information & Data Management
Integration & Process Automation Middleware
Other Application Dev and Deployment
Quality & Life-Cycle Tools
Enterprise Portals
System and Network Management Software
Security Software
Storage Software
System Software
Collaborative Applications
Content Applications
Enterprise Resource Management Applications
Supply Chain Management Applications
Operations and Manufacturing Applications
Engineering Applications
Customer Relationship Management Applications
© 2009 IDC© IDC 2011
Private
• Designed for, and
access restricted to, a
single enterprise (or
extended enterprise)
• An internal shared
resource, not a
commercial offering
• IT Org is the “vendor” of
the shared/std service to
its users
Public
• Designed for a
market, not a single
enterprise
• Open to a largely
unrestricted
universe of
potential users
Hybrid
• Enterprise’s cloud services
portfolio includes both
private and public cloud
services
• Some specific services are
delivered through a
combination of public and
private models (e.g., private
cloud “bursting to” a public
cloud service)
Cloud Deployment Models Emerging
© 2009 IDC© IDC 2011
IT Service delivery Model
SaaS, PaaS, IaaS
Consumer to
Consumer
Business to
Consumer
Business to
Business
The Evolving Cloud Business Model
Enterprise CloudSecurity& Compliance are
Tablestakes
Blended CloudProvider is Trusted; Quality of
Service is Important
Consumer CloudLack of Privacy a Reality
Test Bed
for future
enterprise
adoption
The
future…SLA guarantees
Accuracy
Revenue per customer
Successful
Today!
© 2009 IDC© IDC 2011
Long Term Benefits of the CloudNZ 2010
Flexibility Lower costsAccelerate
Business
Innovation
IDC Multi-Client Cloud Study 2010 – New Zealand Public N=30 Private N=70 [Pr9, Pu12]
© 2009 IDC© IDC 2011
Cloud Benefits and Challenges
-80.0% -60.0% -40.0% -20.0% 0.0% 20.0% 40.0% 60.0% 80.0%
Flexibility
Ability to lower cost through standardisation
Accelerate business innovation
Increase utilisation of existing IT assets
Access to expertise
Convert some of our IT Capex to Opex
Track usage and pay-as-you-go
IT governance issues
Reduced customisation opportunities
Inconsistency of service performance
Regulatory or compliance issues
Higher cost of in-house ownership of cloud
Loss of control over data
Reliability/Availability
Security
Reliability
Availability,
Security,
Total Cost
Time to deploy
Pay for Use
Collaboration
IDC Multi-Client Cloud Study 2010 – New Zealand Public N=30 Private N=70]
© 2009 IDC© IDC 2011
Cloud Security & ComplianceTable stakes for Enterprise Clouds
53%
50%
45%
42%
40%
36%
32%
Private Cloud is more secure than Public Cloud
BU Individual Buying a Security Threat
Multitenant too risky for sensitive information
Ceding Patch and Vulnerability Management
I understand Cloud Security/Compliance Issues
Cloud Security Better than Internal IT Security
Cloud Benefits Outweigh Security Risks
Q. Please indicate your level of agreement with each statement about cloud computing and security
% sample rating 4 & 5
IDC’s Cloud Security Survey, January 2011, n=250
© 2009 IDC© IDC 2011 13
Flexibility Lower Cost Business innovation
- Yes
- OPEX model – pay for
use, supports scalability
- Collaboration with
partners
- Yes – in the short term
- Unsure about the
longer term
- Not Sure…
-Use cases starting to
emerge
-Connecting the long
tail ongoing
Has the Promise of Cloud Delivered?
© 2009 IDC
DRIVING BUSINESS INNOVATION
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© 2009 IDC
Today's Consumer
Informed
Decision
Tailored
Product
Bargain
Buys
Immediate
Fulfillment
© 2009 IDC© IDC 2011
Consum
er
Requir
em
ents
Value Chain Requirements
Retailer/Frontline
Business
Manufacturing/
AgencyValue Chain– Tier 1 Value Chain Tier n
Informed
Decision
•product availability
•Price
management
•Product availability
•Price management
•Product data
•Product availability
•Price management
•Product data
•Product availability
•Price management
•Product data
Bargain Buys
•Promotion
management
•Promotion
management
•Cost
•Scalability
•Cost
•Scalability
•Cost
•Scalability
Tailored Product
•Final assembly
•Design for
postponement
•Design for
postponement
•Flexible
manufacturing
•Product Innovation
•Flexible
manufacturing
•Product Innovation
•Flexible
manufacturing
•Product Innovation
Immediate
fulfillment
•Demand
Forecasting
•Inventory
management
•Responsive supply
chain
•Inventory
management
•Process Innovation
•Responsive supply
chain
•Inventory
management
•Process Innovation
•Responsive supply
chain
•Inventory
management
•Process Innovation
Focus Across the Value Chain
© 2009 IDC© IDC 2011
Value Chain Challenges
Sustainability & Compliance
Risk Management
Value Chain
Visibility
•Capture all the data through the value
chain
•Introduce the feedback loop
•Support supply and demand planning
risk assessment, optimization and
contingency planning
•Containing the cost of visibility
•Trustworthiness of the data
•Acting upon visibility usefully
© 2009 IDC© IDC 2011
Cloud and the Future Consumer
Shift tools and resources proximate to
demand – as demand shifts the need to
set up operations quickly will become a
key requirement.
Providing information for the consumer will
require the integration of the long tail into
the value chain, connecting to all levels
within the value chain in a cost effective
manner
Immediate fulfillment of a tailored service will
require a flexible value chain,
interconnected, allowing the fast flow of
demand and supply information up and
down the chain, coupled with demand
forecasts to match demand and support
demand shaping
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Cloud Infrastructure(Infrastructure as a Service)
Cloud Platforms(Platforms as a Service)
Cloud Applications(Apps as a Service)
© 2009 IDC
DATA EXPLOSION
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© 2009 IDC
What is driving “Big Data”
Consumption
High Volume
TrafficeCommerce
Social
NetworksMobility
(devices
& apps)
Personal
Services Demand
Analytics
© 2009 IDC© IDC 2011
Fueling the Digital Universe
Cameras, 32%
Data, 7%
Music, 3% Voice Capture, 2%
Media, 57%
0% 20% 40% 60% 80% 100%
2009 0.8 ZB
21Source: IDC Digital Universe Study, sponsored by EMC, May 2010
1000 Gigabytes = 1 Terabyte · 1000 Terabytes = 1 Petabyte · 1000 Petabytes = 1 Exabyte - · 1000 Exabytes = 1 Zettabyte
© 2009 IDC© IDC 2011
Analytics
Growth of analytics:
Optimization, Understanding, Information, Analysis,
Simulation
Informed decision making, visual decision making, lowering
the levels of decision making within the enterprise..
Increased use of non-structured data
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© 2009 IDC© IDC 2011
Cloud and the Data Explosion
C2C has set the trend, as we see
greater use of social networks in
business the need to support the
consumption of data will drive
increased need for storage – especially
with the shift to more media
The growth of analytics across the
enterprise as each function needs to get
different information out of the data will
increase the need for processing,
management and storage
The need to ensure the security of the
data both in access and also in disaster
is key.
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Cloud Infrastructure(Infrastructure as a Service)
Cloud Platforms(Platforms as a Service)
Cloud Applications(Apps as a Service)
© 2009 IDC© IDC 2011
Tenants of Transformative IT
Facilities
Infrastructure
Information
Access to right information at the
Right time is Fundamental to a
Businesses success
The right Infrastructure enables
an efficient, elastic and flexible
Framework that enables growth
The right facility drives IT Scale,
and efficiencies
© 2009 IDC© IDC 2011
Transformative IT : Unhinging the Rules
Facilities
Infrastructure
Information
Facilities
InfrastructureInformation
TodayTomorrow
© 2009 IDC
THE CLOUD JOURNEY – CIO LED INNOVATION
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© 2009 IDC
To whom does the CIO in
your company report?
1. To the CFO
2. To the COO
3. To someone else other
than the CEO
4. To the CEO
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© 2009 IDC© IDC 2011
The Changing CIO Gene Pool
CEO
CFO
Dir
COO
Dir
CMO
Dir
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CIO
© 2009 IDC© IDC 2011
CIO Innovations
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Use of third party providers
for management of IT environment
Implementation of on-demand or utility-type deployments
Increased standardization of applications and services
Implementation of business-
outcome based pricing
Consolidate the number of IT
suppliers
© 2009 IDC© IDC 2011 30
Hypervisor
Mobility
Metering & Chargeback
Converged Infrastructure is the Foundation for Cloud
Hypervisor Hypervisor
Mobility
Hypervisor
Mobility
Metering & Chargeback
Self Provision
Cloud
45% Sites18% Market
90% of Virt. Sites
20% of Virt. Sites
10% of Virt. Sites
CloudInternal vs. External
ProvisionConsolidate Virtualize Automate
© 2009 IDC© IDC 2011
ClO Innovation and the Cloud
The ability to put more and more
control in the hands of the users
Faster role out of systems “as a
service”
Support pay per use across the
enterprise – people only pay for what
they use, applications, processing
Innovative payment models are
starting to emerge
The role of the CIO will change…
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Cloud Infrastructure(Infrastructure as a Service)
Cloud Platforms(Platforms as a Service)
Cloud Applications(Apps as a Service)
© 2009 IDC© IDC 2011
Key Takeaways:
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The service elements of cloud will allow CIO
innovation
Cost reduction is driving interest in the cloud, but
business innovation is where the real benefits will
come
Data is exploding(esp. Analytics) - Organizations
need to ensure they are prepared
© 2009 IDC© IDC 2011
For Further Information:
Rasika Versleijen-Pradhan
Senior Analyst, IDC New Zealand
www.idc.com
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