The Cloud and �The New Organization �

Antonio  Montoya    

October  30th,  2012  

The  rapidly  falling  cost  of  communica>on  is  enabling  a  change  in  business  organiza>ons  as  profound  as  the  shi@  to  democracy  in  governments.    

Thomas  W.  Malone  MIT    Sloan  School  of  Business  

“

Evolution vs Revolution �

Incremental Improvements �Preserve Underlying Framework �

Evolution �

Recorded Music Framework �

Record  Labels   Turntables  

Dramatic Improvement/Change �Redefines Underlying Framework �

Revolution �

Digital Music Framework �

Online  Stores  

Home  Recording  Studios   Ring  Tones  

WiFi  to  HiFi  

Service  Models  

Deployment  Models  

Key  Characteris>cs  

Evolutionary Cloud Framework �

§ SaaS § PaaS

§ Private § Community § Public § Hybrid

§ On-demand self-service § Broad network access § Resource pooling § Rapid elasticity § Measured Service

§ IaaS § DaaS

* National Institute of Standards & Technology

Cloud Technology Evolution �

1960s Mainframe Computing

1970s Mini

Computing

1980s Client-Server

Computing

2000s Cloud

Computing

Team

Revolutionary Cloud Framework �

Enterprise

Personal

Market

Marketed & Sold to �End Users (Personal Use) �

Designed to Grow Virally in Small Businesses & Teams �

Robust to support the entire enterprise �

Built to �Scale Globally �

Personal Cloud �Gartner: The personal cloud will replace the PC as the center of our digital lives by 2014

Benefits Challenges

Personal  Cloud  

•  Global Reach, Global Community •  Efficiency and Productivity •  Whenever, Wherever, Device

Agnostic •  Contextualization •  Same or better technologies

than the enterprise •  Freemium pricing

•  Technology Treadmill •  Technology Anxiety •  Chronic Multitasking

•  Information overload •  Sudden End of Life •  Data Portability

•  Invasion of Privacy

Team Cloud �“Today, three people in three different cities can form a company and access a global marketplace.” –Nicholas Negroponte, 1995

Benefits Challenges

Team  Cloud  

•  Big Enterprise IT infrastructure w/o upfront investment •  Quick, inexpensive

implementation •  Global Reach, Global Community •  Whenever, Wherever, Device

Agnostic •  Freemium pricing

– Pay only what you need

•  Big IT problems without IT staff •  Multiple Devices and Apps •  Supporting Late Adopters

•  Change Management •  Level of Service •  Security Breaches

•  Portability •  C–C, C–G Integration

Enterprise Cloud �“The more a CIO says ‘no,’ the less secure his organization becomes.” –Vivek Kundra

Benefits Challenges

Enterprise  Cloud  

•  Unleashes Innovation & New Business Models •  Focus on Business Services not

Information Technology •  CAPEX to OPEX: Optimizes IT

efficiency •  Agile Implementation •  Global Reach, Global Community •  Whenever, Wherever, Device

Agnostic

•  Reinventing IT Staff Skills, Culture & Alignment •  Overcoming traditional

(Gatekeeping) IT Mindset •  Change Management •  User Support •  GRC: Governance, Risk and

Compliance •  Level of Service •  Enterprise Data Architecture

Market Cloud �“New technologies are making it feasible –on a scale never before possible– to make more and more business decisions in more decentralized ways, through loose hierarchies, democracies, and markets.” –Thomas Malone

Stills from ITO World Ltd. visualisation of edits into OpenStreetMap after the 2010 earthquake in Haiti

Benefits Challenges

Market/Profession  Cloud  

•  Enables a global marketplace of labor, ideas and capital •  Enables new business models –

frameworks

•  Creates significant business opportunity

•  Way ahead of government regulation •  Threatens long-established

business frameworks

•  Creates significant business risks and threats

Is Dr. Malone Right? �

A Tutor’s Story �

Tutoring Circa 1985

Tutoring Circa 2005

Evolutionary or Revolutionary? �It’s up to you! �