Welcome!

@CloudExpo Authors: Liz McMillan, Elizabeth White, Yeshim Deniz, Matt Davis, AppNeta Blog

Related Topics: @CloudExpo, Agile Computing

@CloudExpo: Blog Post

Cloud and the Consumerization of IT

The cloud gives the consumerization of IT a whole new meaning

The cloud essentially "consumerizes" all of IT, not just relatively unimportant bits like procuring personal hard- and software. This requires a whole rethinking of corporate IT, as the idea of any master design becomes unattainable. How can IT as a species survive this trend as it may render the education of a whole generation of IT-ers irrelevant? On the brighter side - it really caters for the talents of today's teenagers: consumption as a lifestyle.

The idea of consumerization - users being allowed to freely procure their own personal hard- and software - has been around for a while. But few CIOs and even less heads of IT Operations have embraced it. Other than some token adoption, where users could choose between an iPhone or a Blackberry or where users got a personal budget to order from the company supplied catalog of pre-approved hardware, we see little adoption of the concept. The idea is that users can go to any consumer store or webshop and order any gadget they like, be it an iPad, laptops, printer or smart phone and configure these basically while still in the store to access their corporate mail, intranet and company applications. The idea originated when people wanted to use their 24 inch HD pc with 4 processors and mega memory - all essential to enjoy modern home entertainment and video and far superior to company standard issue equipment- to also do some work.

Cloud computing now makes such a consumer approach also possible at the departmental level. Department selecting and using non corporate approved or endorsed SaaS based CRM applications are the most commonly used example. But more interesting are the cases where departments - tired of waiting for their turn in the never reducing application backlog of corporate IT - turned to a system integrator to build a custom cloud application to meet their immediate needs. Several system integrators indicate that they have more and more projects where no longer IT, but the business department, is their prime customer. Contracts, SLA's and even integrations are negotiated directly between the SI and the business department, in some cases IT is not even involved or aware.

Now this is not a new phenomenon. We saw the exact same thing when PCs and departmental servers were introduced. Departments went off on their own and bought "solutions" from vendors popping up like the proverbial poppy seeds and often disappearing just a quickly after (remember Datapoint, Wang, Digital? And those were the ones that lasted). Guess who the business expected to clean up (integrate) the mess they left behind? Yes, the same IT departments they bypassed in the first place. One may even argue that: if IT had not been so busy cleaning up this mess over the last 15 years, they would have had a much better chance at building an integrated solution that actually did meet business's need. I am not of that opinion. With ERP we got this chance (and the associated billions) and still did not manage to keep up with the requirements, some things are just too vast, complex or simply change to fast to be captured in any master design.


So back to consumerisation. Although the trend has been far from whole heartily embraced by most corporate IT, it is continuing. In my direct environment I see several people who, instead of plugging their laptop into the corporate network at the office, take a 3G network stick to work. For around 20 Euros a month this gives them better performance accessing the applications they care about, not to mention it gives them access to applications most corporate IT department do not care for, like facebook, twitter, etc. Question is off course, can they do their work like that? Don't they need all day, full time access to the aforementioned fully vertically integrated ERP system? The answer is No. First of all, the vertically integrated type of enterprise that ERP was intended for, no longer exist. Most corporations have taken to outsourcing distribution to DHL or TNT, employee travel to the likes of American Express, HR payroll and expenses to XYZ, etc. etc. The list goes on and on.

All these external service providers support these services with web based systems that can be accessed from anywhere, inside and outside the company firewall. At the same time, the remaining processes that occur in the corporate ERP system are so integrated that they hardly require any manual intervention from employees. Consequently employees don't need to spend their time doing data entry or even data updates or analysis on that system. Any remaining required interaction is facilitated by directly interfacing with the customer via the web shop or via other web based systems. One could say that the world moved from vertically integrated manufacturing corporations to supply chain connected extended enterprises.

The question I will address in my next post is how does the cloud enabling consumerisation for enterprise applications play a role in this and what this means for IT moving forward.


On the supply side of IT, it means applications are best delivered as easily consumerable services to employees and others (partners, customers, suppliers). One large European multinational is already delivering all their new applications as internet (so not intranet) applications. Meaning any application can be accessed from anywhere by simply entering a URL and doing proper authentication. Choosing which applications to provide internally is based on whether there are outside parties willing and capable to provide these services or whether the company can gain a distinct advantage by providing the service themselves.

When speaking about consuming services, one should try and think broader than just IT services. The head of distribution may be looking for a parcel tracking system, but when asking the CEO or the COO they are more likely to think of a service in terms of something a DHL or TNT delivers. Services such as warehousing, distribution, but also complaint tracking, returns and repairs, or even accounting, marketing and reselling, all including the associate IT parts of those services. It is the idea of everything as a services, but on steroids (XaaSoS). Please note that even when an organization decides to provide one of these services internally, they can still source the underlying infrastructure and even applications "as a service" externally (this last scenario strangely enough is what many an IT person seems to think of exclusively when discussing cloud computing).

On the demand side of IT the issue is an altogether other one. How do we warrant continuity, efficiency and compliance, in such a consumption oriented IT World. If it is every man (or department) for themself, how do we prevent suboptimisation, In fact , how do we even know what is going on in the first place. How do we know what services are being consumed. This is the new challenge, and it is very similar to what companies faced when they decided to not manufacture everything themselves anymore, abandoning vertical integration where it made sense and taking a "supply chain" approach. Cloud computing is in many aspects a similar movement, and also here a supply chain approach looks like the way to go.

Such a supply chain approach means thoroughly understanding both demand and supply, matching the two and making sure that the goods - or in this case services - reach the right audience at the right time (on demand). IT has invested a fair amount of time and effort in better ways and methodologies to understand demand. On the supply side, IT till now assumed they were the supplier. In that role they used industry analysts to classify the components required, such as hardware and software. In this new world they need to start thoroughly understanding the full services that are available on the market. An interesting effort worth mentioning here is the SMI (Service Measurement Index) an approach to classify cloud services co-initiated by my employer, CA technologies and lead by Carnegie Mellon University.

After having gained an understanding of both demand and supply, the remaining task is "connecting the dots". This sounds trivial but is an activity that analysts estimate becoming a multi-billion industry within just a few years. It includes non-trivial tasks like identifying which users are allowed to do which tasks in this now open environment and optimizing the processes by picking resources that have the lowest utilization and thus cost. Because going forward scarcity will determine price especially in the new cloud world (which resembles Adam Smith's idea of a perfect open market a lot closer than any internal IT department ever did or will do).

Now off course all of the above won't happen overnight. Many a reader (and with a little luck the author) will have retired by the time today's vertically integrated systems - many of which are several decades old and based on solid, reliable mainframes - will have become services that are brokered in an open cloud market. A couple of high profile outages may even prolong this a generation or two more. But long term I see no other way. Other markets (electricity, electronics, publishing and even healthcare) have taken or are taking the same path. It is the era of consumption.

PS Short term, however, the thing we (IT) probably need most is a new diagraming technique. Why? From the above it will be clear that - in such a consumerised world - architecture diagrams are a thing of the past. And an IT person without a diagram is like a fish without water . We need something that allows us to evolve our IT fins into feet and our IT chews into lungs, so we can transition from water to land and not become extinct in the process. One essential aspect will be that unlike pictures of clouds and very much like real clouds, the diagrams will need to be able to change dynamically, much like pictures in a Harry Potter movie (it's magic). Who has a suggestion for such a technique ?

[Editorial note: This blog originally was published at ITSMportal.com on May 31st , 2010]

Read the original blog entry...

Comments (0)

Share your thoughts on this story.

Add your comment
You must be signed in to add a comment. Sign-in | Register

In accordance with our Comment Policy, we encourage comments that are on topic, relevant and to-the-point. We will remove comments that include profanity, personal attacks, racial slurs, threats of violence, or other inappropriate material that violates our Terms and Conditions, and will block users who make repeated violations. We ask all readers to expect diversity of opinion and to treat one another with dignity and respect.


@CloudExpo Stories
Apache Hadoop is emerging as a distributed platform for handling large and fast incoming streams of data. Predictive maintenance, supply chain optimization, and Internet-of-Things analysis are examples where Hadoop provides the scalable storage, processing, and analytics platform to gain meaningful insights from granular data that is typically only valuable from a large-scale, aggregate view. One architecture useful for capturing and analyzing streaming data is the Lambda Architecture, represent...
SYS-CON Events announced today that Ocean9will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Ocean9 provides cloud services for Backup, Disaster Recovery (DRaaS) and instant Innovation, and redefines enterprise infrastructure with its cloud native subscription offerings for mission critical SAP workloads.
With billions of sensors deployed worldwide, the amount of machine-generated data will soon exceed what our networks can handle. But consumers and businesses will expect seamless experiences and real-time responsiveness. What does this mean for IoT devices and the infrastructure that supports them? More of the data will need to be handled at - or closer to - the devices themselves.
In his session at DevOps Summit, Tapabrata Pal, Director of Enterprise Architecture at Capital One, will tell a story about how Capital One has embraced Agile and DevOps Security practices across the Enterprise – driven by Enterprise Architecture; bringing in Development, Operations and Information Security organizations together. Capital Ones DevOpsSec practice is based upon three "pillars" – Shift-Left, Automate Everything, Dashboard Everything. Within about three years, from 100% waterfall, C...
Adding public cloud resources to an existing application can be a daunting process. The tools that you currently use to manage the software and hardware outside the cloud aren’t always the best tools to efficiently grow into the cloud. All of the major configuration management tools have cloud orchestration plugins that can be leveraged, but there are also cloud-native tools that can dramatically improve the efficiency of managing your application lifecycle.
SYS-CON Events announced today that Juniper Networks (NYSE: JNPR), an industry leader in automated, scalable and secure networks, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Juniper Networks challenges the status quo with products, solutions and services that transform the economics of networking. The company co-innovates with customers and partners to deliver automated, scalable and secure network...
DevOps is often described as a combination of technology and culture. Without both, DevOps isn't complete. However, applying the culture to outdated technology is a recipe for disaster; as response times grow and connections between teams are delayed by technology, the culture will die. A Nutanix Enterprise Cloud has many benefits that provide the needed base for a true DevOps paradigm. In his Day 3 Keynote at 20th Cloud Expo, Chris Brown, a Solutions Marketing Manager at Nutanix, will explore t...
SYS-CON Events announced today that SoftLayer, an IBM Company, has been named “Gold Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York, New York. SoftLayer, an IBM Company, provides cloud infrastructure as a service from a growing number of data centers and network points of presence around the world. SoftLayer’s customers range from Web startups to global enterprises.
Some people worry that OpenStack is more flash then substance; however, for many customers this could not be farther from the truth. No other technology equalizes the playing field between vendors while giving your internal teams better access than ever to infrastructure when they need it. In his session at 20th Cloud Expo, Chris Brown, a Solutions Marketing Manager at Nutanix, will talk through some real-world OpenStack deployments and look into the ways this can benefit customers of all sizes....
Deep learning has been very successful in social sciences and specially areas where there is a lot of data. Trading is another field that can be viewed as social science with a lot of data. With the advent of Deep Learning and Big Data technologies for efficient computation, we are finally able to use the same methods in investment management as we would in face recognition or in making chat-bots. In his session at 20th Cloud Expo, Gaurav Chakravorty, co-founder and Head of Strategy Development ...
SYS-CON Events announced today that Linux Academy, the foremost online Linux and cloud training platform and community, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Linux Academy was founded on the belief that providing high-quality, in-depth training should be available at an affordable price. Industry leaders in quality training, provided services, and student certification passes, its goal is to c...
SYS-CON Events announced today that CA Technologies has been named “Platinum Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY, and the 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. CA Technologies helps customers succeed in a future where every business – from apparel to energy – is being rewritten by software. From ...
Interoute has announced the integration of its Global Cloud Infrastructure platform with Rancher Labs’ container management platform, Rancher. This approach enables enterprises to accelerate their digital transformation and infrastructure investments. Matthew Finnie, Interoute CTO commented “Enterprises developing and building apps in the cloud and those on a path to Digital Transformation need Digital ICT Infrastructure that allows them to build, test and deploy faster than ever before. The int...
What if you could build a web application that could support true web-scale traffic without having to ever provision or manage a single server? Sounds magical, and it is! In his session at 20th Cloud Expo, Chris Munns, Senior Developer Advocate for Serverless Applications at Amazon Web Services, will show how to build a serverless website that scales automatically using services like AWS Lambda, Amazon API Gateway, and Amazon S3. We will review several frameworks that can help you build serverle...
SYS-CON Events announced today that Loom Systems will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Founded in 2015, Loom Systems delivers an advanced AI solution to predict and prevent problems in the digital business. Loom stands alone in the industry as an AI analysis platform requiring no prior math knowledge from operators, leveraging the existing staff to succeed in the digital era. With offices in S...
SYS-CON Events announced today that Interoute, owner-operator of one of Europe's largest networks and a global cloud services platform, has been named “Bronze Sponsor” of SYS-CON's 20th Cloud Expo, which will take place on June 6-8, 2017 at the Javits Center in New York, New York. Interoute is the owner-operator of one of Europe's largest networks and a global cloud services platform which encompasses 12 data centers, 14 virtual data centers and 31 colocation centers, with connections to 195 add...
The Software Defined Data Center (SDDC), which enables organizations to seamlessly run in a hybrid cloud model (public + private cloud), is here to stay. IDC estimates that the software-defined networking market will be valued at $3.7 billion by 2016. Security is a key component and benefit of the SDDC, and offers an opportunity to build security 'from the ground up' and weave it into the environment from day one. In his session at 16th Cloud Expo, Reuven Harrison, CTO and Co-Founder of Tufin, ...
SYS-CON Events announced today that T-Mobile will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. As America's Un-carrier, T-Mobile US, Inc., is redefining the way consumers and businesses buy wireless services through leading product and service innovation. The Company's advanced nationwide 4G LTE network delivers outstanding wireless experiences to 67.4 million customers who are unwilling to compromise on ...
SYS-CON Events announced today that HTBase will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. HTBase (Gartner 2016 Cool Vendor) delivers a Composable IT infrastructure solution architected for agility and increased efficiency. It turns compute, storage, and fabric into fluid pools of resources that are easily composed and re-composed to meet each application’s needs. With HTBase, companies can quickly prov...
SYS-CON Events announced today that Infranics will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Since 2000, Infranics has developed SysMaster Suite, which is required for the stable and efficient management of ICT infrastructure. The ICT management solution developed and provided by Infranics continues to add intelligence to the ICT infrastructure through the IMC (Infra Management Cycle) based on mathemat...