|By David H Deans||
|January 31, 2014 02:00 PM EST||
2014 will likely be a year of dual business goals for forward-thinking senior executives. Responding to ongoing needs for business efficiency and growth, but also adapting to exploit a fundamentally different digital commerce paradigm.
Commercial digitalization, based upon the latest and most effective business technology advances has already begun, but most chief information officers (CIOs) do not feel prepared for this next era, according to a global survey of IT leaders by Gartner, Inc.
Their latest market study showed that many CIOs feel overwhelmed by the prospect of building digital leadership while renovating their core of IT infrastructure. The Gartner survey found that 51 percent of CIOs are concerned that the digital transformation is coming faster than they can cope -- and 42 percent don't feel that they have the employee talent to face this future.
"2014 must be a year of significant change if CIOs are to help their businesses and public sector agencies remain relevant in an increasingly digital world," said Dave Aron, vice president and Gartner Fellow.
The worldwide survey was conducted in the fourth quarter of 2013 and included 2,339 CIOs, representing more than $300 billion in CIO IT budgets in 77 countries.
Gartner says that during the first era of enterprise IT, the focus was on how IT could help do new and seemingly magical things -- automating routine operations to create massive improvements in speed and scale, and providing business leaders with management information they never had before.
Preparing for the Next Era of Business Technology
The last decade has represented the second era of enterprise IT, an era of industrialization of enterprise IT, making it more reliable, predictable, open and transparent. However, while this second era has been necessary and powerful, tight budgets and no appetite for risk left little room for meaningful innovation.
Entering the third era of enterprise IT technological and societal trends -- such as the evolving Internet of Everything phenomenon -- is transforming what savvy business leaders do to make there operations faster, cheaper and inherently more scalable.
In 2014, CIOs must face the challenge of bridging the second and third eras. They have to build digital leadership and bi-modal capability, while renovating the core of IT infrastructure and capability for the digital future.
Most businesses have established IT leadership, strategy and governance but have a vacuum in digital leadership. To exploit new digital opportunities and ensure that the core of IT services is ready, there must be clear digital leadership, strategy and governance, and all business executives must become digitally savvy.
The survey showed CIOs expect their IT budgets to remain essentially flat -- increasing 0.2 percent on average -- in 2014. CIOs report that a quarter of IT spending will happen outside the IT budget in 2014 -- and that is the spending they know about. Meaning, the reality may be significantly higher.
This re-assignment of budget is a direct result of the new digital opportunities that are more entwined with customer and colleague experiences, and may reflect concerns that the traditional IT organization is not prepared for more digital opportunities.
CIOs Must Prepare for Significant Change in 2014:
- A quarter have already made significant investments in public cloud, and the majority expect more than half of their company's business to be running over public cloud by 2020.
- Seventy percent of CIOs plan to change their technology and sourcing relationships over the next two to three years, and many are seeking to partner with agile small companies and start-ups.
- Forty-five percent of companies have implemented agile methodologies for part of their development portfolio, although most need to go further to create separate, multidisciplinary teams, with lightweight governance, new digital skillsets and alternative sourcing models.
"If this transition succeeds and CIOs and their businesses 'tame the digital dragon,' massive new value for businesses can be created, and with it, a renewed role and greater credibility for the CIO and the IT organization," concluded Aron. "However, if the dragon isn't tamed, businesses might fail and the relevance of the IT organization will almost certainly disappear."
"For over 25 years we have been working with a lot of enterprise customers and we have seen how companies create applications. And now that we have moved to cloud computing, mobile, social and the Internet of Things, we see that the market needs a new way of creating applications," stated Jesse Shiah, CEO, President and Co-Founder of AgilePoint Inc., in this SYS-CON.tv interview at 15th Cloud Expo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
Jan. 27, 2015 09:30 AM EST Reads: 3,391
In her General Session at 15th Cloud Expo, Anne Plese, Senior Consultant, Cloud Product Marketing, at Verizon Enterprise, focused on finding the right mix of renting vs. buying Oracle capacity to scale to meet business demands, and offer validated Oracle database TCO models for Oracle development and testing environments. Anne Plese is a marketing and technology enthusiast/realist with over 19+ years in high tech. At Verizon Enterprise, she focuses on driving growth for the Verizon Cloud platfo...
Jan. 27, 2015 09:30 AM EST Reads: 4,578
You use an agile process; your goal is to make your organization more agile. But what about your data infrastructure? The truth is, today's databases are anything but agile - they are effectively static repositories that are cumbersome to work with, difficult to change, and cannot keep pace with application demands. Performance suffers as a result, and it takes far longer than it should to deliver new features and capabilities needed to make your organization competitive. As your application an...
Jan. 27, 2015 09:30 AM EST Reads: 3,292
“We are strong believers in the DevOps movement and our staff has been doing DevOps for large enterprise environments for a number of years. The solution that we build is intended to allow DevOps teams to do security at the speed of DevOps," explained Justin Lundy, Founder & CTO of Evident.io, in this SYS-CON.tv interview at DevOps Summit, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
Jan. 27, 2015 09:30 AM EST Reads: 3,112
The Internet of Things will greatly expand the opportunities for data collection and new business models driven off of that data. In her session at @ThingsExpo, Esmeralda Swartz, CMO of MetraTech, discussed how for this to be effective you not only need to have infrastructure and operational models capable of utilizing this new phenomenon, but increasingly service providers will need to convince a skeptical public to participate. Get ready to show them the money!
Jan. 27, 2015 09:30 AM EST Reads: 4,372
It's time to face reality: "Americans are from Mars, Europeans are from Venus," and in today's increasingly connected world, understanding "inter-planetary" alignments and deviations is mission-critical for cloud. In her session at 15th Cloud Expo, Evelyn de Souza, Data Privacy and Compliance Strategy Leader at Cisco Systems, discussed cultural expectations of privacy based on new research across these elements
Jan. 27, 2015 09:15 AM EST Reads: 3,408
Bring the world's best IaaS to the world's best PaaS. In their session at 15th Cloud Expo, Animesh Singh, a Senior Cloud Architect and Strategist for IBM Cloud Labs, and Jason Anderson, a Cloud Architect for IBM Cloud Labs, shared their experiences running Cloud Foundry on OpenStack. They focused on how Cloud Foundry and OpenStack complement each other, how they technically integrate using cloud provider interface (CPI), how we could automate an OpenStack setup for Cloud Foundry deployments, an...
Jan. 27, 2015 09:00 AM EST Reads: 4,044
"Application monitoring and intelligence can smooth the path in a DevOps environment. In a DevOps environment you see constant change. If you are trying to monitor things in a constantly changing environment, you're going to spend a lot of your job fixing your monitoring," explained Todd Rader, Solutions Architect at AppDynamics, in this SYS-CON.tv interview at DevOps Summit, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
Jan. 27, 2015 09:00 AM EST Reads: 4,445
"Desktop as a Service is emerging as a very big trend. One of the big influencers of this – for Esri – is that we have a large user base that uses virtualization and they are looking at Desktop as a Service right now," explained John Meza, Product Engineer at Esri, in this SYS-CON.tv interview at Cloud Expo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
Jan. 27, 2015 09:00 AM EST Reads: 3,238
What do a firewall and a fortress have in common? They are no longer strong enough to protect the valuables housed inside. Like the walls of an old fortress, the cracks in the firewall are allowing the bad guys to slip in - unannounced and unnoticed. By the time these thieves get in, the damage is already done and the network is already compromised. Intellectual property is easily slipped out the back door leaving no trace of forced entry. If we want to reign in on these cybercriminals, it's hig...
Jan. 27, 2015 09:00 AM EST Reads: 3,446
Scott Jenson leads a project called The Physical Web within the Chrome team at Google. Project members are working to take the scalability and openness of the web and use it to talk to the exponentially exploding range of smart devices. Nearly every company today working on the IoT comes up with the same basic solution: use my server and you'll be fine. But if we really believe there will be trillions of these devices, that just can't scale. We need a system that is open a scalable and by using ...
Jan. 27, 2015 09:00 AM EST Reads: 4,503
The consumption economy is here and so are cloud applications and solutions that offer more than subscription and flat fee models and at the same time are available on a pure consumption model, which not only reduces IT spend but also lowers infrastructure costs, and offers ease of use and availability. In their session at 15th Cloud Expo, Ermanno Bonifazi, CEO & Founder of Solgenia, and Ian Khan, Global Strategic Positioning & Brand Manager at Solgenia, discussed this shifting dynamic with an ...
Jan. 27, 2015 09:00 AM EST Reads: 3,369
More and more file-based and machine generated data is being created every day causing exponential data and content growth, and creating a management nightmare for IT managers. What data centers really need to cope with this growth is a purpose-built tiered archive appliance that enables users to establish a single storage target for all of their applications - an appliance that will intelligently place and move data to and between storage tiers based on user-defined policies. In her session a...
Jan. 27, 2015 09:00 AM EST Reads: 3,977
Recurring revenue models are great for driving new business in every market sector, but they are complex and need to be effectively managed to maximize profits. How you handle the range of options for pricing, co-terming and proration will ultimately determine the fate of your bottom line. In his session at 15th Cloud Expo, Brendan O'Brien, Co-founder at Aria Systems, session examined: How time impacts recurring revenue How to effectively handle customer plan changes The range of pricing a...
Jan. 27, 2015 09:00 AM EST Reads: 4,039
SAP is delivering break-through innovation combined with fantastic user experience powered by the market-leading in-memory technology, SAP HANA. In his General Session at 15th Cloud Expo, Thorsten Leiduck, VP ISVs & Digital Commerce, SAP, discussed how SAP and partners provide cloud and hybrid cloud solutions as well as real-time Big Data offerings that help companies of all sizes and industries run better. SAP launched an application challenge to award the most innovative SAP HANA and SAP HANA...
Jan. 27, 2015 09:00 AM EST Reads: 3,804
Mobile, the cloud and data have upended traditional ways of doing business. Agile, continuous delivery and DevOps have stepped in to hasten product development, but one crucial process still hasn't caught up. Continuous content delivery is the missing limb of the success ecosystem. Currently workers spend countless, non-value add hours working in independent silos, hunting for versions, manually pushing documents between platforms, all while trying to manage the continuous update and flow of mul...
Jan. 27, 2015 09:00 AM EST Reads: 3,595
Over the last few years the healthcare ecosystem has revolved around innovations in Electronic Health Record (HER) based systems. This evolution has helped us achieve much desired interoperability. Now the focus is shifting to other equally important aspects - scalability and performance. While applying cloud computing environments to the EHR systems, a special consideration needs to be given to the cloud enablement of Veterans Health Information Systems and Technology Architecture (VistA), i.e....
Jan. 27, 2015 09:00 AM EST Reads: 4,014
"At Harbinger we do products as well as services. Our services are with helping companies move their products to the cloud operating systems. Some of the challenges we have seen as far as cloud adoption goes are in the cloud security space," noted Shrikant Pattathil, Executive Vice President at Harbinger Systems, in this SYS-CON.tv interview at Cloud Expo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
Jan. 27, 2015 09:00 AM EST Reads: 3,242
After a couple of false starts, cloud-based desktop solutions are picking up steam, driven by trends such as BYOD and pervasive high-speed connectivity. In his session at 15th Cloud Expo, Seth Bostock, CEO of IndependenceIT, cut through the hype and the acronyms, and discussed the emergence of full-featured cloud workspaces that do for the desktop what cloud infrastructure did for the server. He also discussed VDI vs DaaS, implementation strategies and evaluation criteria.
Jan. 27, 2015 09:00 AM EST Reads: 3,908
Things are being built upon cloud foundations to transform organizations. This CEO Power Panel at 15th Cloud Expo, moderated by Roger Strukhoff, Cloud Expo and @ThingsExpo conference chair, addressed the big issues involving these technologies and, more important, the results they will achieve. Rodney Rogers, chairman and CEO of Virtustream; Brendan O'Brien, co-founder of Aria Systems, Bart Copeland, president and CEO of ActiveState Software; Jim Cowie, chief scientist at Dyn; Dave Wagstaff, VP ...
Jan. 27, 2015 09:00 AM EST Reads: 4,009