It’s no surprise that digital disruption is everywhere. Empowered customers are disrupting every industry, and infrastructure and operations (I&O) leaders must adapt to this new reality. We believe that technology management is in the middle of a new evolutionary cycle that will transform I&O from its traditional role as infrastructure provider to a new role as a broker and manager of technology services.
It’s should also be no surprise, then, that cloud and mobile disruption is putting a strain on traditional infrastructure team organizational structures. Consolidated and hybrid cloud infrastructure needs a new organization, and you need to prepare your team for the new business technology era. To do so, you need to encourage your team to develop service management, automation, collaboration, and marketing skills, to name a few. We’re seeing a spike in inquiries about new organization models to speed the path to cloud.
Two years ago, I published one of my most popular reports, Understand The True Cost Of Cloud Services. In it I laid out a model to help compare current infrastructure costs against the costs of running equivalent workloads at a traditional hosting provider and in the AWS public cloud. This type of comparison is often the first step in a company’s journey to cloud. Before you start moving workloads to any cloud provider, are you sure the cost savings are really there? The answer isn’t always obvious, and depends on measuring a set of critical metrics, including:
· Your application load patterns
· Your current operations team staff costs
· Your virtualization consolidation ratio
· Your storage and network hardware, license and administrative costs
· Your facilities (space, power, cooling) costs
The problem with cloud cost modeling is that it can be hard to get accurate estimates for current costs – find the right people, ask them for cost details, work through the numbers, verify accuracy, project future costs, etc. – and things that take too long just don’t get done. In our model, we used our Relative Cost of Operations methodology to simplify analysis and focus on what changes when you shift to cloud infrastructure. I also faulted some of the public cloud providers for low-balling cloud costs or hiding assumptions in their own on-line cost comparison tools.
I doubt most savvy cloud buyers (or VMware admins, for that matter) will think this new plug-in for vCenter is a cloud management tool. It’s not. Like other vCenter plug-ins, it makes it easier for an admin using vCenter to get something done without leaving the wildly popular virtualization management portal (like the P2V or V2V tools of yore). In this case, that something includes VMware-to-EC2 conversions and some basic housekeeping tasks: create an AWS virtual private cloud, launch an instance, etc. Image creation, migration, and basic configuration does not a complete cloud management solution make – there’s a lot more to do to create and manage a hybrid cloud implementation and enable workload portability. But this will make it easier to run conversions to AWS and that irks VMware a bit, since it offers its own public cloud option in vCloud Hybrid Service (vCHS).
Rather than draw attention to how limited the AWS Management Portal is, VMware should use its existence to drive home three important points about the company’s overall cloud positioning:
1) allowing competitors to add plug-ins to manage competing public cloud instances shows that VMware’s not scared to compete for your cloud VMs;
2) vCenter is obviously very sticky and widely used, and AWS wants to get in front of those eyeballs – VMware still has critical admin mindshare; and
It’s NBA finals time, and for the fourth year in a row, my Miami Heat are playing for the championship. While the big three (James, Wade, and Bosh) are extremely talented, it takes more than just the talent of these superstars to deliver the third championship in a row. To cement the Heat’s legacy and put the team in the position to claim another title as the best ever, the Heat has surrounded the big three with the right roles, staffed with the right role players. These role players on the Miami Heat know what’s expected of them and recognize the vital part they play in the Heat’s success. It’s Ray Allen hitting a 3 when he’s called upon or Birdman blocking a critical shot to keep Miami’s lead. Each member of the Miami Heat understands that while the big-three superstars may ultimately make the difference, it’s really the way the entire system works together that propels the team to victory time and time again.
And while this may surprise you, for your marketing team, it’s no different. Without a doubt, you have your superstars that go the extra mile to rev up your marketing engine. But do you have the right role players to help your marketing operating system work well as a unit? Do they know what’s expected of them? Do you know what role players you need and what to look for when you hire them?
My colleague Ted Schadler explained here how Apple's iOS 8 focuses on developers building new mobile moments.
Once again, Apple increases the value of its ecosystem and will create more stickiness and loyalty by enabling developers and marketers to build new app experiences. The first building block to tap into the new opportunities that wearables and connected objects are opening up is to create a service ecosystem. That’s the reason we haven't heard any product announcements yesterday.
From a marketing standpoint, Apple introduced some new App Store features for developers, like app previews and app bundles. Marketers will be able to let users buy multiple games or apps at once and for a discounted price. App listings can now include feature video demonstrations to showcase the value of your app. The new “Explore” tab - including the trending topics and the vertical scrolling - will also facilitate app discovery.
However, in comparison with the great iOS differentiated innovations announced to create new app experiences (e.g., HealthKit, HomeKit, Swift, TouchID, and open APIs), Apple mostly implemented incremental changes to its App Store marketing. Most marketers sill complain about Apple’s black box and the lack of transparency about Apple App Store’s ranking algorithm and ratings and review systems.
I recently had a great discussion with TK Kurien, the CEO of Wipro Technologies, at the company’s campus in Bangalore, India. During the discussion, TK shared his thoughts on Wipro’s future. He sees the following as critical to success:
Addressing segment leadership challenges. There are limits to labor arbitrage, automation overriding cost advantages, and the increasing complexity of client requirements. Wipro knows that it has to move beyond showcasing technology capabilities to focus on addressing the challenges that CMOs, CHROs, and other business leaders face today. The first step in this direction is to ensure that the company’s messaging gets aligned to the different ports of call (CMO, CFO, CHRO, etc.) and how this helps to address the challenges for customers.
Developing a culture of performance. TK aims to develop a culture of performance based on improved employee efficiency and productivity. Within a few days of our discussion, the company announced that it is planning to undertake its biggest-ever restructuring exercise to become learner and make the organization look more like an hourglass than a pyramid. The company will take 12 to 18 months to complete this mammoth restructuring effort.
Master data management is a hot topic. And, this is at times surprising to me because the noise of big data is deafening. Big data is certainly sexier. MDM is like mom nagging to clean up the room - necessary, but a total buzz kill.
Here is some of the anecdotal evidence that is raising my eyebrows:
Our Forrester Wave for MDM was at the top of most read reports during Q1.
MDM inquiries from clients keep me very busy.
Vendors see MDM as a key growth area in their portfolios.
Consultancies are consistently pointing to client gaps in data governance and data architectures that point toward a master data problem.
Yesterday in San Francisco, Apple showed once again that it cares about developers. And well it should. With Flurry reporting consumers spending 86% of their smartphone time in apps, not Web sites, the 1.14 million apps in the US App Store are just a drop in the bucket. We expect to see that number swell to 10 million apps by 2020. But that will only happen if Apple and the rest of the mobile industry focus relentlessly on developers.
Apple's goal is winning all the mobile moments. [See our new book, The Mobile Mind Shift, for much more on this important way of looking at the mobile revolution.] Developers are key to reaching that goal. Here are the things that struck me from Apple's announcements yesterday:
More tools for developers. A new development language, "4,000" new APIs, a new testbed capability, and access to Touch ID, basic Siri language processing, and look-ahead typing are just the most obvious new capabilities that Apple is offering developers. To build innovative new apps, developers need all the tools and support they can get. These announcements reflect Apple's paced but steady rollout of things developers care about.
More access to more sensors, hence context. Though Apple downplayed the healthcare opportunities a bit, it knows that developers need access to all the sensors on the devices in order to build interesting mobile moments in health, fitness, and location-based applications. These applications need to take advantage of all the context of that moment.
As Marshall McLuhan once said, “Most of our assumptions have outlived their uselessness.” This has never been truer than now, and we have customer data to thank for it.
While data has always played a role in experience design, the digitization of customer experiences — both online and in physical environments — has greatly expanded the depth and breadth of customer data available. As a result, the way CX pros use data is undergoing a significant change. Rather than be passive recipients of data reports, CX pros are becoming active data miners and explorers.
The effect of this exploration is that CX pros, empowered with data that they now have direct access to, are challenging long-held orthodoxy, assumptions, and conventions. Consider the following:
CNN tunes its coverage to consumers' tastes . . . to the displeasure of critics. While critics may heap scorn on CNN for its extended coverage of Malaysia Airline Flight 370, the numbers tell a different story. After crunching the data, CNN concluded that viewers were not tiring of MH370 coverage. In fact, the analysis indicated that viewers wanted more of it. This led CNN to extend the coverage well beyond what CNN producers (and other network producers) intuitively assign to such an event. The call paid off as consumers continued to tune in, helping CNN boost its viewership.
This morning when I woke up, one of the first things I did was pick up my iPhone. It’s increasingly part of my morning ritual – whether its checking the weather app for the day’s forecast or using the Starbucks app to pay for my morning coffee on the way to work. And I am not the only one. Forrester forecasts that European online retail sales will increasingly come from sales completed on mobile devices like smartphones and tablets.