IBM is making a big push into the SaaS space – boasting 100+ SaaS offerings and $1 billion plus in targeted investments. The good news for buyers is that the strategy is broad, flexible, and open. But, the downside is that the current landscape is fragmented and inconsistent across its different offerings; buyers do not today have a simple “cloud store” where they can go and download all of these different solutions with instant provisioning and pre-built integration. So, what should buyers expect?
The central theme of Mobile World Congress 2014 for me was clearly Connected Living. I’ve been attending Mobile World Congress for quite some time — 2006 was my first, the year that it moved to Barcelona from Cannes. And, this year felt different. No longer did the event feel dominated by handset manufacturers and equipment providers. Mobile World Congress is no longer a telecom event; it is clearly a mobile event. Mobility has penetrated every industry and every aspect of life, and that diversity is now clearly felt at the show. The large presence of car manufacturers and the buzz around Facebook indicate a definitive changing of the guard. That shift is ongoing. The proliferation of connected devices, the explosion of over-the-top services and the rise of the data economy will continue to shape the industry. But for me, this year I felt excitement around our new connected lives.
The government of Singapore has released its 2014 budget, which includes S$500 million (US$400 million) to help drive economic changes at small and medium-size businesses (SMBs). This spending will focus on:
It was recently revealed that the personal data of 20 million South Koreans (40% of the country’s population) was stolen by a contract worker at the Korea Credit Bureau, toppling consumer trust in Korean credit card companies. The theft was carried out by an insider over a period of time and begs the question: How could such an incident go unnoticed? We have found that breaches such as this are usually due to:
Poor system controls for privileged users. Privileged users often have more access than they really need to do their job. By definition, these users need broad access rights, but “broad” shouldn’t imply “unlimited.”
I've just published a Quick Take report that explains why the Nevada District Court’s recent decision on some of the issues in the four-year-old Oracle versus Rimini Street case has significant implications for sourcing professionals — and, indeed, the entire technology services industry — beyond its impact on the growing third-party support (3SP) market.
January 28th was the anniversary of the Space Shuttle Challenger disaster. The Rogers Commission detailed the official account of the disaster, laying bare all of the failures that lead to the loss of a shuttle and its crew. Officially known as The Report of the Presidential Commission on the Space Shuttle Challenger Accident - The Tragedy of Mission 51, the report is five volumes long and covers every possible angle starting with how NASA chose its vendor, to the psychological traps that plagued the decision making that lead to that fateful morning. There are many lessons to be learned in those five volumes and now, I am going to share the ones that made a great impact on my approach to risk management. The first is the lesson of overconfidence.
In the late 1970’s, NASA was assessing the likelihood and risk associated with the catastrophic loss of their new, reusable, orbiter. NASA commissioned a study where research showed that based on NASA’s prior launches there was the chance for a catastrophic failure approximately once every 24 launches. NASA, who was planning on using several shuttles with payloads to help pay for the program, decided that the number was too conservative. They then asked the United States Air Force (USAF) to re-perform the study. The USAF concluded that the likelihood was once every 52 launches.
In the end, NASA believed that because of the lessons they learned since the moon missions and the advances in technology, the true likelihood of an event was 1 in 100,000 launches. Think about that; it would be over 4100 years before there would be a catastrophic event. In the end, Challenger flew 10 missions before it’s catastrophic event and Colombia flew 28 missions before its catastrophic event, during reentry, after the loss of heat tiles during take off. During the life of a program that lasted 30 years, they lost two of five shuttles.
Cisco released its 1st quarter financial statement last week, and the numbers weren’t pretty. But this shouldn’t surprise too many, since the company warned the financial community that the revenue growth was going to be below their expectations. Unlike most, I see this as more of an inflection point in an undulation that swings back into a growth mode that comes with a change in strategy than a parabolic upside-down curve. While there are multiple transformations starting to occur in the networking domain, the Cisco Doomsday-ers seem to solely focus on software-defined networking and the creation of cloud infrastructures; they assume the data center of the future will look like Google’s data centers, even though no one truly, outside of Google, knows how it really runs or what the components are.
For argument’s sake, let’s assume every data center (private or XaaS platforms) will be a Google data center full of white-box components and Cisco’s high margin/feature switches will disappear. Does this mean Cisco becomes irrelevant or loses its position as the 800 lb. gorilla in the networking industry? Heck no. What clearly is being missed by most of the world is the incredible transformation starting to materialize outside the data center. And no, it isn’t the presence of mobile devices. That is today’s transformation that changed the consumer. The business will catch up. Tomorrow’s emergence of Internet of Things (IoT) will enable the business to meet its consumers’ desirers, and Cisco sees it already. Cisco could lose every port in the data centers and still be ahead if you look at where the amount of port growth and network revenue will come over the next 10 years.
One of my colleagues, Karen Rubenstrunk, is a principal advisor for our CIO Executive Program. I’ve known Karen for close to 20 years; she is a superior CIO coach. Recently, we found ourselves discussing the challenges CIOs have communicating business value. Here is Karen’s point of view:
If you’ve been around tech management as long as I have, at some point you’ve had the conversation that keeps on giving (like heartburn): how to better communicate the value of technology to the business.
Like me, I’m sure you’ve continued to wonder why we keep having this conversation over and over and over.
At a recent CIO Group Member Meeting, I found myself drawn into this conversation yet again — and being the lone dissenter in the room about what to do about it. While we kept talking about which new technologies or recent economic trends were making the task of communicating value so difficult, I’ve learned that the real problem isn’t technical, it’s personal: CIOs need to focus on perceptions and invest in the power of personal relationships with business peers.
Perceptions Drive Value
Technology’s perceived value to the institution is directly related to the maturity of the relationship between technology management and other functional managers and their teams, and that relationship is built on two fundamental perceptions: 1) the business’ perception of its dependence on technology, and 2) the business’ perception of technology management competence (see figure below).
Everybody at HIMSS, the annual health care IT conference (http://www.himssconference.org/) is telling the same story. Regulations and the need to reduce the burden of healthcare costs on the American economy is driving innovation to more efficient models of care delivery. The engine behind this drive is a changing model of incentives that reward quality and punish uncoordinated poor-quality care.
Mark Bertolini, CEO of Aetna (HIMSS keynote speaker)
Last week I hosted Media Corp’s CIO Leaders Summit in Sydney. In addition to my emcee duties, I also moderated two panels, both of which inspired significant discussion among the more than 50 senior IT decision-makers present. Highlights included:
Peter Bourke, CIO of Westfield, helped drive a lively discussion on the changing role of the CIO and strategies for leading innovation within the organization versus simply responding to business needs.
Andrew Wiles, CIO of Vodafone, addressed the importance of talent management and the skills that IT professionals require to succeed in a fast-paced business environment.
The CTOs of Avaya and Cisco provided excellent insight from the vendor perspective, while David Gee, CIO of Credit Union Australia, wrapped up the event with a vision of the future — the “microtrends and megatrends” likely to affect our lives, both professionally and personally.