Cloud Computing By The Numbers: Understanding The True Cost Of Cloud Services

Dave Bartoletti

With VMworld in full swing this week and Microsoft’s cloud-centered Windows Server 2012 launching soon after, your options for technology to build and deploy enterprise clouds is about to expand significantly. Meanwhile, Amazon continues to drop prices faster than your local Wal-Mart, introduce new cloud compute and storage services almost monthly, and has already gobbled up a trillion objects in S3. Is it time to start moving your workloads to the cloud?

Forrsights surveys show that companies are indeed moving to the cloud, primarily for speed and lower costs — but are the savings really there? The answer might not be obvious. Are you heavily virtualized already? Have you moved up the virtualization value chain beyond server consolidation to using virtual machines for better disaster recovery, less downtime, automated configuration management, and the like? Do you have a virtual-first policy and actively share resources across business units? If you run a mature virtual environment today, your internal infrastructure costs might already be competitive with the cloud.

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Indian CIOs Are At A Business Technology Crossroads

Manish Bahl

 

Indian CIOs are at the risk of losing business credibility if they do not improve their understanding of business technology (BT). This is the key finding from the latest report that John Brand and I just published. For this report, we surveyed 130 companies in India, using Forrester’s BT Leadership Maturity Model as a baseline for gauging the BT maturity and readiness of Indian organizations. Our survey revealed a surprising level of consistency and positivity about BT among Indian firms, regardless of organization size, type or industry.

This was especially surprising given that BT is a relatively new concept in emerging markets. When we asked CIOs at Indian organizations to define BT in their own words, the responses displayed an overwhelmingly enthusiastic and optimistic view of BT; the most common theme centered on the value of BT as a general principle. However, many topics that were widely cited in self-assessments from CIOs in more mature markets like North America, Europe, and Australia/New Zealand were all but ignored by Indian CIOs, including time-to-value, market differentiation, communication, and governance.  As Indian CIOs have not long been exposed to the general concepts of BT, Forrester believes that inflated self-rankings are mainly attributed to a lack of understanding of just how comprehensive BT is.

The report helps answer key questions such as:

·         Why are Indian CIOs remarkably consistent in their BT views and attitudes? And is this really just due to a common tendency to inflate their own BT maturity?

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Pitney Bowes Reinvents To Become A Company For Today And Tomorrow

Tim Sheedy

I recently spent a few days in Connecticut, USA, with Pitney Bowes. So why, you ask, is a CIO advisor who spends most of his time talking about the future of business technology in Asia Pacific spending time with a company that makes machines that stamp mail? That is a good question, and one I hope to answer while at the same time showing where I believe Pitney Bowes can help in your organisation.

So Pitney Bowes stamps mail. Yes — but they see it differently. They see that they enable communications with customers. Interesting. But mail is declining — right? Yes, it is, and Pitney Bowes has made many acquisitions to position itself as the leader in the digital mail space. And they have gone from just providing the communications capability to working across the entire customer lifecycle. Acquisitions of Portrait Software, MapInfo, Group 1 Software and many of the other firms they have acquired in the last 10 years have given them the ability to do:

-       Customer profiling and segmentation
-       Data preparation and composition
-       Multi-channel customer output
-       Customer response management
-       Response analysis

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Indian CIOs Are At The Crossroads Of Their Future Role; Change Or Fall By The Wayside

Manish Bahl

I presented the keynote at the Biztech2 event in Mumbai last week. It was a big evening, as almost all key Indian CIOs were present at the event. The theme of my keynote was “The Empowered BT CIO,” which triggered some interesting thoughts, as all of the discussions that I had after the presentation were mainly around “business” with hardly any mention of “technology.” Below are the key points mentioned by CIOs in my discussions with them:

  • “We do all the work and business leaders take all the credit. But if something goes wrong, we are the ones who get the blame.”
  • “The money is with the finance and marketing departments, and we have to depend on them for our budget. My CEO should change this structure.”
  • “I don’t have followers in my organization.”
  • “My organization doesn’t give me the same importance as it gives the CFO or CMO.”
  • “Through technology innovation, I helped the company reduce IT spending and save money.”

All of these points have one thing in common: “my present role and issues that I face today.” But no one talked about their future role! My response to them was consistent, as I categorically highlighted that CIOs have two options:

  • Continue with your current approach — but then the future role of the CIO will be dismal.
  • Step up and take the challenge to shape the business. Take it as an opportunity to transform your role in the empowered world.
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Turning Data Into Business Value

Holger Kisker

Join us at Forrester’s CIO Forum in Las Vegas on May 3 and 4 for “The New Age Of Business Intelligence.”

The amount of data is growing at tremendous speed — inside and outside of companies’ firewalls. Last year we did hit approximately 1 zettabyte (1 trillion gigabytes) of data in the public Web, and the speed by which new data is created continues to accelerate, including unstructured data in the form of text, semistructured data from M2M communication, and structured data in transactional business applications.

Fortunately, our technical capabilities to collect, store, analyze, and distribute data have also been growing at a tremendous speed. Reports that used to run for many hours now complete within seconds using new solutions like SAP’s HANA or other tailored appliances. Suddenly, a whole new world of data has become available to the CIO and his business peers, and the question is no longer if companies should expand their data/information management footprint and capabilities but rather how and where to start with. Forrester’s recent Strategic Planning Forrsights For CIOs data shows that 42% of all companies are planning an information/data project in 2012, more than for any other application segment — including collaboration tools, CRM, or ERP.

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Exploring Social Computing Possibilities With Singapore Public Sector CIOs

Michael Barnes

Several months ago I hosted a roundtable discussion with public-sector CIOs from multiple Singapore government agencies. We focused specifically on social computing — how it will alter the way public-sector agencies interact with constituents and each other. While the focus was on Singapore, the key takeaways are universal, hence my interest in sharing the findings here.

In the midst of discussing the usual suspects — concerns about security, privacy, risk management, audit, and compliance — we came to a consensus on some key points:

  • Clearly identify what services or information constituents actually want, not what the agency wants to deliver. A poorly implemented social computing app risks becoming a glorified suggestion box, or worse — “next-generation knowledge management.” In other words, a costly solution looking for a problem. Focus instead on how to actively engage users — using advanced analytics and business intelligence (BI) to deliver value. In some cases, it is as simple as asking instead of assuming.
  • Combining formal and informal data will be a major challenge.The more effective agencies are at encouraging voluntary, “opt-in” style usage, the more challenging it will be to segregate user-provided information and data from more formal, agency-provided data that must be rigorously maintained and secured. Take this information “sourcing” issue into account when documenting data management policies.
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CMOs And CIOs Tackle Technology: Q&A With Robert Mead, CMO And Michael Mathias, CIO At Aetna

Sharyn Leaver

Recently my colleague David Cooperstein and I had the opportunity to meet with Robert Mead and Michael Mathias, the CMO and CIO respectively at Aetna. They will be speaking at our upcoming CIO-CMO Forum on September 22 in Boston, so this serves as a bit of a preview to what should be an eye opening presentation. Enjoy!

David Cooperstein: What external changes drove you to build a deeper partnership with your technology peers?

Robert Mead, Senior Vice President, Aetna Marketing, Product & Communications: The U.S. health care system is fragmented and well behind the curve in terms of price transparency and consumer-friendly products and services.  The deep partnership between technology and marketing at Aetna lets us put leading-edge technologies and powerful tools and applications directly into the hands of people so that they can be confident consumers and informed patients. Our close collaboration with our colleagues in technology is driven by a few external factors:

  • the increasing cost of care and the corresponding changes in employer-based insurance – consumers are being asked to take more ownership of their health and wellness and their health care spending;
  • the introduction and rapid adoption of technology that empowers consumers (and patients) to engage in the health care system where they are in life and in the way they want to be connected; and
  • health care reform, which aims to bring millions of previously uninsured Americans into the marketplace as consumers.
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Join CIOs And CMOs As They Determine The Future Of Technology Planning In The Empowered Era

Gene Leganza

We at Forrester have written a lot about the “empowered era” in the past year. We’re talking about the empowerment of customers and employees, the consumerization of technology, and grass-roots-based, tech-enabled innovation. There are lots of great case studies around illustrating these forces and how they can benefit the enterprise, but those success stories are only part of the picture. Behind the scenes, there is disruption and confusion about who’s planning the road ahead regarding the technology in our organizations’ future. It used to be that the CIO made sure that happened by making it the exclusive domain of strategic planners and enterprise architects. But isn’t centralized — and IT-based — tech planning the opposite of empowerment? Wouldn’t sticking with the old approach result in missing out on all this employee innovation that’s supposed to be so powerful? Should the CIO no longer establish the technology the enterprise will use? Does the empowerment era mean the end of tech planning as we know it?

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Mastering Customer Data: The Next EA Opportunity – And Challenge

Alex Cullen

Several recent Forrester reports home in on what we call “The Age Of The Customer” in which firms must seek to become customer-obsessed to build differentiation and loyalty. Those firms that embrace this will ramp up investment in four priority areas: 1) real-time customer intelligence; 2) customer experience and customer service; 3) sales channels that deliver customer intelligence; and 4) useful content and interactive marketing. All these needs are technology-infused – wholly dependent on technology and in categories where technology is evolving rapidly. Underlying these investments is the need to master the flow of data about customers: capturing/collecting data about them, analyzing it, distributing to those points of engagement, and, finally, integrating the insights into the customer experience. 

Companies can’t succeed at doing this without a close partnership between the business areas leading the charge and IT. The rate of change of your customers, markets, business opportunities, and technology is simply too fast. Forrester is exploring this theme in our first CIO/CMO joint forum

The reality, though, is companies flounder at this marketing-IT partnership. They flounder because of:

  • More ideas than capacity. A plethora of desired initiatives are constantly being surfaced – beyond the limits of available budget and with no mechanism to sort them into an achievable plan that IT can deliver on.   
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What Is Your IT Strategy To Win In The Age Of The Customer?

Doug Washburn

Consider the following scenario: It’s a hot summer day and a prospective customer walks into your store to buy an air conditioner. He evaluates several models and then buys one — but not from you. It turns out your competitor located two miles away is offering the same model at a 20% discount. How did he know this? He scanned the product's bar code using the RedLaser app on his iPhone, which displayed several local retailers with lower prices than yours. If he had been willing to wait three days for shipping, he could have purchased the exact same model while standing in your store from an online retailer at a 30% discount.

This type of technology-fueled disruption is affecting all industries, not just retailers. Since the early 1900s, businesses relied on competitive barriers such as manufacturing strength, distribution power, and information mastery. But this is all changing in the age of the customer, where empowered buyers have information at their fingertips to check a price, read a product review, or ask for advice from a friend right from the screen of their smartphone.

To compete in the age of the customer, your business must become customer-obsessed. As Forrester’s Josh Bernoff (@jbernoff), SVP of Idea Development and author of Groundswell and Empowered, advocates in his latest research: “The only source of competitive advantage is the one that can survive technology-fueled disruption — an obsession with understanding, delighting, connecting with, and serving customers.”

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