You have all heard the success stories of Uber and Airbnb as they leverage technology to disrupt existing business norms in the taxi and hotel businesses. Digital business successes such as these are pressuring traditional enterprises to focus on differentiation in business models, customer intimacy and velocity as they look to not only preserve market share, but – more importantly – to grow it! This is what Forrester calls the business technology (BT) agenda – technology investments that help your business win, serve, and retain customers.
Additionally, as an I&O professional you cannot ignore the investments, and success, with public cloud. For instance, public cloud providers like Amazon Web Services drive and deliver systems of innovation to create velocity both in new business ventures and traditional enterprises, especially in fueling mobility and web services. The investments to date are supporting the ability of the Public Cloud to support and drive innovation. Additionally, these solutions now raise the possibility of the cloud’s suitability for the next phase, transition of systems of record. This is one of the predictions in our Forrester “Predictions 2016: The Cloud Accelerates” which articulates 11 key developments for Cloud and what I&O professionals should do about them.
The “low hanging fruit” is gone – now it’s time to reach higher
For all sorts of reasons, CIOs increasingly find themselves trying to introduce (or impose, resurrect, or enforce) governance, compliance, audit and oversight across a dizzying array of cloud solutions. Some may have been introduced by themselves or their predecessors, but most have entered the business by other means.
Multiple clouds, in the Nevada desert (Source: Paul Miller)
Perhaps they've been procured, properly, by departments from Sales and Marketing to Logistics and Customer Support. Or perhaps it's a lone developer or a small team, with a company credit card and a problem to solve.
However it happened, your business is already a multicloud business, and the CIO is — increasingly — expected to answer for inefficiencies, regulatory lapses, poor financial controls, and more, wherever they crop up in a sprawling and confused IT estate.
The easy solution might be, at first glance, to assert control. To select a single provider, and to enforce that selection. To prowl the corridors of the business, plucking public cloud credentials and SaaS admin accounts from the unwilling fingers of employees.
But the braver CIO is the CIO who embraces their multicloud reality, who works to understand how and why committed and engaged employees felt it necessary to seek out their own solutions, and who learns lessons from the failures of the recent past.
The big public cloud providers, most of which are still from the United States, sometimes have a hard time finding ways to balance their legal obligations at home with the quite different sensitivities they encounter amongst their new international customers. For a long time, the toolkit has been pretty consistent: site data centres as close to the customer as possible, vehemently support political efforts to harmonize laws, and ocassionally be seen to stand up to the worst execesses of Government over-reach.
(Source: Flickr user Luigi Rosa. Image licensed under Creative Commons Attribution License)
Microsoft's announcements in Germany today appear, on the surface, to follow that model pretty closely. But there's a twist that's potentially very important as we move forward.
First, the standard bit. Microsoft, yesterday, announced new data centres will be operational in the UK next year, joining existing European facilities in Dublin and Amsterdam. Big competitor Amazon did much the same last week, announcing that a new UK data centre will be online in the UK by "2016 or 2017." Given the vague timescales, it might be easy to assume that Amazon was trying to steal a little of Microsoft's thunder with a half-baked pre-announcement. And then, today, Microsoft announced two new data centres in Germany. Amazon already has a facility there, of course.
I was in Tokyo last week, for the latest OpenStack Summit. Over 5,000 people joined me from around the world, to discuss this open source cloud project's latest - Liberty - release, to lay the groundwork for next year's Mitaka release, and to highlight stories of successful adoption.
Tokyo's Hamarikyu Gardens combine old with new (Source: Paul Miller)
And, unlike many events, this wasn't a hermetically sealed bubble of blandly anodyne mid-Atlantic content, served up to the same globe-trotting audience in characterless rooms that could so easily have been in London, Frankfurt, or Chicago. Instead, we heard from local implementers of OpenStack like Fujitsu, Yahoo! Japan, and - from just across the water - SK Telecom and Huawei.
In keynotes, case studies, and deep-dive technical sessions, attendees learned what worked, debated where to go next, and considered the project's complicated relationship to containers, software-defined networks, the giants of the public cloud, and more.
The hordes gathered in Las Vegas this week, for Amazon's latest re:Invent show. Over 18,000 individuals queued to get into sessions, jostled to reach the Oreo Cookie Popcorn (yes, really), and dodged casino-goers to hear from AWS, its partners and its customers. Las Vegas may figure nowhere on my list of favourite places, but the programme of Analyst sessions AWS laid on for earlier in the week definitely justified this trip.
The headline items (the Internet of Things, Business Intelligence, and a Snowball chucked straight at the 'hell' that is the enterprise data centre (think about it)) are much-discussed, but in many ways the more interesting stuff was AWS' continued - quiet, methodical, inexorable - improvement of its current offerings. One by one, enterprise 'reasons' to avoid AWS or its public cloud competitors are being systematically demolished.
I bring tidings of great joy to the Forrester community, and especially to our clients! We have a new analyst on the Infrastructure & Operations Research team! It took a long time to get the right person, but we finally did. Once you meet him (and you likely already have), you will agree!
The newest Principal Analyst on the I&O team is Robert Stroud! Rob comes to us after a long stint at the software company CA, where he was most recently the VP of Strategy and Innovation. Central to his recent work is a significant amount of evangelism about DevOps, the hot movement promoting rapid application and technology service delivery. He has been very active in the governance and service management communities for years, holding many leadership positions. He just wrapped up his tenure as the International President of ISACA and was a primary author of the last few versions of the COBIT framework. He has won several awards in this community in recognition of his many achievements – all well deserved!
Ubiquitous public cloud services are making stronger strides into the world of business technology, and enterprises are increasingly looking to cloud services to help them succeed. Cloud services stretch across the business value chain, including ideation, prototyping, product development, business planning, go-to-market strategy, marketing, finance, and strategic growth. Consumption patterns vary by service. For the past few years, the businesses has owned certain services, in some cases without keeping their technology management teams in loop — AKA “shadow IT”. Every business unit engages in this behavior, each one sourcing the various services they use from multiple providers. As a result, today’s businesses face a complex array of cloud services, each with their own business functions and requirements. The emerging cloud landscape does not provide a “single pane of glass” for the tech management team and lacks a standard governance model across services. Finally, it does not allow firms to compare costs for a standard service, which could result in suboptimal spending. This situation is creating a need for what we call “cloud orchestration solutions”. Such a solution would provide:
A single window on all cloud services. It merges all required and approved service types from multiple cloud service providers into a single portal, much like the ITSM service portals that offered services built within an organization.
Information on the service provider most suited to a given workload.
Comparison of services across service providers.
Consistent governance models across services.
Control over service life cycles and thus service cost.
My colleague Henry Baltazar and I have been watching the development of new systems and storage technology for years now, and each of us has been trumpeting in our own way the future potential of new non-volatile memory technology (NVM) to not only provide a major leap for current flash-based storage technology but to trigger a major transformation in how servers and storage are architected and deployed and eventually in how software looks at persistent versus nonpersistent storage.
All well and good, but up until very recently we were limited to vague prognostications about which flavor of NVM would finally belly up to the bar for mass production, and how the resultant systems could be architected. In the last 30 days, two major technology developments, Intel’s further disclosure of its future joint-venture NVM technology, now known as 3D XPoint™ Technology, and Diablo Technologies introduction of Memory1, have allowed us to sharpen the focus on the potential outcomes and routes to market for this next wave of infrastructure transformation.
Sales organizations, for the last couple of decades, have used sales automation (SFA) to manage account and contact data, sales pipelines, territories and more – all inside-out capabilities that help optimize their productivity, The problem is that today, customers control the conversation that they have with companies. Customers increasingly demand effortless sales interactions that increasingly trend toward self-service. They demand interactions tailored to their particular industry, pain point, and profile. They want streamlined interactions that value their time, such as a simple, efficient quote-to-order process or a contract renewal process.
Today sales organizations struggle to provide sales experiences in-line with customer expectations. They cant:
Support buyers on their terms. Buyers increasingly leverage mobile touchpoints, self-service, and digital channels to interact with companies which sales organizations cannot support.
Get sales representatives to follow consistent processes. Sales managers have sales reps of different calibers, and they must up-level a team’s performance. Also, without a consistent sales process that clearly articulates conditions for the different stages, managers can’t accurately qualify their pipeline. This affects forecasts, valuation, and profitability.
Personalize conversations with stakeholders. Sales reps don’t have near real-time information about their prospect’s company or industry or about a particular stakeholder to make conversations more relevant. They may not understand relationships between stakeholders that are involved in a purchase. They often lack insight about the effectiveness of sales collateral for different stages of the sales journey.
Hello from the newest analyst serving Forrester Research’s CIO role. My name is Paul Miller, and I joined Forrester at the beginning of August. I am attached to Forrester’s London office, but it’s already clear that I’ll be working with clients across many time zones.
As my Analyst bio describes, my primary focus is on cloud computing, with a particular interest in the way that cloud-based approaches enable (or even require) organizations to embrace digital transformation of themselves and their customer relationships. Before joining Forrester, I spent six years as an independent analyst and consultant. My work spanned cloud computing and big data and I am sure that this broader portfolio of interests will continue into my Forrester research, particularly where I can explore the demonstrable value that these approaches bring to those who embrace them.
I am still working on the best way to capture and explain my research coverage, talking with many of my new colleagues, and learning about potential synergies between what they already do and what I could or should be doing. I know that the first document to appear with my name on it will be a CIO-friendly look at OpenStack, as the genesis of this new Brief lies in a report that I had to write as part of Forrester’s recruitment process. I have a long (long, long) list of further reports I am keen to get started on, and these should begin to appear online as upcoming titles in the very near future. I shall also be blogging here, and look forward to using this as a way to get shorter thoughts and perspectives online relatively quickly. I’ve been regularly blogging for work since early 2004, although too many of the blogs I used to write for are now only preserved in the vaults of Brewster Kahle’s wonderful Internet Archive.