Showing posts with label ITaaS. Show all posts
Showing posts with label ITaaS. Show all posts

Tuesday, October 29, 2013

A Tale of Three Cloud Strategies (Upgraded from Two)


Earlier in March I penned a blog titled A Tale of Two Cloud Strategies and observed the two opposing cloud strategies of VMware vs. AWS. VMware, with its strength in the enterprise, building presence in the public cloud -- and AWS with de facto dominance in the public cloud, working inroads into the enterprise.

In my closing paragraph I noted
These will be extraordinary strategies to observe over time. We all know that even the most dominating companies/technologies eventually meet their match (or their disruption).  Both VMware and AWS have appeared at times to be unstoppable. As they converge, it will surely be a battle of gladiators.  Unless (or until) of course, third, fourth and dark-horse players disrupt the party. As they always do. 
And, sure enough, here comes the Number Three - and predictable - gladiator.

Enter: Microsoft Azure - and Windows Server 

Azure has been gaining ground (and functionality) steadily.  Earlier in the year Azure GM Steven Martin hyped that 50% of the F500 companies were now using the service. And just the other day, Microsoft reported 103% growth quarter (includes Office 365). But that's not the real story IMO.

The company has also released (with a new name) the Windows Azure Pack. When used with Windows Server and System Center, it allows enterprises and service providers to generate Azure services -- using Azure APIs. Furthermore, it simplifies creating hybrid services between the data center and Azure, including capacity expansion, fail-over and DR.

Trojan horse? No - simply a clever strategy.  They are lowering (and nearly eliminating) the barriers to adoption of the public cloud by introducing it as a service extension of Windows you already own. And this way, any enterprise or service provider can go public/private/hybrid on their own timetable.

It's Now a Three-Horse Race. Do I hear Four?

VMware, AWS and Microsoft are off to the races for dominance of the hybrid cloud. Will there be a fourth?  And, will the market segment into 3 preferences? Or, will users demand greater interoperability and fight lock-in.

Stay tuned until our next episode...

Tuesday, February 21, 2012

IT-as-a-Service: Resources and Pointers

IT-as-a-Service. Possibly another buzzword that may reach the peak of hype and then fade away in a millisecond. But even if so, this new concept will persist by some other name.

Unlike IaaS, PaaS, SaaS, etc. ITaaS isn't a technology model. It's a new mind-set and approach to delivering enterprise IT services - where IT operates and competes for "business" as-would a service provider.And, like a commercial SP entity, it actually tries to encourage service consumption, rather than discourage it.

This is in contrast to the stereotypical IT department that runs a bottleneck help-desk, issues locked-down equipment, charges the enterprise with a flat operating "tax", and is organized along purely technological lines.

This "new" IT thinks more like a business - not that it needs to deliver a profit per se, but that it's more customer (line-of-business) focused, understands its costs, and "competes" against alternatives that users now have outside the enterprise (a.ka. Shadow IT). The new IT thinks Self-Service provisioning, Choice Computing (BYoD), monitors variable costs and unit consumption, and is organized to deliver services, not technologies. 

ITaaS Model - Components and Pointers

When IT begins thinking about becoming an "internal" service provider, there are 3 conceptual models that need to shift - (a) how services are generated and consumed, (b) a shift in how technology is leveraged, and (c) a change in operations and organization.

Where can you find the most authoritative information about ITaaS?  I'd like to believe that EMC is leading the way with, among others, our own IT Department.  But resources abound on the topic...  I've begun to collect useful pointers from many points of view. And, from time-to-time, I will update this list with additional pointers, insights and success stories.

ITaaS Overview
Don't take my word for it. Others are beginning to write about ITaaS, its benefits, its positive impact on business agility, and about where to start your plan:
IT Leadership
If the enterprise is to undertake the ITaaS transformation, then senior IT leadership - as well as line-of-business leadership - has to be 100% behind it.  But the traditional CIO-as-Technologist model necessarily has to give way to CIO-as-businessman.  Running IT like a business means complementing technology with knowledge of how the enterprise's core business runs, IT financial management, IT organizational transformation, and even IT services-supply-chain management.

IT Financial Transparency
A key characteristic of transformation to ITaaS is the ability to understand the costs of delivering individual services, and thus be able to allocate and price them appropriately. Once variable IT costs are understood, measured, and shared with the business, IT has a higher stake in ensuring that services are delivered and priced efficiently and transparently.  And, by creating and assigning per-unit costs to services, IT can more efficiently match supply with consumption. Ultimately, improved IT financial transparency ensures more accurate decisions made both by IT and lines of business.
 Reinventing the IT Consumption Model
In a transformed IT environment, the goal is to drive an increase in service consumption by the business. The shift also includes IT viewing its business model as a profit center rather than a cost center, with more of a commercial mindset.  To accomplish this, IT must change its operating model to simplify access to services, and to facilitate delivery of services – regardless of whether they are internally or externally generated. And, if IT is to become this ‘broker’ of services, it must develop a customer-centric supply-chain approach to delivery of services that the business demands, no matter their origin.

Transforming Organization, Roles, Skills
As the IT organization transforms itself to become more like a service provider to the enterprise, internal IT skills, roles, and even the entire organizational structure will necessarily change. Traditional technology specialization areas will make way for more general, services-centric roles. Skills will shift from specialists who craft technology stacks, to generalists who manage holistic systems that produce user-centric services.  Service product managers (both in-bound and out-bound) will also be in demand to maintain value alignment with line of business users.
Success Stories
IT-as-a-Service is still new, and most companies who have embarked on the transformation are still mid-stream. But a few are making their journeys public. Here are a few I've found.
Analyst Perspectives
Industry analysts are beginning to adopt the "Run IT like a business" perspective, and even the ITaaS label. Here are some pointers (some reports require Analyst website logins/subscriptions)


    Monday, February 13, 2012

    My IT is Ready. My People Are Not.

    By now you may know that I buy into the enterprise approach where cloud computing and its operational model are enablers for something bigger: The transformation to IT-as-a-Service. That's when internal IT acts, operates and competes like an internal SP.

    But I've come to realize that such transformation is more of a skills and operational model shift than a technology shift (although technology is clearly an enabler). As was often mentioned at a recent CIO event I attended, "My technology is ready. My people are not" 

    This topic of talent, training and organization appears to be consistently glossed-over. But recently at EMC and with customers, I'm seeing the beginnings of a sea change in the industry.


    Early Indicators of Change

    My first sense of the need for change arose from a 2010 conversation with an analyst about using converged infrastructure. They made the observation that "to use a converged infrastructure to its fullest, you need a converged organization."  This got me thinking: when the boundaries between compute, storage and network begin to blur, so must the boundaries between traditional IT organizations. The advent of cloud computing (more specifically, IaaS and PaaS) highlights a similar issue.

    Slowly, the 'unit of management' in the data center is shifting away from the isolated IT component, and is moving toward the application service.  IT management is having to treat the infrastructure more holistically, more horizontally. With more automated provisioning, virtualization and elastic capacity, orchestration across all components is becoming a requirement. Similarly, the skills of IT Ops personnel need to be more integrated - individuals simply need more cross-specialization knowledge and training to ensure that services are delivered quickly and efficiently.

    My next sense of the breadth of change came when I joined EMC and saw what Sanjay Mirchandani (EMC's CIO) saw in transformation to IT-as-a-Service.  To him, cloud computing and infrastructure automation were merely enablers for IT organizations to become more of strategic enablers to the business, more of internal service bureaus, driving consumption of their services, and operating overall like a business itself. Toward this end, EMC-IT has been documenting its change now for a number of years. But, because this shift involved so much more than just technology, I began to realize that the skills and roles within "traditional" IT would become woefully inadequate in a number of years.

    In the transformed world of IT (and IT-as-a-Service) the organization needs to develop horizontal groups to manage broad platform architecture and management, as well as roles that 'broker' those services to the lines of business (service managers) and maintain alignment to the needs of users. There may even be roles that loosely align with 'sales and marketing' that help drive awareness and consumption of IT services - concepts that will surely seem foreign to any CIO.

    What's Next... and How To Prepare Your People

    When recently reading an article in Forbes I observed that others were noticing these needs (and opportunities) for IT skills of the future as well:
    "As a result of the shift to cloud, there is growing demand for professionals and managers that are more focused on business development than they are in application development. There will be greater opportunities for enterprise architects, and some offshoots will include cloud architects, cloud capacity planners, cloud service managers and business solutions consultants. Jobs being created may not always bear the term “cloud” in their titles, but cloud will form the core of their job descriptions.
    What caught me here was not all new roles will be technology-focused. Service managers and business solutions consultants - for example - will be client-focused. Think of that: Roles that exist solely to understand the line-of-business operating units, develop services (not technologies) to meet their needs, and help drive demand for those services. (See related post on A Marketing Lesson for IT )

    So if you believe the tenet that skills and roles will play a more critical role in the transformation of IT, then where does one start?  Here at EMC, I was pleasantly surprised to see that our own HR department is right on top of the problem.  Our IT HR director in fact was taking the lead in describing what change lay ahead.  In a recent communication of hers she noted
    "...we are in the midst of a process to build on our current skills to foster the ITaaS model, taking deliberate steps to fill any gaps by providing plenty of training and support. Last quarter, we assessed the skill level of each employee against a set of key competencies needed for their particular functions under ITaaS to determine what added training/support they need. In some cases, the skills we’ll be drawing on are very different than the typical IT focus. New areas of required expertise include things like product management and development, communications, marketing, negotiation and influence skills, and financial acumen.
    "Our prime focus in Human Resources is employee development and preparing employees for what our future IT organization will look like. This is part of our life-long learning and development program....  We are going to help [our people] gain new skills and provide them with the tools they need. A key part of the journey will involve learning to think like a service provider rather than the internal agency we are used to being. It will require a shift in our cultural mindset from discouraging business IT demand to actually selling and marketing IT services.
    Wow. IT shifting its mindset to selling and marketing...  That our HR group is this intimately involved in the transformation of the business I found exciting and enlightening. And as I looked further, I realized that we (and others, I'm sure) are beginning to take steps to prepare for this transition. EMC for example, recently Announced Cloud Architect and Data Center Architect certification tracks including expert-level tracks (and Brochure PDF )

    In many ways, existing hosting and public cloud service providers already know much of this; their business depends on good customer service, meeting requirements, and driving consumption (demand). Enterprise IT now simply has to learn from them - and adopt this new mindset.

    Where to start? Begin thinking about how the following job skills and orgs might play a role in advancing IT's strategic importance in the organization
    • New Consumption models - There is a need to simplify and drive how services are consumed. This is a 2-part process. Technically, there is the migration toward self-service catalogs. But there is also the marketing aspect that drives awareness and demand for these services - IT needs to think "commercially" - attract demand, and make access to it as frictionless as possible.
    • New Operational models: Architecturally and operationally, more of IT will become "horizontally" oriented, along the lines of business services and along the lines of customers. New orchestration-style tools and processes will be needed - implying the need for skills to manage them properly.
    • New Marketing roles: Yes, marketing.  To drive consumption, IT has to expose more of its services to more potential business users... and do so competitively. That is, IT needs not only to think about what the business needs, but what their next alternative (outside of the IT organization) is, and ensure that IT is the vendor of choice.  More about marketing IT here.
    • New Finance roles:  Implementing IT cost transparency doesn’t just require financial data, though that is what most people think about when they hear the term. It also depends on information about hosting, applications, infrastructure, licensing and maintenance, and other things that let us associate costs to services. Clearly these roles are net-new to IT
    • New Business relationships: Partnering with, and aligning to the business is about more than just providing basic IT services and helpdesk. It means working alongside line-of-business planning to understand what drives their top-line business, what is at the core of their competitive advantage, and what business agility can add to these. Dedicated roles - which are steeped in both business and technology skills - need to be acquired and assigned to individual business units.
    Other Resources:


      Monday, December 19, 2011

      Steve Jobs in 1980... and Cloud + Big Data Today

      In 1980, Steve Jobs gave a talk (YouTube) about the early days of Apple.

      It's fascinating because it describes events that lead up to the first commercially-available Apple computer, and presaged the movement toward "canned" programs (commercial software) rather than everyone writing programs themselves.

      However, around the 12:00 mark, Steve made a really incredible observation regarding the true goal of Apple (at the time) and about how to use the new level of computing power available to Apple computer users:
      "As we move into the '80's, the amount of computational power - the amount of raw horsepower - we can get into a small box for a reasonable price is staggering....   One of the things people always ask me [is] 'what we've got right now is just fine; VisiCalc runs fast enough. Some of the database stuff runs fast enough. What are we going to do with this extra awesome power?'

      "The answer to that is that we're going to put it [computational power] into applying/solving that problem again: In other words, we're going to start chewing up power specifically to help that 1:1 interaction go smoother. And specifically not to actually do the number-crunching and database management and word processing. We're actually going to apply that power specifically into removing that barrier.... 


      This statement struck me because, in essence, Steve was saying "it's not about faster, it's about easier". He was pointing to all that could be possible if the clunky interaction with the technology was relegated to the background and made invisible.

      In today's enterprise context, my interpretation of this is "What could be possible if all of that data center technology could be relegated to the background and made invisible?" In essence I thought, what if we could mask the granular time-consuming operational efforts of managing servers, I/O, applications, networking, storage, security etc. and get back to why the data center is there in the first place?  Today, IT operations for 'keeping the lights on" consumes ~ 75% of IT's budget today, and only ~ 25% is left over for innovation and serving the business.

      The goal of IT Transformation should be to "solve the problem again" and put the computational horsepower on autopilot. Let's get to the point where our interaction with the data center is the ability to ask for the resources we need, and in response, we instantly get fast, scalable, secure services.

      If we can get to the point where 25% of the cost is to keep things running, and 75% of the cost is used for innovation about the data, what would be possible for business?

      In my opinion, IT is still largely in the Dark Ages. We are obsessed with speeds and feeds, tuning and tiering. The purpose of the Data Center is the Data - manipulating and analyzing it for the business. If we found a way to direct 75% of our computational horsepower to THAT, what would be possible?

      That needs to be the goal of IT Transformation. That is why Cloud is such a critical enabler.

      Thanks once again, Steve.


      Other Resources:

      Monday, October 10, 2011

      A Leading Indicator of "Consumerized IT"?

      Let me start with a game: Try to guess the type of customer I met with last week...
      • Roughly 5,000 users with ~ 25% annual turnover
      • Pressured to support multiple user-provided devices (Smart phones, iPads, etc.)
      • Significant "Shadow IT" (e.g. users turning to external web services w/out IT's knowledge)
      • Inquiring into a VDI environment to increase manageability, reduce costs
      • Increasingly huge storage needs, esp. for video (on-demand media, surveillance, etc.) 
      Give up?  Well, this customer was a High School district, with thousands of students and hundreds of faculty. And they shocked me with their challenges, ones which I assumed only large enterprises had.  I have to admit I was pretty surprised at their level of sophistication - and their vision.

      And then it dawned on me: These guys actually more of a "leading indicator" than most their commercial enterprise cousins.  Their internal customers are nearly all Millennials, arguably leading users of consumer technology, and sometimes the most demanding. The student base requires support for "any device, any time", and doesn't hesitate to use external commercial services rather than IT (think: kids using DropBox, Evernote, Mobile Me, etc.). Also, users (students) without their own personal "smart" devices will typically log into multiple alternative devices a number of times each day, requiring virtual display and authentication technologies.

      So, think about it: These students - and their appetite for "consumerized" technologies, will be your workforce of tomorrow.

      What that high school IT department is facing is what most IT will be facing during the next few years. So consider carefully who (and what) you'll need to support in the coming years. And consider the organizational, technological, and governance transitions you'll need to implement as well.

      In a recent Forrester Research report, "Shifting from Rules to Guardrails" there are some good observations of how IT (and the CIO) have to transform from being technologists to becoming brokers, vendor managers, and providers of technology governance:
      "We see a blurring boundary between business and IT. The rise of self-service technologies, driven by empowered employees, provides new opportunities for IT to improve business responsiveness by enabling greater autonomy... To do this successfully, IT must evolve new governance approaches that empower the business with guardrails and education, reserving strict technology control for only the most critical technology assets. For many, this will be a radical change.
      So, my lesson was that the places to look for Leading Indicators of IT transformation aren't necessarily the analysts and brainiac IT leaders... Instead, perhaps I should focus more on the needs of the 9th grade entering class.

      I hope to stay in touch with the IT staff at the school district, and see what priorities (and solutions) they see emerging in the coming months.  As I exited the meeting, one of the IT leaders took me aside and also mentioned that IT has also experienced - not surprisingly - hacker break-ins as well.  As I said, perhaps the youngsters are where to look...


      Other Resources

      Tuesday, September 13, 2011

      An Image Makeover for IT

      Wow. I just have to share notes about a meeting today - one that might have been unthinkable a year or so ago.

      I've been working closely with EMC's CIO and internal IT groups lately, helping understand how they're delivering IT as a Service. EMC's IT is going through a major transformation, where it's becoming more competitive, more business-centric, more like an internal Service Provider.

      What blew me away was a conversation I was invited into because I was in marketing. Could I help? IT wanted to begin  investigating how to market its on-demand/ITaaS services internally to EMC lines-of-business. We discussed audience segmentation, how IT would like to be perceived (read: Brand Essence), and the services/value IT provides to assist the business.What should a marketing and roll-out plan look like? Graphic designs? Should IT instead be called BT (Business Technology)? How would the value of Service Manager roles be highlighted?

      The discussion - while well from over - I believe is a harbinger for the "new" IT, where IT provides value and competitive advantage to other lines-of-business, where it acts like a strategic partner/vendor, and competes for business. It's so much more than technology.

      We agreed that another harbinger of change was when the CIO spends more time with the CMO, rather than with the CFO. And I can attest to being present to one such meeting.

      So, in the process of IT elevating its value-add, IT will enhance how it caters to the business. It will actively promote its new service orientation, its new operating model, its new mindset.

      And I am more than happy to help.

      Related

      Tuesday, August 30, 2011

      IT-as-a-Service: Models for Consumption, Operations, Technology

      In a week where products surely dominate the news (it's VMworld, in case you live under a rock) I want to share some non-product insights I've made while working with EMC's IT group regarding running IT as a Service.

      First, running IT as a Service doesn't mean outsourcing IT. It's about transforming corporate IT into thinking of itself as an internal service provider. Catering to internal Line-of-Business customer needs. Providing pricing and rate sheets. Offering financial transparency. Even marketing against and competing against (external) services.

      IT as a Service isn't just "more virtualization"

      The market is equating virtualization with cloud, and worse, equating cloud with IT Transformation. And by IT Transformation, I mean the re-casting of the IT department to operate like an internal service provider, and to act like a business. In my opinion, Cloud (use whatever definition you prefer) is really just a critical enabler for IT transformation.

      In both EMC's and VMware's similar 3-step "Journey to Your Cloud" models, at first glance you'd think that the end-goal is more virtualization and more automation. But what we at EMC (and a number of customers) have found is that the end-state is where the technology revolution winds down, and the organizational evolution begins to spin-up. Just having the technology in place is necessary, but not sufficient, for a transformation of how IT operates. So, as I've said, Cloud is the means, but not the end.

      Our IT department has over 79% of services virtualized and running on standard platforms. And arguably the virtualization initiative is beginning to be completed. (Aside: The new VMware 5.0 product line supports even bigger VMs and leverages CPUs with more cores - allowing for production-scale databases to now be virtualized). Manpower is now being diverted into the NEW areas needing resourcing: Business Transformation of IT, and the services packaging, marketing, and management that comes along with it. Another way of putting it:  Now that the technology is posing less of a problem to design and manage, more time is being spent working with EMC's Lines-of-Business to cater to their needs and enhance their business agility.

      3 Tenets of IT Transformation

      After conversations with our CIO Sanjay Mirchandani and our VP of Infrastructure, Jon Peirce, it's clear that this final phase of the "journey" is only partly comprised of technology. At the core, there are 3 broad areas of focus when transforming IT: Consumption models, Operations models, and Technology models.
      • IT Consumption Models
        Essentially this describes how supply is separated from demand, and that service capacity is created just-in-time. Services are generated from an approved inventory stored in a service catalog (self-service, if you're in IT), with each service having clear pricing, SLAs etc. The pricing could be variable and  "consumption based" that is, it's not only metered, but based on both true cost as well as opportunity cost for access to the infrastructure. But expect new challenges for IT finance.  Lastly, the consumption model can also include services brokering - that is, it can include services generated from outside IT as well as those generated within/by IT. Both sources are equally valid, so long as IT still provides common governance, access, pricing and secure delivery to internal LoB customers.

      • IT Operations Models
        Another non-technological shift is how IT operations changes, morphs and grows. One would expect that the operations mechanisms become more automated with less human intervention. But the real shift in operations is the *mindset* of IT, shifting from a "technology builder" to a "service delivery" organization. This fundamental shift focuses on delivering services (internal, external etc.) to the internal LoB customer to meet their needs/requests. A business mindset might also mean that IT will have to grow roles that sound like "service manager" "service product manager" and "client marketing manager" skill that IT will need eventually to acquire/develop. Which ultimately implies a good dose of Change Management will be necessary - that the IT organization, skills, roles, goals, etc. will shift over time. (a very excellent blog by Chuck Hollis dives into this topic)

      • Technology Models
        Last but not least is technology - but this part of the story isn't so much  about new technology so much as it is about how technology is used... and by whom.  Necessary, but not sufficient, is the use of a virtualized, automated, and converged infrastructure (cloud componentry).  Sans jargon, I mean an infrastructure that is virtual and pooled, so that it can be composed on-the-fly as business conditions require. Since this departs from the traditional vertical stack model where IT personnel *skills* are specialized, new skills will be in demand. We'll need more IT generalists, IT staff with horizontal *services delivery* skills, not point-product skills, and with comfort around automation. Oh - and the technology *roles* and *organizations* will change too to be consistent with the new model.
      And finally, the need for Change Management

      No, I don't mean Change Management in the context of ITIL/ITSM. Rather, it's in the context of organizational design and development (think: Management Consulting jargon). With all these new models, Change Management is critical to orchestrating the *non-technical* shifts in IT.  Our own EMC IT department employs a number of these types (ex-BCG, McKinsey, etc. folks) who help our staff develop new skill-sets, morph org structures, and create new engagement models for the business owners.

      IT transformation does not simply happen as a result of new technology. Rather, all of the products you buy are simply enablers to help you get to the really Hard Work. But the payoff is enormous.


      Tuesday, August 9, 2011

      Cloud Is Not The End - It's The Means.

      Once you get a new tool, you ask: What can I build that I couldn't before?

      Cloud computing, at its core, is an operational transformation - mostly focused on infrastructure. If you're an enterprise IT shop, you're right to think that such a change will (ultimately) simplify your world. But simplification, faster time-to-provision, and on-demand capacity aren't the end points of IT transformation. They are the new tools that are the Means to a more aspirational end.

      What every business craves is the ability to respond to new ideas (innovation) and to market pressures (competitive, consumers) faster and more completely - Agility.  A recent McKinsey study shows that the top 3 metrics of "agility" were centered on revenue growth rather than cost reduction - signalling that companies value growth over expense-cutting. And IT is the chief approach to enabling revenue growth for many  enterprises.

      But merely having faster infrastructure is necessary but not sufficient for an enterprise to achieve real business agility.

      My thesis is that Cloud computing - whether Private cloud, or a mix of Private/Public (Hybrid) - is really the means to a bigger end: Enabling IT to serve and enable the business, rather than simply respond to technology requests. Think of IT as an internal Service Provider (ITaaS) - developing, marketing, pricing and refining technology to meet the specific needs of Line-of-Business users.  Forrester research even makes the valid observation that IT (information technology) needs to undergo the conceptual transition to BT (business technology).

      The Goal is IT (I'll continue to use the term for now) that is structured and goaled to serve the business. And that is a whole lot more than just providing a virtualized cloud infrastructure.  

      A great overview of this ITaaS restructure was recently written in Chuck's Blog, where he outlines the skill, organizational, and financial transitions that must necessarily accompany the infrastructure transformation.

      In his blog, Chuck cites an oft-used slide by John Peirce, EMC's VP of IT Infrastructure and Services.

      This is a great analogy to how IT was traditionally (and will be) built and operated. In effect, IT will continue to progress toward an on-demand, if not cloud-like resource that business can tap into.

      But consider the corresponding change to how the IT organization itself will be built, run, and operated. In fact, consider how IT skillsets will need to change, and how it will need to partner with the lines-of-business to ensure that they're equipped with the right technology at the right time.  In fact, if the "new" IT does its job right, it will even work with the business owner to understand their business better, and suggest new tools (think Big Data analytics, etc.) that might add even more value.


      So I then got to thinking, we need a companion slide: That ITaaS transformation isn't about infrastructure only... it includes how IT works with the business as a Service Provider - at times actually competing for business against "Shadow IT" from external sources. There are for basic facets to think about this transition
      • From "monopoly" to "market": Rather than IT being "the only game in town", Shadow IT is causing indirect competition - where IT will have to offer and price services in a manner (and speed) that will cause internal customers to want to purchase from them.
      • From vertical to horizontal: where the organization shifts from stack-focused to service-focused. Literally, the orgcharts and skills-sets change over time. Chuck also does a great job of explaining EMC-IT's transformation over time)
      • From "enterprise tax" to consumerized pricing:  Rather than the fixed-price (frequently capital-expense) based pricing for standing-up a stack, IT will shift to a variable-priced model based on consumer needs and competitive pricing
      • From IT as a cost center to IT as a center of value, where IT teams with the LoB to create and offer services that move the business - whose job it is to generate revenue - forward.
      These 4 areas don't necessarily assume there is a cloud infrastructure in place - and indeed, don't require one. But to get the value out of a cloud infrastructure, you do require to implement them.

      The desired end-game is for the enterprise to be more competitive, responsive, and agile. Cloud is an enabler - but don't overlook what needs to be paired with technology to get the full effect.

      In future Blogs I will plan to go deeper into each area, exploring best practices, as well as how our own EMC IT department is faring on their own journey.


      More Info

      Wednesday, July 27, 2011

      IT-as-a-Service: IT Competing for Business vs. “Shadow IT”

      As I begin to sink my teeth into the realities of IT Transformation and the operational change to IT-as-a-Service (ITaaS), it’s becoming shockingly clear that adoption challenges aren't technology issues.

      Although debate continues over what cloud computing means, clarity is beginning to take shape as public/commodity cloud, private cloud, and hybrid cloud models evolve.

      So if we now know how to build clouds, where does that leave our IT operations? What of our IT organization, skill-sets and CIO’s? How does the technology map to enable lines of business? How will infrastructure change the game for the enterprise?

      IMHO, these are the questions we still must answer in order for “cloud” to be the next successful model for IT.

      Enter IT-as-a-Service

      Much the way that the internal combustion engine was the technology transformation catalyst for new forms of transportation and resulting commerce, cloud technology is transforming how information infrastructure impacts organizations and business models.  The Technology is the enabler of The Services.   But the automobile alone didn’t alter the landscape. It needed infrastructure, customization, and even rules for safe operation. Same goes for IT technology.

      EMC’s own IT department, led significantly by Jon Peirce, VP of EMC’s IT and Private Cloud Infrastructure & Services, thinks of the infrastructure relationship this way:
      IT as a Service is a delivery model leverages cloud infrastructure to enable business users to be more agile through readily-consumable IT services that have transparent prices and service levels.  While it is built on technology, ITaaS isn’t a technology.  It is an operational model that transforms our traditional approach to IT into a services-based world.
      Good timing.  Because there is another trend afoot:  The emerging external set of services – from public cloud service providers – to attempt to compete for the same attention. And dollars.

      Competing with “Shadow IT”

      John observes that IT’s days as a “monopoly” on technology are gone because
      • Users are global, mobile and social, with impatience for having information at their fingertips.  They’ll instantly use any alternative if it’s accessible. IT needs to plan for this – or have a competitive alternative
      • Access:  iPads and other edge devices are pervasive. The days of “IT-approved” access devices (the corporate-issued laptop) are numbered. Users will demand their own type/style of devices.
      • Public clouds are clamoring for developer’s attention and $.  Essentially developer with a credit card has the potential to release corporate IP to the outside.  IT needs a model to deal with this… and an attractive alternative.
      • SaaS alternatives are courting business managers.   And worse, IT isn’t necessarily informed when business managers use these services. Governance and access models need to be created, since there will always be external SaaS options.
      So, as users and LoB’s turn outside the company, this “Shadow IT” phenomenon arises : the use of external IT resources.  Appealing because of their on-demand nature, yet dangerous because of their security porosity, lack of usage governance, and lack of financial transparency/control.

      So IT finds itself in a competitive position vs. Shadow IT. 

      John then asks a question this way: If our internal line-of-business customers had a choice, would they use us (Enterprise IT)?  When IT was the only game in town, it didn’t matter what they charged or how good the service was because LoB’s had no choice.  But now there is. So we have an unavoidable imperative to be more competitive.

      Unavoidable Implications for the New IT

      As I think about IT Transformation to IT-as-a-Service-for-the-business, there are two implications that are inevitable and unavoidable.
      • IT cannot resist this transformation.  It will be forced upon them because of the use of, and competition from, Shadow IT - as well as from the increased demands from LoB.  So IT needs to be better-acquainted with the competition, their services, their SLA’s, their pricing.  Like any competitive situation, IT needs to do *external* benchmarking in all of these areas.   Because if they don’t their CFO will do it for them.
      • IT needs to think competitively.  IT orgs need to think in terms of winning the internal business by actively selling and creating demand for products (services). This is opposite from how they’ve been conditioned to behave – so IT has to develop basic business skills and even organizations to operate in a competitive business environment. These include product marketing, product management, financial management, and even competitive analysis and sales skills.
      This is an exciting time for IT. And while most are focusing on the technology, I urge you to look at the business and operational aspects of this change.  While any change can be scary at first, it also can provide a brand new set of competitive opportunities for the business.



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