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Cloud Computing Exposes the Duality Between IT and Business Transformation
The complex dual relationship

By: Dana Gardner

This BriefingsDirect thought leadership interview comes in conjunction with The Open Group Conference this month in San Francisco.

The conference will focus on how IT and enterprise architecture support enterprise transformation. Speakers in conference events will also explore the latest in service oriented architecture (SOA), cloud computing, and security.

We’re now joined by one of the main speakers, Andy Mulholland, the Global Chief Technology Officer and Corporate Vice President at Capgemini. In 2009, Andy was voted one of the top 25 most influential CTOs in the world by InfoWorld. And in 2010, his CTO Blog was voted best blog for business managers and CIOs for the third year running by Computer Weekly.

Capgemini has published a white paper on cloud computing. It draws distinctions between what cloud means to IT, and what it means to business -- while examining the complex dual relationship between the two.

As a lead-in to his Open Group conference presentation on the transformed enterprise, Andy draws on the paper and further drills down on one of the decade’s hottest technology and business trends, cloud computing, and how it impacts business and IT. The interview is moderated by Dana Gardner, Principal Analyst at Interarbor Solutions. [Disclosure: The Open Group is a sponsor of BriefingsDirect podcasts.]

Here are some excerpts:

Gardner: Why do business people think they have a revolution on their hands, while IT people look cloud computing as an evolution of infrastructure efficiency?

Mulholland: We define the role of IT and give it the responsibility and the accountability in the business in a way that is quite strongly related to internal practice. It’s all about how we manage the company’s transactions, how we reduce the cost, how we automate business process, and generally try to make our company a more efficient internal operator.

When you look at cloud computing through that set of lenses, you’re going to see ... the technologies from cloud computing, principally virtualization, [as] ways to improve how you deliver the current server-centric, application-centric environment.

However, business people ... reflect on it in terms of the change in society and the business world, which we all ought to recognize because that is our world, around the way we choose what we buy, how we choose to do business with people, how we search more, and how we’ve even changed that attitude.

Changed our ways

There's a whole list of things that we simply just don’t do anymore because we’ve changed the way we choose to buy a book, the way we choose and listen to music and lots of other things.

So we see this as a revolution in the market or, more particularly, a revolution in how cloud can serve in the market, because everybody uses some form of technology.

So then the question is not the role of the IT department and the enterprise -- it’s the role technology should be playing in their extended enterprise in doing business.

Gardner: What do we need to start doing differently?

Mulholland: Let’s go to a conversation this morning with a client. It’s always interesting to touch reality. This particular client is looking at the front end of a complex ecosystem around travel, and was asked this standard question by our account director: Do you have a business case for the work we’re discussing?

The reply from the CEO is very interesting. He fixed him with a very cold glare and he said, "If you were able to have 20 percent more billable hours without increasing your cost structure, would you be bothered to even think about the business case?"

The answer in that particular case was they were talking about 10,000 more travel instances or more a year -- with no increase in their cost structure. In other words, their whole idea was there was nothing to do with cost in it. Their argument was in revenue increase, market share increase, and they thought that they would make better margins, because it would actually decrease their cost base or spread it more widely.

That's the whole purpose of this revolution and that's the purpose the business schools are always pushing, when they talk about innovative business models. It means innovate your business model to look at the market again from the perspective of getting into new markets, getting increased revenue, and maybe designing things that make more money.

Using technology externally

We're always hooked on this idea that we’ve used technology very successfully internally, but now we should be asking the question about how we’re using technology externally when the population as a whole uses that as their primary method of deciding what they’re going to buy, how they’re going to buy it, when they’re going to buy it, and lots of other questions.

... A popular book recently has been The Power of Pull, and the idea is that we’re really seeing a decentralization of the front office in order to respond to and follow the market and the opportunities and the events in very different ways.

That was a very clear business transformation in the way we do business, the way we organize our business, and our business models.



The Power of Pull says that I do what my market is asking me and I design business process or capabilities to be rapidly orchestrated through the front office around where things want to go, and I have linkage points, application programming interface (API) points, where I take anything significant and transfer it back.

But the real challenge is -- and it was put to me today in the client discussion -- that their business was designed around 1970 computer systems, augmented slowly around that, and they still felt that. Today, their market and their expectations of the industry that they're in were that they would be designed around the way people were using their products and services and the events and that they had to make that change.

To do that, they're transformed in the organization, and that's where we start to spot the difference. We start to spot the idea that your own staff, your customers, and other suppliers are all working externally in information, process, and services accessible to all on an Internet market or architecture.

So when we talk about business architecture, it’s as relevant today as it ever was in terms of interpreting a business.

Set of methodologies

But when we start talking about architecture, The Open Group Architectural Framework (TOGAF) is a set of methodologies on the IT side -- the closed-coupled state for a designed set of principles to client-server type systems. In this new model, when we talk about clouds, mobility, and people traveling around and connecting by wireless, etc., we have a stateless loosely coupled environment.

The whole purpose of The Open Group is, in fact, to help devise new ways for being able to architect methods to deliver that. That's what stands behind the phrase, "a transformed enterprise."

... If we go back to the basic mission of The Open Group, which is boundarylessness of this information flow, the boundary has previously been defined by a computer system updating another computer system in another company around traditional IT type procedural business flow.

Now, we’re talking about the idea that the information flow is around an ecosystem in an unstructured way. Not a structured file-to-file type transfer, not a structured architecture of who does what, when, and how, but the whole change model in this is unstructured.
Gardner: It's important to point out here, Andy, that the stakes are relatively high. Who in the organization can be the change agent that can make that leap between the duality view of cloud that IT has, and these business opportunists?

Mulholland: The CEOs are quite noticeably reading the right articles, hearing the right information from business schools, etc., and they're getting this picture that they're going to have new business models and new capabilities.

So the drive end is not hard. The problem that is usually encountered is that the IT department’s definition and role interferes with them being able to play the role they want.

What we're actually looking for is the idea that IT, as we define it today, is some place else. You have to accept that it exists, it will exist, and it’s hugely important. So please don’t take those principles and try to apply them outside.

The real question here is when you find those people who are doing the work outside -- and I've yet to find any company where it hasn’t been the case -- and the question should be how can we actually encourage and manage that innovation sensibly and successfully?

What I mean by that is that if everybody goes off and does their own thing, once again, we'll end up with a broken company. Why? Because their whole purpose as an enterprises is to leverage success rapidly. If someone is very successful over there, you really need to know, and you need to leverage that again as rapidly as you can to run the rest of the organization. If it doesn’t work, you need to stop it quickly.

Changing roles

I
n models of the capabilities of that, the question is where is the government structure? So we hear titles like Chief Innovation Officer, again, slightly surprising how it may come up. But we see the model coming both ways. There are reforming CIOs for sure, who have recognized this and are changing their role and position accordingly, sometimes formally, sometimes informally.

The other way around, there are people coming from other parts of the business, taking the title and driving them. I’ve seen Chief Strategy Officers taking the role. I’ve seen the head of sales and marketing taking the role.

Certainly, recognizing the technology possibilities should be coming from the direction of the technology capabilities within the current IT department. The capability of what that means might be coming differently. So it’s a very interesting balance at the moment, and we don’t know quite the right answer.

What I do know is that it’s happening, and the quick-witted CIOs are understanding that it’s a huge opportunity for them to fix their role and embrace a new area, and a new sense of value that they can bring to their organization.

Gardner: Returning to the upcoming Capgemini white paper, it adds a sense of urgency at the end on how to get started. It suggests that you appoint a leader, but a leader first for the inside-out element of cloud and transformation and then a second leader, a separate leader perhaps, for that outside-in or reflecting the business transformation and the opportunity for what’s going on in the external business and markets. It also suggests a strategic road map that involves both business and technology, and then it suggests getting a pilot going.

How does this transition become something that you can manage?

Mulholland: The question is do you know who is responsible. If you don’t, you'd better figure out how you're going to make someone responsible, because in any situation, someone has to be deciding what we're going to do and how we're going to do it.

No business can survive by going off in half-a-dozen directions at once. You won't have the money. You won't have the brand. You won't have anything you’d like.



Having defined that, there are very different business drivers, as well as different technology drivers, between the two. Clearly, whoever takes those roles will reflect a very different way that they will have to run that element. So a duality is recognized in that comment.

On the other hand, no business can survive by going off in half-a-dozen directions at once. You won't have the money. You won't have the brand. You won't have anything you’d like. It's simply not feasible.

So, the object of the strategic roadmap is to reaffirm the idea of what kind of business we're trying to be and do. That’s the glimpse of what we want to achieve.

There has to be a strategy. Otherwise, you’ll end up with way too much decentralization and people making up their own version of the strategy, which they can fairly easily do and fairly easily mount from someone else’s cloud to go and do it today.

So the purpose of the duality is to make sure that the two roles, the two different groups of technology, the two different capabilities they reflect to the organization, are properly addressed, properly managed, and properly have a key authority figure in charge of them.

Enablement model

T
he business strategy is to make sure that the business knows how the enablement model that these two offer them is capable of being directed to where the shareholders will make money out of


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About Dana Gardner
At Interarbor Solutions, we create the analysis and in-depth podcasts on enterprise software and cloud trends that help fuel the social media revolution. As a veteran IT analyst, Dana Gardner moderates discussions and interviews get to the meat of the hottest technology topics. We define and forecast the business productivity effects of enterprise infrastructure, SOA and cloud advances. Our social media vehicles become conversational platforms, powerfully distributed via the BriefingsDirect Network of online media partners like ZDNet and IT-Director.com. As founder and principal analyst at Interarbor Solutions, Dana Gardner created BriefingsDirect to give online readers and listeners in-depth and direct access to the brightest thought leaders on IT. Our twice-monthly BriefingsDirect Analyst Insights Edition podcasts examine the latest IT news with a panel of analysts and guests. Our sponsored discussions provide a unique, deep-dive focus on specific industry problems and the latest solutions. This podcast equivalent of an analyst briefing session -- made available as a podcast/transcript/blog to any interested viewer and search engine seeker -- breaks the mold on closed knowledge. These informational podcasts jump-start conversational evangelism, drive traffic to lead generation campaigns, and produce strong SEO returns. Interarbor Solutions provides fresh and creative thinking on IT, SOA, cloud and social media strategies based on the power of thoughtful content, made freely and easily available to proactive seekers of insights and information. As a result, marketers and branding professionals can communicate inexpensively with self-qualifiying readers/listeners in discreet market segments. BriefingsDirect podcasts hosted by Dana Gardner: Full turnkey planning, moderatiing, producing, hosting, and distribution via blogs and IT media partners of essential IT knowledge and understanding.

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Ulitzer.com announced "the World's 30 most influential Cloud bloggers," who collectively generated more than 24 million Ulitzer page views. Ulitzer's annual "most influential Cloud bloggers" list was announced at Cloud Expo, which drew more delegates than all other Cloud-related events put together worldwide. "The world's 50 most influential Cloud bloggers 2010" list will be announced at the Cloud Expo 2010 East, which will take place April 19-21, 2010, at the Jacob Javitz Convention Center, in New York City, with more than 5,000 expected to attend.
What Is Cloud Computing?
Cloud computing is becoming one of the next industry buzz words. It joins the ranks of terms including: grid computing, utility computing, virtualization, clustering, etc. Cloud computing overlaps some of the concepts of distributed, grid and utility computing, however it does have its own meaning if contextually used correctly. The conceptual overlap is partly due to technology changes, usages and implementations over the years. Trends in usage of the terms from Google searches shows Cloud Computing is a relatively new term introduced in the past year. There has also been a decline in general interest of Grid, Utility and Distributed computing. Likely they will be around in usage for quit a while to come. But Cloud computing has become the new buzz word driven largely by marketing and service offerings from big corporate players like Google, IBM and Amazon.
Cloud Expo, Inc. Announces Cloud Expo 2012 New York Venue
SYS-CON Events announced today that Cloud Expo 2012 New York, the 10th International Cloud Computing Conference & Expo, will take place June 11-14, 2012, at the Javits Center in New York City. The International Cloud Computing Conference & Expo series is the world's leading Cloud-focused event and is held three times a year, in New York, Silicon Valley and in Europe. Over 400 corporate sponsors and 20,000 industry professionals have participated in Cloud Expo since its inception, more than all other Cloud-related events put together. "10th Cloud Expo is trending to be both the biggest ever and the best-attended event in the international Cloud Expo series to date, so it is only natural that we should be holding it in the biggest and best conference venue anywhere on the East Coast, the Jacob K. Javits Convention Center," stated Carmen Gonzalez, CEO of Cloud Expo. "If you are not at Cloud Expo New York, June 11-14, at the Javits Center, then you risk not getting the relevant parts of your IT infrastructure into the Cloud in time."
Cloud Expo New York: The Growing Big Data Tools Landscape
Hadoop, MapReduce, Hive, Hbase, Lucene, Solr? The only thing growing faster than enterprise data these days is the landscape of big data tools. These tools, which are designed to help organizations turn big data into opportunities, are gaining deeper insight into massive volumes of information. A recent Gartner report predicts that enterprise data will increase by 650% over the next five years, which means that the time is now for IT decision makers to determine which big data tools are the best - and most cost-effective - for their organization.
Cloud Expo, Inc. Registers Worldwide Cloud Expo (TM) Trademark
Cloud Expo, Cloud Expo East, Cloud Expo West, Cloud Expo Silicon Valley, Cloud Expo Europe, Cloud Expo Tokyo, Cloud Expo Prague, Cloud Expo Hong Kong, Cloud Expo Sao Paolo are trademarks and /or registered trademarks (USPTO serial number 85009040) of Cloud Expo, Inc.
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SYS-CON's Cloud Expo, held each year in California, New York, Prague, Tokyo, and Hong Kong is the world’s leading Cloud event in its 4th year, larger than all other Cloud events put together. For sponsorship, exhibit opportunites and show prospectus, please contact Carmen Gonzalez, carmen (at) sys-con.com.

Cloud Expo TV from Times Square [Click To View]

Who Should Attend?
Senior Technologists including CIOs, CTOs, VPs of technology, IT directors and managers, network and storage managers, network engineers, enterprise architects, communications and networking specialists, directors of infrastructure Business Executives including CEOs, CMOs, CIOs, presidents, VPs, directors, business development; product and purchasing managers.


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Cloud Computing Journal
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Cloud Expo Show Guide
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The World's 30 Most influential Cloud Bloggers
Cloud Expo on Ulitzer
1
Dustin Amrhein 11 Kevin Hoffman 21 Greg O'Connor
2
Ezhil Babaraj 12 Alin Irimie 22 Maureen O'Gara
3
Tony Bishop 13 Kevin Jackson 23 Mark O'Neill
4
Reuven Cohen 14 Fuat Kircaali 24 Bill Roth
5
Ernest de Leon 15 David Linthicum 25 Ellen Rubin
6
David Dean 16 Lori MacVittie 26 John Savageau
7
Ray DePena 17 Bill McColl 27 Michael Sheehan
8
Dana Gardner 18 Paul Miller 28 Roman Stanek
9
John Gauntt 19 Louis Naugès 29 John Treadway
10
Jeremy Geelan 20 Greg Ness 30 Alan Williamson

The World's Most Influential Blogs
The Cool (Or Is It Hot?) New SATA Spec for SSD
The IT Dog is waggin’ his tail today with this one. I love progress and the SSD revolution is certainly pushing the storage industry forward on many fronts. New products with SSD in every segment of the IT data chain from the server side SSD to SSD raid storage. SSD capabilities has so radically ...
If you believe that you've had to learn more about the safe online operation and ongoing management of your PC than you ever wanted to know, then you'll be pleased to discover that there's relief on the horizon. According to the latest market study by Gartner, the reign of the personal computer is c...
Taking advantage of cloud-hosted resources does not require forklift re-architecture of the data center. That may sound nearly heretical but that’s the truth, and I’m not talking about just SaaS which, of course, has never required anything more than an Internet connection to “integrate” into the da...
Complying with PCI DSS – Part 1: Build and Maintain a Secure Network
According to the PCI SSC, there are 12 PCI DSS requirements that satisfy a variety of security goals. Areas of focus include building and maintaining a secure network, protecting stored cardholder data, maintaining a vulnerability management program, implementing strong access control measures, reg...
Cloud Computing in China with Intel's Billy Cox
Chatting with Intel's Billy Cox outside Olympic Park in Beijing. We discuss the cloud computing marketing in China.
If you have been following me regularly then you would know that I maintain that charges for cloud services are not coming down in proportion to the routine reduction of hardware cost. So, let us examine in Amazon has reversed the trend with its latest announcement of price reduction. On 6th March, ...
Beyond the Walls of the Enterprise
Most in IT understand that mobile applications are unique. In terms of development, delivery, and management things just are not quite the same as compared to your typical enterprise application. There are many reasons for these differences including new and different programming models and language...
Architecting for the Cloud Using Amazon Web Services
Using Amazon web services for elasticity and scale to build cloud applications. Traditional IT environments that are built using physical servers can only scale and grow by buying new hardware and software and taking time to install and rack the hardware, configure the software and the application....
A cute idea that popped into my head that effectively describes the main dynamic of the change occuring within the IT world, is the “small Big Data centre”, ie. The data centre is increasingly becoming Big Data oriented, not just in terms of reading data from apps like Hadoop, but of app...
Freedom vs. Control
No sooner had I posted BYOD–The Hottest Trend or Just the Hottest Term, last week than yet another BYOD survey hit the news. The full results will be released in a webinar tomorrow but SANS announced their First Annual Survey Results on Mobility Security. Last December, SANS launched its first ev...
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Past SYS-CON Events
    Cloud Expo East
cloudcomputingexpo
2010east.sys-con.com

 
    Virtualization Expo East
virtualizationconference
2010east.sys-con.com
    Cloud Expo West
cloudcomputingexpo
2009west.sys-con.com

 
    Virtualization Expo West
virtualizationconference
2009west.sys-con.com
    GovIT Expo
govitexpo.com
 
    Cloud Expo Europe
cloudexpoeurope2009.sys-con.com
 

Cloud Expo 2010 Allstar Conference Faculty

SARWAL
Oracle

COFFEE
Salesforce

KHAN
Sybase

BISHOP
Adaptivity

MALCOLM
Abiquo

KHALIDI
Microsoft

RILEY
AWS

AZUA
IBM

BARRETO
Intel

CHAKRAVARTY
Novell

CRANDELL
RightScale

GAUVIN
Virtual Ark

GROSS
Unisys

SCHALK
Google

YEN
Juniper Networks

WILLOUGHBY
Compuware

What The Enterprise IT World Says About Cloud Expo
 
"We had extremely positive feedback from both customers and prospects that attended the show and saw live demos of NaviSite's enterprise cloud based services."
  –William Toll
Sr. Director, Marketing & Strategic Alliances
Navisite
 


 
"More and better leads than ever expected! I have 4-6 follow ups personally."
  –Richard Wellner
Chief Scientist
Univa UD
 


 
"Good crowd, good questions. The event looked very successful."
  –Simon Crosby
CTO
Citrix Systems
 


 
"Great conference and group of speakers, interesting timely announcements, and awesome networking."
  –Ricardo Sanchez
Software Architect
Myriadtech