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Is it a Game-Changing Moment? IT Says No & Business Says Yes!

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PCQ Bureau
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style="font-style: normal;">Andy

Mulholland, CTO,
color="#0000ff"> face="Verdana, sans-serif"> style="font-style: normal;">Capgemini face="Verdana, sans-serif"> style="font-weight: normal;">

As with all such statements

it's a too simplistic generalization, but it does sum up the

current mood which is a mixture of confusion as to whether the new

technologies of cloud, mobility, and big data in particular are, as

many in IT would say, an evolution of what we do today, or there is a

game-changing revolution in play as many in the business world seem

to think. If you are from the IT side then you may be surprised,

shocked even, to see how the business press is engaging with business

managers on how technology is a game-changer. No less a true business

magazine than The Economist has been running an online debate

entitled; 'Personal

Computing;

this house believes we are now in a post-PC world
' .

The leaders of the 'for'

and 'against' are two technology vendors, Citrix and Microsoft

respectively, and there is the first real clue about this topic.

Citrix is of course a thin client vendor, and Microsoft is still

heavily dependent on thick clients, meaning PCs, though to be fair

Microsoft does not try to deny the motion, it merely suggests that

the world will contain both. Because enterprise IT as we currently

understand it and use it is built on thick client, client-server

applications then it's a fair argument that we continue to need

PCs, but conversely the business people, whilst acknowledging the

need for enterprise IT, are looking to escape its model to take

advantage of new 'online' business solutions. Therefore,

solutions using Internet, Web, services on demand from clouds in a

mobility context of devices with wireless connectivity are all based

on thin clients.

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It's the term 'solutions'

that gives the real clue to answer the question of is this a true

game-change or not. Business managers use the term 'innovation'

to define a generation of new business models that allow them to

access and sell to their markets in new ways. To understand this best

either read Mark W Johnson's book Seizing the White Space

and see his definition of 19 different online business models, or at

least take a look at the ' href="http://www.seizingthewhitespace.com/news/business-model-innovation-articles">Seizing

the

White Space' website . The solutions

that they want to deploy are only possible because we have new

capabilities by using the new technologies together with different

development and deployment methods that radically change time and

costs. And that brings us back to the paying 'on demand' against

consumption both firmly allocating cost to business activities to

show their true profitability, and shifting from long-term capital

investment cycles to short-term operational expenditures.

All of which can be summed

up in the post I made about splitting these two separate activities

up and defining them as 'inside-out' for the role of existing IT,

and 'outside-in' for the role that business managers want

technology to play. A full explanation of this is on the CTO Blog,

which includes a link to the Capgemini point of view as to how this

changes solutions in the government sector, which can be used as a

comparison to other sectors in the href="http://www.capgemini.com/ctoblog/2011/10/outsidein-agile-methodology-radical-approach-mobility/">key

points

pretty easily.

So how do the bigger

technologies look different to the two sides?

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Big data from the

inside-out

IT side looks like the ability to use cheaper and more flexibly

available Mips from virtualization with enhanced storage to be able

to do better fine grained analysis on larger amounts of existing

internal structured data. Viewed from business managers using an

outside-in perspective it's the possibility to use previously

inaccessible data from online activities in 'real-time' to

support decision making around external opportunities probably driven

by the new generation of social CRM. It's the same with clouds;

inside-out IT sees clouds as technology to reduce cost and improve

the efficiency of operating the current application-centric data

center. The business manager sees clouds creating new environments in

which you can interact or liaise and work with your customers or

suppliers in ways that were simply not possible with closed and

proprietary IT applications.

Mobility is making existing

enterprise IT applications available on wireless devices under the IT

management inside-out view, whereas to the business manager it's

the capability to be liberated from the PC and internal IT, and use

all the new online capabilities whenever and wherever they choose.

All of which can be summed up in the terms 'consumer IT' and

'Bring your own', or 'BYO' devices meaning that the business

manager gets out of the governance straightjacket on IT and into the

rich online business world versus the IT management fears of such

devices being a dangerous weakness in the security governance model

of internal IT applications.

No wonder the two sides are

confused and in disagreement as to whether we are seeing an evolution

of IT capabilities or a game-changing revolution in business

capabilities to use technology. And this is not only an internal

issue either as the technology vendors are split along these lines

too. Apple, Google, Amazon and Salesforce.com are all clearly driving

and supporting the business managers with outside-in capabilities,

and some traditional vendors are clearly looking after their

traditional positioning with the IT department and the resulting

installed base and license income. But this is changing as Oracle at

Oracle OpenWorld introduced their Public Cloud and WebCenter suite of

capabilities aimed at the outside-in market with its own sales force.

SAP seems set to follow the same path with a preliminary announcement

a few weeks later, and others such as EMC also straddle both sides

with traditional IT storage systems as well as cloud storage for the

new markets.

In summary, the answer

is

that both the IT and business managers' views are correct, but only

from their individual and different perspectives. The real issue is

that there is a need to see each other's perspectives and grasp how

to deliver both evolutionary improvements to traditional IT justified

by cost and efficiency, as well as supporting and enabling a

revolutionary business use of technology in game-changing ways that

increase revenues, market share, customer satisfaction, etc — truly

the digital revolution of business!



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