|By Jason Bloomberg||
|April 27, 2013 02:00 PM EDT||
In my role as a globetrotting Cloud consultant, I continue to be amazed at how many executives, both in IT and in the lines of business, still favor Private Clouds over Public. These managers are perfectly happy to pour money into newfangled data centers (sorry, “Private Clouds”), even though Amazon Web Services (AWS) and its brethren are reinventing the entire world of IT. Their reason? Sometimes they believe Private Clouds will save them money over the Public Cloud option. No such luck: Private Clouds are dreadfully expensive to build, staff, and manage, while Public Cloud services continue to fall in price. Others point to security as the problem. No again. OK, maybe Private Clouds will give us sufficient elasticity? Probably not. Go through all the arguments, however, and they’re still dead set on building that Private Cloud. What gives? The true reason for this stubbornness, of course, is the battle over control.
Thinking Like a Control Freak
IT executives in particular have always been control freaks. Our IT environments have been filled with fragile, flaky gear for so long that we figure the only way to run the IT shop is to control everything, grudgingly doling out bits of functionality and information to business users, but only when they ask nicely.
But this old mainframe reality has been fading for years now. The move to client/server to n-tier to the Internet and now to the Cloud are all exercises in increasingly distributed computing, with special emphasis on the distributed. As in distributed control.
The technology powers that be in the enterprise have been fighting this trend kicking and screaming, of course. But they’ve been fighting a losing battle. We saw the tide turn in the first-generation SOA days of the 2000s, when the IT establishment invested tried to implement SOA by buying ESBs, centralized pieces of middleware that purported to run the organization. But too many enterprises ended up with multiple ESBs and other pieces of middleware, since of course every manager in every department silo needs their own, because they all crave control. So the doomed SOA effort became a futile exercise in middleware-for-your-middleware, as the desired agility benefit sank beneath waves of rats-nest complexity.
What’s really going on here? Why do executives crave control so badly? Two reasons: risk mitigation and differentiation. If that piece of technology is outside your control, then perhaps bad things will happen: security breaches, regulatory compliance violations, or performance issues, to name the scariest. The problem is, maintaining control doesn’t necessary reduce such risks. But if you’re responsible for managing the risks, then the natural reaction is to crave control.
Managers also believe that whatever it is they’re doing in their silo is special and different in some way. So there’s no way they can leverage that shared piece of middleware or shared SOA-based Services or multitenant Cloud. If they did, they wouldn’t be special any more. Having a differentiated offering is essential to any viable market strategy, after all. So clearly my technology has to be different from your technology!
Chaos vs. Control
The Cloud, as you might expect, shakes up both these considerations, because the Cloud separates responsibility from control in ways that we’ve never seen before. Every manager knows that these two priorities often go hand in hand, and under normal circumstances, we prefer them to go together, because the last thing we want is responsibility without control: the recipe for becoming the scapegoat, after all. With the Cloud, however, we can maintain control while delegating responsibility to the Cloud Service Provider (CSP). The CSP is responsible for ensuring the operational environment is working properly, including the automated management and user-driven provisioning and configuration that differentiate Cloud Computing from virtualized hosting. However, the CSP has delegated control over each customer environment to that customer.
By turning around this control vs. responsibility equation, we’ve placed the CSP into the scapegoat position. As long as we have an iron-clad Service-Level Agreement with our CSP, we can trust them to take responsibility for our operational environments, and if anything goes wrong, we can hold them responsible. But the control over those environments remains with us, the customer. Once enterprise executives realize this new world order, they will run as fast as they can away from building Private Clouds. After all, if you can maintain control while delegating responsibility, why would you ever want responsibility? Responsibility gets people fired, after all.
Shifting responsibility to the CSP also helps to resolve the regulatory compliance roadblock that so many executives point to as the reason to select Private over Public Cloud. A combination of a properly responsible CSP combined with a sufficiently detailed SLA can go a long way toward indemnifying organizations against compliance breach risks. Remember, regulations rarely if ever specify how you must comply, only that you must. It’s up to you (and your lawyers) to decide on the how. As long as you’re diligent, conscientious, and follow established best practice, you’ve mitigated the bulk of your noncompliance risk. The CSPs are chomping at the bit to take this responsibility, so the smart risk mitigation strategy is shifting toward the Public Cloud.
The Price of Differentiation
The second threat to centralized control of IT is the business driver toward differentiation. Whatever our department or business is doing is special and different, and thus our infrastructure as well as our application environment must be unique as well. This principle is always true up to a point, which is why executives love to cling to it like a floating log in a vast sea of change. But just where that point falls continues to shift, and has shifted further than many people realize.
No enterprise would dream of calling a computer chip company and asking them to fabricate a custom processor for general business needs. What about a server? Unlikely, but perhaps. What about your core business applications, like finance, human resources, or customer relationship management (CRM)? Somewhat more likely. How about applications that provide capabilities that differentiate you in the marketplace? OK, now we’re talking.
In other words, virtually no enterprise has any rational motivation to specify custom infrastructure. Today’s Infrastructure-as-a-Service (IaaS) will do, especially considering how many configuration choices are available today: processor speed, operating system (as long as you want Windows or a flavor of Linux), memory, storage, and network are all user configurable and provisionable. Furthermore, there’s no reason to customize your dev, test, or deployment environments, so might as well use a Platform-as-a-Service (PaaS) offering.
But what about the applications? For non-strategic apps like CRM, might as well use Software-as-a-Service (SaaS) like Salesforce. No executives in their right mind would say that their customer relationship needs are so unique that they should code their own CRM system. So, what about those strategic apps, the ones that offer our differentiated capabilities or information to our customers? If an existing SaaS app won’t do, well, that’s what PaaS and IaaS are for: building and hosting our custom apps for us, respectively.
Still not convinced? Consider the competitive risk: the risk of spending too much money on unnecessary capabilities. While your competition is leveraging the Cloud, focusing their efforts on their true strategic differentiation in the market and saving buckets of dough everywhere else, you’re busy pouring cash into building yet another widget that might as well be the same widget you can get much more cheaply in the Cloud. If doing something unique and different doesn’t help the bottom line, then you’re simply wasting money. The asteroid is almost here. Which would you rather be, a dinosaur or a mammal?
The ZapThink Take
Outsourcing commodity capabilities to the low-cost provider while focusing your strategic value-add on customized offerings is an oft-repeated pattern in the world of business, but it hasn’t really taken hold in the world of IT until the rise of Cloud Computing. The reason it’s taken so long for the techies is because we’ve never been able to separate control and responsibility in the past as well as we can today. Before the Cloud, if we wanted to outsource one, then the other went along for the ride. Any enterprise that outsourced their entire IT operation went down this road. Sure, your technology becomes somebody else’s responsibility, but you end up giving up control as well.
Perhaps the greatest challenge with maintaining such control with the Cloud is that it raises the stakes on governance, leading to what we call next-generation governance in our ZapThink 2020 Poster as well as my new book, The Agile Architecture Revolution. The Cloud’s automated self-service represents powerful tools in the hands of people across our organization. Without a proactive, automated approach to governance, we risk running off the rails. Such issues are endemic in today’s technology environments: from Bring-Your-Own-Device (BYOD) challenges to SOA governance to rogue Clouds, we must learn how to maintain control while maintaining the agility benefit such powerful technology dangles in front of us. But until we learn to delegate responsibility for the underlying technology to Public Cloud Providers, we’ll never be able to maintain control cost-effectively while maintaining our competitiveness.
Image source: Diego David Garcia
With an estimated 50 billion devices connected to the Internet by 2020, several industries will begin to expand their capabilities for retaining end point data at the edge to better utilize the range of data types and sheer volume of M2M data generated by the Internet of Things. In his session at @ThingsExpo, Don DeLoach, CEO and President of Infobright, will discuss the infrastructures businesses will need to implement to handle this explosion of data by providing specific use cases for filte...
Feb. 12, 2016 01:00 PM EST Reads: 224
SYS-CON Events announced today that Avere Systems, a leading provider of enterprise storage for the hybrid cloud, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Avere delivers a more modern architectural approach to storage that doesn’t require the overprovisioning of storage capacity to achieve performance, overspending on expensive storage media for inactive data or the overbuilding of data centers ...
Feb. 12, 2016 12:30 PM EST Reads: 103
SYS-CON Events announced today that Pythian, a global IT services company specializing in helping companies adopt disruptive technologies to optimize revenue-generating systems, has been named “Bronze Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2015 at the Javits Center in New York, New York. Founded in 1997, Pythian is a global IT services company that helps companies compete by adopting disruptive technologies such as cloud, Big Data, advanced analytics, and DevO...
Feb. 12, 2016 12:30 PM EST Reads: 258
SYS-CON Events announced today that Alert Logic, Inc., the leading provider of Security-as-a-Service solutions for the cloud, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Alert Logic, Inc., provides Security-as-a-Service for on-premises, cloud, and hybrid infrastructures, delivering deep security insight and continuous protection for customers at a lower cost than traditional security solutions. Ful...
Feb. 12, 2016 11:45 AM EST Reads: 446
Fortunately, meaningful and tangible business cases for IoT are plentiful in a broad array of industries and vertical markets. These range from simple warranty cost reduction for capital intensive assets, to minimizing downtime for vital business tools, to creating feedback loops improving product design, to improving and enhancing enterprise customer experiences. All of these business cases, which will be briefly explored in this session, hinge on cost effectively extracting relevant data from ...
Feb. 12, 2016 11:15 AM EST Reads: 138
SYS-CON Events announced today that iDevices®, the preeminent brand in the connected home industry, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. iDevices, the preeminent brand in the connected home industry, has a growing line of HomeKit-enabled products available at the largest retailers worldwide. Through the “Designed with iDevices” co-development program and its custom-built IoT Cloud Infrastruc...
Feb. 12, 2016 10:00 AM EST Reads: 124
There will be new vendors providing applications, middleware, and connected devices to support the thriving IoT ecosystem. This essentially means that electronic device manufacturers will also be in the software business. Many will be new to building embedded software or robust software. This creates an increased importance on software quality, particularly within the Industrial Internet of Things where business-critical applications are becoming dependent on products controlled by software. Qua...
Feb. 12, 2016 09:51 AM EST
As enterprises work to take advantage of Big Data technologies, they frequently become distracted by product-level decisions. In most new Big Data builds this approach is completely counter-productive: it presupposes tools that may not be a fit for development teams, forces IT to take on the burden of evaluating and maintaining unfamiliar technology, and represents a major up-front expense. In his session at @BigDataExpo at @ThingsExpo, Andrew Warfield, CTO and Co-Founder of Coho Data, will dis...
Feb. 12, 2016 09:30 AM EST Reads: 212
The Quantified Economy represents the total global addressable market (TAM) for IoT that, according to a recent IDC report, will grow to an unprecedented $1.3 trillion by 2019. With this the third wave of the Internet-global proliferation of connected devices, appliances and sensors is poised to take off in 2016. In his session at @ThingsExpo, David McLauchlan, CEO and co-founder of Buddy Platform, will discuss how the ability to access and analyze the massive volume of streaming data from mil...
Feb. 12, 2016 09:00 AM EST
WebSocket is effectively a persistent and fat pipe that is compatible with a standard web infrastructure; a "TCP for the Web." If you think of WebSocket in this light, there are other more hugely interesting applications of WebSocket than just simply sending data to a browser. In his session at 18th Cloud Expo, Frank Greco, Director of Technology for Kaazing Corporation, will compare other modern web connectivity methods such as HTTP/2, HTTP Streaming, Server-Sent Events and new W3C event APIs ...
Feb. 12, 2016 09:00 AM EST
SYS-CON Events announced today that Men & Mice, the leading global provider of DNS, DHCP and IP address management overlay solutions, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. The Men & Mice Suite overlay solution is already known for its powerful application in heterogeneous operating environments, enabling enterprises to scale without fuss. Building on a solid range of diverse platform support,...
Feb. 12, 2016 06:00 AM EST Reads: 251
Eighty percent of a data scientist’s time is spent gathering and cleaning up data, and 80% of all data is unstructured and almost never analyzed. Cognitive computing, in combination with Big Data, is changing the equation by creating data reservoirs and using natural language processing to enable analysis of unstructured data sources. This is impacting every aspect of the analytics profession from how data is mined (and by whom) to how it is delivered. This is not some futuristic vision: it's ha...
Feb. 12, 2016 05:45 AM EST Reads: 460
Silver Spring Networks, Inc. (NYSE: SSNI) extended its Internet of Things technology platform with performance enhancements to Gen5 – its fifth generation critical infrastructure networking platform. Already delivering nearly 23 million devices on five continents as one of the leading networking providers in the market, Silver Spring announced it is doubling the maximum speed of its Gen5 network to up to 2.4 Mbps, increasing computational performance by 10x, supporting simultaneous mesh communic...
Feb. 12, 2016 05:00 AM EST
The cloud promises new levels of agility and cost-savings for Big Data, data warehousing and analytics. But it’s challenging to understand all the options – from IaaS and PaaS to newer services like HaaS (Hadoop as a Service) and BDaaS (Big Data as a Service). In her session at @BigDataExpo at @ThingsExpo, Hannah Smalltree, a director at Cazena, will provide an educational overview of emerging “as-a-service” options for Big Data in the cloud. This is critical background for IT and data profes...
Feb. 12, 2016 02:30 AM EST Reads: 230
With the Apple Watch making its way onto wrists all over the world, it’s only a matter of time before it becomes a staple in the workplace. In fact, Forrester reported that 68 percent of technology and business decision-makers characterize wearables as a top priority for 2015. Recognizing their business value early on, FinancialForce.com was the first to bring ERP to wearables, helping streamline communication across front and back office functions. In his session at @ThingsExpo, Kevin Roberts...
Feb. 12, 2016 12:45 AM EST Reads: 408
Cognitive Computing is becoming the foundation for a new generation of solutions that have the potential to transform business. Unlike traditional approaches to building solutions, a cognitive computing approach allows the data to help determine the way applications are designed. This contrasts with conventional software development that begins with defining logic based on the current way a business operates. In her session at 18th Cloud Expo, Judith S. Hurwitz, President and CEO of Hurwitz & ...
Feb. 12, 2016 12:00 AM EST Reads: 286
One of the bewildering things about DevOps is integrating the massive toolchain including the dozens of new tools that seem to crop up every year. Part of DevOps is Continuous Delivery and having a complex toolchain can add additional integration and setup to your developer environment. In his session at @DevOpsSummit at 18th Cloud Expo, Miko Matsumura, Chief Marketing Officer of Gradle Inc., will discuss which tools to use in a developer stack, how to provision the toolchain to minimize onboa...
Feb. 11, 2016 10:00 PM EST Reads: 126
SYS-CON Events announced today that Interoute, owner-operator of one of Europe's largest networks and a global cloud services platform, has been named “Bronze Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2015 at the Javits Center in New York, New York. Interoute is the owner-operator of one of Europe's largest networks and a global cloud services platform which encompasses 12 data centers, 14 virtual data centers and 31 colocation centers, with connections to 195 ad...
Feb. 11, 2016 03:45 PM EST Reads: 421
Join us at Cloud Expo | @ThingsExpo 2016 – June 7-9 at the Javits Center in New York City and November 1-3 at the Santa Clara Convention Center in Santa Clara, CA – and deliver your unique message in a way that is striking and unforgettable by taking advantage of SYS-CON's unmatched high-impact, result-driven event / media packages.
Feb. 11, 2016 01:45 PM EST
SYS-CON Events announced today that Commvault, a global leader in enterprise data protection and information management, has been named “Bronze Sponsor” of SYS-CON's 18th International Cloud Expo, which will take place on June 7–9, 2016, at the Javits Center in New York City, NY, and the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Commvault is a leading provider of data protection and information management...
Feb. 11, 2016 01:30 PM EST Reads: 445