|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
SYS-CON Events announced today Telecom Reseller has been named “Media Sponsor” of SYS-CON's 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Telecom Reseller reports on Unified Communications, UCaaS, BPaaS for enterprise and SMBs. They report extensively on both customer premises based solutions such as IP-PBX as well as cloud based and hosted platforms.
Aug. 31, 2016 09:30 AM EDT Reads: 1,084
Almost two-thirds of companies either have or soon will have IoT as the backbone of their business in 2016. However, IoT is far more complex than most firms expected. How can you not get trapped in the pitfalls? In his session at @ThingsExpo, Tony Shan, a renowned visionary and thought leader, will introduce a holistic method of IoTification, which is the process of IoTifying the existing technology and business models to adopt and leverage IoT. He will drill down to the components in this fra...
Aug. 31, 2016 09:00 AM EDT Reads: 505
Pulzze Systems was happy to participate in such a premier event and thankful to be receiving the winning investment and global network support from G-Startup Worldwide. It is an exciting time for Pulzze to showcase the effectiveness of innovative technologies and enable them to make the world smarter and better. The reputable contest is held to identify promising startups around the globe that are assured to change the world through their innovative products and disruptive technologies. There w...
Aug. 31, 2016 08:45 AM EDT Reads: 922
There is growing need for data-driven applications and the need for digital platforms to build these apps. In his session at 19th Cloud Expo, Muddu Sudhakar, VP and GM of Security & IoT at Splunk, will cover different PaaS solutions and Big Data platforms that are available to build applications. In addition, AI and machine learning are creating new requirements that developers need in the building of next-gen apps. The next-generation digital platforms have some of the past platform needs a...
Aug. 31, 2016 07:45 AM EDT Reads: 958
With so much going on in this space you could be forgiven for thinking you were always working with yesterday’s technologies. So much change, so quickly. What do you do if you have to build a solution from the ground up that is expected to live in the field for at least 5-10 years? This is the challenge we faced when we looked to refresh our existing 10-year-old custom hardware stack to measure the fullness of trash cans and compactors.
Aug. 31, 2016 02:45 AM EDT Reads: 1,898
The emerging Internet of Everything creates tremendous new opportunities for customer engagement and business model innovation. However, enterprises must overcome a number of critical challenges to bring these new solutions to market. In his session at @ThingsExpo, Michael Martin, CTO/CIO at nfrastructure, outlined these key challenges and recommended approaches for overcoming them to achieve speed and agility in the design, development and implementation of Internet of Everything solutions wi...
Aug. 31, 2016 02:15 AM EDT Reads: 2,295
Today we can collect lots and lots of performance data. We build beautiful dashboards and even have fancy query languages to access and transform the data. Still performance data is a secret language only a couple of people understand. The more business becomes digital the more stakeholders are interested in this data including how it relates to business. Some of these people have never used a monitoring tool before. They have a question on their mind like “How is my application doing” but no id...
Aug. 31, 2016 02:00 AM EDT Reads: 2,029
Cloud computing is being adopted in one form or another by 94% of enterprises today. Tens of billions of new devices are being connected to The Internet of Things. And Big Data is driving this bus. An exponential increase is expected in the amount of information being processed, managed, analyzed, and acted upon by enterprise IT. This amazing is not part of some distant future - it is happening today. One report shows a 650% increase in enterprise data by 2020. Other estimates are even higher....
Aug. 31, 2016 01:45 AM EDT Reads: 3,114
Smart Cities are here to stay, but for their promise to be delivered, the data they produce must not be put in new siloes. In his session at @ThingsExpo, Mathias Herberts, Co-founder and CTO of Cityzen Data, will deep dive into best practices that will ensure a successful smart city journey.
Aug. 31, 2016 01:00 AM EDT Reads: 1,715
Identity is in everything and customers are looking to their providers to ensure the security of their identities, transactions and data. With the increased reliance on cloud-based services, service providers must build security and trust into their offerings, adding value to customers and improving the user experience. Making identity, security and privacy easy for customers provides a unique advantage over the competition.
Aug. 30, 2016 08:15 PM EDT Reads: 2,501
SYS-CON Events announced today that 910Telecom will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Housed in the classic Denver Gas & Electric Building, 910 15th St., 910Telecom is a carrier-neutral telecom hotel located in the heart of Denver. Adjacent to CenturyLink, AT&T, and Denver Main, 910Telecom offers connectivity to all major carriers, Internet service providers, Internet backbones and ...
Aug. 30, 2016 08:00 PM EDT Reads: 2,048
SYS-CON Events announced today that Pulzze Systems will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Pulzze Systems, Inc. provides infrastructure products for the Internet of Things to enable any connected device and system to carry out matched operations without programming. For more information, visit http://www.pulzzesystems.com.
Aug. 30, 2016 07:15 PM EDT Reads: 428
Data is an unusual currency; it is not restricted by the same transactional limitations as money or people. In fact, the more that you leverage your data across multiple business use cases, the more valuable it becomes to the organization. And the same can be said about the organization’s analytics. In his session at 19th Cloud Expo, Bill Schmarzo, CTO for the Big Data Practice at EMC, will introduce a methodology for capturing, enriching and sharing data (and analytics) across the organizati...
Aug. 30, 2016 06:15 PM EDT Reads: 441
Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 19th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago. All major researchers estimate there will be tens of billions devices - comp...
Aug. 30, 2016 03:30 PM EDT Reads: 3,803
SYS-CON Events announced today that Adobe has been named “Bronze Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York, New York. Adobe is changing the world though digital experiences. Adobe helps customers develop and deliver high-impact experiences that differentiate brands, build loyalty, and drive revenue across every screen, including smartphones, computers, tablets and TVs. Adobe content solutions are used daily by millions of co...
Aug. 30, 2016 02:00 PM EDT Reads: 3,848
Why do your mobile transformations need to happen today? Mobile is the strategy that enterprise transformation centers on to drive customer engagement. In his general session at @ThingsExpo, Roger Woods, Director, Mobile Product & Strategy – Adobe Marketing Cloud, covered key IoT and mobile trends that are forcing mobile transformation, key components of a solid mobile strategy and explored how brands are effectively driving mobile change throughout the enterprise.
Aug. 30, 2016 01:45 PM EDT Reads: 753
Data is the fuel that drives the machine learning algorithmic engines and ultimately provides the business value. In his session at Cloud Expo, Ed Featherston, a director and senior enterprise architect at Collaborative Consulting, will discuss the key considerations around quality, volume, timeliness, and pedigree that must be dealt with in order to properly fuel that engine.
Aug. 30, 2016 01:15 PM EDT Reads: 2,089
19th Cloud Expo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy. Meanwhile, 94% of enterpri...
Aug. 30, 2016 01:00 PM EDT Reads: 3,257
DevOps at Cloud Expo, taking place Nov 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 19th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long dev...
Aug. 29, 2016 10:00 PM EDT Reads: 2,537
The 19th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Digital Transformation, Microservices and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportuni...
Aug. 28, 2016 10:30 PM EDT Reads: 4,115