Welcome!

Containers Expo Blog Authors: Craig Lowell, Elizabeth White, Liz McMillan, Greg Schulz, XebiaLabs Blog

Related Topics: @CloudExpo, Agile Computing

@CloudExpo: Blog Post

Cloud and the Consumerization of IT

The cloud gives the consumerization of IT a whole new meaning

The cloud essentially "consumerizes" all of IT, not just relatively unimportant bits like procuring personal hard- and software. This requires a whole rethinking of corporate IT, as the idea of any master design becomes unattainable. How can IT as a species survive this trend as it may render the education of a whole generation of IT-ers irrelevant? On the brighter side - it really caters for the talents of today's teenagers: consumption as a lifestyle.

The idea of consumerization - users being allowed to freely procure their own personal hard- and software - has been around for a while. But few CIOs and even less heads of IT Operations have embraced it. Other than some token adoption, where users could choose between an iPhone or a Blackberry or where users got a personal budget to order from the company supplied catalog of pre-approved hardware, we see little adoption of the concept. The idea is that users can go to any consumer store or webshop and order any gadget they like, be it an iPad, laptops, printer or smart phone and configure these basically while still in the store to access their corporate mail, intranet and company applications. The idea originated when people wanted to use their 24 inch HD pc with 4 processors and mega memory - all essential to enjoy modern home entertainment and video and far superior to company standard issue equipment- to also do some work.

Cloud computing now makes such a consumer approach also possible at the departmental level. Department selecting and using non corporate approved or endorsed SaaS based CRM applications are the most commonly used example. But more interesting are the cases where departments - tired of waiting for their turn in the never reducing application backlog of corporate IT - turned to a system integrator to build a custom cloud application to meet their immediate needs. Several system integrators indicate that they have more and more projects where no longer IT, but the business department, is their prime customer. Contracts, SLA's and even integrations are negotiated directly between the SI and the business department, in some cases IT is not even involved or aware.

Now this is not a new phenomenon. We saw the exact same thing when PCs and departmental servers were introduced. Departments went off on their own and bought "solutions" from vendors popping up like the proverbial poppy seeds and often disappearing just a quickly after (remember Datapoint, Wang, Digital? And those were the ones that lasted). Guess who the business expected to clean up (integrate) the mess they left behind? Yes, the same IT departments they bypassed in the first place. One may even argue that: if IT had not been so busy cleaning up this mess over the last 15 years, they would have had a much better chance at building an integrated solution that actually did meet business's need. I am not of that opinion. With ERP we got this chance (and the associated billions) and still did not manage to keep up with the requirements, some things are just too vast, complex or simply change to fast to be captured in any master design.


So back to consumerisation. Although the trend has been far from whole heartily embraced by most corporate IT, it is continuing. In my direct environment I see several people who, instead of plugging their laptop into the corporate network at the office, take a 3G network stick to work. For around 20 Euros a month this gives them better performance accessing the applications they care about, not to mention it gives them access to applications most corporate IT department do not care for, like facebook, twitter, etc. Question is off course, can they do their work like that? Don't they need all day, full time access to the aforementioned fully vertically integrated ERP system? The answer is No. First of all, the vertically integrated type of enterprise that ERP was intended for, no longer exist. Most corporations have taken to outsourcing distribution to DHL or TNT, employee travel to the likes of American Express, HR payroll and expenses to XYZ, etc. etc. The list goes on and on.

All these external service providers support these services with web based systems that can be accessed from anywhere, inside and outside the company firewall. At the same time, the remaining processes that occur in the corporate ERP system are so integrated that they hardly require any manual intervention from employees. Consequently employees don't need to spend their time doing data entry or even data updates or analysis on that system. Any remaining required interaction is facilitated by directly interfacing with the customer via the web shop or via other web based systems. One could say that the world moved from vertically integrated manufacturing corporations to supply chain connected extended enterprises.

The question I will address in my next post is how does the cloud enabling consumerisation for enterprise applications play a role in this and what this means for IT moving forward.


On the supply side of IT, it means applications are best delivered as easily consumerable services to employees and others (partners, customers, suppliers). One large European multinational is already delivering all their new applications as internet (so not intranet) applications. Meaning any application can be accessed from anywhere by simply entering a URL and doing proper authentication. Choosing which applications to provide internally is based on whether there are outside parties willing and capable to provide these services or whether the company can gain a distinct advantage by providing the service themselves.

When speaking about consuming services, one should try and think broader than just IT services. The head of distribution may be looking for a parcel tracking system, but when asking the CEO or the COO they are more likely to think of a service in terms of something a DHL or TNT delivers. Services such as warehousing, distribution, but also complaint tracking, returns and repairs, or even accounting, marketing and reselling, all including the associate IT parts of those services. It is the idea of everything as a services, but on steroids (XaaSoS). Please note that even when an organization decides to provide one of these services internally, they can still source the underlying infrastructure and even applications "as a service" externally (this last scenario strangely enough is what many an IT person seems to think of exclusively when discussing cloud computing).

On the demand side of IT the issue is an altogether other one. How do we warrant continuity, efficiency and compliance, in such a consumption oriented IT World. If it is every man (or department) for themself, how do we prevent suboptimisation, In fact , how do we even know what is going on in the first place. How do we know what services are being consumed. This is the new challenge, and it is very similar to what companies faced when they decided to not manufacture everything themselves anymore, abandoning vertical integration where it made sense and taking a "supply chain" approach. Cloud computing is in many aspects a similar movement, and also here a supply chain approach looks like the way to go.

Such a supply chain approach means thoroughly understanding both demand and supply, matching the two and making sure that the goods - or in this case services - reach the right audience at the right time (on demand). IT has invested a fair amount of time and effort in better ways and methodologies to understand demand. On the supply side, IT till now assumed they were the supplier. In that role they used industry analysts to classify the components required, such as hardware and software. In this new world they need to start thoroughly understanding the full services that are available on the market. An interesting effort worth mentioning here is the SMI (Service Measurement Index) an approach to classify cloud services co-initiated by my employer, CA technologies and lead by Carnegie Mellon University.

After having gained an understanding of both demand and supply, the remaining task is "connecting the dots". This sounds trivial but is an activity that analysts estimate becoming a multi-billion industry within just a few years. It includes non-trivial tasks like identifying which users are allowed to do which tasks in this now open environment and optimizing the processes by picking resources that have the lowest utilization and thus cost. Because going forward scarcity will determine price especially in the new cloud world (which resembles Adam Smith's idea of a perfect open market a lot closer than any internal IT department ever did or will do).

Now off course all of the above won't happen overnight. Many a reader (and with a little luck the author) will have retired by the time today's vertically integrated systems - many of which are several decades old and based on solid, reliable mainframes - will have become services that are brokered in an open cloud market. A couple of high profile outages may even prolong this a generation or two more. But long term I see no other way. Other markets (electricity, electronics, publishing and even healthcare) have taken or are taking the same path. It is the era of consumption.

PS Short term, however, the thing we (IT) probably need most is a new diagraming technique. Why? From the above it will be clear that - in such a consumerised world - architecture diagrams are a thing of the past. And an IT person without a diagram is like a fish without water . We need something that allows us to evolve our IT fins into feet and our IT chews into lungs, so we can transition from water to land and not become extinct in the process. One essential aspect will be that unlike pictures of clouds and very much like real clouds, the diagrams will need to be able to change dynamically, much like pictures in a Harry Potter movie (it's magic). Who has a suggestion for such a technique ?

[Editorial note: This blog originally was published at ITSMportal.com on May 31st , 2010]

Read the original blog entry...

Comments (0)

Share your thoughts on this story.

Add your comment
You must be signed in to add a comment. Sign-in | Register

In accordance with our Comment Policy, we encourage comments that are on topic, relevant and to-the-point. We will remove comments that include profanity, personal attacks, racial slurs, threats of violence, or other inappropriate material that violates our Terms and Conditions, and will block users who make repeated violations. We ask all readers to expect diversity of opinion and to treat one another with dignity and respect.


@ThingsExpo Stories
The best-practices for building IoT applications with Go Code that attendees can use to build their own IoT applications. In his session at @ThingsExpo, Indraneel Mitra, Senior Solutions Architect & Technology Evangelist at Cognizant, provided valuable information and resources for both novice and experienced developers on how to get started with IoT and Golang in a day. He also provided information on how to use Intel Arduino Kit, Go Robotics API and AWS IoT stack to build an application tha...
IoT generates lots of temporal data. But how do you unlock its value? You need to discover patterns that are repeatable in vast quantities of data, understand their meaning, and implement scalable monitoring across multiple data streams in order to monetize the discoveries and insights. Motif discovery and deep learning platforms are emerging to visualize sensor data, to search for patterns and to build application that can monitor real time streams efficiently. In his session at @ThingsExpo, ...
SYS-CON Events announced today that LeaseWeb USA, a cloud Infrastructure-as-a-Service (IaaS) provider, 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. LeaseWeb is one of the world's largest hosting brands. The company helps customers define, develop and deploy IT infrastructure tailored to their exact business needs, by combining various kinds cloud solutions.
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 ...
Big Data, cloud, analytics, contextual information, wearable tech, sensors, mobility, and WebRTC: together, these advances have created a perfect storm of technologies that are disrupting and transforming classic communications models and ecosystems. In his session at @ThingsExpo, Erik Perotti, Senior Manager of New Ventures on Plantronics’ Innovation team, provided an overview of this technological shift, including associated business and consumer communications impacts, and opportunities it ...
SYS-CON Events announced today that Venafi, the Immune System for the Internet™ and the leading provider of Next Generation Trust Protection, will exhibit at @DevOpsSummit at 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Venafi is the Immune System for the Internet™ that protects the foundation of all cybersecurity – cryptographic keys and digital certificates – so they can’t be misused by bad guys in attacks...
It’s 2016: buildings are smart, connected and the IoT is fundamentally altering how control and operating systems work and speak to each other. Platforms across the enterprise are networked via inexpensive sensors to collect massive amounts of data for analytics, information management, and insights that can be used to continuously improve operations. In his session at @ThingsExpo, Brian Chemel, Co-Founder and CTO of Digital Lumens, will explore: The benefits sensor-networked systems bring to ...
Manufacturers are embracing the Industrial Internet the same way consumers are leveraging Fitbits – to improve overall health and wellness. Both can provide consistent measurement, visibility, and suggest performance improvements customized to help reach goals. Fitbit users can view real-time data and make adjustments to increase their activity. In his session at @ThingsExpo, Mark Bernardo Professional Services Leader, Americas, at GE Digital, discussed how leveraging the Industrial Internet a...
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...
In addition to all the benefits, IoT is also bringing new kind of customer experience challenges - cars that unlock themselves, thermostats turning houses into saunas and baby video monitors broadcasting over the internet. This list can only increase because while IoT services should be intuitive and simple to use, the delivery ecosystem is a myriad of potential problems as IoT explodes complexity. So finding a performance issue is like finding the proverbial needle in the haystack.
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...
Large scale deployments present unique planning challenges, system commissioning hurdles between IT and OT and demand careful system hand-off orchestration. In his session at @ThingsExpo, Jeff Smith, Senior Director and a founding member of Incenergy, will discuss some of the key tactics to ensure delivery success based on his experience of the last two years deploying Industrial IoT systems across four continents.
The Internet of Things will challenge the status quo of how IT and development organizations operate. Or will it? Certainly the fog layer of IoT requires special insights about data ontology, security and transactional integrity. But the developmental challenges are the same: People, Process and Platform. In his session at @ThingsExpo, Craig Sproule, CEO of Metavine, demonstrated how to move beyond today's coding paradigm and shared the must-have mindsets for removing complexity from the develo...
SYS-CON Events announced today that MangoApps 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. MangoApps provides modern company intranets and team collaboration software, allowing workers to stay connected and productive from anywhere in the world and from any device.
IoT is rapidly changing the way enterprises are using data to improve business decision-making. In order to derive business value, organizations must unlock insights from the data gathered and then act on these. In their session at @ThingsExpo, Eric Hoffman, Vice President at EastBanc Technologies, and Peter Shashkin, Head of Development Department at EastBanc Technologies, discussed how one organization leveraged IoT, cloud technology and data analysis to improve customer experiences and effi...
The IETF draft standard for M2M certificates is a security solution specifically designed for the demanding needs of IoT/M2M applications. In his session at @ThingsExpo, Brian Romansky, VP of Strategic Technology at TrustPoint Innovation, explained how M2M certificates can efficiently enable confidentiality, integrity, and authenticity on highly constrained devices.
In today's uber-connected, consumer-centric, cloud-enabled, insights-driven, multi-device, global world, the focus of solutions has shifted from the product that is sold to the person who is buying the product or service. Enterprises have rebranded their business around the consumers of their products. The buyer is the person and the focus is not on the offering. The person is connected through multiple devices, wearables, at home, on the road, and in multiple locations, sometimes simultaneously...
“delaPlex Software provides software outsourcing services. We have a hybrid model where we have onshore developers and project managers that we can place anywhere in the U.S. or in Europe,” explained Manish Sachdeva, CEO at delaPlex Software, in this SYS-CON.tv interview at @ThingsExpo, held June 7-9, 2016, at the Javits Center in New York City, NY.
"We've discovered that after shows 80% if leads that people get, 80% of the conversations end up on the show floor, meaning people forget about it, people forget who they talk to, people forget that there are actual business opportunities to be had here so we try to help out and keep the conversations going," explained Jeff Mesnik, Founder and President of ContentMX, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with the 19th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world and ThingsExpo Silicon Valley Call for Papers is now open.