Business Drivers of SDN by Paul Wiefels, Chasm Group
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Transcript of Business Drivers of SDN by Paul Wiefels, Chasm Group
THE CHASM GROUP: MARKETING & MANAGEMENT CONSULTANTS TO THE TECHNOLOGY INDUSTRY
Management seminars & workshops
Strategy “tune-ups”
Thought leadership: books and articles
Product market development strategy
Corporate strategy & positioning development
Go-to-market execution & plan development
Executive advisory & counsel
Branding & product development alignment
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• Transaction systems for global commerce . . . • Financials, Order Processing, Inventory, HR, CRM, Supply Chain• Mainframes, minis, client-server, PC, Internet-enabled, SaaS
• Drove three decades of investment• Home-grown data centers• OLTP/ERP type applications and Business Intelligence were key
drivers
• Y2K put the capstone on this trend• Pulled forward a half decade of investment• Enterprise IT has had to go through a long “digestive” period• Focus in past decade has been on efficiency investments
ENTERPRISE IT: THE CURRENT STATE SYSTEMS OF RECORD ARE LARGELY COMPLETE
IT INNOVATION DURING THE PAST DECADE
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Enterprise IT Consumer IT
Application & System optimization –
Cheaper, faster, better to support Systems of Record.
Beware disruptions.
Application & System transformation –
Enable access, broadband,mobile to support Systems
ofEngagement.
Embrace disruptions.
BRCD Opportunity
• Access• Infinite content, no barriers to entry, no barriers to exit• Communications are globally democratized• Microsoft, Google, Facebook, Wikipedia, OpenTable
• Broadband• Pictures, video, shopping• Internet touches both the mind and the heart• Skype, iTunes, YouTube, Pandora, Hulu, Netflix, Zappos
• Mobile• PC for emerging markets• MacAirs and Ultrabooks• iPhone and iPad set the bar in mature markets• IM, email, camera, game, wallet, magazine. . . even a phone!
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REDEFINING INFO TECHNOLOGY FOR CONSUMERS: THE DIGITIZATION OF HUMAN CULTURE
How will this impact enterprise IT?What will drive change?
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VirtualizedData Centers
Software as a Service
Infrastructure as a Service
Platform as a Service
Managed Hosting
Servers, Storage, and Networks
Enterprise Apps over the Internet
Composite Apps in the Cloud
Many IT vendors doing this today
THE FUTURE OF ENTERPRISE IT: AN EVOLUTION IN INFRASTRUCTURE
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Info on Demand
Instant Orientation
Instant Communication
Video on Demand
Google, Bing, Yelp, Wikipedia
GPS, Google Maps, Navigation, Personal healthcare monitoring
YouTube, Netflix, Facetime
SMS, Facebook, Twitter, Skype
This is radically new
THE FUTURE OF ENTERPRISE IT: A REVOLUTION IN APPLICATIONS
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SYSTEMS OF ENGAGEMENT: EVOLUTION MEETS REVOLUTION
Evolution in Infrastructure
Focuses on Systems of Record
Continuation of current trends and investments
Not fundamentally disruptive
What will drive enterprises to invest insystems of engagement?
Revolution in Applications
Focuses on Systems of Engagement
Totally new end user experience
Radically discontinuous
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SYSTEMS OF ENGAGEMENT FOR B2B
• Enterprise Facebook
• Enterprise YouTube/GoToMeeting
• Enterprise LinkedIn
• Enterprise App Store
• Enterprise Chatter
• On demand conferencing
• Global presence detection
• Mobile access to everything
• Social content management
• With more revolutionary applications to come . . . .
Who knows energy and
speaks Chinese?
Who is the VP Operations in
Client X?
How is the quarter coming?
I need to talk to Harry—
where is he?
What got decided at the
last project meeting?
Can you do a demo for the
field?
Let’s make sure everyone fills out the budget the
same way!
Let’s get everyone
together now!
Let’s look at the data and get Charlie to walk us thru
it
SYSTEMS OF ENGAGEMENT FOR B2C
• Collaborative filtering
• Behavioral targeting
• Personalized transactions
• Location-based services
• Predictive analytics
• Machine learning
• Fraud detection
• Multi-channel engagement
• Near-field transaction processing
• And lots more to come . . .
Birds of a feather flock
together!
Now that’s what I like!
Lucky you added that
extra inventory!
Foiled again!
No more plastic!
Who’s in the market today?
Timely!
It just seems to get
smarter!!
Just the way I like it!
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• Fundamental structure of business changing• OLD: Hierarchically organized integrated enterprises• NEW: Business networks of specialized enterprises
• Business networks increase demand for:• Communication – Coordination - Collaboration• Relationship management and trouble shooting
• Challenge: To engage with peers globally to solve problems• Answers are not in Systems of Record• They are in other people’s (and often other companies’) heads
SPECIALISTS ALL AROUND: THE RISE OF COLLABORATIVE BUSINESS NETWORKS
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• From Transactions to Interactions on the web• Battle for customer preference at the moment of choice• Pressure to be relevant in real time• Goal is maximum exposure and transparency
• The Answers are in computers or databases• They are tiny needles in massive haystacks• Must find and activate them before prospect moves on• This information is gold to hackers, cybercriminals, spies, etc.
• No time for people—or disk drives—to be in the loop• Show it all and show it fast
B2C SYSTEMS OF ENGAGEMENT: COMPELLING ONLINE EXPERIENCES ARE CORE
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Business Process Consulting
Transaction Applications
Business Intelligence
Web Application Infrastructure
Systems Management Infrastructure
Database
Operating System
Servers
Storage
Data Network
High-Performance Microprocessors
BusinessLayer
ComputeProcesses
ComputeEngines
Mainframes
Document-based Collaboration
Desktop Environment
HOW IT PLAYS OUT TODAY: THE CURRENT SYSTEMS OF RECORD
STACK…
High-Performance Microprocessors
Document-based Collaboration
Business Process Consulting
Transaction Applications
Business Intelligence
Web Application Infrastructure
Systems Management Infrastructure
Database
Operating System
ServersStorage
Data Network
Mainframes
Desktop Environment
Real-Time Analytics
Mobile Application Infrastructure
Public/Private Cloud Management
Infrastructure as a Service
Mobile Clients
Apps
Live Collaboraborative Sessions
In-Memory Caches
Voice/Data/Video Network
User Experience Design
…NOW MORPHING TO MEET USER DEMANDS
Virtualization Platforms
Low-Power Microprocessors
BusinessLayer
ComputeProcesses
ComputeEngines
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• Systems of Record (SORs) create efficiency• Impossible to do global commerce without them• Focus on cost, quality, and contractual commitments
• Systems of Engagement (SOEs) create effectiveness• Address the complexities of global business relationships• Create compelling consumer interactions on line
• Sought after architecture• SOEs operating on top of and in touch with SORs• This is where the evolution in infrastructure comes in
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SYSTEMS OF RECORD & SYSTEMS OF ENGAGEMENT
Networks must be agile, changeable, and fast to deploy. All of which means they will need to
be virtualized.
TWO DIFFERENT TRAJECTORIES
User Experience Design
Apps
Real-Time Analytics
Mobile Application Infrastructure
Public/Private Cloud Management
In Memory Caches
Virtualization Platforms
Voice/Data/Video Network
Infrastructure as a Service
Live collaborative Sessions
Mobile Clients
Low-Power Microprocessors
Business Process Consulting
Transaction Applications
Business Intelligence
Web Application Infrastructure
Systems Management Infrastructure
Relational Data Management
Operating System
Servers
Storage
Data Network
High-Performance Microprocessors
Mainframes
Document-based Collaboration
Desktop Environment
Offered as part of a massive suite of
applications
Best of Breedfor
Real-time differentiation
Systems of Record Stack Systems of Engagement Stack
Advantage:Huge SOR vendors
Advantage:Next-gen Start-Ups
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• Intense and global competition is causing companies to evolve how they pursue, acquire, monetize, and sustain relationships with customers and partners.
• Both online and traditional businesses are shifting their customer focus from a transactions orientation to that of pursuing and nurturing ongoing interactions.
• The need for employees often globally disbursed to collaborate with one another real-time as never been greater.
• This requires flexible networks. Time to value can’t be paced by time to connection.
• Security challenges abound. The more open, the more vulnerable.
KEY TAKEAWAYS