Infrastructure management of tomorrow will be nothing like today

August 22, 2013

Market History• 5000 years focus on subsistence• 1800: arrival of technology. Automation

revolution begins: Physical jobs Transactional jobs Knowledge engineering 200m

Infrastructure Management AaaS• 77B 140b curve

Are We In the Midst of an IT Revolution?

How is IT Transforming?

Wave 1 Characteristics 15%-30% cost take out Model is scalable to the extent that you

can scale labor Custom/complex, legacy :“Your mess for

less” Access to Low Cost Labor necessary to

provide continuous value Revenue/Profit correlated to People

Wave 2 Characteristics 60%-80% cost take out Model is scalable and is largely

independent of labor growth Transformative – New way of doing

business Access to “Rocket Scientists” who can

codify manual processes Revenue/Profit NOT correlated to People

Wave 1LaborArbitrage

Wave 2Labor

Automation

What is the Technology Making this Shift

Change

Time

Knowledge of Market ParticipantsPace of Change for Technology and Services

What-if change is non-linear?Can classic (script based manual)

automation keep pace?

Move over manual

automation.

Here comes autonomics!

Automation benefits for more processes

Cheaper to operateFaster processingConsistent quality Lower risksBetter compliance

Deloitte study56% of Exceptions in 1 in Every 25 Fortune 1000 Companies Remediated Autonomically

Is Autonomics Real?

Empirical data• Largest investment bank: 91%• Second largest credit card

processor: 68%• Largest banking institution: DB

management: 43%• Largest network management

company: 87%• Largest media company in US: DSC

Can Machines Think?I propose to consider the question:

― Alan Turing, 1912-1954

What’s Next?

Cognitive technologies• 2005 GOOS Summit: In 5 years classic ITO automation• NASSCOM: BPO BPM, emphasizing intellectual arbitrage• 2013 Prediction: “In a decade we’d pass someone in the

corridor and not know if it’s a human or an android”• Androids are coming!!

What Will Happen to Us?

What Happened to the Horse & Carriage Driver?• Dystopian Utopian: constructive destruction• Prepare for tomorrow: proactively• ITO automation engineers• Ultimate liberator

What Should the Country Do?

Industry trends• Tiger by the tail: stay ahead of the curve Prosper: double

the market size• Leader 4000 years follower in colonial period (200 years)

Must reassert its position as a leader again• Shift from Cheaper Better