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
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