The enterprise view of cloud, specifically Private Cloud, is confusing

Enterprise organizations are actively looking for ways to leverage cloud computing. Cloud presents the single-largest opportunity for CIOs and the organizations they lead. The move to cloud is often part of a larger strategy for the CIO moving to a consumption-first paradigm. As the CIO charts a path to cloud along the cloud spectrum, Private Cloud provides a significant opportunity.

Adoption of private cloud infrastructure is anemic at best. Looking deeper into the problem, the reason becomes painfully clear. The marketplace is heavily fractured and quite confusing even to the sophisticated enterprise buyer. After reading this post, one could question the feasibility of private cloud. The purpose of this post is not to present a case to avoid private cloud, but rather expose the challenges to adoption to help build awareness towards solving the issues.

Problem statement

Most enterprises have a varied strategy with cloud adoption. Generally there are two categories of applications and services:

  1. Existing enterprise applications: These may include legacy and custom applications. The vast majority was never designed for virtualization let alone cloud. Even if there is an interest to move to cloud, the cost and risk to move (read: re-write) these applications to cloud is extreme.
  2. Greenfield development: New applications or those modified to support cloud-based architectures. Within the enterprise, greenfield development represents a small percentage compared with existing applications. On the other hand, web-scale and startup organizations are able to leverage almost 100% greenfield development.

 

Private Cloud Market Mismatch

The disconnect is that most cloud solutions in the market today suit greenfield development, but not existing enterprise applications. Ironically, from a marketing perspective, most of the marketing buzz today is geared toward solutions that service the greenfield development leaving existing enterprise applications in the dust.

Driving focus to private cloud

For the average enterprise organization, they are faced with a cloud conundrum. Cloud, theoretically, is a major opportunity for enterprise applications. Yet the private cloud solutions are a mismatched potpourri of offerings, which make it difficult to compare. In addition, private cloud may take different forms.

 

Private Cloud Models

Keep in mind that within the overall cloud spectrum, this is only private cloud. At the edges of private cloud, colocation and public cloud present a whole new set of criteria to consider.

Within the private cloud models, it would be easy if the only criteria were compute, storage and network requirements. The reality is that a myriad of other factors are the true differentiators.

The hypervisor and OpenStack phenomenon

The defacto hypervisor in enterprises today is VMware. Not every provider supports VMware. Private cloud providers may support VMware along with other hypervisors such as Hyper-V, KVM and Zen. Yes, it is possible to move enterprise workloads from one hypervisor to another. That is not the problem. The problem is the amount of work required to address the intricacies of the existing environment. Unwinding the ball of yarn is not a trivial task and presents yet another hurdle. On the flipside, there are advantages to leveraging other hypervisors + OpenStack.

Looking beyond the surface of selection criteria

There are about a dozen different criteria that often show up when evaluating providers. Of those, hypervisor, architecture, location, ecosystem and pricing models are just some of the top-line criteria.

In order to truly evaluate providers, one must delve further into the details of each to understand the nuances of each component. It is those details that can make the difference between success and failure. And each nuance is unique to the specific provider. As someone recent stated, “Each provider is like a snowflake.” No two are alike.

The large company problem

Compounding the problem is a wide field of providers trying to capture a slice of the overall pie. Even large, incumbent companies are failing miserably to deliver private cloud solutions. There are a number of reasons companies are failing.

Time to go!

With all of these reasons, one may choose to hold off considering private cloud solutions. That would be a mistake. Sure, there are a number of challenges to adopting private cloud solutions today. Yes, the marketplace is highly fractured and confusing. However, with work comes reward.

The more enterprise applications and services move to private cloud solutions, the more opportunities open for the CIO. The move to private cloud does not circumvent alternatives from public cloud and SaaS-based solutions. It does, however, help provide greater agility and focus for the IT organization compared to traditional infrastructure solutions.

Originally published @ Gigaom Research 2/16/2015

http://research.gigaom.com/2015/02/the-enterprise-view-of-cloud-specifically-private-cloud-is-confusing/

The CMO is not replacing the CIO and here’s why

Three years ago, Gartner predicted that by 2017, the CMO (chief marketing officer) would spend more on IT than the CIO. This one prediction spurned a number of follow-up predictions pointing toward the end of the CIO. The bottom line that everyone wants to know: Is the CIO role indeed going away? Is another c-level function replacing the CIO? And if so, who will take over the IT function?

Changes affect the entire IT ecosystem

It is not just the CIO and IT organization that are affected by a potential realignment of the IT function. Any change would have significant ramifications from people to vendors to architectures. No aspect of IT would be spared.

If IT were to go away or otherwise move to a different organization (or organizations), it would have a significant impact on how we think, operate and support the IT ecosystem. The focus would move to the immediate problem being solved for. However, the CIO and IT as a whole carry a broader responsibility that spans the entire enterprise.

The $64,000 question: What happens to the CIO & IT?

Before answering those looming questions, it is important to see the trends that drove these predictions. Looking back, there is absolutely a decline in IT demand. Specifically, demand for Traditional IT is in decline.

At the same time, the demand from marketing is stronger than ever. So, it makes sense that some of the waning demand may be transferred to marketing.

 

CIO CMO Short Term

Unfortunately, this only tells part of the story. If the story were to stop here, it would be easy to understand the logic behind the CMO taking over IT. As demand for the traditional CIO wanes, the CMO picks up and carries the function forward. The reality is this is only a very small part of the overall movement underway.

Transformational CIO on the upswing

The transformational CIO, unlike the traditional CIO, is in high-demand. In many cases, organizations do not understand what this means or what a transformational CIO looks like let along what they are capable of. A transformational CIO, unlike traditional CIO, is far more aligned with the business of the company. They are in-tune with how the company makes and spends money. They also look for opportunities around customer engagement and business growth. Transformational CIOs are more about business and data than they are about technology. In many ways, the transformational CIO is a business leader (first) that happens to have responsibility for IT.

Mapping the transformational CIO along with the traditional CIO and CMO brings the true picture into focus.

 

CIO CMO Transforming IT

One of the biggest challenges for transformation to take place requires all three components come together: The CIO, the IT organization and the rest of the company in terms of how they look at, leverage and engage IT. This evolution is referred to as the CIO’s Three-Legged Race.

One unfortunate point to make is that few traditional CIOs will have the mettle to truly transform into transformational CIOs. It can be done, but requires a level of intestinal fortitude well beyond that of many CIOs today.

Reporting structure for the CIO

Much of the change will come from the reporting structure of the CIO. Traditional IT organizations are often seen as a cost center and therefore report into the CFO. Transformational CIOs typically report directly to the CEO signaling the importance of IT (and the CIO) in leading the company. Consequently, a CIO reporting to the CMO may make sense temporarily, but not long term. The CIO’s prevue needs to be both broader and more strategic than any one function.

Every CMO I spoke with is not interested in taking on the IT responsibility. They are today, because they have, not because they want to.

The CIO is just getting started

Taking all of this into account, the role of the CIO is only starting to expand in ways it rarely has before. The same goes for IT. Sure, it may leverage a strong relationship with the CMO today. That is a very good thing! But it will evolve into a more impactful role that truly fills the qualifications for a seat at the CEO’s table.

 

CIO CMO Full Picture

Originally posted @ Gigaom Research 2/9/2015

http://research.gigaom.com/2015/02/the-cmo-is-not-replacing-the-cio-and-heres-why/

3 reasons traditional enterprise vendors will fail

Many often ask for my thoughts on traditional enterprise vendors compared with their startup and mid-size contemporaries. Without going into naming names, let me outline a few real situations that happened in just the past week alone. Each of these are large traditional enterprise providers and publically traded on either the NYSE or NASDAQ exchanges:

Direct line to sales

Last week, I called the main number of an IT services provider from their website. In the phone menu, I selected ‘sales’. Someone from ‘operations’ answers. I state that I’m looking for sales and was told “we take information for sales and pass it along for them to return the call.” It has been 5 business days and someone has still not returned my call.

Companies need to offer customers (and prospects) a direct line into sales. It is ok to leverage inside sales, but responses need to be quick while the customer is still engaged.

Keep reasonable hours

In a separate case, I called a second company that provides telecommunications, IT and cloud services. I used the main number from their website. Theoretically, telecom should be part of their strong suit. Unfortunately, the experience was not. My call was met with a greeting “Thank you for calling <name omitted>…Our hours of operation are 8-4:30pm Eastern Standard Time.” I was calling mid-morning Pacific Time, well within their hours of operation. But then the phone just rang and rang. No answer. After a few minutes, I hung up and called back a while later. Same thing, the phone just rang with no answer.

Two problems here: 1) their hours are 8-4:30pm Eastern? That means that anyone from the West Cost of the US better call in the morning before 1:30pm Pacific. That assumes that 2) there is someone to take the call. Even if not, there should be an option to leave a message with a quick callback. For a telecom company, this seemed like a big miss on multiple fronts.

Listen carefully to what the customer is saying

In yet another case with a third company, I wanted to explore their cloud services. First, getting to the right person was not trivial. Once I did, I clearly stated what I was looking for and wanted to understand more about their products. The person kept coming back to a script that involved a process to evaluate my needs before talking solutions. In most cases, this would be stellar. However, I knew what I was looking for. I just needed to know which of the vendor’s solutions fit best. It seemed that was not possible without running some involved tool that characterized my environment for some period of time first. I kept asking for more information about their solutions to no avail. They were not budging. Eventually, I had to actually state, “I don’t know how to explain what I’m looking for any other way.” And that was the end of the conversation.

Simplicity over complexity

Let’s face it; working in a big company has its issues. Big companies are complex beasts that are hard to traverse. In the first case, I’m certain my request for sales fell through the crack somewhere and may never surface again. Even if it does, I’ve already moved on. In the second case, I finally got to a person that could help me out. But not without the help of social media and a few extra hops finding the “right” contact for my specific situation. Again, far too many people in the process. In the third case, the person was not listening to my needs. They were more focused on the official company process.

Comparatively for their mid-sized contemporaries, the process was far more direct, complementary and simple for a customer to traverse. It is clear that mid-sized competitors do have an edge on their larger, established enterprise companies.

As a result of the experiences above, 2 of the 3 enterprise IT providers lost the opportunity. The third almost lost it, but barely made the running…for now. Unfortunately, those are not good odds.

My point of view

If enterprise IT providers are going to play in today’s ecosystem, they need to change their game. The game itself has evolved and is quickly leaving them behind. The sad part is that most of them either 1) don’t realize it or 2) refuse to believe it. My advise: believe it, step up and make a change.

Originally posted @ Gigaom Research 2/9/2015

http://research.gigaom.com/2015/02/3-reasons-traditional-enterprise-vendors-will-fail/

 

The enterprise CIO is moving to a consumption-first paradigm

Take yourself back a couple of decades and the IT industry looked very different than it does today. Back then the number of solution choices was relatively limited and only available to those with the finances to afford it. Many of the core services had to be built from the ground up. Why? There simply wasn’t the volume or maturity of the IT marketplace for core services. Today, that picture is very different!

For example, consider email. Back in 1995, Microsoft Exchange was just a fledgling product that was less than two years old. The dominant email solutions were cc:Mail (acquired by Lotus in 1991), Lotus Notes (acquired by IBM in 1995) along with a myriad of mainframe, mini and UNIX-based mail servers.

Every enterprise had to setup and manage their individual email environment. Solutions like Google Apps and Microsoft 365 simply did not exist. There was no real alternative…except for outsourcing.

Outsourcing 1.0

In the mid-late 90’s outsourcing became in vogue as a means to divest the enterprise. The theory was centered on economies of scale and expertise that most enterprises simply did not possess. Back then, IT was squarely seen as a cost center.

Unfortunately, outsourcing did not deliver on the promise. It was an expensive, opaque option that created significant challenges for many enterprise organizations. Even today, these wounds run deep with IT leaders when they think of leveraging cloud-based solutions.

The intersection of IT maturity and focus

Fast forward to present day. Today, organizations are re-doubling efforts to catapult their position through leverage. This effort brings laser focus upon the IT organization to pinpoint those efforts that derive differentiated value.

At the same time, the IT marketplace is far more mature. There are multiple options offered through a number of avenues. A startup company is able to spin up all of their technology services without purchasing a single server or building a single data center. Cloud computing is a key to this leverage point.

The intersection of these two dynamics is causing CIOs and IT organizations to rethink their priorities to better align with the overall business objectives. IT organizations are looking for leverage where they no longer have to do everything themselves. This demonstrably changes the dynamic of speed, agility and focus.

Moving to a consumption-first paradigm

Enter the consumption-first paradigm. Whereas past IT organizations needed to take a build-first methodology out of necessity, today there is a better option. Today, organizations can move to a consume-first paradigm.

Consumption FirstWithin the paradigm, applications and services are evaluated through a consume-first methodology. If the application/ service is not a good fit, then it moves to a configure-first methodology. If all else fails, it falls to build-first. But the goal here is to consume as much as possible without having to build or configure.

The evaluation process is as important as changing the paradigm. It is critical to clearly understand what is strategic and differentiating for the company. That then becomes a hallmark for guiding which components present the greatest opportunity for focus and leverage.

Paradigm change is hard

Changing the paradigm does not happen overnight. Many will fight the change and develop reasons why consumption is not a good idea. It is important to understand the motivations. From experience, the fundamental concern often comes back to job loss and confusion. For the CIO, it is important to tackle these components head-on.

Equally important is to maintain a balance in evaluating the holistic situation. Understanding the impact on people and processes is often harder than the technology shift. I wrote about this two weeks ago with Time’s Up! Changing core IT Principles.

Coming full circle

Moving to a consumption-first paradigm is not limited to email. It is starting with data centers and core applications (like email) and moving up the stack. The question is: How prepared are you for the coming change. Newer generations of staff, employees and customers are already demanding a different class of services.

The evolution has just started. Moving to a consumption-first paradigm is the core component in making the transformation. Ironically, a vast many organizations are still working with paradigms from the 90’s by trying to do it all themselves. In their case, they believe (mistakenly) that they ‘have’ to. The reality is often very different when taken from an objective perspective.

Do not get caught flat-footed. Change is already happening and picking up momentum. Unlike past evolutions, this is not one you want to be on the trailing edge of.

Originally published @ Gigaom Research 2/2/2015

http://research.gigaom.com/2015/02/the-enterprise-cio-is-moving-to-a-consumption-first-paradigm/

Does the enterprise marketplace really need a new email solution?

This week, Amazon announced their WorkMail solution as a business-class email and calendaring solution in the cloud. Over the past several years, Amazon has produced some amazing solutions. But is WorkMail something that the enterprise CIO should really take note of? And are we really in need of another email and calendaring alternative? There is a very important lesson to learn here. Read on.

Ask yourself this question: If this press release were launched by a completely different company, say Acme, would it have garnered as much attention and praise? Probably not. So, why are so many interested in this announcement?

New and innovative features?

If you read the details in the press release and on the WorkMail preview site, it is all motherhood and apple pie. Nothing new. Nothing innovative. In fact, many of the touted features are merely table stakes for any email and calendaring solution today. In order to supplant an incumbent, especially something as ingrained as email and calendaring, there needs to be a significant advantage.

Simply stating support for SSL, Active Directory or a Web-client is not going to get anyone excited. Or at least it should not. Those should be table stakes. If, however, you do get excited about those, it may be time to re-think your priorities. Conversely, the absence of those features should immediately garner a no-go.

Cloud-based alternatives?

The argument Amazon is making is really against on-premise email solutions today, namely Microsoft Exchange. The argument is for cloud-based email and calendaring solutions. The irony is that there are two solid, mature solutions in place today: Google Apps and Microsoft 365. There are other cloud-based solutions in the market today, but they are a distant 3, 4, 5, etc behind Google and Microsoft. In addition, WorkMail’s cost is right in line with that of Microsoft and Google. So, why try to compete? What is the advantage?

Enterprise integration

Enterprises are increasingly in need of better integration between solutions. Email, calendaring and file storage are some of the top areas of need. That is why we have seen the Google and Microsoft solutions include these core functions. But integration goes quite a bit further than simply backend integration.

Quite often, companies forget about the users and their perspective. This is one issue Google has faced from day-1. Using Google’s ‘tag’ approach vs. Microsoft’s files/ folders approach in use for years creates a significant learning curve. And that is one reason Microsoft 365 has seen a marked uptick in interest over Google Apps.

Anything in this space that is less than mature is simply an extremely hard sell to any enterprise. It is simply too risky to put email, calendaring and file storage to a less than mature solution. In addition, the integration needs to be solid and robust. It is not clear how/ if WorkMail is able to address this.

Marketing

The only thing I can come back to is marketing. Launching WorkMail is an opportunity for Amazon to garner wider interest and keep their name in the press. If that was their goal, they succeeded based on the number of articles written about WorkMail. If it were WorkMail by Acme, I doubt we would have heard about it.

Keeping your company in the public’s eye with fresh launches is one of several key initiatives. Launching WorkMail certainly does that. But in order to remain of interest, it needs to differentiate itself. In that area, WorkMail has failed. There is another side effect in that the perception will start to question why Amazon is going after such a mature market like email/ calendaring with such a basic offering. It definitely leaves some open questions.

My take

Amazon is heading down a questionable path. Enterprises are not chomping at the bit for a different email and calendaring alternative. They are, however, looking for easier ways to adopt and leverage public cloud solutions. Same goes for service providers.

My advice to Amazon would be to focus on what they do best and not go after email and calendaring. There are still a number of gaps in the public cloud space that could use their expertise and leadership.

Originally published @ Gigaom Research 1/30/2015

http://research.gigaom.com/2015/01/does-the-enterprise-marketplace-really-need-a-new-email-solution/

Time’s up! Changing core IT principles

There is a theme gaining ground within IT organizations. In truth, there are a number of examples that support a common theme coming up for IT organizations. And this very theme will change the way solutions are built, configured, sold and used. Even the ecosystems and ancillary services will change. It also changes how we think, organize, lead and manage IT organizations. The theme is:

Just because you (IT) can do something does not mean you should.

Ironically, there are plenty of examples in the history of IT where the converse of this principle served IT well. Well, times have changed and so must the principles that govern the IT organization.

Take it to the customization of applications and you get this:

Just because IT can customize applications to the nth degree does not mean they necessarily should.

A great example of this is in the configuration and customization of applications. Just because IT could customize the heck out of it, should they have? Now, the argument often made here is that it provides some value, somewhere, either real or (more often) perceived. However, the reality is that it comes at a cost, sometimes, a very significant and real cost.

Making it real

Here is a real example that has played out time and time again. Take application XYZ. It is customized to the nth degree for ACME Company. Preferences are set, not necessarily because they should be, but rather because they could. Fast-forward a year or two. Now it is time to upgrade XYZ. The costs are significantly higher due to the customizations done. It requires more planning, more testing, more work all around. Were those costs justified by the benefit of the customizations? Typically not.

Now it is time to evaluate alternatives for XYZ. ACME builds a requirements document based on XYZ (including the myriad of customizations). Once the alternatives are matched against the requirements, the only solution that really fits the need is the incumbent. This approach actually gives significant weight to the incumbent solution therefore limiting alternatives.

These examples are not fictitious scenarios. They are very real and have played out in just about every organization I have come across. The lesson here is not that customizations should be avoided. The lesson is to limit customizations to only those necessary and provide significant value.

And the lesson goes beyond just configurations to understanding what IT’s true value is based on what they should and should not do.

Leveraging alternative approaches

Much is written about the value of new methodologies and technologies. Understanding IT’s true core value opportunity is paramount. The value proposition starts with understanding how the business operates. How does it make money? How does it spend money? Where are the opportunities for IT to contribute to these activities?

Every good strategy starts with a firm understanding of the ecosystem of the business. That is, how the company operates and it’s interactions. A good target that many are finding success with sits furthest away from the core company operations and therefore hardest to explain true business value…in business terms. For many, it starts with the data center and moves up the infrastructure stack. For a bit more detail: CIOs are getting out of the data center business.

Preparing for the future today

Is your IT organization ready for today? How prepared is your organization, processes and systems to handle real-time analytics? As companies consider how to engage customers from a mobile platform in real-time, the shift from batch-mode to real-time data analytics quickly takes shape. Yet many of the core systems and infrastructure are nowhere ready to take on the changing requirements.

Beyond data, are the systems ready to respond to the changing business climate? What is IT’s holistic cloud strategy? Is a DevOps methodology engaged? What about container-based architectures?

These are only a few of the core changes in play today…not in the future. If organizations are to keep up, they need to start making the evolutionary turn now.

Originally posted @ Gigaom Research 1/26/2015

http://research.gigaom.com/2015/01/times-up-changing-core-it-principles/

Changing the CIO conversation from technology to business

For many years, traditional IT thinking has served the IT function well. Companies have prospered from both the technological advances and consequent business improvements. Historically, the conversation typically centered on some form of technology. It could have been about infrastructure (data centers, servers, storage, network) or applications (language, platform, architectures) or both.

Today, we are seeing a marked shift in the conversations happening with the CIO. Instead of talking about the latest bell-and-whistle, it is increasingly more apt to involve topics about business enablement and growth. The changes did not happen overnight. For any IT leader, it takes time to evolve the conversation. Not only does the IT leader need to evolve, but so does their team and fellow business leaders. Almost two years ago, I wrote about the evolution of these relationships in Transforming IT Requires a Three-Legged Race.

Starting the journey

For the vast majority of IT leaders, the process is not an end-state, but rather a journey about evolution that has yet to start in earnest. For many I have spoken with, there is an interest, but not a clear path in which to take.

This is where an outside perspective is helpful. It may come from mentors, advisors or peers. It needs to come from someone that is trusted and objective. This is key, as the change itself will touch the ethos of the IT leader.

The assessment

Taking a holistic assessment of the situation is critical here. It requires a solid review of the IT leadership, organizational ability, process state and technological situational analysis. The context for the assessment is back to the core business strategy and objectives.

Specific areas of change are items that clearly are not strategic or differentiating to support the company’s strategy and objectives. A significant challenge for IT organizations will be: Just because you can manage it, does not mean you should manage it.

Quite often, IT organizations get too far into the weeds and loose sight of the bigger picture. To fellow business leaders, this is often perceived as a disconnect between IT & Line of Business (LoB) leaders. It essentially alienates IT leaders and creates challenges to fostering stronger bonds between the same leaders.

Never lose sight of the business

It is no longer adequate for the CIO to be the only IT leader familiar with the company’s strategy and objectives. Any IT leader today needs to fully understand the ecosystem of how the company makes and spends money. Without this clarity, the leader lacks the context in which to make healthy, business-centric decisions.

The converse is an IT leader that is well familiar with the business perspective as outlined above. This IT leader will gain greater respect amongst their business colleagues. They will also have the context in which to understand which decisions are most important.

Kicking technology to the curb

So, is IT really getting out of the technology business? No! Rather, think of it as an opportunity to focus. Focus on what is important and what is not. What is strategic for the company and what is not? Is moving to a cloud-centric model the most important thing right now? What about shifting to a container-based application architecture model? Maybe. Maybe not. There are many areas of ripe, low hanging fruit to be picked. And just as with fruit, the degree of ripeness will change over time. You do not want to pick spoiled fruit. Nor do you want to pick it too soon.

One area of great interest these days is in the data center. I wrote about this in detail with CIOs are getting out of the Data Center business. It is not the only area, but it is one of many areas to start evaluating.

The connection between technology divestiture and business

By assessing which areas are not strategic and divesting those area, it provides IT with greater focus and the ability to apply resources to more strategic functions. Imagine if those resources were redeployed to provide greater value to the company strategy and business objectives. By divesting non-strategic areas, it frees up the ability to move into other areas and conversations.

By changing the model and using business as the context, it changes the tone, tenor and impact in which IT can have for a company. The changes will not happen overnight. The evolution of moving from technology to business discussions takes vision, perseverance, and a strong internal drive toward change.

The upside is a change in culture that is both invigorating and liberating. It is also a model that supports the dynamic changes required for today’s leading organizations.

Originally posted @ Gigaom Research 1/19/2015

http://research.gigaom.com/2015/01/changing-the-cio-conversation-from-technology-to-business/

Are you ready to take on tomorrow’s IT? Think again.

Let’s get one thing out of the way right up front. The business of IT is very complex and getting increasingly more complex every day. It does not matter whether you are the buyer or the seller; the industry is evolving into a very different and complex beast.

Evolution of the CIO

How we, as CIOs, have lead IT organizations is very different today from how it was done just 5-10 years ago. In many ways, it is easier to forget what we learned about leading IT and starting over. Of course, the leadership aspects are perennial and will always endure and grow. I wrote a bit about the evolutionary changes for the CIO in more detail with the 5 Tectonic shifts facing today’s CIO. In essence, tomorrow’s CIO is a business leader that also has responsibility for IT.

Consider for a moment that the CIO and IT organization sits on a spectrum.

 

CIO IT Org Traits

Where the CIO and IT sit along the spectrum impacts perspective, delivery of solutions, target, and responsibilities along with a host of other attributes for both the organization and providers alike.

The changing vendor landscape

Add it all together and today is probably the most confusing time for providers of IT products and services. Traditionally, providers have asked customers what they need and then delivered it. Today, many customers are not really sure what they need or the direction they should take. And the providers are not well equipped to lead the industry in their particular sector let alone tell a good story of how their solution fits into the bigger picture.

As an example, one provider would tell customers their cloud solution ‘transforms’ their business (the company IT is part of). This is completely wrong and over-extends beyond anything their solution is capable of. As such, it positions the company to over commit and under deliver. For the wise CIO, it leads to a serious credibility problem for the provider. It would be pretty unique for any vendor to truly ‘transform’ a company with a single technology let alone one that is far removed from the core business functions. A better, more accurate statement would be: We help enable transformation.

Be careful of Buzzword Bingo. Bingo!

In another recent IT conversation, the perception was that all Infrastructure as a Service (IaaS) solutions were ubiquitous and interchangeable. While we hope to get there some day, the reality is far from standardized. Solutions from providers like Amazon (AWS), Google (GCE), Microsoft (Azure) are different in their own rights. But also very different from solutions provided by IBM (SoftLayer), CenturyLink (SAVVIS), HP (Helion). Do they all provide IaaS services? Yes. Are they similar, interchangeable and address the same need? No. For the record: Cloud is not Cloud, is not Cloud.

The terms IaaS and Cloud bring market cache and attention. And they should! Cloud presents the single largest opportunity for IT organizations today. However, it is important to understand the actual opportunity considering your organization, strategy, capability, need and market options available. The options alone are quite a job to stay on top of.

Keeping track of the playing field

The list of providers above is a very small list of the myriad spread across the landscape. To expect an IT organization to keep track of the differences between providers and map their needs to the appropriate solutions takes a bit of work. Add that the landscape is more like the shifting sands of a desert and you get the picture.

The mapping of services, providers and a customer’s needs along with the fact that their very needs are in a state of flux create a very complex situation for CIO, IT organization and providers.

Is it time to give up? No!

Today’s CIO is looking to up-level the conversation. They are less interested in a technology discussion and one about business. Specifically, by ‘business’ conversation, today’s CIO is interested in talking about things of interest to the board of directors, CEO and rest of the executive team. Trying to discuss the latest technology bell or whistle with a CEO will go nowhere. They are interested in ways to tap new revenue streams, greater customer engagement and increasing market share.

For the CIO, focus on the strategic conversations. Focus on the business opportunities and look for opportunities that technology can help catapult the company forward. Remember that the IT organization no longer has to do everything themselves. Divest those functions that are not differentiating. As an example, consider my recent post: CIOs are getting out of the data center business. If you are not willing to (or capable of) competing at the level that Google runs their data center, it is time to take that last post very seriously. Getting rid of the data center is not the end state. It is only the start.

Originally published @ Gigaom Research 1/12/2015

http://research.gigaom.com/2015/01/are-you-ready-to-take-on-tomorrows-it-think-again/

No, you really do need a CIO…and now!

For those that follow my writing, this post may have a familiar ring to it. Unfortunately, there is a reason I’m writing about this yet again as the point still eludes many.

The curious case of Acme Inc

Take a recent example for Acme Inc (company name changed). Acme is a mid-sized organization without a CIO. I spoke with the CEO and another member of the executive team that were trying to solve tactical technology and information problems on their own. In this case, Acme is experiencing solid growth of 50% CAGR. They believed they were being strategic in their technology decisions. The truth was far from it. It was painfully apparent they were way out of their wheelhouse, but didn’t realize it. In a way, they were naive that the decisions they were making were locking them into a path where, near-term, the company would not remain competitive. But they didn’t know that. They were looking to solve a technology problem to support their immediate growth trajectory without thoughtfulness of the opportunity. They were also relying too heavily on their technology providers whom they believed had the company in their best interests. Unfortunately, this is not a fictitious story of what could happen to a fictitious company. It is a real situation that occurred with a real company. And sadly it is one of many.

Trust is incredibly important in business today. There is no question. But as one mentor once taught me many years ago: Trust, but verify. In the immortal words of Deming “In God we trust, all others bring data.”

What is a CIO?

What is a CIO and do I need one? This is a question that many chief executives ask as their business evolves. I addressed a similar question about the CDO in ‘Rise of the CDO…do you need one?’ last year.

For small to mid-size enterprises, the conversation is not taking place soon enough. Many are still contemplating how to task the IT manager or director with more responsibility. Or worse yet, the responsibilities are being shared across the executive team. In one example outlined below, the results can be catastrophic.

So, when do you get your first CIO? And if you have a CIO, do you still need one? Isn’t the CIO’s role simply about managing the computers? In a word, no.

Do I need a CIO?

The short answer to this is yes. From small to large enterprises, the need for a CIO is greater today than ever before. Many will see a CIO and their organization as a cost center that eats into the bottom line. If so, that is a very short-sided view. Today’s CIO is very strategic in nature.

More than ever, business relies heavily on technology. But more than the technology itself, it is how it is applied and leveraged that makes the difference. The how relies heavily on context around business value and applicability. It requires someone, the CIO, to make the connection between business value across multiple disciplines and the technology itself.

Can other executives provide this capability? No. They can provide a different caliber of tactical implementation, but not the cross-functional strategic perspective that a CIO brings to the table. And it is this cross-functional strategic perspective that brings significant value to differentiate companies.

Information is the currency of business. It is what drives business decisions that will affect the success and failures across a myriad of dimensions. The CIO is the best position to understand, drive and expose value from information. The value of the information

What does CIO stand for?

This seems like a perennial subject. What does the ‘I’ in CIO stand for? Information? Innovation? Inspiration? Integration? The bottom line is that the I stands for the same thing is has always stood for; Information. Today’s business is driven by information. Technology is simply an enabler to leverage information. Integration, innovation, etc are all functional means to drive the value of information to a company.

If information is gold, what is technology? Technology is similar to the mining and refining equipment to extract and process the gold. Without it, the gold may be discovered, but in small quantities using ineffective means. A major factor in today’s business is speed. Access to information quickly is paramount.

The evolving role of the CIO

The CIO’s role (past and present) is far more complicated that many appreciate. A CIO is really a business leader that happens to have responsibility for IT. In addition, a CIO is really a CEO with a technology focus. A CIO is strategically focused and able to traverse the entire organization at the C-level. That last attribute requires a level of experience very different from the traditional CIO.

In the case of Acme, a CIO would be a great asset moving forward.

Originally posted @ Gigaom Research 1/5/2015

http://research.gigaom.com/2015/01/no-you-really-do-need-a-cioand-now/

5 things a CIO wishes for this holiday season

It is that time of year when we start thinking about our predictions for the next year. Before we get to 2015 predictions next week, let us take an introspective look at 2014 and what we could hope for from the IT perspective in 2015.

There are a number of key gaps between where we, as IT organizations and the CIOs that lead them, are today versus where we need to be. One dynamic that is currently evolving, however slowly, is the shift from traditional CIOs to transformational CIOs. This applies equally to the IT organizations they lead. IT is in a transitive state at the moment and leaves quite a bit in flux. In many ways, there is much more changing within IT organizations today than ever before.

As we progress through the 2014 holiday season heading quickly toward 2015, there are a number of things that, as CIO, I would wish for in 2015.

  1. Reduce the risk from security breaches: With recent events, it is probably not surprising that security is front-and-center. Security breaches are not new to IT organizations. Neither are high-profile breaches. The change over the past year is that the frequency in high-profile breaches has increased significantly. In addition, if you consider the breaches just in the past year, the vast majority of people in the US have been affected by at least one of the breaches. As a CIO, I do not want to be on the front page of the Wall Street Journal let alone a household name that violated the trust of my customer’s data.
  2. The end of vaporware: Vaporware, like security breaches, is not new. But the hype around emerging technologies has really gotten out of control. It is time to dial it back to a more reasonable level. This is especially true of services that are ‘stickier’ for customers. Be reasonable with setting expectations. It is OK to be ambitious, but also builds credibility when you express what is and isn’t in your wheelhouse.
  3. A business-centric IT organization: Consider an IT organization that brings a business-centric focus to delivering solutions in a proactive manner. No longer are there ‘translators’ between business and IT. But rather, an IT organization that understands how the company makes and spends money…intimately. This means they understand the ecosystem of the company, their customers and the marketplace.
  4. Symbiotic business relationships: This one is intertwined with #3 where the IT organization and other lines of business work fluidly and collaboratively toward common objectives. Lines of business outside of IT view IT as a strategic asset, not a tool. And, there is no more talk of IT and ‘the business’ as if they’re separate groups. IT is part of ‘the business’.
  5. A clear future, not cloudy: It would be great if the future state were clear as a bell to the entire IT ecosystem. Right now, it’s pretty cloudy (pun intended). That’s not to say that clouds don’t have a place. Cloud computing represents the single biggest opportunity for IT organizations today.

I’ve said it before and I’ll say it again. This is absolutely the best time to work in IT. I know there are IT professionals that have a hard time with that statement. However, much of that consternation comes from the ambiguity currently within the IT industry. Let’s face it; there is a ton of change happening in IT right now. Things we took as gospel for decades is being questioned. Best practices are no longer so.

But with change and disruption comes confusion and opportunity. Once we get beyond this temporary state, things will quell and the future state will become clearer. Here’s to an exhilarating 2015!

Happy Holidays and here’s to an amazing 2015!

Originally posted @ Gigaom Research 12/22/2014

http://research.gigaom.com/2014/12/5-things-a-cio-wishes-for-this-holiday-season/