Welcome!

Microsoft Cloud Authors: Janakiram MSV, Yeshim Deniz, David H Deans, Andreas Grabner, Stackify 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
In his session at 21st Cloud Expo, Carl J. Levine, Senior Technical Evangelist for NS1, will objectively discuss how DNS is used to solve Digital Transformation challenges in large SaaS applications, CDNs, AdTech platforms, and other demanding use cases. Carl J. Levine is the Senior Technical Evangelist for NS1. A veteran of the Internet Infrastructure space, he has over a decade of experience with startups, networking protocols and Internet infrastructure, combined with the unique ability to it...
"There's plenty of bandwidth out there but it's never in the right place. So what Cedexis does is uses data to work out the best pathways to get data from the origin to the person who wants to get it," explained Simon Jones, Evangelist and Head of Marketing at Cedexis, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
"Cloud Academy is an enterprise training platform for the cloud, specifically public clouds. We offer guided learning experiences on AWS, Azure, Google Cloud and all the surrounding methodologies and technologies that you need to know and your teams need to know in order to leverage the full benefits of the cloud," explained Alex Brower, VP of Marketing at Cloud Academy, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clar...
Large industrial manufacturing organizations are adopting the agile principles of cloud software companies. The industrial manufacturing development process has not scaled over time. Now that design CAD teams are geographically distributed, centralizing their work is key. With large multi-gigabyte projects, outdated tools have stifled industrial team agility, time-to-market milestones, and impacted P&L stakeholders.
Gemini is Yahoo’s native and search advertising platform. To ensure the quality of a complex distributed system that spans multiple products and components and across various desktop websites and mobile app and web experiences – both Yahoo owned and operated and third-party syndication (supply), with complex interaction with more than a billion users and numerous advertisers globally (demand) – it becomes imperative to automate a set of end-to-end tests 24x7 to detect bugs and regression. In th...
"Akvelon is a software development company and we also provide consultancy services to folks who are looking to scale or accelerate their engineering roadmaps," explained Jeremiah Mothersell, Marketing Manager at Akvelon, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
"MobiDev is a software development company and we do complex, custom software development for everybody from entrepreneurs to large enterprises," explained Alan Winters, U.S. Head of Business Development at MobiDev, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
SYS-CON Events announced today that CrowdReviews.com has been named “Media Sponsor” of SYS-CON's 22nd International Cloud Expo, which will take place on June 5–7, 2018, at the Javits Center in New York City, NY. CrowdReviews.com is a transparent online platform for determining which products and services are the best based on the opinion of the crowd. The crowd consists of Internet users that have experienced products and services first-hand and have an interest in letting other potential buye...
"IBM is really all in on blockchain. We take a look at sort of the history of blockchain ledger technologies. It started out with bitcoin, Ethereum, and IBM evaluated these particular blockchain technologies and found they were anonymous and permissionless and that many companies were looking for permissioned blockchain," stated René Bostic, Technical VP of the IBM Cloud Unit in North America, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Conventi...
SYS-CON Events announced today that Telecom Reseller has been named “Media Sponsor” of SYS-CON's 22nd International Cloud Expo, which will take place on June 5-7, 2018, at the Javits Center in New York, NY. Telecom Reseller reports on Unified Communications, UCaaS, BPaaS for enterprise and SMBs. They report extensively on both customer premises based solutions such as IP-PBX as well as cloud based and hosted platforms.
"Space Monkey by Vivent Smart Home is a product that is a distributed cloud-based edge storage network. Vivent Smart Home, our parent company, is a smart home provider that places a lot of hard drives across homes in North America," explained JT Olds, Director of Engineering, and Brandon Crowfeather, Product Manager, at Vivint Smart Home, in this SYS-CON.tv interview at @ThingsExpo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
Coca-Cola’s Google powered digital signage system lays the groundwork for a more valuable connection between Coke and its customers. Digital signs pair software with high-resolution displays so that a message can be changed instantly based on what the operator wants to communicate or sell. In their Day 3 Keynote at 21st Cloud Expo, Greg Chambers, Global Group Director, Digital Innovation, Coca-Cola, and Vidya Nagarajan, a Senior Product Manager at Google, discussed how from store operations and ...
It is of utmost importance for the future success of WebRTC to ensure that interoperability is operational between web browsers and any WebRTC-compliant client. To be guaranteed as operational and effective, interoperability must be tested extensively by establishing WebRTC data and media connections between different web browsers running on different devices and operating systems. In his session at WebRTC Summit at @ThingsExpo, Dr. Alex Gouaillard, CEO and Founder of CoSMo Software, presented ...
WebRTC is great technology to build your own communication tools. It will be even more exciting experience it with advanced devices, such as a 360 Camera, 360 microphone, and a depth sensor camera. In his session at @ThingsExpo, Masashi Ganeko, a manager at INFOCOM Corporation, introduced two experimental projects from his team and what they learned from them. "Shotoku Tamago" uses the robot audition software HARK to track speakers in 360 video of a remote party. "Virtual Teleport" uses a multip...
A strange thing is happening along the way to the Internet of Things, namely far too many devices to work with and manage. It has become clear that we'll need much higher efficiency user experiences that can allow us to more easily and scalably work with the thousands of devices that will soon be in each of our lives. Enter the conversational interface revolution, combining bots we can literally talk with, gesture to, and even direct with our thoughts, with embedded artificial intelligence, whic...
SYS-CON Events announced today that Evatronix will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Evatronix SA offers comprehensive solutions in the design and implementation of electronic systems, in CAD / CAM deployment, and also is a designer and manufacturer of advanced 3D scanners for professional applications.
Leading companies, from the Global Fortune 500 to the smallest companies, are adopting hybrid cloud as the path to business advantage. Hybrid cloud depends on cloud services and on-premises infrastructure working in unison. Successful implementations require new levels of data mobility, enabled by an automated and seamless flow across on-premises and cloud resources. In his general session at 21st Cloud Expo, Greg Tevis, an IBM Storage Software Technical Strategist and Customer Solution Architec...
To get the most out of their data, successful companies are not focusing on queries and data lakes, they are actively integrating analytics into their operations with a data-first application development approach. Real-time adjustments to improve revenues, reduce costs, or mitigate risk rely on applications that minimize latency on a variety of data sources. In his session at @BigDataExpo, Jack Norris, Senior Vice President, Data and Applications at MapR Technologies, reviewed best practices to ...
An increasing number of companies are creating products that combine data with analytical capabilities. Running interactive queries on Big Data requires complex architectures to store and query data effectively, typically involving data streams, an choosing efficient file format/database and multiple independent systems that are tied together through custom-engineered pipelines. In his session at @BigDataExpo at @ThingsExpo, Tomer Levi, a senior software engineer at Intel’s Advanced Analytics gr...
When talking IoT we often focus on the devices, the sensors, the hardware itself. The new smart appliances, the new smart or self-driving cars (which are amalgamations of many ‘things’). When we are looking at the world of IoT, we should take a step back, look at the big picture. What value are these devices providing? IoT is not about the devices, it’s about the data consumed and generated. The devices are tools, mechanisms, conduits. In his session at Internet of Things at Cloud Expo | DXWor...