Tech Trends: Major trends in cloud computing to watch - David Linthicum - April 2022

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Tech Trends: Major trends in cloud computing to watch - David Linthicum - April 2022
Tech Trends: Major trends in cloud
computing to watch
David Linthicum – April 2022
Tech Trends: Major trends in cloud computing to watch - David Linthicum - April 2022
The major movements are clear

                                                                    Industry
                                                                     clouds

                                                                                 Obtaining
                                                                               sustainability

               2022                                                                             2023-2025
                                                                               Cloud-scale
                                                                                solutions

                                                                   Work from
                                                                   anywhere
                                                                  enablement

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Tech Trends: Major trends in cloud computing to watch - David Linthicum - April 2022
Industry clouds

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Tech Trends: Major trends in cloud computing to watch - David Linthicum - April 2022
The research is just now evolving…

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Tech Trends: Major trends in cloud computing to watch - David Linthicum - April 2022
The emergence of industry clouds

                           As much as 64% of the US$1 trillion cloud market could benefit from industry clouds — a $640 billion potential market.

  Five industries with high interest in adopting industry cloud solutions for end-to-end digital transformation priorities
  Percentage of respondents by sector that expressed interest in industry cloud

  Retail: in processes such as risk management
                                                                                                                                                                                                                   95%
                and procurement                                                                                                                                                                          91%
  Consumer products: to support supply chain business processes
                                                                                                                                                                                                             92%
  Discrete manufacturing: to improve digital supply networks
                                                                                                                                                                                                   88%
  Banking and insurance: for data management and insights                                                                                                                                                                    Deloitte visualization of data
                                                                                                                                                                                                                             based on: SAP News Center,
                                                                                                                                                                                                87%                          “Emerging opportunities to
  Public sector: for tax and revenue operations                                                                                                                                                                              deploy industry processes in the
                                                                                                                                                                                                                             cloud,” October 16, 2018.
                                                                                                                                                                                              86%
 Analysis based on data from: Nadia Ballard et al., Industry CloudPath 2021: Executive Summary Report, IDC, accessed October 26, 2021. Of the respondents who said that they’re already using applications in the cloud, 35% are using industry-specific cloud applications,
 35% are using horizontal apps designed for multiple industries, and 29% have customized applications to fit their industry. Our analysis uses industry-specific and customized applications as indicators for the demand for industry clouds.

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Tech Trends: Major trends in cloud computing to watch - David Linthicum - April 2022
Industry clouds recalibrate the strategy and engineering equation

Rebalancing the buy vs. build equation to find your strategic buy and build

          Business strategy
                                                                      External partner focus:
          and internal build focus:

    • Set competitive strategy for digital                        • Analyzing industry scenarios
    • Identify opportunities to leverage industry                   and opportunities
      clouds                                                      • Creating whole-product, end-to-end, pre-
    • Customize and layer in differentiated                         integrated solutions
      capabilities to derive                                      • Continuously evolving industry clouds
      competitive advantage                                         and capabilities
    • Build with integrated business and                          • Increasing interoperability across
      tech teams                                                    technology platforms

  Key benefits from this approach
  • Better align top digital use cases to the organization’s enterprise and digital strategies
  • Accelerate development for these top use cases aligned to the ability to win to improve
    revenues, reduce costs, and accelerate time-to-market for new products or services
  • Hypercharge an organization's capacity to change with best of breed tech and talent
  • Free up internal resources to focus on areas of competitive differentiation

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Obtaining sustainability

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Major cloud providers are leading here, but enterprises need to be involved.

                                                                  Source: https://aws.amazon.com/blogs/architecture/optimizing-your-aws-infrastructure-for-sustainability-part-i-compute/
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Cloud-scale solutions

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Architecture at the center of cloud-scale

                                                                                                       Requester
                                                                                                (Human or Automation)

                                                                                   Resource Management             Node Management

                                            Auto-Scaling          Intra-Cloud         Infrastructure                Governance and   Cross Region Node   Data/Storage
                                        (AI and Procedural)       Federation            Elasticity                     Security        Management        Management

                                                                                Billions or actions per second

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Emerging “cloud scale” logical patterns

                                                                                                                                                                                 Orchestration
                                                                                                                                                                                 and Process
                                                                                                                                                          Applications
                                                                                                            Partner Clouds
                                                                                     Devices
                                                                                                        Consumer/Producer Pool         Applications

                                    Service Focused
                                                                                                  Application Services/Microservices

                                                                                                                                                            Logical Abstracted

                                                                                                                                                              Management
                                         Cloud

                                                                                                                                                                 Services
                                                            Service/API
                                                           Management &
                                                            Development

                                                                                                                                                                                                             Management/Monitoring/CloudOps/Complexity Management

                                                                                                                                                                                                                                                                    Security and Governance/SecOps&GovOps
                                                                                                                                                            Logical Abstracted Storage
                                                                Data
                                                            Orchestration

                                                                                                                                                               and Data Resource

                                                                                                                                                                                                                                                                                                            Cloud Service Brokering
                                                                                                                                                                   Management
                                                           Data Integration

                                                                                                                                                                                                                                                                                                                                      Cost Governance
                                      Data Focused Cloud

                                                             Abstracted
                                                              Compute

                                                               Virtual
                                                             Databases
                                                            (Abstraction)

                                                                                                                                                                                 Infrastructure Management
                                                                                                                                                            Network Management
                                                            Cloud-
                                                            Based
                                                           Databases

                                                                              OLTP             Analytical              Common            Special
                                                                                                                       Storage           Purpose
                                                                                                                       Services
                                                                                                            Native APIs

                                                              Legacy                             Public Cloud/AWS                        Private Clouds
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Work from anywhere enablement

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How do we support a dynamic and distributed workforce: We Need to Recognize that Becoming a High-Performance IT
Organization will be a Multi-year Phased Journey for Cloud-Using Enterprise IT in Order to Run Smarter, Grow Stronger,
and Transform Faster                                                                        Future State – High performing IT
                 Immediate activities                 Near Term State – One IT                                                                                                                             organization
                                     O1, O2, O3, O4, S1, S3, S4, C1                                                       S2, S5, D1, D2,D3, C2

                                                                                                                                                                                                                         Business Alignment /
                       Today            ▪ Propose and validate new IT                                                                                                                                         VISION     Delivery Effectiveness
                                          Operating Model
                                                                                                                                                                                             ▪   Product Organization (>80%
                                                                                                                                                                                                 Adoption)

                                                                                                                                                                                             ▪   Fast & Frequent Releases
                                                                                                                                            ▪   Continue building out the new
                                                                                                                                                operating model
                                                                                                                                                                                             ▪   Outcome Driven Delivery
    Performance

                                                                                                                                            ▪   Enhance Agile Workplace / Culture
                                                                                         ▪     Scale adoption of the new IT                                                                  ▪   Clear & Accurate Visibility into
                                                                                                                                                as needed
                            ▪   Finalize new IT operating model design and start               operating model and build out the                                                                 Delivery
                                the transformation focusing on the shared services             BSDT’s
                                                                                                                                                                                             ▪   Continuous Improvement Across
                                                                                         ▪     Enhance delivery based on metrics &                                                               the Enterprise
                            ▪   Understand and re-design the IT Governance
                                Model                                                          reporting

                            ▪   Design the new service delivery model and select         ▪     Implement Continuous
                                partner(s)                                                     Improvement

                            ▪   Develop a Business Aligned IT Innovation Process

                            ▪   Define a cloud strategy

                                        Build the Foundation                                                       Build out the new IT Operating Model                                           Embed the Culture

                                               0 – 1 year                                                                           1 – 2 years                                                            3 – 4 years
                  • Migration towards a fundamentally different model for planning,          • Adoption of key delivery practices (i.e. minimum viable product)                     • Increased return from IT investments
    Outcomes

                    prioritizing, and funding
                                                                                             • Accelerated automation of IT delivery                                                • Target operating model design completed and embedded within
                  • Structured investment governance with enforced portfolio processes                                                                                                the overall culture
                    and mindset to increase business outcomes                                • Decreased infrastructure capacity costs (based on cloud adoption)
                                                                                                                                                                                    • Increased delivery effectiveness
                • Consolidation of NA & IO in to one IT organization                         • Improved cost transparency
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Several Key Factors with Business Implications can Help to Lead to a more Successful Transformation to Supporting
Remote Work

     Success Factors                                                                              Implications for 

                                Partner with the business for success                             ▪ Collaborative approach that builds accountability and consensus
                                Ensuring business engagement is key, requiring dedicated            across all stakeholders
                                resources for future design activities can improve involvement    ▪ Business involvement to drive decision making, funding levels and
                                and accelerate design making                                        ensure joint accountability for success
                                                                                                  ▪ Business commitment to provide the resources required to drive a
                                                                                                    product focused operating model
                                Focus on business value
                                Financial transparency – both on the cost and benefits side of    ▪ Ability to articulate the case for change, value being captured, and
                                the equation is key to demonstrate business value of complex        the cost to successfully execute the transformation journey
                                transformation programs

                                                                                                  ▪ Program decisions anchored towards enabling talent to operate
                                Consider impact on people                                           effectively in the future state model, providing transparent view to
                                Prepare internal talent and external stakeholders to manage the     future roles, and enhancing business alignment
                                change inherent in a new target model

                                Recognize opportunities to transform                              ▪ Clear identification of capabilities required to operate in an ever-
                                Enterprise wide programs are an opportunity to drive                changing environment
                                consistency, transform organizations, spur innovation, and        ▪ Ability to leverage technology advances to leap-frog traditional
                                generate true business value                                        capability maturity stages

                                                                                                  ▪ Comprehensive change and communications strategy and detailed
                                                                                                    plans to minimize program execution risk
                                Communicate early and frequently                                  ▪ Constant and open communication to help neutralize any latent
                                Reduce “noise” within the organization by planning early and        resistance to change
                                effectively articulating the case for change                      ▪ Manage strategic and operational disruptions that will occur during
                                                                                                    the transformation
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Remote Work Cloud Strategy

  The Value of the Cloud - Organizations are moving to Cloud computing to enable IT agility and greater cost controls through its on-demand model. The
  reasons to use Cloud are characterized by several strategic, economic, and architectural benefits
                                                                                                                        Benefits Overview
                                                                                                                                                           ▪ Depending on services purchased from the vendor,
                                                                                                                                          Managed
                                                           Managed                        Third-Party                                                        externally hosted Cloud services have the potential
                                                                                                                                          Operations

                                                                                                                        Strategic
                                                          Operations                      Ownership                                                          to shift the management burden
                                                                                                                                                           ▪ Hardware deployment and management potentially
                                                                                                                                          Third-Party
                                                                                                                                                             shifted to third-party
                                                                                                                                          Ownership

                                                                                                                                                           ▪ Workload portability due to virtualization
                                                                                                                                          Virtualized/
                                     Management                                                          Self-Service                                      ▪ Cost optimizations through use of shared services
                                     Automation                                                          Provisioning                   Shared Services
                                                                          CLOUD
                                                                                                                                                           ▪ Reduction in required time, energy and cost to

                                                                                                                        Economic
                                                                                                                                         Management
                                                                                                                                                             manage and administer infrastructure through ability
                                                                                                                                         Automation
                                                                                                                                                             to automate common tasks
                                                                                                                                                           ▪ Utility-based pricing based on usage
                                                                                                                                        Consumption-
                                                                                                                                                           ▪ Cost for hosting shifted from capex to opex
                                            Consumption                                          Elastic Resource                       Based Pricing
                                               Based                                                 Capacity
                                               Pricing
                                                                                                                                                           ▪ Ability to scale up and down based demand
                                                                                                                                        Elastic Capacity   ▪ Automated scaling ability

                                                                                                                        Architectural
                                                                         Virtualized /
                                                                       Shared Resources                                                                    ▪ Quick access to infrastructure and applications
                                                                                                                                         Self-Service
                                                                                                                                                           ▪ Provision without significant IT involvement for
                                                                                                                                         Provisioning
                                                                                                                                                             certain environments

                     Cloud computing offers increased agility through faster time to market, lower upfront IT capital expenditure and the ability to easily scale up / down and reallocate
                                                                                                 resources.

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