The author of the article says
“Yet one wonders if perhaps the biggest problem is that the whole concept of data-center sprawl, and the management thereof, remains obtuse to the initiated. As in, how the heck do CIOs explain this stuff to their CEO?”
Considering that the IT spend by a company is 3% to 7% on an average, isn’t CEO’s time mostly spent on the other 93% to 97% spend?..
In the over all realm/context of a business how important is IT?...
Gilad,
I agree and I think you have an excellent point.
That is why I always told folks like Nicholas Carr, when he says IT doesn’t matter….why not shut down your data center for a week or a month see how much IT matters!.
Although IT spend may be 5% to 10%, its contribution to a company’s bottom line/revenues/profits is generally much more.
The question is how many CEO’s realize this?....
Interestingly if they realize this (the fact that IT data center contributes lot more to their bottom line than their spend), they might be LOT more careful/reluctant to move to public clouds.
They might prefer private clouds because what they loose (revenues) if something goes wrong (in the public clouds and out of their control) is much more than what they gain (cost savings)
Regards,
Rao
In my experience, many CEOs do not want explanations from CIOs. In fact, they rarely want to hear from their CIO, because it usually means bad things are happening J
As for spend, CEOs do indeed look at that, especially on public companies. A difference of 1% can make or break a quarter, which in turn can make or break the market cap for your company and the CEO’s compensation. So, while 3-7% doesn’t sound like a lot, it absolutely is. 1% of a billion-dollar revenue quarter means 10 million on the bottom line, and that 10 million can make or break a quarter, easily. Quite often, if you’re a public company and you miss by $.01/share, you get hammered by the Street.
Rob
From:
cloud-c...@googlegroups.com [mailto:cloud-c...@googlegroups.com] On Behalf Of Rao Dronamraju
Sent: Thursday,
November 05, 2009 11:53 AM
To:
cloud-c...@googlegroups.com
No virus
found in this incoming message.
Checked by AVG - www.avg.com
Version: 9.0.698 / Virus Database: 270.14.52/2483 - Release Date: 11/05/09
13:52:00
“Carr is referring to relative value not absolute. If you bring a gun (new technology) to a knife fight you have a technologically driven strategic advantage, and as technology shifts to rifles, machine guns, and other new (technology) weaponry one can maintain that advantage, but what happens when those advantages come to an end and everyone has the same armament (technology)? At that point, technology no longer offers an advantage over the competition and as Carr pronounced, IT doesn't matter any longer (not in an absolute sense, but relative).”
We live in a society/world that is driven by mass production and standardization which is necessary for economies of scale. So everyone having the same gun is inevitable. This happens with all industries. For instance, auto manufacturers all of them have the same or similar IC engines, tranmissions, chasis etc etc. So does auto manufacturing matter?...They diffentiate themselves in many other ways. The only way you maintain a competitive advanatage is continuous innovation and differentiation. IT is no exception. If IT is a major contributor to the bottom line of a companies revenues, IT matters! through non-stop innovation and differentiation. For IT companies to survive and thrive, they have to continuously innovate new products and services which will continuously be used by other industries. So Nicholas Carr’s basic assumption is that innovation at some point comes to an end and value it provides will be stagnant. I think IT industry hasn’t come to that stage yet and it is probably 50 years away from it. So Nicholas Carr is too premature in his assessment of IT (doesn’t matter).
No, CC is will happen it is just a matter of time. It might take a while but the business and economics behind it is undenaibly good.
It is good to look at all different perspectives, dimesions and angles of CC to understand it in the best possible way.
Kind Regards,
Tarry Singh
CEO/Founder, Avastu
Research-Analysis-Ideation
"Start your company with your ideas. Today!"
Amsterdam, The Netherlands
Business Cell: +31630617633
Private Cell: +31629159400
LinkedIn: http://www.linkedin.com/in/tarrysingh
Blogs: http://www.ideationcloud.com
Follow me on Twitter: http://twitter.com/tarrysingh
Hey,
Aren't both a way to winning in the long run which reminds me of the innovation lifecycle from Clayton M. Christensen's book The innovators dilemma. When the present solution starts overacheiving new disruptive things come into the market, look at the diagrams below.
http://digvijaysinghrathore.spaces.live.com/blog/cns!AF10AFF9F709C2EC!196.entry
The curve shown in the book moves to be a new cycle on another plan as things become commodity. Digvijay "VJ" Singh
|
> From: Peglar, Robert <Robert...@xiotech.com> > Subject: [ Cloud Computing ] Re: HP Revs Data Center Strategy, Stabbing At Cisco |
> To: cloud-c...@googlegroups.com > Date: Friday, 6 November, 2009, 5:39 PM > > Good points, @Rao. > > So, which force wins in the long run? > > Innovation/differentiation, or > mass-scale/standardization/commoditization? > > Rob > > -----Original Message----- |
> From: cloud-c...@googlegroups.com > [mailto:cloud-c...@googlegroups.com] > On Behalf Of Rao Dronamraju > Sent: Thursday, November 05, 2009 9:58 PM > To: cloud-c...@googlegroups.com > Subject: [ Cloud Computing ] Re: HP Revs Data Center > Strategy, Stabbing At Cisco > |
> From: cloud-c...@googlegroups.com > [mailto:cloud-c...@googlegroups.com] > On Behalf Of Ray DePena > Sent: Thursday, November 05, 2009 9:02 PM > To: cloud-c...@googlegroups.com > Subject: [ Cloud Computing ] Re: HP Revs Data Center > Strategy, Stabbing At > Cisco > > > > @Jan, > > Sometimes I wonder the same thing. CC could be a > massive black hole or lead > to growth of numerous new areas - only time will tell I > suppose. At least > with the advent of the PC and Bill's pronouncement of a PC > in every home you > could see a path to growth. With CC it's a mixed > bag. I'm certainly not > seeing a cloud in every home.... > > @Rao, re: your comment - > > "That is why I always told folks like Nicholas Carr, when > he says IT doesn't |
> matter....why not shut down your data center for a week or |
> matter....why not shut down your data center for a week or |
> a month see how > much IT matters!. > > > > Although IT spend may be 5% to 10%, its contribution to a > company's bottom > line/revenues/profits is generally much more. > > > > The question is how many CEO's realize this?.... > > > > Interestingly if they realize this (the fact that IT data > center contributes > lot more to their bottom line than their spend), they might > be LOT more > careful/reluctant to move to public clouds. > > They might prefer private clouds because what they loose > (revenues) if > something goes wrong (in the public clouds and out of their > control) is much > more than what they gain (cost savings) > > > > Regards, > > Rao > > > > _____ > |
> No virus found in this incoming message. > Checked by AVG - www.avg.com > Version: 9.0.698 / Virus Database: 270.14.52/2483 - Release > Date: 11/05/09 13:52:00 > > |
The INTERNET now has a personality. YOURS! See your Yahoo! Homepage. |
Ray,
Clouds and beyond is going to be IT but not Information Technology….Intelligence Technology!
It is going to be an era of IaaS – Intelligence as a Service!., Innovation as a Service!.
In addition, why would you think areas other than cloud will vanish?....
What will happen to Mobile/Pervasive/Ubiqutous Computing. Infact this area is going to complement clouds and grow tremendously.
The pervasive computing will grow lock step with clouds.
In addition, I have been working on Wearputers and Wearable Computing for 5+ years. This area has not grown as fast as I would love to see, but Wearputers will be the wave of the future, next 10+ years.
Wearputers will complement Pervasive Computing.
Ray,
The title of the artcile sounds as if one should bolt from IT or stay put, but the substance of the article is vague.
I am not worried about “the days of general IT are over” as you put it.
Clouds alone will take 10 to 15 years. Even assuming that IT (Information Technology or Information Processing) might be at peril after that,
Think of automation of the world. This is not very different from IT. After you have processed the information/intelligence, you interface with the mechanical world to execute.
This itself takes anywhere between 50 to 100 years for quantitative and qualitative automation of the world.
So I am not really worried about vanishing careers, it just takes a lot more interesting detour IMO.