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TOC ENTERPRISE IT IN 2012 By Bob Hayward Chie Technology and Innovation Ocer, CSC Australia and CSC Asia T O P 10 TECHNOLOGY TRENDS

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TOC

ENTERPRISE IT

IN 2012By Bob Hayward

Chie Technology and

Innovation Ocer,

CSC Australia and CSC AsiaTOP

10TECHNOLOGY

TRENDS

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TOC10987654321TREND

Competition in this space has become brutal. Patent battles

and deals to acquire rms with important patent assets are

commonplace headlines in the news. Even the incumbent

avourite or enterprise mobility — RIM with their BlackBerry

devices — stumbled badly during the past 12 months.

BE MORE SOCIAL

Other consumer rms and technologies that orced en-

terprise IT to respond in 2011 included Twitter, Facebook,

LinkedIn and a number o other social media sites.

Having a presence in social media, using the sites to glean

sentiment and market insights, and emulating them through

corporate-sanctioned acsimiles were priorities o enterprise

IT in 2011.

High-prole incidents in 2011 involving WikiLeaks, Sony,

RSA and Epsilon changed the way we think about inorma-

tion security. Now all enterprises must continually assess

their levels o protection and treatment o sensitive data.

2011 was not a banner year or systems reliability and

availability. Serious website outages aected Common-

wealth Bank, Qantas, Virgin, RIM, Distribute.IT, the ASX

and the Australian Parliament.

GET YOUR HEAD IN THE CLOUDS

Yet, i there was one prevailing ray o hope during the

darker days o 2011, the one answer that could change

everything, it was ‘the Cloud’. Enterprises started to un-

derstand cloud services. They considered the increasing

number o choices and options rom cloud service providers

as serious alternatives to the normal delivery o IT services.

During the last year, we started to discuss the phenomenon

o ‘big data’ as we grasped the potential to use a growing

variety o data architectures to more optimally support

diverse workload requirements. No longer is the answer

always a SQL database.

The IT industry lost many pioneers and innovators in 2011,

including one o the greatest o all time. Steve Jobs let

us at ar too early an age. Other greats who have sadly

departed include Ken Olsen, Dennis Ritchie, John McCarthy

and Robert Morris. The part o the Baby Boomer generation

that gave birth to this incredible IT industry is now

reaching its twilight.

It’s time to look back over 2011 and try to discern the key technologies

and trends likely to be top o mind or enterprise IT in 2012.

Innovations, products and concepts rom the consumer world contin-

ued to dominate enterprise technology during 2011. This trend started

more than 10 years ago and shows no sign o slowing down.

Finishing the year as the world’s second-largest PC frm, Apple contin-

ues to grow at a phenomenal rate. Their innovations uelled the explo-

sion o smartphones and tablet devices. In 2011, the post-PC era arrived,

and who would have guessed just 5 years ago that Apple (iPads, iPods),

Google (with Android), Samsung (Galaxy) and Amazon (Kindle Fire)

would emerge as the major players?

TOP

10TECHNOLOGY

TRENDS

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HEAD FOR THE CLOUDS

REWRITE HISTORY

MORE IS BETTER NOW

CLOSE THE DIVIDE

OPEN THE PIPELINE

MOBILITY FOR EVERYONE

WORK ANYWHERE

KEEP KNOW-HOW

GREEN IT IS IN FULL BLOOM

FINDING TALENT EVERYWHERE

TOC10987654321TREND

The Sky Is Not the Limit

A Legacy Transormed

Big Data

Convergence o IT and OT

Strategic Leaking

Post-PC Era

The User Is the Universe

Rapid Knowledge Capture

Taking IT Seriously

Collaborate Without Borders

1

2

3

45

6

7

8

9

10

SO WHAT DOES 2012 HOLD IN STORE?

I predict a lot more o the same. Consumer tech disruptionswill drive agendas, even within the largest o enterprises.

2012 is shaping up to be tough or business, with a great

deal o uncertainty about the economic outlook in Europe

clouding global sentiment. Unless something changes

soon, economic growth will be slow during the next several

months. Business will pare IT budgets to the bone. Every-

thing that can be pushed back or deerred will be.

Nevertheless, the momentum behind technology-enabled

business growth and innovation remains strong. IT

investment does not come to a complete stop as in-ight

projects continue.

DELIVER CHEAPER AND BETTER

For 2012, Gartner still project over US$2.7 trillion o global

enterprise spending on inormation and communications

technology. CSC’s Leading Edge Forum (LEF) has identi-

ed, as the service economy o the new world matures, that

enterprise is changing its view o IT rom a choice between

lower costs and more value to a new view where cheaper

and better is the new norm.

In this new world, enterprise IT unctions must reduce

their back-ofce ocus so they can keep up with the

explosion o technology at the ront o the company.

As a result, enterprises in Australia will be casting their

eyes over several technology trends in 2012, trying to

discern the right time and the best approach to take

the best advantage.

Here are my top 10 technology trends or

enterprise IT in 2012:

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THE SILVER LINING FOR ENTERPRISE IT

The cloud bandwagon rolls on, transorming and redeningservice availability in its path. The ve dening elements o

a cloud service (elasticity, on-demand, metered consump-

tion, shared resources and Web access) start to become

the deault means by which new IT services are rolled out

and implemented. Cloud elements are made available in the

public, private, community and hybrid models to support

inrastructure, platorm, sotware, and business process

service types.

Improved agility and removal o all the impediments or

innovation become the most signicant advantages gained

by choosing cloud.

There are subtle changes underway as the overall adop-

tion o cloud increases. The growing need or transparency,

trust and governance will gradually lead to the emergence o

voluntary industry codes o conduct, trust marks and conor-

mance to emerging standards, like the CloudTrust Protocol.

Currently, weak scrutiny by SMEs and consumers on the

credentials o cloud providers will adjust to reect growing

concerns over treatment o data, privacy and security. And

larger enterprises remain somewhat cautious about using

global public clouds. These public cloud ‘take it or leave

it’ oerings do have a role to play in modern enterprise IT,

and leading organisations will always nd some part o the

portolio o IT to run here. But they are not that interested

in running the majority o their portolio in oshore clouds,

or clouds that might be reached through the public Internet

using raudulent credentials and currency.

As a result, enterprises start to lean towards clouds that

are inaccessible rom the public Internet. Participation is

by invitation only to selected like-minded enterprises. The

participants will be in-country, and usually in community

or private clouds. And service delivery is by reputable

providers with a pedigree in handling sensitive

enterprise requirements.

HEAD FOR THE CLOUDS

The Sky Is Not the Limit

The growing need ortransparency, trust and

governance will gradually

lead to the emergence o

voluntary industry codes o

conduct, trust marks and

conormance to emerging

standards, like the

CloudTrust Protocol.

1

TREND

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THE DEMISE OF LEGACY ASSETS

The huge inventory o legacy systems and applications is asubstantial part o many enterprise IT portolios. And yet it

is missing out on all the exciting innovation rom consumer

tech, cloud and mobility.

Something has to be done.

Legacy systems cost a ortune to operate. They voraciously

consume scarce energy using outdated hardware and

lazily operate obsolete sotware/languages with

dwindling expertise.

Enterprises in 2012 start to seriously consider retiring,replacing or decommissioning legacy assets. And many will

look to transorm legacy to more contemporary languages

(Java, C#, Ruby) and environments (x86, cloud) using a

growing number o automated and semi-automated tools

now coming into the market. The costs o inaction are now

outweighed by the benets o using more contemporary IT

environments.

REWRITE HISTORY

A Legacy Transormed

2

TREND

Enterprises in 2012 start

to transorm and seriously

consider retiring, replacing or

decommissioning legacy assets.

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MORE IS BETTER NOW

THE REVOLUTION CHANGING EVERYTHING

The potential value o gaining insights rom analysing largeand increasingly unstructured data sets has hit mainstream.

So be prepared or ‘big data’ questions rom your business.

CSC’s recent Leading Edge Forum (LEF) report The Data

rEvolution revealed the impressive range o data-intensive

technologies, applications and uture possibilities. But the

gap between the promise and the reality o big data

usage is still wide.

In 2012 many organisations will try to apply the new

shared-nothing architecture and distributed processing

rameworks to store, process and manage business

inormation. By the end o 2012, IT strategy andarchitecture vocabulary will grow to include terms

like MapReduce, Direct Record Access or Queries,

NoSQL Databases, Parallel Relational Databases,

Hadoop (MapReduce engines) and many more.

A word o caution ...

Big data means big backups and big recovery. Enterprises

that do not engage comprehensive disaster recovery plan-

ning are playing with re.

Big Data

3

TREND

Be prepared or ‘big data’

questions rom your business.

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CLOSE THE DIVIDE

WE’RE NOT AT A CROSSROADS.

WE’RE AT AN INTERSECTION.

Business will look to exploit the increasing convergence

between traditional inormation technology (IT) used across

enterprises and operational technology (OT) used to sup-

port production and control assets. IT/OT convergence

promises to integrate machines with enterprise systems,

driving value-based optimisation and bullet-proo reliability.

While IT has matured in reliability, its convergence with OT

will not rapidly expand the traditional patch o enterprise

IT as some are promising. The convergence is happening

at dierent paces and it depends on the operational stack

you are talking about (e.g., MES/SCADA, control, intelligent

sensors) and the industry you are dealing with (e.g.,

manuacturing, mining, deence).

Nevertheless, we expect that in 2012 enterprise IT will

increasingly work in the operational space. But the ocus

or enterprise IT must address the age-old divide between

OT managers (mainly engineers) and their IT counterparts.

This convergence o ‘white collar’ and ‘blue collar’

enterprise technologies will be given many names: the

Internet o Things, Smart [name your thing here],

Machine to Machine and IT/OT, to name a ew.

Convergence o IT and OT

4

TREND

While IT has matured in reliability,

its convergence with OT will not

rapidly expand the traditional

patch o enterprise IT assome are promising.

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OPEN THE PIPELINE

THE POWER OF INFORMATION TRANSPARENCY

The 2011 disclosures o hundreds o thousands o U.S. StateDepartment diplomatic cables by WikiLeaks led CEOs,

CIOs and senior managers to ask, “How can I lock down

my organisation’s inormation and make sure this doesn’t

happen to me?”

It is becoming increasingly clear, however, that companies

will have to become more transparent, whether they want

to or not.

In 2012 we expect that the more strategic rms will ask a

completely dierent question: “What data and inormation

that we’ve always considered condential should we be

making available online — and how could we leverage thedisclosure o that inormation?”

As part o ongoing Leading Edge Forum (LEF) research,

CSC has ound that organisations that practice strategic

leaking will gain big advantages over their competitors in

a wide variety o ways: better publicity; deeper customer

loyalty and trust; more satised and motivated employees;

stronger links to vendors, contractors and partners;

improved recruiting; and better relations with investors.

Strategic Leaking

5

TREND

It is becoming increasingly clear

that companies will have to

become more transparent,

whether they want to or not.

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MOBILITY FOREVERYONE

6THE CONSUMERISATION OF IT

Smart, context-aware, mobile devices and enterpriseapplications that exploit the latest devices are making the

traditional desktop/laptop computer seem old-ashioned,

unintuitive and generally a drain on productivity. In

combination with in-built location-based presence,

augmented reality and sensors, employees are exposed

to a new way o interacting with the digital world.

2012 will be the year that these truly mobile devices and

applications become pervasive across the enterprise (in the

new post-PC era). Enterprise IT must nd ways to embrace

this trend so it does not end up on the wrong side o history.

Enterprise IT must make signicant changes in procurement,vendor management, employee support, security policies

and legal compliance. This became clear as part o the

CSC Leading Edge Forum (LEF) ongoing study o the

accelerating consumerisation o IT.

Designing enterprise applications that redene

productivity using the newly emerging interaces o smart

devices will be a critical competitive dierentiator.

Exploiting voice (think o the longer-term impacts o

Apple’s Siri on the iPhone 4S) and gesture- and

expression-recognition technologies. Leveraging

improved real-time translation capabilities and using

video and augmented reality. These will be the new

skills o the transormative developer.

TREND

Post-PC Era

Enterprise IT must fnd ways to

embrace this trend so it does not

end up on the wrong side o history.

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THE ENTERPRISE IS NO LONGER THE CENTRE

I we are indeed in a post-PC trend, then enterprise ITwill require a greater level o understanding o our new

perimeter at the edges. With increasing mobility, users are

able to work anywhere, on any device and over any network

(business, shared or third-party). Robust access like this

raises notable security concerns.

Traditional enterprise will grow beyond its accustomed

perimeter, moving out to the edges. With stories o

high-prole data breaches constantly in the news, security

identity management will be in the spotlight. In 2012,

orward-thinking organisations will understand the new

perimeter and change current enterprise-centric

approaches to a new user-centric ederated identity

management approach.

WORK ANYWHERE

7

TREND

The User Is the Universe

Traditional enterprise will growbeyond its accustomed perimeter,

moving out to the edges.

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KEEP KNOW-HOW

8THE DRIVE TO RETAIN RETIRING BABY BOOMERS

There are thousands o baby boomers retiring now everyyear. Many are irreplaceable, and unortunately there are

simply not enough people to take their place. The result: a

huge loss o critical knowledge and IP, most o which is tacit

know-how built up over years o experiences that can’t be

easily transerred.

The mass exodus, or ‘great crew change’ as some

industries have labelled it, will drive targeted spending

on rapid knowledge capture, storing and transerence.

In 2012, expect to see the use o virtual environments

to communicate key business processes. New human–

computer interaces, like Microsot Kinect and Augmented

Reality, could allow some retirees to remotely stay on the

 job, shadowing and interacting with their younger peers.

In particular, organisations leverage principles rom thecomputer gaming industry to make business processes and

education ‘sticky’ (addictive). The gaming sector denitely

has the user engagement ormula nailed. The 2011 launches

o Call o Duty: Modern Warare 3 and Battleeld 3 were

larger than any Hollywood blockbuster movie during the year.

So stay tuned to hear the phrase ‘gamication’ a lot more.

TREND

Rapid Knowledge Capture

The mass exodus, or ‘great crew

change’ as some industries have

labelled it, will drive targeted

spending on rapid knowledge

capture, storing and transerence.

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GREEN ITIS IN FULL BLOOM

9THE URGENCY TO PAINT IT GREEN

IT sustainability has dropped o in importance due toglobal nancial uncertainties. But the introduction o a

carbon tax in Australia and rising energy costs will orce

enterprises to take sustainable IT seriously.

The visibility and urgency o electricity spending —

especially in Australia, where the public grid energy is

almost entirely produced rom coal — will rapidly rise up the

corporate hierarchy. In 2012 IT will lead the deployment o

better tools required or detailed reports on energy use by

business unit across the IT inrastructure, and to track

continuous improvements in energy, ethical waste removaland water use. Nationally, initiatives such as Mandatory

Energy Perormance and Government-led product

stewardship will place sustainability rmly on any

enterprise IT agenda.

IT use o energy is projected to grow our-old between

now and 2020. But the IT systems deployed in areas such

as smart grids, intelligent buildings, optimised supply chains

and eet management should help oset energy use

as they utilise improved efciencies across industries

and economies.

By the prudent and ocused investment in intelligent ITsystems in building management, supply chain, transport,

logistics and energy production/distribution, the national

goals o achieving carbon emission reductions in excess

o 25% by 2020 can be achieved (without the need or a

tax or trading scheme).

TREND

Taking IT Seriously

IT use o energy is projectedto grow our-old between

now and 2020.

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FINDING TALENTEVERYWHERE

10

TREND

Collaborate Without Borders

THE EMPHASIS ON OFFSHORING KNOWLEDGE

AND PROCESS

The global search or talent and insight at a competitiveprice will drive an increased emphasis on oshoring o

knowledge work and the outsourcing o business processes

in 2012. A readiness to go outside the organisation or

skills and eedback will also raise the acceptance o

crowd-sourcing and the use o social media to converse

with the market, stay alive to new opportunities, generate

ideas and create content. Technologies that enable or

acilitate collaboration across the world in virtual teams

will be major areas o investment.

Technologies that enable oracilitate collaboration across the

world in virtual teams will be major

areas o investment.

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What do youthink will be

on the agenda

o enterprise IT

in 2012?

ADDITIONAL INSIGHTS:

CSC Chie Innovation Ofcer Lem Lasher’s IT-BusinessPredictions or 2012

CSC Chie Innovation Ofcer Lem Lasher’s IT-Business

Predictions or 2012 (Video)

CSC’s Leading Edge Forum

Gartner Predictions 2012

IDC Australian ICT 2012 Top 10 Predictions 

Ovum Super Themes in 2012

So, what’s the point here? Well, i you’re not actively discussing or

even debating and assessing the implications o these trends in

your organisation, then enterprise IT is not doing its job. It’s

imperative that your organisation understand these trends and

incorporates them into strategic thinking. It will help you create

new ways o doing things. Find better markets. Rise above the

competition. And thrive in this ast-paced and ever-growing,

innovative world.

N SUMMARY

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Macquarie Park, NSW 2113

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About CSC

The mission o CSC is to be a global leader in providing technology-enabled business solutions and services.

With the broadest range o capabilities, CSC ofers clients the solutions they need to manage complexity,

focus on core businesses, collaborate with partners and clients and improve operations.

CSC makes a special point o understanding its clients and provides experts with real-world experience to

work with them. CSC is vendor independent, delivering solutions that best meet each client’s unique requirements.

For more than 50 years, clients in industries and governments worldwide have trusted CSC with their business

 process and information systems outsourcing, systems integration and consulting needs.

The company trades on the New York Stock Exchange under the symbol “CSC.” 

For more inormation, visit the company’s website at www.csc.com/au

or email [email protected]

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