Frank Gens, SVP & Chief Analyst, IDC

Richard Villars, VP, Storage & IT Executive

Strategies, IDC

Robert Mahowald, Research Vice President, SaaS &

Cloud Services, IDC

Dave McNally, IT Executive Advisor, IDC

State of Technology: A Round of

Lightning Insights with IDC Analysts

IT Industry Transformation

Frank Gens

Infrastructure & Data

Rick Villars

Applications & Platforms

Robert Mahowald

IT Leadership

Dave McNally

The Agenda

X 3

Cloud’s About Much More Than the Cloud The “Third Platform” for IT industry growth is emerging

Millions of new apps and services will be built on it

These apps and services will be built on innovative mash-ups of cloud, mobile devices, mobile apps, social technologies, big data/analytics, and more

IT Industry Transformation

Frank Gens

Approaching Limits of Today’s Converged IT

Shared Cache Drives the Next DC Makeover

2. Today’s Converged IT Solutions Aren’t the Endpoint of Your Data Center Transformation

Infrastructure & Data

Rick Villars Target loads per server for large enterprises and SPs

Silos Convergence

3. “Bring Your Own License” Means Real Deployment Choice

Applications & Platforms

Robert Mahowald Lowers the cost barrier for SPs to offer hosting

services for major apps (Microsoft, SAP, Oracle)

Eases audit/compliance requirements for IT orgs Opens the door to place licensed SW in multiple locations for single cost – AND use ISV clouds Smooths transitions to using Cloud

38% of 2011 cloud survey respondents:

“Current SW EA & license agreements are primary obstacles to greater Cloud use”

Shared HW

APP VM

APP VM

AWS

Shared OS

APP VM

A B C

HW

APP VM APP

VM

OS

Customer Premise

Architecture moves beyond the firewall

Development delivers Services not Apps

IT Sourcing complex cloud services

Vendors build Digital Supply Chains

4. Reorient IT around Services

USFOOD.com

P-Sys

Financials

P-Sys Divisions

14 Off-System Divisions

9 Operating Platforms

A-Sys Divisions

Sales Tool -

TRANSMIT

Sales Tool - EDGE

A-Sys

Financials

P-Sys

Operational

Reporting

A-Sys

Operational

Reporting

Off-sys Op. Rpt

Manual Consolidation

Central Forecasting

& Procurement

Div. Procurement

Div. Procurement

Off

-sys

P

roc.

Sales Data

W arehouse

Prom.

Allow. DB

Off-s

ys C

ust R

pt

A-Sys

Cust.

Rpt

P-Sys

Cust.

Rpt

• Mg

mt

Rep

t.

Off-sys Financials

1990’s 2000’s New Architecture

ERP HRIS CRM

Orchestration & Integration

Storage Private Cloud

IT Leadership

Dave McNally

of companies will have Cloud Services within

the year

Public Cloud Will Be > Important Than Private

IT Industry Transformation

Frank Gens

Gens’ Law: “Markets always follow solutions”…

Developers are voting with their feet for the Public Cloud

Your enterprise’s ability to exploit this avalanche of new services in the cloud depends on you getting good at using/managing public clouds

of new enterprise apps will be developed for

cloud in 2011

of 2015 spending on

enterprise apps will be via the cloud model

CSP have multiple roles in

today’s Big Data ecosystem

“Big Data” services must be part

of your cloud supplier’s portfolio

6. Big Data: Cloud SPs Grease The Skids

Infrastructure & Data

Rick Villars HDD capacity purchased directly by cloud service providers in 2010

7. IT Orgs Will Become Cloud Service Brokers

Applications & Platforms

Robert Mahowald

IT departments are increasingly multi-source, hybrid orgs, taking on the role of “services brokers”

IT depts want to manage internal and external services as a unified portfolio: costing, service quality, utilization, asset prioritization

Hybrid asset management, granular service metering, and chargeback, are critical to this new shape of IT as a service center

of Jan 2010 cloud survey respondents:

“Extremely/Very Important for our IT org to be involved in pre-sale/sale/purchase of our SaaS

Public Cloud Services

On-Premise Traditional & Private

Cloud Services

8.Disruptive Technology Disrupts Workforce

IT Leadership

Dave McNally

Cloud Impacts IT Professionals

Technology Roles are commoditized

Development replaced by Standard Services

Creativity shifts from Build to Buy

Where’s the Next Gen IT Workforce?

Business knowledge still in demand

New Roles and Skills needed

Gap in attracting College Graduates

1/3+ of Your Key Vendors Will Be “WikiTrivia”

IT Industry Transformation

Frank Gens

25 years ago, vendors faced a similar transition, to the “Second Platform”…

Industries are “digitizing”

Look for an SP with targeted solution, but

beware of “faux” offerings

10. Public Cloud: Even IaaS Will Go Vertical

Infrastructure & Data

Rick Villars

Intelligent Industry Solutions US enterprises using

or implementing intelligent industry

solutions

11. You Can’t Avoid the Personal Cloud

Applications & Platforms

Robert Mahowald

BYO Desktop, Devices, Apps, Content

Where personal life and work life meet

Data

Location

Social Graphing

Network preferences

Directory

Enterprise Private Cloud Public Clouds

in the workplace are employee owned/liable

PCs Smart phones Tablets

Future State CIO Role Off-loading commodity services

Seeking Competitive Differentiation

New Go-to-Market Strategies

Results . . . Rapid adoption of new Capabilities

Business Agility

12.Cloud Services enable a Focus on Innovation

IT Leadership

Dave McNally

CIOs hope to spend

of their time driving business

innovation

Takeaways…

IT Industry Transformation

Infrastructure & Data

Applications & Platforms

IT Leadership

Cloud can’t be planned, funded or executed without ties to mobility, social, big data and industry transformation

IT Operations are transforming: hardware & software (easy), process & skills (hard), supplier terms & relationships

IT Industry leadership is ripe for turnover, again

Enterprise IT leadership’s role and agenda are being disrupted