Welcome!

Weblogic Authors: Yeshim Deniz, Elizabeth White, Michael Meiner, Michael Bushong, Avi Rosenthal

Related Topics: Weblogic, Java IoT, Microservices Expo, IBM Cloud, Linux Containers, Recurring Revenue, Artificial Intelligence, Log Management, Server Monitoring, @CloudExpo

Weblogic: Article

The End of IT 1.0 As We Know It Has Begun

Cloud computing is a shot across the bow for the giants of the IT industry

Innovation Journal on Ulitzer

The time has come to declare the beginning of the end for the traditional approach to Information Technology.  The party is over.

The End of IT 1.0 As We Know It – has begun.  To borrow a phrase from my previous IBM colleagues who wrote, “The End of TV As We Know It” with which I became familiar while working on IP Television (IPTV).

You may wonder whether it’s too early to make the call given the lack of interoperability standards, security concerns, and common definition of cloud computing.  Well, the IPTV space shares many of the same similarities – emerging technology, emerging standards, emerging adoption, varying definitions, and yet the call was made in that space.

Cloud computing is a shot across the bow for the giants of the IT industry.  They are on notice.  Certainly, some will make the transition, slowly, at the speed which the overall market develops or slower, as they have no incentive to drive the market and rapidly cannibalize their existing businesses for a less lucrative business model even if it is more cost effective, flexible, and efficient for most of their clients.

Just think of the companies that provide hardware, software, services, consulting and systems integration.  Now consider the cloud computing paradigm.

  • No packaged software to order, install, configure, test, implement, manage, support, and maintain on client premise.
  • No hardware to order, install, configure, test, implement, manage, support, and maintain on client premise.
  • No hardware and software / systems integration on client premise.

Now look at the companies that provide these services today, EMC, HP, IBM, Oracle, SAP, Accenture, Infosys, and others.  Are these giants ready to quickly accelerate the cannibalization of their own product and services offerings?  Will they transition from mega projects to micro projects?  How will many of these companies who rely upon an on-premise installed base make the transition to the much lower revenue model that cloud computing represents?

To be fair, most of the high tech leaders already have cloud computing groups, and many of the technologies that underpin cloud computing capabilities comes from these very companies.  Certainly, they face many challenges ahead as the industry further transitions to this computing paradigm.

One can easily see the giants of IT playing with other large non-IT industry leaders which will leverage cloud computing through an on premise model, and provide many custom services for those clients.

Besides, for many years to come there will still be a need for large (non-cloud) IT projects and large, financially stable companies to undertake those, that’s why it’s not the end of the end, or the middle of the end, but the beginning of the end for some companies, as not all will survive the transition.

Not to worry though, traditional IT will still be around for many years to come, even if the days of traditional IT are numbered.

More Stories By Ray DePena

Ray DePena worked at IBM for over 12 years in various senior global roles in managed hosting sales, services sales, global marketing programs (business innovation), marketing management, partner management, and global business development.
His background includes software development, computer networking, systems engineering, and IT project management. He holds an MBA in Information Systems, Marketing, and International Business from New York University’s Stern School of Business, and a BBA in Computer Systems from the City University of New York at Baruch College.

Named one of the World's 30 Most Influential Cloud Computing Bloggers in 2009, Top 50 Bloggers on Cloud Computing in 2010, and Top 100 Bloggers on Cloud Computing in 2011, he is the Founder and Editor of Amazon.com Journal,Competitive Business Innovation Journal,and Salesforce.com Journal.

He currently serves as an Industry Advisor for the Higher Education Sector on a National Science Foundation Initiative on Computational Thinking. Born and raised in New York City, Mr. DePena now lives in northern California. He can be followed on:

Twitter: @RayDePena   |   LinkedIn   |   Facebook   |   Google+

Comments (1) View Comments

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.


Most Recent Comments
JulesLt 03/05/10 06:19:00 PM EST

While I can see many advantages for deployment, I don't see how Cloud computing will save clients from configuration, testing and implementation of software on site - unless businesses use 'out of the box' software packages, and adapt their processes to the software - and where they do that, they're not using IT to gain competitive edge.

A good example would be to look at the growing market for Salesforce.com consultants - there's always going to be a role for analysing and converting business requirements into a logical workflow, and confirming the solution does the job - what changes over time is the amount that is code and amount that is configuration.

The advantages of off-siting may also be exaggerated - x86 servers are getting pretty cheap these days, and increasingly easy to administer (particularly as vendors start supplying pre-configured VM images) and a well utilised local cloud may be more cost effective than large amounts of off-site bandwidth - but of course it depends on the firm.

IoT & Smart Cities Stories
The deluge of IoT sensor data collected from connected devices and the powerful AI required to make that data actionable are giving rise to a hybrid ecosystem in which cloud, on-prem and edge processes become interweaved. Attendees will learn how emerging composable infrastructure solutions deliver the adaptive architecture needed to manage this new data reality. Machine learning algorithms can better anticipate data storms and automate resources to support surges, including fully scalable GPU-c...
Machine learning has taken residence at our cities' cores and now we can finally have "smart cities." Cities are a collection of buildings made to provide the structure and safety necessary for people to function, create and survive. Buildings are a pool of ever-changing performance data from large automated systems such as heating and cooling to the people that live and work within them. Through machine learning, buildings can optimize performance, reduce costs, and improve occupant comfort by ...
The explosion of new web/cloud/IoT-based applications and the data they generate are transforming our world right before our eyes. In this rush to adopt these new technologies, organizations are often ignoring fundamental questions concerning who owns the data and failing to ask for permission to conduct invasive surveillance of their customers. Organizations that are not transparent about how their systems gather data telemetry without offering shared data ownership risk product rejection, regu...
René Bostic is the Technical VP of the IBM Cloud Unit in North America. Enjoying her career with IBM during the modern millennial technological era, she is an expert in cloud computing, DevOps and emerging cloud technologies such as Blockchain. Her strengths and core competencies include a proven record of accomplishments in consensus building at all levels to assess, plan, and implement enterprise and cloud computing solutions. René is a member of the Society of Women Engineers (SWE) and a m...
Poor data quality and analytics drive down business value. In fact, Gartner estimated that the average financial impact of poor data quality on organizations is $9.7 million per year. But bad data is much more than a cost center. By eroding trust in information, analytics and the business decisions based on these, it is a serious impediment to digital transformation.
Digital Transformation: Preparing Cloud & IoT Security for the Age of Artificial Intelligence. As automation and artificial intelligence (AI) power solution development and delivery, many businesses need to build backend cloud capabilities. Well-poised organizations, marketing smart devices with AI and BlockChain capabilities prepare to refine compliance and regulatory capabilities in 2018. Volumes of health, financial, technical and privacy data, along with tightening compliance requirements by...
Predicting the future has never been more challenging - not because of the lack of data but because of the flood of ungoverned and risk laden information. Microsoft states that 2.5 exabytes of data are created every day. Expectations and reliance on data are being pushed to the limits, as demands around hybrid options continue to grow.
Digital Transformation and Disruption, Amazon Style - What You Can Learn. Chris Kocher is a co-founder of Grey Heron, a management and strategic marketing consulting firm. He has 25+ years in both strategic and hands-on operating experience helping executives and investors build revenues and shareholder value. He has consulted with over 130 companies on innovating with new business models, product strategies and monetization. Chris has held management positions at HP and Symantec in addition to ...
Enterprises have taken advantage of IoT to achieve important revenue and cost advantages. What is less apparent is how incumbent enterprises operating at scale have, following success with IoT, built analytic, operations management and software development capabilities - ranging from autonomous vehicles to manageable robotics installations. They have embraced these capabilities as if they were Silicon Valley startups.
As IoT continues to increase momentum, so does the associated risk. Secure Device Lifecycle Management (DLM) is ranked as one of the most important technology areas of IoT. Driving this trend is the realization that secure support for IoT devices provides companies the ability to deliver high-quality, reliable, secure offerings faster, create new revenue streams, and reduce support costs, all while building a competitive advantage in their markets. In this session, we will use customer use cases...