The Evolution from a Provider of Technology Components to a Broker of Technology Services

A 3 Part Series from Trevor Williamson

  • Part 1: Understanding the Dilemma
  • Part 2: Planning the Solution
  • Part 3: Executing the Solution, again and again…

Part 1: Understanding the Dilemma

IT teams are increasingly being challenged as bring-your-own-technology (BYOD) policies and “as-a-service” software and infrastructure multiply in mainstream organizations.  In this new reality, developers still need compute, network and storage to keep up with growth…and workers still need some sort of PC or mobile device to get their jobs done…but they don’t necessarily need corporate IT to give it to them.  They can turn to a shadow IT organization using Amazon, Rackspace and Savvis or using SAS applications or an unmanaged desktop because when all is said and done, if you can’t deliver on what your users and developers care about, they will use whatever and whoever to get their jobs done better, faster and cheaper.

Much of this shift toward outside services comes down to customer experience, or how your customers—your users—perceive their every interaction with IT, from your staff in the helpdesk to corporate applications they access every day.  If what you are delivering (or not delivering as the case may be) is more burdensome, more complicated or doesn’t react as fast as other service providers (like Amazon, Office 365, or Salesforce, etc.), then they will turn (in droves) toward those providers.

Now the question hanging heavy in the air is what do those providers have, except of course scale, that your IT organization doesn’t have?  What is the special sauce for them to be able to deliver those high-value services, quicker and at a lower cost than you can?

In a few words; IT Service Management (ITSM)…but wait!…I know the first reaction you might have is that ITSM has become a sour subject and that if you hear ITIL chanted one more time you’re going to flip out.  The type of ITSM I’m talking about is really the next generation and has only passing similarities to the service management initiatives of the past.  While it is agreed that ITSM has the potential to deliver the experiences and outcomes your developers and users need and want, today’s ITSM falls far short of that idea.  Process for process sake you’ve probably heard…but whatever, we are still measuring success based on internal IT efficiencies, not customer or financial value or even customer satisfaction. We still associate ITSM exclusively with ITIL best practices and we continue to label ourselves as providers of technology components.

As it turns out, the adage “You cannot fix today’s problems with yesterday’s solutions” is as right as it ever was.  We need to turn ITSM on its head and create a new way forward based on customer centricity, services focus, and automated operations.  We have to rethink the role we play and how we engage with the business.  Among the most significant transformations of IT we need to complete is from a provider of technology components to a broker of technology services. We have relied on ITSM to drive this transformation, but ITSM needs to change in order to be truly effective in the future. Here’s why:

   The roots of service management focus was on the customer:  “Service management” originated within the product marketing and management departments and from the beginning, service management placed the customer at the center of all decision making within the service provider organization. It’s the foundation to transform product-oriented organizations into service providers where the customer experience and interaction are designed and managed to cost-effectively deliver customer results and satisfaction.

  But when we applied service management to IT, we lost customer focus: Applying service management to information technology produced the well-known discipline of ITSM but, unfortunately, IT professionals associated it exclusively with the IT infrastructure library (ITIL) best practices, which focus on processes for managing IT infrastructure to enable and support services. What’s missing is the customer perspective.

   In the age of the customer, we need to proactively manage services via automation: In the age of the customer, technology-led disruption (virtualization, automation, orchestration, operating at scale, etc.) erodes traditional competitive barriers making it easier than ever for empowered employees and app developers to take advantage of new devices and cloud-based software. To truly function as a service provider, IT needs to first and foremost consider the customer and the customer’s desired outcome in order to serve them faster, cheaper, and at a higher quality.  In today’s world, this can only be accomplished via automation.

When customers don’t trust a provider to deliver quality products or services, they seek alternatives. That’s a pretty simple concept that everyone can understand but, what if the customer is a user of IT services that you provide?  Where do they go if they don’t like the quality of your products or services?  Yep, Amazon, Rackspace, Terremark, etc., and any other service provider who offers a solution that you can’t…or that you can’t in the required time or for the required price.

The reason why these service providers can do these seemingly amazing things and offer such diverse and, at times, sophisticated services, is because they have eliminated (mostly) the issues associated with humans doing “stuff” by automating commodity IT activities and then orchestrating those automated activities toward delivering aggregate IT services.  They have evolved from being providers of technology components to brokers of technology services.

If you’re looking for more information on BYOD, register for our upcoming webinar “BYOD Webinar- Don’t Fight It, Mitigate the Risk with Mobile Management

Next…Part 2: Planning the Solution

 

IBM Buys Butterfly

IBM Monday said it’s going to buy Butterfly Software, a privately held data
analysis and migration software firm in Maidenhead, England.

It would be nice to know what IBM is really doing with its stockpile of
analytics acquisitions or if it’s just taking them off the market. It expects to
generate $16 billion from business analytics by 2015.

read more

CTO, Comcast: “We believe in convergence; we believe in change”

Tony Werner

Tony Werner, executive vice president & chief technology officer of Comcast Cable in the US, talks about how Comcast is using innovation to keep the cable company at the forefront of the broadband market.

ISPs don’t come much bigger than Comcast. As the largest cable provider in the US, the company is also one of the largest broadband service providers in the world. As such, the decisions it makes in terms of technology and strategy will inevitably have an impact in other parts of the world.

IT leaders prepare for the arrival of the federated cloud

The future of the cloud is federated, and when you look at the broad categories of apps moving to the cloud, the truth of this statement begins to become clear.”  ~ Ditlev Bredhal, CEO, OnApp


And the federated cloud will be coming to a city near you, allowing your team to take advantage of a globally scattered array of datacentre infrastructure that will power the next generation of gaming apps, social media, e-commerce and online publishing applications.

While Virtual Internet continues to deploy new virtual datacenters in locations such as Singapore and Utah, there are considerable advantages to ‘sharing’ infrastructure from other Telcos, ISPs and providers who have built facilities in far-flung, remote areas, which do not include the VI footprint.

By the year 2015, it’s expected that over 15 billion devices will be connected to the Internet requiring massive bandwidth to satisfy the global demand.   No single hosting provider …

Microsoft Private Cloud 2.0 – BYOD Virtual Infrastructure

In my first contribution to the Allstream blog I introduced the concept of the Cloud-based workforce.
Here is an article that explains how this model can be achieved via the Microsoft Private Cloud platform.
Microsoft provides reference documents for describing their Private Cloud Fast-track best practices, which explains in detail how their core suite of Windows Server, Hyper-V and Systems Management Centre can be used to build internal ‘IaaS’ – Infrastructure as a Service.

read more

Driving the Demand for Cloud Computing

“No matter how good we get at Big Data analytics, we’ll never be able to accurately predict the future of technology,” noted John Gilmartin, VP of Product Marketing at Coraid, in this exclusive Q&A with Cloud Expo Conference Chair Jeremy Geelan. “This industry is changing fast, bringing ever greater value to end users,” Gilmartin continued. “The only sure bet is that technology will change even faster and in unexpected ways in the future.”
Cloud Computing Journal: Just having the enterprise data is good. Extracting meaningful information out of this data is priceless. Agree or disagree?
John Gilmartin: Definitely agree. Data in enterprises is growing at an unprecedented rate, over 50% year-on-year by some estimates. This growth in data represents both a challenge and an opportunity. IT administrators, faced with the daunting task of storing petabytes of data for their organizations, are turning to cloud architectures for flexibility, ease of management and responsiveness. Once they have a way to capture data, they need ways to mine the data for business insights. According to analysts, business intelligence is the number one priority for CIOs.

read more

Cloud Data Centers in Rural Locations — Gobbling Electricity, Throwing Their Weight Around

Very interesting in-depth article in the New York Times today on the sprawling, electricity-hungry data centers spawned by cloud computing.

Internet-based industries have honed a reputation for sleek, clean convenience based on the magic they deliver to screens everywhere. At the heart of every Internet enterprise are data centers, which have become more sprawling and ubiquitous as the amount of stored information explodes, sprouting in community after community.

the gee-whiz factor of such a prominent high-tech neighbor wore off quickly. First, a citizens group initiated a legal challenge over pollution from some of nearly 40 giant diesel generators that Microsoft’s facility — near an elementary school — is allowed to use for backup power.

Then came a showdown late last year between the utility and Microsoft, whose hardball tactics shocked some local officials.

These data centers are apparently not always good neighbors, and of course as they are there to serve our cloud needs we’re all complicity to some degree.


Cloud Expo Silicon Valley: Amplifying the Power of Cloud Computing

When the advent of Infrastructure-as-a-Service first took hold a few years back, virtualization of the network was nothing but a pie in the sky idea. Fast-forward a few years and the race to achieve network virtualization is reaching the finish line.
In his session at the 11th International Cloud Expo, James Meredith, a product manager for the Rackspace Open Cloud, will discuss how software-defined networking (SDN) will break down another barrier to entry for cloud, pros and cons and everything else in between you need to know to optimize the network in the cloud.

read more

Parallels and IBM Join Forces at Telemanagement Forum South Africa

 

This post is from Matt Vasey, Senior Director, System Integrator Alliances, Parallels

 

Parallels recently joined IBM at the Telemanagement (TM) Forum Africa Summit in Johannesburg.  Together, we focused on helping service providers address many of the cloud and hosting issues facing the African communications market.  Like other developing areas, service providers in Africa need to grow and sustain their business, attract and retain their customers and adopt strategies to help differentiate them in the market.  Parallels has grown its presence in Africa during the years with this focus by working closely with partners across the continent.  This includes MTN Cameroon, who has developed an aggressive strategy with the help of Parallels for offering shared hosting, VPS, hosted messaging and other cloud and hosted services. MTNC has launched one of the most complete cloud services portfolios on Parallels Automation in any emerging market, including Microsoft Exchange, and SharePoint, in addition to shared hosting services with Parallels Plesk Panel with Web Presence Builder.  (MTNC is part of the MTNGroup, a multinational telecommunications group, operating in 21 countries in Africa, Asia and the Middle East.)

 

I was delighted when IBM invited Parallels to join them at the TM Forum Africa Summit for a number of reasons.  First, IBMs leadership in the telco space, now includes a compelling joint solution for the rapid deployment and integration of our flagship cloud enablement software, Parallels Automation.  Second, I attended a session presented by Gary Cohen, General Manager of IBM’s Global Communications Sector & Chairman, IBM Africa.  Gary’s talk – entitled “Integrated knowledge of customers, processes and business can become the source of true differentiation and accelerated growth”, is a theme you’ve often heard Parallels discussing, too.  So it’s a natural fit that IBM is the latest partner working side-by-side with Parallels.  Together, we’re continued on being focused on helping service providers — in both emerging and established markets around the globe — get their cloud services up and running faster and with the right mix of application bundles. 

 

Follow the ongoing dialogue from TM Forum Africa Summit on Twitter by searching on the hashtag #Africa12.  And expect more to come as a result of Parallels new alliance with IBM.

 

Matt Vasey, Senior Director, System Integrator Alliances, Parallels