This is the time of year when analysts start to publish their predictions for 2016. IDC has already kicked off the season with their predictions at http://bit.ly/1SGQqMs. Their predictions are focused on Digital transformation and are very similar to my thoughts which I will be publishing on December 2 in a webcast with Greg Knierierman who is a Technical Evangelist for Hitachi Data Systems and popular host of the independent Speaking In Tech Podcast http://speakingintech.com. Joining us will be Adrian Deluca, the CTO for Asia Pacific to give some local perspective.
Businesses today have to contend with a new wave of innovative technology start-ups that are able to move quickly to capitalize on changes in the external environment. In my previous post on $10B startups, I mentioned the disruption caused by Airbnb in the hospitality business. This is a startup company that was stated in 2008 and now has a $25.5B valuation compared to a large hospitality corporation like Marriott, which was started in 1927 and has a current valuation of $20B. Airbnb is a software company and their IT is in the Amazon cloud. They connect people who are looking for lodgings with people who can provide lodging for a fee over the Internet.
There are two major disruptions happening here. First the most obvious is that software and services businesses that use the Internet and cloud are more agile than brick and mortar businesses. The second disruption is on the customer side. The consumer that used to book a standard room at a hotel, is now a “pro”sumer, who is empowered to book whatever, where ever, and at any fee that he chooses. Are there many people who want to find lodging this way? The meteoric rise in Airbnb’s valuation would suggest there is.
To compete, traditional businesses will have to change their operating model to become more agile and connect with customers who are more sophisticated and empowered. Business will need to look to IT as the Information Technology experts for innovation and competitive advantage. In line with this, 2016 will see businesses shift their IT focus from infrastructure to application enablement, with more of the IT budget going to application development, analytics and big data. This sets the stage for some of the key IT trends that we see emerging in 2016.
The value of traditional IT can be thought of as a triangle with more than 50% of the value and focus on infrastructure. In this new business environment, we need to turn that triangle upside down, and focus on the value that we bring to the end users through application development and analytics.
Infrastructure is still very important. In fact it is still at the base and is the foundation. In this new positioning infrastructure can be viewed as the tip of the spear that facilitates the penetration of development platforms and applications. However, infrastructure must take less of IT’s time, effort, and budget. This can be done through virtualization, automation, software defined, and cloud.
Please set this date on your calendar, December 2, at 9:am Pacific Standard time for this webinar on IT Trends for 2016 https://www.hds.com/webtech/?commid=179961