The IT Catch-22

OK, so everyone’s taking about it. Our industry is undergoing major changes. It’s out there. It started with a first architecture of reference with mainframes and minicomputers designed to serve thousands of applications used by millions of users worldwide. It then evolved with the advent of the Internet into the “client-server” architecture, this one designed to run hundreds of thousands of applications used by hundreds of millions of users. And where are we now? It appears we are witnessing the birth of a third generation of architecture, one of which is described by the IDC as “the next generation compute platform that is accessed from mobile devices, utilizes Big Data, and is cloud based”. It is referred to as “the third platform”. It is destined to deliver millions of applications to billions of users.

3rd platformVirtualization seems to have been the spark that ignited this revolution. The underlying logic of this major shift is that virtualization allows to make abstraction of hardware, puts it all in a big usable pool of performance and assets that can be shared by different applications for different uses according to the needs of different business units within an organization. The promise of this is that companies can and have more with less. Therefore, IT budgets can be reduced!
These changes are huge. In this third platform IT is built, is run, is consumed and finally is governed differently. Everything is changed from the ground up. It would seem obvious that one would need to invest in careful planning of the transition from the second to the third platform. What pace can we go at? What can be moved out into public clouds? What investments are required on our own infrastructure? How will it impact our IT staff? What training and knowledge will they require? What about security and risks?
The catch is the following: the third platforms allows IT to do much more with less. Accordingly, IT budgets are reduced or at best, flattened. Moving into the third platform requires investments. Get it? Every week we help CIOs and IT managers raise this within their organization so that they can obtain the required investments they need to move into the third platform to reap the benefits of it.

What about Big Data & Analytics?

After the “cloud” hype, here comes the “big data & analytics” one and it’s not just hype. Big data & analytics enables companies to make better business decisions faster than ever before; helps identify opportunities with new products and services and bring innovative solutions to the marketplace faster; assists IT and helpdesk in reducing mean time to repair and troubleshoot as well as giving reliable metrics for better IT spending planning; guides companies in improving their security posture by having more visibility on the corporate network and identify suspicious activities that go undetected with traditional signature-based technologies; serves to meet compliance requirements… in short, it makes companies more competitive! One simply has to go on Youtube to see the amazing things companies are doing with Splunk for example.

BIG-DATA-1I remember when I started working in IT sales in the mid 90’s, a “fast” home Internet connexion was 56k and the Internet was rapidly gaining in popularity. A small company owner called me and asked “What are the competitive advantages of having a website?” to which I replied “it’s no longer a competitive advantage, it’s a competitive necessity” and to prove my point I asked him to search his competitors out on the Internet: he saw that all of his competitors’ had websites!
The same can now be said of big data & analytics. With all the benefits it brings, it is becoming a business necessity. But before you start rushing into big data & analytics, know the following important facts:

  1. According to Gartner, 69% of corporate data have no business value whatsoever
  2. According to Gartner still, only 1.5% of corporate data is high value data

This means that you will have to sort through a whole lot of data to find the valuable stuff that you need to grow your business, reducing costs, outpacing competition, finding new revenue sources, etc. It is estimated that every dollar invested in a big data & analytics solution brings four to six dollars in infrastructure investments (new storage to hold all that priceless data, CPU to analyze, security for protection etc.). So before you plan a 50,000$ investment in a big data & analytics solution and find out it comes with a 200,000$ to 300,000$ investment in infrastructure, you should talk to subject matter experts. They can help design strategies to hone in on the 1.5% of high value data, and reduce the required investment while maximizing the results.

Charles Tremblay, ESI Account Manager