Infrastructure management of tomorrow will be nothing like today August 22, 2013
May 21, 2015
Infrastructure management of tomorrow will be nothing like today
August 22, 2013
Market History• 5000 years focus on subsistence• 1800: arrival of technology. Automation
revolution begins: Physical jobs Transactional jobs Knowledge engineering 200m
Infrastructure Management AaaS• 77B 140b curve
Are We In the Midst of an IT Revolution?
How is IT Transforming?
Wave 1 Characteristics 15%-30% cost take out Model is scalable to the extent that you
can scale labor Custom/complex, legacy :“Your mess for
less” Access to Low Cost Labor necessary to
provide continuous value Revenue/Profit correlated to People
Wave 2 Characteristics 60%-80% cost take out Model is scalable and is largely
independent of labor growth Transformative – New way of doing
business Access to “Rocket Scientists” who can
codify manual processes Revenue/Profit NOT correlated to People
Wave 1LaborArbitrage
Wave 2Labor
Automation
What is the Technology Making this Shift
Change
Time
Knowledge of Market ParticipantsPace of Change for Technology and Services
What-if change is non-linear?Can classic (script based manual)
automation keep pace?
Move over manual
automation.
Here comes autonomics!
Automation benefits for more processes
Cheaper to operateFaster processingConsistent quality Lower risksBetter compliance
Deloitte study56% of Exceptions in 1 in Every 25 Fortune 1000 Companies Remediated Autonomically
Is Autonomics Real?
Empirical data• Largest investment bank: 91%• Second largest credit card
processor: 68%• Largest banking institution: DB
management: 43%• Largest network management
company: 87%• Largest media company in US: DSC
Can Machines Think?I propose to consider the question:
― Alan Turing, 1912-1954
What’s Next?
Cognitive technologies• 2005 GOOS Summit: In 5 years classic ITO automation• NASSCOM: BPO BPM, emphasizing intellectual arbitrage• 2013 Prediction: “In a decade we’d pass someone in the
corridor and not know if it’s a human or an android”• Androids are coming!!
What Will Happen to Us?
What Happened to the Horse & Carriage Driver?• Dystopian Utopian: constructive destruction• Prepare for tomorrow: proactively• ITO automation engineers• Ultimate liberator
What Should the Country Do?
Industry trends• Tiger by the tail: stay ahead of the curve Prosper: double
the market size• Leader 4000 years follower in colonial period (200 years)
Must reassert its position as a leader again• Shift from Cheaper Better