We’ll now explore how mounting complexity and a lack of multi-cloud services management maturity must be solved in order to have businesses grow and thrive as digital enterprises.
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Tim Crawford, CIO Strategic Advisor at AVOA in Los Angeles joins us to report on how companies are
managing an increasingly complex transition to sustainable hybrid IT. The discussion is moderated by Dana Gardner, Principal Analyst at Interarbor Solutions.
Here are some excerpts:
Crawford: For the short-term, I would say everyone. It’s not
as simple as it has been in the past where we look to the IT organization as
the end-all, be-all for all things technology. As we begin talking about
different consumption models -- and cloud is a relatively new consumption model
for technology -- it changes the dynamics of it. It’s the combination of changing
that consumption model -- but then there’s another factor that comes into this.
There is also the consumerization of technology, right? We are “democratizing”
technology to the point where everyone can use it, and therefore everyone does use
it, and they begin to get more comfortable with technology.
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Here are some excerpts:
Gardner: Tim, there’s a lot of evidence that businesses are adopting cloud models at a rapid pace. But there is also lingering concern
about how to best determine the right mix of cloud, what kinds of cloud, and
how to mitigate the risks and manage change over time.
As someone who regularly advises chief information
officers (CIOs), who or which group is surfacing that is tasked with managing
this cloud adoption and its complexity within these businesses? Who will be
managing this dynamic complexity?
 |
| Crawford |
It’s not as it used to be, where we
would say, “Okay, I'm not sure how to turn on a computer.” Now, businesses may
be more familiar outside of the IT organization with certain technologies. Bringing
that full-circle, the answer is that we have to look beyond just IT. Cloud is
something that is consumed by IT organizations. It’s consumed by different
lines of business, too. It’s consumed even by end-consumers of the products and
services. I would say it’s all of the above.
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Gardner: The good news is that more and more people are able
to -- on their own – innovate, to acquire cloud services, and they can factor
those into how they obtain business objectives. But do you expect that we will
get to the point where that becomes disjointed? Will the goodness of innovation
become something that spins out of control, or becomes a negative over time?
Crawford: To some degree, we’ve already hit that inflection-point
where technology is being used in inappropriate ways. A great example of this
-- and it’s something that just kind of raises the hair on the back of my neck
-- is when I hear that boards of directors of publicly traded companies are
giving mandates to their organization to “Go cloud.”
The board should be very business-focused and instead
they're dictating specific technology -- whether it’s the right technology or
not. That’s really what this comes down to.
What’s
the right use of cloud – in all forms, public, private, software as a
service (SaaS). What’s the right combination to use for any given
application?
Another example is folks that try and go all-in on cloud
but aren’t necessarily thinking about what’s the right use of cloud – in all
forms, public, private, software as a service (SaaS).
What’s the right combination to use for any given application? It’s not a
one-size-fits-all answer.
We in the enterprise IT space haven't really done
enough work to truly understand how best to leverage these new sets of tools.
We need to both wrap our head around it but also get in the right frame of mind
and thought process around how to take advantage of them in the best way
possible.
Another example that I've worked through from an
economic standpoint is if you were to do the math, which I have done a number
of times with clients -- you do the math to figure out what’s the comparative
between the IT you're doing on-premises in your corporate data center with any
given application -- versus doing it in a public cloud.
Think differently
If you do the
math, taking an application from a corporate data center and moving it to public
cloud will cost you four times as much money. Four times as much money to go to
cloud! Yet we hear the cloud is a lot cheaper. Why is that?
When you begin to tease apart the pieces, the bottom
line is that we get that four-times-as-much number because we’re using the same
traditional mindset where we think about cloud as a solution, the delivery
mechanism, and a tool. The reality is it’s a different delivery mechanism, and
it’s a different kind of tool.
When used appropriately, in some cases, yes, it can
be less expensive. The challenge is you have to get yourself out of your
traditional thinking and think differently about the how and why of leveraging
cloud. And when you do that, then things begin to fall into place and make a
lot more sense both organizationally -- from a process standpoint, and from a
delivery standpoint -- and also economically.
Gardner: That “appropriate use of cloud” is the key. Of
course, that could be a moving target. What’s appropriate today might not be
appropriate in a month or a quarter. But before we delve into more … Tim, tell
us about your organization. What’s a typical day in the life for Tim Crawford
like?
It’s not tech for tech’s sake, rather it’s best to say, “How do we use technology for business advantage?”
Crawford: I love that question. AVOA stands for that position
in which we sit between business and technology. If you think about the
intersection of business and technology, of using technology for business
advantage, that’s the space we spend our time thinking about. We think about
how organizations across a myriad of different industries can leverage
technology in a meaningful way. It’s not tech for tech’s sake, and I want to be
really clear about that. But rather it’s best to say, “How do we use technology
for business advantage?”
We spend a lot of time with large enterprises across
the globe working through some of these challenges. It could be as simple as
changing traditional mindsets to transformational, or it could be talking about
tactical objectives. Most times, though, it’s strategic in nature. We spend
quite a bit of time thinking about how to solve these big problems and to change
the way that companies function, how they operate.
A day in a life of me could range from, if I'm lucky,
being able to stay in my office and be on the phone with clients, working with
folks and thinking through some of these big problems. But I do spend a lot of
time on the road, on an airplane, getting out in the field, meeting with
clients, understanding what people really are contending with.
I spent well over 20 years of my career before I
began doing this within the IT organization, inside leading IT organizations. It’s
incredibly important for me to stay relevant by being out with these folks and
understanding what they're challenged by -- and then, of course, helping them
through their challenges.
Any given day is something new and I love that
diversity. I love hearing different ideas. I love hearing new ideas. I love
people who challenge the way I think.
It’s an opportunity for me personally to learn and to
grow, and I wish more of us would do that. So it does vary quite a bit, but I'm
grateful that the opportunities that I've had to work with have been just
fabulous, and the same goes for the people.
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Gardner: I've always enjoyed my conversations with you, Tim,
because you always do challenge me to think a little bit differently -- and I
find that very valuable.
Okay, let’s get back to this idea of “appropriate use
of cloud.” I wonder if we should also expand that to be “appropriate use of IT
and cloud.” So including that notion of hybrid IT, which includes cloud and
hybrid cloud and even multi-cloud. And let’s not forget about the legacy IT
services.
How do we know if we’re appropriately using cloud in
the context of hybrid IT? Are there measurements? Is there a methodology that’s
been established yet? Or are we still in the opening innings of how to even
measure and gain visibility into how we consume and use cloud in the context of
all IT -- to therefore know if we’re doing it appropriately?
The monkey-bread model
Crawford: The first thing we have to do is take a step back to
provide the context of that visibility -- or a compass, as I usually refer to these
things. You need to provide a compass to help understand where we need to go.
If we look back for a minute, and look at how IT
operates -- traditionally, we did everything. We had our own data center, we
built all the applications, we ran our own servers, our own storage, we had the
network – we did it all. We did it all, because we had to. We, in IT, didn’t
really have a reasonable alternative to running our own email systems, our own
file storage systems. Those days have changed.
Fast-forward to today. Now, you have to pick apart
the pieces and ask, “What is strategic?” When I say, “strategic,” it doesn’t
mean critically important. Electrical power is an example. Is that strategic to
your business? No. Is it important? Heck, yeah, because without it, we don’t
run. But it’s not something where we’re going out and building power plants next
to our office buildings just so we can have power, right? We rely on others to
do it because there are mature infrastructures, mature solutions for that. The
same is true with IT. We have now crossed the point where there are mature
solutions at an enterprise level that we can capitalize on, or that we can
leverage.
Part of the methodology I use is the monkey bread
example. If you're not familiar with monkey bread, it’s kind of a crazy thing
where you have these balls of dough. When you bake it, the balls of dough congeal
together and meld. What you're essentially doing is using that as
representative of, or an analogue to, your IT portfolio of services and
applications. You have to pick apart the pieces of those balls of dough and
figure out, “Okay. Well, these systems that support email, those could go off
to Google or Microsoft 365. And these applications, well, they could go off to
this SaaS-based offering. And these other applications, well, they could go off
to this platform.”
And then, what you're left with is this really
squishy -- but much smaller -- footprint that you have to contend with. That
problem in the center is much more specific -- and arguably that’s what
differentiates your company from your competition.
Whether you run email [on-premises] or in a cloud, that’s
not differentiating to a business. It’s incredibly important, but not
differentiating. When you get to that gooey center, that’s the core piece,
that’s where you put your resources in, that’s what you focus on.
This example helps you work through determining
what’s critical, and -- more importantly -- what’s strategic and
differentiating to my business, and what is not. And when you start to pick
apart these pieces, it actually is incredibly liberating. At first, it’s a
little scary, but once you get the hang of it, you realize how liberating it is.
It brings focus to the things that are most critical for your business.
Identify
opportunities where cloud makes sense – and where it doesn’t. It
definitely is one of the most significant opportunities for most IT
organizations today.
That’s what we have to do more of. When we do that,
we identify opportunities where cloud makes sense -- and where it doesn’t.
Cloud is not the end-all, be-all for everything. It definitely is one of the
most significant opportunities for most IT organizations today.
So it’s important: Understand what is appropriate,
how you leverage the right solutions for the right application or service.
Gardner: IT in many organizations is still responsible for everything around
technology. And that now includes higher-level strategic undertakings of how all
this technology and the businesses come together. It includes how we help our
businesses transform to be more agile in new and competitive environments.
So is IT itself going to rise to this challenge, of
not doing everything, but instead becoming more of that strategic broker
between in IT functions and business outcomes? Or will those decisions get
ceded over to another group? Maybe enterprise architects, business architects,
business process management (BPM) analysts? Do you think it’s important for IT
to both stay in and elevate to the bigger game?
Changing IT roles and responsibilities
Crawford: It’s
a great question. For every organization, the answer is going to be different.
IT needs to take on a very different role and sensibility. IT needs to look
different than how it looks today. Instead of being a technology-centric
organization, IT really needs to be a business organization that leverages
technology.
The CIO of today and moving forward is not the
tech-centric CIO. There are traditional CIOs and transformational CIOs. The
transformational CIO is the business leader first who happens to have
responsibility for technology. IT, as a whole, needs to follow the same vein.
For example, if you were to go into a traditional IT
organization today and ask them what’s the nature of their business, ask them
to tell you what they do as an administrator, as a developer, to help you
understand how that’s going to impact the company and the business -- unfortunately,
most of them would have a really hard time doing that.
The IT organization of the future, will articulate clearly
the work they’re doing and how that impacts their customers and their business,
and how making different changes and tweaks will impact their business. They will
have an intimate knowledge of how their business functions much more than how
the technology functions. That’s a very different mindset, that’s the place we
have to get to for IT on the whole. IT can’t just be this technology
organization that sits in a room, separate from the rest of the company. It has
to be integral, absolutely integral to the business.
Gardner: If we recognize that cloud is here to stay -- but that
the consumption of it needs to be appropriate, and if we’re at some sort of
inflection point, we’re also at the risk of consuming cloud inappropriately. If
IT and leadership within IT are elevating themselves, and upping their game to
be that strategic player, isn’t IT then in the best position to be managing
cloud, hybrid cloud and hybrid IT? What tools and what mechanisms will they need
in order to make that possible?
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Crawford:
Theoretically, the answer is that they really need to get to that level. We’re
not there, on the whole, yet. Many organizations are not prepared to adopt
cloud. I don’t want to be a naysayer of IT, but I think in terms of where IT
needs to go on the whole, on the sum, we need to move into that position where
we can manage the different types of delivery mechanisms -- whether it’s public
cloud, SaaS, private cloud, appropriate data centers -- those are all just
different levers we can pull depending on the business type.
Businesses
change, customers change, demand changes and revenue comes from
different places. IT needs to be able to shift gears just as fast and in
anticipation of where the company goes.
As you
mentioned earlier, businesses change, customers change, demand changes, and revenue
comes from different places. In IT, we need to be able to shift gears just as
fast and be prepared to shift those gears in anticipation of where the company
goes. That’s a very different mindset. It’s a very different way of thinking,
but it also means we have to think of clever ways to bring these tools together
so that we’re well-prepared to leverage things like cloud.
The challenge is many folks are still in that classic
mindset, which unfortunately holds back companies from being able to take
advantage of some of these new technologies and methodologies. But getting
there is key.
Gardner: Some boards of directors, as you mentioned, are
saying, “Go cloud,” or be cloud-first. People are taking them at that, and so
we are facing a sort of cloud sprawl. People are doing micro services and as
developers spinning up cloud instances and object storage instances. Sometimes
they’ll keep those running into production; sometimes they’ll shut them down.
We have line of business (LOB) managers going out and acquiring services like
SaaS applications, running them for a while, perhaps making them a part of
their standard operating procedures. But, in many organizations, one hand
doesn’t really know what the other is doing.
Are we at the inflection point now where it’s simply
a matter of measurement? Would we stifle innovation if we required people to at
least mention what it is that they’re doing with their credit cards or petty
cash when it comes to IT and cloud services? How important is it to understand
what’s going on in your organization so that you can begin a journey toward
better management of this overall hybrid IT?
Why, oh why, oh why, cloud?
Crawford: It
depends on how you approach it. If you’re doing it from an IT command-and-control
perspective, where you want to control everything in cloud -- full stop, that’s
failure right out of the gate. But if you’re doing it from a position of -- I’m
trying to use it as an opportunity to understand why are these folks leveraging
cloud, and why are they not coming to IT, and how can I as CIO be better
positioned to be able to support them, then great! Go forth and conquer.
The reality is that different parts of the
organization are consuming cloud-based services today. I think there’s an
opportunity to bring those together where appropriate. But at the end of the
day, you have to ask yourself a very important question. It’s a very simple
question, but you have to ask it, and it has to do with each of the different
ways that you might leverage cloud. Even when you go beyond cloud and talk
about just traditional corporate data assets -- especially as you start
thinking about Internet of things (IoT) and start thinking about edge computing
-- you know that public cloud becomes problematic for some of those things.
The important question you have to ask yourself is, “Why?”
A very simple question, but it can have a really complicated answer. Why are
you using public cloud? Why are you using three different forms of public
cloud? Why are you using private cloud and public cloud together?
Once you begin to ask yourself those questions, and
you keep asking yourself that question … it’s like that old adage. Ask yourself
why three times and you kind of get to the core as the true reason why. You’ll
bring greater clarity as to the reasons, and typically the business reasons, of
why you’re actually going down that path. When you start to understand that, it
brings clarity to what decisions are smart decisions -- and what decisions
maybe you might want to think about doing differently.
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Gardner: Of
course, you may begin doing something with cloud for a very good reason. It
could be a business reason, a technology reason. You’ll recognize it, you gain value
from it -- but then over time you have to step back with maturity and ask, “Am
I consuming this in such a way that I’m getting it at the best price-point?”
You mentioned a little earlier that sometimes going to public cloud could be
four times as expensive.
So even though you may have an organization where you
want to foster innovation, you want people to spread their wings, try out proofs
of concept, be agile and democratic in terms of their ability to use myriad IT services,
at what point do you say, “Okay, we’re doing the business, but we’re not
running it like a good business should be run.” How are the economic factors
driven into cloud decision-making after you’ve done it for a period of time?
Cloud’s good, but is it good for business?
Crawford:
That’s a tough question. You have to look at the services that you’re leveraging
and how that ties into business outcomes. If you tie it back to a business
outcome, it will provide greater clarity on the sourcing decisions you should
make.
For example, if you’re spending $5 to make $6 in a
specialty industry, that’s probably not a wise move. But if you’re spending $5
to make $500, okay, that’s a pretty good move, right? There is a trade-off that
you have to understand from an economic standpoint. But you have to understand
what the true cost is and whether there’s sufficient value. I don’t mean
technological value, I mean business value, which is measured in dollars.
If you begin to understand the business value of the
actions you take -- how you leverage public cloud versus private cloud versus
your corporate data center assets -- and you match that against the strategic
decisions of what is differentiating versus what’s not, then you get clarity
around these decisions. You can properly leverage different resources and gain
them at the price points that make sense. If that gets above a certain amount,
well, you know that’s not necessarily the right decision to make.
Economics plays a very significant role -- but let’s
not kid ourselves. IT organizations haven’t exactly been the best at economics
in the past. We need to be moving forward. And so it’s just one more thing on
that overflowing plate that we call demand and requirements for IT, but we have
to be prepared for that.
Gardner: There might be one other big item on that plate. We can
allow people to pursue business outcomes using any technology that they can get
their hands on -- perhaps at any price – and we can then mature that process over
time by looking at price, by finding the best options.
But the other item that we need to consider at all
times is risk. Sometimes we need to consider whether getting too far into a
model like a public cloud, for example, that we can’t get back out of, is part
of that risk. Maybe we have to consider that being completely dependent on
external cloud networks across a global supply chain, for example, has inherent
cyber security risks. Isn’t it up to IT also to help organizations factor some
of these risks -- along with compliance, regulation, data sovereignty issues? It’s
a big barrel of monkeys.
Before we sign off, as we’re almost out of time,
please address for me, Tim, the idea of IT being a risk factor mitigator for a
business.
Safety in numbers
Crawford: You
bring up a great point, Dana. Risk -- whether it is risk from a cyber security
standpoint or it could be data sovereignty issues, as well as regulatory
compliance -- the reality is that nobody across the organization truly
understands all of these pieces together.
It
really is a team effort to bring it all together -- where you have the
privacy folks, the information security folks, and the compliance folks
-- that can become a united team.
It really is a team effort to bring it all together --
where you have the privacy folks, the information security folks, and the compliance
folks -- that can become a united team. I don’t think IT is the only component
of that. I really think this is a team sport. In any organization that I’ve
worked with, across the industry it’s a team sport. It’s not just one group.
It’s complicated, and frankly, it’s getting more complicated
every single day. When you have these huge breaches that sit on the front page
of The Wall Street Journal and other
publications, it’s really hard to get clarity around risk when you’re always
trying to fight against the fear factor. So that’s another balancing act that
these groups are going to have to contend with moving forward. You can’t ignore
it. You absolutely shouldn’t. You should get proactive about it, but it is
complicated and it is a team sport.
Gardner: Some take-aways for me today are that IT needs to
raise its game. Yet again, they need to get more strategic, to develop some of
the tools that they’ll need to address issues of sprawl, complexity, cost, and
simply gaining visibility into what everyone in the organization is – or isn’t --
doing appropriately with hybrid cloud and hybrid IT.
Listen to the podcast. Find it on iTunes. Get the mobile app. Read a full transcript or download a copy. Sponsor: Hewlett Packard Enterprise.
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