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The CIO takes back control with hybrid IT

Genius Wong, President, Global Network Services, Cloud & Data Centre Services, Tata Communications | Dec. 9, 2015
The move to a new kind of hybrid IT environment requires a thoughtful, step-by-step approach.

This vendor-written piece has been edited by Executive Networks Media to eliminate product promotion, but readers should note it will likely favour the submitter's approach.

New digitally-driven business models based on nothing more than a concept and software code are disrupting traditional businesses and entire industries around the world. In response, many enterprises are establishing new, innovative — at times even aggressive — business units to ignite an entrepreneurial fire within the organisation and respond faster to new opportunities.

As a result, many of today's entrepreneurial start-ups are being launched not inside the proverbial garage, but within business units of large global enterprises. The people working with them have a new mandate — collaborate, innovate and help the enterprise gain a competitive advantage. These new business units are driving enterprise innovation with new analytical tools, cloud and outsourced technology services. A major challenge for these teams has been operational obstacles — getting the fast response they need from IT. The issue is a clash of cultures and priorities. IT operations are traditionally highly structured and measured — not particularly focused on flexibility and agility, which is what these new business units need. The collision of these diverging priorities has led business units to essentially go their own way and seek IT solutions outside the control of the CIO.

Moving fast to capitalise on new digital opportunities
In today's hyper-connected global market, enterprises need an agile approach that enables them to respond faster to new opportunities. The traditional IT model was born in the 1950s and 1960s — a world without digital technologies and the Internet. The velocity of business was much slower than today. For example, on December 1, 1964, the trading volume on the New York Stock Exchange was fewer than 5 million shares. Today, it averages well over 1 billion shares and often exceeds 2 billion. With ubiquitous Internet and digital transformation, the pace of change is accelerating at warp speed.

That is why enterprises, large and small, are turning to cloud computing to enable them to respond faster to new opportunities. The cloud has become one of the most popular enterprise IT frameworks because it offers the cost efficiency (transparent pricing and fees), capacity (cloud management is not tied to the finite IT team resources) and flexibility (ability to scale up or down quickly) required by enterprises to be competitive.

Over 95 percent of large enterprises report using some form of public or private cloud service and 75 percent say they are operating some form of hybrid cloud environment, spanning public and private cloud services. The cloud hasn't completely replaced the 'old' IT estate — most enterprises today use an intricate mix of different technology environments, with the most business-critical or sensitive applications still residing on a trusted physical server onsite, instead of the virtual world of cloud computing.

 

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