Welcome!

API Journal Authors: Elizabeth White, Liz McMillan, Pat Romanski, Yeshim Deniz, Rishi Bhargava

Related Topics: @CloudExpo, Java IoT, Microservices Expo, Containers Expo Blog, API Journal, Agile Computing

@CloudExpo: Blog Feed Post

Lean and Low in Las Vegas

What percentage of large enterprise organizations will be interested to adopt the self-service, supermarket model of the cloud?

Those of you who followed my blog for a while know that the idea of applying manufacturing best practices to cloud computing is a favorite topic of mine*. This week the topic popped up in a fireside chat (the popular term for keynotes delivered from a set of armchairs, often with no fire in sight) between Amazon’s CTO Werner Vogel and CEO Jeff Bezos at re:Invent, the first Amazon Web Services customer conference.

I won't cover the conference here - many blogs and media sites already did - but in the chat Bezos made a number of interesting points on how principles of lean manufacturing are guiding Amazon’s overall endeavors and how cloud computing both supports and benefits from this approach. He discussed how – for developers- this approach turns the cost of infrastructure operations from an abstract overhead-like concept into a very visible direct cost they can directly influence. And how the cost of quality is always lower than the cost of non-quality, as fixing problems later - after it has shipped to the customer – is many times more expensive than doing things first time right. But also how cloud computing allows to continuously improve products and processes (similar to how factory workers at Toyota were empowered to stop the production line and jointly improve the process). He also stressed the importance of focusing on customers and their requirements (by continuously measuring and providing feedback loops) instead of focusing on competitors or winning.

A 70/30 rule
In the chat Bezos also discussed his assertion from an earlier interview that- with customers being more connected through social media and through the transparency that internet and big data is bringing to all markets – the effective way of doing business is flipping from spending 30% on creating a product and 70% on "shouting about it" (making sure - through marketing and sales activities - that people know about it and buy it) to the reverse. A new reality, where it makes more sense to spend the majority of energy, effort and cost on building the best possible product and a significantly smaller effort on communication and delivery. In other words, the more transparent markets are becoming, the more product quality (being fit for purpose) will rule success.

This in turn makes working on product quality (though principles such as Lean) more important, but - taking this beyond was what was said on stage – is also likely to drive total costs down and result in lower overall prices. For the enterprise IT industry - where a lot of the product costs stem from the lengthy sales & implementation cycles that traditional complex enterprise products require – this may turn out to be a very disruptive development. In fact, earlier in the week Amazon had a panel of their partners discuss their experiences and - although they all created some impressive new cloud successes for their customers - you could sense they all realized that going forward the world was no longer going to be what it was before.

A valid question to ask is whether the whole Enterprise IT industry will follow this trend. In other words: what percentage of large enterprise organizations will be interested (and able!) to adopt the self service, super market model of the cloud (see also A Cloud That Cares? Or About Eating Your Cloud And Having it too). Will there be a large percentage that prefers ready made meals (instead of home cooking using super market ingredients - One could think of SaaS solutions in this context) or will there be a significant number of organizations that - voluntarily or forced by a lack of in house capabilities - continues to prefer a full service restaurant model, where the provider does not just supply the ingredients, but also does most of the day to day work?

Let's end with a question you may want to ask yourself: When looking at your markets and customers, how fast are they moving from a 30/70 to a 70/30 model and how prepared is your organization for that?

* In one of my first Gartner blog posts I wrote about the Rise of IT-dustrialization , earlier publications include “LEAN and the Art of Cloud Computing Management (2010)” and my LeanITmanager blog.

Read the original blog entry...

More Stories By Gregor Petri

Gregor Petri is a regular expert or keynote speaker at industry events throughout Europe and wrote the cloud primer “Shedding Light on Cloud Computing”. He was also a columnist at ITSM Portal, contributing author to the Dutch “Over Cloud Computing” book, member of the Computable expert panel and his LeanITmanager blog is syndicated across many sites worldwide. Gregor was named by Cloud Computing Journal as one of The Top 100 Bloggers on Cloud Computing.

Follow him on Twitter @GregorPetri or read his blog at blog.gregorpetri.com

@ThingsExpo Stories
Adobe is changing the world though digital experiences. Adobe helps customers develop and deliver high-impact experiences that differentiate brands, build loyalty, and drive revenue across every screen, including smartphones, computers, tablets and TVs. Adobe content solutions are used daily by millions of companies worldwide-from publishers and broadcasters, to enterprises, marketing agencies and household-name brands. Building on its established design leadership, Adobe enables customers not o...
If you’re responsible for an application that depends on the data or functionality of various IoT endpoints – either sensors or devices – your brand reputation depends on the security, reliability, and compliance of its many integrated parts. If your application fails to deliver the expected business results, your customers and partners won't care if that failure stems from the code you developed or from a component that you integrated. What can you do to ensure that the endpoints work as expect...
Just over a week ago I received a long and loud sustained applause for a presentation I delivered at this year’s Cloud Expo in Santa Clara. I was extremely pleased with the turnout and had some very good conversations with many of the attendees. Over the next few days I had many more meaningful conversations and was not only happy with the results but also learned a few new things. Here is everything I learned in those three days distilled into three short points.
WebRTC adoption has generated a wave of creative uses of communications and collaboration through websites, sales apps, customer care and business applications. As WebRTC has become more mainstream it has evolved to use cases beyond the original peer-to-peer case, which has led to a repeating requirement for interoperability with existing infrastructures. In his session at @ThingsExpo, Graham Holt, Executive Vice President of Daitan Group, will cover implementation examples that have enabled ea...
SYS-CON Events announced today that ReadyTalk, a leading provider of online conferencing and webinar services, has been named Vendor Presentation Sponsor at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. ReadyTalk delivers audio and web conferencing services that inspire collaboration and enable the Future of Work for today’s increasingly digital and mobile workforce. By combining intuitive, innovative tec...
There is growing need for data-driven applications and the need for digital platforms to build these apps. In his session at 19th Cloud Expo, Muddu Sudhakar, VP and GM of Security & IoT at Splunk, will cover different PaaS solutions and Big Data platforms that are available to build applications. In addition, AI and machine learning are creating new requirements that developers need in the building of next-gen apps. The next-generation digital platforms have some of the past platform needs a...
Fifty billion connected devices and still no winning protocols standards. HTTP, WebSockets, MQTT, and CoAP seem to be leading in the IoT protocol race at the moment but many more protocols are getting introduced on a regular basis. Each protocol has its pros and cons depending on the nature of the communications. Does there really need to be only one protocol to rule them all? Of course not. In his session at @ThingsExpo, Chris Matthieu, co-founder and CTO of Octoblu, walk you through how Oct...
Smart Cities are here to stay, but for their promise to be delivered, the data they produce must not be put in new siloes. In his session at @ThingsExpo, Mathias Herberts, Co-founder and CTO of Cityzen Data, will deep dive into best practices that will ensure a successful smart city journey.
Businesses are struggling to manage the information flow and interactions between all of these new devices and things jumping on their network, and the apps and IT systems they control. The data businesses gather is only helpful if they can do something with it. In his session at @ThingsExpo, Chris Witeck, Principal Technology Strategist at Citrix, will discuss how different the impact of IoT will be for large businesses, expanding how IoT will allow large organizations to make their legacy ap...
Major trends and emerging technologies – from virtual reality and IoT, to Big Data and algorithms – are helping organizations innovate in the digital era. However, to create real business value, IT must think beyond the ‘what’ of digital transformation to the ‘how’ to harness emerging trends, innovation and disruption. Architecture is the key that underpins and ties all these efforts together. In the digital age, it’s important to invest in architecture, extend the enterprise footprint to the cl...
SYS-CON Events announced today that Numerex Corp, a leading provider of managed enterprise solutions enabling the Internet of Things (IoT), will exhibit at the 19th International Cloud Expo | @ThingsExpo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Numerex Corp. (NASDAQ:NMRX) is a leading provider of managed enterprise solutions enabling the Internet of Things (IoT). The Company's solutions produce new revenue streams or create operating...
24Notion is full-service global creative digital marketing, technology and lifestyle agency that combines strategic ideas with customized tactical execution. With a broad understand of the art of traditional marketing, new media, communications and social influence, 24Notion uniquely understands how to connect your brand strategy with the right consumer. 24Notion ranked #12 on Corporate Social Responsibility - Book of List.
Why do your mobile transformations need to happen today? Mobile is the strategy that enterprise transformation centers on to drive customer engagement. In his general session at @ThingsExpo, Roger Woods, Director, Mobile Product & Strategy – Adobe Marketing Cloud, covered key IoT and mobile trends that are forcing mobile transformation, key components of a solid mobile strategy and explored how brands are effectively driving mobile change throughout the enterprise.
As ridesharing competitors and enhanced services increase, notable changes are occurring in the transportation model. Despite the cost-effective means and flexibility of ridesharing, both drivers and users will need to be aware of the connected environment and how it will impact the ridesharing experience. In his session at @ThingsExpo, Timothy Evavold, Executive Director Automotive at Covisint, will discuss key challenges and solutions to powering a ride sharing and/or multimodal model in the a...
In his general session at 18th Cloud Expo, Lee Atchison, Principal Cloud Architect and Advocate at New Relic, discussed cloud as a ‘better data center’ and how it adds new capacity (faster) and improves application availability (redundancy). The cloud is a ‘Dynamic Tool for Dynamic Apps’ and resource allocation is an integral part of your application architecture, so use only the resources you need and allocate /de-allocate resources on the fly.
In this strange new world where more and more power is drawn from business technology, companies are effectively straddling two paths on the road to innovation and transformation into digital enterprises. The first path is the heritage trail – with “legacy” technology forming the background. Here, extant technologies are transformed by core IT teams to provide more API-driven approaches. Legacy systems can restrict companies that are transitioning into digital enterprises. To truly become a lea...
SYS-CON Events announced today that Roundee / LinearHub will exhibit at the WebRTC Summit at @ThingsExpo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. LinearHub provides Roundee Service, a smart platform for enterprise video conferencing with enhanced features such as automatic recording and transcription service. Slack users can integrate Roundee to their team via Slack’s App Directory, and '/roundee' command lets your video conference ...
Web Real-Time Communication APIs have quickly revolutionized what browsers are capable of. In addition to video and audio streams, we can now bi-directionally send arbitrary data over WebRTC's PeerConnection Data Channels. With the advent of Progressive Web Apps and new hardware APIs such as WebBluetooh and WebUSB, we can finally enable users to stitch together the Internet of Things directly from their browsers while communicating privately and securely in a decentralized way.
"My role is working with customers, helping them go through this digital transformation. I spend a lot of time talking to banks, big industries, manufacturers working through how they are integrating and transforming their IT platforms and moving them forward," explained William Morrish, General Manager Product Sales at Interoute, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
A strange thing is happening along the way to the Internet of Things, namely far too many devices to work with and manage. It has become clear that we'll need much higher efficiency user experiences that can allow us to more easily and scalably work with the thousands of devices that will soon be in each of our lives. Enter the conversational interface revolution, combining bots we can literally talk with, gesture to, and even direct with our thoughts, with embedded artificial intelligence, wh...