Top 5 Trends
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CIO Strategy Session: Top 5 trends for 2004
Dan Farber Editor in Chief ZDNet
Viewer value • Evaluating trends for CIOs • Developing strategic plans • Budgeting for 2004
Meeting scenario • CIO of mid-sized company • Preparing budget for 2004 • Determine how to save and spend
Top trends for 2004 • Security • Outsourcing • Server & storage utilization • Mobility • Supply chain management
Consult the Experts
David Thompson Senior Research Analyst
META Group
Andy Efstathiou Program Manager
The Yankee Group
Jean Bozman Research Vice President
IDC
Chris Kozup Program Director
META Group
Martin Reynolds Research Fellow
Gartner
Top 5 trends for 2004: Security
Security priorities • People • Process • Technology
People • Evaluate technology skills • Develop communication skills
Training goals • Train all users • Make employees aware of security • Individualize training to each employee
Who to train • Focus staff for training • Augment with outsourcing
Process • Drive efficiencies • Save dollars • Formalize structure • Measure efficiencies
Process • User life cycle management -Adding users to systems -Managing rights in systems -Removing users from systems
Process • Patch management -Audit your systems -Automate tools in development -Mostly manual at this point
Dan Farber Editor in Chief, ZDNet
David Thompson Senior Research Analyst, META Group
Technology • Prevention • Detection • Response
Technology • Detection tips -Evaluate signatures -Consider automated detection prevention tools -Develop a layered security architecture
Firewall A system designed to prevent unauthorized access to or from a private network.
Top 5 trends for 2004: Outsourcing
Andy Efstathiou Program Manager The Yankee Group
Outsourcing trends • Utility computing • Business process outsourcing • Offshore outsourcing
Utility computing Pay-per-usage processing power provided by a service organization using its own computers and facilities. Customers access the computers via a private network or over the internet and are charged according to how much computing time they use.
Utility computing • Companies installing utility infrastructure internally • Change in way companies manage infrastructure
Utility computing • Increase in cost for infrastructure components • Decrease in services costs
Dan Farber Editor in Chief, ZDNet
Andy Efstathiou Program Manager, The Yankee Group
Business Process Outsourcing (BPO) BPO is a specific outsourcing sector where an outside company manages various business tasks such as procurement or accounts payroll.
BPO facts • Heightened awareness • Narrow segments using BPO • Financial services leader in BPO
BPO facts • Most industries not outsourcing • Steep learning curve • New vendor offerings • BPO provides automation
BPO risk reward • New tools for BPO • Culture change needed • Difficult transition • Cost savings in automation
Offshore outsourcing Hiring outside the country, usually a consultant or application service provider, to transfer components or large segments of an organization’s internal IT structure, staff and processes.
Offshore outsourcing • Increase in work offshore • Infrastructure requirements growing • Human capital resources nearing capacity
Dan Farber Editor in Chief, ZDNet
Andy Efstathiou Program Manager, The Yankee Group
Coming up: Server and Storage Utilization
Top 5 trends for 2004: Server and Storage Utilization
Jean Bozman Research Vice President
IDC
Server utilization strategy Add capacity in small increments, using volume servers (server priced Less than $25,000--all chip types and operating systems) Source: IDC, 2003
Blade server market • All major vendors participating • $100-million dollar market • More standards will appear • Big vendors working with small vendors
Blade servers A single circuit board populated with components such as processors, memory, and network connections.
Blade servers Server blades are more costefficient, smaller and consume less power than traditional box-based servers.
Increasing utilization rates • New software packages for system management • Work load balancing software • System management software in scalable servers
Server utilization strategy Use virtualization techniques to link multiple servers into a single computing resource (using parallel databases and clustering software) Source: IDC, 2003
Utility computing Pay-per-usage processing power provided by a service organization using its own computers and facilities. Customers access the computers via a private network or over the internet and are charged according to how much computing time they use.
Utility computing • Early stages of utility computing • Meter and monitor use • Automate the process to minimize people cost
Jean Bozman Research Vice President
IDC
Top 5 trends for 2004: Mobility
Chris Kozup Program Director
META Group
Mobility trends • Wi-Fi • Security • Migration
Wi-Fi • First steps -Assign a policy -Determine existing strategy -Analyze business justification
Wi-Fi • Policy -Understand standards -Determine applications -Evaluate best applications
VoIP Any technology providing voice telephony services over Internet Protocol connections.
Security • Wireless issues -Wireless standards roadmap set -Determine available resources -Evaluate complexity
Chris Kozup Program Director
META Group
Migration strategies • Update legacy networks • Update to 2.5G networks • Migrate to CDMA, GPRS
Migration obstacles • Many different mobile devices • ROI stays elusive • Too many standards
Wireless adoption • Incremental roll-out of new devices • PDAs getting voice • Cell phones getting data • All-in-one device isn’t necessary
Top 5 trends for 2004: Supply Chain Management
Martin Reynolds Research Fellow Gartner
What’s the CEO want? • More cash • Cut costs • Needs flexibility
Supply chain management • Getting rid of paperwork • Measuring efficiency of the supply chain • Evaluate RFID techniques
Getting rid of paper • Make sure internal paperwork is eliminated • Get external partners to work on systems
XML XML is the Extensible Markup Language. It is designed to improve the functionality of the Web by providing more flexible and adaptable information identification.
Dan Farber Editor in Chief, ZDNet
Martin Reynolds Research Fellow, Gartner
Measuring efficiency • Supply chain ROI is huge • Cash tied up in supply chain is enormous
Key technologies • Business process is optimized • Legacy systems are properly integrated
Measuring supply chain • Shift away from pure gross margin measurement • Move to gross margin ROI • Move items more swiftly through the supply chain
Measuring supply chain • Helps drive profits • Measure on per product basis • Evaluate cash consumed by product line • Use data to determine optimal pricing
RFID • Wal-Mart, Gillette using RFID • 3 to 5 years before broad adoption • Anticipate infrastructure needs for RFID
RFID guidelines • Prepare to capture lots of data for each product • Make sure infrastructure supports increasing data needs
Dan Farber Editor in Chief, ZDNet
Martin Reynolds Research Fellow, Gartner
Top 5 trends for CIOs: Summary
Dan Farber Editor in Chief ZDNet
Viewer value • Evaluating trends for CIOs • Developing strategic plans • Budgeting for 2004
Meeting scenario • CIO of mid-sized company • Preparing budget for 2004 • Determine how to save and spend
Top trends for 2004 • Security • Outsourcing • Server & storage utilization • Mobility • Supply chain management
Consult the Experts
David Thompson Senior Research Analyst
META Group
Andy Efstathiou Program Manager
The Yankee Group
Jean Bozman Research Vice President
IDC
Chris Kozup Program Director
META Group
Martin Reynolds Research Fellow
Gartner
Top 5 trends for 2004: Security
Security priorities • People • Process • Technology
People • Evaluate technology skills • Develop communication skills
Training goals • Train all users • Make employees aware of security • Individualize training to each employee
Who to train • Focus staff for training • Augment with outsourcing
Process • Drive efficiencies • Save dollars • Formalize structure • Measure efficiencies
Process • User life cycle management -Adding users to systems -Managing rights in systems -Removing users from systems
Process • Patch management -Audit your systems -Automate tools in development -Mostly manual at this point
Dan Farber Editor in Chief, ZDNet
David Thompson Senior Research Analyst, META Group
Technology • Prevention • Detection • Response
Technology • Detection tips -Evaluate signatures -Consider automated detection prevention tools -Develop a layered security architecture
Firewall A system designed to prevent unauthorized access to or from a private network.
Top 5 trends for 2004: Outsourcing
Andy Efstathiou Program Manager The Yankee Group
Outsourcing trends • Utility computing • Business process outsourcing • Offshore outsourcing
Utility computing Pay-per-usage processing power provided by a service organization using its own computers and facilities. Customers access the computers via a private network or over the internet and are charged according to how much computing time they use.
Utility computing • Companies installing utility infrastructure internally • Change in way companies manage infrastructure
Utility computing • Increase in cost for infrastructure components • Decrease in services costs
Dan Farber Editor in Chief, ZDNet
Andy Efstathiou Program Manager, The Yankee Group
Business Process Outsourcing (BPO) BPO is a specific outsourcing sector where an outside company manages various business tasks such as procurement or accounts payroll.
BPO facts • Heightened awareness • Narrow segments using BPO • Financial services leader in BPO
BPO facts • Most industries not outsourcing • Steep learning curve • New vendor offerings • BPO provides automation
BPO risk reward • New tools for BPO • Culture change needed • Difficult transition • Cost savings in automation
Offshore outsourcing Hiring outside the country, usually a consultant or application service provider, to transfer components or large segments of an organization’s internal IT structure, staff and processes.
Offshore outsourcing • Increase in work offshore • Infrastructure requirements growing • Human capital resources nearing capacity
Dan Farber Editor in Chief, ZDNet
Andy Efstathiou Program Manager, The Yankee Group
Coming up: Server and Storage Utilization
Top 5 trends for 2004: Server and Storage Utilization
Jean Bozman Research Vice President
IDC
Server utilization strategy Add capacity in small increments, using volume servers (server priced Less than $25,000--all chip types and operating systems) Source: IDC, 2003
Blade server market • All major vendors participating • $100-million dollar market • More standards will appear • Big vendors working with small vendors
Blade servers A single circuit board populated with components such as processors, memory, and network connections.
Blade servers Server blades are more costefficient, smaller and consume less power than traditional box-based servers.
Increasing utilization rates • New software packages for system management • Work load balancing software • System management software in scalable servers
Server utilization strategy Use virtualization techniques to link multiple servers into a single computing resource (using parallel databases and clustering software) Source: IDC, 2003
Utility computing Pay-per-usage processing power provided by a service organization using its own computers and facilities. Customers access the computers via a private network or over the internet and are charged according to how much computing time they use.
Utility computing • Early stages of utility computing • Meter and monitor use • Automate the process to minimize people cost
Jean Bozman Research Vice President
IDC
Top 5 trends for 2004: Mobility
Chris Kozup Program Director
META Group
Mobility trends • Wi-Fi • Security • Migration
Wi-Fi • First steps -Assign a policy -Determine existing strategy -Analyze business justification
Wi-Fi • Policy -Understand standards -Determine applications -Evaluate best applications
VoIP Any technology providing voice telephony services over Internet Protocol connections.
Security • Wireless issues -Wireless standards roadmap set -Determine available resources -Evaluate complexity
Chris Kozup Program Director
META Group
Migration strategies • Update legacy networks • Update to 2.5G networks • Migrate to CDMA, GPRS
Migration obstacles • Many different mobile devices • ROI stays elusive • Too many standards
Wireless adoption • Incremental roll-out of new devices • PDAs getting voice • Cell phones getting data • All-in-one device isn’t necessary
Top 5 trends for 2004: Supply Chain Management
Martin Reynolds Research Fellow Gartner
What’s the CEO want? • More cash • Cut costs • Needs flexibility
Supply chain management • Getting rid of paperwork • Measuring efficiency of the supply chain • Evaluate RFID techniques
Getting rid of paper • Make sure internal paperwork is eliminated • Get external partners to work on systems
XML XML is the Extensible Markup Language. It is designed to improve the functionality of the Web by providing more flexible and adaptable information identification.
Dan Farber Editor in Chief, ZDNet
Martin Reynolds Research Fellow, Gartner
Measuring efficiency • Supply chain ROI is huge • Cash tied up in supply chain is enormous
Key technologies • Business process is optimized • Legacy systems are properly integrated
Measuring supply chain • Shift away from pure gross margin measurement • Move to gross margin ROI • Move items more swiftly through the supply chain
Measuring supply chain • Helps drive profits • Measure on per product basis • Evaluate cash consumed by product line • Use data to determine optimal pricing
RFID • Wal-Mart, Gillette using RFID • 3 to 5 years before broad adoption • Anticipate infrastructure needs for RFID
RFID guidelines • Prepare to capture lots of data for each product • Make sure infrastructure supports increasing data needs
Dan Farber Editor in Chief, ZDNet
Martin Reynolds Research Fellow, Gartner
Top 5 trends for CIOs: Summary
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