Welcome!

IBM Cloud Authors: Pat Romanski, Liz McMillan, Elizabeth White, Anders Wallgren, AppDynamics Blog

Blog Feed Post

The Third Epoch: Re-verticalization of IT

The shift from the mainframe to modern epochs in IT infrastructure has been well documented numerous times. Depending on the particular storyteller, the tale starts with deeply-integrated, vertical stacks that encompass everything from compute to networking in large systems that required small armies of people to deploy and manage.

As technology matured and the Internet exploded, what were once integrated functions were broken out into standalone components. This led to the second real epoch in IT infrastructure, most notable because it gave birth to the best of breeders.

This second epoch has served us well. We saw the birth of new architectures. We have perched upon new performance peaks. We have mastered new capabilities that have transformed the whole of IT. And because we are cobbling together our solutions from standalone components, we have been able to do all of this while we customize the architecture to suit our sometimes very unique needs.

But all of that has come at a cost: namely, complexity. We might experience that complexity firsthand in the form of policy madness. Or we might be secondhand consumers, choosing to deal with it by paying for service integration. Whichever we choose, we ultimately pay in one way or another.

The costs of infrastructure assembly—both time and money—are already shaping the market. Efforts like VCE and Exadata are good indicators of a change in how infrastructure and applications are consumed. Rather than relying on specialists who integrate products upon delivery, some customers are choosing to purchase already-integrated solutions.

The distinction here is integration as a service vs. integration as part of a product. In the former, integration is the outcome of some effort that happens after a product is shipped. In the latter, integration is an actual part of the product. The difference between the two might seem subtle, but it is important in terms of how the market will evolve.

If you believe that buying patterns will shift more towards a re-verticalization of IT, then individual constituents in the current IT stack will ultimately align to a relatively small number of overarching IT providers. You won’t have an integration layer in the market that handles this function (or more precisely, that layer becomes much smaller).

Today there is a swath of resellers and systems integrators that perform this integration function. In a re-verticalized market, the large suppliers handle the integration burden by assembling products that are already integrated and providing both the services and support around the final infrastructure as a whole.

This makes perfect business sense because right now those large players are leaving money on the table. If they can act as their own integrators, they can keep pricing low (essentially lowering prices but maintaining margins by cutting out the supplier in the middle).

Of course, this is not a transition that everyone can make. The largest suppliers have the customer relationships to pull this off. The smaller suppliers do not have the product center of gravity, and they lack the customer reach to operate at the kind of scale necessary to dominate.

These dynamics form the major case behind the mass consolidation of infrastructure suppliers, and arguably this is why Cisco’s CEO John Chambers has both set Cisco’s targets on being the number 1 IT supplier, and predicted a brutal consolidation of the networking space.

It is conceivable that the market can only support a small number of very large companies. Oracle and Cisco would seem poised to do well here, as would companies like HP. Dell is interesting depending on what other steps they take from a solutions perspective. IBM and maybe even companies like Intel start to look interesting.

There will be very large companies that end up on the outside looking in. It would not be surprising to see multi-billion-dollar companies struggle to grow in a changing environment like this. They might not outright die (epochs in IT are measured in decades, not individual years), but they could see a radical tapering of growth, which typically leads to other issues (talent, product pipeline, and so on).

Now while this new epoch of IT might be characterized by the mega suppliers, it won’t be only the large players that have a role. It is possible to deliver components as part of an integrated solution. But the platforms themselves will be fundamentally different, which means the next epoch components must be designed with a different endgame in mind.

The question is really about how companies exist in the second epoch while simultaneously preparing for the third. This is nontrivial – enough so that it deserves its own (future) blog post.

[Today’s fun fact: The first lighthouse to use electricity was the Statue of Liberty. Come on, baby, light my fire.]

The post The Third Epoch: Re-verticalization of IT appeared first on Plexxi.

Read the original blog entry...

More Stories By Michael Bushong

The best marketing efforts leverage deep technology understanding with a highly-approachable means of communicating. Plexxi's Vice President of Marketing Michael Bushong has acquired these skills having spent 12 years at Juniper Networks where he led product management, product strategy and product marketing organizations for Juniper's flagship operating system, Junos. Michael spent the last several years at Juniper leading their SDN efforts across both service provider and enterprise markets. Prior to Juniper, Michael spent time at database supplier Sybase, and ASIC design tool companies Synopsis and Magma Design Automation. Michael's undergraduate work at the University of California Berkeley in advanced fluid mechanics and heat transfer lend new meaning to the marketing phrase "This isn't rocket science."

@ThingsExpo Stories
Artificial Intelligence has the potential to massively disrupt IoT. In his session at 18th Cloud Expo, AJ Abdallat, CEO of Beyond AI, will discuss what the five main drivers are in Artificial Intelligence that could shape the future of the Internet of Things. AJ Abdallat is CEO of Beyond AI. He has over 20 years of management experience in the fields of artificial intelligence, sensors, instruments, devices and software for telecommunications, life sciences, environmental monitoring, process...
SYS-CON Events announced today that Ericsson has been named “Gold Sponsor” of SYS-CON's @ThingsExpo, which will take place on June 7-9, 2016, at the Javits Center in New York, New York. Ericsson is a world leader in the rapidly changing environment of communications technology – providing equipment, software and services to enable transformation through mobility. Some 40 percent of global mobile traffic runs through networks we have supplied. More than 1 billion subscribers around the world re...
SYS-CON Events announced today that Stratoscale, the software company developing the next generation data center operating system, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Stratoscale is revolutionizing the data center with a zero-to-cloud-in-minutes solution. With Stratoscale’s hardware-agnostic, Software Defined Data Center (SDDC) solution to store everything, run anything and scale everywhere...
Angular 2 is a complete re-write of the popular framework AngularJS. Programming in Angular 2 is greatly simplified – now it's a component-based well-performing framework. This immersive one-day workshop at 18th Cloud Expo, led by Yakov Fain, a Java Champion and a co-founder of the IT consultancy Farata Systems and the product company SuranceBay, will provide you with everything you wanted to know about Angular 2.
SYS-CON Events announced today that Men & Mice, the leading global provider of DNS, DHCP and IP address management overlay solutions, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. The Men & Mice Suite overlay solution is already known for its powerful application in heterogeneous operating environments, enabling enterprises to scale without fuss. Building on a solid range of diverse platform support,...
In his session at @ThingsExpo, Chris Klein, CEO and Co-founder of Rachio, will discuss next generation communities that are using IoT to create more sustainable, intelligent communities. One example is Sterling Ranch, a 10,000 home development that – with the help of Siemens – will integrate IoT technology into the community to provide residents with energy and water savings as well as intelligent security. Everything from stop lights to sprinkler systems to building infrastructures will run ef...
You deployed your app with the Bluemix PaaS and it's gaining some serious traction, so it's time to make some tweaks. Did you design your application in a way that it can scale in the cloud? Were you even thinking about the cloud when you built the app? If not, chances are your app is going to break. Check out this webcast to learn various techniques for designing applications that will scale successfully in Bluemix, for the confidence you need to take your apps to the next level and beyond.
Manufacturers are embracing the Industrial Internet the same way consumers are leveraging Fitbits – to improve overall health and wellness. Both can provide consistent measurement, visibility, and suggest performance improvements customized to help reach goals. Fitbit users can view real-time data and make adjustments to increase their activity. In his session at @ThingsExpo, Mark Bernardo Professional Services Leader, Americas, at GE Digital, will discuss how leveraging the Industrial Interne...
Whether your IoT service is connecting cars, homes, appliances, wearable, cameras or other devices, one question hangs in the balance – how do you actually make money from this service? The ability to turn your IoT service into profit requires the ability to create a monetization strategy that is flexible, scalable and working for you in real-time. It must be a transparent, smoothly implemented strategy that all stakeholders – from customers to the board – will be able to understand and comprehe...
Increasing IoT connectivity is forcing enterprises to find elegant solutions to organize and visualize all incoming data from these connected devices with re-configurable dashboard widgets to effectively allow rapid decision-making for everything from immediate actions in tactical situations to strategic analysis and reporting. In his session at 18th Cloud Expo, Shikhir Singh, Senior Developer Relations Manager at Sencha, will discuss how to create HTML5 dashboards that interact with IoT devic...
The increasing popularity of the Internet of Things necessitates that our physical and cognitive relationship with wearable technology will change rapidly in the near future. This advent means logging has become a thing of the past. Before, it was on us to track our own data, but now that data is automatically available. What does this mean for mHealth and the "connected" body? In her session at @ThingsExpo, Lisa Calkins, CEO and co-founder of Amadeus Consulting, will discuss the impact of wea...
There is an ever-growing explosion of new devices that are connected to the Internet using “cloud” solutions. This rapid growth is creating a massive new demand for efficient access to data. And it’s not just about connecting to that data anymore. This new demand is bringing new issues and challenges and it is important for companies to scale for the coming growth. And with that scaling comes the need for greater security, gathering and data analysis, storage, connectivity and, of course, the...
Digital payments using wearable devices such as smart watches, fitness trackers, and payment wristbands are an increasing area of focus for industry participants, and consumer acceptance from early trials and deployments has encouraged some of the biggest names in technology and banking to continue their push to drive growth in this nascent market. Wearable payment systems may utilize near field communication (NFC), radio frequency identification (RFID), or quick response (QR) codes and barcodes...
SYS-CON Events announced today that DatacenterDynamics has been named “Media Sponsor” of SYS-CON's 18th International Cloud Expo, which will take place on June 7–9, 2016, at the Javits Center in New York City, NY. DatacenterDynamics is a brand of DCD Group, a global B2B media and publishing company that develops products to help senior professionals in the world's most ICT dependent organizations make risk-based infrastructure and capacity decisions.
SYS-CON Events announced today TMCnet has been named “Media Sponsor” of SYS-CON's 18th International Cloud Expo, which will take place on June 7–9, 2016, at the Javits Center in New York City, NY, and the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Technology Marketing Corporation (TMC) is the world's leading business-to-business and integrated marketing media company, servicing niche markets within the com...
The IoT has the potential to create a renaissance of manufacturing in the US and elsewhere. In his session at 18th Cloud Expo, Florent Solt, CTO and chief architect of Netvibes, will discuss how the expected exponential increase in the amount of data that will be processed, transported, stored, and accessed means there will be a huge demand for smart technologies to deliver it. Florent Solt is the CTO and chief architect of Netvibes. Prior to joining Netvibes in 2007, he co-founded Rift Technol...
Join IBM June 8 at 18th Cloud Expo at the Javits Center in New York City, NY, and learn how to innovate like a startup and scale for the enterprise. You need to deliver quality applications faster and cheaper, attract and retain customers with an engaging experience across devices, and seamlessly integrate your enterprise systems. And you can't take 12 months to do it.
This is not a small hotel event. It is also not a big vendor party where politicians and entertainers are more important than real content. This is Cloud Expo, the world's longest-running conference and exhibition focused on Cloud Computing and all that it entails. If you want serious presentations and valuable insight about Cloud Computing for three straight days, then register now for Cloud Expo.
IoT device adoption is growing at staggering rates, and with it comes opportunity for developers to meet consumer demand for an ever more connected world. Wireless communication is the key part of the encompassing components of any IoT device. Wireless connectivity enhances the device utility at the expense of ease of use and deployment challenges. Since connectivity is fundamental for IoT device development, engineers must understand how to overcome the hurdles inherent in incorporating multipl...
Machine Learning helps make complex systems more efficient. By applying advanced Machine Learning techniques such as Cognitive Fingerprinting, wind project operators can utilize these tools to learn from collected data, detect regular patterns, and optimize their own operations. In his session at 18th Cloud Expo, Stuart Gillen, Director of Business Development at SparkCognition, will discuss how research has demonstrated the value of Machine Learning in delivering next generation analytics to im...