What is Happening?
Earlier this month in a Wired article, the chairman of the Federal Communications Commission (FCC) proposed stronger government regulation of the Internet. Chairman Tom Wheeler suggested that Internet service providers (ISPs) should not give preferential treatment to some users by blocking content or creating “fast lanes.” Wheeler suggested regulating the ISPs by changing their status to be under Title II of the Telecommunications Act. Title II status means the government would regulate the Internet as a public utility.
President Obama had already chimed in, asserting that it’s essential to the economy to “keep the Internet free and open” by protecting net neutrality for everyone. He says there should be “no gatekeepers of content” and that we need to make net neutrality a “legal obligation” for ISPs. He goes on to ask the FCC to reclassify the Internet as Title II. The Internet, he says, is “an essential part of everyday communication and everyday life.” Consumers, not the ISPs, should decide what Web sites they want to access. Obama’s statement lists four main categories of rules:
- No blocking,
- No throttling,
- Increased transparency, and,
- No paid prioritization.
The five-person FCC panel will vote on the 332-page proposal for the order on Thursday, February 26. The FCC will not release the plan to public before the vote. According to those who have seen it, eight of the pages are regulations, 79 pages are details of the provisions, and the rest are references and comments. The expectation is for the FCC to adopt the proposal.
FCC commissioner Ajit Pai, made a statement on Feb. 10 saying that, “the American people are being misled.” In a counter to President Obama’s and Chairman Wheeler’s assertions, Pai sees “adverse consequences to the entire Internet economy” should the rules become law. He says these are “vast, yet vague regulations” with “exogenous political influences.” Pai emphasizes that the plan:
- Regulates rates,
- Claims no competition exists for the majority of Americans,
- Scrutinizes all options but unlimited,
- Tolerates the FCC micromanaging the Internet,
- Allows class action lawsuits against providers,
- Regulates ISPs utility-style, and,
- Opens door to billions in new taxes on Internet.
As a result of ongoing discussions with users and providers of Cloud infrastructure, Saugatuck has identified that Cloud infrastructures are not immune to the fundamental characteristic of any shared resource: resource sharing can result in variable service levels.
In a recently published Strategic Perspective, Saugatuck explains why Cloud infrastructures deliver inconsistent service. Saugatuck urges Cloud users to perform ongoing monitoring of performance of key Cloud-based workloads and offers some possible approaches for dealing with inconsistent service, including: Continue reading
With the continuing shift toward boundary-free business, and the attendant shift toward creating and including more digital business, how are the roles, the influence, and the value of the CFO to the enterprise changing? A new Strategic Perspective from Saugatuck Technology examines how the scope of CFO involvement, influence, and value is not only changing, but expanding radically, and relatively quickly, into new areas – typically without adequate management resources. Continue reading
What is Happening?
Earlier today, Saugatuck published its executive leadership report summarizing the key takeaways from its recent 2014 Cloud Business Summit, held in New York City on Nov. 12. As detailed in a previous Research Alert (entitled “Trip Report: Key Highlights from 2014 Cloud Business Summit”), more than 100 large enterprise CIOs / CTOs, CFOs and CMOs participated in the day-long, peer-level forum.
In this Research Alert, we highlight some of the key insights and best practice takeways from the report to help these executives develop, refine, and optimize new and better ways of doing business in the Cloud-first, Digital Business era. The 42-page report, entitled “2014 Cloud Business Summit Leadership Report: The Digital Business Era” is available via Saugatuck’s web site. Current subscription research clients may access the report by clicking here.
Sessions and discussions during the Summit centered on ways that Cloud and its related capabilities (e.g., Mobility, Social IT, Advanced Analytics/Big Data) are enabling significant innovation and improvement in how business is created, accomplished, and managed, as well as how these capabilities and innovations are secured and governed.
The bottom line? Rethinking and reinventing business and IT strategy, operations, management, engagement, and investment to enable digital business strategies has never been more advantageous to the enterprise – but it’s only a matter of time before that advantage turns to necessity. Continue reading
On November 12th, 2014, Saugatuck Technology held its 4th annual Cloud Business Summit at the Yale Club of New York City. As with prior Summits, our event brought together more than 100 large-enterprise CIOs, CTOs and senior business and finance leaders – to explore how they can and are realizing value from the Cloud.
The key focus this year was the significant impact that Cloud is having in shaping core business strategy, as we evolve into the era of Digital Business.
In this Fireside chat, Saugatuck Research Fellow Bruce Guptill sits down with Tim Minahan, CMO SAP Cloud. Minahan discusses the impact that Cloud has had, not just on the cost profile of IT, but also in how it has drastically reshaped the agility that businesses are capable of achieving. Guptill and Minahan go on to talk about how businesses are opening new doors by harvesting data at scale, and using this to help them move beyond traditional TCO models to look instead the opportunities Cloud can create for their businesses. Continue reading
What is Happening?
Over the last several months, Saugatuck has been looking into phenomena increasingly (and commonly) referred to as “Hyperscale”. Hyperscale appears to be entering common parlance just as Cloud became increasingly well-understood and then mainstream over the past five plus years. Common definitions of Hyperscale focus on two major factors: the speed of scaling resources allocated to a task; and the extent of the resources available in the infrastructure.
However, just as Cloud offerings today don’t look like the Cloud offerings of 3 years ago, the requirements and usage of infrastructures that can be termed Hyperscale are evolving rapidly. Not too long ago, a primary value proposition for Cloud infrastructure adoption was economic, due to improved hardware utilization through automation of resource provisioning / allocation to individual workloads. This same automated provisioning is now viewed as a significant boon to IT and Business agility, not just a means to save money.
Similarly, Hyperscale has been viewed as a requirement for some types of workloads and as a foundation for some Cloud providers. However, Saugatuck projects that Hyperscale will increasingly become recognized as a key enabler of new types of application design, and broadly deployed among a much larger pool of Cloud infrastructures. Continue reading
As part of Saugatuck’s “Finance in the Cloud” Series, we have conferenced with executives from over a dozen providers of Financial Management Solutions to learn more about the their solutions, their market reception, their future plans for enhancement and how they view “Finance in the Cloud.” We have also conducted an in-depth survey of over 300 buyers of Cloud Finance solutions, both CFOs and CIOs at midsize to very large organizations (See 1492SSR, Cloud Financials – The Third Wave Emerges, 17 December 2014, also summarized in LENS360, Financials in the Cloud – New Survey Insights, 18 December 2014).
We have posed a number of scenarios to our survey respondents and analyzed their responses regarding how their organizations view “Finance in the Cloud (See Figure 1).”
Figure 1: Five Scenarios for Cloud Finance Migration
Source: Saugatuck Technology Inc.
One of the leading current preferences, Remain On-Premises, though it shrinks in our respondents plans and preferences over the next five years, still remains a significant option for those CFOs, especially very large enterprise CFOs, reluctant to trust their Finance solutions to the Cloud for any number of reasons. Continue reading
Adoption of Cloud-based solutions is expanding across enterprises and across business departments within enterprises. Saugatuck’s on-going surveys and discussions with IT executives indicate that significant expansion of Cloud usage will continue over the next two years. However, as experience grows, IT management teams are learning the “realities” of Cloud IT. In a recently published Strategic Perspective, Saugatuck reviews four reality areas discussed by an expert panel and audience of IT executives at Saugatuck’s recent Cloud Business Summit (CBS2014) conference in New York City. The four reality areas are characterized by the following questions posed to initiate the panel discussions: Continue reading
Saugatuck Technology has recently revisited its long-standing coverage of the CFO and the finance systems that support that office in a series of interviews, briefings, and surveys to plumb the changes underway, as the Cloud asserts its viability for core business systems (See 1492SSR, Saugatuck Technology’s 2014 CFO / CIO Survey: Cloud Financials – The Third Wave Emerges,18Dec2014). The CIO / CFO survey report included responses from 317 finance and IT executives who participated in the research, with 85 percent senior decision makers with Director and above titles. Continue reading
Last month, we revisited and fleshed out the Saugatuck Boundary-free Enterprise™ business model by examining the four critical types of “boundaries” that formerly limited business (and IT) abilities, and which are being erased, realigned, or otherwise shifted: Technological, Functional, Organizational, and Cultural.
As we began saying almost a decade ago, “Cloud changes everything,” and its biggest change is in how, when, where, and why enterprises do business. Because we are increasingly likely to rely on new and different types of technologies and providers to do business, our relationships with IT providers will need to be re-examined and rebuilt. This will only expand and accelerate as more types and sizes of firms add, or migrate to, more types of Digital Business. Continue reading