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Africa’s high hopes : Can IT leaders deliver on the strategic potential of emerging IT?
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Can IT leaders deliver on the strategic potential of emerging IT?
1.
January 2014 Africa’s high
hopes: Can IT leaders deliver on the strategic potential of emerging IT? Selma Turki, Business Development Executive, European Institutions IBM Global technology Services In collaboration with the IBM Center for CIO Leadership © 2014 IBM Corporation
2.
and the IBM
Center for CIO Leadership Africa’s IT and business climate is changing rapidly – creating new opportunities and challenges Africa’s booming technological and consumer revolution is underway: $400B The expected growth in Africa’s consumer-facing industries between now and 20201 650M Mobile subscribers at the start of 2012, making the African mobile telephony market larger than EU or US2 50M African Facebook users as of March 20133 Technology will play a key role in driving this transformation… 2 Source: 1 African Development Bank Group, The African Consumer Market, 2012. 2 World Bank and African Development Bank (AfDB) joint report, eTransform Africa: The Transformational Use of Information and Communication Technologies in Africa, http://web.worldbank.org/WBSITE/EXTERNAL/TOPICS/EXTINFORMATIONANDCOMMUNICATIONANDTECHNOLOGIES/0,,contentMDK:23262578~pagePK:210058~piPK:210062~theSitePK 3 Socialbakers.com, “Egypt Facebook Statistics”, http://www.punkinafrica.co.za/2013/07/11/african-facebook-users-infographic/ © 2014 IBM Corporation
3.
and the IBM
Center for CIO Leadership Are Africa’s IT leaders ready? To find out, we surveyed 180 Africa-based IT decision makers Respondent distribution IT Spend Countries 17% South Africa 33% $50K or more Number of Employees 18% 1K+ employees 11% Egypt 44% 50-249 employees 31% Kenya 31% Nigeria 67% $10K to less than $50K 3 11% Morocco Source: Setting the pace in Africa, an IBM global study involving 180 Africa-based IT leaders 38% 250-999 employees © 2014 IBM Corporation
4.
and the IBM
Center for CIO Leadership Our research revealed a technology adoption gap, but Pacesetters are bridging it 4 Source: Setting the pace in Africa, an IBM global study involving 180 Africa-based IT leaders © 2014 IBM Corporation
5.
and the IBM
Center for CIO Leadership Pacesetters focus on three key areas to capitalize on emerging technologies The Pack Strategic business leadership Pacesetters Pacesetters Surpass the Pack 30% 70% 30% Secure resources for innovation 30% Develop IT skills to meet future business needs 80% Incorporate new security technology 30% Communicate and collaborate on security concerns 30% Provide professional security skills development 6 Link IT investments to business outcomes Create a risk aware culture Security 40% Use metrics and scorecards to assess IT risk IT skills Meet with our CEO/senior execs regularly 30% © 2014 IBM Corporation
6.
and the IBM
Center for CIO Leadership How can Africa-based IT leaders deliver on the strategic potential of emerging IT? Questions to consider. Assess strategic business leadership competencies What is your vision of how IT will drive the business forward? How do you link investments to business outcomes? How often do you meet with your peers in the business, including the CEO and senior executives? Which metrics and scorecards do you have in place? Implement emerging technologies and promote skills development Are you driving IT skills development to transform the organization, beyond meeting the basic needs of the business? How do you proactively develop IT skills to meet future business needs? Are you actively securing resources to pursue opportunities for technology-enabled business innovation? Tackle security maturity and preparedness How do you communicate and collaborate with your organization on security concerns? How do you deliver professional security skills development? What process is in place to incorporate new security technology? 7 © 2014 IBM Corporation
7.
and the IBM
Center for CIO Leadership Why Cloud? W h ile th e r e is n o o n e a n s w e r, c lo u d c o m p u tin g o ffe r s a n u m b e r o f “ g a m e c h a n g in g ” e n a b le r s C lo u d ’s B u s in e s s E n a b le r s 2 E x o g e n o u s F o rc e s S o c ia l M e d ia 1 M o b ility B ig D a ta H y p e rC o n n e c tiv ity S o u rc e : I B V A n a ly s is P r o v id e s l im it l e s s , c o s t e f f e c t iv e c o m p u t in g c a p a c it y to s u p p o rt g ro w th C ost F le x ib ilit y S h i f t s f ix e d t o v a r i a b le c o s t Pay as and when needed 6 B u s in e s s S c a la b ilit y 3 F a s t e r t im e t o m a r k e t S u p p o r t s in n o v a t iv e i d e a s E c o -s y s te m C o n n e c t iv it y N e w v a lu e n e t s P o t e n t ia l n e w b u s in e s s e s 4 5 C o n t e x t - d r iv e n V a r ia b ilit y M a rk e t A d a p t a b ilit y M asked C o m p le x it y E x p a n d p r o d u c t s o p h is t ic a t i o n S i m p le r f o r c it iz e n s / u s e r s U s e r d e f i n e d e x p e r ie n c e s I n c r e a s e s r e le v a n c e © 2014 IBM Corporation
8.
and the IBM
Center for CIO Leadership The optimal cloud model varies based on the unique needs and goals of an organization Private Clouds Hybrid Public Clouds Flexible business service delivery and consumption models Evolve existing infrastructure to Cloud Progressive implementation roadmaps using Cloud enablement components Flexible deployment options through pattern-based approaches Pre-integrated, simple to deploy Cloud platforms with built-in expertise Immediate access to a managed platform with variable cost Externally hosted Cloud services platform with enterprise QoS Leverage Software as a Service (SaaS) Access 60+ public cloud SaaS solutions Common Cloud platform built an open standards reference model © 2014 IBM Corporation
9.
and the IBM
Center for CIO Leadership Tunisie; Feuille de route 2018, une excellente plateforme © 2014 IBM Corporation
10.
and the IBM
Center for CIO Leadership © 2014 IBM Corporation
11.
and the IBM
Center for CIO Leadership G o v e r n m e n ts c a n u s e in d u s tr y fr a m e w o r k s to s h a p e th e d e g r e e c lo u d c a n b e u s e d to e n a b le th e ir b u s in e s s s tr a te g ie s C lo u d E n a b le m e n t F r a m e w o r k T ra n s fo rm Im p ro v e V a lu e C h a in C re a te D is r u p t o r s In n o v a t o r s O p t im iz e r s Enhance E x te n d In v e n t C u s to m e r V a lu e P r o p o s itio n D i s r u p t o r s c r e a t e r a d ic a lly d if f e r e n t v a lu e p r o p o s it io n s , g e n e r a t e n e w c u s t o m e r n e e d s a n d s e g m e n ts a n d e v e n n e w e c o -s y s te m s I n n o v a t o r s s ig n if ic a n t ly e x t e n d c u s t o m e r v a lu e p r o p o s it io n s r e s u lt in g in n e w r e v e n u e s t r e a m s a n d t r a n s f o r m t h e ir r o le w it h in t h e ir in d u s t r y o r e n t e r a d if f e r e n t in d u s t r y e c o s y s te m O p t i m i z e r s u s e t h e C lo u d t o in c r e m e n t a lly e n h a n c e t h e ir c u s t o m e r v a lu e p r o p o s it io n s w h ile im p r o v in g t h e ir o r g a n iz a t io n ’s e f f ic ie n c y © 2014 IBM Corporation
12.
and the IBM
Center for CIO Leadership T o m a x im iz e th e v a lu e o f th e c lo u d G o v e r n m e n ts w ill n e e d to th in k d iffe r e n tly a b o u t c lo u d w o r k lo a d s , c itiz e n s e r v ic e s a n d in n o v a tio n C lo u d E n a b le m e n t F r a m e w o r k C re a te In n o v a t o r s T ra n s fo rm Im p ro v e V a lu e C h a in M a n y g o v e r n m e n t c lo u d p r o je c t s a r e f o c u s e d o n c o n s o lid a t io n , c o lla b o r a t io n ( i. e . e m a il) , a n d w e b s it e o p e r a t io n s D is r u p t o r s T o t a k e f u ll a d v a n t a g e o f t h e c lo u d ’s p r o m is e , c o r e s e r v ic e s m u s t b e p la c e d in it N e w a d o p t io n s t r a t e g ie s s h o u ld b e c o n s id e r e d : O p t im iz e r s • Enhance E x te n d In v e n t C itiz e n V a lu e P r o p o s itio n S t a t ee s a s C SS P t o m u n ic ip a lit ie s a nn d a g e n c ie s m ip • C lo uu d c o lla b o r a t io n w it h t h e p r iv a t e s e c t o r io • E n tt r e p r e n e u r ia l b u s in e s ss m a n d a t e s w it h in t h e s t a t e ’s c u ltlt u rr e © 2014 IBM Corporation
13.
and the IBM
Center for CIO Leadership Organizations must balance optimization with innovation to enable new product and service models. Innovation Optimization Next generation of hybrid architectures Innovation drives need for continuous IT optimization 1 CIO1 New economics of IT fuels investments in innovation CMO2 Chief information officer (CIO); 2Chief marketing officer (CMO) © 2014 IBM Corporation
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and the IBM
Center for CIO Leadership K e y C o n s id e r a t io n : W h a t w o r k lo a d s t o m o v e to c lo u d a n d w h a t a p p lic a tio n d e liv e r y m o d e l is b e s t fo r th a t w o r k lo a d ? T ra d itio n a l O n -P re m is e s A p p lic a t io n s D a ta R u n t im e M id d le w a r e O /S V ir t u a liz a t io n S e rve rs S to ra g e N e t w o r k in g In fra s tru c tu re a s a S e rv ic e A p p lic a t io n s D a ta R u n t im e M id d le w a r e O /S V ir t u a liz a t io n S e rve rs S to ra g e N e t w o r k in g P la tfo rm a s a S e rv ic e A p p lic a t io n s D a ta R u n t im e M id d le w a r e O /S V ir t u a liz a t io n S e rve rs S to ra g e N e t w o r k in g S o ftw a re a s a S e rv ic e A p p lic a t io n s D a ta R u n t im e M id d le w a r e O /S V ir t u a liz a t io n S e rve rs S to ra g e N e t w o r k in g S t a n d a r d iz a t io n ; O P E X s a v in g s ; f a s t e r t im e t o v a lu e V e n d o r M a n a g e s in C l o u d C lie n t M a n a g e s © 2014 IBM Corporation
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Center for CIO Leadership LuxCloud, the fourth pillar of Luxembourg's DCL Group (EuroDNS, Datacenter Luxembourg, VoipGate), was founded in response to a fast growing software as a service (SaaS) market. The emergence of more and more SaaS applications has resulted in high demand from traditional software resellers and small and medium sized ISPs for tools to automate the online sale of hosted applications. LuxCloud solutions enable resellers, software distributors and service providers to offer SMEs the applications and services available on their platforms, such as the hosting applications; e-mail and collaboration; business processes; and packages for infrastructure. When IBM and LuxCloud met, the two companies instantly saw that their offerings complemented one another. IBM is helping clients excel in cloud computing, providing secure and reliable software software as service (SaaS), platform as a service (PaaS) and infrastructure as a service (IaaS). These services can be offered on a "pay-as-you-go" basis IBM and LuxCloud now offer a cloud environment installed on Luxembourg soil, which ensures resilience and the total availability of data. The shared, private cloud model enables pooling of resources while still guaranteeing the confidentiality of data – an essential criterion for the finance sector in Luxembourg, which is subject to extremely strict regulation © 2014 IBM Corporation
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Center for CIO Leadership Cloud in action: Drivewyze Eliminates costly IT infrastructure with an IBM SmartCloud solution The need: The solution: • Drivewyze needed a cost-effective, managed infrastructure that could scale to meet a rapid increase in customer demand. • The IBM SmartCloud Enterprise+ solution provides a flexible, fully managed environment that reduces administrative workload and enables IT resources to focus on core applications. “Choosing to partner with IBM was a fairly easy decision and the advantages of leveraging IBM resources to help manage our infrastructure was a big deciding factor.” Benefits: • Increases customer satisfaction with nearreal-time scaling to more swiftly meet growthin-market demand • Reins in IT costs with • a fully managed model that eliminates the need to acquire up to six IT resources for support • Capitalizes on a securityrich, highly available IBM architecture that establishes credibility with risk-averse customers Brian Mofford, vice president, Drivewyze © 2014 IBM Corporation
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Center for CIO Leadership Cloud in action: TP Vision Reducing costs by 40 percent with an IBM SmartCloud solution The need: • As TP Vision grew, it was challenged to scale its traditional hardware infrastructure to meet customer demands efficiently and cost effectively. The solution: • TP Vision moved its Smart TV solution’s development, testing and hosting operations from a traditional hardware architecture to an IBM SmartCloud Enterprise+ environment. “TP Vision was looking for a solution that would allow us to support growing customer demand, and IBM was the partner to do that with. The IBM SmartCloud infrastructure fits perfectly with our vision.” Benefits: • Reduces operating costs with a usage-based pricing model, translating into around a 40 percent decrease in cost per TV • Increases customer satisfaction with near-realtime scaling to meet demand as well as cyclical and unplanned spikes in usage • Eliminates the need to acquire and set up hardware, reducing provisioning time from up to two months to minutes Remco Meeuwesen, director operations, Smart TV © 2014 IBM Corporation
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Center for CIO Leadership Cloud in Action: Energy and Utility •An energy & utility company in India •The Client : •Energy and utility company based out of India. • They build, own and operate renewable energy power plants to generate clean energy through renewable sources namely wind; solar; bio mass and hydro •As a thriving mid-size organization in an emerging industry, they expect to grow their business 4 times over the next 5 years •In Collaboration With: •The Need : •To help support its growth needed a partner that could provide IT infrastructure that is flexible and scalable with growing business demands. •As a newer organization, they wanted to minimize up-front IT capital expenditures so that they could focus investments on business growth. •They sought a partner that could provide business insights and be a true partner in business growth •Benefits : • Flexibility and scalability of IT infrastructure to support 4x business growth over 5 years • Fast provisioning – minutes versus hours/days • Low capital expense • Ability to harness business insights and skills from a trusted partner •The Solution: •10-year strategic outsourcing partnership including a SoftLayer cloud solution. The SoftLayer solution enabled easy integration of cloud into the deal with its easy to provision components. © 2014 IBM Corporation
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Center for CIO Leadership Using the IBM SmartCloud Enterprise for mission critical applications Development & Test Batch Processing Web Applications A public broadcasting company is moving from tape-based assets to digital formats, stretching IT beyond capacity. A university is using the IBM SmartCloud Enterprise and CloudBroker software to develop new antibiotics to fight disease. An ISV created a collaborative website for a government sponsored “innovation challenge” on improving education. The cloud solution allows virtual machines to be provisioned in hours rather than days providing a rapid response to changing testing and storage demands. Researchers were able to analyze massive amounts of data within two weeks, a task that would have taken several months without cloud. They needed to quickly develop and test the applications/ website, as well as host and run the back-end infrastructure to support the website. © 2014 IBM Corporation
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Center for CIO Leadership Wuxi Province China Railway Mobily Bharti Airtel MOD NZ LuxCloud Defense Ministry Asia Europe © 2014 IBM Corporation
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Center for CIO Leadership © 2014 IBM Corporation
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Center for CIO Leadership © Copyright IBM Corporation 2014 IBM Corporation New Orchard Road Armonk, NY 10504 Produced in the United States of America January 2014 IBM, the IBM logo and ibm.com are trademarks of International Business Machines Corporation in the United States, other countries or both. If these and other IBM trademarked terms are marked on their first occurrence in this information with a trademark symbol (® or TM), these symbols indicate U.S. registered or common law trademarks owned by IBM at the time this information was published. Such trademarks may also be registered or common law trademarks in other countries. Other product, company or service names may be trademarks or service marks of others. A current list of IBM trademarks is available on the web at “Copyright and trademark information” at ibm.com/legal/copytrade.shtml CIP03069-USEN-00 23 © 2014 IBM Corporation
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Center for CIO Leadership Organizations must balance optimization with innovation to enable new product and service models. Innovation Optimization Next generation of hybrid architectures Innovation drives need for continuous IT optimization 1 CIO1 New economics of IT fuels investments in innovation CMO2 Chief information officer (CIO); 2Chief marketing officer (CMO) © 2014 IBM Corporation
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Center for CIO Leadership IT and line of business executives are under tremendous pressure to achieve the balance and drive business growth. Pressures on IT executives: Pressures on line-of-business (LOB) executives: • Provide an agile, cost-effective infrastructure that can enable more nimble business processes and models with flexible, scalable operations • Keep the infrastructure up and running, mitigating disruptions to the business • Control costs and have greater transparency to the budgetary and operational impacts of decisions • Mitigate financial, operational and customer marketplace risk • Demonstrate how their decisions deliver value back to the business • • • • • Drive innovation and business value Gain more competitive advantage Quickly adapt to market changes Increase business agility and speed Rapidly deploy foundation IT © 2014 IBM Corporation
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Center for CIO Leadership IT executives are facing inefficiencies in their traditional data centers, making it difficult for them to meet business demands. Common challenges with traditional server environments include: • Low utilization of servers • Having to dedicate a substantial number of servers within a typical IT environment to handle peak loads • Finding instant access to available IT infrastructure resources (software packages and platforms) to meet unexpected loads from new business initiatives • Extensive, arduous labor-intensive process to procure, build and maintain servers • Long deployment times • Mismatched development and test and production environments • High operational and cost inefficiencies due to lack of standardization © 2014 IBM Corporation
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Center for CIO Leadership Line-of-business leaders are also facing a host of challenges, making it difficult for them to meet business demands. Common challenges that LOB leaders face: • IT organization unable to fulfill requirements • Testing applications and putting them into production tending to be time- and labor-consuming, and costly • Business processes inhibiting customer interaction • Lack of access to current and key data affecting decision making © 2014 IBM Corporation
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Center for CIO Leadership Cloud computing can help IT executives transform their infrastructure to support business growth. : Investing in cloud can help you • Reduce operational, infrastructure and startup costs • Speed time to market through increased efficiency and automation • Scale operations to meet market dynamics and business strategy • Reduce complexities in managing virtualized environments • Improve security of business and infrastructure functions • Eliminate downtime and deliver on application servicelevel agreements service-level agreements (SLAs) © 2014 IBM Corporation
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Center for CIO Leadership Cloud computing can help LOB executives transform business, reach new customers, create new markets and address industry imperatives. LOB executives are charged with: • Bringing new quality products and services to market fast • Fostering customer intimacy and interaction to create a customer-focused enterprise • Entering new markets and industries • Leveraging the web, social media and other technologies to reach new customers • Mining insights from data that feeds innovation • Driving innovation while managing cost • Addressing imperatives in industries such as banking, chemicals and petroleum, energy and utilities and healthcare © 2014 IBM Corporation
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Center for CIO Leadership To seize the opportunities offered by cloud, you need an enterpriseclass, production-ready managed cloud infrastructure. You need a cloud administered by a technology company that can provide: • Consistent availability • Enterprise-class security • Full management of the cloud infrastructure and workloads • Scalable access to applications, resources and services • Choice of operating systems and configurations • Service-level agreements that extend to the virtual machine level … so that your IT department can focus on new implementations rather than just maintaining the existing infrastructure. © 2014 IBM Corporation
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Center for CIO Leadership Uniquely able to accelerate value by leveraging all layers of cloud, a standards-based approach and deep skills. IBM can help you Think it Build it Cloud experts that helps you to strategize how to use cloud to drive not just savings but revenue and growth Cloud technologies whether you want to build your own private or hybrid cloud, smarter cloud-based products and services, and data analytics in the cloud Tap into it IBM SmartCloud® offerings: The instant way to tap into analytics, softwareas-a-service (SaaS) business applications and hosting in the cloud © 2014 IBM Corporation
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Center for CIO Leadership Expanding footprints and reach: extending value across the globe. Amsterdam, The Netherlands Ehningen, Germany Winterthur, Switzerland Seattle, U.S.A San Jose, U.S.A Boulder, U.S.A Toronto, Canada Washington, DC, U.S.A Raleigh, U.S.A Montpellier, France Barcelona, Spain Tokyo, Japan Dallas(6), U.S.A Houston(2), U.S.A Singapore )Enterprise, SoftLayer( Sao Paulo, Brazil Legends SmartCloud Enterprise and SmartCloud Enterprise+ data centers SmartCloud Enterprise only data center location SoftLayer data center location SmartCloud Enterprise+ only data center location Sydney, Australia © 2014 IBM Corporation
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Center for CIO Leadership Look for Open standards, no vendor lock-in; The OpenStack Foundation is Open for Business OpenStack is a global collaboration of developers & cloud computing technologists working to produce an ubiquitous Infrastructure as a Service (IaaS) open source cloud computing platform for public & private clouds. Platinum Sponsors Gold Sponsors APR 2012 30 UGs 47 UGs JAN 2013 As of As of Exponential growth in participation 2600 5600+ Individuals Individuals OpenStack Compute (core) OpenStack Image Service (shared service) OpenStack Object Store (core) OpenStack Identity (shared service) Provision and manage large networks of virtual machines Create petabytes of secure, reliable storage using standard HW OpenStack Dashboard (core) Enables administrators and users to access & provision cloudbased resources through a self-service portal. Catalog and manage massive libraries of server images Unified authentication across all OpenStack projects and integrates with existing authentication systems. Code available under Apache 2.0 license. Design tenets – scale & elasticity, share nothing & distribute everything http://openstack.org © 2014 IBM Corporation
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