Dr. Jimmy Schwarzkopf main tent trends 2016

1. 1
2016 State of IT:
This is the year you
make a difference
“The modern rule of competition is:
whoever learns fastest, wins.”
Eric Ries

2. 2
Agenda

3. 3
phases of every technological revolution
“INSTALLATION
PHASE”
when the
technology comes
into the market
and the
infrastructure is
built
“DEPLOYMENT
PHASE”
when the
technology is
broadly adopted
by society
“TURNING POINT”
between the two phases is
almost always marked by a
financial crash and recovery
4th Industrial
Revolution
4th Industrial
Revolution
Professor Carlota Perez

4. 4
Fourth Industrial Revolution
Davos 2016

5. 5
World Unprepared to Deal with
'Fourth Industrial Revolution'
“This fourth revolution comes on us like a tsunami.
The speed is not to be compared with last revolutions:
• It will fundamentally alter the way we live, work,
and relate to one another
• In its scale, scope, and complexity, the
transformation will be unlike anything humankind
has experienced before
We do not yet know just how it will unfold……..”

6. 6
The Luddites and 21st Century Technology

7. 7
'Digital industrialism':
rethinks the purpose of “new” economy
peer-to-peer sharing platforms eliminate the human element?
• "FREELANCERS" have freedom in their work situation
• Companies are taking advantage of people treating them as
objects rather than as real stakeholders in the company
• Uber has self-driving research in the works and drivers will
be replaced by machines by 2020.
"Peer-to-peer is not a means of including people, but a
prelude to getting rid of them,"

8. 8
K5 is a robotic security guard
fired

9. 9
Occupations at Risk:
Computerization Trends in the
Israeli Labor Market
Author: Shavit Madhala-Brik
Policy Research: 22.12.2015
Research indicates that workers who
supply about 40 % of the work
hours in the Israeli market place
are likely to be
replaced by computers or
machines
in the coming two decades.
http://taubcenter.org.il/occupations-risk-computerization-trends-israeli-labor-market/

10. 10
Agenda

11. 11
Technology advancing exponentially
Fourth Industrial Revolution

12. 12
Internet v2
RESTARTING “EVERYTHING” WITH NEW TECHNOLOGY OPERATING SYSTEMS
15
Blockchain-based
Applications
Augmented Reality
Big Data & Analytics
Autonomous Robots
Industrial Internet
of Things (M2M)
Delivery of IT
Services & Cloud
3D Printing
Cognitive
computing,
algorithms &
simulation
Cybersecurity

13. 13
Blockchain Technology available today ?

14. 14
What is “blockchain” ???A business network, where members
exchange items of value through a ledger,
which each member possesses and whose
content is always in sync with the others:
1. DECENTRALIZED PEER-TO-PEER ARCHITECTURE
with nodes consisting of market participants
2. SHARED LEDGER that acts as a source of truth for
businesses doing transactions on the blockchain.
3. SMART CONTRACTS that include digital assets (anything
(tangible or intangible) that has an owner and can be
converted into value).
4. CONSENSUS ensures that these shared ledgers are exact
copies, and lowers the risk of fraudulent transactions
since tampering would have to occur across many places
at the exact same time.

15. 15
Blockchain Philosophy
 Liberty-enhancing
 Participative, inclusive, expansive
 Equality technology
 A flexible structure of diverse value systems
 Eradicates illiberty
 Authority: shifts locus to individual
 Already: news, entertainment content, stock-trading,
quantified self
 Now: currency, economics, government
 Decentralization: Abundance mindset
http://www.amazon.com/Bitcoin-Blueprint-New-World-Currency/dp/1491920491

16. 16
IBM’s blockchain examples
InternetofThingsFinancial

17. 17

18. 18

19. 19

20. 20

21. 21
Forecasting Technology Change
"We always overestimate the
change that will occur in the
next two years and
underestimate the change
that will occur in the next ten."

22. 22
“ICT revolution and the accelerating pace of innovation hold
the potential of transforming societies.
A decade ago, there was tremendous excitement around
the spread and diffusion of technology.
Davos 2016 all about “the limits of the ICT revolution“
How do organizations and individuals
get the benefit of the digital revolution?
how much technology can they absorb?
Global Information Technology Report 2015
Davos 2016

23. 23
Analog Organizations
Digital Native Organizations
Digital Migrant Organizations
The great management dilemma of the 21st century
is the relationship between innovation in technology
and its absorption in organizations
technology not
absorbed
maximum
that they
can absorb

24. 24
Types of Organizations
According to their “change” (ability to absorb technologies) culture
50
Innovation moves from a trend to core IT
competency
1. Customer-driven innovation
2. Innovation strategies from “innovating for
customers” to “innovating with customers”
3. Organizations understand it is no longer
about how brands want to sell, but how
consumers want to buy
4. Social media and other technologies used
for consumer feedback during the idea
generation and design stages (not only
testing stage)
Innovation is in experimental mode
(in IT but separated from the rest of IT)
1. Employee/technology driven innovation
2. Employees recognize opportunities for
innovation based on new disruptive innovative
technologies
3. Developing new product ideas in-house,
conducting focus groups and customer research
especially in the testing phase
Innovation Manager outside of the IT
organization
1. Consultant-driven innovation
2. Organization have "heavy” existing
regulations, structures, processes,
incentives, and cultural momentum
3. Organizations are caught up in their
environment, brand, product
positioning and can absorb just so much
technology
4. Organizations are big and labor
organized so they have institutionalized
resistance to alter thinking and behavior
Digital Transformation happens, or not, at an organizational level

25. 25
Digital Native Organizations

26. 26
The “great” unbundling of the value chain
un·bun·dle
ˌənˈbəndl/
verb
present participle: unbundling
1.Market, sell or charge for (items or services) separately
rather than as part of a package.
2.split (a company or conglomerate) into its constituent
businesses
-“ To succeed organizations need to be UNIQUE and think as a START UP ”-

27. 27
Examples of the “great” unbundling

28. 28

29. 29
Dramatic change in our global economy is
about to occur between 2016 and 2020.
“Rising Billions”:
3 to 5 billion new consumers,
who have never purchased
anything, never uploaded
anything and never invented and
sold anything, are about to
come online and provide a
mega-surge to the global
economy.

30. 30
New generation called #hashtag or digital natives

31. 31
Different organizations will “miss” the
#hashtag generations (digital natives and digital migrants)

32. 32
Future Revolves Around the #hashtag generation
EGOsystem

33. 33
#hashtag generation (from birth to 120+)
Digital Natives vs. Digital Migrants
200
30 4
100

34. 34
Messaging apps are the new OS
The top four messaging apps in the world have nearly 3 billion monthly active users and are
opened almost five times as much as regular apps.
Facebook Is Dominating The
Messaging App Wars
The two largest messaging apps in the world
– Facebook Messenger and WhatsApp –
are both owned by Facebook..
Apps On Top Of Apps
companies have leveraged the messaging apps to sell goods,
promote products, chat with customers, and more.

35. 35
Generation #hashtag prefers native digital services
publishing
services

36. 36
#hashtag innovation
CUSTOMER
EXPERIENCE
NEW
BUSINESS
MODELS &
PRODUCTS

37. 37
Agenda

38. 38
-”a paradigm shift in the
strict sense is a different
mental model of the world”-

39. 39
What is Digital Disruption ?
Reinventing industries substantial reshaping of an industry structure by
introducing new business platforms
Substituting products/services replacing core products/services with a new
digital format
Creating new digital businesses creating new products/services that generate
additional revenues leveraging existing assets and brand with digital
augmentation (Internet Of Things) .
Reconfiguring value delivery models Using technology to recombine
products, services and data to change the way an enterprise plays in the value
chain.
Rethinking value propositions uses new digital (next wave of technology)
capabilities to target unmet needs for existing or new customers.

40. 40

41. 41
Serving the #hashtag generation
(innovation is not all super digital)
Capital One Bank Branches
Vinyl Records
and turntablesFilm and cameras

42. 42
Serving the #hashtag generation 2
(innovation is not all super digital)
AMAZON OPENS
HUNDREDS OF
PHYSICAL
BOOKSTORE
LOCATIONS

43. 43
Technology based changes in
Economic Models
Hyperconnected economy
Hyperconnected Economy
Individuals are equipped with two brains:
1.one inside their heads,
2.the other carried around in their hand
(Hyperconnected to the world around them)
On-demand economy
On-demand economy
“On-demand Economy” is the result of pairing
“freelance” workforce/assets (through a smartphone-
APP) with underused capacity to the demand/needs of
others.
The “on-demand economy” is a continuation of the
“sharing economy”
.
Switching Economy
Switching Economy
“Switching Economy”is the customer dynamics
defined by consumer switching products/services.
1. COMPLETE SWITCH: resulting from
customers that switched from one
product/service to another
2. PARTIAL SWITCH: customers that take
portions of their spending to new
product/service

44. 44
When the Funnel Stops Working
Customer Dynamics 2000-2016
2000-2008
CRM kicks-in
2009-2015
Switch Economy kicks-in
“Nonstop Customer”
2016 - 20XX
Digital Innovation kicks-in
(bonding through
excellent customer service)
Path to purchase is linear
DIGITAL DISRUPTION has caused
a steady erosion in customer loyalty.
Consumers switch suppliers mostly
due to poor customer service

45. 45
Digital Innovation starts with Customer Service

46. 46
Agenda

47. 47
Reactive or Proactive IT: The fusion of
customers, business and IT

48. 48
Where are you in the pendulum?
Reactive Proactive
IT 2016 has many parts
How do we put all together
in order to build an exponential proactive IT ???

49. 49
“exponential-proactive” CIO
TRI-MODAL IT EXPONENTIAL ENVIRONMENT

50. 50
Tri-Modal IT (exponential IT)
IT Centric Business Centric Customer Centric

51. 51
IT Centric
28
Transactions as data for
intelligence (BI systems)
74 % of CIOs listed
modernizing core as critical.
The challenge is shifting from
acknowledging to making an
actionable roadmap.
Optimizing delivery,
development and maintenance
of systems of records
Speed and cost cutting
based on
“best practices”
60% -80% of time, energy,
and budgets are consumed
by core systems (they
cause over 85% of
downtime)
Core Systems
CFO and COO systems
ERP systems
(Office of the CIO is born)

52. 52
Business Centric
(Business Relationship Manager is born)
28
Data used from transactions
and some extracted from the
“web-social” world
Extensive use of
“cloud”
products & services
Delivering new solutions for
marketing and sales
Fast delivery of new
enterprise solutions
(fast by cutting bureaucracy)
API management
technologies
Increasing use of advanced
analytics

53. 53
Customer Centric
(Customer Success Manager is born)
28
Use of machine learning
algorithms for customer
success management
Predictive and simulation
decision systems
Design customer interactions in
order to exceed customer
expectations and increase
customer bonding/loyalty.
Transformation into a software (SaaS)
delivery organization. Customer
Success as a critical philosophy
Active in the API
economy (monetizing)
Mobile SaaS delivery capabilities
and support
Usage
Analytics Location-based
APP
SaaS
Support
Customizable by
user (customer)

54. 54
Having a mobile app does not mean you are
customer-centric
Tri-Modal (-) IT
Bi-Modal IT
Tri-Modal IT

55. 55
IDC:
“Transform Or Die”
30% of today’s tech suppliers will not exist as we know them today, having been acquired or failed
1/3 of the top 20 companies in every industry will be “disrupted” over the next 3 years, meaning their revenue, profits and market
position will deteriorate — not that they will go out of business
Forrester:
“Lead The Customer-Obsessed Transformation”
Customers expect consistent and high-value in-person and digital experiences.
The risks in today's customer-led market have shifted from responding too early to responding too late
Gartner:
“autonomous software agents”
The future will belong to the companies that can create the most effective autonomous and smart software solutions
;
6
What other Analysts predictions say for 2016:

56. 56
IDC:
“Transform Or Die”
30% of today’s tech suppliers will not exist as we know them today, having been acquired or failed
1/3 of the top 20 companies in every industry will be “disrupted” over the next 3 years, meaning their revenue, profits and market
position will deteriorate — not that they will go out of business
Forrester:
“Lead The Customer-Obsessed Transformation”
Customers expect consistent and high-value in-person and digital experiences.
The risks in today's customer-led market have shifted from responding too early to responding too late
Gartner:
“autonomous software agents”
The future will belong to the companies that can create the most effective autonomous and smart software solutions
;
6
What other Analysts predictions say for 2016:

57. 57
How do we organize Tri-Modal IT ?
57

58. 58
In order to excel in Trimodal IT… CIOs are building capabilities that
operate along the continuum, with investments in process, technology, and talent
strategy people processes

59. 59
Agenda

60. 60
So how does a pro-active customer centric
Tri-Modal IT department look like???
VP
Technologies
Delivery
Department
Analytics
Department
Internal
Applications
Customer-centric
Applications
Innovation
Management
Cyber, Risk and
Compliance
Office of CIO CTO
BRM
Customer Success
Manager
Talent
Management
Budget
Procurement

61. 61
Governance Services
Governance
(staff)
Departments
Customer Success Manager
in charge of SaaS
Developing/training
internal talent skills
CTO is in charge of DevOps
implementation
Customer Success Manager
in charge of SaaS
Developing/training
internal talent skills
CTO is in charge of DevOps
implementation
Business Relationship Management
in charge of innovation of internal
systems
Recruiting internal talent skills
CTO becomes an IT architect
Business Relationship Management
in charge of innovation of internal
systems
Recruiting internal talent skills
CTO becomes an IT architect
Office of the CIO in charge
of managing internal
resources
Sourcing external talent
skills
CTO in charge of operating
technologies
Office of the CIO in charge
of managing internal
resources
Sourcing external talent
skills
CTO in charge of operating
technologies

62. 62
Enterprise Services and
Integration Department
IT Delivery
Department
• Provide consistent ways to
access enterprise data and
identity
• Enable flexibility for how
software is built, delivered, and
managed
• Deliver reusable services
• Meet security and
compliance standards
• Handle varying scale
requirements
• Provide consistent ways to
access enterprise data and
identity
• Enable flexibility for how
software is built, delivered, and
managed
• Deliver reusable services
• Meet security and
compliance standards
• Handle varying scale
requirements
CIOs think:
1. Stability in IT is slow
and expensive
2. Innovation in IT is fast,
agile and cheap
CIOs think:
1. Stability in IT is slow
and expensive
2. Innovation in IT is fast,
agile and cheap
Is it right ?
Do enterprises need
2-Speed delivery of IT ?
NO
only a continuum called
RIGHT SPEED
(for the business)
IT

63. 63
Delivery
of “SaaS” Services
Customer-centric
APPS
Department
• SaaS world is different, and the
‘go-live” is no longer the only
focus. APPs continually evolve and
update applications.
• Willingness to accept ‘good
enough’ and a commitment to
improving and refining iteratively
in response to a flow of updates
and releases.
• SaaS world is different, and the
‘go-live” is no longer the only
focus. APPs continually evolve and
update applications.
• Willingness to accept ‘good
enough’ and a commitment to
improving and refining iteratively
in response to a flow of updates
and releases.
Build a support organization
that is scalable and able to
deliver short burst projects
with the right technology
skills and agile methodology.
Build a support organization
that is scalable and able to
deliver short burst projects
with the right technology
skills and agile methodology.
IT is shifting
from
“support the business”
to
“be the business.”
The ongoing digitization
of products and services
means enterprise IT is
the new factory (SaaS
supplier/vendor)

64. 64
Cyber, Risk and
Compliance
Cyber, Risk and
Compliance
Department
Enterprise leadership that
is invested in and interested
in making security a core
priority

65. 65
Cyber, Risk and
Compliance
Cyber, Risk and
Compliance
Department
Enterprise leadership
that is invested in and
interested in making
security a core priority

66. 66
Analytics & Internal
Applications
Analytics & Internal
Applications
Departments
Marketing Automation
technology integrates
with new sales, service
applications but it's now
cloud, cloud, cloud
Marketing Automation
technology integrates
with new sales, service
applications but it's now
cloud, cloud, cloud
Analytics
everywhere
expose the business
intelligence within
the context of
business processes
Analytics
everywhere
expose the business
intelligence within
the context of
business processes
New versions
(better?) for Core,
CRM, HR, Sales,
Service and ERP
apps
New versions
(better?) for Core,
CRM, HR, Sales,
Service and ERP
apps
• Enterprise core systems.
• Supply chain systems.
• CRM (sales, service)
systems.
• Analytics systems.
• Marketing Automation
• others

67. 67
Innovation
Management
Innovation
Management
Department
• CIOs engage in "social"
business, connecting
people more effectively for
collaboration, leveraged
intelligence and
performance.
• CIOs lead the charge to be
customer-centric in all
facets of the business
ecosystem.
• CIOs engage in "social"
business, connecting
people more effectively for
collaboration, leveraged
intelligence and
performance.
• CIOs lead the charge to be
customer-centric in all
facets of the business
ecosystem.
CIOs tasked to innovate
with an eye on future-
proofing technological
investments.
CIOs have a strategic
role, influencing and
supporting business-
building in new ways.
CIOs tasked to innovate
with an eye on future-
proofing technological
investments.
CIOs have a strategic
role, influencing and
supporting business-
building in new ways.
Separating “innovation”
from the rest of IT can be
bad for organizational
morale.
Customer Centric IT is
based and build on the
other TRI-MODAL parts of
IT.

68. 68
CIOs continue to report to the top

69. 69
CIOs continue to report to the top

70. 70
Agenda

71. 71
Internet v2
RESTARTING “EVERYTHING” WITH NEW TECHNOLOGY OPERATING SYSTEMS
15
IT Organizations
API Economy
IoT (M2M)
and Ambient
User Experience
Core Renaissance
Modernization
Dimensional
Marketing
Cloud
Architecture,
Brokerage and
Services
Chief Integration
Officer
Analytics,
Cognitive
computing,
algorithms &
simulation
Open Source
& Software
Defined
Everything
(SDX)

72. 72
chief
integration officer
CIO
“CIOs must master the art of
connecting different parts of
the organization, become a
master of intercompany
relationships. All about
integration (data, people
and processes)”
• Developing and refining
business strategy
• Studying market
trends/customer needs to
identify opportunities
• Driving business innovation
• Identifying opportunities for
competitive differentiation
• Developing new go-to-
market strategies &
technologies
• Developing and refining
business strategy
• Studying market
trends/customer needs to
identify opportunities
• Driving business innovation
• Identifying opportunities for
competitive differentiation
• Developing new go-to-
market strategies &
technologies
• Redesigning business
processes
• Aligning IT initiatives with
business goals
• Cultivating the IT/business
partnership
• Leading change efforts
• Implementing new systems
and architecture
• Redesigning business
processes
• Aligning IT initiatives with
business goals
• Cultivating the IT/business
partnership
• Leading change efforts
• Implementing new systems
and architecture
• Managing IT crises
• Negotiating with IT
vendors
• Improving IT
operations/systems
performance
• Security management
• Cost control/expense
management
• Managing IT crises
• Negotiating with IT
vendors
• Improving IT
operations/systems
performance
• Security management
• Cost control/expense
management
Functional
Business Strategist
Transformational

73. 73
Dimensional
marketing
Marketing
The modern era for
marketing is being
formed around four new
dimensions:
customer engagement,
connectivity, information,
and next-generation
technology
• CMOs "OWN" the entirety of the
customer lifecycle.
• The 'MARKETING CLOUD'
integrates web experience
management solutions with email
marketing, social marketing,
optimization and web analytics
• CMOs "OWN" the entirety of the
customer lifecycle.
• The 'MARKETING CLOUD'
integrates web experience
management solutions with email
marketing, social marketing,
optimization and web analytics
• CMOs are responsible for brand
AND demand.
• CMOs drive customer acquisition
via WEB EXPERIENCE
MANAGEMENT (using basic
targeting, segmentation and
analytics)
• CMOs are responsible for brand
AND demand.
• CMOs drive customer acquisition
via WEB EXPERIENCE
MANAGEMENT (using basic
targeting, segmentation and
analytics)
• CIO keeps WEBSITE
CONTENT MANAGEMENT
running, with new features if
time allows.
• The CMO hires advertising
agencies to push(media
advertisement) potential
customers .
• BI information focuses on
getting ahead of the customer
buying curve to facilitate
transactions.
• CIO keeps WEBSITE
CONTENT MANAGEMENT
running, with new features if
time allows.
• The CMO hires advertising
agencies to push(media
advertisement) potential
customers .
• BI information focuses on
getting ahead of the customer
buying curve to facilitate
transactions.

74. 74
The rise of the bots (GOOD and BAD)
Programmatic advertising — automatic buying and selling of ad impressions —
has exploded, as the digital shift has led to an increase in ad inventory.
But the rise of programmatic led to a massive ad fraud problem in which traffic bots are penetrating the ecosystem,
mimicking human behavior, and siphoning billions from the digital media industry.
Actual Human Traffic
A little over half of all traffic on the
internet is from actual humans.
‘Good Bots’
29% of global internet traffic comes
from “good bots” – or bots that can be
easily detected as nonhuman viewers.
Good bots are built to collect and track
information.
‘Bad Bots’
‘Bad bot” traffic imitates user behavior to boost website
audience numbers, generate revenue for the host
website, or steal revenue from the advertiser. It disrupts
the delivery of the right ad to the right user. “Bad bots”
accounted for nearly 20% of all internet traffic and cost
advertisers $6.3 billion in 2015 5.

75. 75
FUNCTIONAL ASPIRATIONAL MEANINGFULL
INDUSTRIAL
REVOLUTION
DIGITAL
REVOLUTION
AGRICULTURAL
SOCIETY
INDUSTRIAL
SOCIETY
DATA
SOCIETY
FABRICATION
REVOLUTION
1850 1990 20302015BEFORE 1800
Society 3.0 (Data Society)

76. 76
Algorithms/Data are the exponential differentiators

77. 77
Analytics / Algorithms
Machine Learning
& Integration
Algorithms/Data
Integration
1. Data by itself is useless.
2. Algorithms are where the
real value lies.
3. Algorithms define action
but are only useful if you
apply them
Algorithmic
Models that will
recommend real
time decisions
so that things
will happen
Algorithmic
Models that will
recommend real
time decisions
so that things
will happen
Predictive
Analytics deals with
information from
data for predicting
trends and behavior
patterns
Predictive
Analytics deals with
information from
data for predicting
trends and behavior
patterns
Diagnostic
Analytics used to
understand what
happened and
why
Diagnostic
Analytics used to
understand what
happened and
why

78. 78
“Algorithms, Data & Integration”
driven value creation

79. 79

80. 80
IoT: The next IT Revolution
Businesses in Israel are leveraging Internet of Things (IoT) devices to:
lower operating costs, increase productivity, expand to new markets and develop new product offerings..
Manufacturing
Manufacturers already use smart
sensors and control floor
machinery.
IoT will disrupt insurance within
the next five years, and many
plan to invest in developing and
implementing IoT strategies this
year,
Insurance
The devices will primarily be internet-
connected sensors used to provide
environmental metrics about
extraction sites.
Oil, gas, and mining
Agriculture
IoT devices in agriculture are primary
sensors placed in soil to track acidity
levels, temperature, and variables
that help farmers increase crop
yields.
IoT devices will be devices will be
digital signs connected
throughout grocery stores and
fast-food companies.
Food Services
Utilities
IEC will be installing smart
meters by 2020.
Retail
Beacons, paired with mobile apps,
will be used in stores to monitor
customer behavior and push
advertisements to customers.
Healthcare
IoT devices will collect data,
automate processes, and more.
But these devices can also be
hacked, thereby posing a threat
to the patients who rely on them.
8 Israeli Industries Being
Transformed By The IoT

81. 81
Ambient Computing
Ambient
Computing
& IoT (M2M)
Ambient computing
is about sensing and
potential action- taking
with an ecosystem of
things that can respond to
what’s actually happening
• Integrate information flow
between varying types of
sensors with proprietary data
technologies
• Perform analytics of the
sensors’ data
• Orchestrate signals to fulfill
complex events
• Secure and monitor the entire
system
• Integrate information flow
between varying types of
sensors with proprietary data
technologies
• Perform analytics of the
sensors’ data
• Orchestrate signals to fulfill
complex events
• Secure and monitor the entire
system
POCs for sensing
and responding to
static,
pre-defined
workflows, control
scripts, and
operating
procedures.
POCs for sensing
and responding to
static,
pre-defined
workflows, control
scripts, and
operating
procedures.
Analog Organizations are still
wrestling with smartphone and
tablet adoption (how to secure,
manage, deploy, and monitor)
The challenge looks impossible for
new IoT & ambient computing.
Analog Organizations are still
wrestling with smartphone and
tablet adoption (how to secure,
manage, deploy, and monitor)
The challenge looks impossible for
new IoT & ambient computing.

82. 82
IoT PAYMENTS: when will it happen in Israel??
The EMV migration in Israel and mobile wallet solutions from smartphone providers
are the two largest enabling factors for in-store mobile payments by 2018.
1
2
3

83. 83
API Economy
APIs
Application programming
interfaces (API) elevated
from a development
technique to a business
model driver extending
existing services and
providing new revenue
streams.
APIs should be managed
like a product (built on top
of legacy and third-party
systems and data)
APIs enable and accelerate new
service development and offerings
API layers manage the OSS/BSS of
integration.
Integration as a service, RESTful
services, API management, and
cloud orchestration
APIs enable and accelerate new
service development and offerings
API layers manage the OSS/BSS of
integration.
Integration as a service, RESTful
services, API management, and
cloud orchestration
Platforms Exchange
Through Middleware.
Interfaces begin to be
defined as services. Tools
manage the sophistication
and reliability of messaging.
Message-oriented
middleware, enterprise
service bus, and service-
oriented architecture.
Platforms Exchange
Through Middleware.
Interfaces begin to be
defined as services. Tools
manage the sophistication
and reliability of messaging.
Message-oriented
middleware, enterprise
service bus, and service-
oriented architecture.
Information Shared by
Interfaces
(Function & Logic)
Object brokers, procedure
calls, and program calls
allow remote interaction
across a network. Point-
to-point interfaces, screen
scraping, RFCs and EDI.
Information Shared by
Interfaces
(Function & Logic)
Object brokers, procedure
calls, and program calls
allow remote interaction
across a network. Point-
to-point interfaces, screen
scraping, RFCs and EDI.

84. 84

85. 85
Cloud architecture,
brokerage and services
Cloud
Services
IT’s task is to deliver
applications,
spending time over what
infrastructure to use is useless,
that debate is over.
IT organizations will adopt the
fastest infrastructure available
and then turn to how to deliver a
new class of applications.
Elastic, hybrid multi-
cloud and usage of
cloud brokerage
techniques .
Replacement of virtual
machines by
containers
Elastic, hybrid multi-
cloud and usage of
cloud brokerage
techniques .
Replacement of virtual
machines by
containers
Run existing
applications, email,
SaaS and websites on
Global Infrastructures.
Cloud usage for
testing, development
and/or mobile
applications
Run existing
applications, email,
SaaS and websites on
Global Infrastructures.
Cloud usage for
testing, development
and/or mobile
applications
Real Estate “rental”
from hosting providers
cage-based DC
colocation(hosting
++)
Virtualized Data
Centers
Real Estate “rental”
from hosting providers
cage-based DC
colocation(hosting
++)
Virtualized Data
Centers

86. 86
Yochai Gal
EMC Israel

87. 87
New Architectures,
“Open Source &
Software-Defined”
EVERYTHING
OPEN
& SDX
The entire operating environment
(server, storage and network) can now
be virtualized and automated. The
future is OPENSTACK/ CONTAINERS:
lowering costs, improving speeds and
reducing the complexity of provisioning,
deploying, and maintaining technologies.
By using the cloud;
organizations enter OPEN
SOURCE by default.
Equipment they buy for
hybrid usage usually will
be similar architecture as
the cloud they use
By using the cloud;
organizations enter OPEN
SOURCE by default.
Equipment they buy for
hybrid usage usually will
be similar architecture as
the cloud they use
Small projects test the
“community based”
support of open source
(data bases and UX tools)
and vendors selling SDX
products
Small projects test the
“community based”
support of open source
(data bases and UX tools)
and vendors selling SDX
products
AFRAID
Million excuses of why
not (except for Linux)
AFRAID
Million excuses of why
not (except for Linux)

88. 88
Open open open

89. 89
The Past 60 Years
1950s 1960s 1970s 1980s 1990s 2000s Today
It’s time to rethink how computers are built
Client Computing
Server Computing

90. 90
Core
Modernization
Core
Renaissance
As focus shifts
from performing business
processes
to enabling innovation,
reinvented core systems
form the foundation for
growth and new services
REVISIT “BUILD” VERSUS “BUY”
replace parts of the portfolio with
new solutions (custom made or
from new entrants) considering
hybrid/cloud offerings giving
improved agility and resilience
REVISIT “BUILD” VERSUS “BUY”
replace parts of the portfolio with
new solutions (custom made or
from new entrants) considering
hybrid/cloud offerings giving
improved agility and resilience
UPGRADING
upgrade the core
application
and implement new
solutions on the old core
Includes sometimes:
• modern operating
environments (server,
storage, or network),
• adoption of in-memory
databases
• shifting to cloud
infrastructure
UPGRADING
upgrade the core
application
and implement new
solutions on the old core
Includes sometimes:
• modern operating
environments (server,
storage, or network),
• adoption of in-memory
databases
• shifting to cloud
infrastructure
DO NOTHING
is a deliberate decision made
after careful analysis weighing
the risks, communicating the
recommendation and then
deciding to focus on other
priorities.
DO NOTHING
is a deliberate decision made
after careful analysis weighing
the risks, communicating the
recommendation and then
deciding to focus on other
priorities.

91. 91