The future of the cloud holds a wealth of promise for those who know how to leverage the power of high-performance computing to fuel business innovation and growth. As predicted, cloud has quickly become a prominent technology for executing digital transformation, but many enterprises are still struggling to understand how the cloud can help future-proof their business.
This second webinar in our Cloud First, Business-Driven webinar series explored some of the key concepts around the future of cloud, and how to think about what’s next for your enterprise. We discussed:
-Short- and long-term cloud trends
-Personal cloud with intelligent agent
-Personalized pricing and payment systems
-Taking hybrid cloud to the next level
-Customer-defined products
2. 2
ABOUT PERFICIENT
Perficient is the leading digital transformation
consulting firm serving Global 2000 and enterprise
customers throughout North America.
With unparalleled information technology, management consulting,
and creative capabilities, Perficient delivers vision, execution, and
value with outstanding digital experience, business optimization,
and industry solutions.
3. 3
PERFICIENT PROFILE
Founded in 1997
Public, NASDAQ: PRFT
2015 revenue $473.6 million
Major market locations:
Allentown, Atlanta, Ann Arbor, Boston, Charlotte, Chattanooga,
Chicago, Cincinnati, Columbus, Dallas, Denver, Detroit, Fairfax,
Houston, Indianapolis, Lafayette, Milwaukee, Minneapolis,
New York City, Northern California, Oxford (UK), Southern California,
St. Louis, Toronto
Global delivery centers in China and India
>2,800 colleagues
Dedicated solution practices
~90% repeat business rate
Alliance partnerships with major technology vendors
Multiple vendor/industry technology and growth awards
4. 4
ABOUT OUR SPEAKERS
Victor Wolters
Director, Enterprise Cloud Strategist
Joel Thimsen
Director, Cloud and DevOps
Sherif Abdelgawad
Director, Cloud Strategy and Solutions
7. 7
THE TRANSITION TO CLOUD-ONLY
• Gartner: By 2019, more than 30 percent of the 100
largest vendors' new software investments will have
shifted from cloud-first to cloud-only.
• By 2020, more compute power will have been sold by
IaaS and PaaS cloud providers than sold and deployed
into enterprise data centers.
• IDC: Public Cloud Spending To Double By 2019
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THE CHANGING FACE OF IT CONSUMPTION
0
10
20
30
40
50
60
70
80
90
100
Prediction
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MULTI-CLOUD ADOPTION IS INCREASING
47%
25%
17%
3%
8%
2 Clouds
3 Clouds
4 Clouds
5 Clouds
> 5 Clouds
N=100
How many clouds are used in your multi-cloud
architecture? (including your private cloud)
Which public clouds are used in your multi-cloud architecture?
(Summarized by Top Five Cloud Providers)
IBM So layer
Rackspace
Google
Azure
AWS
Startups SMB/SME Enterprises
N=100
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THE END-STATE OF THE CURRENT IT EVOLUTION
• Organizations are moving from hybrid cloud to multi-cloud.
• Multi-cloud is driven by multiple drivers including business
innovation, cost reduction, improvements to disaster
recovery, solutions diversification, and geographic coverage.
• Multi-cloud delivers business services without porting
workloads out of multiple virtualized zones, private cloud,
and different public clouds.
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MULTI-CLOUD FROM VISION TO EXECUTION
Mission
Vision
Business Goals
Objectives
Strategy & Cloud
Value Streams Map
Actions
KPIs For
KPIs For
Cause-and-effect
adaptive connected objectives
List of a map of
business goals
Steps that the company
needs to go through
Action plans and
initiatives
Performance monitoring
Progress tracking
What we are today,
The purpose of the company
A top-level goal of
the company
Feedback Mechanism
to Tune Strategy
Based on Facts
Iterative Adaptive Strategy
The 5 Principles:
1. Experiment often
2. Create customer value
3. Eliminate waste
4. Iterate at speed with
measurable metrics
5. Close the feedback loop
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DISRUPT OR BE DISRUPTED
Right Cloud For The Right Workload People & Culture
- Communication
- Shared value
- Enable
- Empower
Process & Governance
- Eliminate waste
- Value stream map
- Simplify
Continuous Innovation
- Customer-value focus
- Challenge status quo
- Think big and disrupt
Yourself
Continuous Improvement
Plan Do Check Act
Service Integration Fabric
Data Fabric
ServicesManagement
DataPartitioning/Virtualization
Infrastructure as a Code
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CLOUD ACCELERATES BUSINESS VALUES
Financial Services Pharma & Healthcare Automotive & Transportation
Capital One: The bank plans to
reduce its data center footprint
from eight to three by 2018.
FINRA: Financial Industry
Regulatory Authority will save up
to $20 million annually by using
public cloud.
Bristol-Myers Squibb: Used
public cloud & on-demand
capacity to keep costs low and
run clinical trial simulations 98%
faster than in its previous
environment.
BMW: In less than six months,
BMW built its new car-as-a-
sensor (CARASSO) service
using public cloud.
JetBlue: Amazon Premier has
better experience with in-flight
Wi-Fi it can use to stream video
content for free.
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EVOLUTION OF CLOUD AND DIGITAL BUSINESS
2016 Cloud and Services
2021 Service Brokers
2026 Digital Business Services
20. “The creation of new
business designs by
blurring the physical and
digital world”
Gartner, 2015
Gartner 2015
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TECHNOLOGY SERVICES VS. BUSINESS SERVICES
FUTURE
Product Transaction Service
Supply Chain Service
New Market Place Service
Small/Medium/Large Business Service
TODAY
IOT
Identity Management
Big Data
TODAY
IaaS
PaaS
SaaS
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BI-DIRECTIONAL MOVEMENT
Business Examples
• Automotive retail businesses:
Honda offers 3D printing of
concept cars
• New Marketplaces: Including
establishment of trading systems,
rules of engagement, and
intermediary engagement
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BUSINESS EXAMPLES
Automotive Retail Business New Marketplaces
• Creation of a new market place
• Establishment of private value trading system
• Rules of engagement for marketplace
• Sellers, buyers and intermediaries
• Honda offers 3D printing of concept
car models (2014)
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BUSINESS IMPLICATIONS – CALL TO ACTION
Near Term
• Think about customer and partner data that
could be used to improve or create new
products or services.
• Implement machine learning capabilities to
understand how customer and partner data
can work with other data to adjust to
changing needs.
• Implement fully automated software
development environments that provide
ability to deliver new features on a weekly
basis with high quality.
Long Term
• Challenge conventional status quo thinking
and start conversations today on how
changes in your industry could eliminate
your business.
• Lay out a detailed plan for a full transition to
a computing platform that will allow your
company to quickly take advantage of new
computing architectures at low cost of entry.
• Look at all of your business processes,
internal and external, to identify
opportunities to replace them with cognitive
systems and intelligent agents.
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BUSINESS IMPLICATIONS – CALL TO ACTION
• Corporations need to stop thinking about cloud as something they’ll
“implement.”
• Organizations need to rapidly reduce their application portfolio to
only the required essentials.
• All new initiatives should start with the idea of disposable business
services and seek out providers of the specific business service
needed for the new initiative.
• The continued blurring of physical and digital worlds will increase
the need to show true business value in every operation the
business executes.
Gartner: By 2019, more than 30 percent of the 100 largest vendors' new software investments will have shifted from cloud-first to cloud-only.
By 2020, more compute power will have been sold by IaaS and PaaS cloud providers than sold and deployed into enterprise data centers.
IDC: Public Cloud Spending To Double By 2019
As you have heard from my colleagues we see cloud as a utility and multi cloud platform in the future where most of the technically complex work has been hidden from the client. This frees up the client to stay focused on the running of the business to accelerate the delivery of goods and services. We see this as a natural progression within the industry to a Service Focus. Beyond that it would be a disposable service focus.
Today we tend to see cloud in a very technical perspective – nuts and bolts – blocking and tackling.
In the future we will not see any of the technical but think about it from a “Business Service” perspective. We will consume services on an “As-Needed” basis.
Future - (Global, National, Regional)
B2C Custom Product Transaction Service
B2C Standard Product Transaction Service
B2B Supply Chain Service
New Marketplace Service
Small Business Operations Service
Medium Business Operations Service
Large Business Operations Service
Some version of this model will evolve as we progress through this megatrend.
32% of business leaders in large organizations indicate they have embarked on a digital business transformation and their current business is a digital business. (Gartner 2015)
Blurring of Digital and Physical worlds is a common problem already.
Value chain development and disruptions across industries establish new flows of commerce.
Data science will be standard part of all business to establish new target audiences.
Digitalize the business process not for “standardized” automation but for “automatic customization” digital business process’s.
Corporations will purchase “Business Services” not “Technology Services” which they can spin up in hours or days and spin down just as quickly when the service is no longer needed.
Disposable business model will drive technology decisions.
Business Services will start off mimicking current internal business services like we understand today – Marketing, Sales, Accounting, Finance, Inventory, etc.
Business Services will evolve to be more “FULL” transaction oriented including everything from raw material procurement to final delivery and collection from ultimate customer.
Let's step ahead to 2030, a world where autonomous vehicles, smart machines, connected things and 3D printed goods are part of everyday work and life
Services will be all encompassing types of services with end to end capabilities that cover all functional components of the business from personnel to inventory mgt, raw material procurement, marketing, sales, delivery, collection of value based units, to support after the sale.
Top arrow is showing more unique smaller part of the overall digital business will push to in-house.
Bottom arrow is showing more common higher overall part of digital business compute services will push to the Cloud in the form of Business Services.
Gartner has a listing of 50 examples of digital business services and products already in play at this time.
B2B and B2C for both products and services from digital stethscopes to 3d printing services at your local UPS shipping center
Automotive Business example
Starts with the consumer
Moves to OEM
Moves to retailer
Moves to internal functional components of the retailer
Moves to service
Moves to secondary markets (pre-owned)
Back to consumer
Schmidt from Google
Machine Learning is on top with the cloud platform on the bottom
NoOps will be mainstream
Serverless architectures
Personal Cloud with Intelligent Agent – Lego block development, IoT
Personalized pricing and payment systems