Presentation looking at future skills needed in the IT department if everything is outsourced to the cloud. Includes insights from IBM's CEO and CIO studies. The Future of the IT department whitepaper goes into details and models. Cloud Circle video featuring Mark Tomlinson walks you through presentation if needed.

1. Examining the powerful transformational role
Cloud plays in Business, IT & our daily lives
Mark Tomlinson
Executive IT Specialist, IBM UK & Ireland
Cloud Solutions for Financial Services
© 2012 IBM Corporation

2. Many of the most pressing technological factors are placing greater
demands on IT organisations Mobile
Global Smartphone shipments have
outpaced PC shipments since Q4 2011 1
Data explosion New kinds of interactions
2.5 quintillion bytes of data If Facebook were a country,
created every day. 90% of the it would have the third-largest
world’s data created in the population on Earth 2
past two years 5 More than 5 billion
devices connected to the
Internet today 6
Sprawling hardware Security threats
There are nearly 33 million Between January and May 2012,
servers worldwide—15% of the Identity Theft Resource
which run 24/7 without active Center tracked 160 data breaches
daily use 4 exposing 11.5 million records 3
Sources: 1. Canalys smartphone shipment estimates, Feburary 2012. 2. Facebook IPO filing, April 2012. 3. Identity Theft Resource Center breaches report, May 2012.
2 4. The Green Grid Unused servers survey. 5. IBM analysis, April 2012. 6. IMS Research analysis, August 2010
© 2012 IBM Corporation

3. CEOs and CIOs are almost identically aligned in their perception of
the challenges ahead
Expectation of complexity and change in the coming 3 to 5 years
2010 CEO Study 2011 CIO Study
More
More
13 % 55 % 10 % 57 %
Change
Change
8 % 24 % 7 % 26 %
Less
Less
Less More Less More
Complexity Complexity
Source: IBM CEO study 2010, based on face-to-face conversations with 1500 CEOs / CIO study 2011, based on face-to-face conversations with over 3,000 CIOs
3 © 2012 IBM Corporation

4. However many traditional projects deploy either behind schedule,
over budget, or both
“Did the project deploy on budget?” “Did the solution project you are reporting
on deploy on schedule?”
Base: 510 Global
IT Professionals
Source: A commissioned study conducted by Forrester Consulting on behalf of IBM, October-December, 2011
4 © 2012 IBM Corporation

5. The most successful CIOs will be those who understand and
deliver on four mandates, aligned with their organisation’s strategy
Expand mandate Leverage mandate
Refine business processes and Streamline operations and
enhance collaboration increase organisational effectiveness
 Outsource to focus on differentiators  Standardise infrastructure & processes
 Communicate & collaborate internally  Control legacy costs
 Focus on business process management  Implement collaboration tools
 Review and update legacy environment  Conservative introduction of technology
47% for UKI respondents, 50% of global respondents 18% for UKI respondents, 14% of global respondents
Transform mandate Pioneer mandate
Change the industry value chain Radically innovate products, markets,
through improved relationships business models
 Use “Big Data” and real-time info  Pilot technology for social value
 Simplify for clients/partners  Explore new sources of revenue
 Enhance and expand the value chain  Enhance customer experience
 Use risk management frameworks  Pursue non-stop growth
20% of UKI respondents, 23% of global respondents 15% of UKI respondents, 13% of global respondents
Source: 2011 IBM CIO Study, Questions D1 to D4: “How does your business look at the role of IT?” (n=3,018, 133 in UKI): IBV Analysis
5 © 2012 IBM Corporation

6. CIO visionary plans are evolving: business intelligence and analytics
remain at the top, with cloud computing moving into the top four
Most important 3 to 5 year visionary plan elements
(Interviewed CIOs could select as many as they wanted)
83%
Business Intelligence and analytics 85%
82%
74%
Mobility solutions 75%
NA
68%
Virtualisation 72%
86%
60%
Cloud computing 65%
51%
55%
Collaboration and Social Networking 64%
64%
57%
Self-service portals 63%
81%
60%
Business process management 60%
NA
58%
Risk management and compliance 60%
77%
Global sample UKI 2011 UKI 2009
Source: 2011 CIO Study, Q12: “Which visionary plans do you have to increase competitiveness over the next 3 to 5 years?”; Global sample, n=3,018; UK/Ireland, n=113
6 © 2012 IBM Corporation

7. The most forward-thinking companies also see cloud as a force
that will impact their business models
Expect significant increase in change resulting from cloud
13%
41%
Expect to reinvent their customer value propositions with cloud
10%
29%
Expect to create / transform value chain through cloud Today
16% 2015
43%
Shift focus to driving substantial impact on customer relationships
14%
57%
*Source: 2012 IBM Institute for Business Value / The Economist study “The power of cloud – driving business model innovation”
7 © 2012 IBM Corporation

8. IBM UK’s 2012 “The Future of the IT Department” white paper
Addresses two common questions by
exploring the impact of Cloud on IT roles
and responsibilities in the next 3-5 years:
“Will cloud computing replace my IT
department?”
“What roles should I be recruiting
for as we move our IT to cloud
computing?”
The paper investigates a scenario where
an enterprise has chosen to move the
delivery of all IT services to cloud
providers.
8 © 2012 IBM Corporation

9. Introducing IBM’s Component Business Model for the Business of IT
Service and Service and
IT Customer IT Business IT Business Business Service Delivery
Information Solution Solution
Relationship Strategy Administration Resilience and Support
Development Deployment
Business
Technology and
Customer Governance Business Risk and
Strategy Service Delivery
Business Compliance
Strategy
Intelligence Strategy
Portfolio
Management
Direct
Information Development Deployment
Strategy IT Business Model
Strategy Strategy Strategy
Enterprise
Customer Architecture Business
Transformation Service Support
Resilience
Needs Service Strategy
Strategy
Identification Management
Strategy
Market Planning Financial Control Business Risk and
IT Management Service and Service Delivery
and and Accounting Compliance Service and
System Control Information Solution Control
Communications Control Solution Lifecycle
Architecture Implementation
Site and Facility Planning
Customer Continuous Planning
Control
Administration Infrastructure
Transformation Portfolio Value Business
Resource
Consulting and Management Human Resource Operations
Planning
Guidance Planning and Planning
Administration Information Service and Change
Service Demand Security, Privacy Lifecycle Planning Solution Deployment
Technology Sourcing and Control Architecture Control Service Support
and Performance and Data
Innovation Relationships and Planning
Planning Protection
Selection
Business
Procurement and Service and Service Delivery
Service and Project Compliance Technology
Contracts Solution Creation Operations
Solution Selling Management Analysis Implementation
and Testing
Execute
Business Infrastructure
Vendor Service Information
Resilience Resource
Coordination Content
Operations Service and Administration
Service
Knowledge Customer User Identity and Solution Service and
Performance Service Support
Management Contracts and Access Maintenance and Solution Rollout
9 Analysis © 2012 IBM Corporation
Operations
Pricing Processing Testing

10. Our model is grouped into a number of competencies
Service and Service and
IT Customer IT Business IT Business Business Service Delivery
Information Solution Solution
Relationship Strategy Administration Resilience and Support
Development Deployment
Business
Technology and
Customer Governance Business Risk and
Strategy Service Delivery
Business Compliance
Strategy
Intelligence Strategy
Portfolio
Management
Direct
Information Development Deployment
Strategy IT Business Model
Strategy Strategy Strategy
Enterprise
Customer Architecture Business
Transformation Service Support
Resilience
Needs Service Strategy
Strategy
Identification Management
Strategy
Market Planning Financial Control Business Risk and
and
IT Management
and Accounting Compliance Build andand
Service and
Service Service Delivery
Communications Plan and manage
System Control
Control Information
Architecture
Solution
Solution Lifecycle
Implementation Run
Control
Customer
Site and Facility
Continuous
Transition
Planning
Planning
Control
Administration Infrastructure
Transformation Portfolio Value Business
Resource
Consulting and Management Human Resource Operations
Planning
Guidance Planning and Planning
Administration Information Service and Change
Service Demand Security, Privacy Lifecycle Planning Solution Deployment
Technology Sourcing and Control Architecture Control Service Support
and Performance and Data
Innovation Relationships and Planning
Planning Protection
Selection
Business
Procurement and Service and Service Delivery
Service and Project Compliance Technology
Contracts Solution Creation Operations
Solution Selling Management Analysis Implementation
and Testing
Execute
Business Infrastructure
Vendor Service Information
Resilience Resource
Coordination Content
Operations Service and Administration
Service
Knowledge Customer User Identity and Solution Service and
Performance Service Support
Management Contracts and Access Maintenance and Solution Rollout
10 Analysis © 2012 IBM Corporation
Operations
Pricing Processing Testing

11. And a number of aspects
Service and Service and
IT Customer IT Business IT Business Business Service Delivery
Information Solution Solution
Relationship Strategy Administration Resilience and Support
Development Deployment
Business
Technology and
Customer Governance Business Risk and
Strategy Service Delivery
Business Compliance
Strategy
Intelligence Strategy
Portfolio
Management
Direct
Strategy Strategic Direction
IT Business Model
Information
Strategy
Development
Strategy
Deployment
Strategy
Enterprise
Customer Architecture Business
Transformation Service Support
Resilience
Needs Service Strategy
Strategy
Identification Management
Strategy
Market Planning Financial Control Business Risk and
IT Management Service and Service Delivery
and and Accounting Compliance Service and
System Control Information Solution Control
Communications Control Solution Lifecycle
Architecture Implementation
Site and Facility Planning
Customer Continuous Planning
Control
Administration Infrastructure
Transformation Portfolio Value Business
Consulting and Management Human Resource Control
Operations
Resource
Planning
Guidance Planning and Planning
Administration Information Service and Change
Service Demand Security, Privacy Lifecycle Planning Solution Deployment
Technology Sourcing and Control Architecture Control Service Support
and Performance and Data
Innovation Relationships and Planning
Planning Protection
Selection
Business
Procurement and Service and Service Delivery
Service and Project Compliance Technology
Contracts Solution Creation Operations
Solution Selling Management Analysis Implementation
and Testing
Execute
Business Infrastructure
Vendor Service Information
Resilience Resource
Service
Coordination Execution
Operations
Content
Service and Administration
Knowledge Customer User Identity and Solution Service and
Performance Service Support
Management Contracts and Access Maintenance and Solution Rollout
11 Analysis © 2012 IBM Corporation
Operations
Pricing Processing Testing

12. Increased
Scope unchanged Scope reduced No longer needed
importance
The model “after Cloud”
Service and Service and
IT Customer IT Business IT Business Business Service Delivery
Information Solution Solution
Relationship Strategy Administration Resilience and Support
Development Deployment
Business
Technology and
Customer Governance Business Risk and
Strategy Service Delivery
Business Compliance
Strategy
Intelligence Strategy
Portfolio
Management
Direct
Information Development Deployment
Strategy IT Business Model
Strategy Strategy Strategy
Enterprise
Customer Architecture Business
Transformation Service Support
Resilience
Needs Service Strategy
Strategy
Identification Management
Strategy
Market Planning Financial Control Business Risk and
IT Management Service and Service Delivery
and and Accounting Compliance Service and
System Control Information Solution Control
Communications Control Solution Lifecycle
Architecture Implementation
Site and Facility Planning
Customer Continuous Planning
Control
Administration Infrastructure
Transformation Portfolio Value Business
Resource
Consulting and Management Human Resource Operations
Planning
Guidance Planning and Planning
Administration Information Service and Change
Service Demand Security, Privacy Lifecycle Planning Solution Deployment
Technology Sourcing and Control Architecture Control Service Support
and Performance and Data
Innovation Relationships and Planning
Planning Protection
Selection
Business
Procurement and Service and Service Delivery
Service and Project Compliance Technology
Contracts Solution Creation Operations
Solution Selling Management Analysis Implementation
and Testing
Execute
Business Infrastructure
Vendor Service Information
Resilience Resource
Coordination Content
Operations Service and Administration
Service
Knowledge Customer User Identity and Solution Service and
Performance Service Support
Management Contracts and Access Maintenance and Solution Rollout
12 Analysis © 2012 IBM Corporation
Operations
Pricing Processing Testing

13. Summary of findings
1. The majority of current job roles remain,
albeit many with much reduced scope or
importance
2. Fewer strategic roles are impacted than
tactical or operational ones
3. Build and Run are the main ‘casualties’
as organisations source services from
cloud providers
4. Planning & commercial skills are key
and become more so; linking the IT
department more closely to the business
“Traditionally we’d have needed 40 people to run this infrastructure. Cloud takes
“Traditionally we’d have needed 40 people to run this infrastructure. Cloud takes
this down to three.”
this down to three.”
- -IT Director, Global Service Provider
IT Director, Global Service Provider
13 © 2012 IBM Corporation

14. Increased
Scope unchanged Scope reduced No longer needed
importance
IT Business
Strategy
Cloud impact on IT Business Strategy
Business Technology
and Governance
Maps between cloud provider capabilities and the business to
Strategy optimise and innovate
Portfolio Management
Direct
Strategy Still required to analyse investments and ascertain value.
Particularly important to determine how to get strategic
Service Management
Strategy advantage from standard services
Enterprise Architecture
Significantly simplified
IT Management System
Control Though it will retain some budgetary control, much of its
oversight, coordination and reporting responsibilities are better
Control
Portfolio Value done elsewhere
Management
Primarily within the remit of the cloud provider
Technology Innovation
Project Management Survives the move to cloud
Execute
Knowledge
Best practices and experiences will still need to be tracked
Management
14 © 2012 IBM Corporation

15. Increased
Scope unchanged Scope reduced No longer needed
importance
IT Business
Administration Cloud impact on IT Business Administration
Defines the overall business and operational framework for the
IT function. Many of the activities are no longer required
Direct
IT Business Model
Will continue to establish and manage all financial aspects of IT
function operations
Financial Control and
Accounting No longer required
Site and Facility
Control
Administration
Still required, but number of people supported reduced
HR Planning and
Administration
Sourcing Relationships
Critical initiation and management of relationships with providers
and Selection in line with the overall service delivery and sourcing strategies
Procurement and
Contracts Increasingly important to manage the complex relationships
Execute
Vendor Service
between the enterprise and cloud provider
Coordination
Customer Contracts Important allocation of cloud costs to internal budgets as well as
and Pricing providing a single bill for services from multiple cloud providers
15 © 2012 IBM Corporation

16. Increased
Scope unchanged Scope reduced No longer needed
importance
Service Delivery
and Support Cloud impact on Service Delivery & Support
Likely to remain in-house, although it can be argued that once
Service Delivery the strategic decision has been made to solely source from
Strategy
cloud, that this becomes largely redundant
Direct
Service Support
Strategy
No longer required. Responsibility moves to cloud provider
Service Delivery Control
Capacity planning functions are likely to find themselves
Control
Infrastructure Resource
Planning
subsumed into the Customer Contracts and Pricing component
that deals with financial planning
Service Support
Planning
Service Delivery No longer required. Responsibility moves to cloud provider
Operations
Execute
Infrastructure Resource
Administration Help desk and desk-side support services remain essential
Service Support activities, but support beyond the initial level 1 will be offered by
Operations the cloud provider
16 © 2012 IBM Corporation

17. Further observations
The fundamental challenge for most organisations
revolves around standardised vs. bespoke services
Governance remains a critical capability, particularly around
maintaining control over SaaS adoption
Integration remains a challenge, but there is likely to be an
opportunity to also source this as a service in the future
Relationships with partners and service providers in all
guises will become increasingly important
17 © 2012 IBM Corporation

18. Mind the (skills) gap
 With many of the traditional junior roles in
development and operations moving outside the
enterprise, it is hard to ascertain how candidates for
these new strategy and coordination roles will gain
the experience they need
 These junior roles will still reside within the service
providers, but may be much fewer in number and
more likely to be offshore
 Academia has an important part to play in ensuring
that graduates are equipped with the right skills
 Carefully consider your future resourcing and
retention plan
18 © 2012 IBM Corporation

19. For those considering private cloud adoption
 The adoption of Expert Integrated / converged /
engineered systems is on the increase
 These systems provide integrated management
for compute, storage, networking and middleware
 We see many clients trying to force-fit these into
their existing organisational design
 Changes to traditional IT silos, processes and
handoffs is necessary to fully capitalise on the
benefits these new systems bring
19 © 2012 IBM Corporation

20. Cloud and the transformation of business, IT and our daily lives
Mobile
Data New kinds
explosion of interactions
Security
Sprawling threats
hardware
20 © 2012 IBM Corporation

21. 2012 IBM Global CEO Study available 22 May 2012
21 http://www.ibm.com/services/uk/en/ceostudy.html © 2012 IBM Corporation

22. ibm.com/smartcloud
22 © 2012 IBM Corporation