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Hybrid Cloud

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Public, Private and Hybris Authors: John Katrick, Elizabeth White, AppNeta Blog, Kong Yang, Nishanth Kadiyala

Related Topics: ERP Journal on Ulitzer, Hybrid Cloud

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Hybrid Cloud – Taming the Digital Dragon | @CloudExpo #Cloud

Gartner describes how Hybrid Cloud enables increased adoption of public and private IaaS, PaaS, SaaS and BPaaS

In the Gartner white paper Taming the Digital Dragon, they define the Hybrid Cloud model as an enabling blueprint for digital transformation and leadership.

They give it such an elaborate name because their definition goes far beyond the normal industry use of the term, a mix of on-premise and public Cloud computing, whereas Gartner instead defines a Hybrid Cloud business model.

Their central thesis is that the Hybrid Cloud model is key to the CIO strategy to ‘renovate the IT core’, modernizing the legacy estate to enable new digital strategies and thus provide the tool set for meeting the challenge of digital native competitors.

Gartner characterizes this change as:

“All industries in all geographies are being radically reshaped by digital disruption — a “digital dragon” that is potentially very powerful if tamed but a destructive force if not. It’s a CIO’s dream come true, and also a career-changing leadership challenge.”

As their ‘We are here’ arrow describes Gartner propose we are at the transition point from a second to a third generation of IT, the shift from IT industrialization to Digitization. where the key skills of a CIO are business models and digital leadership, rather than just IT service management.

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Bi-modal IT model
Gartner describes how Hybrid Cloud enables increased adoption of public and private IaaS, PaaS, SaaS and BPaaS, making a ‘Bi-modal IT’ framework possible, made up of three core foundation:

  • Moving to a more loosely coupled “postmodern-ERP” paradigm – More federated ERP, multi-enterprise solutions, cloud components, mobile support, embedded analytics
  • Creating the information architecture ad capabilities to exploit Big Data – Handled through in-memory databases, advanced analytics, unstructured and multimedia data
  • SME Innovation Ecosystem: Augmenting conventional sourcing with more innovation, including sourcing from, and partnering with, smaller and less mature enterprises, in key categories of partners: Mobile, design, etc.

Fundamentally the emergence of a ‘Bi-Modal IT’ capability represents the evolution to the third era of IT that Gartner introduces.

Establishing DevOps teams and Agile software practices atop a Hybrid Cloud platform builds a second, much faster and adaptive layer of IT innovation that extends legacy business IT into new digital business models.

gartner-dd-1

As Gartner concludes:

“CIOs now face the challenge of straddling the second era of enterprise IT and a new, third “digitalization” era — moving from running IT like a business within a business, into a period characterized by deep innovation beyond process optimization, exploitation of a broader universe of digital technology and information, more-integrated business and IT innovation, and a need for much faster and more agile capability.”

SME Innovation Ecosystems
The resourcing strategy extends well beyond the enterprise organization, Gartner encourage building available innovation pools through new engagement models such as working with startup hubs and clusters.

Often the somewhat rigid structures and processes of IT departments, such as fixed employment or procurement via RFP, aren’t the most innovation-encouraging activities. This means CIOs can easily source their functional requirements, such as delivery and support of a SAP system, but they struggle to engage personnel who can devise innovative new ways in which it might be used to extend a successful digital strategy.

That’s a much more rare skill set and is often concentrated in small startup businesses, where domain experts seek to exploit their considerable assets of knowledge areas. They in turn urgently need reference clients and problem statements to build their business around, and so very dynamic fusion can be achieved with regards to shared goals of digital innovation.

Gartner eloquently capture this evolutionary growth of the IT departmental culture:

“IT as order taker is the wrong model for taming the digital dragon. Digital innovation will require IT to ideate, or dream the digital dream, and execute in close partnership with colleagues, in an exploratory way, with understanding of the potential of new trends. Much of the innovation will come as major disruptions to the way we think about businesses. Processes will cease to be the whole story or even the main story.”

gartner-dd-2

Approaches include building a dedicated new digital team, like Scotiabank, or to emphasize the key strategic principle that Gartner describes, the development of local SME ecosystems.

The innovation communities aren’t limited to the private sector, in government agencies like the DVLA have been working with local startup hubs as a means of cultivating their available innovation pools and developer capacity.

Still within the UK public sector an even larger example is the G-Cloud procurement framework has been especially successful at marshaling the UK small business IT market into a dynamic Cloud services marketplace, the scale of success being demonstrated by the monstrous revenues being generated through the marketplace.

As this demonstrates the principle is especially useful when very large scale IT requirements are considered, such as providing sector-wide Cloud services to the UK government. The G-Cloud acts as this SME Innovation Ecosystem function for all CIO’s across the sector.

Innovation Scenario: Digital Banking Reference Architecture
The role of the Hybrid Cloud as a keystone foundation for technology-enabled innovations can be more explicitly defined as we explore different industry scenarios for how it might be applied.

For example if we consider scenarios such as Digital Banking, we can review the materials of last year’s Cardware conference in Toronto, where they covered a variety of innovations in the payment card field, including this Identity aspect.

From slide 7 the Muration Group presentation introduces and explains the of ‘Federated Identity’ in mobile payment scenarios, enabling features such as Facebook Auto-fill, as well as key related technologies such as ‘Tokenization’ to protect card numbers.

Giesecke explains how a Trusted Execution Environment provides a secure platform for these apps, and in this presentation they also describe the role of the Hybrid Cloud, on page 8 demonstrating the Hybrid Cloud based Mobile Payment scenario.

Thus in a very simple form we can define the role of Hybrid Cloud as a digital innovation enabling platform, where when combined with appropriate application components, can be configured to enable accelerated business model capabilities for industries like banking. We’ll be going into more detail for these solution scenarios in our ongoing ebook series.

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