• Bob Suh – CEO OnCorps (former CTO Accenture)
• Brian Behlendorf – CTO World Economic Forum
• Don Duet – CIO Goldman Sachs
• Gary Reiner – Partner General Atlantic (former CIO GE)

The Renaissance of Enterprise Computing There is a reawakening of innovation as IT is “blown to bits” by Mobile, SaaS, and Cloud  PETER LEVINE

In the late 90’s – people believed everything had been invented – by 2002 the enterprise was a desert – barren of innovation.

• 10 years ago – VMware couldn’t get funded…
• Corporate data had to be inside the data center..
• Halsey Minor – 2004 – “in four years the whole notion of enterprise software will be dead..“

In 2012 – there is a reawakening of innovation in the enterprise – 3 reasons

Cloud & SaaS & mobile reawakening innovation in the enterprise

Cloud & SaaS are the new standard 

New technology is wining vs.  incumbents 

1.   Cloud infra replacing data centers

2.   SaaS is replacing – applications and related operations

3.   Mobile is redefining the PC

Consumer centric movement in the enterprise – the “middle” of the organization is driving change based on what they do outside of work

Response to what they use and do outside of work – why can’t I do that at work…

• Incumbents fail in cycles and when they do market sizes increase
• Easier to use innovations / or new ways results in larger user base
• Drives market size up
• Incumbents are used to entitlements – a virtuous cycle based on end of quarter and maintenance steams

Today – pay as you go, no perpetually as with incumbents  

• Incumbents like Cisco not as dominant as before – struggling with messaging and capabilities 
• SAP – finding it difficult to shift
• Microsoft is struggling. Might not need to interface with a computer through Windows… 
• In mobile, Windows is almost non-existent.
• The key going forward is – How can/will incumbent buy, build, invest and recreate themselves in this new model.

Innovation is occurring outside of incumbents.

• Cloud – security, storage & networking being redefined
• SaaS – collaboration, CRM, Marketing automation
• Mobile – apps, BYOD, UX/Sensors-already in the device — how to use
• Data & analytics underly and are integrated will all of the above – it’s part of the design

Pace of innovation is faster than ever and increasing.

• I the past a large part of initial investment for innovation would be in infrastructure and people to run it 
• Then reach out to market to gauge interest 
• Then pilot – over a long period

 Lifecycle of the deal was very long and costly

Today – most new systems and capabilities don’t have those constraints and are not dependent on legacy systems

Reduces level of investment and speeds adoption curve

Shifts are creating a virtuous shift in innovation

Faster time to innovation and value

• We all heard about it before but is happening now
• Smart phones ate the Thomas Guide, calculator, camera
• Amazon is 100{d6f5a70bbf0a363c76b6e252c1d97c7463c17db3162d4982c3d27fd35262b223} cheaper that before (compared to loud cloud in 2000)
• Programmers are 10x more productive at the same outcome 10 years ago
• Market size is 50x larger
• 10 years ago there were 50 million browser users – half on dial-up

All this sets the stage for software to eat the world

• Everyone is used to the services delivered as software
• Amazon ate Borders
• Amazon is now the most important threat to every retailer in the world
• Kindle is eating all books and ate Borders
• Netflix now has more customers than Comcast
• iTunes, spotify, pandora software ate tower records
• Games are being eaten by Zynga, roving
• Disney had to buy a software company to remain relevant in animated film
• Instagram and Facebook area Kodak
• Google has eaten the newspaper Business
• 24{d6f5a70bbf0a363c76b6e252c1d97c7463c17db3162d4982c3d27fd35262b223} of all long distance minutes are on Skype – and it has video
• Software are telecom
• LinkedIn now the biggest recruiting site
• PayPal, square – software eating financial services

• Currently – 

• Windows and desktop support – hard job
• Keeping hand crafted infrastructure running
• Smal misconfiguraion causes enormous effort
• Installing, upgrading and maintaining packaged software
• Expectation from Business of innovation with all this burdon

• What if:

• You already have a computer- just bring it to work
• SaaS replaced the packaged app dilemma
• IaaS cloud Infrastructure replaced data centers
•  

• What should you do as CIO?
• Determine what company or solution is the one that will eat yours and – 

• Build it inside your company
• If can’t fund – get Andreessen Horowitz 
• Most of your IT would be software developers
• A big analytics capability – to know everything about your business
• New innovators know every click of what their customers are doing
• Security and control are table stakes 

• Get to be an engine for innovation – over the next ten years
• Eat or be food….