It’s not surprising that cloud computing is grabbing money out of budgets formerly allocated to hardware and virtualization. After all, at a certain point, it becomes more cost effective to let someone else build efficient data centers. Few can out-datacenter Amazon.
But what is perhaps surprising is where the cloud dollars will go in 2012: mobility and infrastructure support, according to a new survey of medium-size and large enterprise CIOs published by CIO Insight.
Not that hardware vendors are going out of business in 2012. Thanks to heavy spending by the cloud vendors, as detailed by Morgan Stanley Research (warning: PDF), server vendors will continue to make money, albeit on a much more modest growth curve. Red Hat, too, as the arms dealer to many of these cloud vendors, will also continue to thrive. At any rate, as with government expenditures, few ever really cut spending. They simply grow it more slowly, allocating budget savings in one area to another, increasing spending all the while, year-over-year.
Mobility is a no-brainer. App development is CIO Insight‘s fastest growing budget area, as enterprises seek to embrace the consumer smartphone trend to deliver functionality in app-like form.
IT infrastructure operations software, however, is perhaps less obvious, because it’s less visible. But in a world where enterprises risk losing control of their IT as it’s distributed across public and private clouds, as well as internal and external data centers, it’s perhaps even more critical to business success. The cloud, after all, is collecting data from, crunching data for, and serving data to mobile devices.
Which is why business intelligence remains a hugely important budget item, as the report points out:
{B]usiness intelligence…has become one of the most popular areas of IT investment. Nearly nine in 10 organizations are budgeting BI for 2012. The rise in investment should astound anyone: More organizations will spend on BI in 2012 than on any other kind of application. By comparison, 84 percent are budgeting for traditional desktop productivity applications, 83 percent for project management and an equal number for collaboration solutions, and 82 percent for human resources apps. Across all 75 budget areas, BI will be the seventh most common in 2012.
As the cloud becomes more important to delivering business value, I suspect we’ll see a similar rise in what we at Nodeable call “systems intelligence.” Think of it as business intelligence for your cloud systems, be they Amazon Web Services (AWS), GitHub, JIRA, or even Nagios, Puppet, or…you name it. If it has an API, it can be monitored and managed, and increasingly will, whether or not one would normally term it a “cloud” system.
And the reason for systems intelligence is roughly the same as business intelligence: BI exists to make sense of all the disparate business data that can help a CEO streamline her business. Systems intelligence exists to make sense of all the disparate systems data that can help a CTO/CIO streamline her IT operations.
If the CIO’s paramount job responsibility in 2012 is delivering operational efficiency, then it follows we must become much more adept at tracking and influencing the systems that have the potential to deliver such efficiency. My app is down: is it AWS’ fault? Bad code committed to GitHub? Some combination of the two? Which of my developers is the most productive? Who on my DevOps team is closing the most JIRA tickets? Etc.
All of these questions are easily answered by our systems, if we know how to ask. And how they interact with each other is also easy to find out…if you’ve put a heck of a lot of effort into getting the right data from the APIs, as Nodeable does.
CIOs are investing heavily in the cloud to get to greater levels of operational efficiency, but they’ll never get there without also investing in systems intelligence tools that understand the cloud. Tools like Boundary, or Nodeable, or other new-school systems management tools.
Nodeable CEO talks cloud on Tv
Nodeable CEO Dave Rosenberg talks cloud on Tv
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