My closing keynote on breakthourhg methods for using the cloud to enable fast innovation. Given on Day 1 of CIO.com's Future of Cloud Summit on April 12, 2022.
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And an Overall Enterprise Cloud Adoption Journey Becoming Clear
More
Strategic
and
Transformative
Point
Digitization
Fundamental
Transformation
Note: Exact Adoption Order Will Vary
Traditional Data Center
SaaS and Private Cloud
Public, Hybrid IaaS, PaaS, Edge
Early Online
Phase
Cloud Adoption
Phase
Early Cloud
Maturity
Middle Cloud
Maturity
Point
Cloud
Adoption
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1 2
Insight: The Value of Digital is Driven by
Power Laws That Pay Off Big Downstream
But Most Organizations Only Change
Linearly, or Logarithmically at Best
The Payoff of Power Laws
(Like Moore’s Law) Over Time
Understanding Exponential Tech Change Helps Us Prepare
Enabling Us to Anticipate the Nearly Unlimited Value Potential
18. #cloud @dhinchcliffe
Constellation Research (cc) 2022 | Some Rights Reserved
Decentralization of Everything is Arriving…
The Structure of IT Will Likely Have to Change Radically
• Decentralization is coming
• Open movements to broadly decentralize technology,
the Internet and business, making it more trusted and
private
• Everything in the IT stack, and beyond
• Including personal identity, data, media, services,
applications, transactions, and even finance and
money
• Crowdsourcing, cloud, blockchain and other
decentralized tech underpinning
• Fundamentally centered around local fit for purpose
• Flying under the IT and business radar
• Leading edge is Web3
Datacenters Public cloud
IT Procurement Self Service SaaS, App Stores
Cloud Edge
Pro Code Low/No Code
IT Support Crowd Support/AI Agents
Developers Citizen Developers
Central DT Distributed DT
One-Size-Fits-All IT Local Adaptation of IT
Internet/Web Web 2.0 and Web3
Databases Blockchain
Closed Source Open Source
• Massive economic (tens of billions of $ a day in
transactions) and wild tech innovation activity
• $2 trillion market right now
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Because Traditional Models of Tech Adoption Has a High Failure Rate
•77% of large IT/change initiatives fail…HBR
(1970s -> Now)
•Historically the adoption of emerging tech has
left a wake of failed efforts
- ERP, CRM, SOA, etc.
•Digital change programs that use traditional
adoption approaches usually do not work
- Most strategic change programs are program-driven and in
today’s faster world outdated before being fully implemented
- Traditional change programs are static, cascading one time
events
- Traditional adoption processes are technology-centric while
digital adoption requires a human centric lens
Our New Understanding
Post-Pandemic:
We must find different
ways of adopting tech
and driving change that
scales sustainably
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incremental change
IT
IT as support unit,
enabling centrally,
“Doing it all”
Limited external
competition/enablement
service providers
outsourcing firms
faster change
IT as support unit,
CoEs driving innovation
More external
competition
service providers
outsourcing firms
app stores
IT
CoE CoE
cloud
fastest change
network of IT enablement,
broadly innovating decentrally
Most external
competition
service providers
outsourcing firms
app stores cloud
CoE = Center of Excellence | NoE = Network of Excellence | = Shadow IT
NoE
CoE
LoB
LoB
CoE
LoB
dev partners
dev
partners
APIs
Back to the CoE. What’s Next for IT and Cloud?
change
agents
cloud
platforms
31. #cloud @dhinchcliffe
Constellation Research (cc) 2022 | Some Rights Reserved
Riding Fast Waves of Change
The Methods of IT Will Likely Have to Change Radically
• The cloud is the richest and most powerful resource IT has
today to adapt, innovate, and grow
• But traditional tech adoption will never take advantage of the
cloud anywhere near rapidly enough or at sufficient scale
• Emerging but proven methods for realizing fast change are
key, with decentralization being the leading and most
powerful approach
• Organizations willing to cede some direct centralized control
can create change up to 5-10x faster than they have today
• These organizations are far more likely to thrive as the mature
age continued to grow and become more complex
• The future of IT is about effective complexity management