How did IT fall so far behind the tech curve?

Summary: Information technology departments are overloaded, missing the consumerization wave, and failing to use new developments to cut their budgets.Those are some of the takeaways from a Gartner presentation at the IT Symposium in Orlando.

Information technology departments are overloaded, missing the consumerization wave, and failing to use new developments to cut their budgets.

Those are some of the takeaways from a Gartner presentation at the IT Symposium in Orlando. The spiel by Gartner analysts David Mitchell Smith and Tom Austin revolves around the state of IT departments as technology is rapidly being changed by their users. How exactly did IT become so crotchety?

Here's the scene setter:

Most IT professionals want the world to proceed in orderly, incremental fashion, with no massive overnight changes and with plenty of time to adapt to external change. Significant discontinuities are the stuff of which nightmares are made. For example, when assumptions about the useful life of an asset shift early in a project, plummeting from several years to several months, investors can get ruined, and people can lose their jobs and more. We see five major intersecting discontinuities on the horizon. They amplify each other. Any one of them can upset the balance of power between users and their IT organization (or between vendors in a segment). Put the five together and let them amplify each other's dislocating impact, and there is major trouble looming.

These five amplifying developments are:

  • Software as a service;
  • Open source;
  • Cloud computing;
  • Web 2.0;
  • And consumerization.

That list isn't all that surprising but Smith and Austin do capture the conundrum well.

More of the argument:

There is a fundamental mismatch between what enterprise IT is good at and what is happening on the Internet. For investment projects, IT organizations typically spend six to eight years from initial conceptualization through selling, planning, testing and implementation of the first release.  Project cycles, life spans and frequencies of Internet-related developments (and consumer-related product or service introductions) are radically different.

How do you provide enterprise class technology that's secure while catering to the masses and letting the users innovate?

Gartner argues that IT departments have to assess what they're good at and farm out the rest---to their users. Does IT really need to issue smartphones? Probably not. Instead of supporting worker laptops at $2,500 a pop, give them an annual stipend of $1,000 and let users buy their own PCs. In a nutshell, IT departments should split themselves and give users what they want (and make them buy it too). One side of the IT department will be a top-down dictator and the other will depend on bottom-up free markets.

Now Gartner has been on this user-provided IT pitch for a while now---the research firm equates the company laptop to the company car in the 1970s---and the prediction hasn't exactly become the norm. However, the move to let employees bring their own gear increasingly makes sense. Why? Employees are already bringing what they want to work anyway. Exhibit A: The iPhone. Exhibit B: Google. Exhibit C: Facebook. You get the idea.

Here's pitch for shifting IT to the users:

The choice for IT departments is relatively clear. You can deny that guerrilla IT has exploded in your company (the sales team's use of Salesforce.com and WebEx without central approval). Or you can embrace the digital natives and run with it. If you do the latter, Gartner recommends hiring college interns just to learn from them.

Gartner adds a few examples of security issues and building an architecture that can straddle the control vs. free user market line. However, the case really boils down to developing two separate IT approaches.

Topics: CXO, IT Priorities

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43 comments
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  • Okay, but

    They also go out and buy their own servers with some hidden budget line, then try to foist maintenance off on the CIO. And then we try to integrate the data - and the data isn't theirs, it's critical to the health, even survival, of the enterprise.

    Yes, we need to get more of the development into the hands of the end users - especially with the dramatic acceleration that cloud computing can afford - but supply them the infrastructure and standards, and make them prove they're following the standards. A failure by one can mean a failure for all.
    IT_User
  • It doesn't WANT to cut it's budgets

    They want to keep the same amount of people employed as
    they currently have, and moving to more 'efficient'
    methods or technology doesn't fit into that.

    Sure, I'm being a little pessimistic, but that's how I
    see it.
    Lerianis10
  • RE: How did IT fall so far behind the tech curve?

    Agreed with most points, but the biggest problem is for regulated industries that have SOX and HIPAA compliance consumerization of IT is exactly what will lead to a front page article of the NY Times
    a1by
    • yeah, we should ditch privacy violating HIPAA

      Yeah, we should ditch HIPAA because it allows far too much violation
      of privacy. Patients should have complete control of their own
      personal private information, not secretaries, administrators, etc.
      Professor8
  • Have to disagree

    First, new tech for new techs sake doesn't save money, it costs money. Unless there is a massive payback or a new capability that is sorely needed, keeping costs low is a good thing.

    Second, in most companies IT is not the core business of the company, its a cost center. Doesn't matter a bit when your real business is buidling widgets. IT becomes one more cost to be controled and forced to provide solid payback analysis, which rarely meets expectations. Companies have figured this out. Of course they also have to compete with other costs or capital investments. IT guy say, "We can cut IT costs 10% if you give me $50K". Marketing Guy says, "I can boost sales 30% if you give me the $50K". Thats a no brainer, the marketing guy wins and that is as it should be.

    Last, the 5 you list is more like 1 and 1/2.

    Software as a service; Not really, maybe a little. (half point)

    Open source; No real cost saving savings when you look at total cost of ownership. Been there, done that.


    Cloud computing; Not happening anytime soon in business. Failures like T-Mobile and Google should answer all the "why not" types.

    Web 2.0; 1.0, 2.0, or 17.0 its all just the internet will all the good and bad that goes with it.

    And consumerization. Depending on your prouct, this is the one that can be a real disruption. (One point)
    No_Ax_to_Grind
    • Actually you could do both

      You give the folks in marketing 50K. They boost your sales. Obviously more than 50K right. With that added cash flow you pull 50K out and put it into IT. IT guy cuts costs 10%. Obviously a saving greater than 50K otherwise why do it.

      So you spent 100K, but you earned more than 50K and you saved more than 50K.
      Saurondor.
    • I can't believe it, but I agree

      An additional problem is that data is becoming more regulated with potential fines for mishandling the data. This is especially true in the healthcare industry.
      Teran
    • Agree with both

      I agree with both Gartner and the comments titled "Have to disagree". Both are correct. I've worked for organizations where the central IT department was the 400 gorilla in every bureauocratic, initiative stifling way. I've also worked for organizations where IT tried to focus on the core technologies and projects while giving more leeway to end users. And that causes nightmares for IT because of months spent trying to figure out how the data in the ERP system database is continuously/mysteriously getting corrupted and it turns out to be the Excel spreadsheet or Access program created by the "smart guy/gal" in Accounting or Customer Service. Also every new computer, smart-phone, software, or technology that the VP of XYZ department 'needs' to do their job ALWAYS becomes the responsibility of the the IT dept, so IT cannot, ever walk away from that even if it wanted to.
      And in terms of SAAS and Cloud Computing... if you lived through the great Northeast blackout a few years ago or suffer with the occasional network outages that many organizations do (because the T1 line is down again) then those ideas just are not realistic. They remain the favorite topics of writers of white-papers, but they don't help the average company in America today.
      There's more to say but it's getting wordy... no easy answers.
      LetsGoDiving
    • Have to disagree with the disagreement

      "Marketing Guy says, 'I can boost sales 30% if you give me the $50K'.
      Thats a no brainer, the marketing guy wins and that is as it should
      be."

      No. No. NO!

      "Marketing guys" are even more no-brainers than most B-school
      bozos. And they always misunderstand, and promise things that
      cannot be delivered. They shouldn't be allowed anywhere near a
      computer, budget or expense account. It should be that marketing
      guys almost always lose.

      Open source is for radical leftists who don't want to openly admit
      that they're radical leftists. I get the impression that many still live in
      Mom's basement or on trust funds.
      Professor8
      • Open source

        "Open source is for radical leftists who don't want to openly admit that they're radical leftists."

        And proprietary is for the radical to the right?

        What happened to the middle?

        Open source is being adopted and will continue to gain ground. Total cost is another issue entirely.
        mylestonnies
        • He needs to go down in my mom's basement sometime...

          Nothing down there but old furniture. No Linux in sight.

          ;)
          Wintel BSOD
    • I have to agree - and Gartner predictions and analysis has been wrong...

      based on our environment it's no longer funny. They just seem to be missing the boat in A LOT of cases.
      ItsTheBottomLine
  • sigh . . .

    "However, the move to let employees bring their own
    gear increasingly makes sense. Why? Employees are
    already bringing what they want to work anyway.
    Exhibit A: The iPhone. Exhibit B: Google. Exhibit C:
    Facebook. You get the idea."

    Remind me not to hire you for any ethics lecture.

    People already do it, therefore we should allow it?

    "Instead of supporting worker laptops at $2,500 a pop,
    give them an annual stipend of $1,000 and let users
    buy their own PCs."

    Any company that tells me I need to buy my own work
    computer will be looking for another employee soon.
    CobraA1
    • It's called choice

      Choice A: You get $2,500 laptop that's completely locked down. You are a standard user and cannot install anything that is not on the approved SW list or visit any non-approved websites (FB, Twitter, etc.)

      Choice B: You get $1,000 and a minimum spec, go roll your own. You'll get a login to a virtual desktop where you can do your work but otherwise you are in change of your laptop. The virtual desktop will have AV and all the corporate apps streamed.

      This is not cutting edge anymore...this is real and is now...
      justthinking
      • That's fine.

        "Choice A: You get $2,500 laptop that's
        completely locked down"

        That's fine. The only thing I'll be doing on a
        work computer is working anyways.

        "Choice B: You get $1,000 and a minimum spec, go
        roll your own"

        Roll my own = support my own. I already have
        enough personal computers to support, thanks.

        "You'll get a login to a virtual desktop where
        you can do your work "

        In that case, they can just forget the stipend,
        put it into my paycheck, and tell me how to
        install the virtual desktop on my existing PC.

        "This is not cutting edge anymore...this is real
        and is now..."

        There's nothing "cutting edge" about business
        decisions. They're just decisions. That's the
        most absurd statement I've ever heard.
        CobraA1
    • LOL - very true! -nt

      nt
      ItsTheBottomLine
  • 'shift cost to users'?

    Long-term wise, that's going to be a disaster. Especially as
    wages for users keep going down in "the new normal"...
    HypnoToad72
  • And how sloppy will things get?

    I remember an article in a PC mag in the late 80s/early
    90s about auditing spreadsheets built by employees.
    Some very high percentage of errors in spreadsheets built
    by "users" and actually making decisions impacting the
    company.

    Now we have idiots loading up proprietary data onto
    notebooks that are promptly lost or stolen. Add in credit
    card numbers, Social Security Numbers and Lord only
    knows how much "classified" information.

    And now employees want to get more loosey-goosey?

    Arrrggghhh!

    Personally I believe it's time for IT to get some 300 pound,
    really ugly "compliance" staff that can go out and get a
    firm grip on the user's testicles.

    Maybe spend some additional funds on internal auditors,
    and give them a bonus for each user SNFAU and/or FUBAR
    they find.
    Ken_z
  • Will it last long ?

    I have spent many years working on the Enterprise IT side and I have a firm belief that computers are there to work for humans not the other way round.

    I have recently tried for 2 months to work at an internet company and seen the chaos. This opens up a new front whereby computers are being used to work for marketing campaigns.

    There is no interest in quality and security just get it out there and see what happens.


    We might see more of:

    http://www.guardian.co.uk/world/2009/sep/09/france-telecom-staff-suicides-phone


    http://www.readwriteweb.com/archives/facebook_hacked_again.php




    pauldavidgilligan
  • It's an investment

    Good IT can cost money - when done right it can improve customer relations, target marketing better, allow a company to adapt to changing market conditions, forecast and improve sales, increase employee productivity and efficiency, etc.

    Or you can choose to save money and assume the risk of downtime and system failures, no insight into customers decisions or business data, poor communication, and so forth.

    Network security and IT systems are like home insurance. By the time you realize you need it, it's too late. Maybe if there were criminal penalties for accidentally dispersing your database of customer information on the web - maybe the risk would be too costly to shoulder.
    crazydanr@...