madison

2020 visions: ZapThink predicts end of IT as we know it

By | September 9, 2010, 8:43pm PDT

Summary: If enterprises ‘rush to offload IT,’ will they regret it?

Some people are predicting the end of things in 2012. ZapThink is giving enterprise IT up to eight years beyond that, however. Jason Bloomberg recently published a set of predictions — or “crisis points” — pertaining to the fate of enterprise IT within the next 10 years.

If enterprises ‘rush to offload IT,’ will they regret it?

Three of Jason’s predictions give enterprise IT managers pause: the impending collapse of enterprise IT, enterprise application crash, and the fall of frameworks.

Regarding the collapse of enterprise IT, Jason says it won’t be fashionable for non-IT businesses to be doing IT. He says by analogy, enterprises use office furniture, “but nobody would think of manufacturing their own.” He adds that it will be surprising “just how fast enterprises rush to offload their entire IT organizations.”

Jason promises more details on how this will roll out. However, not everybody agrees that enterprise IT is a vanishing breed. Michael Poulin, for one, begs to differ. Ship out your IT, and risk bringing down your entire enterprise, he warns. “The blindness of the executives who do it now is the really astonishing thing, especially when the ‘pioneers’ are starting to feel the pain and frustration from what they did,” he says.

“Business that ’stop doing their own IT, and furthermore, move their outsourced IT off-premise’ make a step back in their competitiveness in the market…. I am saying that the enterprise, if it wants to live a long good life, has to keep its IT in house.”

I agree that there is a competitive advantage that a well-integrated IT strategy can provide, and would like to add the following points:

  • Businesses that include CIOs or IT executives as part of their top-tier executive committees are tapping into a tremendous resource. Companies I’ve spoken to that include CIOs in strategic decision-making tend to be very adept at leveraging technology as a go-to-market weapon.
  • The lines between non-IT companies and vendors are blurring, and will get fuzzier. As discussed on previous occasions at this blogsite, all enterprises (IT and non-IT businesses alike) are becoming both providers and consumers of services. This calls for robust capabilities to offer services across partner networks and the Internet at large, as well as to be able to consume services.
  • Just because a lot of technology resources may reside outside the organization doesn’t mean an enterprise won’t need tech-savvy executives that know how to make the most of technology. Such individuals are needed more than ever, to help identify and coordinate both internal and external technology-based services. Someone needs to know this stuff, and how it can apply to this business. (See the first point.)

So, yes, it will be the end of enterprise IT as we know it, but not the end of IT. If anything, a more strategic and partnership role.

Jason also talked about the collapse of frameworks will come about as organizations press their enterprise architects to deliver rapid solutions to business problems, rather then getting “bogged down in the details, spending time with various frameworks and other artifacts, to the point where the value they provide to their organizations is unclear.” Frameworks lead to “checklist architectures,” he says. Regarding applications, “the days of ‘Big ERP’ are numbered,” he says.

UPDATE: I just posted a guest piece over at the Informatica Perspectives site discussing the impact of private cloud development on IT departments. There tends to be angst, as there is with any major change. But, ultimately, new avenues of opportunities open up as well.

Kick off your day with ZDNet's daily e-mail newsletter. It's the freshest tech news and opinion, served hot. Get it.

Topics

Joe McKendrick is an author, consultant and speaker specializing in trends and developments shaping the technology industry.

Disclosure

Joe McKendrick

Joe McKendrick is an independent consultant, editor and speaker.

Joe has performed project work (white papers, articles, blogs, research and presentations) for the following companies in the IT marketspace:

  • CBS Interactive/CNET/ZDNet (this blog)
  • ebizQ
  • Evans Data
  • Gartner
  • IBM
  • Informatica
  • IDC
  • Microsoft
  • Systinet/HP
  • Teradata
  • Unisphere Reseach, a division of Information Today, Inc.
  • WebLayers

Joe has also performed research work for the following sponsoring organizations in partnership with Unisphere Research, a division of Information Today, Inc.

  • IBM
  • Luminex
  • Noetix
  • Oracle Corp.
  • Teradata
  • Informatica
  • International Oracle Users Group
  • Oracle Applications Users Group
  • Professional Association for SQL Server
  • International DB2 Users Group
  • International Sybase Users Group
  • SHARE (IBM large systems users group)

Biography

Joe McKendrick

Joe McKendrick is an author and independent analyst who tracks the impact of information technology on management and markets. Joe is co-author, along with 16 leading industry leaders and thinkers, of the SOA Manifesto, which outlines the values and guiding principles of service orientation. He also speaks frequently on Enterprise 2.0 and SOA topics at industry events and Webcasts. As an independent analyst, he has also authored numerous research reports in partnership with Unisphere Research, a division of Information Today, Inc. for user groups such as SHARE, Oracle Applications Users Group, and International DB2 Users Group. Joe is also an active SOA contributor for ebizQ/TechTarget. In a previous life, Joe served as director of the Administrative Management Society (AMS), an international professional association dedicated to advancing knowledge within the IT and business management fields. He is a graduate of Temple University.

Talkback Most Recent of 6 Talkback(s)

  • Jason Bloomberg is full of crap.
    Comparing IT services to office furniture is a joke. Some IT services are fairly ubiquitous...email, for example. Others are not and never will be. I've done work for close to 500 manufacturing companies in my career. The software requirements for running the manufacturing portion of their business, including ERP/MRP, were all over the place. No two ran their business the same. Every single one had at least one programmer, some many, whose sole job was to take shrink-wrapped software and modify it to work for how they did business. They had their own staff because the cost of hiring an outside firm to manage all these changes would be cost-prohibitive. It all boils down to ROI. In the future there will certainly be ROI gains in outsourcing parts of the IT infrastructure. Conversely, there will always be ROI losses for outsourcing others and business will always avoid those losses wherever possible. That means that internal IT is here to stay. The days of big ERP will outlast me, Jason Bloomberg and anyone else so long as there are computer systems in the workplace. It's time Mr. Bloomberg set aside the bong and join us in the real world.
    ZDNet Gravatar
    jasonp@...
    10th Sep 2010
  • RE: 2020 visions: ZapThink predicts end of IT as we know it
    The companies that offload their IT will end up regretting it. Outsourcing just doesn't work with IT. You don't get the same level of support, the employees don't care about your network because they aren't part of the company. I don't see how any CEO would even consider doing this.
    ZDNet Gravatar
    Loverock Davidson
    10th Sep 2010
  • CEOs do it
    @Loverock Davidson
    CEOs do it because they see a short-term gain, and fail to see the long-term loss.
    ZDNet Gravatar
    VBJackson
    3rd Aug
  • RE: 2020 visions: ZapThink predicts end of IT as we know it
    I put down the bong many years ago, thank you! Please note that I am definitely NOT recommending outsourcing IT. The fact that this trend is a Crisis Point is that enterprises are actually doing it -- for better or worse. Usually for the worse!
    ZDNet Gravatar
    jbloomberg123
    10th Sep 2010
  • RE: Crisis point
    I fail to observe why this is being observed as a 'crisis' or a critical point when a fairly large amount of enterprise application development is already in a constant state of flux. The in-house services aren't going anywhere.
    ZDNet Gravatar
    Sumit Bisht
    13th Sep 2010
  • RE: 2020 visions: ZapThink predicts end of IT as we know it
    Why is this a crisis point?

    Ask a CEO about the decision to lease a vehicle or buy a vehicle, and you will get one of two answers:
    If he is accounting savvy as well as business savvy, he will give you the cost breakdown, including maintinance, financing, and depriciation expenses.
    If not, he will tell you that he had Accounting run the numbers.

    Now ask him about IT.
    If he is tech savvy, he will talk to you about internal and external customers, infrastructure and depriciation costs, and in-house expectations and costs as compared to consultants or outsourcing.
    If he isn't tech savvy, he will tell you he had accounting run the numbers.

    What is REALLY going to hit a crisis point, is the expectation that internal IT departments are going to "Take on an advisary role", if the day to day operations are outsourced.
    If there is not an entry-level position within the corporate IT department, them just HOW are there supposed to be any people trained in the details and execution of IT that would form the basis for providing advice!
    ZDNet Gravatar
    VBJackson
    3rd Aug

Talkback - Tell Us What You Think

Formatting +
BB Codes - Note: HTML is not supported in forums
  • [b] Bold [/b]
  • [i] Italic [/i]
  • [u] Underline [/u]
  • [s] Strikethrough [/s]
  • [q] "Quote" [/q]
  • [ol][*] 1. Ordered List [/ol]
  • [ul][*] · Unordered List [/ul]
  • [pre] Preformat [/pre]
  • [quote] "Blockquote" [/quote]
Click Here

The best of ZDNet, delivered

ZDNet Newsletters

Get the best of ZDNet delivered straight to your inbox

Facebook Activity

White Papers, Webcasts, & Resources