The Cloud Pays Off

Cloud Bus.jpeg

So for those of you who thought the cloud only pays if your a consumer of technology who is looking for scalability and flexible pricing models, think again. 


Bloomberg has an interesting article on how Adobe is growing their revenue by billions switching their apps to to the cloud. 


Instead of customers paying a one time purchase price for Creative Suite or Acrobat, now customers must pay for Creative Cloud or Document Cloud subscription fees that may sound small in the beginning, but really add up over time. 


And more than that, Adobe doesn’t have to worry about wowing customers with the next upgrade in order to get them to make another purchase, because as long as their products are competitive, the customers will keep paying their subscriptions fees money month after money month.


What’s better than making a sale to a customer?  Selling to them in a cloud subscription model that keeps paying and paying and paying. 


No wonder it’s better to have your head and technology in the cloud–it’s a true rainmaker! 😉


(Source Photo: Andy Blumenthal)

You’re Getting Milked

Cow.JPeG

If you have a pulse and have been to the stores or even shopping online lately (hey, it’s the holidays so of course you have), you know that prices are on the rise.


And this is amazing, because–


Major factors point to pricing that should be driven down:


Commodities–which are the basic raw materials from agriculture to oil and gas and metals and mining–are at a more than 16-year low!


Manufacturing has moved to low cost sourcing countries (China, India, Vietnam, Africa, etc.)


Technology continues to benefit us in terms of cost-efficiencies from the transformation to robotics and automation.


Yet, we keep on seeing prices move ever higher:


Just a few examples…


– “Housing market is on fire” with existing home prices exceeding the pre-recession peak!


– “Car prices at records highs – and rising


– “Food prices are sky high“–it’s not your imagination.


Fashion “prices rising so fast


Health care spending is “again accelerating”


– “College costs are so high and rising.


Forget the B.S. of the basket of inflation stats your being feed…you know that your bills are going up, while your income is stagnant.


The real question is why is the middle class always getting milked–whose interest does it serve? 😉

U.S. To Give Up U.S.?

U.S. To GIVE UP U.S.

This is just ridiculous already…I mean why do we even bother to try, if as a nation we are just resigned to give up.

1. Russia takes Crimea and the U.S. has “no options,” instead of considering a variety of meaningful options–will Putin stop with Crimea, Georgia, Chechnya if there is virtually nothing standing in his way?

2. Syrian civil war goes on for almost 3 years and takes 150,000 lives and the U.S. has “few options,” while Russia, Iran, Hezbollah, Saudi Arabia seem to have and be exploiting lots of options.

3. “U.S. to give up Web oversight” since other governments have complained over our “unique influence”–well darn it, we invented the Internet, why shouldn’t we capitalize on it?

4. Serious “deficit reduction is dead” even though the national deficit continues to grow and threaten the national security of this country, but there are few acknowledged options for politicians that want to get re/elected, except to continue the runaway gravy train.

5. Space exploration to other planets–NASA shelves it–“Space, the final frontier…to boldly go where no man has gone before,” but we’re not really going!

6. Defense cuts threaten U.S. military as the “U.S. faces a more volatile, more unpredictable world,” and even as China ramps up its military budget by 12.2%.

7. Despite the potentially catastrophic impact that a serious cyber attack would have on the U.S. national security and economy, “the U.S. military is not prepared for cyber warfare“-why are we waiting for the proverbial lights to go out?

8. Outsourcing jobs outside the U.S. has already become cliche–with top U.S. Corporations sending more than 2.4 million American jobs overseas between 2002-2011–as our own labor force participation is now at a 30-year low!

I don’t understand what has happened to our national resolve to succeed, to lead, to be a good example in the world.

Why are we in global retreat–instead of steadfastly protecting and growing our national strategic interests in every domain?

We are innovators, entrepreneurs, skilled in every worldly affair, and lovers of freedom and human rights for all, yet we have become gun shy, afraid, and reticent to be ourselves and do what we do best–which is to do what’s right, what needs to be done, and to be global leaders in progress toward the future.

If we can’t do this, if we have just given up, if we have become ostriches with our heads in the sand–then we haven’t just given up on this or that or the other thing–but we have given up on being the U.S. of A.

(Source Photo: Andy Blumenthal)

10 Ways To Improve Federal Technology

10 Ways To Improve Federal Technology

While it’s good to improve government services through advances in information technology, we also need to do better with what we have, which is our own valuable IT human capital.

In the Wall Street Journal today, the “health-site woes” are spurring a push for changes to federal technology, including the possibility of a “federal unit dedicated to big tech projects.”

Whether or not we carve our a separate big tech project unit, we can do so much to improve success in all our agencies by valuing our people and motivating them to succeed.

As democracy and capitalism have taught us, we need people to be free to innovate and reward them appropriately.

While the grass may look greener in Silicon Valley, our challenge is to utilize all our resources in whatever part of the country they reside, whether they be government or private sector workers.

Ultimately, like most things, this is a human challenge, and not just a technology issue.

Hence, I developed the above comic strip to demonstrate 10 Ways to Improve Federal Technology, so we can all succeed together. 😉

(Source Cartoon [click here to enlarge]: Andy Blumenthal)

Cloud Kool-Aid

Cloud Cool Aid

We’ve all drunk the Kool-Aid and believe in using the cloud.

And with almost 1 million active apps alone in the Apple Store it is no wonder why.

The cloud can create amazing opportunities for shared services and cost efficiencies.

The problem is that many are using the cloud at the edge.

They are taking the cloud to mean that they in government are simply service brokers, rather than accountable service providers.

In the service broker model, CIOs and leaders look for the best, cost effective service to use.

However, in NOT recognizing that they are the ultimate service providers for their customers, they are trying to outsource accountability and effectiveness.

Take for example, the recent failures of Healthcare.gov, there were at least 55 major contractors involved, but no major end-to-end testing done by HHS.

We can’t outsource accountability–even though the cloud and outsourcing is tempting many to do just that.

Secretary Sebelius has said that the buck stops with her, but in the 3 1/2 years leading up to the rollout relied on the big technology cloud in the sky to provide the solution.

Moreover, while Sebelius as the business owner is talking responsibility for the mission failures of the site, isn’t it the CIO who should be addressing the technology issues as well?

IT contractors and cloud providers play a vital role in helping the government develop and maintain our technology, but at the end of the day, we in the government are responsible to our mission users.

The relationship is one of partners in problem solving and IT product and service provision, rather than service brokers moving data from one cloud provider to the next, where a buck can simply be saved regardless of whether mission results, stability and security are at risk.

In fact, Bloomberg BusinessWeek, outlines the 3 successful principles used in the creation of consumerfinance.gov by the new CFPB, and it includes: “Have in-house strategy, design, and tech”!

Some in government say we cannot attract good IT people.

Maybe true, if we continue to freeze salaries, cut benefits, furlough employees, and take away the zest and responsibility for technology solutions from our own very talented technologists.

Government must be a place where we can attract technology talent, so we can identify requirements with our customers, work with partners on solutions, and tailors COTS, GOTS, open source solutions and cloud services to our mission needs.

When Sebelius was asked on The Hill about whether Healthcare.gov crashed, she said it never crashed, which was technically incorrect as the site was down.

The cloud is great source for IT provision, but the pendulum is swinging too far and fast, and it will by necessity come back towards the center, where it belongs as an opportunity, not a compliance mandate.

Hopefully, this will happen before too many CIOs gut the technology know-how they do have and the accountability they should provide.

(Source Photo: Andy Blumenthal)

Back To The Computer Stone Age

Back To The Computer Stone Age

According to Charles Kenny in Bloomberg BusinessWeek (20 June 2013), the Internet is quite a big disappointment–because it “failed to generate much in the way of economic growth.”

While on one hand, the author seems to see the impact that the Internet has had–“it sparks uprisings, makes shopping easier, help people find their soul mates, and enables government to collect troves of useful data on potential terrorists;” on the other hand, he pooh-poohs all this and says it hasn’t generated prosperity.

And in a sense, don’t the facts seem to support Kenny: GDP is still in the 2-3% range, labor productivity growth is even lower, and unemployment is still elevated at over 7%?

The problem is that the author is making false correlations between our economic conditions and the rise of the Internet, which already Jack Welch pronounced in 2000 as “the single most important event in the U.S. economy since the industrial revolution.”

Kenny seems to think that not only aren’t there that many economic benefits to the Internet, but whatever there is we basically squander by becoming Facebook and Youtube junkies.

It’s a shame that Bloomberg BusinessWeek decided to publish such a ridiculous article as its “Opening Remarks,” blaming the failure of the Internet for economic challenges that have been brewing for decades–with high-levels of debt, low levels of savings, hefty entitlement programs based on empty national trust funds, the global outsourcing of our manufacturing base, elevated political polarization in Washington, and various economic jolts based on runaway technology, real estate, and commodity bubbles.

It’s concerning that the author, someone with a masters in International Economics, wouldn’t address, let alone mention, any of these other critical factors affecting our national economy–just the Internet!

Kenny adds insult to injury in his diatribe, when he says that the Internet’s “biggest impact” is the delivery of “a form of entertainment more addictive than watching reruns of Friends.”

Maybe that’s the biggest impact for him, but I think most of us could no longer live seriously without the Internet–whether in how we keep in touch, share, collaborate, inform, innovate, compute, buy and sell, and even entertain (yes, were entitled to some downtime as well).

Maybe some would like to forget all the benefits of technology and send us back to the Stone Age before computing, but I have a feeling that not only would our economy be a lot worse than it is now, but so would we. 🙂

(Source Photo: Andy Blumenthal)

IT Departments, Here To Stay

IT Departments, Here To Stay

InformationWeek asks “Will IT Departments Disappear By 2020?”

This question comes from Forrester Research which sees the commoditization of IT as eroding the base for the traditional IT function and roles.

As we move to cloud computing–apps and infrastructure, as well as continue the trend for outsourcing IT such as help desk, desk support, and more what will be left for the CIO and his or her team to do?

The article answers this question with another major trend–that of consumerization–“differentiating value and visibility among consumers and employees.”

This is where IT can be highly strategic in serving those needs in the business that are truly unique and that enable them to be high performing and even outperform in the marketplace.

These ideas of commoditization and consumerization are anchored in Lawrence and Lorsch’s business studies of integration and differentiation of organizations, where organizations need to find their ideal state for integration of subsystems–such as through cloud computing, data center integration, and shared services–and for differentiation, where organizations differentiate themselves to address the unique value they bring to their customers.

So even with commoditization of IT and integration of services, the IT function in organizations will not be going away, no more so than HR or Finance functions went away with Enterprise Resource Planning (ERP) solutions.

The CIO and IT function will be able to leverage base enterprise services as commodities, but they will be expected more than ever to focus on and provide strategic solutions for their customers and give their organizations the real technology competitive advantage they are looking for and desperately need.

This is what distinguishes a real CIO–one that provides strategic leadership in being user-centric and coming up with customer-oriented solutions that are not available anyplace else–from those managers that only help to keep the IT lights on.

If you are not differentiating, you are not really engaging–so get out there with your customers and roll up your CIO sleeves. 😉

(Source Photo: Andy Blumenthal)