April 29, 2012
Dispatch from Under the Radar 2012 – Consumerization of IT

The show had a good line up of companies  once again and one of my investments, AppFog, won the People Choice which is the “hot company” online vote by people attending or not.   The keynote from Yobie Benjamin, Global CTO from Citigroup, had some really good information and its worth watching it on the streaming site but as a startup I would be discouraged if I was trying to sell to Citi.  His pre-req for any conversation is whether or not you will be “around” and he defined that by having a big slug of money of the balance sheet.  It’s a fair statement from the CTO of Citigroup but flies in the face of the show theme.  The Consumerization of IT is driven by IT Professionals in the workplace doing and delivering the kinds of things they do as consumers.  Full stop. I’m not sure anyone called the CFO at Dropbox and asked about the balance sheet before throwing a few photos in there.  I’m not  saying that Yobie is wrong for his business but it’s not consistent with the theme of the show and the movement around Consumerization.  That said, I really liked his talk and I’m super happy he made the time to be there.

The presentation format is pretty tight. Each company gets six minutes plus QA time from the judges.   I thought Peter Yared from CBS Interactive was the best judge in terms of the thoughtfulness of questions.  All of the judges did well and it’s great of them to take time from their busy schedules to do these events.  I do judging and panels as well and to do it right takes effort. You can’t just show up.

One thing that I believe was missing was requiring each presentation to open by telling the audience why the company fits into the Consumerization theme.   Minimally the moderator for each section of the conference could have explained why the category of companies in the section fit into the theme.  I don’t think that just assuming because an IT Pro can use a product by swiping a credit card is enough.  

Strikingly absent from the program were any companies doing hybrid cloud with real management beyond the core infrastructure companies (the infrastructure section) which were well represented by Cloud Scaling,  Piston, and Zadara Storage.   These types of companies need to tell the audience that they enable the central IT folks to deliver IaaS to their business units that “feel” like AWS and/or deliver AWS-like benefits while still offering flexibility of on premises or off plus internal controls.  None of them really made the pointed statement but I do think good listeners might have got the message.  Then again they only get six minutesand they did good jobs of representing themselves in that short time.

The section on PaaS was well done and informative. The companies in the section were pretty mature and included Apparbor, Cloud Bees,  Cabana, and AppFog. In the past, if I had to describe why PaaS fits into the Consumerization theme, I’d have to stretch a bit. But this show got me to thinking about it. I think Lucas Carlson from AppFog had the seed of it though.  He talked about the elimination of “ops” for the developer.  That is, the developer focuses on code and not operating servers and keeping things up to date.  So in a sense,  PaaS in general enables a developer to have an experience that  is akin to the simple store and retrieve of files or photos (like Dropbox). In the PaaS context,  I drop my code in the PaaS and away it goes. The Dropbox user doesn’t worry about load balancing the server her files are stored on or backing them up or doing patches.  The developer using a PaaS gets that experience plus a whole lot more.   You don’t need to work at a big company that has a devops staff that builds and maintains the internet facing platform. The PaaS provider does it. So software development orgs of all sizes can get the same benefit.  This is clearly part of the theme. None of the presenting companies made the explicit point and they should!  And yes they all pay as they go so its consumer like of course!

It is still early days for Consumerization of IT to be woven into company messaging. The smarter companies will not just market to it but believe in it and build for it. They will be rewarded for their efforts as businesses of all sizes will be able to adopt their technology in ways similar to the ways IT Pros and end users do in their daily lives.  IT Pros will bring in tech from small companies that innovate fast, enable low cost of adoption, and deliver a level of simplicity in line with the stuff they use at home.  The central IT folks will adopt the more comprehensive solutions that enable their own organizations to deliver a cloud-like experience to their business users.  That’s what this trend is about. It’s way more than pay as you go.

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