CIO Strategy

Session:
Top 5 trends for
2004
Dan Farber
Editor in Chief
ZDNet
 Viewer value
• Evaluating trends for CIOs
• Developing strategic plans
• Budgeting for 2004
 Meeting scenario
• CIO of mid-sized company
• Preparing budget for 2004
• Determine how to save and
spend
 Top trends for 2004
• Security
• Outsourcing
• Server & storage utilization
• Mobility
• Supply chain management
Consult the
Experts
David Thompson
Senior Research Analyst
META Group
Andy Efstathiou
Program Manager
The Yankee Group
Jean Bozman
Research Vice President
IDC
Chris Kozup
Program Director
META Group
Martin Reynolds
Research Fellow
Gartner
Top 5 trends for
2004:
Security
 Security priorities
• People
• Process
• Technology
 People
• Evaluate technology skills
• Develop communication skills
 Training goals
• Train all users
• Make employees aware of
security
• Individualize training to each
employee
 Who to train
• Focus staff for training
• Augment with outsourcing
 Process
• Drive efficiencies
• Save dollars
• Formalize structure
• Measure efficiencies
 Process
• User life cycle management
-Adding users to systems
-Managing rights in systems
-Removing users from systems
 Process
• Patch management
-Audit your systems
-Automate tools in development
-Mostly manual at this point
Dan Farber
Editor in Chief, ZDNet

David Thompson
Senior Research Analyst,
META Group
 Technology
• Prevention
• Detection
• Response
 Technology
• Detection tips
-Evaluate signatures
-Consider automated detection
prevention tools
-Develop a layered security
architecture
 Firewall
A system designed to
prevent unauthorized access
to or from a private network.
Top 5 trends for
2004:
Outsourcing
Andy Efstathiou
Program Manager
The Yankee Group
 Outsourcing trends
• Utility computing
• Business process
outsourcing
• Offshore outsourcing
 Utility computing
Pay-per-usage processing power
provided by a service organization
using its own computers and
facilities. Customers access the
computers via a private network or
over the internet and are charged
according to how much computing
time they use.
 Utility computing
• Companies installing utility
infrastructure internally
• Change in way companies
manage infrastructure
 Utility computing
• Increase in cost for
infrastructure components
• Decrease in services costs
Dan Farber
Editor in Chief, ZDNet

Andy Efstathiou
Program Manager,
The Yankee Group
 Business Process
Outsourcing (BPO)
BPO is a specific outsourcing
sector where an outside
company manages various
business tasks such as
procurement or accounts
payroll.
 BPO facts
• Heightened awareness
• Narrow segments using BPO
• Financial services leader in
BPO
 BPO facts
• Most industries not
outsourcing
• Steep learning curve
• New vendor offerings
• BPO provides automation
 BPO risk reward
• New tools for BPO
• Culture change needed
• Difficult transition
• Cost savings in automation
Offshore outsourcing
Hiring outside the country,
usually a consultant or
application service provider, to
transfer components or large
segments of an organization’s
internal IT structure, staff and
processes.
Offshore outsourcing
• Increase in work offshore
• Infrastructure requirements
growing
• Human capital resources
nearing capacity
Dan Farber
Editor in Chief, ZDNet

Andy Efstathiou
Program Manager,
The Yankee Group
 Coming up:
Server and Storage
Utilization
 Top 5 trends for
2004:
Server and
Storage Utilization
Jean Bozman
Research Vice President
IDC
Server utilization strategy
Add capacity in small
increments, using volume
servers (server priced
Less than $25,000--all chip
types and operating
systems)
Source: IDC, 2003
 Blade server market
• All major vendors
participating
• $100-million dollar market
• More standards will appear
• Big vendors working with
small vendors
 Blade servers

A single circuit board

populated with components
such as processors,
memory, and network
connections.
 Blade servers

Server blades are more cost-

efficient, smaller and
consume less power than
traditional box-based
servers.
Increasing utilization rates
• New software packages for
system management
• Work load balancing software
• System management software
in scalable servers
Server utilization strategy

Use virtualization techniques to

link multiple servers into a single
computing resource (using
parallel databases and clustering
software)

Source: IDC, 2003

 Utility computing
Pay-per-usage processing power
provided by a service organization
using its own computers and
facilities. Customers access the
computers via a private network or
over the internet and are charged
according to how much computing
time they use.
 Utility computing
• Early stages of utility
computing
• Meter and monitor use
• Automate the process to
minimize people cost
Jean Bozman
Research Vice President
IDC
Top 5 trends for
2004:
Mobility
Chris Kozup
Program Director
META Group
 Mobility trends
• Wi-Fi
• Security
• Migration
 Wi-Fi
• First steps
-Assign a policy
-Determine existing strategy
-Analyze business justification
 Wi-Fi
• Policy
-Understand standards
-Determine applications
-Evaluate best applications
 VoIP
Any technology providing
voice telephony services
over Internet Protocol
connections.
 Security
• Wireless issues
-Wireless standards roadmap set
-Determine available resources
-Evaluate complexity
Chris Kozup
Program Director
META Group
 Migration strategies
• Update legacy networks
• Update to 2.5G networks
• Migrate to CDMA, GPRS
 Migration obstacles
• Many different mobile
devices
• ROI stays elusive
• Too many standards
 Wireless adoption
• Incremental roll-out of new
devices
• PDAs getting voice
• Cell phones getting data
• All-in-one device isn’t
necessary
Top 5 trends for
2004:
Supply Chain
Management
Martin Reynolds
Research Fellow
Gartner
 What’s the CEO want?
• More cash
• Cut costs
• Needs flexibility
Supply chain management

• Getting rid of paperwork

• Measuring efficiency of the
supply chain
• Evaluate RFID techniques
 Getting rid of paper
• Make sure internal
paperwork is eliminated
• Get external partners to work
on systems
 XML
XML is the Extensible Markup
Language. It is designed to
improve the functionality of
the Web by providing more
flexible and adaptable
information identification.
Dan Farber
Editor in Chief, ZDNet

Martin Reynolds
Research Fellow, Gartner
 Measuring efficiency
• Supply chain ROI is huge
• Cash tied up in supply chain
is enormous
 Key technologies
• Business process is optimized
• Legacy systems are properly
integrated
 Measuring supply chain
• Shift away from pure gross
margin measurement
• Move to gross margin ROI
• Move items more swiftly
through the supply chain
 Measuring supply chain
• Helps drive profits
• Measure on per product basis
• Evaluate cash consumed by
product line
• Use data to determine optimal
pricing
 RFID
• Wal-Mart, Gillette using RFID
• 3 to 5 years before broad
adoption
• Anticipate infrastructure needs
for RFID
 RFID guidelines
• Prepare to capture lots of
data for each product
• Make sure infrastructure
supports increasing data
needs
Dan Farber
Editor in Chief, ZDNet

Martin Reynolds
Research Fellow, Gartner
Top 5 trends for
CIOs:
Summary