Enterprise Architecture

The Latest

2 July 2021: Amazon released a video summary and report on its sustainability targets and performance. The key take outs are that Amazon is the largest corporate purchaser of renewable energy, with a shift of 42% from non-renewable within one year. The underlying message here is sustainability is no longer a political issue for the corporate sector, but a fiscal imperative.  

Why it’s Important

As outlined in previous IBRS research, all of the hyperscale cloud vendors - Google, AWS, Microsoft, Oracle and Alibaba - have well-documented strategies to reduce their reliance on carbon-based fuel sources. All position sustainability as a competitive advantage, not just against each other, but against on-premises data centres. 

It is likely that cloud vendors will be positioning their sustainability credentials in both business and general news channels, looking to position their brand as a leader on climate action. From a cynical view, this messaging will play well with the existing news cycle of the impact of climate change, from the disastrous bushfires to killer heatwaves in North America, to unseasonable storms and record-setting weather events. From a more optimistic perspective, these vendors will drive genuine solutions to reduce the carbon footprint associated with providing computing service.

Therefore, as cloud vendors set or meet zero carbon energy targets, the issue of sustainable ICT is set to re-emerge as a priority for CIOs and data centre architects.  

IBRS and BIAP (via the IT Leaders Summits) have tracked CIOs interest in the topic of green IT. An IBRS study in 2008 had sustainable ICT being rated as ‘very important’ for 25% of CIOs and ‘somewhat important’ for 59% of CIOs. Since then, interest in sustainable computing has plummeted year-on-year. The IBRS / BIAP data for 2016 had 6% of CIOs rating sustainable ICT as a priority. By 2020, less than 0.5% of CIOs rated sustainable ICT as a priority.

IBRS expects this trend to reverse sharply in 2024-2025 as the leading cloud vendors continue to demonstrate both environmental and financial benefits associated with renewable energy.

Who’s impacted

  • CIO
  • CFO
  • Data centre leads
  • Infrastructure architects

What’s Next?

By 2025 the leading cloud vendors will leverage their position in renewable energy consumption as a selling point for policy-makers to mandate cloud computing and place unattainable goals for architects of on-premises data centres.

Rather than waiting, CIOs should review previous strategies for sustainable ICT, with the expectation that these will need to be updated and reinstated within the next 3-5 years.

Related IBRS Advisory

  1. The Status of Green IT in Australian and New Zealand (2008)
  2. Building your Green IT strategy
  3. Think green IT: Think saving money
  4. Forget Green; think sustainable computing in 2009

The Latest

15 February 2021: IBM has unveiled the new Power Private Cloud (PPC) Rack solution which offers converged infrastructure with a focus on migrating legacy on-premises apps running on its POWER9/AIX systems to a Cloud-like infrastructure.

What’s Included

The PPC is effectively pre-built, pre-configured Cloud-like infrastructure for running containers. 

The PPC Rack consists of three POWER System S922 servers with 20 CPU cores, 256GB of RAM, and 3.2TB of local storage, the FlashSystem 5200, with a minimum of 9.6TB,  and twin SAN24B-6 switches with 24 Fibre Channel ports. The solution is pre-installed with Red Hat Enterprise Linux 8, IBM PowerVM Enterprise Edition, IBM Cloud PowerVC Manager, Red Hat OpenShift Container Platform, and Red Hat OpenShift OpenShift Container Storage (OCS).

Why it’s Important

IBM’s new offer is effectively a container-centric, Cloud-like hyperconverged infrastructure (HCI) similar to that offered by HPE, Dell, Lenovo, VMware, and Nutanix. More importantly, IBM is offering this at an easy target - its existing customers with legacy POWER9/AIX/i solutions looking to migrate to a Cloud-like environment with OpenStack.

For IBM clients, it presents a low-risk opportunity for extending the life of legacy applications, while modernising the environment. 

Who’s impacted

  • CIO
  • Development team leads
  • Business analysts

What’s Next?

Organisations moving legacy solutions into hyperscale Cloud infrastructure (IaaS) to meet the objectives of ‘Cloud first’ strategies have found that the proposed cost savings are not always present, and operational risks due to skills shortages can emerge. The rise of next-generation hyperconverged offering Cloud-like management is a response to this challenge. 

IBM’s new offering shows how this grandfather of the industry, with a massive backlog of legacy solutions, will seek to re-secure its client’s investment in solutions, while smoothing the transition to Cloud-like architectures. 

Related IBRS Advisory

  1. VENDORiQ: Woolworths Selects Dell Technologies Cloud to deploy hybrid Cloud strategy
  2. Running IT-as-a-Service Part 49: The case for hybrid Cloud migration
  3. Running IT-as-a-Service Part 50: Hybrid Cloud migration – Where is the money saving?

The Latest

In late January, Google presented a detailed report entitled “Operating the cleanest cloud in the industry” to analysts. The private briefing detailed Google’s current status as a ‘net zero-carbon emitter’ (meaning it offsets any carbon emissions from its current operations with other programs). It also outlined its plans to be running entirely on carbon-free energy by 2030. 

Why it’s Important

All of the hyperscale Cloud vendors - Google, AWS, Microsoft, Oracle and Alibaba - have well-documented strategies to reduce their reliance on carbon-based fuel sources. Their strategies are all similar and simple: reduce energy consumption (with accompanying higher computing density) and development of renewable energy sources as part of data centre planning. Their efforts in this area are not just for environmental reasons, there are significant cost benefits in the immediate term to being free of fossil energy supply chains. All also see competitive advantages, not just against each other, but against on-premises data centres.

As these Cloud vendors announce not only net zero-carbon emission targets as being met, but zero carbon energy targets, the issue of sustainable ICT will once again start to emerge as a serial consideration for CIOs and data centre architects.  

IBRS and BIAP (via the IT Leaders Summits) have tracked CIOs interests in the topic of green IT. An IBRS study in 2008 had sustainable ICT being rated as “very important” for 25% of CIOs and “somewhat important” for 59% of CIOs. Since then, interest in sustainable computing has plummeted year-on-year. The IBRS / BIAP data for 2016 had 6% of CIOs rating sustainable ICT as a priority. By 2020, less than 0.5% of CIOs rated sustainable ICT as a priority.

With the growing call for action on climate change and the economic advantages the hyperscale Cloud vendors will have by moving to carbon-free energy sources, the pressure to provide sustainable ICT metrics will re-emerge.

Who’s impacted

  • CIO
  • CFO
  • Data centre leads
  • Infrastructure architects

What’s Next?

CIOs and infrastructure leads for organisations running on-premises services / data centres should expect a swing back to discussions of sustainability. However, unlike the 2000’s, the benchmarks for sustainability will be set by the hyperscale Cloud providers. By 2025, all Cloud vendors will start using their leadership in sustainable ICT as a selling point for policy-makers to mandate Cloud computing, or possibly even place unattainable goals for architects of on-premises data centres.

Rather than waiting, CIOs should review previous strategies for sustainable ICT, with the expectation that these will need to be updated and reinstated within the next 3-5 years.

Related IBRS Advisory

  1. The Status of Green IT in Australian and New Zealand (2008)
  2. Building your Green IT strategy
  3. Think green IT: Think saving money
  4. Forget Green; think sustainable computing in 2009

Conclusion: Agility to respond to change has become essential. Compared with previous years, CIOs are expected to produce results over longer periods of time, now expectations have become much higher. Stakeholders are expecting results as soon as possible. With the trend geared towards an increase in technology dependence, the pressure of delivering results has therefore increased for CIOs and IT leaders.

Part of this new set of expectations is improved efficiency and productivity, which in most cases requires a thorough evaluation of business processes to garner potential inefficiencies. One of the primary tools organisations have at their disposal is the enterprise resource planning (ERP) systems. Eventually, it all boils down to whether or not the migration to S/4 HANA can be justified in terms of value-add-services. Implementation effort and run costs are only a part of the business case, not the whole.

Conclusion: Many organisations have integrated enterprise architecture (EA) into the business processes, whilst many have not. To some, it is a religious argument as to why the ICT group even needs to have people with ‘architect’ in their name; for others, the EA group is the watchdog of the system, ensuring both new capabilities and changes to existing capabilities will be fit for purpose.

Like most things in business, the cost versus benefit analysis to justify why any activity is a priority is essential before committing effort and resources to it. EA should be no different. Organisations should complete a business case assessment to justify why EA is necessary for their business model, and what form it should take.

In doing so, both business and ICT will jointly have a better understanding of the value EA brings to the enterprise, be able to manage expectations on what EA can deliver and judge its effectiveness.

 IBRS iQ is a database of Client inquiries and is designed to get you talking to our Advisors about these topics in the context of your organisation in order to provide tailored advice for your needs.
 

Conclusion:

As-a-Service machine learning (ML) is increasingly affordable, easily accessible and with the introduction of self-learning capabilities that automatically build and test multiple models, able to be leveraged by non-specialists.

As more data moves into Cloud-based storage – either as part of migrating core systems to the Cloud or the use of Cloud data lakes/data warehouses – the use of ML as-a-Service (MLaaS) will grow sharply.

This paper summarises options from four leading Cloud MLaaS providers: IBM, Microsoft, Google and Amazon.