Unlocking value: Four lessons in cloud sourcing and consumption
Companies that are successful in sourcing and managing the consumption of cloud adopt a more dynamic, analytical, and demand-driven mindset.
By Abhi Bhatnagar, Will Forrest, Naufal Khan, and Abdallah Salami – Cloud adoption is no longer a question of “if” but of “how fast” and “to what extent.” Between 2015 and 2020, the revenue of the big-three public cloud providers (AWS, Microsoft Azure, and Google Cloud Platform) has quintupled, and they have more than tripled their capital-expenditures investment to meet increasing demand. And enterprises are ever more open to cloud platforms: more than 90 percent of enterprises reported using cloud technology in some way.
These trends reflect a world where enterprises increasingly “consume” infrastructure rather than own it. The benefits of this model are plentiful. Cloud adopters are attracted by the promise of flexible infrastructure capacity, rapid capacity deployment, and faster time to market for digital products. The COVID-19 crisis has accentuated the need for speed and agility, making these benefits even more important. From an infrastructure-economics perspective, perhaps the most attractive innovation of cloud is the ability to tailor the consumption of infrastructure to the needs of the organization. This promises greater economic flexibility by transforming underutilized capital expenditures into optimally allocated operations expenditures.
While this concept is attractive in theory, many enterprises are facing challenges in capturing the value in reality. Enterprises estimate that around 30 percent of their cloud spend is wasted. Furthermore, around 80 percent of enterprises consider managing cloud spend a challenge. Thus, even though more than 70 percent of enterprises cite optimizing cloud spend as a major goal, realizing value remains elusive.
In our experience, a major driver of value capture is transforming the approach to sourcing and consuming cloud. Enterprises that approach this task with a traditional sourcing and infrastructure-consumption mindset are likely to be surprised by the bill. The flexibility to consume cloud as needed and cost effectively places responsibility on enterprises to maintain a real-time view of their needs and continuously make deliberate decisions on how best to adjust consumption. more>
Posted in Broadband, Business, Economic development, Economy, Education, History, How to, Net, Regulations, Science, Technology, Telecom industry
Tagged Business improvement, cloudcomputing, Internet, McKinsey, Skills, Supply chain, Technology
What are the current challenges and opportunities for today’s submarine networks? What’s next? Find out what will be covered in our upcoming webinar with TeleGeography.
Current state of the global submarine network
By Brian Lavallée – Internet traffic patterns have shifted, and volumes have surged, as the telecom industry addresses the “new normal” where people are increasingly working, learning, and playing from home. Although the global network infrastructure has bent in certain parts of the network, it hasn’t broken. This is a testament to how reliability and availability is in the DNA of our industry and is more important than ever before.
According to TeleGeography, global Internet bandwidth rose last year by 35%, which was a major increase over the previous year’s 26% growth. This increase was driven largely in response to the global pandemic and represents the largest single-year increase since 2013. It also raised the most recent four-year CAGR to 29%. Being able to connect with each other, and to machines, has consistently increased in importance, but in 2020, this took on a whole new level of importance related to our social and economic well-being.
The pace of technology innovation in the telecom industry has accelerated over the past decade in response to growing demands related to our increasing affinity for always-on broadband connectivity. Even the once closed and proprietary world of submarine networks has evolved with the advent of Open Cables, programmable coherent modems, ROADMs, active branching units, C+L band, and more recently, open APIs, intelligent data-driven automation, and analytics. Together, these amazing technologies address challenges related to network scalability, availability, and flexibility during “normal” times. They’re even more important today as we’re mandated to increasingly work and play remotely. more>
Posted in Broadband, Business, Communication industry, Economic development, Economy, Education, History, How to, Net, Regulations, Science, Technology, Telecom industry
Tagged Broadband, Business improvement, Ciena, Fiber optics, Internet, Skills, submarine networks
By Michael D. Allen – My first job after leaving school was that of an associate engineer. This meant that I was half technician and half engineer, and I would design something and then build and test it. Because of this position, I frequently got some odd and interesting jobs.
One day a cardboard box showed up on my bench with a test box, a bunch of blueprints, a test procedure, and an “angle of attack” aircraft instrument. Management told me to grab an inspector, perform a functional test on the instrument, and buy off on all of the steps. This was the first aircraft instrument that anyone had seen in our lab area.
There were no program identifiers on the blueprints, the test box, or the instrument itself. I had no way to compare the numbers on the blueprints to any program. If anyone knew what the associated program was, he wasn’t telling.
The instrument was connected to the test box and turned on. A given DC input was supposed to drive the needle to a certain location on the dial face. This worked to a certain extent; the needle would drive to the commanded location but overshoot, back up, and overshoot again. The needle would be a blur, oscillating around the commanded location.
The test box was checked and appeared to be working correctly. Because the instrument was not working correctly, I ask the inspector if it would be OK to open it up to see what was inside, and he agreed. The instrument had a can extending several inches beyond the back of the dial face. The can had a sealed connector and a purge port to refill it with nitrogen. The inside of the instrument looked like several pocket watches stacked together. more>
Posted in Business, Economy, Education, History, How to, Product, Technology
Tagged Business improvement, Jobs, Skills, Super regions, Technology, Test & measurement
Reimagining the auto industry’s future: It’s now or never
Disruptions in the auto industry will result in billions lost, with recovery years away. Yet companies that reimagine their operations will perform best in the next normal.
By Thomas Hofstätter, Melanie Krawina, Bernhard Mühlreiter, Stefan Pöhler, and Andreas Tschiesner – Electric mobility, driverless cars, automated factories, and ridesharing—these are just a few of the major disruptions the auto industry faced even before the COVID-19 crisis. Now with travel deeply curtailed by the pandemic, and in the midst of worldwide factory closures, slumping car sales, and massive layoffs, it’s natural to wonder what the “next normal” for the auto sector will look like. Over the past few months, we’ve seen the first indicators of this automotive future becoming visible, with the biggest industry changes yet to come.
Many of the recent developments raise concern. For instance, the COVID-19 crisis has compelled about 95 percent of all German automotive-related companies to put their workforces on short-term work during the shutdown, a scheme whereby employees are temporarily laid off and receive a substantial amount of their pay through the government. Globally, the repercussions of the COVID-19 crisis are immense and unprecedented. In fact, many auto-retail stores have remained closed for a month or more. We estimate that the top 20 OEMs in the global auto sector will see profits decline by approximately $100 billion in 2020, a roughly six-percentage-point decrease from just two years ago. It might take years to recover from this plunge in profitability.
At the operational level, the pandemic has accelerated developments in the automotive industry that began several years ago. Many of these changes are largely positive, such as the growth of online traffic and the greater willingness of OEMs to cooperate with partners—automotive and otherwise—to address challenges. Others, however, can have negative effects, such as the tendency to focus on core activities, rather than exploring new areas. While OEMs may now be concentrating on the core to keep the lights on, the failure to investigate other opportunities could hurt them long term.
As they navigate this crisis, automotive leaders may gain an advantage by reimagining their organizational structures and operations. Five moves can help them during this process: radically focusing on digital channels, shifting to recurring revenue streams, optimizing asset deployment, embracing zero-based budgeting, and building a resilient supply chain. One guiding principle—the need to establish a strong decision-making cadence—will also help. We believe that the window of opportunity for making these changes will permanently close in a few months—and that means the time to act is now or never. more>
Posted in Business, Economic development, Economy, Education, Energy & emissions, Healthcare, History, How to, Nature, Net, Regulations, Science, Technology, Transportation
Tagged Business improvement, Capital, Government, Health, Internet, Jobs, McKinsey, Skills, Super regions, Technology