| The motor car, mobile phones, personal computers, | | | | Market drivers 87 |
| and so on, are all examples of disruptive technologies. | | | | Carbon footprint 87 |
| There are numerous examples throughout modern | | | | Overcapacity and IT consolidation 87 |
| business history of disruptive technologies appearing, | | | | IT agility 89 |
| apparently from nowhere, to threaten and ultimately | | | | IT management and staff costs 89 |
| displace existing technologies and the industries and | | | | Business continuity and agility 90 |
| vendors that grew up around them - such as the | | | | Inhibitors 91 |
| mainframe industry, communications and storage. | | | | Operational and business barriers 91 |
| But disruption is rarely a consequence of technology | | | | Automation and management challenges 92 |
| innovation alone, rather a reflection of how existing | | | | Lack of interoperability 92 |
| organizations and markets deal with it. While | | | | Challenges in maximizing benefits 93 |
| disruptive innovation can be seen as a threat, it is | | | | Vendor landscape 94 |
| also an opportunity, and indeed a necessity in the | | | | Open source versus proprietary 95 |
| rapidly evolving world of IT and business technology. | | | | VMware 97 |
| Modern history suggests that accurate prediction of | | | | Microsoft 98 |
| disruptive technologies is challenging, however a look | | | | XenSource 98 |
| at past examples can reveal important characteristics | | | | Citrix 99 |
| and similarities between disruptive technologies. This | | | | Impact versus adoption assessment 100 |
| report aims to provide insight into the patterns and | | | | Impact 100 |
| characteristics of potentially disruptive technologies | | | | Adoption 104 |
| and innovation trends, and provide ways of assessing | | | | Impact versus adoption assessment chart 107 |
| vulnerability to disruption. As a result, organizations | | | | Conclusions 108 |
| can use this insight to understood how best to avoid | | | | Chapter 5 Cloud computing 112 |
| the threat of disruption. | | | | Summary 112 |
| Key features of this report | | | | Introduction 113 |
| -A survey of CIOs in a variety of vertical industries | | | | Why is it potentially disruptive? 113 |
| and geographies provides insight into how innovation | | | | Market context 115 |
| is managed, and where there is current vulnerability | | | | Market opportunity 117 |
| to disruption. | | | | Market drivers 119 |
| -A proprietary assessment model for gaining insight | | | | Services-based approach to IT 119 |
| into how successful a potentially disruptive | | | | ‘Elasticity' 121 |
| technology could be. | | | | Variable costs and usage-based models 121 |
| -Offers an assessment model for understanding and | | | | Driving down costs in enterprise IT 121 |
| avoiding vulnerability to disruptive technologies. | | | | New IT economies 122 |
| -CIO survey reveals where there is most demand for | | | | Inhibitors 123 |
| improvements in technology performance and | | | | Lack of trust 123 |
| efficiency. | | | | Service adoption and management challenges 124 |
| -Analysis of 4 new technologies showing which | | | | Matching optimal delivery models 124 |
| technologies could be potentially disruptive. | | | | Formulating the business case 124 |
| Scope of this reporta) Gain insight into where there | | | | Procurement processes 125 |
| are current vulnerabilities to technological disruption.b) | | | | Migration challenges 125 |
| Understand how to identify and characterise | | | | Vendor landscape 126 |
| potentially disruptive technologies.c) Find out where | | | | Hardware vendors 126 |
| CIOs believe there is the greatest need for | | | | Portable devices 127 |
| technological improvement.d) Gain access to a | | | | Cloud infrastructure services providers 128 |
| disruption assessment model, which provides a | | | | Cloud platforms 130 |
| method for assessing vulnerability to disruption.e) | | | | SaaS-backed platforms 130 |
| Understand which industries and organisations are | | | | Stack platforms 131 |
| potentially vulnerable to technological disruption. | | | | Stand-alone platforms 132 |
| Key findings from this report | | | | SaaS applications developers 132 |
| Disruptions not only displace technologies, they also | | | | Impact versus adoption assessment 134 |
| fundamentally shift the balance of power in entire | | | | Impact 134 |
| industries and, often, spell the end for established | | | | Adoption 137 |
| market leading vendors. | | | | Impact versus adoption assessment chart 139 |
| There is nothing disruptive per se about any new | | | | Conclusions 140 |
| technology; rather disruption comes from the manner | | | | Chapter 6 Open source communications devices 142 |
| in which the industry leaders and players manage it. | | | | Summary 142 |
| The drivers and inhibitors of disruption can be broadly | | | | Introduction 143 |
| divided into two factors: customer need (driver), such | | | | Why is it potentially disruptive? 144 |
| as greater performance, lower cost, scalability, | | | | Market context 145 |
| portability etc. and; barriers to entry (inhibitor), which | | | | Market opportunity 148 |
| can include unproven ROI, lack of knowledge, cost of | | | | Market drivers 151 |
| switchover, and so on. | | | | Market inhibitors 152 |
| Cloud computing is very likely to become a ubiquitous | | | | Vendor landscape 153 |
| computing model once the challenges are dealt with, | | | | Impact versus adoption assessment 158 |
| and once the issue of trust is overcome. | | | | Impact 158 |
| Virtualization's promise of significantly reduced energy | | | | Adoption 160 |
| consumption costs and hardware estate costs, | | | | Impact versus adoption assessment chart 162 |
| combined with the IT and business agility benefits it | | | | Conclusions 163 |
| offers, and relative ease and cost of integration and | | | | Chapter 7 Index 165 |
| deployment means that it is very likely to see | | | | List of Figures |
| massive uptake, and become an ubiquitous | | | | Figure 2.1: The evolution of a disruptive technology 27 |
| technology within 10 years. | | | | Figure 2.2: Interaction of intrinsic and extrinsic factors |
| Key questions answereda) What characteristics are | | | | for disruption 34 |
| common to disruptive technologies?b) How can | | | | Figure 2.3: Disruptive technology and business value |
| organizations assess their vulnerability to disruption?c) | | | | 37 |
| Will open source communication devices threaten the | | | | Figure 2.4: Business value applied to current |
| incumbent market leaders for mobile application | | | | innovations 39 |
| development?d) What impact will the adoption of | | | | Figure 2.5: Impact versus adoption – the |
| cloud computing as an ubiquitous IT delivery system | | | | progression of disruptive innovation 40 |
| have on existing market leaders?e) Will NAND Flash | | | | Figure 2.6: Areas of business value important to |
| memory replace DRAM and disk in the data center? | | | | organizations – CIO respondent average ratings |
| | | | | 46 |
| | | | | Figure 2.7: The impact of innovations on enterprises in |
| Table of Contents : | | | | the next three years – CIO respondent average |
| Table of Contents | | | | ratings 47 |
| Disruptive Technology in the Enterprise | | | | Figure 2.8: Business areas where there is most room |
| Executive summary 10 | | | | for improvement? (% CIO respondents) 48 |
| Strategies for assessing disruptive technology 10 | | | | Figure 2.9: Technologies that have most transformed |
| NAND Flash storage 11 | | | | organizations in the last two years – CIO |
| Infrastructure virtualization 12 | | | | respondent average ratings 50 |
| Cloud computing 13 | | | | Figure 2.10: How organizations monitor upcoming |
| Open source communications devices 14 | | | | technologies – CIO respondent average ratings 51 |
| Chapter 1 Introduction and scope of the report 16 | | | | Figure 2.11: Does your organization have a future |
| Introduction 16 | | | | technology roadmap in place? (% CIO respondents) |
| Who is this report for? 17 | | | | 52 |
| Research methodology 17 | | | | Figure 2.12: How organizations test upcoming / |
| Definitions 17 | | | | innovative technologies before purchase - % CIO |
| Disruptive technology 17 | | | | respondents 53 |
| NAND Flash storage 17 | | | | Figure 3.13: NAND Flash impact score summary 71 |
| Infrastructure virtualization 18 | | | | Figure 3.14: NAND Flash adoption score summary 73 |
| Cloud computing 18 | | | | Figure 3.15: Impact versus adoption final assessment |
| Open source communications devices 18 | | | | chart – NAND flash storage 75 |
| Chapter 2 Strategies for assessing disruptive | | | | Figure 4.16: Data center overcapacity 88 |
| technology 20 | | | | Figure 4.17: The most pressing needs for |
| Summary 20 | | | | improvement in the IT department - % CIO |
| Introduction 21 | | | | respondents 100 |
| What is a disruptive technology? 21 | | | | Figure 4.18: Infrastructure virtualization impact score |
| Examples of disruptive technologies 22 | | | | summary 101 |
| Defining disruptive patterns 23 | | | | Figure 4.19: Infrastructure virtualization adoption score |
| The Innovator's Dilemma 23 | | | | summary 104 |
| The evolution of a disruptive technology 26 | | | | Figure 4.20: Impact versus adoption final assessment |
| Characteristics of a disruptive technology 27 | | | | chart – infrastructure virtualization 107 |
| Drivers and inhibitors of disruption 31 | | | | Figure 5.21: Cloud computing overlaps with other |
| Economic, regulatory and social factors 33 | | | | technology terms and trends 115 |
| Intrinsic and extrinsic factors 33 | | | | Figure 5.22: Cloud computing as an IT consumption |
| Innovation and business value 35 | | | | model 116 |
| Types of innovation 35 | | | | Figure 5.23: Cloud computing – the competitive |
| Business value through disruption 36 | | | | landscape 118 |
| Strategies for predicting disruption 40 | | | | Figure 5.24: The gap between IT capacity and IT |
| Impact versus adoption 40 | | | | demand 120 |
| Peripheral, non-disruptive innovation 41 | | | | Figure 5.25: Cloud computing impact score summary |
| Immature disruptive innovation 41 | | | | 134 |
| Maturing disruptive technology 42 | | | | Figure 5.26: Cloud computing adoption score summary |
| Core, non-disruptive innovation 42 | | | | 137 |
| Disruption assessment model 43 | | | | Figure 5.27: Impact versus adoption final assessment |
| 1. Impact 43 | | | | chart – cloud computing 139 |
| 2. Adoption 44 | | | | Figure 6.28: Global smartphone annual shipments |
| Assessing the current potential for disruption 45 | | | | (000s), 2008-2014 150 |
| Conclusions 54 | | | | Figure 6.29: Open source communications devices |
| Chapter 3 NAND Flash storage 56 | | | | impact score summary 158 |
| Summary 56 | | | | Figure 6.30: Open source communications adoption |
| Introduction 57 | | | | score summary 160 |
| Why is it potentially disruptive? 58 | | | | Figure 6.31: Impact versus adoption final assessment |
| Market context 59 | | | | chart – open source communication devices 162 |
| Market opportunity 61 | | | | List of Tables |
| Portable devices 61 | | | | Table 2.1: Examples of disruptive technologies 22 |
| Data center 62 | | | | Table 2.2: Characteristics of an early-stage disruptive |
| Drivers and inhibitors 64 | | | | technology 28 |
| Drivers 64 | | | | Table 2.3: Example of drivers and inhibitors of |
| Inhibitors 65 | | | | disruption 32 |
| Vendor landscape 67 | | | | Table 2.4: Intrinsic and extrinsic factors for disruptive |
| Impact versus adoption assessment 71 | | | | technologies 34 |
| Impact 71 | | | | Table 2.5: Different types of innovation 35 |
| Adoption 73 | | | | Table 2.6: Criteria for measuring disruptiveness of |
| Impact versus adoption assessment chart 75 | | | | innovations 41 |
| Conclusions 76 | | | | Table 2.7: Business Insights survey results – |
| Chapter 4 Infrastructure virtualization 80 | | | | where is there most room for improvement in |
| Summary 80 | | | | business areas? (% CIO respondents) 49 |
| Introduction 81 | | | | Table 4.8: Cost savings possible through server |
| Why virtualization is potentially disruptive 82 | | | | consolidation 84 |
| Market context 83 | | | | Table 6. |
| Market opportunity 85 | | | | |