Wednesday, November 14, 2007

For future of enterprise computing, watch consumers

According to Intel’s Paul Otellini, speaking at Oracle’s OpenWorld event, the future of enterprise computing will draw from what is being developed on the consumer side. "Consumers today are the No. 1 users of semiconductors; they passed over IT and government in 2004. That's a big change; prior to that period, most people developing silicon in the industry were focused on the main market--the enterprise and IT. Today, most of us are focused on the consumer market as drivers,” Otellini said.

Not so long ago, if you were technology-oriented and wanted to do something innovative and cool that would make you rich, you wrote a new piece of enterprise software. Or you came up with a new design for a server. Or you figured out a way to link businesspeople with their offices while on the road. Of course, there are always exceptions, but enterprise computing, most believed, was where the real innovation occurred. Those innovations paved the way for the computing industry as we know it today.

However, keeping an enterprise's IT operation up and running is rapidly turning into the technology equivalent of plumbing, or maybe electricity: extremely vital pieces of infrastructure that no longer attract the type of young engineering enthusiasts who built Silicon Valley. Those people are now building Web 2.0 applications. They're designing social-networking communities or virtual worlds, not some new piece of enterprise-resource planning software that's going to set the world afire.

Consumer technology and the Web are going in the opposite direction. Sure, Google, Microsoft and Yahoo are snapping up anything and everything that seems remotely interesting. But consolidation? Hardly. For every 10 companies gobbled by Google, a new powerhouse like Facebook starts forming its own little tech ecosystem, with start-ups eagerly feeding into it. You don't see that sort of thing in enterprise computing much these days.

The major trends in enterprise computing are things like consolidation and virtualization: how to do more with the stuff you've already got, or how to pare down the electrical costs of running a modern data center. Overall enterprise technology spending is basically flat as businesses work with the assets they already have.

Look, enterprise computing isn't going anywhere. Billions of dollars will continue to be spent on software needed to run increasingly complex businesses and the hardware that will keep it snappy. And the consumer appetite for technology could start to diminish if people have to start choosing between a new PC or HDTV and paying the mortgage or filling up the car.

But just as technology transformed the way the world does business, it's about to have the same effect on individuals, who are mostly still running desktop PCs, calling friends and family on a landline, and driving a car with an analog set of gauges. This is where the talent and the dollars are flocking, improving how we as individuals interact with technology. Not building CRM modules for the midmarket.
Source: CNET

More information can be found at http://www.supportindustry.com/

No comments: