Enterprise Irregulars: Tech Bubble? Full Stack Goes Beyond $3.7 Trillion IT Budget

InsightaaS: In this post from the excellent Enterprise Irregulars blog site, Anshu Sharma, a former executive with both salesforce.com and Oracle, has posted on a theme that we expect will become a common refrain in the months and years to come: the notion that IT spending and use will expand through migration to a "full stack" in which IT displaces traditional business processes, and affects established industries. A post by CSC's David Moschella ("The Pursuit of the Dual Disruption - Silicon Valley's Unbounded Ambitions"), highlighted on Across the Net in March, provided a detailed perspective on how some of these changes might occur, closing with the notion that suppliers will increasingly view CIOs and their organizations ""as either a valued customer or potential lunch." In this post, Sharma takes a wider-lens view, starting with an assumed $3.6-$3.7 trillion in global IT spend, and following changes down three paths: the migration to SaaS and cloud from traditional platform infrastructure, the integration of mobile technology into traditional work processes, and the "full stack" which sees IT replacing traditional business structures: "software Eating Hotels, Taxis, Money Transfer, Credit Cards..."

I want to convince you that this time it really is different.

Its fundamentally different because the silicon valley is bursting out of tech.

In the earlier generational shifts of computing paradigms from mainframes to client server and then from client server to internet, we were primarily still constrained by the IT budget.Gartner predicts IT spend to grow a meager 3% this year which is still much better than the historic growth rates. So, clearly we can’t create 100s of billion in new value within this constraint. Or can we?

We have 3 reasons why Silicon Valley is going to be bigger than ever:
  • $3.7 Trillion IT Budget moving to SaaS & Cloud: The $3 Trillion in IT spend today is dominated by last generation of on-premise, desktop era. As what we do increasingly happens in SaaS apps running on mobile phones and data center gets virtualized — we will shift 100s of billion in spend from old to new architecture.
  • Mobile: Mobile apps not only enable us to rebuild old CRM and HR apps into new apps, they fundamentally increase the number of users that can now access technology. The security guard in our office building now walks around with a super cheap Android phone clicking pictures every day to document his work...

Read the entire post: http://www.enterpriseirregulars.com/74434/tech-bubble-full-stack-goes-beyond-3-7-trillion-budget/

 

CSC: The Pursuit of the Dual Disruption – Silicon Valley’s Unbounded Ambitions

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