IT department 2.0

IT department 2.0: How do they handle Cloud, Mobile, Social and other empowered technologies and business demands?

Forrester empowered IT agenda,

IT needs to adapt to a new ‘empowered’ era, where customers have more information available to them than ever before, and employees are bringing new technologies into the business first.

Diversity is generally bad for productivity. There has to be a constant evaluation of technology. IT has to be pragmatic about the trade-off between diversity and uniformity.

Accenture believes that a new type of IT department will evolve, to become the "IT department 2.0".

You're going to have business-oriented IT people able to deliver services within hours rather than years, and managing many services. The skills they learned in doing outsourcing will be very applicable to cloud service management.

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TATA's cloud Services in India for SMB

TATA’s iON SMB Cloud –

Easy way to convert from hosting and software services provider to Cloud Services Provider.

An user of cloud computing service does not have to purchase hardware or software for his IT related need but is provided by the service provider and is charged factional amount of the cost for the using hardware or the software on pay per use basis.

TATA’s iON service is available on pay-per-use business model. The service offers business IT solutions like HR, finance, inventory, domain-based ERP solutions as well as basic applications like email, document management and webhosting services.

iON is pre-configured with hardware, network and software bundled together and backed by business, technical and consulting services. Current industry solutions available are for manufacturing, textiles, education, retail, quick service restaurants, wellness and professional services industry.

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After HP now its IBM and Dell - More investments in Cloud

Dell has announced it is increasing its investments in new technology solutions and services that will help customers innovate and drive business results in the Virtual Era. In its current fiscal year, Dell will invest $1 billion (USD) to deliver leading solutions, services and cloud-based delivery options.

"Technology advances, delivery methods and the move to disruptive IT models like cloud are changing the fundamental way businesses operate," said Steve Schuckenbrock, President, Dell Services. "With this transformational shift, businesses are gaining benefits in terms of speed to market and organizational and compute flexibility.

April 2011

Suresh Vaswani, until recently the co-CEO of Wipro’s IT business and an executive director on the board of Wipro Ltd, has joined as Chairman-Dell India, and as EVP-Dell Services, leading its Applications and BPO organization. He will report to Steve Schuckenbrock, President-Dell Services.

March 2011

Dell's business in India is approaching the $2-billion revenue milestone. Dell is upbeat about “unbelievable” opportunities posed by India — a market where it hopes to add a few thousands to its current 23,000 headcount over the coming year.

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Wall Street pundits on Cisco

It is too big to be taken over – Spin off is the way to go –

Chambers should start by immediately selling off some of his consumer businesses, which represent 10% of all its sales. They simply don't make sense for a company's whose main business is computer switching and other networking functions.

Citigroup's John Slack, in a note last week reiterating a Hold rating on the stock, suggested that selling off all of Cisco's consumer businesses, including its Linksys line of low-cost routers, would boost the remaining revenue growth rate by almost one percentage point and lift operating profit by one to two points.

Chambers should also consider retrenching from some of the other 30 new businesses Cisco has entered in recent years, said Joanna Makris, an analyst at Mizuho Securities USA Inc. in New York. These include niche products that help companies manage data centers -- areas led by Riverbed Technology Inc.,  F5 Networks Inc.  and Aruba Networks Inc.

“Cisco has to give up the ghost at this point. They’ve lost so much share and thought leadership. It’s too late to out-innovate other companies in these areas.”

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Short version of John Chamber’s memo to Cisco employees –

First, as always, let's start with our customers. I've spent significant time recently reaching out to many of them around the world. I've had extremely candid conversations about why they buy Cisco, why they don't, and what they think we do best. These conversations reinforce what I have known to be true about Cisco: our customers believe we are a company of passionate people that take time to imagine what's possible, and to do what it takes to make them successful.

I've also solicited very direct feedback from many of you -- You are telling me that there is a reason you are at Cisco -- our culture, our values, our vision. You've also made it very clear that we must make it simpler to do the work we love to do, and to accelerate the impact we know we are making for our customers.

It is clear to me that we have incredible foundational strengths -- our people, our relationships, our innovation and our strategy to extend the role of the network. We have anticipated market transitions and made good decisions in capturing them. We are disrupting the data center space. We are redefining the collaboration market.

Many say that in the face of this expansion, Cisco needs more discipline. I agree.

We will work on a very simple set of guiding principles:

1. We will not fix what's not broken. There are numerous areas where we're executing incredibly well for our customers and partners. In these areas, you will see no disruption and you will see nothing less than support and empowerment. Simply put, we will not get in the way of our success.

2. We will take bold steps and we will make tough decisions. With change comes disruption, and you will see this necessary and healthy disruption as we make meaningful decisions in a timely, targeted and measurable way. We will address with surgical precision what we need to fix in our portfolio and what we need to better enable.

3. We will accelerate our leadership across our priorities and compete to win in the core. Again, our strategy to extend the role of the network will not change. Our approach to leadership in the core amidst this transition will change.

4. We will make it easier for you to work at Cisco, as we make it easier for our customers and partners to work with Cisco. We will simplify the way we work and how we focus our attention and resources. We will significantly rework our systems, tools and funding models to do this. We will reshape the operational foundation in order to empower our teams, integrate our major functions, and allow our people to focus on inspiring and important work.

We are all responsible for driving operational excellence across Cisco. As you'd expect, I'm asking each of you to play your part in this transition. The responsibility does not fall on one leader or one team. It will not be easy and I expect your participation, flexibility and feedback along the way.

A company that knows how to win and intends to continue that track record. A company that's taking the network where it needs to be, with focus. And at a place that puts people, customers and communities at the core of its values. That's Cisco, no excuses.

Thank you for being part of Cisco. You have my commitment, my respect and my appreciation. Let's define and win this transition together. This is our start.

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Consolidation in mid tier IT/BPO companies and M&A

The merger and acquisition trend in the mid-size IT space started two years back when MindTree acquired Aztecsoft. Latest one being iGate Acquiring Patni to become a billion Dollar Revenue company. Planning to be a outcome based integrated service provider of both IT and BPO.

In 2009, the IT sector saw close to 92 M&A deals, number of M&A deals increased to 115 in 2010, and industry analysts feel that 2011 will see further substantial increase in M&As.

Ashok Soota started a company happiest Mind after leaving MindTree –

While most IT firms define domain knowledge as either technology practices or industry verticals, Happiest Minds will add a third component – business workflows that will incorporate prototype solutions based on latest technologies.

Wipro Ltd has added to the string of acquisitions it has made in the past two years with the purchase of Science Applications International Corp.’s (Saic) oil and gas IT (information and technology) practice. The company will pay $150 million for the business.

Genpact  has acquired consulting and IT services firm Headstrong Corporation for $ 550 million. Does the merger mean end of pure-play Indian BPO companies?

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