Thursday, September 15, 2016

How IBM is Accelerating Cloud #IBMCloudTour16 Robert Tercek author of Vaporized @SuperPlex

Welcome to the software defined society; this is in many ways an invisible transformation. Often the only visible sign of this change is things going away; old business model are co-opted by new models. Apple sells more music than the music industry combined. Robert talks about things being vaporized; replacing physical media with software. Your smartphone has adopted the persona of over 25 digital devices over a very short period of time.

Robert sites a retailer owned by in which they show pictures of products in subways. Consumers can scan them and their products are provided at their next stop. Ironically this company which started in Asia, went to this model because they could not afford the realestate to bring their stores to market, so they brought their stores to the consumers.

In addition this is tranforming information; information is becoming atmosphere. Information is being liberated and distributed freely. Universities in the states are all introducing free cloud based streaming services of their ciriculum. Why, because they have no choice because new startups are doing this already.

Money is being vaporized. Bitcoin is referenced, but its success is not important as it has proved that the blockchain protocol or trust protocol works at scale.

By 2020 we will have 5 million applications. These applications are replacing everything in your wallet. Robert also sites the simple keycard in hotels being replaced by software. On phones with Near Field Communications “NFC” you can book and walk directly past the checkin to your room.

As good become feature rich they shed the characteristics of products and become services. For example historically the automobile was a huge transformation; it shaped our cities and shifted our economies to petroleum based.

Young people do not see the car as a symbol of freedom; they see it as an obligation. Today software is replacing the car threw new models based on carshare such as Ubber. Uber is now valued at 62.5 Billion which exceeds the valuation of GM and Ford. Every auto company now has a ridesharing or autonomous car innitiative.

What companies like Uber represent is a big shift; They are imposing digital rules into the real world. When Uber responds to critisizm that they go around regulations they respond that they are pushing regulation down to the consumer. The evaluation and control is done on the spot by the end user. Uber launched the first self-driving cars in Pitsburg. They were not the first, there are now several autonomous car startups deploying around the world.

What is exciting is that the software models are coming out of the cloud and effecting the world we live in. Airbnb’s private valuation exceeds all but three of the top hotel chains without owning a single piece of realestate. In addition this is transforming us as well; the first thing we do when we want to engage is to look for an app, if we don’t find one we move on.

All these services depend on the cloud. The invisible part is the massive amount of compute power that it takes to make this happen.  The most important part of the cloud is that it will reshape your organization. Companies shift from making products to digital services.

We are about to go through the next Trillion dollars of change in wearable, implantable and digestable computers. Intelligent technology that is able to react to the environment around us. Once cities deploy LEDs they are able to integrate sensors, cell towers and other data collection points across the city so that the city transforms into the computer.

In 2010 we entered the Zettabytes era (1.2 Zettabytes). This is a 1 followed by 21 zero’s. In 2014 we generated 4 Zettabytes. Data is the new oil. The datasets we have now however are to big for us to handle. This is why AI (Artificial Intelligence) and Cognitive computing has come into vogue; It is the only way we can deal with it.

The business plans of the next 10,000 startups are simple, take anything and add AI to it. The drivers for this change is Cloud, but due to compliance these will be hybrid Cloud environments. There is no industry that will not be impacted. James Dimon from J P Morgan Chase gave a warning to the banking industry that silicon valley is coming. New startsup in silicon valley, backed by venture capital dollars are looking to challenge the old banking models.

Therefore Robert states “The forecast is Cloudy with a chance of reinvention. The future of work is entreprenurial and the future of technology is Hybrid Cloud.”

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