The New Yorker magazine is famous for its cartoons, but one of its more famous was a magazine cover entitled “View of the World from 9th Avenue” from March of 1976 (http://goo.gl/dHxxyH). The image pokes fun at how someone from New York looks at the rest of the world, with locations (and their presumed importance) diminishing drastically the farther away they are.
Given I’m from Boston, I love the inherent mockery in this image, but we all know that this kind of attitude is not restricted to New Yorkers (though perhaps it is a bit more extreme in “the City.”) It is a hubris that is inherent with human nature. The things around you are magnified in importance. The things that happen elsewhere are diminished in perspective, and importance. It’s also true in business. As someone who has worked in software industry for many years, it’s fair to say that attitude exists in this industry. Software is considered the center of the universe, with everything else in the technology ecosystem having its importance marginalized.
Software indeed has become the foundation for the execution and success of many businesses – and new business models. But, while software may or may not be the most important thing, it’s definitely not the only thing. Though we implicitly know that, let’s make it more explicit. Perhaps the best illustration is Forrester Research’s annual forecast of the global technology market, the most recent of which was issued in early January http://goo.gl/DoQgH3. Software spending (both application and infrastructure) will be an estimated $620B in 2015. That’s a pretty big number, but it actually is just a little more than 25% of the global technology market spending ($2.337T.) The remaining 75% is hardware, telecommunications, outsourcing and consulting/integration work. Forrester’s report has a nice graphic to illustrate, but it is copyrighted, so I cannot include it here.
Big numbers like that might be hard to digest, but consider roughly the same proportions as applied to a corporate technology budget. If close to three quarters of your IT spending is NOT on things that deliver competitive advantage, you have to wonder about the priorities that traditional technology architectures have forced on us. Forrester estimates that somewhere between two thirds and three quarters of the typical enterprise’s annual IT spending is on maintenance and operations. Perhaps you can imagine the conversation between IT and the LOB about new applications or services, when they are being told that 75% of the money and attention must be dedicated to the care and feeding of the existing stuff. There’s an awful lot of money being spent “below the water line”, not on what the organization needs to compete for business or to service customers or to pursue new strategic initiatives.
It is with those challenges in mind that Trillium has launched its new Trillium Cloud offering, the details of which can be found at http://goo.gl/EoA1f6. By making our enterprise data quality solution available via a cloud deployment model we are working to create a more favorable balance between our customer’s IT spending and their strategic business goals. We think this has exciting potential in terms of broadening the adoption of data quality by reducing the infrastructure and administrative requirements inherent with on-premise software.
Put another way (to use another New York reference: Seinfeld) Trillium is looking to eliminate the “yadda, yadda, yadda” of software procurement, deployment and administration. Yet you still get the same enterprise capabilities – both in software and services – needed to be successful.