“Where the CIO should report is a question as old as the CIO role itself,” says John Van Decker, analyst with Gartner Inc.
Shoot, it’s a stale question even for a reporter who has been covering CIO careers for five years.
But data on the topic, whether from Gartner or Forrester Research or the Society for Information Management (SIM), usually creates a stir and invariably is interpreted as a measure of the CIO role at a company.
The “good” answer for CIO careers, in my experience, is that they report to the CEO. After all, IT is pervasive in the enterprise, and if deployed effectively, a strategic asset. How many other executives under the CEO have the kind of depth and breadth of understanding of the way the business actually runs? Actually, the CFO does.
The nemesis is back — at least, according to a recent survey from Gartner and the Financial Executives’ Research Foundation (FERF). Among a respondent pool of 482 senior financial executives, 42% said their IT organization reported to the CFO, while 33% said that organization reported to the CEO. In addition, 53% of the CFOS said they would like CIOs to start reporting to them.
Here’s the kicker: In 41% of organizations, the senior financial executives (mostly CFOs) who responded to the survey viewed themselves as being the main decision maker for IT investments (my italics). So, what’s a CIO to do?
Well, according to the experts at Gartner and FERF, the CIO and CFO have an opportunity “to form a powerful alliance that generates more value for the enterprise,” but not without a whole lot of soul-searching, it seems, on the part of the CIO. Here’s an excerpt from the press release:
However, this performance is often not achieved because of poor perceptions of IT, a parochial CFO or CIO perspective, or a failure to invest in the CFO-CIO relationship. CIOs must understand the impact their CFOs have on technology decisions in their organizations, and ensure that they are providing the CFO with the appropriate understanding of technology, as well as communicating the business value that can be achieved. …IT must interpret its relative strengths and weaknesses as opportunities for improvement, and must work with the finance organization to improve these perceptions. Establishing career paths for project managers, including a path into the project management organization, from which they can provide valuable training and coaching of apprentice project managers; and investment in project portfolio management solutions are just some of the ways that the IT organization can improve its position with the CFO.
Obviously these surveys have to be taken with a grain of salt. Survey results on this loaded question tend to vary depending on the survey pool. In this one, for example, the responses come from CFOs, the very people most inclined to inflate the power of their position at their organizations. (Technology costs a lot of money.) When SIM surveyed its mostly CIO members last year on this very question, 49% of CIOs said they reported to the CEO, and only 25% said they reported to the CFO.
I don’t know that it is such a bad thing for the CFO to have the final say on IT investments. The argument was made to me recently — by no less than veteran CIO Tom Pyke, formerly with the U.S. Department of Energy and the Department of Commerce — that there are good reasons to keep the financial decisions and strategic decisions about IT separate.
But if I were a CIO reading this, what would stick in my craw is the scolding assumption that the burden to improve the relationship is all on the IT staff.
Sys-Con, creator of the sixth international Cloud Computing Expo held last month in New York, blamed a real cloud for the absence of traffic on its show floor. It wasn’t enterprise concern over security, interoperability and portability of cloud services that kept attendees at bay, but airborne ash from the eruption of the Icelandic volcano.
Indeed, organizers said 15% of the anticipated 5,000 attendees were grounded in Europe, although there was no explanation for the visible lack of large corporate customers from the U.S. Virtually all the keynotes and informational sessions were led by one of the 100 cloud vendors (or industry consultants) whose booths occupied a basement corner of the Jacob K. Javits Convention Center.
During the keynotes and other premier sessions, the show floor was closed, presumably to fill the hall with bodies. Case studies of the cloud in action were presented as hearsay in cryptographic terms: “a large financial institution” or “a leading manufacturer in the energy field.” True, there were a couple of partial case studies among small or smallish mid-market firms, and to the show’s credit, most of the information presented was vendor-neutral. Sys-Con employed a cloud-based videoconferencing system to broadcast the main panels to Europe and around the world, including a lunchtime discussion at which a quartet from Iceland stood up to hawk the first “green cloud”—the volcanic ash having blown east to enable their departure.
When the floor reopened, traffic among the booths came primarily from staffers taking a break from other booths, and cloud partnerships were blooming faster than you can say latency. R1Soft, for example, a cloud vendor of backup software, told me about its partnerships with Hosting.com and The Planet. Likewise, LTech, a developer that helps companies “forklift their applications to the cloud,” emphasized its cloud partnerships with Google, RightScale and Soasta.
“Soasta is the coolest company here,” said LTech’s marketing guru of the firm, which measures performance of a cloud installation. “You should go over there; tell them the guys at LTech sent you — they love us.”
In a market that is sure to contract, the question is, who will buy whom? Driven by commodity pricing, no doubt many of the cloud vendors will die on the vine or be swallowed by larger competitors, according to Jeff Kaplan, managing director of ThinkStrategies, a consultancy in Cambridge, Mass.
Cloud vendor viability is a classic issue. Not many enterprises buy from startups, especially when cloud business models are unproven and unarticulated, confirmed Mike Grandinetti, managing director of Southboro Capital LLC, an entrepreneurial consulting company in Sudbury, Mass.
That would naturally drive the kind of cloud partnerships that formed at Cloud Expo in lieu of actual customers. “If you’re selling into CIOs with mission-critical data, it’s almost inevitable that a startup is going to have an uphill battle,” Grandinetti said. “Without a large big brother to put an arm around your shoulder and walk you in, there is not a prayer of being successful.”
After an excellent long weekend in San Francisco (I felt right at home in my techie tendencies), I’m back in Boston and catching up on the latest IT news, as well as the latest pieces from SearchCIO.com.
It’s been confirmed: AT&T will retain iPhone rights until 2012. Does AT&T iPhone exclusivity have any impact your business mobile communications strategy? Meanwhile, Twitter is launching a “Twitter Business Center.” Will this cause you to give Twitter in business another look?
Business intelligence data gets a Web service treatment — Retailers and insurers are proving the worth of business intelligence data by creating new service offerings for their customers.
Microsoft CIO Tony Scott predicts big changes ahead for CIO role — Microsoft CIO Tony Scott predicts 2010 will usher in big changes for CIOs, starting with “unprecedented demand” for IT and the expansion of the CIO role to business operations.
Five top concerns about cloud service providers — Cloud service providers are being asked by IT execs to lay bare their security, data integration, compliance and performance capabilities — and to have an exit strategy.
IT vendor management strategy guide for enterprise CIOs — Enterprise CIOs are looking to codify their IT vendor management strategies as vendors provide opportunities for cutting costs and increasing efficiency. Learn more in this guide.
Here we go again with Facebook privacy issues: Consumer advocacy groups are assailing Facebook for a recent security flaw. One has even filed with the Federal Trade Commission (FTC), claiming that a recent security flaw temporarily exposed private messages between friends. It’s also sobering to learn that nearly one of four Facebook users isn’t using the privacy settings at all.
The timing of this new wave of Facebook problems dovetails with our recent coverage of social media addicts and security. As SearchCIO.com Senior News Writer Linda Tucci reported, more employees are using social networking technologies either for work purposes or during work hours.
I don’t see why the FTC would get involved. Nobody is forcing anyone to have a Facebook page, and although frustrating, it doesn’t seem like Facebook is breaking any laws. If enough people stopped using Facebook’s service, or brought their social networking elsewhere and it affected the company’s bottom line, I bet Facebook would be more likely to notice and reconsider its approach.
But these Facebook privacy issues — specifically, the breaking down of privacy barriers between individuals and their employers — are disturbing on both sides. What if employees using Facebook in the workplace discussed sensitive work matters via the social networking platform, and their conversations were exposed?
Moreover, as an employee, if you want your employer listed on your profile, you now will have no choice but to connect to your employer’s page. And as an employer, do you want employees past and present directly linked to your company’s Facebook page? Thoughts to ponder as Facebook’s privacy issues become more and more pronounced.
Microsoft CIO Tony Scott was the keynote speaker at a modest but interesting gathering of CIOs in Boston yesterday, and he more or less stole the show, arriving in a rumpled suit and displaying the sort of brash, jargon-free intelligence that is still a novelty at IT shows. He’s predicting that CIOs are going to be hit with a tsunami of pent-up demand for IT very soon. (He wishes, right?) Actually, his metaphor was water pushing against a dam. In between the obligatory Microsoft plugs, he paid lip service to some of the changes in store for the CIO role, appropriately enough because the title of the meeting, put on by the Mass Technology Leadership Council, was “A New Paradigm for CIOs.”
But it was in the Q&A session after his remarks where he gave us Beantowners a feel for what it means to be CIO of the world’s largest software company. (Or is that Oracle? No matter.) Asked what would happen to traditional IT departments — and the CIO — as more aspects of computing really do become like electricity, a utility distributed on a grid, Scott sensibly said there will be lots of jobs for IT people who can do a good job of creating utility computing.
“That’s going to be a great business,” Scott said. But even in the face of utility computing, the “application business is going to flower waaay beyond even where it is today,” he added. For sure, he’s never met a developer who complains about having too much compute power. Imagination still outstrips computing reality. To wit:
“We’ve become good friends with James Cameron, who did Avatar. He built Avatar on Microsoft technology, and he’ll tell you that he had to wait to make the movie until there was enough processing power to do what he wanted to do. And when we talk to him, he tells us that he may have to wait again to make his next movie, because what he wants to do, he can’t do today. There is not enough processing power. So, one example, but I think that’s where we are headed.”
Yup, just one example. I’ll be writing about the lively panel debate on security, privacy and social media that followed his talk for our IT Compliance Advisor blog site later this week, with more Scott insights. Meantime, here’s the Microsoft CIO’s blue-tinted vision of what’s in store for IT in the next five years:
“James Cameron showed us the way — 3-D is going to get real, it’s going to get cheap and it’s going be pervasive. Second, natural user interface. We’re shipping something in Xbox, I think this year. Playing Xbox games, you won’t need a controller anymore. It can read your body motions, and you can interact with the Xbox. That will make its way into the computer world. So, there are a lot of things you’ll be able to do with the compute devices in your world that won’t require a keyboard and a mouse. And the last one, combined with 3-D, is multitouch interfaces … and the things that you can do, manipulating information, data, graphics and so on with your hands, is nothing short of art. And coupled with science, I think it is going to lead us into some really fun things.”
I’m having a slightly cranky Monday morning. The Greater Boston area is on a “boil water” order due to a catastrophic water main break — which is most immediately affecting me in that there is no coffee at work! So please forgive any typos I might make today as I peruse the latest tech headlines.
Is Flash dying? Steve Jobs would sure have you think so. Fortune investigates the future of Flash.
I blogged way back when about the hack of Sarah Palin’s Yahoo e-mail account. Authorities caught up to the Sarah Palin hacker, and the young man accused of the crime was convicted Friday on charges of obstruction of justice and misdemeanor computer intrusion.
And, as always, here’s the latest news from SearchCIO.com:
Gartner rates the Big Four business intelligence vendors — Gartner Inc. rates IBM’s, Microsoft’s, Oracle’s and SAP’s capabilities as business intelligence vendors, from BI platform functions to strategy.
IT business continuity and disaster recovery planning: Test your IQ — IT business continuity and disaster recovery planning are topping enterprise agendas in 2010. Read about the strategies and technologies here, and take our quiz to test your smarts.
Cloud computing identity management standards could push cloud use — Cloud computing identity management standards are in the works to ensure the open and secure exchange of identities in the cloud.
Veteran CIO Tom Pyke shares advice on dealing with IT security threats — Read what veteran CIO Tom Pyke has to say about combating the next generation of IT security threats, and why it’s important for CIOs to get with the program — program management, that is.
CIOs had better start paying attention to the fact that the I in IT is beginning to represent the personal pronoun more than the word “information.” That’s what I found myself thinking after reading a study about the consumption of social media by students.
The study, which was conducted by the International Center for Media and the Public Agenda (ICMPA) at the University of Maryland, concluded that American college students are social media addicts — (tethered to BlackBerrys, laptops, television, iPods — especially iPods). When they were cut off from using social media for just 24 hours, students described having symptoms associated with drug and alcohol addiction: In withdrawal, frantically craving, very anxious, extremely antsy, miserable, jittery, crazy. They reported feeling unconnected, even to those close by, according to the study. They were most discomfited by their lack of access to text messaging, phone calling, instant messaging, emailing and Facebook — their primary means of connecting to friends and family.
“We were surprised by how many students admitted they were ‘incredibly addicted’ to media,” noted project director Susan D. Moeller, a journalism professor at the University of Maryland and the ICMPA’s director. “But we noticed that what they wrote at length about was how they hated losing their personal connections. Going without media meant, in their world, going without their friends and family.”
The students also felt extreme anxiety about being cut off from information. Specifically, they worried about having less information than their friends, on everything from sports scores and TV shows to news about their classes and world events. In fact, it seems that the way students learn about news events is almost entirely through the prism of social media. Very few reported they ever watched TV news or listened to radio news, or read a local or national newspaper. “Yet student after student demonstrated knowledge of specific news stories,” the study’s authors wrote, adding, “The young adults in this study appeared to be oblivious to branded news and information. For most of the students reporting in this study, information of all kinds comes in an undifferentiated wave to them via social media. If a bit of information rises to a level of interest, the student will pursue it — but often by following the story via unconventional outlets, such as through text messages, their email accounts, Facebook and Twitter.” The idea that news is not something impersonal but comes to you through your base of friends (filtered and biased by their views) makes information much more personal and related to the I.
The finding has implications for CIOs, I am certain, but how to sort them out? For starters, we know that the upcoming generation of employees will enter the workforce with two attributes: a “media skin,” as one student in the study put it, that is not easily shed; and an intense desire to stay in touch with people. These workers also will have an insatiable appetite for up-to-the-minute information, but that information will come filtered through their personal networks. Information will be personal. For them, IT will really be I-T. At the very least, CIOs will definitely need a Facebook page.
Well, this sounds like a positive sign of economy — and IT — recovery. We’ve written recently about what CEOs look for in the CIO role, and now The Boston Globe is reporting that IT hiring is on the rise again, both nationally and in the Boston area, according to recruiters and the IT companies themselves. These include technology giants like Google Inc. and EMC Corp., and even Parametric Technology Corp. in Boston’s Needham suburb (right across the street from TechTarget’s previous office).
The Globe article cites job postings on Dice.com, a barometer that SearchCIO.com tracks, as well as an estimate from Forrester Research Inc. analyst Andrew Bartels (to whom we’ve spoken quite a bit about IT hiring) that the U.S. technology market will increase 8.4% this year after shrinking 7.9% last year. There’s a handy graphic too, which illustrates the bloodcurdling drop in IT hiring through 2008 and part of 2009 before it began to ramp back up.
All very interesting news, but even as I reached the end of the article, I knew I wasn’t done reading yet. Although I take them with a grain of salt, I almost always read the comments under these stories. Yes, some people are probably trolls, but it sometimes takes the comments to communicate the real “drama” of the IT hiring story.
And there are some doozies here: One help desk/network technician complains that he or she can’t even get a job in the $45,000 to $55,000 range, whereas he or she used to make $85,000. Another commenter shoots back, “A helpdesk/network tech making $85k is why the economy tanked to begin with.” Then one commenter notes that a lot of Pegasystems Inc. job postings are actually located in Hyderabad, India, so “Hope y’all love curry.”
You get a different sense from reading these comments and actually talking to IT workers than you do from reading the optimistic stories. I’m sure the Globe piece is correct in the IT hiring statistics it cites. But it’s always helpful to have those real voices in there, murmuring that everything is not as rosy as studies and IT hiring reports might make it seem.
I’ve been talking to business continuity and cloud experts over the past few days to find out if large companies are revamping their business continuity strategies as a result of the cloud.
For the most part, the answer was no. Enterprises are not rushing to get rid of hot, cold or primary sites, despite how much it costs to maintain them, to replace them with a site in the cloud.
The undertaking is potentially enormous, just in the planning stages, to make sure your architecture can even be replicated in a cloud environment, they said.
It is not inconceivable that large companies’ business continuity strategies will shift to the cloud, even as a means of housing their primary data center. The cost benefits could be equally, well, enormous, in terms of closing the physical building housing the data center. The cost of maintaining the data center’s power and cooling systems also goes away, along with hardware upgrades and the IT staff that maintains the data center.
Dave Linthicum, an independent consultant, said his clients’ future plans could involve a reverse data center model in which their primary data center would live in the cloud and the secondary site would be maintained on their own premises, or even on yet another cloud provider’s premises.
Still, we’re talking distant future here. Backing up applications in the cloud is a no-brainer, experts said, but backing up an entire infrastructure is not. It’s just too hard to replicate such an environment down to specific configurations within a cloud environment.
Does your business continuity strategy involve the cloud, or are there too many unknowns? Email me at email@example.com.
It’s the end of an era — or is it? Sony has announced that it will stop manufacturing floppy disks in Japan. Point: USB drives. However, the company did sell more than 12 million Sony floppy disks in 2009, so maybe we shouldn’t be tossing them in our time capsules just yet.
You’ve undoubtedly heard about the Apple engineer who misplaced the prototype of the next version of the iPhone, which landed in Gizmodo’s lap. On our sister blog, CIO symmetry, read about how the lost iPhone is a lesson in chain of custody and data loss prevention.
While you’re reading these, also be sure to check out the latest SearchCIO.com stories:
Getting users to buy into a business intelligence strategy — Marketing savvy is but one skill CIOs need to sell a business intelligence strategy to the business. What else do you need to know?
Gartner’s take on emerging business intelligence technology – Who doesn’t love a good list? This one points to tools that could finally bring BI usage into the mainstream.
CIOs weigh use of social media against security concerns — CIOs are trying to balance the business use of social media with their concerns about security, as policies and security tools fail to keep pace with the adoption of social media.