Posts Tagged‘high tech’

Will The Cloud Kill The IT Admin?

IT is one of the few services that all companies require to compete in today’s markets. IT support then is one of those rare industries where jobs are always around to be had, even for those working in entry level positions. Of course this assumes that you put in the required effort to stay current as letting your skills lapse for 2 or more years will likely leave you a generation of technology behind, making employment difficult. This is of course due to the IT industry constantly evolving and changing itself and much like other industries certain jobs can be made completely redundant by technological advancements.

For the past couple decades though the types of jobs you expect to see in IT support have remained roughly the same, save for the specializations brought on by technology. As more and more enterprises came online and technology began to develop a multitude of specializations became available, enabling then generic “IT guys” to become highly skilled workers in their targeted niche. I should I know, just on a decade ago I was one of those generic IT support guys and today I’m considered to be a specialist when it comes to hardware and virtualization. Back when I started my career the latter of those two skills wasn’t even in the vernacular of the IT community, let alone a viable career path.

Like any skilled position though specialists aren’t exactly cheap, especially for small to medium enterprises (SMEs). This leads to an entire second industry of work-for-hire specialists (usually under the term “consultants”) and companies looking to take the pain out of utilizing the technology without having to pay for the expertise to come in house. This isn’t really a surprise (any skilled industry will develop these secondary markets) but with IT there’s a lot more opportunity to automate and leverage economies of scale, more so than any other industry.

This is where Cloud Computing comes in.

The central idea behind cloud computing is that an application can be developed to run on a platform which can dynamically deliver resources to it as required. The idea is quite simple but the execution of it is extraordinarily complicated requiring vast levels of automation and streamlining of processes. It’s just an engineering problem however, one that’s been surmounted by several companies and used to great effect by many other companies who have little wish to maintain their own infrastructure. In essence this is just outsourcing taken to the next level, but following this trend to its logical conclusion leads to some interesting (and, if you’re an IT support worker, troubling) predictions.

For SMEs the cost of running their own local infrastructure, as well as the support staff that goes along with it, can be one of their largest cost centres. Cloud computing and SaaS offers the opportunity for SMEs to eliminate much of the cost whilst keeping the same level of functionality, giving them more capital to either reinvest in the business or bolster their profit margins. You would think then that this would just be a relocation of jobs from one place to another but cloud services utilize much fewer staff due to the economies of scale that they employ, leaving fewer jobs available for those who had skills in those area.

In essence cloud computing eliminates the need for the bulk of skilled jobs in the IT industry. There will still be need for most of the entry level jobs that cater to regular desktop users but the back end infrastructure could easily be handled by another company. There’s nothing fundamentally wrong with this, pushing back against such innovation never succeeds, but it does call into question those jobs that these IT admins currently hold and where their future lies.

Outside of high tech and recently established businesses the adoption rate of cloud services hasn’t been that high. Whilst many of the fundamentals of the cloud paradigm (virtualization, on-demand resourcing, infrastructure agnostic frameworks) have found their way into the datacenter the next logical step, migrating those same services into the cloud, hasn’t occurred. Primarily I believe this is due to the lack of trust and control in the services as well as companies not wanting to write off the large investments they have in infrastructure. This will change over time of course, especially as that infrastructure begins to age.

For what its worth I still believe that the ultimate end goal will be some kind of hybrid solution, especially for governments and the like. Cloud providers, whilst being very good at what they do, simply can’t satisfy the need of all customers. It is then highly likely that many companies will outsource routine things to the cloud (such as email, word processing, etc) but still rely on in house expertise for the customer applications that aren’t, and probably will never be, available in the cloud. Cloud computing then will probably see a shift in some areas of specialization but for the most part I believe us IT support guys won’t have any trouble finding work.

We’re still in the very early days of cloud computing and its effects on the industry are still hard to judge. There’s no doubt that cloud computing has the potential to fundamentally change the way the world does IT services and whatever happens those of us in IT support will have to change to accommodate it. Whether that comes in the form of reskilling, training or looking for a job in a different industry is yet to be determined but suffice to say that the next decade will see some radical changes in the way businesses approach their IT infrastructure.

Building Australia’s Silicon Valley (or The NBN Gambit).

It may come as a surprise to you to find out that Australia is a predominately service base industry. Whilst it’s hard to argue that we’ve enjoyed the benefits of the current mining boom Australia’s GDP is still predominately derived from our service industry, to the tune of 69% (pg. 134). Still the current prosperity and insulation from global economic crises that Australia has received from the growing mining sector won’t last forever and now is the time for us to start looking towards the future so we can ensure future economic prosperity. I strongly believe that we’ve already undertaken the first steps towards achieving this with the implementation of the National Broadband Network.

Australia as it stands today suffers from an incredible amount of skill drain to other countries. Well over half of the Australian residents who leave Australia for over a year or permanently were skilled workers and whilst the trend has gone down in recent times (thanks wholly to Australia’s isolation from the global economic turmoil) that hasn’t stemmed the flow of talent leaving our shores. For the high technology sectors at least there is the potential to recreate the hot bed of innovation that led to the creation of Silicon Valley on the back of the NBN. This would not only stem the brain drain overseas but would produce large and sustainable gains to the Australian economy.

Right now the public view of the NBN varies wildly. Businesses by and large have no idea what benefits it can bring them, public opinion is mixed (although Senator Conroy says differently) and even the federal government seems at a loss to what it could mean for Australia’s future, doling out cash to local governments in the hope they’ll be able to sell it for them. To combat this the government should instead provide incentives and seed capital to high-tech start ups who are looking to leverage Australia’s upcoming ubiquitous high speed Internet infrastructure, in essence building an Australian Silicon Valley.

Doing this requires co-ordination with entrepreneurial communities, venture capitalists and the willing hand of the government. They could easily make investment in these kinds of companies more desirable by extending tax breaks that are currently enjoyed by other asset classes to investment in NBN based high-tech start ups. This would also make Australian based startups incredibly attractive for overseas investors, pumping even more money into the Australian economy. As the sector grows there would also be an increasing amount of ancillary jobs available, ones that accompany any form of corporation.

Australia would then become a very desirable location for both established and aspiring businesses looking to expand into the Asia-Pacific region. It also works in the reverse, giving Asia-Pacific businesses (and nations) a more local launch pad into the western business world. Establishing Australia as a high tech hub between our strong local ties and western allies abroad would provide a massive economic boost to Australia, one to rival that of the current mining boom.

Of course it’s not like this hasn’t been tried before in Australia, indeed many have tried to recreate the success of the valley with little results. Indeed I believe this is due to a lack of co-operation between the key players, namely the government, entrepreneurs and investors. The NBN represents a great opportunity for the government to leverage the industry not only to ensure Australia’s future economic prosperity but also to establish Australia as a leader in technology. I believe that the government should be the ones to take the first steps towards fostering such an environment in Australia as once the industry knows they have the support they’ll be far more willing to invest their time in creating it.

Not leveraging the NBN in such a way would leave the NBN as a simple infrastructure service, woefully underutilised given the capabilities that it could unlock. Make no mistake the NBN puts Australia almost at the top in terms of ubiquitous, high speed Internet access and that makes a lot of services that are currently infeasible to develop attractive targets for investigation. Indeed since the same level of broadband access is almost guaranteed throughout the country it is highly likely that benefits will stretch far past the borders of the CBD, even as far as regional centres.

As someone who’s group up on and made his career in technology it’s my fervent hope that the Australian government recognizes the potential the NBN has and uses that for the betterment of Australia. As a nation we’re well positioned to leverage our investment in infrastructure to provide economic benefits that will far exceed its initial cost. Creating a Silicon Valley of the Asia-Pacific region would elevate Australia’s tech industry to rival those throughout the rest of the world and would have massive benefits far beyond Australia’s borders.