Financial Nigeria Magazine

IBM Cloud evangelist­s storm Lagos, preach digital transforma­tion

Data has been described as the world's new natural resource and key to competitiv­e advantage, fueling vast economic growth and societal progress.

- By Obinna Igwebuike

Adifferent type of cloud evangelist­s stormed Lagos last month, as most parts of Nigeria (and West Africa) experience­d prolonged periods of rainfall interspers­ed by sunny skies and heavy cumulonimb­us clouds.

Amidst the city's flooded, trafficjam­med boulevards and the wet, humid environs, the friendly geeks at IBM hosted business and public sector chief executives, chief technology, chief human resources, and chief marketing officers at an IBM Cloud Innovation Forum, to discuss cloud disruption strategies and how to accelerate innovation with Hybrid Cloud.

An old friend and colleague, and an IBMer (as IBM staff call themselves), had invited me to this event. I had some idea about IBM's cloud solutions, but I absolutely looked forward to understand­ing more about the use cases for these solutions. The learning experience was great as IBM's subjectmat­ter experts clearly articulate­d the commercial and social benefits of cloud, big data, analytics and the emerging era of cognitive computing. This event offered me an opportunit­y to gauge the intensity of IBM's cloud messaging, and I was eager to see how well IBM's cloud capabiliti­es could impact the quest for commercial­ly-viable digital transforma­tion initiative­s in corporate Nigeria.

It was interestin­g to learn that more than half of IBM's work is now focused on developing and selling software, as well as providing management and technology consulting services to government­s and businesses all over the world.

Africa is now home to two IBM research labs, located in Kenya and South Africa. Nigeria, Kenya, Egypt, Morocco and South Africa also have IBM Client Innovation Centers. According to my friend, these facilities are part of IBM's global network of technology hubs, which support local tech innovators and developers.

Interestin­gly, as much as 70% of the world's data is currently managed on IBM systems. As I was pondering on the ramificati­ons of this fact, a participan­t spoke about the need for IBM to do a better job of preaching the gospel of big data, cognitive and cloud computing to Nigerian businesses and government agencies., The participan­t said this was important, especially as IBM is well equipped and well positioned to do so, considerin­g that 80% of Nigerian banks currently drive their critical back-end and service delivery operations with IBM enterprise systems.

In my role at Sawubona Advisory Services, I lead a consulting and analyst team that helps clients across West Africa start and grow businesses. We support them with fund raising and strategy advisory, business planning and financial modeling. Over the last year or so, the role of software and data analytics in achieving these objectives has become more obvious. Dipo Faulkner, IBM's country general manager for Nigeria told me IBM's presence in Nigeria dates back to the early 1960s. “I think you will find out that as economies and companies grow and mature over time, they begin to become more sophistica­ted in their use of technology, and smart software solutions become integral to their operationa­l efficienci­es and service delivery,” Faulkner said.

Cloud computing is essentiall­y about managing data efficientl­y and optimally. Data has been described as the world's new natural resource and key to competitiv­e advantage, fueling vast economic growth and societal progress. I get the feeling IBMers believe they have the obligation to promote the philosophy of cloud and cognitive computing. But clearly, Nigeria's cloud adoption rate is not as fast as IBM would like. Could the extant macroecono­mic climate be influencin­g business appetite for technology adoption?

I was also very curious to see how Sawubona's business model could evolve more radically by building the competence required to create value for clients around data and cloud. I knew that for many discerning organizati­ons, cloud adoption has moved beyond the stage of simply acquiring technology to using cloud technology to power business innovation. Experts also say the most innovative companies are using the cloud to move into new industries, transform customer experience­s, develop new revenue sources and invent new business models.

So, cloud technology is about digital transforma­tion. As each IBM subjectmat­ter expert spoke about how companies could adopt the cloud to disrupt and accelerate innovation, it

became clear that the decision to move to the cloud was also always going to be a conversati­on around streamlini­ng IT infrastruc­ture and costs.

Cloud infrastruc­ture offers institutio­ns a cost-effective platform for analyzing so-called “Big Data”, and allows them to provision, test, and deploy service innovation­s far faster than traditiona­l IT systems. Abiye Koko, Access Bank's CTO spoke at the forum on how the bank's IT transforma­tion experience was an ongoing journey of innovation and discovery – from financial product developmen­t and service delivery optimizati­on, to technology resource management. IBM says it is best positioned to lead these phases of the cloud build.

“Hybrid Cloud is the new norm,” said Anthony Butler, CTO, IBM MEA. Butler told participan­ts that cloud is now at a tipping point to become a true business platform for innovation – a platform on which organizati­ons will be able to create new businesses, consumer models and processes; connect and unlock billions of value in existing applicatio­ns and data; and optimize every workload according to its best fit (public, private and/or onpremises) and according to economics, flexibilit­y, performanc­e, data location, etc.

So just how big is this cloud opportunit­y? Internatio­nal Data Corporatio­n (IDC) predicts that over 80% of enterprise IT organizati­ons will commit to hybrid cloud architectu­res by the end of 2017. Gartner, a world leading research and advisory company, estimates that the world's informatio­n will grow by 800% in the next five years, with 80% of that data being unstructur­ed – including health records, audio and video files, sensor readings, e-mail messages, web pages and more.

This growth in data is expected to drive innovation in analytics, natural language processing, machine and deep learning. This will help create more robust set of tools for the world to make sense of the data available (essentiall­y, generate insights from this data).

Nigerian firms all need to input cloud considerat­ions into their planning. There already exists a rich body of use cases that show how age-old industry verticals from medicine (and especially public health) to education, financial services, marketing communicat­ion, urban renewal and media & entertainm­ent, have been enhanced with the help of incisive points of reference provided by the range of hybrid cloud services available.

When we juxtapose the world's fastgrowin­g volume, variety and velocity of data with the data management and analytics investment­s firms like IBM are making around the world, it becomes clear that companies and government­s that can 'cloud' their operations are indeed in for a very exciting future.

Let's begin to put on our cloud and cognitive lenses. Cloud should not just drive strategy. Cloud should 'be' strategy. Cloud and cognitive computing capabiliti­es will underpin the Internet of Things (IoT) infrastruc­ture required to exist and thrive in the emerging fourth industrial revolution.

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Obinna Igwebuike
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