Virtualization and Cloud executives share their predictions for 2016. Read them in this 8th Annual VMblog.com series exclusive.
Contributed by Ross Mason, Founder & VP Product Strategy, MuleSoft
Rise of the API Economy
It's no surprise that business is changing dramatically. The
potential afforded by digital transformation could have dramatic effects on
companies' growth, scalability, and revenue. Here are the top 5 trends that I
think will have a major effect on businesses next year:
IoT
In 2016, we'll see interesting Internet of Things use cases
come to life, rather than major steps forward in devices themselves. With CES
approaching in January, hundreds of new IoT devices will be released, but it
won't be the devices themselves that make waves. It will be the clever use of
those devices to generate value. For instance, 90-year old pest control firm
Rentokil connects its mousetraps through IoT technology, and has increased
operational efficiency through the automatic notifications of a caught animal
and its size. Overall, the key theme for 2016 will be identifying the value
niches within industries that can benefit from IoT technology rather than
trying to change the entire industry. For healthcare, it will likely be
connected patients. For retail, it will be around making stronger connections
between traditional and digital shopping.
Cloud
When it comes to the cloud, enterprises are in an awkward
tween stage - somewhere between the old world and new. As we enter 2016, CIOs
will continue to adopt cloud applications and seek better ways to connect
on-premises systems and the cloud. Hybrid IT is now the reality for many
enterprises and many are going through a refresh of their platforms, both
business and technology. They are looking for scalable ways to connect and move
data to the cloud, on-premises and back again as needed. There is a big
emphasis on APIs to unlock data and capabilities in a reusable way, with many companies
looking to run their APIs in the cloud and in the data center. On-premises APIs
offer a seamless way to unlock legacy systems and connect them with cloud
applications, which is crucial for businesses who want to make a cloud-first
strategy a reality. More businesses will run their APIs in the cloud, providing
elasticity to better cope with spikes in demand and make efficient connections,
enabling them to adapt and innovate faster than competition.
This summer we surveyed 300 IT decision makers and found that their biggest integration
priority for the next year was cloud software and applications.
Omnichannel strategy
In 2016, many industries will turn to an omnichannel
strategy to attract and retain customers by creating improved consumer
experiences. By connecting the physical world with the online world, companies
can bring new value and increase revenue opportunities. In particular, the
retail industry will embrace an online-offline approach to increase sales.
E-commerce stores will turn to a complementary brick and mortar store strategy,
attempting to bring online shoppers in-store with exclusive offerings and
deals, or add value by offering a unique experience beyond the ability to
purchase in person. One example is eyewear retailer Warby Parker. It offers
convenience and choice to its customers through a huge online selection, but it
also provides custom fittings or repairs in their brick and mortar stores.
Another industry that will take advantage of an omnichannel approach is
financial services, which will look for ways to bring new products and services
to market quicker through digital channels. This will mean improved mobile
banking, faster payments and new consumer products. No matter the industry,
companies turning to an omnichannel strategy will rely on APIs to create a link
between cloud and on-premises systems, offering a seamless experience for their
customers.
Changing role of the
CIO
In 2016, we'll see CIOs shift from traditional IT delivery
models to delivering capabilities to their business units, allowing the
consumers of these capabilities to build their own applications and processes.
This is the decentralization of IT, where IT no longer owns the applications but
are governors of the data. This will contribute to the expanding partnership
between business and IT. CIOs are beginning to embrace their new role as a
business enabler and are gaining confidence in doing things differently. They
recognize their role is no longer just about keeping the lights on and the
networks running. For this reason, successful CIOs will come to the table with
a vision that helps put the company on a course of action toward greater
digital transformation. The key step will be decentralizing IT by opening up
APIs to developers and analysts, so they can gain access to reusable data.
Additionally, IT will standardize on business and technology platforms to
reduce their technology footprint.
Rise of the API
Economy
In 2016, more enterprises will adopt an API strategy, with
the goal of enabling greater agility and efficiency within their organizations
and driving more innovation to compete with emerging startups that continue to
erode their value proposition. This year companies, like Uber and Slack,
achieved major success through their open API approach, and we'll see
established businesses start to follow a similar strategy. First, traditional
enterprises will open up APIs internally to break down information silos and
unlock data. The next natural step will be for enterprises to open up those
APIs to third parties, creating new
revenue channels. For instance, in a survey we recently conducted with 300 IT decision makers, 80
percent of large enterprises (10,000 employees or more) said that their company
currently makes more than $5 million a year from APIs. In the same survey, the
IT decision makers said an API strategy was one of the top three priorities to
an organization's business plans in the next year. We're only going to see this
increase in the coming year as organizations embrace the API economy and
recognize its business value.
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About the Author
Ross Mason, Founder & VP Product Strategy, MuleSoft
Ross Mason founded MuleSoft in 2006 on the idea
that connecting applications should be easy, building on the open source Mule
project he created three years earlier. He is responsible for MuleSoft's
product strategy, open source leadership, engineering alignment and direct
engagement with customers. Prior to MuleSoft, Ross was Chief Executive Officer
of SymphonySoft Limited, an EU-based company providing services and support for
large-scale integration projects. Previously, Ross was Lead Architect for
RaboBank and played a key role in developing one of the first large-scale ESB
implementations in 2002. He has also worked with NatWest Bank, Credit Suisse
and Swiss Re. Ross holds a BS (Hons) in Computer Science from Bristol, UK.
