Car parts firm drives change

Cloud computing flies into car trade

Two news items have caught my attention. IBM has taken a well-prepared step forward in defining its Cloud offers and French auto-parts manufacturer Valeo has done a deal with Google.

IBM has been applying the technological capabilities that underwrite one key aspect of the cloud to its own operations. It reports that, through creation of its own internal clouds, it has consolidated 155 datacentres to five, and 16,000 applications to 4500, delivering $1.5bn (£930m) in annual savings.

This is the power of virtualisation at work. In its briefing to analysts, IBM included the widely recognised statistic that, in the corporate world's current distributed computing environments, up to 85 per cent of computing capacity sits idle at any one time.

So let us use a fresh shorthand for these technological capabilities so applied - services manufacturing. It is intended to convey the production realities pioneered by Google and Amazon.com in the consumer services space - software-enabled business processes manufactured in a highly automated fashion to be delivered as services over the web. The manufacturing techniques developed in business-to-consumer markets are overdue a determined application in the endlessly conservative business-to-business markets.

In addition to its own transformation through services manufacture, IBM has been working with a range of customers, and also with green-field academic institutions in the Middle East and the Far East that have presented the opportunity to build from scratch. The outcome is a portfolio that ranges from B2B services delivered from the IBM cloud to business services to rework in-house corporate infrastructural capabilities into private clouds. The leitmotifs are ‘Smart Business' and ‘Service Management Systems'.

IBM is going for the transformational - the massive backlog of 15 per cent efficient corporate infrastructural stuff that needs to be brought into the 21st century. Which is what makes the Valeo announcement even more interesting.

Valeo ranks among the world's top automotive component suppliers, with 122 plants, 61 R&D centres and 10 distribution platforms. It employs around 49,000 people in 27 countries and has, I guess, an experienced in-house IT team.



Email Updates

CIO Newsletters: Expert insight, advice and tools for technology, business, leadership and the CIO career.


Email this article to a friend or colleague:


PLEASE NOTE: Your name is used only to let the recipient know who sent the story, and in case of transmission error. Both your name and the recipient's name and address will not be used for any other purpose.


CIO White Papers

Creating an AUP: Common myths & mistakes

Avoid the common myths & mistakes when implementing your AUP

Unleashing the power of virtualisation 2010

Find out more about cloud computing in European enterprises.

Email archiving: Top 10 myths and challenges

This survey looks at a number of challenges and myths around email archiving that may also slow adoption of full archiving.

Modernising IT: Strategies for improving service quality and reducing IT costs

No matter how many people you allocate, sinking more labour into old IT practices cannot concurrently meet rising demands on IT and cut costs. Read about cost-effective, automated ways to meet this challenge head-on.


CIO UK - Business - Technology - Leadership

Differentiate your company with complete CRM

Focused on productivity and empowerment and leveraging the natural rhythms people work
What defines Complete CRM? How businesses can better engage customers and users, manage customer transactions, and analyse results to adapt and take advantage of changing business and economic circumstances.

DOWNLOAD

Oracle White Paper

IT Misuse Survey

Complete this survey and you could win a Nexus One.

CIO are running a short survey to discover how UK businesses are managing internet and email misuse in the Enterprise.

COMPLETE SURVEY

Virtualisation 2.0
Driving to higher ground beyond the basics

Virtualisation can deliver unparalleled efficiency and cost reductions to your business, allowing direct access to servers and guaranteeing a dependable, rapid response in times of crisis. Read this e-book to learn more about consolidation, discover the latest technologies and find out how to reduce the TCO of virtualisation.

DOWNLOAD

Trend Micro



* *