1. Evolution of the smart phone. 2. The cloud and how it will make us smarter. 3. Hadoop the smart reporting tool

Transcription

1 1. Evolution of the smart phone 2. The cloud and how it will make us smarter 3. Hadoop the smart reporting tool 4. Connecting it all to payments ( hint: it involves the term smarter) Oliver Rajic oliver@alphapaymentscloud.com

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3 1993 IBM developed first smartphone, Simon For years, the sole purpose of the cell phone was to serve as a phone Smartphones evolved, but were deemed too big and met with cynicism Who wants to run around with such a big phone? I will rather use my MP3 player, laptop, Camera etc. Usage and purpose evolved along with technology : Entertainment: games, music, books, TV, pictures Social: SMS, i-net, facebook, Organizational: calendar, banking, address book. Educational: toddlers, kids, students

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5 Simplified industries globally Introduced mobile payments to underdeveloped markets Lowered cost and margin enormously Buying 1 song vs. a whole CD Seeing pictures online vs. developing pictures Cost of International calls and calls in general Data storage cost Decreased PC costs due to available alternatives An entirely new workforce/industry/business line Introduced a true information, customization and globalization age

6 Firms caught off- guard paid/paying the price: IBM, Palm, Compaq, Dell, Gateway, Fujitsu, NEC, Nokia, Ericsson, Blackberry, Motorola, Sony, Kodak, HP, Microsoft? At their peak, would or even could you have ever imagined these companies disappearing or struggling through new entrants? Some Firms who adapted/reacted ASUS, ACER, Apple, Toshiba, Samsung, Lenovo, PayPal, Square, Amazon, Google, HTC, LG

7 1.5x Explosion of information is driving 54% growth in storage shipments every year. Most of this storage is based on old server technology not able to meet current needs/reports 70 per $1 70% on average is spent on maintaining current IT infrastructures versus adding new capabilities. 85% idle In distributed computing environments, up to 85% of computing capacity sits idle. Aging systems no longer provide information rapidly enough for timely decisions, are too unreliable for 24/7 operations and not flexible enough for today s market 7

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11 Buying a Condo/House 1. How big should it be: (kids/more kids) 2. I can customize it 3. Trends change, I need to remodel/update 4. Maintenance all on me Tax, plumber,.. 5. Large up front costs Renting a Condo/House 1. A few large developers with many choices in one building to start with or grow/move into 2. Little customization, but usually infrastucture heavy to attract tenants 3. Trends change, I can just get up and go 4. No maintenance 5. Pay as you go

12 Cloud computing is Internet-based computing, whereby shared resources, software and information are provided to computers and other devices on-demand, like the electricity grid. The cloud computing is large scale computing with seamless access to virtually limitless resources. 12

13 These services rely heavily on the cloud, and you have been enjoying all the benefits (reliability, speed, sharing, connecting, storage capacity) in exchange for data

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15 Lower costs Improved performance Fewer programs and processes loaded into memory Instant software updates Not faced with choosing between obsolete software and high upgrade costs. Improved compatibility for improved collaboration Global flexibility 15

16 Unlimited storage capacity easy capacity and global expansion Increased reliability and uptime Device Independence Load balancing 16

17 Try telling a CTO he is about to share data access and power with a 3 rd party The immediate worry is security, availability, reliability Large company manager like responsibility and a large workforce, some for ego, some for control, some for comfort in numbers Try telling a CTO you should change your entire infrastructure

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19 Explosive growth in applications: Social or Enterprise Extreme scale content generation Extraordinary rate of digital content consumption: Exponential growth in computing capabilities: Very short cycle of obsolescence in technologies Newer architectures: web services, persistence models, distributed file systems/repositories (Google, Hadoop), multi-core, wireless and mobile New knowledge and skill levels required You simply cannot manage this complex situation with your traditional IT infrastructure or knowledge 19

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22 At Google MapReduce, utilized smart data operation, are run on a special file system called Google File System (GFS) that is highly optimized for this purpose. GFS is not open source. Google uses it for wordcount, adwords, pagerank, indexing data. Facebook uses it for various operations: demographics Financial services use it for analytics Astronomy: Analysis for locating extra-terrestrial objects. Yahoo reverse engineered the GFS and called it Hadoop Distributed File System (HDFS) and made it open source The tools power many BI tools making smarter reports easier to obtain, and continuously increase the value of data 22

23 Smarter energy Smarter traffic Smarter oil fields Smarter water management Smarter food supply Smarter disease Smarter supply chain prevention Smarter architecture But have we seen smarter payments? Smarter healthcare 23

24 The cloud is well-suited for incubation of new technologies Prototyping and Extreme Programming on a much faster scale Server and Storage requirements significantly cheaper Cheaper = low barrier of entry = more outside investments = more entrepreneurs = more agile/up-to-date solutions meeting this entirely new market/economies need that evolved over the past decade only Speed and Flexibility in product development, work-force deployment and customization requests Technologies used are not part of emerging or core technologies supported by most large payment firms today Remember the missing the boat stories? and the landscape shift? 24

25 Scalability on demand By renting you can use your up-front cash and invest it into product development instead Smarter Payments hardware and software The dumb Terminals from today will evolve the way the phone did Square is not the ultimate evolution but a growth phase Modified tablet s will be the smart-phone s off the future The smart terminal is just the first step. The smart phones didn t really take off until Android and the APP store took off, aka software to connect it all

26 Strategic Big Data resulting in actionable analytics Smarter reports ( Hadoop), achievable by IT that supports the harvesting cost effectively ( the cloud) combined with new data collection tools ( smarter terminals and software) will empower merchants enormously and unlock new smarter marketing, loyalty as well as fraud/bad credit protection campaigns Integrated Ecosystems will simplify the pain of integrating, switching, solution customization and access Result will be better products, at lower costs, more customized to your needs with less IT and back-office involvement, providing additional budget for other initiatives

27 Enterprise App store will bring payments to you globally Global back-office payments related simplification will be achieved on a global scale Data will be connected between departments allowing for faster decision-making Evolution of the Cloud Control, safety and replication will become easier Ultimately a private-cloud will be raised in your IT environment

28 We are on the verge of a massive landscape shift in payments that every industry experience and that will leave carnage behind When selecting providers, lead with technology questions, because new initiatives will only be met with new technology, don t be blinded by big names and tired promises The aforementioned solutions are already being introduced into the market today, so adjust your planning accordingly

29 Oliver Rajic