IT Industry Trends

1
IT Industry Trends Directions

• Presented to FEI Regina Chapter
• March 9, 2005
• Brian Fergusson

2
AICPAs Top Technology Issues

• 2004
• Information security
• Spam technology
• Digital optimization
• Database and application integration
• Wireless technologies
• Disaster recovery
• Data mining
• Virtual office
• Business exchange technology
• Messaging applications
• Source American Institute of Certified Public
  Accountants January 2004

• 2005
• Information security
• Electronic document management
• Data integration
• Spam technology
• Disaster recovery
• Collaboration and messaging applications
• Wireless technologies
• Authentication technologies
• Storage technologies
• Learning and training competency for end users
• Source American Institute of Certified Public
  Accountants January 2005

3
Security

• Hackers
• Viruses
• Spam
• Spyware
• Adware
• Phishing
• etc.

4
CSO Magazine 2004 E-Crime Watch Survey

• 43 increase in e-crimes and intrusions over
  previous year
• 70 report at least one e-crime or intrusion
• 56 report operational losses
• 25 (presumably direct) financial losses
• Average number 136 e-crimes intrusions per
  firm
• 41 have no formal plan for reporting and
  responding to e-crimes!
• Sources of e-crimes
• Hackers 28
• Former employees contractors 22
• Insiders 20
• Unknown 30

5
Viral Infection Rates

• According to Computer Economics, 99 percent of
  companies surveyed have some kind of antivirus
  protection installed.
• 76 percent admit having been infected by a virus
  in the last year and over 50 percent reported
  having suffered a massive virus attack.
• Why??
• Workstations and servers are covered, but not all
  companies have protection for Internet and mail
  gateway servers.
• Antivirus settings often inadequate to face
  latest Internet-borne threats, such as resident
  protection disabled in desktops, outdated
  versions of the antivirus, slack signature file
  update policy and no proper gateway content
  filtering policy.
• Groups of users to which antivirus policy is not
  applied, either because they are remote users,
  groups of administrators or simply because there
  is no policy.
• Source Panda Software - 2004

6
Virus Propagation Increasingly Faster
Source Panda Software 2004
7
Effects of Viruses
Source Panda Software 2004
8
Virus Attacks

• According to Yankee Group, 80 of companies were
  hit by a virus or worm during 2003.
• According to the latest ICSA survey (ICSA Virus
  Prevalence Survey) 28 of large organizations
  with more than 500 PCs have been affected by some
  kind of computer virus attack, resulting in
  significant damage and financial costs.
• The result of sector studies show that computer
  virus attacks cost companies worldwide US13
  billion dollars in 2001. This figure grew to
  US30 billion dollars in 2002, and in 2003, the
  IT consultancy M12G put this cost to companies
  and home users at US73 billion dollars.
• Source Panda Software 2004
• Average unprotected PC running Windows will be
  infected and/or hacked within 12 minutes of being
  connected to Internet
• Source Computeractive January 2005

9
More Virus Attacks

• 4,496 new viruses and worms identified in 1H2004
  by Symantec more than 4x comparable period
  previous year
• Aug. 20, 2003 - CSX Railroad
• 2 of company PCs infected enough to bring
  network to standstill
• Forced to delay several trains as a result
• ROI on stopping viruses gt2,000
• Source Baseline Magazine February 2005

10
Spyware

• SpyAudit report conducted by ISP Earthlink and
  Webroot Software performed 2.07 million scans in
  the first six months of 2004, finding 332,809
  system monitors and 366,961 Trojan horses.
• Survey of 600 North American businesses by IDC,
  spyware was ranked as the fourth greatest threat
  ahead of spam, hackers and cyberterrorism. The
  only areas viewed as bigger threats than spyware
  were viruses, Internet worms and damage through
  employee errors.
• Source Sophos Pk. - 2005

11
Spam

• Nucleus Research conducted in-depth interviews
  with employees at 82 Fortune 500 companies,
  identified the following
• The average employee receives nearly 7500 spam
  messages per year, up from 3500 in 2003.
• Average lost productivity per year, per employee,
  is 3.1, up from 1.4 in 2003.
• Source Sophos Pk. 2005
• ROI on stopping spam gt74
• Source Baseline Magazine February 2005

12
Phishing

• International electronic crime of choice
• Fake e-mail messages that ask recipients to enter
  personal information (e.g. bank account numbers,
  PINs, credit card numbers, etc.)
• Typical attack duration less than one week
• Many fake Web sites online for 2 or 3 days
• Most activity in first 24 hours
• Anti-Phishing Working Group
• January 2003 176 unique attacks
• December 2004 gt 1,700 unique attacks
• Source eWeek March 2005

13
Languages / Programming (2004)

• J2EE, Unix and Windows will dominate
• XML emerging as language of choice and
  foreseeable future
• Companies demanding open platform development
• Platform technologies being transformed to
  embrace Service Oriented Architecture (SOA)
• SOA will become architectural model for all J2EE
  application server providers
• Common SOA framework components will become
  standardized driving a more robust third-party
  component marketplace
• Source Darwin Magazine December 2003

14
Gartner All Roads Lead to SOA

• Most companies will adopt SOA frameworks by 2007
• Other key elements
• Virtualization
• IP network convergence
• Outsourcing
• Wireless broadband
• Policy-based automation
• RFID
• Mobile device advances
• Massive vendor consolidation inevitable at
  least 1/2 will be acquired or go out of business
• Source ZDNet October 2004

15
Service Oriented Architecture

• More flexible, adaptive business processes
• Multi-tiered, component-based environment that
  improves processes
• Build applications in radically less time (e.g.
  90 less)
• IT can adapt as quickly as business changes
  processes
• Source intelligent enterprise February 2005
• Build and integrate IT infrastructure and
  applications at lower cost and greater certainty
  of successful deployment
• Source ZDNet August 2004
• Industry standard framework that is
  interchangeable, adaptive and flexible, but most
  importantly is closely linked to the business
• Abstracts process from underlying application and
  systems
• Source ZDNet January 2005

16
Traditional n(n-1) Integration Problem
17
Enterprise Workframe Architecture
18
SOA Addressing the Old Problems
19
SOA Define Execution Sequence
20
SOA Application Configuration and Connectivity
to Back-End Processes
21
Virtualization (2004)

• Multiple virtual machines on hardware
• Improve utilization
• Moving from mainframe environments to UNIX and
  Intel platforms
• Legacy systems expected to be overtaken by Intel
  in 3-5 years
• Linux as an application server will do to Windows
  what Windows did to UNIX market growing 60 YOY
• Key element in data centre provisioning, service
  delivery and cost-effective consolidation
• By 2005, gt20 of high-end Intel market will be
  exploiting virtualization for production
  applications
• Source META Group February 2004

22
Virtualization

• Companies failing to leverage virtualization will
  pay more
• up to 40 more to acquire by 2008
• 20 more in administration
• Source ZDNet October 2004
• Gartner predicts 40 of PCs shipped in 2008 will
  include virtualization technology
• Source Baseline February 2005

23
IP Telephony (2004)

• Moving toward mainstream use, but not until 2006
• Applications include IP-based conferencing, call
  centers and integrated collaboration suites
  including videoconferencing
• Cost savings an important element
• Most organizations waiting for replacement cycles
  for current digital and analog phone systems
• Source Gartner April 2004
• 1/3 of ZDNet survey respondents indicated their
  organizations have paved the way for VoIP
• Source ZDNet Survey April 2004

24
IP Network Convergence

• META Group finds users considering IP telephony
  90 of the time
• IPT market growth accelerated in 2004, with IP
  phone shipments numbering in the millions
• By 2010
• 40 of companies completely converged voice and
  data onto single network
• gt95 will have started convergence
• 80 will have integrated communications (voice,
  instant messaging, e-mail
• VoIP will cannibalize local and long distance
  revenue
• Risk of single point of failure
• Shadow legacy networks likely to remain unless
  resolved
• Source ZDNet October 2004

25
Wireless Local Area Networks (2004)

• Security concerns alleviated by Wi-Fi Protected
  Access (WPA) protocol
• Seen as viable alternative to wired connectivity
• Source Gartner April 2004
• Wi-FI hotspots expected to increase 70 in 2004
• Increase in Wi-Fi enabled devices and Wi-Fi
  hotspots as well as growth in subscribers will
  re-ignite interest in Internet advertising
• Growth in technologies for targeted one-on-one
  marketing
• Investments in wired infrastructure will slow
  corporate adoption
• Source Darwin Magazine December 2003

26
Wireless and Broadband

• 65 of enterprises to install some form of
  wireless application by 2007
• META expects mainstream deployments based on
  major platforms (Java, .Net and SAP)
• Source ZDNet September 2004
• Technologies standard components around 2006 or
  2007
• WiMax (IEEE 802.16) with wireless range of 50 Km
  should gain traction around 2007
• Source ZDNet October 2004

27
IT Trends Directions - 2005

• Questions?
• Comments?

28
(No Transcript)