AWS re:Invent 2022 - Cloud trends for 2023: Building sustainable cloud-native enterprises (PRT281)

Aug 16, 2023

AWS re:Invent 2022 - Cloud trends for 2023: Building sustainable cloud-native enterprises (PRT281)

The last 3 years saw CIOs gain more influence across the business and put technology at the heart of board-level conversations, but what can keep it there? In this session, the Cloudbusting podcast team predicts the top cloud trends for 2023, discussing the evolution of the CIO, how decarbonization starts—but can’t end—with technology, and how new innovations can connect our world to produce more sustainable, diverse, and financially secure enterprises. Hear from executive peers and industry-leading cloud advisors on how aligning technology strategies to business goals is helping CIOs maintain influence and exposure across the business. This presentation is brought to you by Atos, an AWS Partner.

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Content

1.26 -> - [Jez] Welcome, thank you all

2.34 -> for turning up at this fairly late hour

6.531 -> on the first full day of re:Invent.

10.11 -> So, appreciate you being here. I know it is late.

12.57 -> Hopefully we'll keep you awake (chuckles)

14.04 -> for the next hour.

15.39 -> So, we are from Atos OneCloud.

19.92 -> We host a podcast called, Cloud Busting.

22.05 -> has anyone heard of it, hands up?

23.76 -> A few people, I think.

26.37 -> We host podcasts to do with cloud,

28.2 -> called Cloud Busting.

29.19 -> We try not to be too technical on it.

31.14 -> We try and have a little bit of fun on it.

33.48 -> And today, what we're gonna do

34.83 -> is take you through our trends for next year.

38.07 -> So, every year, we like to come up

39.6 -> with a series of trends, and we're really talking

42.33 -> about the cloud native enterprise.

43.89 -> So, how can we help look at what...

47.37 -> Or what do we think is gonna be affected

48.93 -> in cloud transformation, and what can

51.27 -> we help do about it?

52.53 -> What are some of the recommendations?

54.84 -> I'm very happy to be joined by

56.34 -> a couple that I would just introduce in a minute,

58.14 -> but let's get this show on the road.

62.403 -> (upbeat music)

71.43 -> So, Cloud trends 2023.

73.35 -> Well, first of all, let me introduce

74.85 -> who I'm on stage with.

75.78 -> So, my name's Jez Ward.

76.8 -> I head up the advisory function at Atos OneCloud.

81.42 -> We've recently been bought by Atos.

83.28 -> We were from Cloud Reach,

84.24 -> so those of you who may have heard that name before.

86.94 -> I'm not joined by Darren.

88.26 -> Darren is one of our senior advisors.

90.24 -> Darren, do you wanna just say hello,

91.38 -> and quick intro?

92.76 -> - Yeah. Hi, my name's Darren Bowling.

94.17 -> And I'm a senior cloud advisor at OneCloud,

98.22 -> formerly Cloud Reach.

99.72 -> - Gotta get used to saying that now.

100.972 -> - Yeah, I do, yeah.

101.912 -> I need to get the muscle memory going.

104.82 -> - And also, thrilled to be joined

106.53 -> by Keisha Garcia.

107.7 -> Keisha is with BP.

109.62 -> Keisha, do you wanna just say

112.26 -> a little bit about yourself, and in case no one

114.75 -> has heard of BP, just who (chuckles) BP might be.

117.343 -> - (chuckles) Sure, Keisha Garcia.

120.12 -> I am the VP for Digital Foundations.

123.42 -> You're probably wondering what does that mean.

126.24 -> Really, it's around the enterprise technology

128.49 -> and the delivery of all

130.29 -> of our enterprise products throughout all of BP,

135.15 -> that I'm hoping that everyone knows

137.94 -> who and what BP, or what we do and BP.

141.48 -> We are in the middle of

143.58 -> a large transition right now,

145.05 -> that I know a lot of companies are.

147.21 -> I've been at BP for 16, going on 17 years,

151.95 -> and have, this is gonna be my third or second,

156.18 -> third time being a part of this podcast,

159.99 -> and being on the stage with you guys.

162.42 -> I really enjoy it.

164.64 -> We've been on our cloud journey

165.96 -> for quite some time, since 2016 across multi...

170.13 -> All of our commodities within all

172.53 -> of our particular areas of business.

174.66 -> About 90% on the cloud at the moment,

177.93 -> and really starting to leverage

179.49 -> a lot of the cloud native technologies

182.52 -> and innovation, and continuing to do that.

184.89 -> So, I'm really excited to be here.

186.33 -> Really excited to be a part of this again

188.91 -> and get a chance to talk about some of the trends,

190.71 -> and what we're doing at BP.

192.36 -> - No, great.

193.193 -> Great to have you on the show

194.026 -> and looking forward to not only hearing

195.72 -> your thoughts, but also,

196.756 -> what BP are doing around some of the trends

198.393 -> that we're gonna be chatting about.

199.83 -> So, Darren, why don't we just start

203.67 -> a little bit, before we get into

205.38 -> the individual trends, just kind of setting

209.67 -> the foundations for cloud transformation,

212.55 -> and sort of where we are.

215.255 -> - Setting the oh, setting the foundations.

217.105 -> (speaker laughing) Yeah, so... (chuckles)

218.67 -> So, this is a great quote that we recently

222.81 -> in the Magic Quadrant...

225.21 -> And with this quote, we talk about the fact

228.36 -> that it's not just the technology,

231.69 -> but it's the people and process as well

233.34 -> at the same time.

234.33 -> And understanding that those skills

236.37 -> and developing those skills,

237.39 -> and all those people need to happen

240.12 -> and be adapted as you transform,

242.64 -> and adopt cloud services.

245.1 -> - [Jez] Gartner very much said,

247.687 -> "Organizations, enterprises

249.33 -> should become cloud native,

250.71 -> and to do that you're gonna need some help."

252.51 -> And there's a number of companies that can help.

256.14 -> I would recommend us.

258.69 -> So, what do we talk about this hype cycle, lifecycle-

261.888 -> (crosstalk drowns out speaker) - A little plug there.

262.721 -> A little plug there. (speakers laughing)

265.41 -> - Let's chat a little bit

266.34 -> about this kind of...

267.51 -> - Yeah. - The hype of cloud

269.76 -> and cloud adoption, and the trough

272.88 -> of disillusionment sometimes.

274.2 -> - Yeah, so just to context this a little bit.

278.07 -> So, there's always a reason to act,

280.71 -> and that's normally because of hardware,

284.61 -> or software, or an exit of a data center,

287.52 -> or something that causes that trigger.

290.64 -> And then, you hit this peak

291.84 -> of inflated expectation.

292.95 -> We're gonna be this cool digital business,

295.5 -> we're gonna be Uber.

296.85 -> It's gonna be amazing.

298.29 -> And then, when you start to land in the cloud,

300.63 -> and hopefully Keisha will back this up.

303.03 -> You start to realize that although,

304.62 -> you don't have all that digital quotient,

306.48 -> you don't have what you need to adopt

311.4 -> a new way of working.

313.02 -> And then, you hit a trough of disillusionment.

315.36 -> Actually, there's bigger changes afoot

317.94 -> that need to occur that aren't the tech changes.

320.88 -> And then, you go on this slope

323.64 -> of enlightenment, and then you start that journey.

326.52 -> Does any of that ring true for you, Keisha?

331.38 -> - I so wanna just say no, (speaker laughing)

332.85 -> just to make you sweat a little bit.

335.31 -> But it all actually rings true,

337.47 -> and I've talked about it over the course

340.17 -> of time here, but it's so true.

344.82 -> We can have all of the technology in the world,

346.98 -> but if we don't have people with an agile mindset

350.73 -> or actually understanding

352.2 -> what agility is and agile methodologies,

355.35 -> and the frameworks within

356.4 -> are how to leverage the technology.

359.64 -> As well as also, just from a digital perspective,

363.06 -> how to build upon that.

364.53 -> And then, there's just so many different things.

367.41 -> And then, of course, if you don't have

369.57 -> your business partners and everyone within

373.56 -> the organization, which I think,

374.85 -> everyone has a part to play.

376.59 -> All aligned, and reminding them

378.93 -> of the strategy, and where you're going.

380.34 -> And also then, starting to evolve

382.92 -> and build off of the things that you start

384.42 -> to do foundationally.

385.95 -> Then of course, those things then start

388.47 -> to make people,

389.73 -> what did we come here for?

391.35 -> Are we really getting what we need to get?

392.467 -> - [Jez] Yeah. - And a lot of the things

393.96 -> that you're starting to see,

395.46 -> the reality of cloud start to really happen.

398.1 -> So yes, that is absolutely true.

400.05 -> Been there, everyone's in a different place

402.06 -> in the journey, in the learning curve as well,

404.76 -> which also contributes to that,

406.35 -> which absolutely has nothing to do

408.72 -> with building of the actual platform itself.

412.151 -> - [Jez] Yeah, I'm more looking

413.817 -> for a mountain of enlightenment and it's like-

416.39 -> (speakers laughing) Let's see.

417.84 -> Let's see what we get to.

419.28 -> But that is typical, right?

420.177 -> And it's typical of any project,

421.71 -> any change, anywhere.

423.81 -> I remember having this similar discussion

426.66 -> when I moved away from GroupWise to Google Mail,

429.69 -> and (chuckles) it was like,

430.74 -> well whatever the Google...

432.826 -> And the slope of enlightenment came

435.36 -> very quickly with that.

437.34 -> So, we are gonna talk about six trends.

440.22 -> There's a little sneak preview of them there.

442.5 -> Cloud native enterprise,

444.12 -> cloud enabled climate change, talent crisis,

446.73 -> I guess, we've heard that a lot being talked about.

449.16 -> Connected worlds, evolution of the CIO.

452.037 -> So, the CIO job is changing.

454.53 -> And also, what about the FQ?

457.44 -> So, we will get to that later,

459.63 -> but before we do, on our show,

462.54 -> so we do have a show, Cloud Busting.

464.13 -> I may have mentioned it, podcast.

465.39 -> Feel free to subscribe, download, give it five stars.

469.62 -> We tend to have a thing called

471 -> The Cloudy Cliffhanger, (audience chuckling)

472.74 -> which is a little question that I like to ask.

474.81 -> But I thought, as we've got a live audience,

477.45 -> we'll involve everybody in here.

478.83 -> So, if you are able to, could you all please stand up?

484.11 -> Come on, you don't have to stand up for long.

486.179 -> (crosstalk drowns out speaker) - Not only do they have

487.012 -> to participate- - I know it's the end

487.845 -> of the day. - But you want them

488.678 -> to be active. (speaker laughing)

489.511 -> - Just stand up now.

491.277 -> So, a little cliff hanger question for you.

493.14 -> So, the first re:Invent was 2012, okay?

500.19 -> I'm gonna give you a clue,

501.023 -> to come to re:Invent this year costs $1,799, yeah?

508.985 -> I'm gonna give you an A or a B answer.

512.19 -> So, the A answer is if you think

517.89 -> it costs $599 to attend the first re:Invent,

525.45 -> all right, that's option A.

527.73 -> Option B is $1,099.

531.21 -> So, we're gonna go to the audience first.

532.38 -> If you think it was option A, $599,

537.9 -> please sit down.

542.89 -> Okay, so the rest of you are thinking it's $1,099.

546.75 -> You can all sit down, about half, thank you.

549.419 -> (Keisha laughing)

550.252 -> Darren, let's go to you.

551.25 -> How much did the first re:Invent cost?

552.87 -> - I think, I know the answer.

554.49 -> - Okay.

555.87 -> - I think, it's $999.

559.235 -> - That was neither of the A or B I gave you.

561.827 -> (audience chuckling)

563.36 -> - If you listen-

564.193 -> - I mean- - If you listen-

565.32 -> - Let's just say you don't know the answer.

566.768 -> - I don't know the...

567.601 -> If you listen to the pod,

568.98 -> I am zero for three so far. (chuckles)

572.31 -> - So, whatever answer you go with,

573.488 -> I'm not going with that. (crosstalk drowns out speaker)

575.358 -> - Sorry, $599. - 599.

577.066 -> - Yeah, 599. - Okay.

578.19 -> - Yeah, yeah, yeah. Sorry.

579.357 -> - Keisha, here you go- - I have to go

580.32 -> with something different because you've been wrong

582.12 -> the other times, so- - Every time.

583.538 -> (crosstalk drowns out speaker) - I'm gonna go with $1099.

585.283 -> - Okay, well the correct answer is...

588.21 -> You're gonna have to wait it's the cliff hanger.

589.698 -> (Keisha laughing)

591.15 -> So, let's get (chuckles) onto our trends.

594.12 -> Cloud trend number one,

595.65 -> we're talking about the cloud native enterprise.

597.33 -> So, let's just define what we mean by this, Darren?

600 -> - Yep, yeah.

600.833 -> So, I think, it's really easy

601.92 -> to think cloud native and just think tech.

606.54 -> But actually, when you look at what's going on

608.28 -> with cloud native

609.585 -> and cloud native enterprises, as a concept,

612.87 -> it's no longer the big eating the small.

616.14 -> It's the fast eating the slow.

618.9 -> So, who can move really quickly

621.42 -> and adopt those things really quickly

623.4 -> are actually impacting, and taking over

626.58 -> the organizations that aren't changing,

628.68 -> adapting, and being agile.

631.32 -> And people and processes are really, really important.

634.5 -> And I think, we used to years ago,

637.5 -> build for sustainability.

639.27 -> So, we used to rack equipment,

640.74 -> stack equipment, trust that that'll be there

643.38 -> for five years, or eight years,

644.85 -> or whatever it may be.

647.13 -> We would release monthly or whatever,

650.04 -> but cloud's come along and exploded that,

651.93 -> and changed that.

652.89 -> So, now we're able to build in a modular manner,

656.04 -> and deliver in a modular manner.

658.92 -> But a actually, adapting to that modulation

662.25 -> is really hard.

663.27 -> Keisha, your experience of that,

665.55 -> we used to build in that way and that's how

668.7 -> our enterprise, IT was.

670.86 -> And now, we're moving to this cloud enterprise,

673.44 -> and we have to think about the text changed,

675.63 -> so now the people and the processes have to change.

678 -> What's your experience around that?

679.92 -> - Yeah, so when we started out on our journey

682.92 -> and trying to move at pace and fast to the cloud,

686.58 -> we really were looking at not necessarily,

689.1 -> like for like, 'cause we went away

690.21 -> from that quite quickly.

692.91 -> But a lot of the things that we were doing,

694.343 -> we were moreso setting up IaaS workloads,

696.87 -> not really leveraging any cloud native technology,

698.97 -> 'cause it was just about let's move,

700.23 -> and let's move quickly.

701.22 -> And then, of course, building

702.69 -> for that sustainability piece,

704.1 -> and how do we get people there,

705.33 -> and fix costs that we were trying

706.83 -> to avoid and eliminate?

709.29 -> So, therefore now, we've now moved

712.17 -> to more the cloud native strategy involves

714.81 -> just the modern approach of how

717.24 -> we leverage the software.

718.29 -> The software development, including microservices,

720.69 -> containers, declarative APIs, service meshes,

724.62 -> all of those things are now

725.82 -> what we are moving towards,

728.04 -> and what we've been moving towards

729.39 -> for the last couple of years.

731.22 -> And we'll continue to do that.

732.48 -> And just cloud native adoption helps improve

734.73 -> the operational efficiencies,

736.08 -> and then also helps to reduce costs.

737.507 -> So, it goes into that optimizational piece.

740.58 -> So, now having firmly established

743.28 -> our cloud platforms, and exited the...

748.26 -> I wanna say six of

749.64 -> our eight mega data centers already,

753.87 -> with our cloud first approach.

755.37 -> But again, the IaaS workloads that we had created now

757.74 -> were coming back around and looking

759.9 -> at the modernization of our estate

762.63 -> with the product led approach.

764.07 -> And using the established capabilities

766.17 -> that we had, such as CAS, container as a service;

769.92 -> we are well-positioned to enter

771.57 -> the next phase of our digitalization journey.

774.03 -> So, 2023 and beyond, we'll be really focused

777.3 -> on getting everything onto the containers

779.37 -> that we can, if that makes sense.

780.9 -> And really leveraging,

782.04 -> and really looking at some of the technologies,

784.02 -> and continuing to work with AWS, and other partners.

787.77 -> To then determine what are the additional things

790.68 -> that we can continue to leverage on.

792.12 -> So, that's where we're going on the BP end of things.

795.51 -> - And that's also changing your people

797.88 -> and process, right?

798.78 -> Puts huge demand- - Absolutely.

799.92 -> - On that change.

801.715 -> How have your teams found

803.862 -> that culture change or need of

806.953 -> a technical change?

808.71 -> Has that been a challenge as well?

810.783 -> - It's been a huge challenge of just trying to one,

814.77 -> build the right capabilities,

817.68 -> to continue to further leverage those capabilities.

820.14 -> And even with COTS applications that we have,

822.99 -> the licensing, and just all of the things

826.285 -> the things that you can think of that come with that.

828.45 -> How do we continue to really modernize

830.73 -> our products, and continue to build on them,

832.89 -> and again, leverage

833.88 -> the native technology that's there?

836.04 -> But the skillset of the people developing

838.92 -> and bringing them along for the journey,

840.78 -> as well as the partners that we choose

842.43 -> to partner with.

843.263 -> Whether that be at Atos and others,

846.27 -> how do we do that?

847.103 -> How do we get the best-in-class

848.25 -> if we're all competing pretty much for

849.66 -> the same capabilities and skillsets,

853.17 -> which is also making it quite challenging.

855.06 -> - [Darren] Yep. Cool, cool.

858.33 -> - So I mean, when we also talk

860.58 -> about cloud native enterprise,

862.23 -> we're definitely talking about a mindset, right?

864.36 -> It's not just having cloud

866.31 -> and having the tech installed.

867.969 -> And going to one of the hyperscalers,

869.982 -> and going, "Right, I'm now on cloud, therefore..."

872.76 -> There is a fundamental mind shift

875.88 -> that needs to happen across the organization, right?

878.4 -> I think, that's from CEO downwards

881.16 -> if you really, really wanna go through

882.75 -> that transformation journey.

884.04 -> And it's not just the cloud piece,

886.41 -> but cloud plays,

887.73 -> it's a massive catalyst for change.

889.83 -> - Yeah.

891.69 -> - How do you sort of... (chuckles)

893.1 -> How do you get an organization to fundamentally...

897.33 -> CEO's gotta do, right?

898.65 -> So, hopefully they're coming to events

900.51 -> like this, or they're going

902.37 -> to symposiums or whatever,

903.75 -> and getting an understanding

904.89 -> that the change needs to happen.

906.66 -> How did that happen in BP?

908.19 -> Did you see that in BP or was it

909.75 -> a bit of cart before the horse?

912.93 -> - Yes, so- (speakers laughing)

914.46 -> We've definitely seen that in BP,

916.257 -> and we continue to transform,

919.23 -> and continue to change, and adjust,

922.14 -> and iteratively restructure our organization.

926.82 -> We're actually, literally just coming out

928.86 -> of our restructure right now,

931.17 -> and starting to move more to

933.36 -> a product-centric organization.

935.34 -> So it's not necessarily the traditional setup

938.76 -> as you would see with the CIO

940.89 -> at the realm, and not...

942.84 -> Or it's that big IT space and world.

946.32 -> Everyone needs to be educated on the technologies,

950.04 -> the innovation, and being able to speak

952.05 -> to those things.

952.89 -> But also be able to think in the now,

956.04 -> but also from the future perspective,

957.96 -> and strategize and plan according

960.18 -> to the technologies that are coming out.

962.13 -> But also, partnering with our business

964.41 -> from a product ownership perspective,

966.45 -> really understanding what problems

967.92 -> that are trying to be solved.

969.12 -> - [Jez] Yeah.

969.953 -> - And really, the connection and the communication

971.97 -> has to be there along with the capabilities

975.69 -> and skill sets, from software engineers

978.15 -> to technical program project managers,

981.06 -> to your product managers who manages the relationship.

985.71 -> All of those things have to be joined up

987.48 -> and aligned, and therefore,

988.77 -> it takes you out of your traditional set up

992.19 -> in hierarchal thought process.

994.5 -> I think, today I was on a panel

996.21 -> where we were talking to some other executives

1000.08 -> from other companies.

1002.188 -> And talking specifically about the energy industry

1003.89 -> and where we are with cloud, and the technologies.

1007.07 -> And there was a person that was sitting next

1009.47 -> to me that was on the business side,

1011.72 -> and his comment was, "Yeah, a lot

1013.67 -> of those things I really lean to,

1015.38 -> that's the IT, that's their responsibility.

1018.08 -> So, I don't worry about that."

1019.392 -> And then, I said that, "For me, that's shifting,

1022.58 -> and that's shifted in BP.

1023.87 -> It's not a us, let me throw that over the fence.

1026.48 -> It's how do we work that together?"

1028.76 -> And being able to have that knowledge set,

1031.55 -> and everyone's in a different space and place

1035.21 -> in their digital acumen, I guess,

1037.49 -> or their technology acumen.

1038.69 -> And understanding what does it mean,

1040.37 -> what does cloud actually mean,

1041.51 -> and what does cloud native actually mean?

1044.03 -> As I said, in our journey, we've already,

1046.97 -> we're about 90% on the cloud,

1049.31 -> and everything is not gonna be 100% on the cloud.

1052.34 -> We're gonna get into this hybrid model

1053.9 -> that we're gonna continue to have.

1056.39 -> But getting people to understand that,

1058.67 -> that just because we have moved to the cloud,

1060.98 -> what does that actually mean?

1061.97 -> And how are we set up?

1062.803 -> I can't just go and say, "Oh, all

1064.52 -> of our workloads are IaaS."

1066.08 -> I'll have a business person looking at me like,

1067.647 -> "What the heck does that mean?"

1068.66 -> - Yeah, exactly. (laughs) - So, (chuckles) and why does

1071.15 -> that mean that my cost should be lower

1073.64 -> when you move to PAs?

1074.93 -> Or what does that mean exactly?

1076.82 -> So, it's about being able to connect

1078.71 -> with your product owners, being able

1080.84 -> to connect with your business.

1081.83 -> To be able to have the dialogue that gets them

1086.75 -> to understand, bring everyone along

1088.307 -> for the journey, and that's important.

1090.5 -> - And that's exactly it, right?

1091.863 -> I think, for a successful transformation

1093.913 -> to take place, it can't be IT led,

1095.993 -> it can't be business led,

1097.07 -> it can't be product led.

1098.06 -> It's gotta be a... - Together.

1099.92 -> - A collaboration of everybody being involved

1103.16 -> and everybody feeling like they're playing a part.

1105.77 -> And if they are, and they feel involved,

1107.81 -> then you'll get a successful transformation.

1109.43 -> - Yeah.

1110.263 -> - Rather than having it thrust upon you,

1111.5 -> I think, that's brilliant. - Yes.

1113.42 -> - Okay, so let's take us to the second trend

1118.7 -> that we're seeing.

1119.533 -> And I think, relatively obvious

1121.79 -> and straightforward one,

1123.38 -> sustainability, cloud-enabled climate action,

1126.32 -> decarbonization, whatever want call it, right?

1129.59 -> This is looking at renewable energy.

1133.49 -> We all know that there's

1134.36 -> a climate challenge going on at the moment out there,

1138.29 -> and what is it that we can do

1140.21 -> as organizations and enterprises,

1143.39 -> and hyperscalers to help address this?

1146.39 -> And there's a whole bunch

1148.105 -> of work been going on by hyperscalers.

1152.21 -> AWS have made some announcements

1153.98 -> or making some announcements at this re:Invent.

1157.7 -> We are Atos ourselves, we're working

1160.43 -> with an organization called Eco Act,

1163.28 -> that help go into organizations

1166.25 -> and look at the carbon footprint.

1169.4 -> And without fail, they say that 2%

1173.956 -> of your energy costs can be completely written off

1180.47 -> by moving to the cloud.

1181.4 -> And that is an absolute minimum.

1183.95 -> Get outta your data center, move into a cloud.

1186.38 -> It's a really easy 2% to save,

1188.84 -> especially if you're looking

1189.673 -> at big global enterprises.

1192.2 -> One of the very, very straightforward things

1194.39 -> that you can do.

1195.74 -> It's also a foot in the door, right?

1197.27 -> So, we got a lot of organizations,

1199.7 -> where let's just say

1201.957 -> the chief sustainability officer, CSO,

1206.24 -> probably wouldn't have been able

1207.62 -> to get a word in edgeways at any sort

1211.1 -> of board meeting three or four years ago.

1213.56 -> Now, they're gonna be the person

1215.437 -> that a lot of people listen to.

1217.67 -> If the sustainability officer's going,

1219.657 -> "Right, we need to invest in X, Y, and Z."

1221.33 -> So, he's doing it for two reasons,

1222.89 -> one is that it's good to see

1224.547 -> a corporate social responsibility.

1227 -> It's good to look like you're doing something,

1229.85 -> and don't greenwash it, right?

1231.5 -> Actually do it.

1232.333 -> Secondly, you're gonna make savings.

1233.66 -> - [Darren] Mm, yeah. - There's a huge amount

1235.1 -> of cost to be taken out of businesses.

1237.26 -> And we'll get onto that a little bit later

1239.3 -> when we talk about FQ and financial intelligence.

1245.12 -> Keisha, let's just chat a little bit.

1246.62 -> Obviously, BP being in the energy sector,

1248.976 -> you've got... (chuckles)

1250.336 -> (Keisha chuckling)

1251.408 -> A lot here going on,

1253.25 -> but I know you guys have been very,

1255.037 -> focusing very much on renewable energy and stuff.

1257.66 -> - Right, and then of course,

1258.77 -> our huge transition,

1260.75 -> coming to an integrated energy company.

1263.78 -> As well as we have our 20 aims

1265.79 -> that we're really focused on in that space.

1268.49 -> But specifically, in relation to digital,

1270.86 -> one of the trends, and things

1272.27 -> that we're looking at,

1273.103 -> as you've already mentioned.

1273.95 -> Just cloud is a major contributor

1275.75 -> for scope three emissions.

1277.82 -> So, resulting in more

1279.23 -> of the company's leveraging the efficiencies

1281.03 -> of cloud to meet their sustainability goals.

1283.4 -> So, sustainability of course, as you know,

1285.35 -> amongst the top criteria for IT

1287.81 -> and buying decisions specifically for us.

1290.81 -> So, we've made significant strides over

1293.06 -> the last 12 months in measuring,

1295.49 -> controlling carbon emissions through the use

1297.29 -> of advocacy guidance and tools.

1299.96 -> Things that we've built internally as well

1302.99 -> to measure our digital contribution

1305.93 -> to where we're trying to go in the transition.

1307.85 -> But in 2023, we're going to take this

1310.877 -> to the next level, by embedding sustainability

1313.85 -> and circularity specifically,

1315.83 -> into our product design and commercial decisions.

1318.2 -> Along with the embedment of tools

1320.84 -> that help us along this journey,

1323.6 -> and we have already incorporated sustainability

1325.88 -> architecture guidance into our design ecosystem.

1329.21 -> And we'll have an increased focus

1331.79 -> on standardizing that approach.

1334.01 -> But really with the focus on the circularity piece,

1337.04 -> we'll continue on that journey.

1339.08 -> When we talk about circularity,

1340.28 -> especially as we shut down our last,

1343.52 -> and largest, biggest,

1345.41 -> our largest data centers in Europe.

1348.17 -> What we do with that, the hardware

1350.81 -> from all the networking cabling,

1353.69 -> and all those other things...

1354.748 -> What is our contribution, and how do we look

1356.81 -> at it from a circularity perspective?

1358.76 -> But then also, continuing to think outside

1361.64 -> the box with our business partners,

1363.95 -> or our partners that we use, such as AWS,

1367.28 -> our SIs that we partner with,

1368.81 -> and like-minded people

1370.16 -> that are also striving towards those goals.

1372.5 -> And it's not just about on the technology front,

1375.26 -> there's also a piece of sustainability

1377.15 -> that goes with the social mobility aspect of it,

1379.85 -> and what we do within the community.

1381.53 -> And how we reach out to the community,

1383.42 -> and that also goes with DE&I,

1385.79 -> and all of those things

1387.08 -> that are near and dear for me, and a lot of all of us.

1390.68 -> But those are parts of sustainability too

1392.75 -> that we're continuing to focus on.

1394.25 -> That's again, not just about the digital aspect

1397.07 -> of it, but also the things that

1398.24 -> we should do, and companies should do as well.

1400.46 -> So, we are gonna continue to push

1402.71 -> and focus in those spaces.

1404.57 -> - It's interesting you mentioned level three.

1407.75 -> So, there's four levels, just to give

1410.39 -> a bit of context.

1411.223 -> There's four levels that companies are sort

1413.93 -> of put into when it comes to sustainability

1417.56 -> and where you are with it.

1419.06 -> Level one is that you mainly are in a data center,

1424.82 -> traditional ways of working.

1425.84 -> You're not doing much, is basically level one.

1428.54 -> Level two is you've got some cloud hosting out there,

1431.45 -> you're using a bit of SaaS,

1432.83 -> but you do need to understand,

1434.24 -> you probably need to run through some form

1435.68 -> of assessment to see where else

1437.03 -> you can start getting more renewable energies in there.

1441.56 -> Level three, you're using cloud extensively,

1445.22 -> but you've still got a way to go, right?

1446.75 -> And you're using that initial 2% as the sort of,

1450.32 -> the lever to address the other 98%

1453.56 -> I was mentioning there.

1454.85 -> And then, obviously level four is you are...

1458.66 -> Or you're at net zero or you're close to net zero,

1461.69 -> you've done large scale business transformation.

1464.54 -> As part of the transformation that you're doing,

1469.25 -> one of the benefits you're gonna get from this

1471.65 -> is the ability to start addressing

1474.08 -> your decarbonization and sustainability goals.

1476.93 -> - Yeah.

1477.763 -> - And net zero goals.

1478.596 -> So, it isn't just a trend for trend sake.

1482.09 -> It's something that's tangible and out there,

1484.34 -> and, as I said, there are...

1486.8 -> Especially if you're on AWS,

1487.633 -> there's a lot of options for transparency

1490.34 -> that you can actually start seeing

1491.42 -> the energy that you're using.

1492.8 -> And I think, we're gonna see more

1494 -> and more tooling coming around that there.

1496.97 -> And Darren, I don't know

1497.803 -> if you've seen anything so far.

1499.211 -> - No, I think, there's some announcements

1503.06 -> this week, right?

1504.14 -> I haven't seen anything so far,

1505.4 -> but just to touch on that,

1507.05 -> there's indirect tech on that level three

1508.88 -> and four, where you can start using

1510.71 -> your sustainable end user compute.

1512.84 -> Using leveraging the cloud,

1514.37 -> so these things aren't always great.

1517.31 -> They produce landfill as well.

1518.69 -> So, it's how you can not cycle

1520.91 -> them every three years, not distributing tens

1522.89 -> of thousands of laptops because we have

1525.2 -> an end user compute service.

1527.36 -> That it doesn't matter 'cause the power's

1529.16 -> in the cloud, it's not at the fingertips of the user.

1533.36 -> - Brilliant, okay. Let's look at the third trend.

1537.41 -> The talent crisis, and I mean, I'm not sure,

1541.288 -> (chuckles) feels like it's gonna be

1543.23 -> a trend that's ongoing.

1545.78 -> When does it become the norm, not a trend anymore?

1548.58 -> So, I mean, really what we're saying here

1550.43 -> is that so many organizations are fighting

1554.24 -> for the same pool of talent.

1556.7 -> That we are all trying to attract

1559.73 -> the same people with the same skill set.

1562.43 -> There's a lot of competition, and basically,

1564.32 -> what we're seeing is wages

1566.06 -> are going up through the roof.

1567.62 -> It's becoming unsustainable in terms of your value

1572.57 -> and your return on investment.

1575.87 -> And we're just getting less and less people

1578.63 -> to be able to pool from.

1579.65 -> So I think, as an industry, or as organizations

1585.65 -> in this space that we're all in,

1588.77 -> we shouldn't be aiming to fight for

1591.71 -> those limited talent.

1593.15 -> We should be looking to grow that pool.

1594.8 -> - Yeah.

1596.255 -> - So, what is it that organizations can do

1598.79 -> to sort of help with this, self-heal this problem

1601.52 -> that we've got?

1602.54 -> That we're only all making a little bit worse

1604.64 -> by everyone (chuckles) moving jobs,

1607.55 -> and the churn is massive.

1610.31 -> Darren, you've seen it a fair bit.

1612.29 -> - Yeah, we have.

1613.123 -> Yeah, and we need to become talent creators, right?

1615.86 -> It's really easy when there's

1618.23 -> a small pool, and everyone fights over them.

1620.319 -> But actually, what we need to do

1621.74 -> is create talent within our organization.

1624.53 -> And there's normally loads of it hiding,

1626.45 -> but who are really, really interested,

1628.67 -> who have never really been given

1629.69 -> the opportunity to be able to do that.

1633.425 -> Just this week here, we've had people

1636.8 -> who haven't been in the industry less

1638.21 -> than two years, who are competing in deep racer,

1640.73 -> and finishing second.

1642.26 -> - Mm-hmm. - It's just absolutely crazy

1644.916 -> because the opportunity's not been there,

1647.66 -> it's not been given.

1649.7 -> And also, I think, the prerequisites

1652.88 -> for roles need to be redefined as well.

1654.98 -> I'm not sure about the US,

1658.07 -> and this is obviously my opinion,

1659.81 -> but in the UK we're quite bad at requiring,

1663.62 -> must have a college degree, must have this,

1666.11 -> must have that for a job.

1668.57 -> When actually, aptitude- - 20 years of cloud.

1671.48 -> - Yeah, 20, you need 20 years of cloud,

1672.857 -> and it's not been around long enough, right?

1676.13 -> So, yeah, we've got quite lazy with our standards.

1678.89 -> Some sectors of especially around...

1680.81 -> We're quite lazy with the standards

1683.3 -> to employ someone,

1684.74 -> and that there's different skills out there

1687.32 -> that can be transferable to step into this sector,

1690.89 -> I believe anyway.

1692.72 -> - Yeah, so I think, I touched on

1696.11 -> the fact that we're running into the same issue

1698.9 -> and problem, or opportunity, shall I say.

1701.42 -> And I say it's an opportunity because of

1703.76 -> the reason why, what you just said.

1705.65 -> And we have a large amount of capability

1710.09 -> within our company already.

1712.94 -> And now, it's about dusting off

1716.33 -> and really looking at the job descriptions,

1719.03 -> but also, looking within our talent,

1721.7 -> our talent pool that we currently have.

1723.29 -> And that's where the work's gonna have to come in.

1725.09 -> How do we develop that talent

1727.28 -> and the capability that's there,

1728.39 -> that's in house?

1729.35 -> I use this term that I think,

1730.82 -> I adapted from probably somewhere one

1733.28 -> of our PNC or HR folks,

1735.56 -> and that's where we have the skill and will

1738.83 -> that we can build off of.

1740.18 -> That's where we wanna make sure

1741.68 -> that we are putting our time

1743.45 -> and initiatives towards building on

1745.49 -> that skill and will.

1747.32 -> Where there may not necessarily be that skill,

1749.21 -> but there's that will,

1750.17 -> but there's a little bit of something

1751.49 -> to build off of.

1752.33 -> It's about aligning them with the best place

1755 -> and space within the structure

1758.51 -> of where we're going with product centricity.

1761.6 -> Around having product managers,

1763.04 -> having the software engineers,

1764.93 -> and having the discipline model

1766.43 -> that we can really, really focus on.

1769.01 -> What do we need to do to bring learning

1770.78 -> and development within our organization

1774.17 -> to the talent that we currently have there?

1776.36 -> Because again, everyone is out there looking

1778.58 -> to compete for the same talent

1781.04 -> and the same skillsets.

1782.33 -> And on top of it, as you said,

1783.83 -> the inflation of salaries,

1786.71 -> which I'd love for me, if I was out there looking.

1789.44 -> However, (chuckles) given the fact

1791.27 -> that we're looking to bring people in, it's hard.

1794.54 -> And then, the things that we used to do

1795.95 -> or we'd say we'll go offshore because we get

1797.84 -> the talent, and it's economical,

1800.09 -> that's not the case anymore.

1802.07 -> So again, it's about what do you have internally,

1805.7 -> and finding those gems.

1807.17 -> And that's what I call dusting those gems off,

1809.799 -> and allowing them to shine.

1812.06 -> And how do we continue to build on that?

1814.04 -> And that's where it's really important

1815.36 -> for us to continue to partner with the likes of AWS,

1818.18 -> and others such as yourself, to be able

1820.31 -> to then help to build on

1821.81 -> that talent capability inside

1823.76 -> of the organization that's there.

1825.58 -> We have a lot of people that are extremely great

1828.26 -> at what they do.

1829.85 -> It's about how do we help to get them along

1831.92 -> the journey of evolution and building on

1833.51 -> those skill sets, to then be able to provide

1835.79 -> the value that they absolutely can bring

1838.19 -> to the organization.

1839.45 -> And that's where we're starting to focus on

1841.7 -> a lot more.

1842.533 -> And then, it's also about the partnerships

1843.86 -> that we have with our SIs that do have

1847.07 -> that skill as well.

1848.21 -> And how do we continue to partner with them

1850.01 -> to tackle the problem that we all are having?

1852.5 -> - Yeah.

1853.333 -> - So, that's some of the things

1854.24 -> that we're trying to do.

1855.073 -> And specifically for me, being the head of

1858.29 -> our sub-discipline

1859.16 -> of technical program project management,

1861.68 -> it's building on those base core skillsets

1863.51 -> of program management.

1864.56 -> But then on the technology end,

1866.03 -> how do we then make sure

1867.38 -> that we're partnering again

1868.43 -> with the right people to build out

1869.84 -> that development plan for the people

1871.19 -> that have the skill and will

1872.78 -> to be able to do those things, in each of those areas?

1875.18 -> So, each of us that are discipline heads

1877.31 -> within BP, we're having to focus on that.

1879.65 -> And then, really put the time in around

1882.17 -> the skills matrix.

1883.07 -> What are those necessary skills

1884.72 -> and capabilities that are needed?

1886.67 -> How do we then bring that in-house,

1888.41 -> and how do we build on that within each

1890.75 -> of our disciplines?

1891.95 -> And it's gonna take some time,

1893.63 -> but as we do that and in parallel of that,

1896.21 -> who are the partners that we can partner

1897.62 -> with that have that talent for us

1899.57 -> to be able to leverage that across the need,

1901.64 -> and be able to fill that demand?

1903.71 -> So, those are just things that we are doing.

1906.89 -> - I have a question. It's a higher up.

1910.04 -> Do you think we have a persona issue as well-

1912.138 -> (Keisha chuckling) With the sector,

1914.18 -> as in it's everyone assumes cloud and technology

1918.44 -> is like- - You need to be a programmer.

1920.48 -> - The Big Bang Theory, right?

1921.83 -> It's the nerd world, and actually it's not that.

1925.28 -> - It isn't, exactly.

1928.73 -> Thank you for bringing that up

1930.08 -> because I have to say all the time,

1933.65 -> again, my profession, my discipline

1936.41 -> is program project management.

1937.85 -> And for me, in technology,

1941.24 -> I've done all types of technology implementations,

1944.72 -> large, big, small, whatever, enterprise wide.

1947.9 -> And so therefore, knowing how

1948.95 -> to apply those things, but it's again,

1951.11 -> getting people to understand

1952.19 -> that I can have 50,000 software engineers

1954.86 -> that could be the best at what they do.

1956.72 -> We've built the platform, we have the technology,

1958.94 -> we have those things,

1959.773 -> but if we don't have some of the softer skills,

1962.45 -> or some of the things that

1963.47 -> are absolutely critical, such as governance.

1966.08 -> Being able to understand and how

1967.4 -> to work within the squads that you have.

1971.27 -> Being able to leverage and work

1972.68 -> with product managers and product owners

1974.69 -> to understand what the problem is,

1976.28 -> and then define that, and bring that together,

1978.02 -> and manage the dependencies across products,

1979.88 -> and integration of those things.

1981.59 -> And to actually be able to deliver on things,

1984.98 -> and what's realistic to be able

1986.72 -> to deliver on those things.

1987.89 -> I don't need to be a software engineer

1990.68 -> to know how to do that, and drive those things.

1992.9 -> - Yeah.

1993.733 -> - However, those skill sets are absolutely needed.

1995.36 -> So, everyone in the organization have

1998 -> a place and space for this.

1999.14 -> And I think, the thing that scares people

2001 -> is when they do hear cloud or innovation,

2004.84 -> and now the trend is,

2005.79 -> is everyone's digital, what does that mean?

2008.11 -> And people don't even know how to spell digital.

2009.64 -> (speakers laughing)

2010.473 -> So, what does that actually mean?

2012.213 -> - On the phone. - Right.

2013.046 -> And again, that doesn't necessarily mean

2015.31 -> that just because now you know how to do

2016.99 -> a pivot table on a spreadsheet,

2018.52 -> that you automatically are digital.

2019.75 -> But it means quite a few things.

2021.52 -> It takes on quite a few definitions,

2023.86 -> but it's about knowing that everyone has

2026.77 -> to come along for this journey.

2027.97 -> And it's not necessarily the pure technologists

2030.52 -> that actually are doing head down development

2032.56 -> that is absolutely critical.

2034.45 -> It's everyone across the board needing

2036.25 -> to understand where they fit in,

2037.72 -> and then how does that...

2038.98 -> What that definition is for each

2040.93 -> of those roles that you play within a squad

2043.03 -> or within that ecosystem to be able

2046.06 -> to deliver the value that's necessary.

2048.58 -> Those things are important.

2049.9 -> - I think it really is,

2050.92 -> and I do think every organization should be looking

2054.34 -> at how they can develop talent,

2056.68 -> grow that talent pool

2057.82 -> through either talent academies,

2059.62 -> or just working with educational organizations.

2064.99 -> And I think, Darren, you very rightly said it,

2067.18 -> this removes some of the barriers to entry.

2069.348 -> - Yeah. - Right?

2070.181 -> - Yes. - You don't need necessarily

2071.014 -> to have a degree-

2071.847 -> - Yes. - To be good at this.

2074.29 -> - I call myself a cool nerd, so. (laughs)

2076.256 -> - There you go. There you go.

2078.94 -> Okay, connected worlds, so this is the fourth trend

2082.3 -> that we're talking about.

2084.01 -> And again, I do think we're in

2086.74 -> a sort of an evolutionary world at the moment.

2089.77 -> I think, there's mass revolutions going on.

2095.38 -> I think, we're seeing, especially now

2096.823 -> when we'll talk a little bit more about it,

2098.35 -> when we talk about the financial crisis

2100.09 -> or financial quotient.

2101.83 -> Is that there's a lot going on in the world,

2104.35 -> and at some point, we've just gotta maybe take

2107.38 -> a little bit of a step back and go,

2108.587 -> "Right, (chuckles) what's going on?"

2110.38 -> Connected worlds, this is where we're saying

2115.84 -> that there is a huge amount

2117.43 -> of connectivity coming along with things like 5G.

2120.04 -> And we were chatting this morning on one

2121.69 -> of the podcasts that current 4G,

2124.27 -> you can connect 100,000 devices, 5G it's a million.

2127.9 -> It's 10 times the connectivity and within

2129.97 -> a range of a kilometer or something.

2131.5 -> So, there's a huge amount of opportunity

2133.15 -> to use things like 5G.

2135.16 -> We've also got Starlink, the Elon Musk satellites

2138.58 -> that are flying around the world.

2140.2 -> I'm sure people may

2141.19 -> have seen them, straight lines (indistinct).

2142.81 -> We've got a competitor,

2144.28 -> that OneWeb is coming along.

2146.59 -> There's a massive amount of IoT devices

2149.23 -> that we're starting to see.

2150.34 -> Driverless cars are starting to come

2152.35 -> to fruition, and Darren, you were talking

2154.63 -> about a taxi driverless, taxi services

2158.29 -> being licensed, and we're potentially gonna start

2160.81 -> seeing the rollout of those.

2162.34 -> So, there's a lot that can be done

2164.89 -> with connectivity, and where I do think

2168.94 -> we are perhaps in a...

2172.03 -> Saying not a lot of evolution, I think we're in...

2174.19 -> There's a lot of innovation to be had in this space.

2176.32 -> - Yeah.

2177.91 -> - Keisha, are you guys doing much IoT

2180.868 -> and connectivity outside of

2185.29 -> the pure central cloud?

2186.55 -> - Yes, and so, from a delivery perspective,

2188.62 -> my team really focuses globally.

2190.78 -> So, where we have our rigs, we have our platforms,

2196.33 -> things that are...

2197.44 -> All of our sets set up that are

2199.24 -> in remote locations, and needing

2201.7 -> the connectivity there.

2202.57 -> So, edge computing is extremely important

2205.36 -> for us, and bringing the device,

2209.26 -> or bringing things closer to...

2211.42 -> Or bringing the activity and the stuff

2213.4 -> that's closer to where the business is being handled.

2216.73 -> And so, having connected and unconnected devices,

2219.7 -> all of those things are absolutely relevant

2222.16 -> for us and an absolute must.

2224.38 -> AI and ML is extremely a must for us.

2227.83 -> So, just around that we've continued

2229.48 -> to drive our business efficiencies

2231.04 -> and digitalization that means an exponential rise

2234.22 -> in the use of IoT over the next several years.

2237.37 -> And so, our edge infrastructure

2239.23 -> provides low latency transport layer along

2242.02 -> with the ability to centrally standardize

2245.53 -> and manage our IoT operations,

2247.42 -> which is extremely important.

2248.77 -> So, reducing the dependency on

2250.3 -> the long distance network,

2251.92 -> as well as network routes, also helps

2254.32 -> to secure our remote devices

2255.82 -> from cyber attacks as well.

2257.2 -> So, cyber security is extremely,

2260.56 -> of course, it's also not a trend,

2263.08 -> it's an absolute must. - Yeah, must of. (chuckles)

2265.39 -> - And making sure that we're doing that.

2267.07 -> So, from an IoT perspective,

2268.6 -> that is absolutely critical.

2271.33 -> Looking at just our growth,

2273.22 -> and just the multi and the hybrid cloud,

2276.22 -> even though that's an enterprise perspective,

2277.78 -> but being able to...

2279.01 -> To be able to know that everything's not gonna

2282.43 -> be able to go on a public cloud.

2283.87 -> We have private clouds,

2284.92 -> so just the combination of those two.

2287.41 -> And when we're looking at just,

2289.18 -> we had a solution that we're trying

2290.44 -> to build in Turkey, we can't take

2293.23 -> that to public cloud.

2294.52 -> And so, being able

2295.57 -> to leverage cloud native technology,

2297.67 -> whether that be from a private cloud perspective

2299.86 -> and what the offerings are around outposts,

2302.47 -> and getting use cases, and performance requirements

2305.74 -> that are there, data sovereignty requirements

2310.15 -> that we have.

2310.983 -> All of those things are absolutely necessary

2312.73 -> for us to continue to look at and drive.

2314.89 -> And then, on the AI and ML perspective,

2317.47 -> just autonomous automization and all

2320.56 -> of those things that are necessary for us

2321.82 -> to do that around our refineries.

2323.71 -> And digital twins, and continuing

2327.04 -> to build on that capability, all of those things

2329.38 -> are extremely relevant to us,

2330.76 -> and we'll continue to build on that.

2332.11 -> Working again with partnerships,

2334.3 -> with the likes of you guys,

2336.28 -> and of course, AWS.

2338.59 -> So, those are things that we're continuing

2340.3 -> to work with it, and the teams are continuing

2342.22 -> to focus on.

2343.27 -> - Brilliant, there's quite an interesting use case

2346.12 -> of a connected city, I think, I'll call it

2348.85 -> rather than a connected world.

2350.118 -> (Keisha laughing) I don't know if anyone's seen

2352.15 -> a project called The Line,

2354.28 -> that's currently taking place in Saudi Arabia.

2357.31 -> They're essentially building a new city,

2359.32 -> and the city is incredible, the concept,

2362.83 -> and they have broken ground.

2364 -> So, it is happening at the moment,

2365.71 -> 170 kilometers long,

2369.07 -> 200 kilometers wide, sorry, 200 meters wide.

2372.34 -> - Okay. (laughs)

2373.96 -> - Wow, that's huge. (laughs)

2375.19 -> 200 meters wide, and it's gonna have no cars,

2377.53 -> no emissions, fully renewable.

2380.709 -> - Oh, wow.

2381.542 -> - It has three layers underground.

2383.83 -> So, I think, one's like a plant layer,

2386.02 -> and then you've got sort of a data layer,

2389.17 -> and then you've got a transport layer.

2391.6 -> And they're saying that within the city,

2394.69 -> you'll be within five minutes walk

2396.07 -> of anywhere you wanna get to.

2397.15 -> And it's incredible.

2399.01 -> The concept of this is just mind blowing,

2400.69 -> and it's happening.

2401.523 -> And obviously, a lot of technology

2402.94 -> is gonna be going into that.

2404.83 -> Certainly a lot of connectivity as well.

2406.81 -> - Yeah.

2408.13 -> - Okay, let's move on to the evolution.

2411.1 -> Are there any CIOs here?

2413.41 -> Probably not at this...

2414.58 -> Oh, there is one, excellent.

2416.2 -> Let's find out if you've still got a job. (laughs)

2419.77 -> - First thing I saw there, "Is the CIO dead?"

2421.957 -> No, that's- (crosstalk drowns out speaker)

2423.145 -> (Keisha laughing) - Yeah, so I mean,

2424.9 -> Jean Kim who wrote the Phoenix Project,

2428.32 -> and the Unicorn Project,

2429.67 -> he famously once said,

2431.147 -> "CIO stands for career is over."

2433.679 -> And not that once you're a CIO, that's it.

2436.78 -> But he's saying there's no to go, right?

2438.85 -> You're at the top of your game,

2441.88 -> unlikely you're gonna become a CEO,

2443.83 -> unlikely you'll become a CFO.

2445.81 -> Once you hit CIO, you're CIO,

2447.063 -> and you probably are doing lateral moves.

2451.3 -> What we are sort of saying is that with cloud coming

2453.82 -> on and cloud adoption, that actually,

2457.39 -> the tech piece of being a CIO

2459.25 -> is probably less important than it has been.

2462.421 -> And what you'll really need to be looking at

2464.26 -> is the cultural, sort of the people bit,

2467.17 -> and the process piece, right?

2468.7 -> Going through a digital transformation is not easy.

2471.76 -> And I think, it's absolutely key that...

2475.39 -> The tech will basically fall in place, right?

2478.48 -> Just bits and pieces that you gotta work around it.

2480.82 -> The hardest piece of this

2482.59 -> is empathy with your team.

2485.44 -> People are gonna be worried they're losing jobs.

2487.42 -> Finance are gonna worry that you're going

2488.95 -> from a CapEx model to an OPEX model.

2493.39 -> The training team are like,

2495.137 -> "How are we gonna get all

2495.97 -> these people trained on this?"

2497.92 -> Governance, security, there's a whole bunch

2500.32 -> of operational changes.

2502.3 -> There's a whole bunch of things

2503.89 -> that as a CIO, you're gonna be responsible for.

2507.04 -> But you're also a translator,

2508.36 -> 'cause you've gotta translate IT speak

2512.17 -> into board speak, boardroom speak.

2514.709 -> And don't expect them, the board

2516.7 -> to ever understand IT, right?

2518.26 -> That is just not gonna happen.

2519.49 -> So, you've gotta be that middle layer.

2521.95 -> And we've had a number of conversations

2523.42 -> with CIOs around this, and they've absolutely seen

2526.15 -> that the role is changing.

2528.22 -> Keisha, you mentioned that at BP,

2530.14 -> you don't have that model, which is interesting.

2531.94 -> And I've seen a couple of organizations

2533.71 -> have even taken the CIO role out,

2535.9 -> and replaced it with something different,

2537.4 -> chief digital officer.

2539.62 -> - It's a title change, but again-

2540.79 -> - It's a title change, right? - (laughing) Yes.

2541.84 -> - But it almost says, "Look, we're making a change,

2544.12 -> we're doing something a bit different."

2546.73 -> I mean, I think interesting that you've taken

2549.152 -> that out and gone,

2549.985 -> "Right, we're going more product centric," you said?

2551.56 -> - Yeah, so we're just moving

2553.69 -> to a product-centric organization,

2555.49 -> which again, I think has been

2558.91 -> what we've been moving to for years.

2563.95 -> But again, it's just called something different.

2566.47 -> Before it was customer-centricity,

2567.94 -> now it's product-centric organization.

2570.13 -> At the end of the day,

2571 -> it's about making sure

2572.8 -> that you have people within the digital space

2574.99 -> that's able to, like you said,

2576.61 -> do the translation.

2578.02 -> And be able to make this shift.

2580.27 -> I can't very well go into the boardroom,

2582.61 -> or go into conversations with our product owners,

2587.159 -> our business, that literally is talking

2589.51 -> about the same thing that I would actually speak

2591.58 -> if I'm in a room full of software engineers.

2593.62 -> They're not gonna understand that.

2595 -> How do you translate that,

2596.05 -> and understand how to meet people

2598.06 -> where they are, and bring those things together

2600.88 -> so that people understand that this

2602.71 -> is how technology helps to meet

2605.5 -> these objectives that you're trying to meet

2607.09 -> from the strategy perspective?

2608.59 -> One of the things that I constantly say,

2610.75 -> and the things that we talk about with AWS

2613.96 -> is first things first,

2615.58 -> understand our business strategy

2616.81 -> and where we're trying to go.

2618.1 -> So that that way, every single time

2620.41 -> that we're talking about new technology,

2622.51 -> innovation, things that you're coming out with,

2624.07 -> you can align that to where

2625.36 -> our business strategy's trying,

2626.56 -> where we're trying to go from

2627.4 -> a business perspective,

2628.233 -> and the actual outcomes that we're trying

2629.77 -> to get to.

2630.603 -> And the products that we're actually focused on

2633.19 -> that'll get us to those outcomes.

2635.05 -> What does that mean, and how does that align

2638.38 -> to the innovation, and the things that

2639.94 -> you are now bringing out?

2641.41 -> What are the big, big, big problems

2643.63 -> that we're trying to solve to be able to help

2645.88 -> our product owners, our business,

2647.62 -> be able to utilize the products,

2650.14 -> to be able to get to the end outcome

2652.06 -> of where they need to?

2653.35 -> And so now, it's about those conversations holistically.

2656.56 -> And everyone needs

2657.91 -> to understand those conversations.

2659.98 -> So, even on your business side,

2662.17 -> where you have your CEOs, to a certain extent,

2664.6 -> they also need to understand technology

2667.3 -> to a certain level, right?

2668.68 -> And what does that mean,

2669.7 -> and the digital aspect of that?

2671.44 -> I can definitely tell you

2672.46 -> our CIO definitely understands cloud,

2674.5 -> and he knows exactly what that means.

2676.33 -> And how do we then continue

2678.49 -> to leverage those relationships?

2680.17 -> And I think, that's important.

2681.34 -> So, on the end of whether

2683.02 -> you're calling yourself a CIO,

2684.4 -> whether you're calling yourself

2686.53 -> a VP of digital foundations,

2688.33 -> or whatever the case may be. (speakers laughing)

2689.95 -> Or the product owner, or the product manager,

2692.53 -> or in the product space,

2693.82 -> or principal product, whatever it is,

2697.18 -> there has to be that level

2698.17 -> of understanding of what...

2701.53 -> When you go to your product owner

2703.57 -> or your business that says, this is the so what.

2707.29 -> This is the problem that I'm trying to solve.

2709.21 -> Then you then have to then translate that

2711.31 -> from a technology perspective, what does that mean?

2713.41 -> And then, communicate that back.

2714.88 -> This is why and how we're gonna solve this.

2716.77 -> This is what we're gonna put towards

2717.88 -> this use case to get you here.

2720.49 -> And to be able to understand,

2721.6 -> and translate that, and have

2722.86 -> that intelligent conversation.

2724.72 -> Whether your title is a CIO,

2726.1 -> or whether your title is

2727.66 -> the senior product, whatever.

2729.82 -> You need to be able to marry those things,

2732.52 -> and marry that conversation together,

2734.26 -> and meet people where they are,

2735.61 -> and take everyone along that journey.

2737.68 -> - It's a culture and enablement leader, right?

2740.743 -> - Yes, yes. - Yeah.

2741.91 -> - I like that title.

2742.81 -> - Yeah.

2743.643 -> - I think, I'm gonna take that.

2744.476 -> - Yeah. (laughs) Change it, yeah, LinkedIn update.

2747.31 -> Yeah, (indistinct) unblocking teams

2749.95 -> so they can deliver based on the business.

2752.8 -> You're a translator of technology to the business.

2756.04 -> - Exactly.

2757.177 -> - Yeah, yeah.

2758.32 -> - And okay, of course the role isn't, right?

2760.18 -> I think, it's around,

2762.25 -> it's just it's changing a little bit.

2763.99 -> I think, to go through

2764.823 -> a successful digital transformation, part

2767.08 -> of your role is being that sort of interpreter.

2770.23 -> But again, it's back to what we were saying,

2771.7 -> you need to collaborate, right?

2772.72 -> If you're collaborating with the business,

2775 -> and you're sharing the value,

2777.398 -> it's where you get to the successful transformations.

2781.69 -> Okay, and then, the last one, what about the FQ?

2785.74 -> So, what are we talking about with FQ?

2788.05 -> FQ, we are talking about financial quotient.

2790.99 -> So, if you think about IQ and EQ,

2793.927 -> IQ, intelligence quotient, you got a number,

2796.33 -> oh, I'm 110.

2797.47 -> I'm in Mensa, or whatever it may be.

2800.17 -> It's a way of measuring a level of intelligence.

2804.526 -> EQ, the same way of measuring empathy.

2808.42 -> We last year spoke about DQ,

2810.4 -> which was digital quotient, right?

2812.32 -> So, we were saying can you measure

2814.57 -> an enterprise as to how enabled they are

2820.24 -> to be able to go through a journey, right?

2822.31 -> What is their digital intelligence

2824.5 -> as an organization, right?

2825.73 -> It's not individuals,

2826.93 -> it's looking at it as an organization.

2828.64 -> We're saying to go through

2829.473 -> a successful transformation,

2831.55 -> you need to have a level of DQ across the business.

2834.07 -> You can't just have it siloed

2835.36 -> in a certain...

2836.65 -> In the IT team, and then nobody else is understanding.

2839.14 -> You've gotta get that messaging across.

2841.87 -> This year we're sort of saying,

2842.897 -> "Okay, we think that next year in terms

2847.48 -> of evolution and technical sort of innovation,

2852.67 -> I don't think is gonna be as much

2854.44 -> as there has been, right?"

2855.273 -> We had the pandemic that forced us all

2856.63 -> to move onto cloud.

2858.28 -> We did it very quickly without

2861.79 -> a huge amount of planning.

2863.71 -> There was a lot of lift and shifting went on.

2865.48 -> And we're still seeing that today.

2866.89 -> A lot of lift and shifting.

2867.76 -> It's always recommend lift and shift,

2869.08 -> and then go and modernize.

2872.17 -> So, we've got that sort of history.

2873.4 -> We've got tech debt that definitely came on.

2875.26 -> We've got cloud tech debt already, right?

2876.67 -> That came from those quick migrations.

2879.07 -> We have high inflation going on at the moment.

2884.58 -> We have high interest rates.

2885.94 -> Money isn't cheap anymore.

2887.92 -> I really think that there's gonna be,

2889.63 -> next year is gonna be a level

2891.82 -> of strategic financial weariness, right?

2897.85 -> I think, organizations are gonna go,

2899.387 -> "Right, we actually need to do FinOps properly.

2901.87 -> - Yeah.

2902.818 -> - We need to look at the tech

2903.651 -> that we've already built.

2904.484 -> Let's not make this any worse than it already is.

2906.13 -> Let's just slow down to go a bit faster,

2909.07 -> and give ourselves a bit of time.

2910.72 -> So, what we're saying is that within

2911.92 -> an organization, your FQ,

2914.625 -> your financial quotient, again,

2916.87 -> it can't be individual.

2917.92 -> It can't be the accounts team and the CFO going,

2920.387 -> "Look after the money."

2922.12 -> With across your organization,

2924.007 -> and your architects, your developers,

2926.8 -> they don't need to be accountants,

2928 -> but they need to have an understanding of

2929.98 -> if I put this line of code in,

2931.96 -> is it gonna cost the business?

2935.14 -> It might only be 10 cents an hour,

2936.85 -> but if I create 100 of them,

2938.2 -> and I've got them running hourly,

2941.08 -> it slowly builds up.

2942.1 -> So, Keisha, in terms of what you are doing,

2947.107 -> are you seeing this as well?

2948.52 -> I mean, obviously BP are doing-

2949.353 -> - Absolutely. - Quite well at the moment.

2951.19 -> - Yes.

2952.66 -> - In terms of you still

2954.94 -> wanna be efficient, cost efficient.

2956.92 -> - Yes, 'cause initially it was again,

2959.98 -> with our cloud first initiative,

2962.83 -> we were thinking that, well, part

2965.38 -> of the business case, we never...

2967.09 -> Well, I never committed

2968.53 -> that it was gonna be cheaper (chuckles)

2970.36 -> once we moved to the cloud,

2971.5 -> or we never said that.

2973.21 -> There was other benefits to be gained from that

2976.39 -> that are priceless, if you will.

2979.87 -> However, as far as just operational cost

2983.11 -> and what does that look like?

2984.01 -> As again, the presence of cloud continues

2986.59 -> to grow, we continue to move things onto cloud,

2990.22 -> it's not even just the fact that we had

2993.43 -> a big enterprise-wide cloud initiative to move.

2996.94 -> There was other teams

2998.23 -> that with our cloud first initiative,

2999.85 -> that meant that whenever you're starting

3001.56 -> to build on things

3002.661 -> or build more internal capabilities, or whatever else,

3008.4 -> you are specifically building

3009.84 -> that on the cloud.

3011.49 -> And so, our cloud growth grew crazy.

3014.85 -> So, even though I said 90% on the cloud

3017.31 -> for the things that my team has moved

3019.62 -> as a part of the enterprise solutions;

3021.12 -> there was all the other development activities

3024.15 -> that were happening within the DevOps groups

3026.97 -> in other areas, that were also building on the cloud.

3029.94 -> And then, you start to step back,

3031.05 -> and you start to look at your operational costs,

3032.82 -> going from the CapEx to OPEX.

3034.53 -> And knowing that where we're trying

3036.81 -> to go within the transition,

3039.24 -> and we're going to have to be

3040.5 -> as optimal as possible in our costs.

3042.57 -> We're gonna have to be as lean

3044.01 -> as we possibly can, and all the inefficiencies

3046.71 -> and mismanagement of some of the things

3049.8 -> that we were doing from

3050.633 -> an infrastructure perspective;

3051.69 -> like building all the IaaS workloads.

3054.27 -> Just having to be more watchful on

3057.09 -> what we're doing.

3057.923 -> So, while we run a tight ship

3059.7 -> with the management of our cloud platforms,

3061.53 -> there's continuous demand on these services

3063.78 -> as a result of which we may sometimes not

3069.33 -> identify potential high cost solutions,

3071.73 -> that may have been implemented earlier on.

3075.39 -> In addition to this, there's cloud waste,

3077.61 -> over provisioning of cloud,

3080.07 -> the idle cloud space developed over time,

3082.44 -> and the need effective...

3084.15 -> It needs effective management

3085.44 -> to ensure optimal utilization.

3087.78 -> So, we have a well-established

3089.52 -> cost optimization function now

3091.11 -> that helps us to achieve this,

3093.24 -> and to maintain the focus for years to come.

3096.12 -> But it's an ongoing active thing

3098.64 -> that we're having to do, and apply those things.

3101.31 -> Because again, things could've,

3104.37 -> and still can get out of control,

3106.47 -> but there's just so many things

3107.64 -> that now we're working with to continue

3109.77 -> to optimize those costs

3111.78 -> because that's gonna absolutely be key.

3113.79 -> And things that we know now,

3115.32 -> that we didn't know before,

3117.51 -> that we're starting to really,

3119.07 -> really focus and leverage,

3120.12 -> and put into the two B design states.

3122.61 -> So that we're not doing, repeating some

3125.19 -> of the things of the past,

3126.72 -> and continuing to contribute

3127.92 -> to that high cost.

3129.3 -> So, those are things that we're doing at BP,

3132.54 -> and we're gonna continue to have

3134.16 -> to do that because again-

3135.76 -> - Yeah, it doesn't end, right?

3137.1 -> I mean- - It does not end.

3137.933 -> - You gotta just keep looking

3140.52 -> at where we can save money. - Yes.

3141.69 -> - As how I see FQ is, is you have FinOps,

3144.975 -> you have to get really serious about that base.

3147 -> Then you have cloud economics above that,

3149.88 -> which is a little bit more strategic.

3153.15 -> Then you have financial strategic economics,

3155.79 -> like your EDPs and your...

3157.8 -> So, you have your reserved instances

3159.39 -> a bit higher up other than FinOps.

3160.827 -> And then, your FQ goes up and down

3163.255 -> that stack accordingly. - Yeah.

3165.837 -> - But I also say it's the same thing

3167.46 -> about educating people as well,

3169.47 -> and it's not just the technologists

3172.17 -> that you're educating, it's everyone.

3173.91 -> And understanding that now,

3175.11 -> we've put the power in our hands

3177.63 -> to be able to control and optimize our cost.

3180.03 -> It's no longer a fixed cost that's just done to you.

3182.88 -> - [Jez] No.

3183.713 -> - It's now it's an active management.

3185.52 -> - [Jez] You have that transparency as well.

3186.66 -> - Yes. - And you have

3187.493 -> the ability to actually see what a workload

3189.96 -> is costing you,

3190.793 -> which you probably didn't have before.

3191.924 -> - Yes. - Always a lot

3192.757 -> of guessing as well, so. - Yeah.

3194.52 -> - Brilliant, okay well look,

3195.63 -> I think the message there

3197.13 -> is that we are going through a year of...

3199.62 -> A fairly challenging year next year.

3201.72 -> Take time, take the time to just spend

3203.82 -> a little bit of time looking at

3205.32 -> your existing structure, right?

3207.66 -> Is there data in there?

3208.89 -> Are there apps that don't really need to be,

3211.01 -> or that shouldn't have been lifted and shifted?

3212.88 -> Is there things that can be modernized?

3214.11 -> Are there things that can be retired, right?

3215.79 -> It may even be apps that are they really being used?

3219.06 -> And I know that we've definitely had

3221.01 -> a number of customers, you just go in

3222.6 -> and redo that sort

3224.07 -> of six hour type assessment piece on stuff

3226.92 -> that you've already got in the cloud.

3227.91 -> It'd be amazing what you see after

3229.53 -> having been there for a year or so.

3231.66 -> Okay, thanks for the trends, that was the trends.

3234.45 -> But the bit I know

3235.283 -> you've been desperately waiting to hear

3236.55 -> the answer for was the cliff hanger question

3239.069 -> that we asked at the beginning.

3240.54 -> I think, the audience,

3241.65 -> we had about 50/50 in the audience out there.

3244.29 -> So, I asked the question,

3245.25 -> the first re:Invent back in 2012, so 11 years ago,

3250.86 -> the conference pass today costs $1,799.

3256.08 -> But back at the very first one,

3258.39 -> was it 1,099 or 599?

3261.9 -> Darren, you went for the 599.

3264 -> - I did.

3265.53 -> - Most of the audience, I say it's about 50/50.

3267.69 -> Keisha, you went for the 1099.

3269.46 -> Darren, I'm very happy to say

3270.96 -> that once again, you have lost.

3272.437 -> (Darren sighing) - Woo!

3273.829 -> (speakers laughing)

3274.77 -> - That's now four. - Four.

3276.36 -> - Four outta four Cloudy Cliffhangers

3278.85 -> that you've got wrong.

3279.683 -> Congratulations to all those

3281.25 -> who got the correct answer, it was 1099.

3284.91 -> And actually, trying to find that information

3286.41 -> was quite challenging.

3287.746 -> (Keisha laughing)

3288.987 -> I eventually found it on a blog that Jeff Barr,

3293.73 -> who, those who may know Jeff,

3296.13 -> he is Amazon's chief evangelist.

3299.4 -> I saw it on a blog that he wrote back

3301.5 -> in May, 2012 where he was talking about

3306.45 -> the virtues of coming to re:Invent,

3307.89 -> and it's only $1,099.

3311.423 -> (Keisha chuckling)

3312.256 -> So, yeah, that's what I found out.

3313.089 -> In fact, Jeff's coming on the podcast soon.

3313.922 -> - Sorry. - Couple of weeks,

3314.755 -> so looking forward to that. - Four and O.

3316.129 -> (speakers laughing)

3317.91 -> - Yeah, thank you all again,

3320.67 -> very much appreciate you spending the time.

3323.106 -> I mean, I know it's late, 17:45.

3324.63 -> So, thank you ever so much.

3325.59 -> Appreciate you coming on.

3326.44 -> (audience applauding)

Source: https://www.youtube.com/watch?v=U4QbxMSsY48