But what exactly are AI agents, and how are they poised to transform the enterprise landscape? To fully appreciate their impact, we need to explore their architecture, use cases, and the emerging business opportunities that lie ahead. For CIOs, CTOs, and CEOs, understanding this evolution is critical to staying ahead in an increasingly competitive market.

What Are AI Agents? An Overview

AI agents are not just advanced chatbots. They are autonomous software entities designed to execute complex tasks with minimal human input, leveraging tools such as machine learning, natural language processing (NLP), and multi-modal data interpretation. Unlike simpler AI systems that require prompts or manual input, AI agents can reason, plan, and take action based on real-time data.

“AI agents act more like digital professionals than simple bots,” said Sanjay Kumar, an AI product manager at a leading tech company. “They possess advanced problem-solving capabilities that allow them to not only respond but also anticipate user needs and adapt to dynamic environments.” This ability to autonomously handle complex, multi-step processes makes AI agents invaluable in areas where traditional automation would fall short.

The architecture of AI agents revolves around three key components:

• Memory and Learning: AI agents maintain a long-term memory, allowing them to recall past interactions and adapt over time. This continuity enables them to handle long-term projects, unlike traditional automation, which operates in isolated, task-specific environments.
• Reasoning and Planning: AI agents are equipped with reasoning algorithms that allow them to plan complex sequences of actions. They can break down larger tasks into manageable steps and adjust dynamically based on feedback.
• Tool Integration: AI agents can interact with external tools, APIs, and databases to fetch, process, and act on data, giving them the versatility to handle tasks ranging from simple customer queries to intricate software development processes.

Kumar adds: “Think of them as autonomous colleagues that not only take care of routine tasks but also innovate by suggesting better ways to solve problems or presenting data-driven insights to guide decisions.”

The AI Agent Ecosystem: Understanding the Layers

The AI agent ecosystem is expanding rapidly, creating new markets and redefining existing ones. Jeremiah Owyang has been meticulously mapping the AI agent landscape, which includes foundational models, agent applications, and management tools. “In the 2024 AI Agent Ecosystem, you’ll see everything from Big Tech players like Amazon and Microsoft to startups building niche solutions for enterprise needs,” he says.

Owyang’s map outlines three key layers in the AI agent ecosystem:

• Foundational Models: Large language models (LLMs) like GPT from OpenAI are the backbone of many AI agents today. These models power NLP capabilities, allowing agents to understand and generate human-like responses. “GPT is just the beginning,” said Owyang. “As AI agents integrate multi-modal capabilities—combining text, images, and even sensor data—their utility will explode across industries like healthcare, logistics, and retail.”
• Agent Application Layer: This is where the bulk of innovation is happening. Startups are developing specialized AI agents for enterprise use cases. For example, MultiOn’s agent leaderboard showcases companies building AI-powered tools for sales, marketing, and customer support. As these startups mature, they are expected to dominate market niches, much like the early days of Web 2.0 startups.
• Agent Management Layer: As enterprises deploy more AI agents, the need for robust management tools is growing. “Enterprises need to think beyond just deploying AI agents; they need orchestration,” Owyang notes. Companies like Skyfire are developing management platforms that handle agent permissions, compliance, and performance optimization, ensuring that agents can work efficiently at scale.

For enterprise executives, understanding this ecosystem is crucial. The tools and platforms developed at each layer will determine how AI agents integrate into existing workflows and how they evolve to meet the specific needs of different industries.

Disrupting Business Models: AI Agents in Action

AI agents are already creating value in several industries, with notable success stories in customer service, healthcare, and finance. These sectors are leveraging the advanced capabilities of AI agents to drive efficiency, cut costs, and deliver personalized experiences at scale.

In customer service, AI agents are increasingly being deployed to manage high-volume tasks like answering inquiries and troubleshooting issues. Unlike traditional chatbots, these agents offer more than canned responses. “Our AI agents can resolve up to 70% of customer queries autonomously, freeing our human team to focus on more complex issues,” said Kevin Quigley, Senior Manager of Continuous Improvement at Wiley. “We’ve seen a 40% increase in case resolution since deploying Salesforce’s Agentforce.”

The finance industry is also seeing significant disruption from AI agents, particularly in areas like investment management. Robo-advisors, powered by AI agents, are now able to autonomously manage investment portfolios, making real-time adjustments based on market conditions. “AI agents don’t just manage portfolios—they learn from market patterns and improve decision-making over time,” explains Owyang. This capability is driving down costs while increasing returns, making AI-powered investment platforms attractive to both retail and institutional investors.

Healthcare is another sector where AI agents are making a profound impact. From automating administrative tasks to assisting in diagnostics, AI agents are improving the speed and accuracy of healthcare delivery. “AI agents can analyze patient data in real-time, offering doctors insights that would take hours of manual analysis,” said Dr. Sarah Allali, a healthcare technology consultant. “The implications for personalized medicine are game-changing.”

Challenges and Ethical Considerations for Enterprise Leaders

While the potential of AI agents is immense, it comes with a set of challenges that enterprise leaders must navigate. One of the most immediate concerns is the potential for job displacement. As AI agents take over routine tasks, companies may face internal resistance from employees who fear being replaced by automation. However, many experts argue that AI agents will augment human roles rather than eliminate them.

“AI agents will not replace jobs—they will change them,” says Kumar. “The focus will shift from executing routine tasks to overseeing AI agents, making strategic decisions, and solving problems that require a human touch.” Enterprises must invest in retraining and upskilling their workforce to collaborate effectively with AI systems.

Another significant challenge is ensuring the security and ethical use of AI agents. As these agents gain access to sensitive data, enterprises must ensure that they operate within strict ethical guidelines. “Data privacy and security are non-negotiable,” says Owyang. “Enterprises need robust governance frameworks to manage how AI agents access and process data.” This also includes addressing potential biases in AI decision-making and ensuring transparency in how AI agents operate.

Additionally, interoperability between different AI agents remains a challenge. With major tech companies like Apple and Amazon developing their proprietary agents, there is a risk of creating walled gardens where agents cannot communicate across platforms. “There will be fierce competition over standards, and interoperability will be a battleground,” notes Owyang. Enterprises must carefully consider the platforms they invest in to avoid vendor lock-in.

The Future of AI Agents in Enterprise

The exponential growth of AI agents is expected to redefine how enterprises operate in the next few years. Jeremiah Owyang forecasts that “by 2025, AI agents will outnumber humans on the internet, and industries like advertising, e-commerce, and even education will never be the same.” As AI agents continue to advance, their ability to autonomously create other agents, adapt to new challenges, and scale across global operations will lead to unprecedented efficiency gains.

However, success will require more than just deploying AI agents. Enterprise executives must rethink their organizational structures, embrace new AI-driven business models, and invest in the right technologies to stay competitive. Owyang concludes: “We are on the cusp of the next industrial revolution, and AI agents will be at its core. Those who understand this now will be the leaders of tomorrow.”

The future of work is no longer about humans versus machines; it’s about humans and machines working together to unlock new possibilities. For enterprise leaders, the AI agent revolution is not a distant possibility—it’s here and moving fast. Those who seize this moment stand to gain a competitive edge that will define their industry for years to come.

“We’re putting AI to work for people, not just creating tools, but fully integrated solutions that scale with enterprise needs,” said Bill McDermott, CEO of ServiceNow. “This is where AI meets business transformation in its most powerful form.”

AI Agents: The Future of Autonomous Enterprise Operations

ServiceNow’s latest release marks a critical shift from reactive to proactive enterprise operations. The AI agents are designed to work autonomously, taking on tasks that traditionally required significant human oversight. These agents integrate seamlessly into workflows, operating within the company’s Now Platform to manage IT service management, customer service, procurement, and HR functions.

“These agents are designed to work 24/7, handling complex tasks without needing breaks, and their advanced reasoning capabilities mean they can tackle intricate processes with minimal human intervention,” McDermott explained. For enterprise leaders, this means massive reductions in operational costs and exponential gains in productivity. McDermott noted that businesses can “improve productivity by 300% or more just by leveraging these AI tools.”

The AI agents are more than simple task processors—they offer advanced reasoning capabilities, learning from context to make decisions and execute actions across various departments. “We envision AI agents being able to learn and adapt, enhancing decision-making processes within enterprises,” said Jon Sigler, Senior Vice President of Platform and AI at ServiceNow.

These capabilities are essential for enterprises that require rapid decision-making, especially in industries like financial services, healthcare, and retail. According to McDermott, “The AI agents are designed to handle the full complexity of enterprise workflows, providing end-to-end automation that is reliable, scalable, and flexible to meet the diverse needs of our clients.”

Accelerating Enterprise-Level Efficiency

For CIOs and CTOs, operational efficiency remains a top priority, and ServiceNow’s AI agents are designed to deliver immediate results. “The focus is on driving down costs while improving response times and accuracy across all business functions,” said Dorit Zilbershot, Vice President of AI Product Management at ServiceNow. “The ability of AI agents to work autonomously, but with human oversight, gives businesses the best of both worlds—speed and control.”

The AI agents are integrated with Now Assist, the company’s generative AI platform, which ensures that businesses have the tools necessary to build, customize, and scale AI-driven workflows. Sigler highlighted the importance of “seamlessly integrating these capabilities into existing systems to create a smooth transition for organizations.”

With AI agents handling many repetitive and time-consuming tasks, businesses can focus more on innovation and strategic initiatives. “By automating core operations, executives can now concentrate on high-level strategic goals rather than being bogged down by daily operational issues,” said Joe Davis, Senior Vice President for Platform Engineering at ServiceNow.

Human-AI Collaboration: Balancing Autonomy with Oversight

One of the key differentiators of ServiceNow’s AI agents is their ability to collaborate with human employees. McDermott emphasized that “AI agents are not here to replace jobs; they’re here to enhance human productivity and reduce the mundane, repetitive tasks that often slow down workflows.”

For enterprise-level executives, this presents an opportunity to scale operations without significant increases in headcount. “Businesses can see substantial improvements in areas like IT service management, where AI agents can handle up to 90% of incoming tickets, leaving human agents to focus on more complex, high-value tasks,” McDermott explained.

Executives in industries with high compliance requirements, such as healthcare or finance, can be assured that human oversight remains part of the AI agent’s operation. “Governance and compliance are built into these AI systems. Enterprises can set the parameters and governance levels they need, ensuring they stay compliant with industry regulations,” said Zilbershot.

Customization at Scale: Empowering Enterprises

The Now Assist Skill Kit, which is included in the Xanadu release, allows organizations to customize AI agents for specific use cases. CIOs and CTOs can leverage the Skill Kit to build, test, and deploy their own AI capabilities based on enterprise-specific needs, ensuring that their AI-driven operations align with their business goals.

“This is about giving businesses control over how they implement AI,” said McDermott. “You can build AI agents that are tailor-made for your industry, your processes, and your customers.”

For example, in financial services, AI agents can be customized to streamline the process of managing compliance and regulatory updates, ensuring that each workflow is aligned with real-time industry standards. “We’re seeing enterprises integrate AI agents into their core operations in ways that directly enhance regulatory compliance, risk management, and customer service,” noted Joe Davis.

Meeting Global Demand: Scaling Across Industries

ServiceNow’s AI agents are not just for IT and customer service. The Xanadu release also introduces industry-specific solutions for sectors like telecommunications, media, financial services, and the public sector. According to McDermott, “Every industry can benefit from AI-driven automation, but the key is in creating solutions that fit the unique demands of each market.”

In the telecommunications sector, for instance, AI agents can autonomously manage customer service issues, diagnosing and resolving technical problems in real-time. “We’re reducing resolution times drastically by allowing AI agents to handle first-level inquiries and escalate only the most complex issues to human agents,” said McDermott.

In the financial services industry, AI agents can process claims and manage transactions without the need for human intervention, further accelerating efficiency. “Our AI-driven solutions are designed to deliver faster outcomes with fewer errors, which is critical in financial services,” added McDermott.

A Game-Changer for Enterprise Leaders

For CEOs, CIOs, and CTOs, the potential of ServiceNow’s AI agents lies in their ability to drive both operational efficiency and long-term strategic gains. “This is the future of enterprise automation, and the businesses that adopt AI agents now will be the ones leading their industries in the next five to ten years,” McDermott stated.

$7 Billion Revenue company, @ServiceNow goes all in on AI Agents — (their CEO @BillRMcDermott
is a Tech Legend & the most cool/colorful man in the world)https://t.co/qbMubVRYNQ

— Mike (@4KTV) September 10, 2024

ServiceNow’s approach emphasizes scalability and flexibility, allowing businesses to grow their AI capabilities as they expand. “Our goal is to provide businesses with the AI tools they need today while setting them up for the future,” said Sigler. “As AI continues to evolve, so will the capabilities of our platform, ensuring that our clients are always ahead of the curve.”

The Path to Full Automation

As AI continues to transform the enterprise landscape, ServiceNow’s AI agents are positioned to lead the charge. “We are just scratching the surface of what’s possible with AI in business,” McDermott said. “The next few years will see AI agents managing increasingly complex workflows, enabling companies to run smarter, faster, and more efficiently.”

For enterprise leaders, the message is clear: AI is not just a buzzword—it’s a fundamental part of the future of business. “ServiceNow is setting the standard for AI in enterprise automation, and this release is a monumental step toward achieving full business transformation,” concluded McDermott.

As businesses continue to integrate AI into their operations, the opportunities for growth, innovation, and efficiency are limitless. “We’re putting AI to work for people and for businesses, creating a future where operations are smarter, faster, and more seamless than ever,” McDermott said.

1. Managing the AI Risk/Reward Tug-of-War

Generative AI has sparked both excitement and concern within the business community. On one hand, the technology promises unprecedented opportunities for competitive advantage; on the other, it raises significant ethical, legal, and technical risks. As PwC emphasizes, achieving a healthy balance between these competing forces is crucial.

“There’s a fascinating parallel between the excitement and anxiety generated by AI in the global business environment writ large, and in individual organizations,” PwC notes. The report underscores that while some companies have managed this tension effectively, others have struggled, leading to either paralysis or reckless decision-making with potentially disastrous consequences.

One example provided in the report involves a company that found itself at an impasse because the only team capable of validating its AI models was the same team that had developed them—a clear conflict of interest. In contrast, another company made swift progress by establishing a cross-functional leadership team early on to ensure enterprise-wide consistency and risk alignment. This proactive approach not only addressed the ethical implications of AI but also maintained momentum, allowing the company to leverage AI responsibly and effectively.

2. Aligning Generative AI with Digital Strategy

The second priority for successful AI adoption is aligning generative AI strategies with existing digital transformation efforts. PwC points out that many organizations are still grappling with their digital journeys, and the introduction of generative AI adds another layer of complexity.

“Generative AI’s primary output is digital—digital data, assets, and analytic insights, whose impact is greatest when applied to and used in combination with existing digital tools,” the report states. To maximize the benefits of AI, organizations must ensure that their AI initiatives complement and enhance their broader digital strategies.

A case study from the report illustrates this point vividly. A global consumer packaged goods company initially deployed generative AI in its customer service operations, automating the process of filling out service tickets and answering customer queries. However, as the company’s leaders explored further, they realized that the same AI models could be applied to other business functions, such as procurement and HR, leading to much greater gains than initially anticipated. This cross-functional approach exemplifies how integrating AI with digital strategies can unlock significant value.

3. Experimenting with an Eye for Scaling

Experimentation is key to discovering high-value applications of generative AI, but without a plan for scaling, even the most promising pilots can fall short of their potential. PwC’s report highlights the importance of engaging senior leadership early on to ensure that AI experiments are aligned with the organization’s broader strategic goals.

“Experimentation is valuable with generative AI because it’s a highly versatile tool, akin to a digital Swiss Army knife,” the report notes. However, the risk of “pilot purgatory”—where AI projects get stuck in the experimental phase without delivering tangible value—is real. To avoid this, PwC recommends identifying patterns and repeatable processes that can be scaled across the organization.

One example provided involves a financial services company that initially focused its AI efforts on automating HR tasks. By involving the CIO and CISO in these early experiments, the company was able to identify broader applications for the technology, leading to a more comprehensive and scalable AI strategy.

4. Developing a Productivity Plan

Generative AI’s ability to boost productivity is well-documented, but organizations need a clear plan for how to leverage these gains. PwC identifies three main approaches: reinvesting productivity gains to boost output, reducing labor input to cut costs, or pursuing a combination of both.

The report highlights several companies that have successfully implemented AI-driven productivity improvements. For instance, PwC firms in mainland China and Hong Kong reported efficiency gains of up to 50% in code generation and 80% in internal translation tasks, thanks to small-scale AI pilots. These productivity gains not only enhance operational efficiency but also improve employee satisfaction by eliminating repetitive, mundane tasks.

However, PwC warns that automating low-value work can shift the burden onto more strategic tasks, potentially leading to burnout. “Organizations will want to take their workforce’s temperature as they determine how much freed capacity they redeploy versus taking the opportunity to reenergize a previously overstretched employee base,” the report advises.

5. Putting People at the Heart of Your AI Strategy

One of the most critical priorities for generative AI success is ensuring that employees are fully engaged in the AI journey. PwC’s report highlights the importance of early and ongoing communication with employees about the role of AI and the benefits it can bring to their work.

“Our 26th Annual Global CEO Survey found that 69% of leaders planned to invest in technologies such as AI this year,” the report states. Yet, many employees remain uncertain or unaware of how these technologies will impact them. To bridge this gap, PwC recommends involving employees in the creation and selection of AI tools, providing customized training and upskilling opportunities, and fostering a culture that embraces human–AI collaboration.

One example of successful employee engagement comes from a financial services firm that encourages its employees to experiment with AI tools and even celebrates small-scale failures as part of the innovation process. “Failures mark innovation and are expected, and even celebrated,” the report notes, underscoring the importance of creating a safe environment for AI experimentation.

6. Collaborating with the Ecosystem

The final priority identified by PwC is the importance of working with external partners to unlock the full potential of generative AI. “Companies with a clear ecosystem strategy are significantly more likely to outperform those without one,” the report asserts.

In the healthcare and pharmaceutical industries, for example, collaboration between organizations has long been limited by privacy concerns and regulatory hurdles. However, AI is beginning to change that dynamic by enabling safe, large-scale data-sharing and data-pooling. PwC highlights the potential for generative AI to revolutionize drug development and precision medicine through the creation of synthetic datasets that can be shared across organizations.

By working closely with suppliers, service providers, customers, and other partners, organizations can not only enhance their own AI capabilities but also drive broader industry innovation. “The holy grail of healthcare and pharmaceutical firms is the ability to access patient records at scale and identify patterns that could uncover routes to more effective treatments,” the report notes, emphasizing the transformative potential of ecosystem collaboration.

Strategic GenAI Adoption is Key

As generative AI continues to reshape the business landscape, organizations must be strategic in their approach to adoption. PwC’s six key priorities—managing risk, aligning AI with digital strategy, experimenting with scaling in mind, developing a productivity plan, putting people at the center, and collaborating with the ecosystem—provide a roadmap for enterprises looking to succeed in this new era.

While it’s still early days for generative AI, the lessons learned from these early adopters will be invaluable as the technology matures. By following these priorities, organizations can not only navigate the complexities of AI adoption but also position themselves as leaders in the next wave of digital transformation.

The Evolving Role of the CIO

Historically, CIOs were primarily tasked with managing an organization’s IT infrastructure, ensuring that systems were operational and that data was secure. Today, however, the role of the CIO has expanded dramatically. As Tim Crawford, a prominent CIO advisor, explains, “CIOs are now expected to have a strategic vision that aligns with the overall business goals. They are not just technology leaders; they are business leaders who must understand how technology can drive growth and innovation.”

This shift is largely driven by the increasing pace of technological change. “Technology and the capabilities are moving too fast,” says Isaac Sacolick, another leading CIO advisor. “CIOs really need to have a documented vision and strategy around this. It’s not enough to keep the lights on anymore; they need to be leading the charge in exploring new technologies and integrating them into the business in ways that create value.”

Strategic Leadership in the Age of AI

One of the most significant challenges CIOs face today is the integration of AI into their organizations. Generative AI, in particular, has captured the imagination of both the public and the business community, thanks to its potential to revolutionize everything from content creation to customer service. However, with this potential comes a host of challenges, from managing data privacy to ensuring that AI tools are used ethically and effectively.

“CIOs are being asked, ‘Where does AI fit in? Where does it not fit in?'” says Crawford. “The real issue is how to navigate through that to ensure that you are embracing generative AI while putting up the necessary guardrails.” The rapid adoption of AI technologies requires CIOs to be not only technologically savvy but also adept at managing the cultural and organizational changes that come with these new tools.

Moreover, CIOs must address the concerns of employees who may fear that AI will replace their jobs. “There is a lot of concern about job loss,” Crawford continues. “Most of it may be misplaced, but it’s a reality that CIOs have to address. They need to be leaders who can guide their organizations through these transitions, helping employees understand the value that AI can bring and how it can enhance their roles rather than replace them.”

Driving Business and Engineering Alignment

Another critical aspect of the CIO’s role is fostering alignment between the business and engineering teams. As one CIO from a major financial institution explains, “Engineers generally start with the ‘how’ and then navigate their way through the ‘what’ and ‘why.’ But the transition now is to reverse that process, starting with ‘why’ to bring engineers and business leaders closer together. The point of conjunction is the client. When you start thinking about the client first, it changes everything.”

This approach not only aligns technical teams with the broader business objectives but also accelerates project delivery. “The difference between speed and velocity is key,” the CIO adds. “Velocity is speed with a vector that is aligned. It might take longer to start a project because you need to ensure alignment, but overall, the time from idea to delivery is shorter because everyone is clear on what needs to be built and why.”

Managing Technical Debt and Regulatory Compliance

In addition to driving innovation, CIOs must also manage the less glamorous aspects of their role, such as reducing technical debt and ensuring compliance with regulatory requirements. “One of the very first things I did was to celebrate the retirement of technical debt as much as the release of a new project,” notes the same CIO. “That changes everything because it makes people want to work on it. Reducing technical debt is crucial for building a modern, maintainable, and scalable infrastructure.”

It is the job of the Chief Information Officer (CIO) to assist in improving business results, not just to run and maintain information systems. In today’s enterprise, if the CIO believes his or her job is to run and maintain systems, “CIO” should stand for Career Is Over! pic.twitter.com/qBLgffiz9c

— Samuel Holcman (@SamHolcman) August 16, 2024

Balancing the need for speed and innovation with the demands of regulatory compliance is another challenge. In heavily regulated industries, such as finance, CIOs must navigate a complex landscape of rules and regulations while still pushing the envelope in terms of technological advancement. “You need to be mindful of how you manage risk,” the CIO explains. “If navigated correctly, compliance can actually allow you to go faster and be more efficient.”

The Future of the CIO Role

As organizations continue to rely more heavily on technology, the role of the CIO will only become more critical. CIOs are not just overseeing IT departments; they are central to shaping the future of their organizations. This includes making strategic decisions about where and how to invest in new technologies, managing complex projects that span multiple departments, and ensuring that their organizations are prepared to face the challenges of tomorrow.

However, as Crawford warns, “CIOs need to be better leaders. The rubber is hitting the road, and we’ve got to step up to the challenge.” This means not only keeping up with the latest technological trends but also developing the soft skills needed to lead diverse teams and influence decision-making at the highest levels of the organization.

Going Forward

In 2024, the role of the CIO is more critical than ever. As the pace of technological change accelerates, CIOs must be at the forefront, driving innovation, managing risk, and ensuring that their organizations are well-positioned to thrive in an increasingly digital world. This requires a unique blend of technical expertise, strategic vision, and leadership skills—qualities that will define the successful CIOs of the future.

The journey is challenging, but as one CIO aptly puts it, “It’s a journey, but if we stay focused on our goals, celebrate our successes, and learn from our failures, we can create an organization that is not only resilient but also capable of achieving great things.”

AI: The Catalyst for Innovation

AI has become more than just a tool for optimizing business processes; it is a force driving profound changes across industries. According to Peter Altabef, the potential of AI, particularly generative AI, goes beyond traditional boundaries, enabling companies to explore new business models and customer engagement strategies. “AI has moved from being a tool of efficiency to becoming an engine of innovation,” Altabef explained, emphasizing that the technology is reshaping the way organizations think about growth and competitive advantage.

At Unisys, this shift is evident in how AI is integrated into client solutions and internal operations. Altabef noted that the impact of generative AI, which has only been around for a few years, has been nothing short of transformative. “Generative AI has dramatically changed the game,” he said, pointing out that the technology allows businesses to imagine and create new possibilities that were previously out of reach. This leap in capability is driving companies to rethink their strategies, not just in terms of improving existing processes but in completely reimagining how they serve their customers and operate in the market.

Beyond Incremental Improvements

The CEO also highlighted the importance of moving beyond incremental improvements, urging companies to embrace AI’s potential to drive game-changing innovations. “This is about more than just doing the same things faster or cheaper,” Altabef remarked. “It’s about creating entirely new ways of doing business that can open up new revenue streams and expand market share.” This mindset shift from efficiency to innovation is what sets forward-thinking companies apart in today’s rapidly evolving technological landscape.

Altabef stressed that for AI to truly be a catalyst for innovation, it must be integrated into the core business strategy rather than treated as a separate or ancillary initiative. “AI needs to be part of the DNA of the organization,” he said. “It has to be woven into the fabric of how decisions are made, how products are developed, and how customers are engaged.” By embedding AI into the strategic framework, companies can ensure that they are not only keeping pace with technological advancements but also leveraging them to drive meaningful, long-term growth.

Fostering a Culture of Innovation

This approach, however, requires a commitment to continuous learning and experimentation. Altabef emphasized that organizations must foster a culture that encourages innovation at every level, from the boardroom to the front lines. “Innovation doesn’t happen in a vacuum,” he said. “It requires a culture that supports risk-taking, that values new ideas, and that is constantly looking for ways to improve and evolve.” For Unisys, this means empowering employees with the tools and training they need to harness the power of AI and apply it creatively to solve complex business challenges.

Ultimately, Altabef believes that AI’s true value lies in its ability to drive not just efficiency, but transformation. “The real promise of AI is not just in doing things better, but in doing things differently,” he concluded. This vision of AI as a transformative force is what will propel companies into the future, enabling them to not only survive in a competitive market but to thrive by continuously innovating and adapting.

The CIO’s Role in AI Transformation

As AI becomes increasingly central to business strategy, the role of the CIO has transformed from managing IT infrastructure to becoming a key driver of innovation and strategic growth. Peter Altabef emphasized that today’s CIOs are uniquely positioned to lead AI initiatives across the enterprise, bridging the gap between technology and business objectives. “This is not just about keeping the lights on anymore,” Altabef said. “CIOs are now at the forefront of transforming their organizations by leveraging AI to unlock new opportunities and drive competitive advantage.”

One of the critical responsibilities of a CIO in this new landscape is to ensure that AI initiatives align with the overall business strategy. Altabef noted that this requires a deep understanding of both the technology and the business, as well as the ability to communicate effectively with other C-suite executives. “A successful CIO must be able to translate technical capabilities into business value,” he explained. “It’s about speaking the language of the CEO, the CFO, and the CMO, and showing them how AI can drive revenue, improve customer experiences, and open up new markets.”

Strategic Communication and Collaboration

Effective communication is not just about conveying technical details; it also involves fostering collaboration across departments to ensure that AI initiatives are implemented successfully. Altabef highlighted the importance of CIOs working closely with other executives to break down silos and encourage a more integrated approach to AI. “Cross-functional collaboration is essential,” he said. “CIOs need to work hand-in-hand with other leaders to ensure that AI is not just a technology initiative, but a strategic initiative that impacts every part of the business.”

Altabef also stressed the importance of involving the entire C-suite in AI discussions, as the technology increasingly influences not only operational efficiency but also strategic direction. “CIOs are no longer working in isolation,” he pointed out. “The decisions they make regarding AI can have far-reaching implications for the company’s future, which is why it’s crucial to have input from all senior leaders.” This collaborative approach helps to ensure that AI projects are aligned with broader business goals and that the full potential of the technology is realized.

Balancing Innovation with Risk Management

While driving innovation is a key part of the CIO’s role, managing the risks associated with AI adoption is equally important. Altabef underscored the need for CIOs to take a balanced approach that encourages experimentation while also maintaining a focus on security, privacy, and ethical considerations. “AI presents tremendous opportunities, but it also comes with significant risks,” he said. “CIOs must navigate these challenges carefully, ensuring that their AI initiatives are not only innovative but also responsible.”

This responsibility extends to ensuring that AI systems are transparent and accountable, particularly as they become more integrated into critical business processes. “The role of the CIO includes setting the standards for how AI is developed and used within the organization,” Altabef explained. “This means putting in place the right governance frameworks to oversee AI projects, from data management to algorithmic fairness.” By establishing these safeguards, CIOs can help build trust in AI systems and ensure that their deployment enhances the organization’s reputation rather than jeopardizing it.

Empowering the Organization Through AI

Finally, Altabef emphasized that CIOs must also play a key role in empowering their organizations to embrace AI. This involves not only implementing the technology but also fostering a culture of innovation and continuous learning. “CIOs are the catalysts for change within their organizations,” he said. “They need to provide the tools, training, and support that teams need to harness AI effectively and to apply it in ways that drive real business value.”

For Altabef, the ultimate goal is for AI to become a seamless part of the organization’s operations and strategy, guided by the vision and leadership of the CIO. “The best CIOs are those who can integrate AI into the very fabric of their company,” he concluded. “They understand that AI is not just a tool, but a transformative force that, when managed effectively, can lead to unprecedented growth and success.”

Disciplined Investment in AI

In an age where AI is often heralded as the next frontier of business transformation, Peter Altabef, Chair and CEO of Unisys, advocates for a disciplined approach to AI investment. For Altabef, the allure of AI should not overshadow the necessity of aligning investments with strategic business objectives. “It’s easy to get caught up in the hype,” Altabef noted. “But to realize true value from AI, you need a clear investment strategy that prioritizes projects with a solid business case and measurable ROI.”

At Unisys, this disciplined approach is reflected in the careful evaluation of AI initiatives before they are greenlit. Altabef emphasized that AI projects must not only be innovative but also strategically aligned with the company’s goals. “We don’t chase trends for the sake of it,” he explained. “Every AI project must demonstrate its potential to contribute to our broader business objectives. Whether it’s improving operational efficiency, enhancing customer experiences, or opening new revenue streams, the focus is always on tangible outcomes.”

Prioritizing ROI and Strategic Alignment

One of the key aspects of Unisys’s AI strategy is the rigorous assessment of ROI. Altabef described how AI projects are vetted based on their potential to deliver returns, not just in terms of financial gain but also in their strategic impact. “We ask ourselves, ‘What is the real value of this project?’ If a project doesn’t align with our strategic priorities or fails to demonstrate a clear ROI, it doesn’t move forward,” he said. This approach ensures that resources are allocated efficiently, avoiding the common pitfall of investing in AI projects that may be impressive in concept but lack practical business value.

Altabef also highlighted the importance of regular reporting and accountability in maintaining this disciplined investment approach. “We expect our teams to provide regular updates on AI projects, including progress towards ROI targets,” he explained. “This not only keeps everyone focused on the end goals but also allows us to make informed decisions about whether to continue, scale, or pivot a project.” By maintaining a clear line of sight on project outcomes, Unisys ensures that its AI investments contribute meaningfully to the company’s success.

Expanding the AI Portfolio with Care

While maintaining discipline, Unisys has still significantly expanded its AI project portfolio, growing from 51 projects in early 2022 to 135 by mid-2023. Altabef attributes this growth to the company’s methodical approach to identifying and scaling AI opportunities. “We’re seeing real traction across the company because we’ve been careful about where and how we invest in AI,” he said. The company categorizes AI initiatives into proofs of concept, pilots, and production, ensuring a balanced and scalable approach to implementation. “It’s about building a strong foundation first, then scaling those projects that have proven their worth,” Altabef explained.

This careful expansion is driven by a commitment to maximizing the impact of AI across all business functions. Altabef noted that Unisys doesn’t just deploy AI for the sake of innovation; it does so with the intention of driving meaningful change. “We’re not interested in AI projects that are just cool or cutting-edge; we’re interested in those that can fundamentally improve our business and that of our clients,” he said. This focus on value creation ensures that Unisys’s AI investments are not only sustainable but also transformative in the long run.

Balancing Innovation with Investment Discipline

Even as Unisys expands its AI portfolio, Altabef remains adamant that each project must meet the company’s rigorous standards for investment. This balance between innovation and discipline is critical to avoiding the pitfalls of chasing every new trend that emerges. “It’s about being strategic rather than reactive,” Altabef emphasized. “We’re constantly evaluating the landscape, but we’re also very deliberate in how we proceed. This ensures that our AI initiatives are not just experiments but are grounded in our broader business strategy.”

For Altabef, this disciplined approach is what will allow Unisys to harness the full potential of AI while ensuring that resources are used wisely. “The key to successful AI adoption is not just in how much you invest, but in how wisely you invest,” he concluded. “By staying focused on strategic alignment and ROI, we’re able to make AI a true driver of innovation and growth, rather than just another cost center.” This philosophy of disciplined investment is what will continue to guide Unisys as it navigates the complexities of the AI landscape and positions itself for future success.

Leadership and Cultural Transformation

As AI continues to reshape the business landscape, Peter Altabef, Chair and CEO of Unisys, emphasizes that the successful adoption of AI is not solely dependent on technology but also on leadership and cultural transformation. For Altabef, cultivating a culture that embraces change and continuous learning is critical to navigating the complexities of AI-driven transformation. “AI isn’t just a technological shift; it’s a cultural one,” he remarked. “Leaders must be prepared to guide their organizations through this change, fostering an environment where innovation can thrive.”

At the heart of this cultural transformation is a commitment to servant leadership, a model that Altabef champions as essential in times of significant technological change. “Servant leadership is about putting the needs of your team first, helping them succeed, and removing obstacles in their path,” he explained. In the context of AI adoption, this approach involves empowering employees at all levels to embrace new technologies and take ownership of their roles in the AI journey. “Our goal is to create a culture where everyone feels engaged and supported as they adapt to new ways of working,” Altabef said.

Fostering a “Let Me Help” Culture

One of the key strategies Unisys has implemented to foster this culture is the promotion of a “let me help” mindset, where collaboration and mutual support are central to the organization’s values. Altabef highlighted how this cultural ethos has been instrumental in enabling Unisys to navigate the challenges of AI-driven change. “We’ve made it clear that no one is going through this transformation alone,” he said. “Whether it’s through training, mentoring, or just being there for each other, we are committed to helping our employees succeed in this new landscape.”

This approach to leadership and cultural transformation is particularly important in addressing the fear and uncertainty that often accompany major technological shifts. Altabef noted that by prioritizing open communication and transparency, leaders can build trust and resilience within their teams. “People are naturally apprehensive about change, especially when it comes to something as significant as AI,” he acknowledged. “By being transparent about our goals and the steps we’re taking, and by showing a genuine commitment to their well-being, we can help alleviate those fears and get everyone moving in the same direction.”

Empowering the Workforce Through Education and Training

Education and training are also central to Unisys’s strategy for cultural transformation. Recognizing that the successful implementation of AI requires new skills and knowledge, the company has invested heavily in upskilling its workforce. “We believe in continuous learning, and we’ve made it a priority to provide our employees with the tools and training they need to thrive in an AI-enabled world,” Altabef said. This commitment to education not only equips employees with the technical skills necessary for AI but also empowers them to innovate and contribute to the company’s success.

Altabef emphasized that this focus on training goes beyond just technical education; it also includes fostering a mindset of curiosity and creativity. “We encourage our employees to think about the art of the possible,” he explained. “It’s not just about learning how to use AI, but about imagining new ways to apply it that can drive real business value.” By cultivating this culture of innovation, Unisys is positioning itself to not only adapt to AI but to lead in its implementation.

Leading by Example in Times of Change

Altabef also underscored the importance of leading by example during periods of significant change. As Unisys has navigated its AI journey, Altabef has made a point of personally engaging with employees, demonstrating his commitment to the company’s cultural transformation. “Leadership isn’t just about setting the vision; it’s about being actively involved in the process,” he said. This hands-on approach has helped to reinforce the company’s commitment to its employees and has played a crucial role in maintaining morale and cohesion during the transition.

Ultimately, Altabef believes that leadership and culture are the foundations upon which successful AI adoption is built. “Technology alone won’t drive transformation,” he concluded. “It’s the people, the leadership, and the culture that determine whether a company will succeed in leveraging AI to its full potential. At Unisys, we’re committed to leading with empathy, fostering a culture of continuous learning, and empowering our employees to be at the forefront of this change.” This focus on leadership and cultural transformation ensures that Unisys is not just keeping up with technological advancements but is actively shaping the future of AI in the enterprise.

Looking Ahead: Quantum Computing and Beyond

As Unisys continues to harness the transformative power of AI, Peter Altabef, Chair and CEO, is already looking to the next horizon—quantum computing. For Altabef, quantum computing represents a significant leap forward, one that could further amplify the capabilities of AI and redefine the technological landscape. “Quantum computing isn’t just another step forward; it’s a potential game-changer that could unlock new levels of performance and problem-solving capabilities,” Altabef remarked. While quantum computing is still in its early stages, Altabef emphasized that now is the time for companies to start preparing for its eventual impact.

Unisys is already exploring the potential of quantum computing in specific areas, such as optimization and cryptography. Altabef highlighted the company’s work with quantum annealing, a specialized form of quantum computing that is well-suited for solving complex optimization problems. “We’re not waiting for general-purpose quantum computers to become viable; we’re leveraging quantum annealing today to tackle some of the most challenging optimization issues in logistics and other sectors,” he explained. This proactive approach ensures that Unisys is not only ready for the future but is actively shaping it.

Preparing for the Quantum Revolution

In addition to optimization, Unisys is also focused on post-quantum cryptography, a crucial area given the potential for quantum computing to disrupt current encryption methods. Altabef pointed out that as quantum technology advances, the need for robust security measures will become increasingly urgent. “The threat posed by quantum computing to traditional encryption is real, and we’re taking steps now to protect our clients’ data against future threats,” he said. By staying ahead of these developments, Unisys is positioning itself as a leader in the next wave of technological innovation.

Looking beyond quantum computing, Altabef sees a broader technological evolution that will continue to reshape industries. He believes that the combination of AI and emerging technologies like quantum computing will open up new possibilities for innovation and growth. “We’re entering an era where AI and quantum computing will intersect, creating opportunities that we can’t even fully imagine yet,” he noted. For Unisys, this means not only staying at the cutting edge of technology but also ensuring that these advancements are integrated into the company’s strategic vision.

The Future of Enterprise Technology

As Unisys looks to the future, Altabef is clear that the company’s success will depend on its ability to adapt and innovate continuously. This forward-thinking approach is central to Unisys’s strategy, ensuring that the company is not just responding to changes in the technological landscape but actively driving them. “The key to staying competitive in the coming years will be our ability to embrace new technologies like quantum computing while continuing to push the boundaries of what’s possible with AI,” Altabef stated.

Ultimately, Altabef believes that the combination of AI, quantum computing, and a strong leadership culture will enable Unisys to thrive in an increasingly complex and competitive market. “We’re not just investing in technology; we’re investing in the future of our company and our clients,” he concluded. By maintaining a disciplined approach to innovation, fostering a culture of continuous learning, and staying ahead of emerging trends, Unisys is positioning itself to lead in the next chapter of enterprise technology.

As the company prepares for the future, Altabef’s vision is clear: to leverage the full potential of AI and quantum computing to drive meaningful change. “The real promise of these technologies lies in their ability to transform businesses and create new opportunities,” he said. With a focus on strategic investment, leadership, and innovation, Unisys is well on its way to realizing that promise and shaping the future of enterprise technology.

A massive Microsoft outage has unleashed havoc on computer systems worldwide, grounding flights and crippling banks, stock exchanges, payment systems, and emergency services. Approximately six hours after the outage was first reported, Microsoft tweeted that “Multiple services are continuing to see improvements in availability as our mitigation actions progress.” Despite these assurances, the ripple effects of the outage have been felt across various sectors, causing significant disruptions.

The outage is reportedly due to the failure of CrowdStrike Falcon, a cybersecurity platform that provides security solutions for Microsoft Windows. The disruptions continued for hours, even after Microsoft began implementing fixes. This incident underscores the vulnerability of interconnected digital systems and the far-reaching impact of a single point of failure.

Global Impact

The global impact of this outage has been profound. In India, the disruption has primarily affected flights, with many cancellations and delays reported. Ayush Eladi, Tech Editor from Business Today TV, provided insights on the broadcast. “It’s overwhelming to see what’s playing out globally. In India, the impact is largely on flights, but globally, it’s extremely severe,” he said. Eladi highlighted that the outage has paralyzed systems worldwide, leading to significant losses.

Beyond India, the outage has caused chaos in major cities around the world. Airports, banks, stock exchanges, and emergency services have all been hit. The scale of the disruption is unprecedented, with many services still struggling to recover. The financial implications are staggering, with billions of dollars in losses expected.

Statements from Microsoft and CrowdStrike

Both Microsoft and CrowdStrike have issued statements to clarify the situation. Microsoft acknowledged an issue affecting Windows devices due to third-party software, specifically CrowdStrike’s Falcon sensor software. George Kurtz, CEO of CrowdStrike, issued a statement saying, “We know this is impacting Windows devices, but it’s not a security incident or a cyberattack; it is a system update failure.” This clarification aimed to reassure customers and stakeholders about the nature of the problem.

However, the damage had already been done. The deployment of the problematic update early on Friday morning triggered a cascade of failures across systems worldwide. Despite CrowdStrike issuing a fix, the recovery process has been slow, with IT teams working tirelessly to implement the necessary updates.

Legal Implications and Losses

The legal implications of this outage are still unfolding. With billions of dollars in potential damages, the question of liability looms large. “Who’s liable for the billions of dollars in damages?” Eladi questioned. “Understanding the full extent of the losses will take days, if not weeks.” Companies affected by the outage are likely to seek compensation, leading to a protracted legal battle.

The financial impact is equally significant. The outage has not only disrupted services but also shaken investor confidence. Stocks of affected companies, including CrowdStrike and Microsoft, have seen fluctuations, adding to the economic fallout. The true cost of this incident will only become clear in the coming days.

India’s Relative Resilience

In India, the impact has been somewhat less severe compared to other countries. Airports are the primary sites of disruption. Despite significant delays and cancellations, institutions like SBI and NSE reported minimal impact. “This might be due to the use of different cloud solution providers or robust cybersecurity measures,” Eladi noted. The resilience shown by Indian systems highlights the importance of having diverse and robust security measures in place.

However, the situation at Indian airports remains chaotic. Manual processes have taken over where digital systems have failed, leading to long queues and frustrated passengers. The ability to adapt quickly and implement manual solutions has mitigated some of the impacts, but the challenges are far from over.

Ground Reports from India

Reports from various airports in India reveal chaos and confusion. At Mumbai International Airport, long queues and disgruntled passengers are common sights. “People are not getting timely updates from airlines,” reported one correspondent. “Many passengers, like those on an Indigo flight to Nagpur, were informed of cancellations only at the last minute.” The lack of communication has added to the frustration and confusion among travelers.

Shilpa Nair, reporting from Chennai Airport, shared similar scenes of frustration. “Several flights have been delayed or canceled. Passengers are waiting in long queues to get updates from airline counters. As of now, 10 arrival and 11 departure flights have been canceled, with many more delayed,” she said. The situation highlights the critical need for effective communication during such crises.

Global Disruptions

The situation is even more dire globally. London’s Heathrow Airport, one of the busiest in the world, has seen significant disruptions. Lavina Tund, reporting from Terminal 3, described the scene: “Passengers, particularly from American Airlines, are stranded. Many do not know if they will be provided accommodation for the night.” The chaos at Heathrow is mirrored in airports across the world.

In Australia, the impact has been severe, with Sydney Airport experiencing widespread disruption. “Our flight was canceled, and finding accommodation in Sydney is proving difficult,” said one passenger. Similar chaos was reported in other major cities like Dubai and Los Angeles, where flights were grounded, and passengers faced long delays. The global nature of the outage has exposed vulnerabilities in the travel infrastructure.

Expert Insights

Cyber expert Kanish Gore provided insights into the technical aspects of the outage. “This is a major security lapse on the part of CrowdStrike. Their Falcon sensor, which provides security for Microsoft systems, is the root cause of this global disruption,” he explained. “It’s affecting banks, hospitals, airports, and more. Companies are now invoking their Business Continuity Plans to manage operations.” The technical explanation underscores the complexity of modern cybersecurity challenges.

Gore also emphasized the importance of robust cybersecurity measures. “Normally, such disruptions take a minimum of four to five hours to resolve. Companies invoke their BCP plans to ensure continuity of operations. Microsoft and CrowdStrike will have to work together to ensure systems are back online,” he added. The path to recovery will require coordinated efforts from multiple stakeholders.

The Road Ahead

The path to resolution remains uncertain. While CrowdStrike and Microsoft are working to implement fixes, the global scale of the outage means recovery will be uneven and prolonged. “It’s not a snap-of-the-finger solution,” said Cyrus John, an emerging tech editor at IndiaToday.in. “Fixes are being deployed in phases, and it could take hours or even days for all systems to be fully operational.” The gradual nature of the recovery process adds to the uncertainty.

As the world grapples with the fallout from this unprecedented outage, the focus remains on restoring normalcy and understanding the broader implications for cybersecurity and global IT infrastructure. The coming days will be crucial in assessing the full impact of this event and preventing similar occurrences in the future. The incident serves as a stark reminder of the interconnectedness and fragility of modern digital systems.

The CSA is an organization dedicated to helping secure cloud computing. A survey the organization conducted with Netskope found that DLP solutions are a critical component used in cloud security.

Unfortunately, that’s where the good news ends. While companies are relying on DLP systems, nearly a third struggle to use them effectively.

Among the top challenges cited by organizations are management difficulties (29%), too many false positives (19%), the need for manual version upgrades (18%), and deployment complexity (15%).

“DLP solutions are an integral part of organizations’ data security strategy, but leaders are still struggling with this strategy and the implementation of solutions, especially for how complicated legacy and on-prem based solutions are to manage and maintain,” said Naveen Palavalli, Vice President of Products, Netskope. “These findings highlight the need for a comprehensive and easy-to-use cloud delivered data protection solution that integrates into their existing security controls and is a key tenant of their Zero Trust security strategy.”

Cloud security is increasingly in the spotlight as more and more organizations experience data breaches at a time when the cloud is becoming integral to more companies and industries.

The Biden administration has signaled it is preparing to regulate cloud security in an effort to better protect organizations. If the CSA’s findings are any indication, it looks like the industry could use the help.

In a conversation between Foundry’s VP of Corporate Marketing, Rachael Ferranti, and Executive Editor of CIO Communities, Lee Rennick, two senior IT leaders we discussed balancing the dual roles of leadership and execution. This dialogue is part of the “State of the CIO 2024” report, highlighting today’s CIOs’ challenges and opportunities.

The Dual Role: Strategist and Practitioner

One of the major pain points identified in the study is the CIO’s struggle to balance their roles as strategists and practitioners. Addressing security threats was their number one distraction, pulling them away from strategic or innovative tasks,” Ferranti noted. This constant juggling act can be incredibly frustrating for CIOs who aspire to play a more significant role in their organization’s strategic planning.

Rennick emphasized the increasing importance of leadership skills among CIOs. “There’s a greater awareness of what it means to be a leader,” she said. Companies are investing more in leadership training and development, ensuring CIOs have the tools they need to succeed in these dual roles. However, the report also acknowledges the challenges posed by the demanding workload and the constant need to address security threats.

Collaboration and Security Challenges

The conversation also touched on the growing collaboration between Chief Information Security Officers (CISOs) and CIOs. “Over the last year, there has been greater collaboration between the CISO and the CIO, or in some cases, the CIO taking on the security remit,” Rennick explained. This collaboration is essential, given the persistent shortage of skilled security professionals. “One CIO I spoke with said it took 168 days to hire a security manager,” she added, highlighting the difficulties in staffing effective security teams.

These challenges underscore the need for CIOs to be adaptable and resourceful. Rennick shared insights from an interview with NATO’s CIO, Manfred Boudreaux-Dehmer, who described the unique challenges of leading a team of CIOs from 31 partner countries. “He paints the vision of the North Star and ensures everyone follows it,” she said. This ability to provide a clear strategic direction while managing day-to-day operations is crucial for modern CIOs.

The Importance of Visionary Leadership

In discussing leadership, Rennick and Ferranti explored how CIOs can balance their roles as visionaries and executors. Boudreaux-Dehmer’s approach to leadership at NATO involves setting a clear vision and empowering his team to achieve it. “You need to collectively come up with your team and define a vision that is in line with the business vision,” he explained. “Then you need to paint that on the sky and refer to the North Star at all times.”

This visionary approach is complemented by the practical aspects of leadership, such as fostering a supportive and psychologically safe environment. “You need to support an encouraging, open, and very supportive environment where everybody is enabled to give their very best,” Boudreaux-Dehmer added. This balance of strategic vision and hands-on execution is what makes effective leadership in the CIO role.

The Strategic Role of the CIO

The evolving role of the CIO also involves closer collaboration with senior leadership and a more significant presence in the boardroom. “79% of CIOs reported having a closer relationship with the CEO and the board of directors,” Ferranti noted. This alignment with senior leadership ensures that IT initiatives support broader business goals. “It’s about collaboration with the C-suite and the board. It’s IT for business sake, not IT for IT sake,” she emphasized.

John Penard, CIO and CISO at Duo Financial Credit Union echoed these sentiments in a recent interview. “I spend as much time with our senior leadership team talking about business development as I do with my technical team on what we need to do from a technical side,” he said. This shift reflects the broader trend of CIOs becoming integral to business strategy and decision-making processes.

The Future of the CIO

The role of the CIO is increasingly pivotal in the modern business landscape, evolving far beyond its traditional confines. With CIOs now serving as key strategic advisors to CEOs and board directors, their influence on corporate strategy is profound. This year’s study reveals that while CIOs are making significant strides in driving innovation and strategic initiatives, they are often pulled away by the urgent need to manage security crises hands-on.

The dual role of the CIO as both a strategist and a practitioner is demanding. “Addressing security threats was their number one distraction, pulling them away from strategic or innovative tasks,” noted Rachael Ferranti, Foundry’s VP of Corporate Marketing. This constant tug-of-war between innovation and execution requires CIOs to be highly adaptable and resourceful.

Collaboration with other C-suite executives has become critical to the CIO’s role. “The relationship between CIOs and other members of the executive team is more critical than ever,” Ferranti emphasized. Ensuring that IT initiatives are aligned with the overall business strategy is essential for achieving organizational goals. The State of the CIO 2024 report found that “79% of CIOs reported having a closer relationship with the CEO and the board of directors,” underscoring the increasing strategic importance of the CIO role.

John Penard, CIO and CISO at Duo Financial Credit Union highlighted the shift in the CIO’s responsibilities: “I spend as much time with our senior leadership team talking about business development as I do with my technical team on what we need to do from a technical side.” This shift reflects the broader trend of CIOs becoming integral to business strategy and decision-making processes.

Leadership skills are also becoming more crucial for CIOs. “Companies are investing more in leadership training and development, ensuring CIOs are equipped with the tools they need to succeed in these dual roles,” said Lee Rennick, Executive Editor of CIO Communities. This investment in leadership development helps CIOs build strong, adaptive teams capable of navigating the challenges of a rapidly changing technological landscape.

The future of the CIO involves balancing these diverse demands while fostering a culture of innovation and strategic thinking. “Innovation is at the heart of what we do. As CIOs, we must always be on the lookout for emerging technologies that can drive our business forward,” said Penard. CIOs can maintain a competitive edge by staying informed about the latest trends and continuously seeking new ways to leverage technology.

In conclusion, the modern CIO must be a visionary leader and a hands-on practitioner. By fostering collaboration, investing in leadership development, and leveraging innovative technologies, CIOs can navigate the complexities of their roles and drive their organizations toward greater success. As we move further into 2024, the strategic importance of the CIO will only continue to grow, making their contributions critical to the success and security of their organizations. “The modern CIO is a visionary leader and a hands-on practitioner, guiding their organizations through the ever-changing landscape of technology and business,” Ferranti concluded.

The IT services industry is often overlooked in favor of flashier tech segments like cloud computing and AI, but its growth story is no less remarkable. Forrester’s report reveals that IT services currently capture over a third of global tech spending, dwarfing the annual expenditure on computer equipment.

“By 2028, annual spending on IT services will reach $2 trillion,” noted Michael O’Grady, principal forecast analyst at Forrester. “Despite strong forecasted growth over the next few years, IT service firms must stay ahead of current challenges, including optimizing headcount for cost and efficiency, staying abreast of competition from software and engineering firms, and utilizing GenAI judiciously to reshape service delivery.”

Key Drivers of Growth

Financial Services and Manufacturing
Financial services, manufacturing, and energy are central to the IT services industry’s growth, with the ten largest companies generating 44% of their revenue from these segments. Accenture estimates that only 5% of manufacturing and engineering companies scale mature digital capabilities across their organizations, highlighting a significant opportunity for IT service firms to expand.

Managed Services
Infrastructure as a service (IaaS) is projected to nearly double its share of the IT services market, growing from 8% in 2022 to 15% in 2028. AWS, Microsoft Azure, and Google Cloud are leading the way, benefiting from an enterprise shift toward cloud-based infrastructure. Google Cloud and AWS saw growth rates of 26% and 13%, respectively, in 2023, while Azure and other cloud services experienced 17% growth for Microsoft.

Cybersecurity
Cybersecurity spending remains a critical driver of growth. Canalys estimates that two-thirds of the $224 billion projected for 2024 will be allocated to IT services such as consulting, outsourcing, managed services, solution deployment and integration, maintenance, and support.

Generative AI and Automation
Generative AI (GenAI) is reshaping how IT services are delivered. In the US, 57% of the jobs lost to automation in professional services are expected to be directly attributable to GenAI. By increasing productivity and reducing project delivery costs, GenAI could free up resources to tackle project backlogs and support the shift toward project onshoring as parts of consultant roles become semi-automated. For IT service companies, harnessing the productivity gains of automation will be crucial to improving margins while managing headcount reductions.

Market Overview and Regional Dynamics

The global IT services market is poised for robust growth, with Forrester forecasting annual spending to reach $2 trillion by 2028. This growth will be fueled by an average annual growth rate of 4.6% across the industry. While infrastructure as a service (IaaS) is expected to lead the way, averaging nearly 16% growth annually, other critical segments like cybersecurity and managed services will also contribute significantly.

Regional Trends and Dynamics
Growth in the IT services market will not be uniform across regions. Asia-Pacific is set to outpace the global average, with nearly 6% annual growth driven by rapid digital transformation in emerging economies and a growing appetite for advanced IT solutions. Countries like India, China, and Japan are becoming innovation hubs for technology services, particularly in areas like cloud computing, artificial intelligence, and cybersecurity.

North America remains the largest market for IT services, with the US leading the charge in cloud adoption, cybersecurity, and managed services. The region’s financial services, healthcare, and retail sectors are substantial consumers of IT services, reflecting their need to stay competitive through digital innovation. Major US companies like Accenture, IBM, and Cognizant are investing heavily in emerging technologies like generative AI to bolster their service offerings.

In Europe, the IT services industry is expected to grow more modestly, at approximately 4.5% annually. This growth will be driven by heightened regulatory compliance requirements and the need to modernize legacy IT systems across the continent. European companies are increasingly partnering with US and Asian IT service providers to gain access to global expertise and advanced technologies, particularly in cybersecurity and cloud computing.

Latin America and the Middle East and Africa (MEA) are emerging as promising markets due to rising IT adoption rates and their respective governments’ digital transformation efforts. Latin American companies increasingly source IT services from global firms with nearshoring capabilities in the region, such as Eastern Europe. In MEA, governments invest in digital infrastructure projects, creating opportunities for IT service firms to capitalize on cloud computing, data analytics, and cybersecurity services.

Strategic Challenges for IT Services Firms

Despite strong projected growth, the global IT services industry anticipates subdued results in 2024 due to economic headwinds like trade conflicts and geopolitical tensions. Forrester outlines several key challenges IT services firms must address.

Optimizing Headcount and Automation
One of the primary challenges facing IT service companies is balancing headcount and automation. Many firms expanded their workforce to meet the pandemic-fueled surge in demand, only to now find themselves needing to reduce their payrolls. According to Forrester, headcount and revenue have historically been closely linked, meaning that workforce reductions could negatively impact service quality and profitability.

Automation, especially through generative AI, offers significant productivity gains that could help IT service companies cut costs and improve margins. However, while many firms explore automation, most of its benefits remain unrealized. For instance, integrating generative AI into professional services could reduce 57% of jobs due to automation, according to Forrester. Nevertheless, these productivity gains could free up resources to address project backlogs, optimize project delivery costs, and streamline internal processes.

Managing Competition from Software and Engineering Firms
Competition from adjacent sectors, particularly software and engineering firms, poses a significant challenge for IT service companies. These competitors are increasingly moving into consulting, security, maintenance, digital, and networking services, traditionally dominated by IT service providers. This competition drives firms to forge closer partnerships with software companies to bolster their capabilities.

A prime example is Cognizant’s acquisition of Thirdera, strengthening its strategic partnership with ServiceNow for AI-driven automation. Collaborating with software companies allows IT service firms to tap into cutting-edge technology and offer a broader range of services, helping them stay competitive in the rapidly evolving marketplace.

Integrating Generative AI into Service Delivery
Generative AI is set to reshape service delivery by automating processes, reducing project costs, and freeing up enterprise dollars for additional modernization. Companies like Capgemini and Accenture plan to increase their in-house data and AI specialists by 17% and 11% over the next three years. However, fully integrating generative AI into service delivery presents challenges in managing workforce reductions and ensuring a seamless transition to semi-automated processes.

As parts of consultant roles become automated, firms must identify areas where human expertise is essential and upskill their workforce accordingly. This will require comprehensive training programs and strategic workforce planning to ensure employees can add value to the new AI-driven landscape.

Navigating Economic Uncertainty
Economic headwinds, driven by trade conflicts, geopolitical tensions, and budgetary caution, have dampened IT services revenue projections for the near term. Forrester predicts that real global GDP growth will only exceed pre-pandemic levels in 2025, making it crucial for IT service companies to navigate this period of uncertainty strategically.

Firms must remain agile in adjusting their business models, pricing strategies, and service offerings to align with changing market conditions. They should also explore diversifying their client base and expanding into new geographies to mitigate the risks of economic downturns in specific regions.

In summary, the IT services industry stands at a crossroads where strategic foresight, adaptability, and embracing automation determine which firms thrive and which falter. Forrester’s report emphasizes that companies that skillfully navigate these challenges will be well-positioned to capture a significant share of the $2 trillion market opportunity by 2028.

Co-Innovation and Global Collaboration

In an increasingly interconnected global economy, co-innovation and collaboration are emerging as essential strategies for IT service companies to differentiate themselves and drive growth. According to Forrester, the technology services market represents nearly half of the $4.2 trillion global tech economy, and companies that leverage strategic partnerships can maximize their potential in this rapidly evolving landscape.

To understand how organizations select and work with technology services providers, Forrester surveyed 1,955 enterprise service decision-makers globally. The study revealed that 29% of respondents see investment in emerging technologies as a primary benefit of partnering with IT service firms. In particular, generative AI has the potential to significantly enhance productivity and streamline processes, enabling organizations to focus on higher-value activities.

Generative AI exemplifies how co-innovation can revolutionize service delivery. Providers like Accenture, Cognizant, and Capgemini actively incorporate AI tools and methodologies to transform their service offerings. Accenture, for instance, has invested billions in AI development and workforce upskilling. The firm sees a significant opportunity in AI consulting and has already booked $600 million in new generative AI-related projects. Meanwhile, Capgemini plans to increase its in-house data and AI specialists by 17% over the next three years to meet the rising demand for these skills.

Global collaboration has also become a cornerstone of IT service delivery. Nearshoring is gaining traction as enterprises seek to balance cost efficiency with the benefits of proximity. More than half of the decision-makers surveyed expect their providers to source labor from Eastern Europe, while 41% anticipate sourcing from Latin America. Working with nearshore and onshore providers facilitates seamless collaboration in blended agile teams and enables transformative work across multiple time zones.

However, successful collaboration requires a solid commitment to coordination. In the survey, 70% of respondents working with multiple providers to implement business applications indicated using outcomes-based contracts. By aligning providers with common outcome metrics, enterprises can motivate collaboration and ensure that all parties work toward shared goals.

These trends underscore the importance of treating technology services providers as extensions of an organization’s internal capabilities. Companies that adopt a strategic partnership approach focusing on shared goals and mutual success can unlock new levels of innovation and business value.

In this context, IT service companies must adapt their business models to become indispensable co-innovation partners. By fostering strategic alliances, investing in emerging technologies like generative AI, and optimizing global collaboration, they can enhance their value proposition and capture a significant share of the $2 trillion market opportunity by 2028.

Pivotal Juncture

The global IT services industry is at a pivotal juncture, facing significant opportunities and considerable challenges. Forrester’s “Global IT Services Market Forecast 2023-2028” paints a picture of substantial growth, with annual spending expected to reach $2 trillion by 2028. However, this growth is contingent upon the industry’s ability to navigate an evolving landscape shaped by automation, competition, and the rapid rise of generative AI.

Generative AI, in particular, stands as a transformative force capable of reshaping the industry. While it promises to enhance productivity, streamline project delivery, and reduce costs, it also presents challenges regarding headcount optimization and displacing traditional roles. IT service firms will need to strike a delicate balance between embracing the efficiencies of automation and maintaining a skilled workforce capable of delivering high-quality services.

Moreover, competition from software and engineering firms intensifies, with adjacent sectors increasingly encroaching on traditional IT service domains. Strategic partnerships and acquisitions will enable IT service companies to bolster their capabilities, particularly in emerging cybersecurity and AI-driven automation technologies.

The concept of co-innovation is poised to redefine how companies engage with their technology service providers. The survey findings underscore that clients seek more than just capacity and expertise; they seek partners who can bring cutting-edge technologies, strategic alliances, and a commitment to shared outcomes. Firms that deliver on this promise will stand out in a crowded marketplace.

Global collaboration and nearshoring trends offer additional avenues for growth. By sourcing talent from regions like Eastern Europe and Latin America, IT service firms can enhance their agility and facilitate closer collaboration with clients. The shift toward outcomes-based contracts further reinforces the need for coordination and shared goals across multiple providers.

The road to $2 trillion presents a complex yet rewarding journey for the global IT services industry. As Michael O’Grady, principal forecast analyst at Forrester, aptly notes, “IT service companies that manage these challenges well will thrive and scale globally.” The firms that embrace strategic partnerships, harness the power of generative AI, and navigate the intricacies of global collaboration will be best positioned to lead the market in the years ahead.

Introducing M4 Instances with Dynamic Resource Management

Central to Google Cloud’s new offerings are the M4 instances, which incorporate the latest advancements in processor technology with Intel’s Emerald Rapids chips. These instances are equipped with Google’s exclusive Dynamic Resource Management (DRM), a feature that optimizes resource allocation dynamically, ensuring high efficiency and performance. This capability allows M4 instances to offer unparalleled price-performance advantages, making them an attractive option for companies seeking to enhance their cloud capabilities while managing costs.

“The unique aspect of the M4 instances is their ability to efficiently utilize resources, which directly translates to cost savings and improved performance for our customers,” explained Yang Liu during the presentation.

Hyperdisk: Revolutionizing Cloud Storage

Another innovative introduction by Google is Hyperdisk, a high-performance storage solution designed to work seamlessly with the M4 virtual machines. Hyperdisk excels in IO performance and throughput, significantly speeding up data processing tasks. A standout feature of Hyperdisk is its storage pooling capability, which allows multiple instances to share a common storage resource. This approach reduces the need for dedicated storage provisioning for each workload, effectively cutting storage requirements and costs.

“By allowing different workloads to share the same storage pool, our customers can achieve significant reductions in their storage needs, which, combined with data storage cost savings, leads to overall reductions of 30 to 40 percent in storage expenses,” Yang highlighted.

Managed Instance Groups for Enhanced Efficiency

Google Cloud is also enhancing its Managed Instance Groups (MIGs), which enable customers to cluster different instances together under varied policy settings. MIGs automate backend operations such as auto-healing and autoscaling, thus improving resource utilization and operational efficiency. This automation supports more effective load balancing and optimal CPU usage, reducing costs.

“These managed instance groups are designed to help our customers maximize their resource utilization while minimizing waste, which is a key part of our strategy to help businesses reduce their overall cloud spend,” added Liu.

Empowering Businesses to Achieve More

These developments reflect Google Cloud’s commitment to providing scalable, cost-effective solutions for businesses navigating the complexities of cloud adoption. Google Cloud strengthens its competitive position by continually innovating and improving its technology stack. It delivers substantial value to its customers, helping them achieve their business goals with improved efficiency and reduced costs.

As businesses increasingly rely on cloud computing for operational needs, Google Cloud’s enhancements are timely. They offer companies the tools to manage their cloud expenditures more effectively, ensuring they can invest more resources into growth and innovation.

Looking ahead, Google Cloud’s focus on advancing cloud technology and reducing costs will likely influence future trends in cloud computing, setting new industry standards for efficiency and cost management. This proactive approach benefits Google Cloud’s clientele and pushes the entire cloud computing industry towards more sustainable and cost-effective practices.

Adkins’s role at the NYSE involves overseeing the Innovation program across the Intercontinental Exchange (ICE) and its portfolio companies. This entails collaborating with cutting-edge AI firms like COH to host transformative events like the recent AI hackathon. The hackathon, focused on enterprise solutions, yielded tangible results, with winning projects poised for real-world implementation. Adkins emphasizes the importance of practical, real-world applications of AI in driving innovation and fostering collaboration within the industry.

Reflecting on current trends in the AI tech space in an interview on NYSE TV, Adkins highlights automation’s prevalence as a critical driver of progress. By streamlining processes and eliminating mundane tasks, AI enhances productivity and improves employee satisfaction—a crucial consideration in today’s competitive landscape.

However, Adkins acknowledges the challenges of implementing AI technologies in a rapidly evolving landscape. His advice to entrepreneurs and CEOs is clear: identify specific problems within your organization that AI can effectively address. By focusing on practical applications, businesses can maximize the impact of AI on their operations and bottom line.

Looking ahead, Adkins emphasizes the importance of collaboration and knowledge-sharing in driving technological progress. The upcoming Tech Summit, hosted by the NYSE in San Francisco, provides a platform for tech leaders to convene, exchange ideas, and chart the course for future innovation. With a focus on thought leadership and community engagement, the Tech Summit underscores the NYSE’s commitment to fostering a collaborative ecosystem that propels technology forward.

Adkins aptly concludes, “Together, we can push the boundaries of what’s possible and drive meaningful change in the world of technology and finance.” With leaders like him leading the charge, the NYSE is well-positioned to lead the way into a future powered by AI innovation.

In a recent interview, Mr. Nguyen shed light on the bank’s ambitious migration to Amazon Web Services (AWS) and its profound impact on Techcom Bank’s operations.

“Before we even moved to AWS, we were on very old legacy systems,” Mr. Nguyen explained. “So when we decided to move to AWS, we had to move all of those systems into the cloud as well.”

The challenge was formidable: seamlessly transitioning critical banking systems to the cloud without disrupting business operations. However, armed with a strategic vision and a commitment to innovation, Mr. Nguyen and his team embarked on the arduous task.

“Within 18 months of signing the contract and partnering with AWS, we were able to migrate 60% of our workload onto AWS,” Mr. Nguyen proudly shared. This feat, achieved in a relatively short timeframe, speaks volumes about the bank’s determination and the effectiveness of the migration process.

The key systems successfully migrated to AWS are Oracle Fraud Detection, Anti-Money Laundering (AML), and Oracle Financial Services Analytical Application (OFSAA). These critical components form the backbone of Techcom Bank’s operations, safeguarding against financial fraud and ensuring regulatory compliance.

The migration’s benefits extend beyond mere technological upgrades. Mr. Nguyen noted a significant uptick in productivity and agility among bank staff. “People are getting more agile, nimble, self-serving, and more self-initiative in what they need,” he remarked. This newfound empowerment has ushered in a culture of innovation and efficiency within the organization.

Moreover, Techcom Bank’s migration to AWS has yielded tangible cost savings. “We were able to reduce costs by up to 20% if managed correctly,” Mr. Nguyen revealed. These savings, coupled with improved operational efficiencies, underscore the bank’s financial prudence in embracing cloud technology.

The partnership with AWS professional services is central to the migration’s success. “The AWS professional services have partnered with us from day one,” Mr. Nguyen emphasized. Their expertise and support have been instrumental in navigating the complexities of cloud migration and ensuring a smooth transition.

Looking ahead, Mr. Nguyen remains optimistic about Techcom Bank’s future in the cloud. “The uptime has been significantly improved,” he noted, highlighting the reliability and resilience of AWS infrastructure. With the cloud business office and structured migration processes in place, the bank is poised to continue its journey of innovation and growth in the digital era.

As Techcom Bank blazes a trail of technological innovation in Vietnam’s banking sector, its partnership with AWS stands as a testament to cloud technology’s transformative power. In an industry where adaptability is paramount, Techcom Bank has demonstrated its readiness to embrace change and chart a course toward a more agile and resilient future.

AI is revolutionizing industries but its adoption poses unique challenges for highly-regulated industries that require secure and private deployment. The three companies are joining forces to help companies in those industries, including healthcare, banking, insurance, and the public sector.

Organizations will be able to use Anthropic’s Claude AI models on Amazon Bedrock, while Accenture provides the tools and services needed to fine-tune the AI models for specific use cases.

“Generative AI will drive new ways of working and we are continuing to uncover new value for our clients each day by deploying and further adapting the technology to our clients’ operations,” said Karthik Narain, group chief executive—Technology at Accenture. “Our collaboration with AWS and Anthropic brings everything together for clients to move faster from experimentation to value realization. We see the biggest potential for our model customization service in highly regulated industries, where AI models need to be tailored to adhere to specific compliance, accuracy and safety requirements.”

“Generative AI is proving to have a positive impact on organizations around the globe to drive innovation, including businesses in highly regulated industries,” said Matt Garman, AWS senior VP of sales, marketing, and global services. “Through bringing together the expertise of Accenture, the most advanced generative AI models from Anthropic and AWS as the world leading cloud provider, we are helping organizations responsibly and securely accelerate the development and deployment of generative AI applications while lowering cost and time to market.”

“Senior leaders are looking to rapidly define their AI strategy and competitive advantage,” said Dario Amodei, Anthropic CEO. “Our efforts with AWS and Accenture provide the swiftest path for enterprises to responsibly deploy powerful generative AI systems. By combining Anthropic’s focus on model performance and safety, AWS’s approach to security and reliability, and Accenture’s deep domain expertise with technical know-how, we aim to build tailored solutions that enable key use cases.”

In Part 1 of this review, we looked at openSUSE’s background, its openQA-provided stability, outstanding installer, choice of desktop environments, and its security. All of these are significant advantages of the distro. Unfortunately, security is also where openSUSE’s disadvantages begin to shine through.

Disclaimer: Some will say the following points are too critical of openSUSE since it’s a more technical distro and not necessarily aimed at desktop users. Nonetheless, openSUSE’s own website says it is: “The makers’ choice for sysadmins, developers and desktop users.” Therefore, my final rating will reflect the distro’s ability to meet the needs of all three of those categories.

Too Much Security?

Security is only a good thing if it’s not so restrictive that people begin disabling features for the sake of convenience, and this is where openSUSE’s disadvantages begin to shine through.

Of all the distros that I have tried to date (Fedora, Manjaro, openSUSE, KDE Neon, Pop!_OS, Kubuntu, and Zorin OS), openSUSE’s security policies are by far the most restrictive. Want to adjust your network settings? You’ll need to enter your password. Want to install a Flatpak app? You’ll need to enter your password. Change your timezone? Enter your password.

What’s more, the default firewall settings are so strict that printer discovery doesn’t work out of the box. To be clear, every single other distro I’ve tried automatically discovers my HP printer on my network and lets me print without installing any additional drivers.

In contrast, openSUSE cannot even discover the printer without changing the firewall profile from the default ‘Public’ to ‘Home,’ or adding the mDNS service to the ‘Public’ profile. Even when making sure mDNS is enabled, openSUSE still requires “hplip” software/driver package installed.

Is it possible to overcome these issues? Yes. But many people, especially less technical users, give up before figuring out how to jump through all these hoops. In fact, a quick look at openSUSE’s Reddit will reveal that two common solutions to printing on openSUSE are a) disable the firewall altogether or b) “don’t print on openSUSE.” Seriously…I have seen that advice multiple times…”don’t print on openSUSE.”

The issues with printing on openSUSE are irritating enough that Linux creator Linus Torvalds famously dumped openSUSE and switched to Fedora because printing was just too hard to bother with. Fans of the distro will point out that it has gotten better since that day…but it’s still not good enough for the average desktop user.

Yast

Yast stands for Yet Another Setup Tool and is one of the defining characteristics of openSUSE. The tool is a throwback to the earlier days of Linux when such setup and configuration tools were more common.

There’s no denying that Yast is a powerful tool, one that is available as both a graphical and command-line package. For system admins, Yast provides a powerful way to administer openSUSE instances. There is almost nothing you can configure via the terminal that can’t be configured via Yast’s GUI, and it’s a tool I miss on other distros.

At the same time, however, like openSUSE’s other hallmark features, Yast is something of a two-edged sword. While it’s undeniably useful — and this is purely subjective — I’m not a fan of how it takes over functions normally handled by a distro’s built-in tools. For example, I run the KDE Plasma desktop, which has excellent built-in tools for printing and firewall management. Yast takes these tasks over, however. Gnome has similarly useful tools as part of the system settings.

As I said, I realize this is very subjective. Some users prefer to have one tool to manage such tasks, regardless of the desktop environment they use. Many users prefer to have one desktop-agnostic tool that never changes. I am not one of those users. I would prefer to use Plasma’s tools when they’re available and fall back to Yast when they’re not.

Btrfs and Snapper

One of openSUSE’s greatest features is its use of the btrfs filesystem and built-in Snapper support. Btrfs is a relatively new filesystem that provides automated system snapshots. This gives users the option to rollback to a previous snapshot from the boot menu in the event something goes wrong.

Tinkering with your system and mess something up? Not a problem, just rollback and it never happened. The same goes for an update that borks something. Just rollback and wait for the issue to be addressed. This is truly a must-have setup for a rolling release distro.

There are two downsides to keep in mind with btrfs (there’s that two-edged sword again):

Btrfs is one of the slower filesystems in use by Linux distros. The excellent DJ Ware, on YouTube, has done extensive benchmarks showing how much slower the filesystem is. While I’ve not done such extensive benchmarks myself, I do have an everyday data point.

When setting up the digiKam photo organizing software for the first time, the app scans your Pictures folder. On any distro using the older ext4 filesystem, it takes digikam anywhere from 4:57 to 5:17 to scan my 49GB of photos. In contrast, digiKam on openSUSE takes more than 7:50 to complete. This result, which I have been able to consistently reproduce, jives with DJ Ware’s benchmarks.

The other potential downside is in regard to data integrity. Given that it’s still a young filesystem, there are still an uncomfortable number of reports about btrfs filesystems becoming hopelessly corrupted. Without a doubt, openSUSE has the most mature implementation of btrfs, but your mileage may vary.

Patterns and Recommendations

One of the things that makes openSUSE so successful at providing stability with a rolling release is its use of Patterns and recommendations.

Patterns are collections of software that are related and share dependencies. For example, there’s a KDE Plasma Pattern, KDE Apps Pattern, Office Suite Pattern, Mobile Pattern, and more.

The power of patterns is that it allows openSUSE developers to update an entire collection of software rather than try to determine what is or is not installed on a machine. Similarly, openSUSE defaults to installing any and all recommended dependencies when installing an application, unlike almost every other distro, in the interest of making sure no app is installed with any missing features.

On paper, both of these seem like good ideas, and, to be clear, they are…to a point. Both of these features contribute greatly to openSUSE Tumbleweed being one of the most stable rolling-release distros.

Unfortunately, Patterns and recommendations also result in some unfortunate side effects. For example, if you delete an application that is included in one of the default Patterns, it will be reinstalled on the next update. You will need to manually block the package, or the entire Pattern, in order to prevent its reinstallation.

Random Papercuts

Slack Issues

In addition to the major things highlighted above, openSUSE running KDE has a bug that makes it almost impossible to add the workspaces I’m subscribed to. I can easily add three of them with no problem, but the fourth one always fails.

The only way I can get it added to the Slack client is to try importing that workspace along with three or four defunct workspaces. After trying this one or three dozen times, the troublesome workspace will finally get imported. From what I’ve been able to tell via research, the workspace string that gets passed from browser to Slack clients gets mangled.

At one point, I thought this was a KDE Plasma bug since it doesn’t happen on Gnome or Xfce. However, this only happens on openSUSE. It doesn’t happen on Manjaro KDE, Kubuntu, or KDE Neon. I have no idea what the problem is but, at least in my experience, it is a uniquely openSUSE issue.

Network Login

On multiple installs of openSUSE, I’ve had issues where I was constantly prompted to enter my root password and network password in order to stay connected. Wake the computer from sleep…enter my passwords. Needless to say, this got old quick.

Conclusion

openSUSE Tumbleweed is one of the most well-engineered distros on the market and offers a tremendous amount of features and abilities. Unfortunately, some of those features are a two-edged sword that cause as many problems as they solve.

openSUSE Tumbleweed is a distro I love to play with and would love to use as my daily driver. Unfortunately, the inconveniences quickly wears on my nerves in daily use, and I end up moving on.

That being said, for the right person, openSUSE is hands-down the best distro available.

Rating

For System Admins: 5 out of 5 stars

The combination of Yast and its enterprise connections makes openSUSE quite possibly the best distro for system admins.

For Developers: 4 out of 5 stars

On the one hand, having the latest and greatest packages can be a big help to developers. On the other hand, the papercuts and irritations may take unnecessary time away from development.

For Desktop Users: 3 out of 5 stars

Before writing about tech, I was a software developer for over a decade. I’ve created software for major universities, companies, and the commercial market. In spite of that high-tech background, openSUSE was just too irritating and difficult for me to use on a daily basis, and I would never recommend it to most everyday users. It would have to be a special breed of desktop user, one that wants to spend as much time managing their computer as using it before I could recommend it to them.

Aongus Hegarty, President of International Markets at Dell Technologies, says that the CIO role is now core to the business strategy in the enterprise. Hegarty was interviewed by Tim Crawford, ranked as one of the most influential CIOs and is the CIO Strategic Advisor at AVOA:

The CIO Is Now Central To The Business Strategy

If you stand back and look at the CIO role I think it’s gone from being a role traditionally which was very much in the back office. The CIO was focused on keeping the systems working and maybe often only out in the c-suite discussions when there was a challenge or an issue with systems or email, etc. The CIO now has become front and center and central to the business strategy. From the c-suite perspective, they are now seen as a key individual around investment in technology to enable the business from a growth and transformation point of view. There has been fundamental change.

What’s driving the change is the recognition by CEOs, c-suite, and companies that technology is disrupting industries and disrupting businesses. It’s driving significant efficiency and operational enhancement and/or a brand new set of business models, products, and services enabled by technology. Companies need to quickly move forward around their digital transformation or they will be left behind or significantly disadvantaged quite quickly. There’s an urgency in the c-suite to bring the technology strategy front and center underpinning the business strategy.

The CIO: A Critical Role Now And Into The Future

The CIO within that c-suite is in an absolutely critical role now and into the future. The breadth of skills and competencies required has broadened significantly. Now the CIO role very much encompasses an individual who has vision and collaborates across the organization. The CIO has strong communication skills and ability and can work and navigate between obviously the tactical and executional elements of the role but also the strategic elements of the IT strategy. They they must match that and understand how it fits into the business strategy. 

To all the CIOs out there I think it’s absolutely an exciting time and a great opportunity. You can be sure that Dell Technologies will be there every step of the way with you.

Mark Sunday, CIO of Oracle, discussed the increasing need for enterprises to take a holistic, comprehensive, and automated approach towards information security in an interview with Michael Krigsman of CXOTALK:

Security is Increasingly a Big Part of the Discussion

It’s really been interesting to see the dramatic change in the awareness around security. Quite frankly, the threats have gotten much greater. Security is increasingly a big part of the discussion. If I look at the one area that my organization has increased year on year on year, it’s what we’re investing in security. We’re the norm in that. We’re not the exception. Then also the increased sophistication of the threats, the increased sophistication of the tooling, and so forth required, is putting more and more focus on this. It really becomes job one.

I think that boards have now become aware and that they are accountable to assure that the people, the processes, the technology, that all the steps that one needs to do in order to ensure the integrity, confidentially, privacy, and security, of not only a customer’s data, the company’s data, but in fact the employees data as well.

Security is Not Just the Role of the CIO

Security is getting its place at the table, whether it’s within the IT organizations, at the corporate level, or at the board level. Security has always been something that’s been out there, something that we’ve had to take into account, but more recently there have certainly been more high profile incidents that have highlighted just what the impact of security can have. But also it’s been highlighted that you need to have the focus that security is not just the role of the CIO, not just the role of the CISO, but it’s everyone’s responsibility.

It begins with making people aware of what they need to do, what the threats and the vulnerabilities are, and what their role is in defending against that. Security needs to be built into every line of code we write, every configuration we enable, every computer that we manage the configuration asset the patching level on and the updates on. It affects essentially most roles within the organization.

Every Enterprise Has the Security it Deserves

Just given the scale, size, complexity, and the opportunity for human error, you really need to take a holistic, comprehensive, and automated approach towards how you deal with configuration management, change management, and vulnerability management. All of these are key aspects. It’s very difficult if it’s done you know manually. You have to look at a comprehensive program that allows you to simplify, standardize, centralize, and automate all the aspects of how you deal with those things that you know could expose your company to security and privacy concerns.

Every Enterprise has the security it deserves. It begins at the very top. It truly begins with the board, CEO, the Executive Committee, to set the culture and to ensure that the people, process, technology, and the governance processes are in place to ensure the security of customers, companies, and employees information.

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With OpenAI’s ChatGPT powering Microsoft Bing, Google developing Bard, and Baidu working on Ernie, the UK government wants to make sure it’s not left behind. According to The Guardian, the UK government is investing in a supercomputer to build its own “BritGPT.”

The supercomputer will “allow researchers to better understand climate change, power the discovery of new drugs and maximise our potential in AI.”

The supercomputer is an exascale computer, capable of “more than one billion billion simple calculations a second, a metric known as an “’exaflops.'” There is only one other known exascale computer housed at Oak Ridge National Laboratory in the US.

“We think there’s a risk that we in the UK, lose out to the large tech companies, and possibly China, and get left behind … in areas of cybersecurity, of healthcare, and so on. It is a massive arms race that has been around for some time, but the heat has certainly been turned up most recently,” said Adrian Joseph, BT’s chief data and artificial intelligence officer, speaking to the Commons science and technology committee.

“Because AI needs computing horsepower, I today commit around £900m of funding … for an exascale supercomputer,” said the chancellor, Jeremy Hunt.

Java 20 is not a a long-term support (LTS) release, so it will only provide updates until version 21 comes out in six months. Nonetheless, this version provides a number of bug fixes and improvements.

“Instead of making tens of thousands of fixes and delivering close to one hundred JEPs (JDK Enhancement Proposals) every few years, as we did with yesteryear Major Releases, enhancements are delivered in leaner Feature Releases on a more manageable, predictable, six-month schedule,” writes Sharat Chander Director, Java SE Product Management. “The changes range from significant new features to small enhancements to routine maintenance, bug fixes, and documentation improvements. Each change is represented in a single commit for a single issue in the JDK Bug System.

“Of the 21,604 JIRA issues marked as fixed in Java 11 through Java 20 at the time of their GA, 15,420 were completed by people working for Oracle while 6,184 were contributed by individual developers and developers working for other organizations.”

Java 20 also includes a number of significant new features and improvements, including:

• (D)TLS Key Exchange Named Groups
• Add GarbageCollectorMXBean for Remark and Cleanup Pause Time in G1
• Unicode 15.0 Support
• Improved Control of G1 Concurrent Refinement Threads
• New JFR Event: jdk.InitialSecurityProperty
• New JFR Event: jdk.SecurityProviderService
• …and much more

For more information, check out Oracle’s full release announcement.

Microsoft’s latest versions of Windows have disappointed and angered users by making it unnecessarily difficult to change the default web browser and other apps. In fact, when Windows 11 first dropped, changing the default browser required changing the default handler for each and every file type web browsers normally handle.

While Microsoft eventually changed its stance and made it easier to change the default web browser, the company is taking it a step further.

“Today we’re reaffirming our long-standing approach to put people in control of their Windows PC experience and to empower developers to take advantage of our open platform,” write Tali Roth & Aaron Grady.

“We want to ensure that people are in control of what gets pinned to their Desktop, their Start menu and their Taskbar as well as to be able to control their default applications such as their default browser through consistent, clear and trustworthy Windows provided system dialogs and settings.”

The company is adding a new option in the Settings app that will allow users to set their preferred apps.

“For defaults, we will soon introduce a new Settings deep link URI for applications to take their users directly to the appropriate location in Settings for the user to change their defaults,” Roth and Grady add. “This is an extension to our existing ms-settings: URI scheme. Learn more about ms-settings: URI schemes.”

It’s nice to see Microsoft listening to user feedback and making it easier for people to use the apps of their choice.

The IT industry, along with every other, is struggling with an economic downturn, with inflation increasing at near record highs. While IT spending is increasing, it’s not keeping pace with rising inflation.

Gartner surveyed more than 2,000 CIOs to gain insight into the state of IT spending. The survey found that, on average, CIOs expected their IT spending budgets to increase by 5.1% in 2023, but that’s behind the estimated inflation rate.

“The pressure on CIOs to deliver digital dividends is higher than ever,” said Daniel Sanchez Reina, VP Analyst at Gartner. “CEOs and boards anticipated that investments in digital assets, channels and digital business capabilities would accelerate growth beyond what was previously possible. Now, business leadership expects to see these digital-driven improvements reflected in enterprise financials.

“CIOs expect IT budgets to increase 5.1% on average in 2023 – lower than the projected 6.5% global inflation rate. A triple squeeze of economic pressure, scarce and expensive talent and ongoing supply challenges is heightening the desire and urgency to realize time to value.”

To help combat the trend, Gartner said CIOs must prioritize spending in the right sectors, such as

“CIOs must prioritize digital initiatives with market-facing, growth impact,” said Janelle Hill, Distinguished VP Analyst, Gartner. “For some CIOs, this means stepping out of their comfort zone of internal back-office automation to instead focus on customer or constituent-facing initiatives.”

“Leading CIOs are more likely to leverage data, analytics and AI to detect emerging consumer behavior or sentiment that might represent a growth opportunity,” added Hill.