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INTERVIEW<br />

Training your workforce<br />

on digital transformation Pg 8<br />

COLUMN<br />

How to steer clear<br />

of GDPR violations? Pg 18<br />

Volume 07<br />

Issue 02<br />

<strong>May</strong> <strong>2018</strong><br />

150<br />

TRACK TECHNOLOGY BUILD BUSINESS SHAPE SELF<br />

A 9.9 Group Publication


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#thepracticalcio #cioannual


EDITORIAL<br />

Shyamanuja Das<br />

shyamanuja.das@9dot9.in<br />

CIOs badly<br />

need an<br />

outside-in<br />

perspective…<br />

A<br />

All that we do<br />

in this issue is<br />

to highlight the<br />

important points<br />

within the draft<br />

(communication<br />

policy) that<br />

have direct<br />

and indirect<br />

implications for<br />

IT and security<br />

managers<br />

good two weeks after the Srikrishna Committee<br />

released its whitepaper outlining various<br />

issues to consider in a possible data privacy<br />

legislation in India, I tried to informally seek<br />

the opinion of delegates—CIOs, CISOs and<br />

other senior security professionals—participating<br />

in a security-themed event. Just 3-4 out<br />

of more than 30 delegates knew something<br />

about the report.<br />

I was not exactly shocked. I was already working<br />

on a story on the digitalization journey of<br />

large Indian corporations then and was getting<br />

a strong message that if not many CIOs are leading<br />

the digitalization journey, it is not<br />

because they are devoid of any skills but<br />

many of them cannot draw on a blank<br />

canvas. They are excellent problem solvers<br />

but they expect the ‘problem’ to be<br />

defined for them. Digitalization—where<br />

‘use cases’ is the ruling catchphrase—<br />

does not work that way.<br />

Earlier, enterprise IT managers<br />

understood only technology; then,<br />

understood processes and corresponding<br />

metrics; now, many of them have<br />

a fairly good understanding of their<br />

own business dynamics. That is good<br />

enough to derive value from technology<br />

for ‘business as usual’ part. But<br />

to derive value from new technology, new changes<br />

in economy, business environment, regulatory<br />

regimes, they need to keep their eyes and ears open.<br />

Unlike the Srikrishna Committee white paper, the<br />

new national digital communication policy is a fullfledged<br />

policy document. Despite its positioning as<br />

the latest update to the country’s telecom policy, it<br />

is not a mere sectoral policy draft—partly because<br />

communication itself has broadened its scope and<br />

partly because the government has chosen to include<br />

certain policy positions—such as data privacy itself—<br />

within this policy draft.<br />

Yet, the awareness about its provisions is also low<br />

among the community. All that we do in this issue is<br />

to highlight the important points within the draft that<br />

have direct and indirect implications for IT and security<br />

managers. To that extent, it is not even a story.<br />

But carrying it on cover is also our way of reiterating<br />

that environmental changes are as important as<br />

changes in an organization or a particular industry<br />

in what has already become an outside-in regime<br />

<strong>May</strong> <strong>2018</strong> | CIO&LEADER<br />

1


TRACK TECHNOLOGY BUILD BUSINESS SHAPE SELF<br />

A 9.9 Media Publication<br />

INTERVIEW<br />

Training your workforce<br />

on digital transformation Pg 8<br />

COLUMN Volume 07<br />

Issue 02<br />

How to steer clear<br />

<strong>May</strong> <strong>2018</strong><br />

of GDPR violations? Pg 18<br />

150<br />

CONTENT<br />

MAY <strong>2018</strong><br />

COVER STORY<br />

12-17 | Why the new<br />

policy matters…<br />

Despite a narrower positioning by Department of<br />

Telecommunications, the new digital communication<br />

policy is a statement of intent to improve the digital<br />

environment holistically<br />

Cover Design by:<br />

Manoj Kumar VP<br />

advertisers ’<br />

index<br />

Accenture<br />

BC<br />

Please Recycle<br />

This Magazine<br />

And Remove<br />

Inserts Before<br />

Recycling<br />

COPYRIGHT, All rights reserved: Reproduction in whole or in part without written permission<br />

from Nine Dot Nine Mediaworx Pvt Ltd. is prohibited. Printed and published by Vikas Gupta for<br />

Nine Dot Nine Mediaworx Pvt Ltd, 121, Patparganj, <strong>May</strong>ur Vihar, Phase - I, Near Mandir Masjid,<br />

Delhi-110091. Printed at Tara Art Printers Pvt ltd. A-46-47, Sector-5, NOIDA (U.P.) 2013011<br />

This index is provided as an<br />

additional service.The publisher<br />

does not assume any liabilities<br />

for errors or omissions.<br />

2 CIO&LEADER | <strong>May</strong> <strong>2018</strong>


AROUND THE TECH<br />

04<br />

Bending the issue<br />

www.cioandleader.com<br />

COLUMN<br />

20-21<br />

Understanding APIs<br />

for private cloud<br />

implementations<br />

By Abhinav Asthana<br />

24-25<br />

Bringing IoT sensors to<br />

the farm<br />

By Adam Drobot<br />

SECURITY<br />

28-29<br />

Information sharing is<br />

key to ward off cyber<br />

threats<br />

INSIGHT<br />

30-31<br />

Mixing digital<br />

technologies<br />

34-35<br />

Artificial<br />

intelligence sees<br />

big business<br />

38-40<br />

The dirty secrets of<br />

network firewalls<br />

MANAGEMENT<br />

Managing Director: Dr Pramath Raj Sinha<br />

Printer & Publisher: Vikas Gupta<br />

EDITORIAL<br />

Managing Editor: Shyamanuja Das<br />

Associate Editor: Shubhra Rishi<br />

Content Executive-Enterprise Technology:<br />

Dipanjan Mitra<br />

DESIGN<br />

Sr Art Director: Anil VK<br />

Art Director: Shokeen Saifi<br />

Visualisers: NV Baiju & Manoj Kumar VP<br />

Lead UI/UX Designer: Shri Hari Tiwari<br />

Sr Designers: Charu Dwivedi, Haridas Balan & Peterson PJ<br />

SALES & MARKETING<br />

Director-Community Engagement<br />

for Enterprise Technology Business:<br />

Sachin Mhashilkar (+91 99203 48755)<br />

Brand Head: Vandana Chauhan (+91 99589 84581)<br />

Assistant Product Manager-Digital: Manan Mushtaq<br />

Community Manager-B2B Tech: Megha Bhardwaj<br />

Community Manager-B2B Tech: Renuka Deopa<br />

Associate-Enterprise Technology: Abhishek Jain<br />

Regional Sales Managers<br />

North: Deepak Sharma (+91 98117 91110)<br />

West: Prashant Amin (+91 98205 75282)<br />

South: BN Raghavendra (+91 98453 81683)<br />

Ad Co-ordination/Scheduling: Kishan Singh<br />

PRODUCTION & LOGISTICS<br />

Manager Operations: Rakesh Upadhyay<br />

Asst. Manager - Logistics: Vijay Menon<br />

Executive Logistics: Nilesh Shiravadekar<br />

Logistics: MP Singh & Mohd. Ansari<br />

OFFICE ADDRESS<br />

9.9 Group Pvt. Ltd.<br />

(Formerly known as Nine Dot Nine Mediaworx Pvt. Ltd.)<br />

121, Patparganj, <strong>May</strong>ur Vihar, Phase - I<br />

Near Mandir Masjid, Delhi-110091<br />

Published, Printed and Owned by 9.9 Group Pvt. Ltd.<br />

(Formerly known as Nine Dot Nine Mediaworx Pvt. Ltd.)<br />

Published and printed on their behalf by<br />

Vikas Gupta. Published at 121, Patparganj,<br />

<strong>May</strong>ur Vihar, Phase - I, Near Mandir Masjid, Delhi-110091,<br />

India. Printed at Tara Art Printers Pvt Ltd., A-46-47, Sector-5,<br />

NOIDA (U.P.) 201301.<br />

Editor: Vikas Gupta<br />

<strong>May</strong> <strong>2018</strong> | CIO&LEADER<br />

3


around<br />

thetech<br />

WHAT<br />

CIOs ARE<br />

TIRED OF<br />

HEARING...<br />

“We don't have<br />

the budgets but<br />

let's make it<br />

work!"<br />

GENDER<br />

Bending the issue<br />

We have talked a great deal about<br />

gender equality in the workforce.<br />

In enterprise IT and security, the<br />

percentage of women in the workforce is<br />

strikingly poor. Take for instance, ISACA’s<br />

annual State of Cybersecurity <strong>2018</strong><br />

report, a 31-point perception gap exists<br />

between male and female respondents,<br />

with 82% of male respondents saying<br />

men and women are offered the same<br />

opportunities for career advancement in<br />

cybersecurity, compared to just 51% of<br />

female respondents.<br />

The report also found that while gender<br />

disparity exists, it can be mitigated<br />

through effective diversity programs. In<br />

organizations that have one, men and<br />

women are much more likely to agree<br />

that men and women have the same<br />

career advancement opportunities. A<br />

full 87% of men say they have the same<br />

opportunities, as compared to 77% of<br />

women.<br />

A lot of companies are publicly taking<br />

up this cause to improve diversity in<br />

the workforce. Take for instance, staff<br />

in Starbucks' outlets that the company<br />

owns in the U.S.—more than 8,000 in<br />

total—are undergoing racial-bias training.<br />

The city of Boston is also addressing<br />

the cause by offering to train women in<br />

negotiating their salaries better.<br />

In Hollywood too, women are speaking<br />

up about gender bias.<br />

However, IT and security leaders need<br />

to do more. By hiring qualified women,<br />

companies can tackle the widening<br />

skill gap. They can create a cohesive<br />

work environment and help make IT<br />

a preferred career choice for women<br />

employees. How are you addressing the<br />

issue in your organization?<br />

4 CIO&LEADER | <strong>May</strong> <strong>2018</strong>


Around The Tech<br />

BY THE BOOK<br />

This book takes you on a journey to<br />

project a worldview where women<br />

haven't asked for permission from<br />

Silicon Valley to chase their dreams.<br />

They are going for it -- building the next<br />

generation of tech start-ups, investing<br />

in each other's ventures, crushing<br />

male hacker stereotypes and rallying<br />

women and girls everywhere to join<br />

the digital revolution. Geek Girl Rising<br />

isn't about the famous tech trailblazers<br />

you already know, like Sheryl Sandberg<br />

and Marissa <strong>May</strong>er. Instead, veteran<br />

journalists Heather Cabot and<br />

Samantha Walravens introduce readers<br />

to the fearless female entrepreneurs and<br />

technologists fighting at the grassroots<br />

level for an ownership stake in the<br />

revolution that's changing the way we<br />

live, work and connect to each other.<br />

Readers will be introduced to Debbie<br />

Sterling, inventor of GoldieBlox, the first<br />

engineering toy for girls, which topples<br />

the notion that only boys can build.<br />

They'll get a peek inside YouTube sensation<br />

Michelle Phan's ipsy studios, where<br />

she is grooming the next generation<br />

of digital video stars while leading her<br />

own mega e-commerce beauty business.<br />

makingheadlines<br />

The General Data Protection Regulation (GDPR) is newest regulation to come<br />

into effect in the European Union. However, it hasn't deterred two of the Big Four<br />

from being hit with a handful of lawsuits having to do with how they share data.<br />

The Verge, citing the lawsuits, reported they are seeking to hit Facebook and<br />

Google with fines that collectively amount to around USD 8.8 billion. The<br />

lawsuits were filed by Max Schrems, an Australian activist who has long<br />

criticized how the companies collect data on their users.<br />

Under the new regulation, companies have to provide clear consent and justify<br />

why they are collecting data on their users, as well as clarify what they intend to<br />

do with it. They are also required to overhaul their privacy and data collection<br />

policies to better protect consumers.<br />

Google and Facebook have been addressing GDPR before it was law, rolling out<br />

new policies and products to better protect the data, but those steps aren't enough.<br />

What happens when an entire city tries to close the<br />

gender pay gap? In the last few years, the city of<br />

Boston has doubled down on a commitment made<br />

in 2013 by its former <strong>May</strong>or, Thomas M. Menino, to<br />

bring pay equity to the city’s workforce. The Boston<br />

Women’s Workforce Council teams up with the area’s<br />

companies and institutions, including major ones<br />

like Morgan Stanley, Zipcar and the Massachusetts<br />

Institute of Technology, to help them figure out<br />

ways to advance women, which they share with one<br />

another in quarterly best-practice meetings.<br />

The city has also trained over 7,000 women<br />

in salary negotiation, with a goal of training an<br />

additional 78,000 by 2021. A more immediate<br />

deadline: The Massachusetts Equal Pay Act,<br />

passed by the legislature in 2016, goes into effect<br />

in July <strong>2018</strong>.<br />

gender<br />

bender<br />

<strong>May</strong> <strong>2018</strong> | CIO&LEADER<br />

5


Around The Tech<br />

UNCHAINED MELODY<br />

matter of<br />

twitter<br />

The ability of blockchain to track, trace, and authenticate products,<br />

record contracts, guarantee the movement of information and<br />

record transactions means it can be put to use across the entire<br />

value chain, with the benefits consequently being passed on to the<br />

consumer in the form of savings, increased trust and transparency,<br />

and safer and higher quality products.<br />

In this new Deloitte report, we examine the implications and<br />

assess the value of specific blockchain use-cases, analyzing how<br />

they could be used to resolve key business issues.<br />

Deloitte has predicted that blockchain technology will reach a tipping<br />

point in the next five years, moving from a fringe technology<br />

associated with dubious cryptocurrency investments and get rich<br />

quick stories to a standard operational technology across the financial,<br />

manufacturing and consumer industries.<br />

Along the way, blockchain will face significant challenges, but if<br />

these can be overcome and the technology continues to develop as<br />

expected, there could be widespread adoption among enterprises.<br />

The ultimate beneficiary will be the consumer. If blockchain can<br />

create efficiencies and save costs throughout the supply chain.<br />

VITAL<br />

STATISTICS<br />

Why are so few<br />

women investing<br />

into bitcoin?<br />

94.73%<br />

5.27%<br />

*Note –the responses to these questions should be<br />

evaluated based on the facts and circumstances in<br />

your organization and discussed with legal counsel.<br />

6 CIO&LEADER | <strong>May</strong> <strong>2018</strong>


Around The Tech<br />

These five companies have secured the<br />

top five spots in Fortune 500 Companies<br />

<strong>2018</strong> list. Amazon entered the top 10 list<br />

of Fortune 500 companies for the first<br />

time. It became the second tech company<br />

after Apple to be in Top 10. Telecom<br />

major AT&T follows Amazon in the list.<br />

Alphabet, Microsoft, IBM, Dell and<br />

Intel are the other tech companies<br />

who feature among the top 10. While<br />

Apple dropped one position in the<br />

revenue ranking, technology companies<br />

till create the most value. The<br />

four most valuable companies on the<br />

list are all technology firms—Apple,<br />

Alphabet, Microsoft and Amazon.<br />

Walmart<br />

Rank: 1<br />

Revenues: USD500,343<br />

Walmart business in the U.S. is<br />

transforming its website into an<br />

online mall offering a slew of brands<br />

and expanding its grocery delivery.<br />

It is also making big moves in both<br />

Five companies in the<br />

FORTUNE500 <strong>2018</strong> LIST<br />

China and India, looking to rev up<br />

international growth again.<br />

Exxon Mobil<br />

Rank: 2<br />

Revenues: USD244,363<br />

Oil giant is enjoying the same momentum<br />

as the rest of the energy sector, posting<br />

a 151% year-over-year earnings gain<br />

for 2017 on revenues of USD 244 billion.<br />

Berkshire Hathaway<br />

Rank: 3<br />

Revenues: USD242,137<br />

The conglomerate holding company–<br />

whose many subsidiaries include Geico<br />

and the railroad Burlington Northern–<br />

struggled to grow through acquisitions<br />

in 2017, losing out on its bid for Oncor<br />

when it refused to raise its offer.<br />

Apple<br />

Rank: 4<br />

Revenues: USD 229,234<br />

Apple took a small step back, from<br />

No. 3 to No. 4, despite a 6% gain in<br />

annual sales, but it led the way in<br />

profits with more than $48 billion<br />

in net income. In short, the Apple<br />

juggernaut continues at tremendous<br />

scale and despite the overall saturation<br />

of smartphones, which make up<br />

the vast majority of the company’s<br />

sales and profits.<br />

In a year dominated by proposed<br />

cross-sector health care mega-mergers<br />

like the CVS-Aetna deal, United-<br />

Health Group flew somewhat under<br />

the radar. But America’s largest<br />

health insurer was far from idle.<br />

UnitedHealth Group<br />

Rank: 5<br />

Revenues: USD 201,150<br />

UnitedHealth’s 2017 revenues<br />

spiked 9% compared with 2016 to<br />

$201 billion. That was mirrored<br />

by a 9.1% year-over-year boost in<br />

Optum’s revenues, which grew to<br />

$91.2 billion.<br />

<strong>May</strong> <strong>2018</strong> | CIO&LEADER<br />

7


INTERVIEW<br />

How are you<br />

upskilling your<br />

IT team on digital<br />

transformation<br />

initiatives?<br />

Simplilearn has launched a digital transformation<br />

academy for enterprises. Have IT leaders enrolled yet?<br />

By Shubhra Rishi<br />

8 CIO&LEADER | <strong>May</strong> <strong>2018</strong>


Anand Narayanan, Simplilearn<br />

Interview<br />

In the last few years, CIOs have been<br />

chanting the ‘digital transformation’<br />

catchphrase as if it is a common cure for<br />

all enterprise IT worries. However, a lot of<br />

organizations have embarked on standalone<br />

digital initiatives and are slowly<br />

evolving their digital readiness. However,<br />

a frequent issue that companies face is<br />

the lack of available talent to lead these<br />

innovations. As a result, a lot of companies<br />

are looking at hiring outside skills<br />

for the duration of the initiative. Some are<br />

also working with startups or external<br />

vendors. What about enterprises/CIOs<br />

that are planning to upskill their existing<br />

workforce on digital skills?<br />

A quick Google search displays several<br />

courses offered by premiere institutions<br />

such as Indian School of Business (ISB),<br />

and online courses by platforms, such as<br />

Udemy, Coursera, edX among others. Simplilearn,<br />

a professional online certification provider,<br />

recently launched Digital Transformation Academy<br />

– a complete suite of courses tailored for<br />

enterprise needs.<br />

We spoke to Anand Narayanan, Chief Product<br />

Officer at Simplilearn, to find out how the Academy<br />

aims to bridge the digital skill gap.<br />

Digital Transformation is a very<br />

broad concept. How do you define it<br />

at Simplilearn?<br />

We believe that, to successfully drive Digital<br />

Transformation, any organization needs to pay<br />

attention to three foundational aspects: People,<br />

Process, and Technology. The people aspect<br />

includes the process of transforming the mindset<br />

of an organization and creating an innovation<br />

driven culture from the grounds up. Process<br />

involves the ability to be “agile” and always follow<br />

“devops” principles. And finally technology allows<br />

an organization to change the way business is<br />

performed. Digital transformation isn’t just about<br />

technology but is also about the people that drive it<br />

and the processes that foster innovations.<br />

Can you talk about the skill gap<br />

issue in enterprise IT?<br />

Digital transformation is already disrupting traditional<br />

technologies, replacing them with digital<br />

domains, such as AI & Machine Learning,<br />

Analytics, Cloud, and Robotic Process Automation.<br />

It is also clear that these skills are not<br />

easily acquired due to their rapid evolution.To<br />

remain competitive and efficient, organizations<br />

have tried hiring for these skills, but the talent<br />

<strong>May</strong> <strong>2018</strong> | CIO&LEADER<br />

9


Interview<br />

Anand Narayanan, Simplilearn<br />

The Academy has<br />

a suite of training<br />

programs that<br />

help organizations<br />

become competent<br />

in digital<br />

technologies<br />

pool remains small. This leads to a skill gap that can only<br />

be overcome with a strong upskilling program.<br />

We conducted a survey of IT Managers<br />

recently and found that only less than half<br />

of them have completed any kind of certification<br />

in the last two years. Every three out of four of<br />

the respondents said they have done some kind<br />

of certification in the last five years. Why do you<br />

think CIOs/IT managers will be interested in taking<br />

up what you have to offer?<br />

Enterprises, more than ever, are measuring the ROI of their<br />

employees and realizing that they are falling behind on key<br />

skills in the digital domain. Online learning does not drive<br />

user engagement and the completion rates are abysmal as<br />

a result. The Simplilearn learning approach drives user<br />

engagement and skill achievement through a high-engagement,<br />

outcome centric model. Online self learning content,<br />

skills assessments, live classes with industry grade faculty,<br />

teaching assistants to intervene when required and hands<br />

on projects, have helped us to deliver an industry high 72%<br />

completion rate on our curriculum. Being able to achieve the<br />

learning outcomes and truly transform their organization is<br />

what makes our offer exciting to these CIOs/IT managers.<br />

Another survey finding that we encountered<br />

was that 28% of IT Managers said they<br />

would go for learning new technologies; however,<br />

leadership skills still topped the choice list.<br />

Clearly leadership skills are a CIO's top priority<br />

and they would rather spend dollars on hiring<br />

temporary skills. Then why would CIOs reskill at<br />

all or do you feel differently about this?<br />

In recent focus groups and discussions that Simplilearn<br />

has had with CIOs and L&D heads, it was clear that<br />

while the target group thought that leadership skills<br />

were important, a majority of their budgets were going<br />

towards technology training. IT Managers and CIOs<br />

are realizing that there is a significant technology shift<br />

happening in the industry with the mainstream use of<br />

digital technologies and this is clear from the way their<br />

training budgets are being allocated.<br />

While there has been intermittent use of a transient<br />

workforce, this approach has not delivered a culturally<br />

aligned outcome for these corporations. This transient<br />

workforce solves for the technology aspect, but it fails<br />

to deliver on the people and process aspects due to poor<br />

alignment of outcomes. It has become an imperative for<br />

corporations to upskill their employees or risk being left<br />

behind as a result.<br />

What's the vision and mission of the Simplilearn<br />

Digital Transformation Academy for<br />

enterprises?<br />

The Simplilearn Digital Transformation Academy is our<br />

flagship initiative to enable enterprises become digital ready.<br />

We are partnering with organizations to equip them with the<br />

skills needed to survive the digital era. The Academy has a<br />

suite of training programs that help organizations become<br />

competent in digital technologies. The program covers all<br />

knowledge aspects of the people, processes and technology<br />

framework and allows any organization to quickly move up<br />

the digital transformation capability ladder.<br />

What is the broad breakup of the course<br />

module?<br />

The Simplilearn Digital Transformation Academy covers<br />

varied topics across the people, process and technology<br />

aspects. On the people side, the academy provides<br />

training around design thinking, and UX principles<br />

which can lead to a more innovative, customer centric<br />

approach within an organization.<br />

On the process side, the academy covers core topics<br />

such as Agile and DevOps which allow an organization to<br />

run lean and fast. And on the technology side core digital<br />

disciplines are covered such as AI and machine learning,<br />

robotic process automation, big data, data analytics, digital<br />

marketing, and cloud computing.<br />

Our outcome centric curriculum is a blend of online selflearning<br />

and live instructor led classroom, allowing the<br />

learner to learn from anywhere. The courses are designed<br />

for three levels of training - Practitioner, Consultant, and<br />

CXO, and are based on the depth of knowledge and digital<br />

expertise required for various roles. Additionally the<br />

academy provides the capability to customize the curriculum<br />

for specific verticals<br />

10 CIO&LEADER | <strong>May</strong> <strong>2018</strong>


A PEER-POWERED,<br />

KNOWLEDGE - BASED AND<br />

COMMUNITY-LED INITIATIVE<br />

FOR CFOS


Cover Story<br />

12 CIO&LEADER | <strong>May</strong> <strong>2018</strong>


Cover Story<br />

Why the<br />

new policy<br />

matters…<br />

Despite a narrower positioning by Department<br />

of Telecommunications, the new digital communication<br />

policy is a statement of intent to<br />

improve the digital environment holistically<br />

By CIO&Leader<br />

On 1 <strong>May</strong> <strong>2018</strong>, the Department<br />

of Telecommunications (DoT)<br />

released the draft, National<br />

Digital Communication Policy<br />

<strong>2018</strong> for public consultation. The<br />

latest national communication policy is the fifth<br />

overall communication policy document from<br />

the government. For long, communication in the<br />

country was governed by the Indian Telegraph<br />

Act 1885. It took 109 years to get the first national<br />

telecom policy of India, in 1994. Since then, this is<br />

the third policy statement, the other two having<br />

been released in 1999 and 2012.<br />

The significant ways in which it differs from<br />

the other three in recent times (1994, 1999 and<br />

2012 versions) is that while all of them were called<br />

National Telecom Policy, the current draft replaces<br />

‘telecom’ with broader and more contemporary<br />

‘communication’, while ‘digital’ has been inserted.<br />

The policy is available on the DoT website<br />

and is open for public comments, at the time of<br />

writing this.<br />

According to the policy document, the policy<br />

aims to accomplish the following strategic objectives<br />

by 2022:<br />

1. Provisioning of broadband for all<br />

2. Creating 4 million additional jobs in the Digital<br />

Communications sector<br />

3. Enhancing the contribution of the Digital<br />

Communications sector to 8% of India’s GDP<br />

from ~ 6% in 2017<br />

4. Propelling India to the top 50 nations in the ICT<br />

Development Index of ITU from 134 in 2017<br />

5. Enhancing India’s contribution to global<br />

value chains<br />

6. Ensuring digital sovereignty<br />

While the first five objectives have traditionally<br />

guided policymaking in all sectors, the last two—<br />

that deal with India’s position in the world—are<br />

new additions to this policy statement.<br />

Beyond Telecom<br />

When we asked about the policy to CIOs and some<br />

senior IT managers, few had any knowledge about<br />

<strong>May</strong> <strong>2018</strong> | CIO&LEADER<br />

13


Cover Story<br />

By its content, specific<br />

goals and possible<br />

implications, the policy<br />

goes well beyond<br />

telecom sector. Yet, both<br />

its stated objective and<br />

the channel through<br />

which it was released<br />

(the administrative<br />

department DoT rather<br />

than a NITI Aayog or<br />

PMO), tends to indicate it<br />

is a sectoral policy.<br />

what it contains, other than the fact that such a policy has<br />

been announced. The only respondent who seemed to be<br />

familiar with the policy was from the telecom industry!<br />

While we are not defending the lack of awareness by the<br />

IT managers’ community, part of the blame should go to the<br />

government. Despite being fairly holistic, it has been positioned<br />

as just the latest ‘telecom’ policy.<br />

By its content, specific goals and possible implications,<br />

the policy goes well beyond telecom sector. Yet, both its<br />

stated objectives—enable creation of a vibrant competitive<br />

telecom market to strengthen India’s long-term competitiveness—and<br />

the channel through which it was released<br />

(the administrative department DoT rather than a NITI<br />

Aayog or PMO), tends to indicate that it is a sectoral policy.<br />

Take for ex<strong>amp</strong>le, the specific goal, ‘establish a strong,<br />

robust and flexible’ data protection regime, on which the<br />

Government has already acted by establishing a committee<br />

headed by Justice B.N Srikrishna.<br />

What is ‘telecom’ about it?<br />

There are three mission statements mentioned in the<br />

policy—Connect India (creating robust infrastructure),<br />

Propel India (promoting innovation and tech ecosystem<br />

and leverage emerging technologies) and Secure India<br />

(ensuring privacy, security and digital sovereignty). Only<br />

the first part is a logical sequel to previous telecom policies<br />

in its scope. The rest two are completely new additions.<br />

In that sense, it is a digitech policy, rather than a telecom<br />

policy.<br />

Not too surprisingly, one of the areas for which the<br />

provisions have direct implications, is enterprise IT,<br />

including information security.<br />

While almost the entire policy has implications for IT, there<br />

are several provisions and objectives that will have direct<br />

impact on enterprise IT operations (including information<br />

security). We have identified 18 such specific points from the<br />

draft policy text. You are advised to go through the entire policy<br />

at the DoT’s website though by the time the issue reaches you,<br />

the time for registering your comments would have elapsed.<br />

Here are the 18 points we strongly suggest you need to<br />

go through, and take them as inputs while working out<br />

your long-term plans. Most of them have positive implications<br />

but nevertheless, if you miss them, in a highly competitive<br />

market, you may just incur an opportunity cost!<br />

We have indicated the specific clause in the policy within<br />

parentheses () against each of the points. This will help you<br />

locate them within policy text easily in case you need to<br />

understand the context, know specific actions points, etc.<br />

Here we go…<br />

1<br />

Ensuring inclusion of uncovered<br />

areas and digitally deprived segments<br />

of society (1.4)<br />

Possible impact: Expansion of access today means<br />

expansion of the market. For many products and services,<br />

this will give access to new market segments, some of<br />

which are at the ‘bottom of the pyramid’. That itself may<br />

foster further innovation!<br />

This is also the only point from the first section of the<br />

policy (Connect India) that finds a place in this listing.<br />

2<br />

Deployment and adoption of new<br />

and emerging technologies (2.2.a)<br />

The policy talks about creating a roadmap for emerging<br />

technologies, such as 5G, Artificial Intelligence, Robotics,<br />

Internet of Things, Cloud Computing and M2M by simplifying<br />

licensing and regulatory frameworks whilst ensuring<br />

appropriate security frameworks for IoT/ M2M.<br />

It also explicitly mentions another emerging challenge—earmarking<br />

adequate licensed and unlicensed<br />

spectrum for IoT/M2M service.<br />

Encouraging use of Open APIs for emerging technologies<br />

is another progressive stance that the policy envisages.<br />

Possible impact: Today, most of the experimentations<br />

with new technologies like IoT and M2M do not scale up<br />

because businesses are unwilling to take the investment<br />

risks, because the regulatory directions in a lot of issues<br />

including spectrum availability are still unknown. A proactive<br />

policy stance like this will open up investments and<br />

accelerate the deployment of new technologies.<br />

14 CIO&LEADER | <strong>May</strong> <strong>2018</strong>


Cover Story<br />

The Policy at a Glance<br />

Vision<br />

To fulfil the information and communication needs of citizens and enterprises by establishment of a ubiquitous,<br />

resilient, secure and affordable Digital Communications Infrastructure and Services; and in the process,<br />

support India’s transition to a digitally empowered economy and society<br />

Mission Description Objective 2022 Goals<br />

Points in<br />

our Story<br />

pertaining<br />

to the<br />

mission<br />

Connect<br />

India<br />

Creating Robust<br />

Digital Communications<br />

Infrastructure<br />

To promote Broadband<br />

for All as a tool for<br />

socio-economic development,<br />

while ensuring<br />

service quality and<br />

environmental sustainability<br />

a. Provide Universal broadband coverage at 50 Mbps to<br />

every citizen<br />

b. Provide 1 Gbps connectivity to all Gram Panchayats of<br />

India by 2020 and 10 Gbps by 2022<br />

c. Enable 100 Mbps broadband on demand to all key development<br />

institutions; including all educational institutions<br />

d. Enable fixed line broadband access to 50% of households<br />

e. Achieve ‘unique mobile subscriber density’ of 55 by 2020<br />

and 65 by 2022<br />

f. Enable deployment of public Wi-Fi Hotspots; to reach 5<br />

million by 2020 and 10 million by 2022<br />

g. Ensure connectivity to all uncovered areas<br />

a. Attract investments of USD 100 Billion in the Digital<br />

Communications Sector<br />

b. Increase India’s contribution to Global Value Chains<br />

c. Creation of innovation led Start-ups in Digital Communications<br />

sector<br />

d. Creation of Globally recognized IPRs in India<br />

e. Development of Standard Essential Patents (SEPs) in the<br />

field of digital communication technologies<br />

f. Train/ Re-skill 1 Million manpower for building New Age<br />

Skills<br />

g. Expand IoT ecosystem to 5 Billion connected devices<br />

h. Accelerate transition to Industry 4.0<br />

a. Establish a comprehensive data protection regime for<br />

digital communications that safeguards the privacy,<br />

autonomy and choice of individuals and facilitates India’s<br />

effective participation in the global digital economy<br />

b. Ensure that net neutrality principles are upheld and<br />

aligned with service requirements, bandwidth availability<br />

and network capabilities including next generation access<br />

technologies<br />

c. Develop and deploy robust digital communication network<br />

security frameworks<br />

d. Build capacity for security testing and establish appropriate<br />

security standards<br />

e. Address security issues relating to encryption and security<br />

clearances<br />

f. Enforce accountability through appropriate institutional<br />

mechanisms to assure citizens of safe and secure digital<br />

communications infrastructure and services<br />

#1<br />

Propel<br />

India<br />

Enabling Next<br />

Generation Technologies<br />

and<br />

Services through<br />

Investments,<br />

Innovation and<br />

IPR generation<br />

To harness the power of<br />

emerging digital technologies,<br />

including 5G,<br />

AI, IoT, Cloud and Big<br />

Data to enable provision<br />

of future ready products<br />

and services; and<br />

to catalyse the fourth<br />

industrial revolution<br />

(Industry 4.0) by promoting<br />

Investments,<br />

Innovation and IPR<br />

#2 through<br />

#9<br />

Secure<br />

India<br />

Ensuring Sovereignty,<br />

Safety and<br />

Security of Digital<br />

Communications<br />

To secure the interests<br />

of citizens and safeguard<br />

the digital sovereignty<br />

of India with a<br />

focus on ensuring individual<br />

autonomy and<br />

choice, data ownership,<br />

privacy and security;<br />

while recognizing data<br />

as a crucial economic<br />

resource.<br />

#10 through<br />

#18<br />

<strong>May</strong> <strong>2018</strong> | CIO&LEADER<br />

15


Cover Story<br />

3<br />

Transition to IPv6 for all existing<br />

communications systems,<br />

equipment, networks and devices (2.2.c)<br />

Possible impact: For network managers, especially those<br />

managing large and complex networks, everything changes.<br />

4<br />

Enabling hi-speed Internet, IoT and<br />

M2M by 5G rollout (2.2.d)<br />

Possible impact: As sensor technologies become mainstream,<br />

the demand for speed will go up exponentially. And<br />

most of that speed has to be on wireless networks. So, 5G is<br />

a natural evolution. Just that a proactive stance like a policy<br />

statement makes the evolution a bit faster and seamless.<br />

5<br />

Establishing India as a global hub<br />

for cloud computing, content hosting<br />

and delivery, and data communication<br />

systems and services (2.2.f)<br />

The policy promises regulatory frameworks for promoting<br />

international data centers, content delivery networks<br />

and independent in exchanges in India, while promising<br />

a light-touch regulation.<br />

Possible impact: Lower latency, drop in prices and<br />

more choice<br />

6<br />

Leveraging AI and Big Data to<br />

enhance the overall quality of<br />

service, spectrum management, network<br />

security and reliability (2.2.g)<br />

Possible impact: Though it is targeted at the telecom sector,<br />

a large and mature sector like telecom can drive down<br />

the price as well as help grow skills.<br />

7<br />

Recognizing Digital Communications<br />

as the core of Smart Cities (2.2.h)<br />

The policy proposes developing, in collaboration with<br />

Ministry of Urban Development (MOUD), a Common Service<br />

Framework and Standards for Smart Cities. There are<br />

similar initiatives globally. The government needs to evaluate<br />

whether it makes sense to adapt one of these to India or<br />

start working on it from scratch, though.<br />

Possible impact: Accelerated smart city rollout will<br />

directly impact the volume of sales of many technologies<br />

like IoT/M2M, Big Data, leading to more use cases, availability<br />

of skills and lower cost of these technologies.<br />

8<br />

Promoting Start-ups (2.4)<br />

One of the important objectives and 2022 goals is<br />

supporting start-ups through various fiscal and nonfiscal<br />

benefits, such as academic collaboration, promoting<br />

start-ups in government procurements, measures for<br />

application service providers.<br />

Possible impact: A vibrant start-up environment<br />

leads to better innovation and flexibility of deploying<br />

technologies for enterprises.<br />

9<br />

Accelerating Industry 4.0 (2.8)<br />

The policy lists, among its objectives, creation of a<br />

roadmap for transition to Industry 4.0 by 2020 taking<br />

a sectoral approach. It explicitly mentions development<br />

of markets for IoT/ M2M connectivity services in sectors<br />

including agriculture and smart cities components. It<br />

also talks of establishing a multi-stakeholder led collaborative<br />

mechanism for this purpose.<br />

Possible impact: Faster deployment of robotics, IoT<br />

and other similar technologies leading to not just huge<br />

efficiency gains but also better decision making through<br />

data analytics.<br />

10<br />

Today, most of the<br />

experimentations with<br />

new technologies like IoT<br />

and M2M do not scale<br />

up because businesses<br />

are unwilling to take the<br />

investment risks, thanks<br />

to unclear regulatory<br />

direction. A proactive<br />

policy stance will open<br />

up investments and<br />

accelerate the deployment<br />

of new technologies.<br />

Establish a strong, flexible and<br />

robust Data Protection Regime<br />

(3.1)<br />

While the Government has already taken measures on<br />

this regard, like the appointment of an expert committee<br />

under the chairmanship of Justice Srikrishna, which has<br />

already issued a draft stance document and has taken<br />

feedback from public, it is probably incorporated in the<br />

communication policy document to show its importance<br />

in the overall policy making.<br />

Possible impact: This has major implications for enter-<br />

16 CIO&LEADER | <strong>May</strong> <strong>2018</strong>


Cover Story<br />

prise IT and compliance teams. Compliance with newer<br />

provisions like right to forget may need significant efforts<br />

including investment.<br />

11<br />

Assure Security of Digital<br />

Communications (3.3.a)<br />

The policy talks of infrastructure security (physical<br />

infrastructure, cyber-physical infrastructure, hardware<br />

and network elements), systems security (equipment,<br />

devices, distributed systems, virtual servers) as well as<br />

application and platform security (web, mobile, device<br />

and software security).<br />

Possible impact: One more layer of security at the service<br />

provider level is good news for enterprises, especially<br />

small and medium businesses.<br />

12<br />

Participating in global standard<br />

setting organisations (3.3.c)<br />

The policy talks about establishing comprehensive security<br />

certification regime based on global standards<br />

Possible impact: It was a long-desired requirement. A<br />

country of over a billion people should have a say in what<br />

direction the standards should go.<br />

13<br />

While the Government<br />

has already taken<br />

measures on data<br />

protection legislation,<br />

its incorporation in<br />

the communication<br />

policy document shows<br />

the importance it is<br />

accorded in the overall<br />

policy making.<br />

Formulating a policy on<br />

encryption and data retention<br />

(3.3.e)<br />

This is a hotly debated issue globally. While the government<br />

has made a mention of it in the policy, its exact<br />

stance is not known.<br />

Possible impact: A policy with clear guidelines is<br />

always better than a vague and ad-hoc approach. But keep<br />

your fingers crossed.<br />

14<br />

Facilitating lawful interception<br />

agencies with state-of-art lawful<br />

intercepts (3.3.f.ii)<br />

Mentioned as a sub-point of a clause, this one is tricky. The challenge<br />

is not technology always, though it is also becoming one.<br />

It is how robust is the process and what real powers do the service<br />

providers enjoy to say no to a request that is not mandated<br />

by policy bought sought by the enforcement agencies.<br />

Possible impact: Depends on how the policy making<br />

proceeds, it may make things easier or far more difficult.<br />

15<br />

Establishing a Security Incident<br />

Management and Response System<br />

for communications (3.3.g)<br />

Since communication industry is the basic foundation of<br />

a digital ecosystem, it has to be made thoroughly secure.<br />

Instituting a sectoral CERT that works in tandem with<br />

CERT-in is a welcome step.<br />

Possible impact: More secure infrastructure; also lessons<br />

for other sectors<br />

16<br />

Enforcing obligations on service<br />

providers to report data breaches<br />

(3.3.g.iii)<br />

Part of the requirements is to report data breaches, not just<br />

to authorities but also to affected users. The breach of data<br />

at a major telco in India reported in media sometimes back<br />

was a major cause of concern.<br />

Possible impact: A lot but we have to see how much<br />

teeth the legislation will have.<br />

17<br />

Developing a comprehensive plan<br />

for network preparedness<br />

Targeted at improving network resilience and disaster<br />

response, this will surely help all those who depend on<br />

these networks; i.e., all of us.<br />

Possible impact: More resilient infrastructure is good<br />

news for all users, be it business users or common citizens.<br />

18<br />

Developing a Unified Emergency<br />

Response mechanism<br />

In a natural disaster-prone country like India, creating a permanent<br />

mechanism for emergency response is a welcome step.<br />

While many a times it happens because of alert officials, the<br />

approach is always ad-hoc. An institutional framework with<br />

clearly defined roles and responsibilities, standard operating<br />

procedures and technical guidelines will surely go a long way<br />

in making disaster response far more effective.<br />

One welcome approach is to force service providers<br />

share infrastructure in emergency situations.<br />

Possible impact: Many of the other disaster management<br />

mechanisms can be effective if the basic connectivity<br />

is available<br />

<strong>May</strong> <strong>2018</strong> | CIO&LEADER<br />

17


COLUMN<br />

How to build better<br />

data protection and<br />

steering clear of<br />

GDPR violations<br />

Enforcement means that organizations should already be<br />

processing personal data in accordance with the GDPR —<br />

including provisions for data subject rights<br />

By Nilesh Jain<br />

T<br />

he General Data Protection Regulation (GDPR),<br />

adopted in April 2016 after four years of<br />

deliberations, is now in force. The regulation<br />

made headlines around the globe with its stricter<br />

data protection standards, substantial fines, and<br />

most of all, extensive reach. The GDPR affects any<br />

organization that holds an EU citizen’s personal<br />

data, no matter the size or location. A company<br />

based in Asia is as accountable as a multinational<br />

enterprise with offices across Europe — as long as<br />

it collects and processes the data of EU citizens.<br />

The regulation also delineated the data<br />

protection obligations of affected organizations<br />

— from adopting state-of-the-art security<br />

methods to providing people more access to<br />

and control of their data. Recognizing the<br />

sweeping changes required for compliance,<br />

the EU authorities granted member states<br />

18 CIO&LEADER | <strong>May</strong> <strong>2018</strong>


Column<br />

and organizations two years to get ready and<br />

prepare. And today, the transition stage is over<br />

— the GDPR will now be enforced.<br />

What happens now?<br />

Enforcement means that organizations<br />

should already be processing personal data<br />

in accordance with the GDPR — including<br />

provisions for data subject rights. Data Protection<br />

Authorities (DPAs) of EU member states will also<br />

already be able to penalize organizations that are<br />

not compliant. Depending on the member state,<br />

it is possible that regulators will immediately<br />

take action to address any noncompliance.<br />

Some regulatory bodies, however, plan on being<br />

more lenient with businesses and organizations<br />

that have started but not yet completed their<br />

compliance efforts.<br />

What is the worst-case scenario? An<br />

organization is liable for damages caused by<br />

noncompliance and is subject to corresponding<br />

administrative fines. The heftiest fine is<br />

20,000,000 euros or up to 4% of annual<br />

turnover, whichever is higher.<br />

What is the best-case scenario? If an<br />

organization is fully compliant with the GDPR,<br />

or uses the regulation as a starting-off point<br />

and goes beyond the minimum standards, then<br />

there are significant advantages. Some benefits<br />

would be: Secured valuable information, more<br />

efficient operations with proper archiving and<br />

data management, and increased trust from<br />

customers and users.<br />

While the GDPR applies to personal data of<br />

EU citizens, the GDPR has sparked a change in<br />

privacy regulations across the world. The <strong>2018</strong><br />

enforcement allowed several countries to make<br />

their own legislative improvements — the UK<br />

and Australia are just two of a number of regions<br />

that have also updated their data protection laws.<br />

This only indicates that GDPR compliance is a<br />

good opportunity — not just for multinational<br />

enterprises but smaller organizations as well — to<br />

keep up with global advances in data privacy and<br />

state-of-the-art security.<br />

What should organizations be doing?<br />

Ideally, all the groundwork for compliance<br />

should have been finished by now, and items on<br />

the compliance checklist should have been ticked.<br />

Organizations should already be able to provide<br />

products or services that address their customers’<br />

rights as outlined in the GDPR. Those using<br />

third-party applications or suppliers should<br />

watch for updates concerning issues like the<br />

“right to be forgotten” and stricter user consent<br />

standards and make sure they are working<br />

properly. Several laws as well as software changes<br />

are also expected to be in effect starting today or<br />

in the coming months, and organizations should<br />

be ready for any necessary changes.<br />

For those not yet fully compliant, some member<br />

state DPAs have reassured companies “acting in<br />

An organization is liable for<br />

damages caused by noncompliance<br />

and is subject to<br />

corresponding admin fines<br />

good faith” or on the way to compliance that they<br />

will initially be treated with consideration. It’s<br />

crucial to document steps being taken as well as<br />

to prioritize addressing potential security risks.<br />

Ready or not, the road to GDPR compliance<br />

does not end on enforcement day — assessments<br />

and audits should be regular moving forward.<br />

Building better data protection<br />

The GDPR was enforced to set a new standard<br />

for data privacy and protection. One key<br />

element to this is building in privacy measures<br />

from the first stages of development — not<br />

patching up problems after they occur. As<br />

organizations create new products and<br />

applications post-implementation day, privacy<br />

by design must be kept in mind.<br />

Through its new rules and standards, the GDPR<br />

encourages organizations to rethink existing<br />

data management policies and invest in state-ofthe-art<br />

security for data protection. To reiterate,<br />

compliance efforts should be constant after GDPR<br />

implementation day; staying up to date with<br />

cybersecurity developments plays a major part.<br />

We created an infographic to demonstrate the<br />

path well-protected personal data takes — leaving<br />

the data subject’s hands and on to an organization<br />

for secure processing. It also shows what happens<br />

if something goes wrong and what happens if<br />

everything goes right.<br />

The author is Vice President – South East Asia and<br />

India, Trend Micro<br />

<strong>May</strong> <strong>2018</strong> | CIO&LEADER<br />

19


Column<br />

Understanding APIs<br />

for private cloud<br />

implementations<br />

Three tips to minimize the development hassles in<br />

your cloud hybridization journey...<br />

By Abhinav Asthana<br />

G<br />

iven the ecosystem complexities of hybrid cloud<br />

deployments, API management can be tough.<br />

While addressing Inspire Partner Conference<br />

in 2017, Microsoft CEO Satya Nadella made an<br />

interesting observation when he opined that in<br />

the fight between public and private cloud, it's<br />

the hybrid cloud that has emerged the winner.<br />

Nadella's statement gets validated when one<br />

views the rise of hybrid cloud as part of the overall<br />

cloud market. According to Markets and Markets,<br />

the global hybrid cloud market is forecast to be<br />

valued at USD 91.74 billion by 2021, growing by<br />

22.5% CAGR. Compare this with the overall cloud<br />

computing revenues of USD162 billion in 2020<br />

(growing from USD 67 billion in 2015).<br />

A highly sought after model by CIOs, hybrid<br />

cloud offers organizations a flexibility to use costeffective<br />

resources and innovative features from<br />

public cloud vendors as and when required while<br />

retaining the advantages of tight management<br />

controls that their private cloud deployments<br />

assure. The hybrid model, however, can be a<br />

challenge to the backend API developer who has<br />

to ensure that users can move from one model<br />

to another seamlessly without compromising<br />

on the organization’s security and compliance<br />

mandates. Let’s explore three API management<br />

good practices companies may follow to get the<br />

best out of their API programmes for hybrid<br />

cloud implementations.<br />

20 CIO&LEADER | <strong>May</strong> <strong>2018</strong>


Column<br />

Streamline the database access needs of<br />

individual components<br />

Generally, a hybrid cloud set-up presents a<br />

complex ecosystem of applications, business<br />

processes, and infrastructure components.<br />

Given this complex environment, when multiple<br />

components spread across business and<br />

application process flows are accessing database,<br />

it may impact performance of the whole system.<br />

In any case when components are moving into the<br />

cloud, performance gets affected further. An aspect<br />

to consider, here is the type of data–whether it is<br />

persistent or non-persistent.<br />

The API management exercise should therefore,<br />

begin with mapping the database access needs of<br />

various application components with the linked<br />

business processes, and application workflows<br />

besides the user access levels. Ensuring that the<br />

database access function is carried out by one or<br />

only a few components may be a good approach<br />

to follow. Creating controlled interface(s) for<br />

public cloud-components to access applications<br />

and data from your private cloud may also be<br />

deemed useful.<br />

Do not ignore security and support<br />

In a hybrid cloud set-up APIs work as the pipe that<br />

provides access to enterprise resources to users<br />

internal as well as external. Safeguarding sensitive<br />

business information is, therefore, an important<br />

task APIs must perform. A combination of security<br />

provisions including basic authentication via API<br />

keys, the advanced authorization model by using<br />

OAuth 2.0, and JSON Web Tokens (JWT) along with<br />

encryption may be considered a reasonable solution<br />

stack to secure API framework for a hybrid cloud<br />

implementation.<br />

In a hybrid cloud environment, requests<br />

continuously flow back and forth between<br />

public cloud and the data center or private cloud.<br />

Therefore, in addition to the standard functions<br />

of visibility, availability, and monitoring, your<br />

APIs, while acting as gatekeepers, also need<br />

to support features such as throttling. When<br />

designed with adequate provisioning for caching<br />

and fair-use as the guiding principle, throttling<br />

can help private cloud administrators achieve<br />

performance optimization while measuring<br />

resource requests on the business criticality<br />

parameters. Allowing developers to request<br />

access to a predefined data-set through a<br />

developer-portal can also build efficiency into<br />

support operations.<br />

In a hybrid cloud set-up<br />

APIs work as the pipe<br />

that provides access to<br />

enterprise resources to<br />

users internal as well<br />

as external<br />

Know your organization’s hybrid cloud<br />

priorities<br />

Hybrid cloud has various usage-driven models.<br />

Some organisations build strong data center<br />

capabilities and a private cloud relying on public<br />

cloud resources only for analytics especially<br />

when big data is involved. In fact, this method<br />

is similar to the model traditionally followed<br />

in third party business intelligence system<br />

deployments wherein data fetched from multiple<br />

enterprise source systems and ETL is fed into a<br />

data warehouse and then to a BI system. In this<br />

method, replace BI system with public cloud.<br />

The public cloud's access is thus limited to the<br />

EDW layer only. The enterprise systems are kept<br />

oblivious and out of reach for the public cloud.<br />

Another practice followed by organizations is<br />

limiting the scope of public cloud to spike-based<br />

provisioning while majority of provisioning<br />

being done by the private cloud. Popularly<br />

termed as cloud-bursting, the public cloud’s role<br />

is of augmentative nature only. Through this<br />

method, CIOs try to keep their risks and costs<br />

under control while ensuring uninterrupted<br />

performance at all times.<br />

Lastly, some organizations take a different<br />

view of public cloud adoption. By breaking down<br />

their applications into back-end and front-end<br />

components, the web-based front-end portions<br />

are moved to the public cloud while retaining the<br />

transaction data processing and analysis at the<br />

private cloud level only. An API developer should<br />

therefore thoroughly review the practices and<br />

risk-return priorities of the organization before<br />

creating a suitable API architecture.<br />

The author is CEO & Co-founder, Postman<br />

<strong>May</strong> <strong>2018</strong> | CIO&LEADER<br />

21


Column<br />

Five questions post<br />

Pichai’s impressive<br />

duplex demo…<br />

And why we must ask them now?<br />

By Shyamanuja Das<br />

22 CIO&LEADER | <strong>May</strong> <strong>2018</strong>


Column<br />

T<br />

how will it feel to<br />

be served by virtual<br />

beings? What<br />

impact could it<br />

make on the way<br />

societies work?<br />

raditionally, people have been trained to talk<br />

to technology. For some time now, research is<br />

directed towards making technology talk to<br />

human beings.<br />

Google CEO Sundar Pichai just showed what<br />

you could possibly see in near future – natural<br />

conversation by an automated assistant over<br />

phone to do specific tasks. He demonstrated<br />

recordings of calls made by Google Duplex,<br />

a new technology for conducting natural<br />

conversations, leaving those who watched it live<br />

thoroughly impressed.<br />

Google Duplex is a new technology for<br />

conducting natural conversations to carry<br />

out “real world” tasks over the phone. The<br />

technology is directed towards completing<br />

specific tasks, such as scheduling certain types<br />

of appointments.<br />

“For such tasks, the system makes the<br />

conversational experience as natural as possible,<br />

allowing people to speak normally, like they would<br />

to another person, without having to adapt to a<br />

machine,” Google said in a blog post.<br />

Here are five questions you could try<br />

answering—or<br />

questioning others. But<br />

please…see the demo<br />

once before trying out.<br />

1. Do you still have<br />

doubts on what is<br />

possible?<br />

Natural language<br />

processing has a long<br />

history—right from<br />

translating “spirit is<br />

willing, flesh is weak”<br />

in English to “vodka is good, meat is rotten” in<br />

Russian…A lot of what Pichai demonstrated on<br />

stage looked like what we have watched so far in<br />

sci-fi movies.<br />

While Pichai himself admitted it is a work in<br />

progress, does anyone have any doubt on the limits?<br />

2. Will the labor displacement happen sooner<br />

than you think?<br />

Unlike many other talks on how it could change<br />

human civilization, Pichai kept talking about how<br />

the technology can change business. And that is<br />

pretty clear. The question is not if, but when, will<br />

start replacing human beings at a scale that will<br />

impact employment—and economies of nations?<br />

For countries like India, celebrating their young<br />

population ‘resource’ in a service centric economy,<br />

what could it mean?<br />

3. How will ‘automated beings’ change society<br />

and culture?<br />

How will it feel to be served by virtual beings?<br />

What impact could it make on the way societies<br />

work? Will humans too be dehumanized?<br />

4. What if it is misused?<br />

Already, people have started discussing its<br />

wrongful application. With every new capability,<br />

a new set of alarming possibilities are presented.<br />

Duplex and its genre are no exception. Imagine<br />

what is possible…<br />

5. Is it time for some regulation?<br />

The ultimate question. Should it be regulated?<br />

(That is a no-brainer) Is it time to start the<br />

debate now? What should be regulated and with<br />

what objective(s)?<br />

<strong>May</strong> <strong>2018</strong> | CIO&LEADER<br />

23


Column<br />

Bringing IoT<br />

sensors to the farm<br />

The sensors we have today (whether video,<br />

hyperspectral or infrared) allow us to understand<br />

many of the conditions of plants in the field<br />

By Adam Drobot<br />

24 CIO&LEADER | <strong>May</strong> <strong>2018</strong>


Column<br />

It all depends on how<br />

the cost can be reduced<br />

enough to match the<br />

economics of farming<br />

There’s a common misconception that<br />

farms are simple places. While that’s<br />

never particularly been the case,<br />

modern agriculture is impressively<br />

complex and technologically<br />

sophisticated, and is becoming more<br />

so with the introduction of a wide<br />

array of sensors.<br />

The sensors we have today (whether<br />

video, hyperspectral or infrared)<br />

allow us to understand many of the<br />

conditions of plants in the field. The<br />

sensors can be based on different<br />

platforms, from satellites and high<br />

altitude aircraft to smaller drones<br />

that are flown and controlled locally,<br />

to permanent sensors mounted on<br />

structures that overlook the field.<br />

The data from these sensors is used<br />

to understand the spatially-resolved<br />

field conditions and how the crop<br />

is progressing. Interpreting sensor<br />

data and the spatial distribution can<br />

be used to determine how the field<br />

should be managed to achieve the<br />

best yields, and where and when to<br />

harvest the crops. In terms of plants,<br />

miniaturized integrated sensors that<br />

are low-cost and can be placed on<br />

individual plants is one direction we<br />

could see. It all depends on how the<br />

cost can be reduced enough to match<br />

the economics of farming.<br />

Also, if we talk of the key<br />

technological advancements that<br />

would allow for the creation of<br />

cheap, miniature sensors, we need to<br />

mention the use of basic components<br />

from consumer electronics where<br />

large markets drive economies of<br />

scale. The best ex<strong>amp</strong>les are cheap<br />

cameras that now cost a few dollars<br />

because of smartphone production<br />

volumes, accelerometers from<br />

MEMS technologies, and other<br />

developments that come from<br />

system-on-a-chip (SOC) design<br />

and manufacturing techniques.<br />

Satellites also play a huge role in<br />

assessing the condition of plants.<br />

Firstly, an increasing number of<br />

satellites use high resolution sensors<br />

– both optical and hyperspectral<br />

– to improve techniques for<br />

interpreting sounding data. There<br />

are also many more low Earth<br />

orbit (LOE) satellites, whose arrays<br />

provide much better coverage,<br />

both geographically and in field<br />

re-visit rates. The second role is as<br />

communications relays for ground<br />

sensors in sparsely-populated and<br />

under-resourced areas.<br />

Drones also have great potential –<br />

they’re just getting started. Because<br />

they can get right to where the<br />

action is, drones can be used to fly<br />

instruments that would not fit or<br />

work on satellites. An ex<strong>amp</strong>le is<br />

acoustic sensors used to identify<br />

pests and animals, data that’s not<br />

possible to gather from satellites. A<br />

drone can also pick up a soil or plant<br />

s<strong>amp</strong>le that a satellite cannot.<br />

The author is IEEE senior member<br />

and Chair of the IEEE Internet of<br />

Things Activities Board<br />

<strong>May</strong> <strong>2018</strong> | CIO&LEADER<br />

25


FACE OFF<br />

// SHOULD CIOs BE HIRED<br />

FROM BUSINESS?<br />

There are two kinds of organizations.<br />

One is where a user applies IT for<br />

business and the other where the user<br />

becomes the producer of IT products<br />

or services. In the case of former, the<br />

degree of business knowledge and<br />

technology knowledge is 70:30 whereas<br />

in the case of latter, the ratio of business<br />

acumen to technology is 40:60.<br />

Nevertheless, business knowledge is<br />

dominant in both the cases.<br />

Take for instance, in the<br />

manufacturing industry, IT is the<br />

tool to enable business processes<br />

and drive business targets. IT should<br />

align with business strategies and<br />

provide solutions to do business<br />

better and smarter.<br />

This thorough knowledge of<br />

business is only possible if the IT<br />

head is from the business side.<br />

Understanding organization culture,<br />

Quick View<br />

T G Dhandapani, says,<br />

thorough knowledge of business<br />

is only possible if IT head is hired<br />

from business<br />

user behavior, business<br />

requirements and<br />

effective solutioning<br />

for an IT deployment is<br />

possible if he/she is from<br />

business. Today it is not<br />

adequate if the CIO just<br />

responds to business<br />

requirements. He/she<br />

has to be at least six<br />

months ahead of his CXO<br />

peers when it comes to<br />

T G DHANDAPANI<br />

Advisor – Digital<br />

Transformation and<br />

Former Group CIO, TVS<br />

Motor and Sundaram<br />

Clayton Group<br />

planning and executing<br />

digital projects. He/she should be in a<br />

position to predict what they want six<br />

months later. Any requirements of<br />

a CXO that were required yesterday<br />

or they planned for solutions after<br />

they ask for isn't sufficient. They<br />

should be in a position to do shelf<br />

engineering and keep the solution<br />

ready before the business asks for it.<br />

CIOs, if from business can implement<br />

this successfully. Today IT is not<br />

confined to datacenters. The IT folk<br />

should rub shoulders with CXOs and<br />

dirty their palms in the shop floor.<br />

Vanilla CIOs, purely with technology<br />

backgrounds, will take more time to<br />

understand and implement solutions<br />

for business<br />

Understanding<br />

org culture,<br />

user behavior,<br />

biz requirements<br />

is only<br />

possible if he/<br />

she is from<br />

business<br />

26 CIO&LEADER | <strong>May</strong> <strong>2018</strong>


Face Off<br />

ARINDAM<br />

SINGHA ROY<br />

CIO,<br />

East India Udyog<br />

"A CIO should<br />

come from<br />

the heart<br />

of the IT<br />

community<br />

but must be<br />

business<br />

focused<br />

Any CXO position is a combination<br />

of expertise and added layers of<br />

“big picture thinking” ability and<br />

leadership. A CIO/CISO without a<br />

strong IT background is a COO, or<br />

a CEO maybe. The balanced C-level<br />

team requires various perspectives.<br />

For instance, possessing a technical<br />

perspective for a CIO/CISO is paramount.<br />

He/she should be able to<br />

articulate the IT position and vision.<br />

Strategic and business thinking<br />

is one side of the coin for a CIO/<br />

CISO. However, in IT, he/she will<br />

serve as a ‘building with roof’ but<br />

without an IT base.<br />

If you hire a CIO/CISO without<br />

the requisite technical experience in<br />

critical and multi-headed responsibilities,<br />

IT is then managed by someone<br />

who isn't technology oriented,<br />

who then proves ineffective, open<br />

to vendor manipulation, and staff<br />

disrespect. He/she steadily starts<br />

acquiring a ‘herding cats' mentality<br />

on technology matters.<br />

I think what makes it complicated<br />

is the fact that IT is the only department<br />

that is both staff and line. For<br />

Quick View<br />

Arindam Singha Roy, says,<br />

IT experience is , sometimes,<br />

just enough<br />

instance, Finance is staff only while<br />

Sales is line only. But, the leader of IT<br />

is both a staff person (support) and<br />

often a line person (e.g. runs the bit<br />

factory). It is because of this unique<br />

role that he or she needs dual experience.<br />

The CIO/ needs to know what<br />

is right and wrong on projects, what<br />

works and doesn’t. In the end, it is the<br />

CIO that has to buy off on the recommendations<br />

of their reports.<br />

In conclusion, a CIO must come from<br />

the heart of the IT community, but must<br />

be business focused<br />

<strong>May</strong> <strong>2018</strong> | CIO&LEADER<br />

27


SECURITY<br />

Information<br />

sharing is key<br />

to ward off<br />

cyber threats<br />

As per reports, a layered security<br />

approach involves gathering various<br />

security solutions to collectively<br />

protect an organization’s data<br />

By CIO&Leader<br />

S<br />

haring information is an important factor in<br />

helping to defend against cyber threats, according<br />

to Akamai Technologies’ State of the Internet/Security:<br />

Carrier Insights Report for Spring<br />

<strong>2018</strong>. The report analyzes data from more than<br />

14 trillion DNS queries collected by Akamai<br />

between September 2017 and February <strong>2018</strong><br />

from communications service provider (CSP)<br />

networks around the world.<br />

For more than 19 years, Nominum, acquired by<br />

Akamai in 2017, has leveraged in-depth DNS data<br />

to improve overall protection against sophisti-<br />

cated cyberattacks, such as distributed denial of<br />

service (DDoS), ransomware, trojans, and botnets.<br />

Akamai’s Carrier Insight Report builds upon the<br />

Nominum expertise and highlights the effectiveness<br />

of DNS-based security that is enriched with<br />

data coming from other security layers. This layered<br />

security approach involves gathering various<br />

security solutions to collectively protect an organization’s<br />

data.<br />

“Siloed understanding of attacks against individual<br />

systems isn’t enough for defenders to prepare<br />

for today’s complicated threat landscape,”<br />

28 CIO&LEADER | <strong>May</strong> <strong>2018</strong>


Insight<br />

said Yuriy Yuzifovich, Director of Data Science,<br />

Threat Intelligence, Akamai. “Communicating<br />

with varying platforms is critical when acquiring<br />

knowledge across teams, systems and data sets.<br />

We believe that the DNS queries that our service<br />

provides act as a strategic component to arming<br />

security teams with the proper data necessary for<br />

that big picture view of the threat landscape.”<br />

Tackling the Mirai Botnet:<br />

Collaboration in Action<br />

Collaboration between teams within Akamai<br />

played a crucial role in discovering Mirai command<br />

and control (C&C) domains to make future<br />

Mirai detection more comprehensive. The Akamai<br />

Security Intelligence and Response Team (SIRT)<br />

has been following Mirai since its inception, using<br />

honeypots to detect Mirai communications and<br />

identify its C&C servers.<br />

In late January <strong>2018</strong>, Akamai’s SIRT and<br />

Nominum teams shared a list of over 500 suspicious<br />

Mirai C&C domains. The goal of this was<br />

to understand whether, if by using DNS data<br />

and artificial intelligence, this list of C&C could<br />

be augmented, and make future Mirai detection<br />

more comprehensive. Through several layers of<br />

analysis, the combined Akamai teams were able<br />

to augment the Mirai C&C dataset to discover a<br />

connection between Mirai botnets and distributors<br />

of the Petya ransomware.<br />

This collaborative analysis suggested an evolution<br />

of IoT botnets, from a nearly exclusive use<br />

case of launching DDoS attacks to more sophisticated<br />

activities such as ransomware distribution<br />

and crypto-mining. IoT botnets are difficult to<br />

detect because there are very few indicators of<br />

compromise for most users—and yet, the collaborative<br />

research by these teams created the<br />

Siloed understanding of<br />

attacks against individual<br />

systems isn't enough<br />

for defenders to prepare<br />

for today's complicated<br />

threat landscape<br />

chance to find and block dozens of new C&C<br />

domains to control the activity of the botnet.<br />

Javascript Cryptominers: A Shady<br />

Business Model<br />

The exponential rise in public consumption of<br />

cryptocurrency adoption has been reflected in<br />

a sharp, observable increase in the number of<br />

crypto-mining malware strains, and the number<br />

of devices infected with them.<br />

Akamai observed two distinct business models<br />

for large-scale crypto-mining. The first model<br />

uses infected devices’ processing power to mine<br />

cryptocurrency tokens. The second model uses<br />

code embedded into content sites that make<br />

devices that visit the site work for the cryptominer.<br />

Akamai conducted extensive analysis<br />

on this second business model, as it poses a new<br />

security challenge for users and website owners<br />

alike. After analyzing the cryptominer domains,<br />

Akamai was able to estimate the cost, in terms of<br />

both computer power and monetary gains, from<br />

this activity. An interesting implication of this<br />

research shows that cryptomining could become a<br />

viable alternative to ad revenue to fund websites.<br />

Changing Threats: Malware and<br />

Exploits Repurposed<br />

Cybersecurity is not a static industry. Researchers<br />

have observed hackers leveraging old techniques<br />

to reuse in today’s current digital landscape. Over<br />

the six months that Akamai collected this data, a<br />

few prominent malware c<strong>amp</strong>aigns and exploits<br />

show notable changes in their operating procedure,<br />

including:<br />

The Web Proxy Auto-Discovery (WPAD) protocol<br />

was discovered in use to expose Windows<br />

systems to Man-in-the-Middle attacks between<br />

November 24 and December 14, 2017. WPAD<br />

is meant to be used on protected networks (i.e.<br />

LANs) and leaves computers open to significant<br />

attacks when exposed to the Internet.<br />

Malware authors are branching out to the collection<br />

of social media logins in addition to financial<br />

information. Terdot, a branch of the Zeus botnet,<br />

creates a local proxy and enables attackers to perform<br />

cyber-espionage and promote fake news in<br />

the victim’s browser.<br />

The Lopai botnet is an ex<strong>amp</strong>le of how botnet<br />

authors are creating more flexible tools. This<br />

mobile malware mainly targets Android devices<br />

and uses a modular approach that allows owners<br />

to create updates with new capabilities.<br />

<strong>May</strong> <strong>2018</strong> | CIO&LEADER<br />

29


INSIGHT<br />

Mixing digital<br />

technologies<br />

A new World Economic Forum (WEF) research finds<br />

new technologies, deployed in combination, contribute<br />

to significantly higher productivity gains, when deployed<br />

individually. The research also identifies key enablers of<br />

maximizing return on digital investments<br />

By CIO&Leader<br />

he productivity increase due to investments in<br />

new digital technologies is significantly more<br />

when technologies are deployed in combination,<br />

finds a new research by the World Economic<br />

Forum (WEF). The finding is part of a broader<br />

project—Maximizing Returns on Digital Invest-<br />

Tments—by WEF’s Digital Transformation Initiative<br />

(DTI) to understand the relationship between<br />

new technology investment and productivity.<br />

The research found four key trends:<br />

The return on investment in new technologies<br />

is positive overall. The productivity increase<br />

is three times higher when technologies are<br />

deployed in combination.<br />

30 CIO&LEADER | <strong>May</strong> <strong>2018</strong>


Insight<br />

The return on digital investments varies by<br />

industry, and industry leaders achieve a greater<br />

productivity increase from investments in<br />

new technology than followers. The leaders in<br />

a majority of industries tend to be larger companies<br />

by revenue.<br />

Asset-heavy industries realize more value<br />

from robotics; asset-light industries realize<br />

greater value from mobile/social media.<br />

While industry leaders realize higher overall<br />

return from robotics and mobile/social investments,<br />

followers have gained more from IoT<br />

and cognitive technologies.<br />

The WEF research identified three key drivers<br />

of digital investments: new efficiencies, enhanced<br />

customer experience and new business models.<br />

It concluded that new efficiencies are still the<br />

primary driver for large companies to invest in<br />

new technologies while investing in new business<br />

models is the most difficult and least frequently<br />

targeted of the three drivers.<br />

To read our report on the key imperatives, drivers<br />

and major trends in digital transformation in India,<br />

read Decoding Digital Transformation in India<br />

The research also identified five key enablers<br />

to maximize the return on digital investments<br />

emerged from the discussions with industry<br />

leaders. They are:<br />

Agile and digital-savvy leadership: Maintaining<br />

a strategic vision, purpose, skills, intent and<br />

alignment across management levels to ensure a<br />

nimble decision-making process on innovation<br />

Forward-looking skills agenda: Infusing a<br />

digital mindset in the workforce by making innovation<br />

the focus of training and hiring programs<br />

Ecosystem thinking: Collaborating within the<br />

value chain (e.g. with suppliers, distributors, customers)<br />

and outside (e.g. start-ups, academia)<br />

Data access and management: Driving competitiveness<br />

through strong data infrastructure and<br />

warehouse capability combined with the right<br />

analytics and communication tools<br />

Technology infrastructure readiness: Building<br />

the required technology infrastructure to<br />

WEF research has<br />

identified three key<br />

drivers: new efficiencies,<br />

enhanced customer<br />

experience and new<br />

business models<br />

ensure strong capabilities on cloud, cybersecurity<br />

and interoperability<br />

The project was launched to address the understanding<br />

gap that exists in new technologies’<br />

impact on productivity.<br />

Some of the questions that it addressed are:<br />

How much value are companies getting from<br />

digital investments?<br />

How do returns on digital investments vary by<br />

company, industry and technology?<br />

How can companies maximize return from<br />

their digital investments?<br />

How can companies successfully execute on<br />

digital investment projects?<br />

The research considered four new technology<br />

areas: cognitive technologies including AI and Big<br />

Data; IoT/connected devices; Robotics encompassing<br />

design, construction, implementation and<br />

operation of robots; and Mobile/social media.<br />

The research combined quantitative and qualitative<br />

analyses of new technology investments.<br />

data from over 16,000 public companies across 14<br />

industries to estimate the productivity impact of<br />

investments in new technologies. The industries<br />

were automotive, aviation and travel, chemistry<br />

and advanced materials, consumer, electricity,<br />

financial services, healthcare, logistics, media,<br />

mining and metals, oil and gas, professional services,<br />

retail and telecommunications<br />

<strong>May</strong> <strong>2018</strong> | CIO&LEADER<br />

31


Insight<br />

CEOs priorities<br />

shifting to embrace<br />

digital business<br />

As per Gartner, growth, corporate strategies, IT and<br />

workforce issues continue to top CEO priorities in <strong>2018</strong><br />

By CIO&Leader<br />

Growth is amongst the top CEO business priorities<br />

in <strong>2018</strong> and 2019, according to a recent survey of<br />

CEOs and senior executives by Gartner. However,<br />

the survey revealed as simple, implemental<br />

growth becomes harder to achieve, CEOs<br />

are focusing on changing and upgrading the<br />

structure of their companies, including a deeper<br />

understanding of digital business.<br />

The Gartner <strong>2018</strong> CEO and Senior Business Executive<br />

Survey of 460 CEO and senior business executives<br />

in Q4, 2017 examined their business issues, as<br />

well as some areas of technology agenda impact. In<br />

total, 460 business leaders in organizations with<br />

more than USD 50 million in annual revenue were<br />

qualified and surveyed.<br />

IT remains a high priority coming in at the third<br />

position, and CEOs mention digital transformation,<br />

in particular (see Figure 1). Workforce has risen<br />

rapidly this year to become the fourth-biggest<br />

priority, up from seventh in 2017. The number of<br />

32 CIO&LEADER | <strong>May</strong> <strong>2018</strong>


Insight<br />

CEO Top Business Priorities for <strong>2018</strong> and 2019<br />

Percentage of respondents, ranked by summary top three mentions<br />

(Simple)<br />

Growth<br />

40%<br />

33%<br />

Corporate<br />

(Structural Development)<br />

31%<br />

IT Related<br />

28% 23%<br />

Financial<br />

15% 15%<br />

Workforce<br />

Customer<br />

Product<br />

Improvements<br />

13% 10%<br />

Management<br />

Sales<br />

Cost<br />

Management<br />

9%<br />

9%<br />

Efficiency<br />

and<br />

Productivity<br />

Degree of<br />

increase from<br />

previous year<br />

Degree of<br />

decrease from<br />

previous year<br />

Source: Gartner <strong>2018</strong><br />

CEOs mentioning workforce in their top three<br />

priorities rose from 16% to 28%. When asked about<br />

the most significant internal constraints to growth,<br />

employee and talent issues were at the top. CEOs<br />

said a lack of talent and workforce capability is the<br />

biggest inhibitor of digital business progress.<br />

CEOs recognize the need for<br />

cultural change<br />

Culture change is a key aspect of digital<br />

transformation. The <strong>2018</strong> Gartner CIO Survey found<br />

CIOs agreed it was a very high-priority concern,<br />

but only 37% of CEOs said a significant or deep<br />

culture change is needed by 2020. However, when<br />

companies that have a digital initiative underway<br />

are compared with those that don’t, the proportion<br />

in need of culture change rose to 42%.<br />

Digital business matters to CEOs<br />

Survey respondents were asked whether they<br />

have a management initiative or transformation<br />

program to make their business more digital. The<br />

majority (62%) said they did. Of those organizations,<br />

54% said that their digital business objective is<br />

transformational while 46% said the objective of the<br />

initiative is optimization.<br />

In the background, CEOs’ use of the word “digital”<br />

has been steadily rising. When asked to describe<br />

their top five business priorities, the number of<br />

CEOs in the survey<br />

believe that a lack of<br />

talent and workforce<br />

capability is the biggest<br />

inhibitor of digital<br />

business progress<br />

respondents mentioning the word digital at least once<br />

has risen from 2.1% in the 2012 survey to 13.4% in<br />

<strong>2018</strong>. This positive attitude toward digital business<br />

is backed up by CEOs’ continuing intent to invest in<br />

IT. 61% of respondents intend to increase spending<br />

on IT in <strong>2018</strong>, while 32% plan to make no changes to<br />

spending and only 7% foresee spending cuts.<br />

More CEOs see their companies as<br />

innovation pioneers<br />

The <strong>2018</strong> CEO survey showed that the percentage<br />

of respondents who think their company is an<br />

innovation pioneer has reached a high of 41%<br />

(up from 27% in 2013), with fast followers not far<br />

behind at 37%<br />

<strong>May</strong> <strong>2018</strong> | CIO&LEADER<br />

33


Insight<br />

Artificial intelligence<br />

sees big business<br />

As per Gartner, the growth will be 70% from 2017,<br />

totalling USD 1.2 trillion in <strong>2018</strong><br />

By CIO&Leader<br />

Global business value derived from artificial<br />

intelligence (AI) will total USD 1.2 trillion in <strong>2018</strong>,<br />

a rise of 70% from 2017, according to Gartner.<br />

AI-derived business value will reach USD 3.9<br />

trillion in 2022.<br />

The three different sources of AI business value are:<br />

Customer experience: The positive or negative<br />

effects on indirect cost. Customer experience is a<br />

necessary precondition for widespread adoption<br />

of AI technology to both unlock its full potential<br />

and enable value.<br />

New revenue: Increasing sales of existing products<br />

and services, and/or creating new product or<br />

service opportunity beyond the existing situation.<br />

Cost reduction: Reduced costs incurred in producing<br />

and delivering those new or existing<br />

products and services.<br />

“AI promises to be the most disruptive class of<br />

34 CIO&LEADER | <strong>May</strong> <strong>2018</strong>


Insight<br />

Forecast of Global AI-Derived Business Value (Billions of U.S. Dollars)<br />

2017 <strong>2018</strong> 2019 2020 2021 2022<br />

Business Value 692 1,175 1,901 2,649 3,346 3,923<br />

Growth (%) 70 62 39 26 17<br />

Source: Gartner (April <strong>2018</strong>)<br />

technologies during the next 10 years<br />

due to advances in computational<br />

power, volume, velocity and variety of<br />

data, as well as advances in deep neural<br />

networks (DNNs),” said John-David<br />

Lovelock, research vice president at<br />

Gartner. “One of the biggest aggregate<br />

sources for AI-enhanced products<br />

and services acquired by enterprises<br />

between 2017 and 2022 will be niche<br />

solutions that address one need very<br />

well. Business executives will drive<br />

investment in these products, sourced<br />

from thousands of narrowly focused,<br />

specialist suppliers with specific<br />

AI-enhanced applications.”<br />

As per Gartner, the AI business value<br />

growth rate will be 70%, but it will<br />

slow down through 2022 (see Table 1).<br />

“In the early years of AI, customer<br />

experience (CX) is the primary<br />

source of derived business value, as<br />

organizations see value in using AI<br />

techniques to improve every customer<br />

interaction, with the goal of increasing<br />

customer growth and retention. CX is<br />

followed closely by cost reduction, as<br />

organizations look for ways to use AI to<br />

increase process efficiency to improve<br />

decision making and automate more<br />

tasks,” said Lovelock. “However,<br />

in 2021, new revenue will become<br />

the dominant source, as companies<br />

uncover business value in using AI<br />

to increase sales of existing products<br />

and services, as well as to discover<br />

opportunities for new products and<br />

services. Thus, in the long run, the<br />

business value of AI will be about new<br />

revenue possibilities.”<br />

Breaking out the global business<br />

value derived by AI type, decision<br />

support/augmentation (such as DNNs)<br />

will represent 36% of the global<br />

AI-derived business value in <strong>2018</strong>. By<br />

2022, decision support/augmentation<br />

will have surpassed all other types of<br />

AI initiatives to account for 44% of<br />

global AI-derived business value.<br />

“DNNs allow organizations to<br />

perform data mining and pattern<br />

recognition across huge datasets<br />

not otherwise readily quantified<br />

or classified, creating tools that<br />

classify complex inputs that then<br />

feed traditional programming<br />

systems. This enables algorithms for<br />

decision support/augmentation to<br />

work directly with information that<br />

formerly required a human classifier,”<br />

said Lovelock. “Such capabilities<br />

have a huge impact on the ability of<br />

organizations to automate decision<br />

and interaction processes. This new<br />

level of automation reduces costs<br />

and risks, and enables, for ex<strong>amp</strong>le,<br />

increased revenue through better<br />

microtargeting, segmentation,<br />

marketing and selling.”<br />

Virtual agents allow corporate<br />

organizations to reduce labor costs<br />

as they take over simple requests<br />

and tasks from a call center, help<br />

desk and other service human<br />

agents, while handing over the more<br />

complex questions to their human<br />

counterparts. They can also provide<br />

uplift to revenue, as in the case of<br />

roboadvisors in financial services or<br />

upselling in call centers. As virtual<br />

employee assistants, virtual agents can<br />

help with calendaring, scheduling and<br />

other administrative tasks, freeing up<br />

employees’ time for higher value-add<br />

work and/or reducing the need for<br />

human assistants. Agents account<br />

for 46% of the global AI-derived<br />

business value in <strong>2018</strong> and 26% by<br />

2022, as other AI types mature and<br />

contribute to business value.<br />

Decision automation systems use<br />

AI to automate tasks or optimize<br />

business processes. They are<br />

particularly helpful in tasks such<br />

as translating voice to text and vice<br />

versa, processing handwritten<br />

forms or images, and classifying<br />

other rich data content not readily<br />

accessible to conventional systems.<br />

As unstructured data and ambiguity<br />

are the staple of the corporate<br />

world, decision automation — as it<br />

matures — will bring tremendous<br />

business value to organizations. For<br />

now, decision automation accounts<br />

for just 2% of the global AI-derived<br />

business value in <strong>2018</strong>, but it will<br />

grow to 16% by 2022.<br />

Smart products account for 18%<br />

of global AI-derived business value<br />

in <strong>2018</strong>, but will shrink to 14% by<br />

2022 as other DNN-based system<br />

types mature and overtake smart<br />

products in their contribution to<br />

business value. Smart products<br />

have AI embedded in them, usually<br />

in the form of cloud systems that<br />

can integrate data about the user's<br />

preferences from multiple systems<br />

and interactions. They learn about<br />

their users and their preferences<br />

to hyperpersonalize the experience<br />

and drive engagement<br />

<strong>May</strong> <strong>2018</strong> | CIO&LEADER<br />

35


Insight<br />

Facebook seeks a<br />

'friend' in blockchain;<br />

will it succeed?<br />

Facebook creates a dedicated team to explore blockchain<br />

potential and appoints Facebook Messenger head to lead<br />

the initiative<br />

By Shubhra Rishi<br />

ccording to news reports, Facebook executive David<br />

Marcus, who has been responsible for managing the<br />

company's standalone messaging app, Messenger,<br />

will head a new team dedicated to exploring the<br />

potential of blockchain technology. This team will<br />

comprise instagram executives including Insta-<br />

Agram's VP of Engineering, James Everingham and<br />

Instagram's VP of Product, Kevin Weil. Prior to joining<br />

Facebook, Marcus was CEO at PayPal.<br />

In lieu of the latest Cambridge Analytica controversy<br />

where the social network was in the line of<br />

fire for endangering data and privacy of its large<br />

user base, the company's move to explore blockchain<br />

has its pros and cons.<br />

36 CIO&LEADER | <strong>May</strong> <strong>2018</strong>


Insight<br />

The Pros<br />

Firstly, a blockchain-based social media platform<br />

will provide a high degree of privacy and<br />

security for its users. Users will have more control<br />

over their information and say Facebook,<br />

will no longer be responsible for managing<br />

this data. There are a number of blockchainbased<br />

platformes such as, Steemit, Numa, Sola,<br />

Indorse, which are experimenting with blockchains<br />

and cryptocurrencies.<br />

Take for instance, Numa, which is like Twitter<br />

– "but with cutting edge distributed technologies,<br />

so no central entity owns your data," it says<br />

on its homepage.<br />

On Numa, you can create an account, message,<br />

follow, or favorite a piece of information, and this<br />

data gets stored on a distributed file sharing protocol<br />

(IPFS). On Numa, all your data is stored in a<br />

public, distributed way, unlike on a central entity<br />

such as Facebook, which makes it impossible for<br />

any entity to revoke your access to your data.<br />

Steemit, on the other hand, is a decentralized<br />

reward platform (a social network built on the<br />

Steem blockchain) meant for publishers/users<br />

to monetize content and grow their community.<br />

Steemit users can earn token-based compensation<br />

(cryptocurrencies) for their posts, pictures, music,<br />

and videos. Steemit is powered by Ethereum, a<br />

decentralized platform that runs smart contracts<br />

or "applications that run exactly as programmed<br />

without any possibility of downtime, censorship,<br />

fraud or third-party interference."<br />

Akasha is another decentralized platform<br />

built by Mihai Alisie, founder of Ethereum and<br />

Bitcoin Magazine. The platform has an interface<br />

like Twitter, can be used to can publish, share<br />

and vote for entries, similar to Medium and<br />

other modern publishing platforms -- with a<br />

marked difference that your content is actually<br />

published over a decentralized network rather<br />

than on Akasha's servers. Subscribes on Akasha<br />

can up-vote your content, where votes are<br />

bundled with micro transactions.<br />

There are several other social media platforms,<br />

such as onG.social, Indorse, The Merkle, and<br />

Sapien, among others, built on blockchain. All<br />

A blockchainbased<br />

social<br />

media platform<br />

will provide a high<br />

degree of privacy<br />

and security for its<br />

users<br />

the above blockchain-based social media platforms<br />

offer use cases in the following areas:<br />

Data integrity and security<br />

Better content control<br />

Earn money in the form of crypto currencies<br />

Freedom of speech<br />

Cons<br />

However, there are also cons that might serve as<br />

barriers to the above advantages the technology has<br />

to offer in ‘regulating’ social media in a way:<br />

The problem of fake news<br />

Crypto currency is still not an accepted form of<br />

payment in many countries<br />

Blockchain technology is still not scalable<br />

With Facebook announcing a new team now, the<br />

ground work for exploring blockchain for future<br />

use, must have began a long time ago. Even if it is<br />

on damage-control mode, it is a step in the right<br />

direction – targeted at improving data integrity<br />

and security of its users’ information. Moreover, it<br />

will be interesting to observe how the blockchain<br />

will combat the above-mentioned cons, which<br />

stand in the way of success of any blockchainbased<br />

social network<br />

<strong>May</strong> <strong>2018</strong> | CIO&LEADER<br />

37


Insight<br />

The dirty secrets of<br />

network firewalls<br />

As per a network study, 61% would like to see better<br />

perimeter security in their organization’s network firewall<br />

along with better threat visibility and better protection<br />

By CIO&Leader<br />

38 CIO&LEADER | <strong>May</strong> <strong>2018</strong>


Insight<br />

M<br />

ajority of Indian IT managers have legal liabilities<br />

when it comes to unidentified traffic in their organizations,<br />

according to India findings of Sophos<br />

survey, The Dirty Secrets of Network Firewalls.<br />

In fact, nearly one in four globally cannot identify<br />

70% of their network traffic. The lack of visibility<br />

creates significant security challenges for today’s<br />

businesses and impacts effective network management.<br />

The survey polled more than 2,700 IT<br />

decision makers across mid-sized businesses in<br />

10 countries worldwide, including the US, Canada,<br />

Mexico, France, Germany, the UK, Australia,<br />

Japan, South Africa and India.<br />

Considering the debilitating impact cyberattacks<br />

can have on a business, it’s unsurprising<br />

that 90% of respondents agree that a lack of<br />

application visibility is a serious security concern.<br />

Without the ability to identify what’s running<br />

on their network, IT managers are blind to<br />

ransomware, unknown malware, data breaches<br />

and other advanced threats, as well as potentially<br />

malicious applications and rogue users. Network<br />

firewalls with signature-based detection are<br />

unable to provide adequate visibility into application<br />

traffic due to a variety of factors such as<br />

the increasing use of encryption, browser emulation,<br />

and advanced evasion techniques.<br />

“Controlling network traffic is an essential role<br />

of every firewall yet 61% IT managers can’t tell<br />

you how their bandwidth is being consumed,”<br />

said Sunil Sharma, Managing Director Sales at<br />

Sophos India & SAARC. “If you can’t see everything<br />

on your network, you can’t ever be confident<br />

that your organization is protected from threats.<br />

IT professionals have been ‘flying blind’ for too<br />

long and cybercriminals take advantage of this.”<br />

As per the survey, 61% would like to see better<br />

perimeter security in their organization’s network<br />

firewall along with better threat visibility<br />

and better protection.<br />

Network firewalls<br />

with signature-based<br />

detection are unable<br />

to provide adequate<br />

visibility into app<br />

traffic due to a<br />

number of factors<br />

<strong>May</strong> <strong>2018</strong> | CIO&LEADER<br />

39


Insight<br />

Organization’s firewall is the gateway between<br />

network and internet. Together with endpoint<br />

protection, it’s an integral pillar of security infrastructure.<br />

Despite the importance of its role in<br />

defenses, the survey revealed that firewalls are<br />

failing organizations when it comes to delivering<br />

the protection they need. On an average, Indian<br />

organizations face 26 infected machines a month;<br />

approximately 60% higher infected devices in<br />

comparison to the global average.<br />

“Ineffective firewalls are costing you time<br />

and money. On an average, organizations are<br />

spending 7 working days to remediate infected<br />

machines,” said Sharma.<br />

“A single network breach often leads to the compromise<br />

of multiple computers, so the faster you<br />

can stop the infection from spreading the more<br />

you limit the damage and time needed to clean it<br />

up,” Sharma further added. “Companies are looking<br />

for the kind of next-generation, integrated<br />

network and endpoint protection that can stop<br />

advanced threats and prevent an isolated incident<br />

from turning into a widespread outbreak. Sophisticated<br />

exploits, such as MimiKatz and Eternal-<br />

Blue reminded everyone that network protection<br />

is critical to endpoint security and vice versa.<br />

Only direct intelligence sharing between these<br />

two can reveal the true nature of who and what is<br />

operating on your network.”<br />

Sharma went onto explain that the findings highlighted<br />

the importance of ‘simplicity’ in all aspects of<br />

the security process; network, endpoint or server.<br />

“Reducing complexity is absolutely fundamental<br />

to ensuring data and device security; a fact reflected<br />

in the research. According to the data, 79% respondents<br />

have security risks from unwanted or unnecessary<br />

apps, and a further 60% are concerned by<br />

productivity loss due to unwanted ones. Unnecessary<br />

complexity compromises transparency for a<br />

network manager and the end user, and can lead to<br />

– not merely security concerns – but, even, liability<br />

and compliance issues. The concept of simplicity<br />

is central to Sophos, in the way our products are<br />

designed and in the counsel we provide. We believe<br />

that the simpler the security protocols are to implement,<br />

the more likely they are to be effective.”<br />

Organizations acknowledge the need for better<br />

protection, visibility and response. The survey<br />

revealed that 84% of IT managers polled want<br />

better protection from their current firewall. 99%<br />

want their firewall technology to automatically<br />

isolate infected computers, and 96% want endpoint<br />

and firewall protection from the same vendor if it<br />

improves detection rates and incident response.<br />

Security is Not the Only Risk to<br />

Businesses<br />

Following security risks, 60% organizations<br />

are concerned about loss of productivity from<br />

unproductive apps. Business productivity can be<br />

negatively impacted if IT is unable to prioritize<br />

bandwidth for critical applications.<br />

For industries that rely on custom software<br />

to meet specific business needs, an inability to<br />

prioritize these mission critical applications<br />

over less important traffic could be costly. 69%<br />

of IT professionals who had invested in custom<br />

applications admitted that their firewall could<br />

not identify the traffic and therefore were unable<br />

to maximize their return on investment. Lack of<br />

visibility also creates a blind spot for the potential<br />

transfer of illegal or inappropriate content<br />

on corporate networks, making companies vulnerable<br />

to litigation and compliance issues.<br />

“Organizations need a firewall that protects<br />

their investment in business-critical and custom<br />

applications by allowing employees to<br />

have prioritized access to the applications they<br />

need,” said Sharma. “Increasing network visibility<br />

requires a radically different approach.<br />

By enabling the firewall to receive information<br />

directly from the endpoint security, it can<br />

now positively identify all applications – even<br />

obscure or custom applications.”<br />

40 CIO&LEADER | <strong>May</strong> <strong>2018</strong>


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