
Macro trends in the tech industry | May 2020
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Published: May 19, 2020
The 魅影直播 Technology Radar identifies a number of themes in each edition, but tends to be focused on fairly specific recommendations. But the discussions we have as we decide on those recommendations typically hint at larger things happening in the tech industry. So here, I鈥檒l expand on that bigger picture.
Those of us in the software industry are well placed to deal with working from home, but are not immune to the realities of closed schools, unavailable childcare and general pandemic-induced stresses. It鈥檚 especially important to be tolerant of individual circumstances as not everyone is lucky enough to have a well-appointed home office or children who are able to take care of themselves.
In the first few weeks there was a scramble for basic infrastructure, access and tooling but the basics are all in place now. Remote collaboration is moving from 鈥渃an we even do this?鈥 to 鈥渨hat is the right way to do this?鈥 and there鈥檚 a lot to be learned here. Many people are realizing that being on video all day is draining, and that translating in-person collaboration techniques directly into the digital world isn鈥檛 very effective. Instead, we all must think carefully about when teams should be online, when asynchronous collaboration can be used instead, and which digital facilitation tools work best for our context. We produced the Radar remotely due to the pandemic and learnt a lot in the process; if you鈥檙e interested in learning more we recorded a detailed podcast on our experiences.
魅影直播 is a strong advocate of pair programming, and we鈥檝e blipped 鈥鈥 in this edition of the Radar.
听
The pandemic has shown every CIO the cracks in his or her digital infrastructure, whether that鈥檚 resiliency and scaling as customers moved online, or the ability to rapidly make changes, add features and get them into production. Most organizations have realized the inconvenient truth: they鈥檙e way behind the state of the art and are struggling to do 鈥渄igital transformation鈥 (whatever that means) to catch up.
As a consultancy, we have a fairly broad view across the industry and some of the changes have been quite positive. Clients that previously said 鈥測ou must work in the office on our hardware鈥 have relaxed their stance. In-person time has been replaced by virtual face-to-face time. In some cases this is a massive benefit: our clients can tap into a global network of experts and it doesn鈥檛 matter where that person is located (modulo time zones, of course). What鈥檚 interesting is that although in theory our clients could have accessed these people pre-pandemic, there鈥檚 much less of a barrier to doing so right now. There鈥檚 zero expectation someone will show up in person, so there鈥檚 no reluctance on our part to propose a non-local expert to help a client. I鈥檓 hopeful that across the industry we can all do more remote work in future rather than getting on airplanes all the time.
(MIT) believes that the current crisis has accelerated us forwards a decade in terms of acceptance of remote working, and that there is no going back. Downtown office space will become less valuable as people decide they鈥檇 rather work from home or in a small neighborhood office than drive an hour into work. Tech companies expect to have a large proportion of their , maybe even 70% of staff on a permanent basis.

Tech conferences have also gone fully virtual, and are innovating in really interesting ways. One example is 鈥鈥 a one-day conference hosted entirely inside the game Animal Crossing New Horizons. Presenters and attendees used in-game avatars to visit the conference islands and were able to create some of the smaller-group interactions that we value so much from physical conferences.
One positive aspect of everyone staying home and industry being shuttered is that we have, albeit temporarily, reduced pollution. Some estimates say . Renewables continue to increase their market share, for the first time . We鈥檙e driving less, with cities seeing improved traffic flows and reduced accidents. The state of , saving it $40 million per day or roughly $1 billion since its shelter-in-place order began. It鈥檚 possible that the collectivism and trust in science required to fight an invisible virus may help us do more to tackle climate change in future, too.
While the human and economic costs of the pandemic continue to be very serious, I鈥檓 hopeful that the tech industry can use it as an opportunity to accelerate, reduce carbon heavy travel, and increase inclusivity and innovation.
A good example of this is 鈥.鈥 This is quite old advice, originally added to the Radar in 2011. Our colleague Kief Morris published a on the topic back in 2016, with an updated copy due to be released later this year. Today, we鈥檙e seeing many organizations get into trouble with their cloud migrations in part because they aren鈥檛 applying enough rigor to cloud infrastructure definitions, management and automation. So rather than putting 鈥渉and crafted cloud templates鈥 or 鈥渇ailing to version control cloud infrastructure definitions鈥 on Hold, we鈥檝e taken the opportunity to refresh and re-highlight our advice on the matter. Similarly, we have reblipped and refreshed .
Much of this arises because one of the major storylines of the past decade has been the rise of software, the rise of cloud and the rise of 鈥渁s a service.鈥 All of these enable us to use easily malleable software, or descriptions of a thing, rather than a hard-coded or physical instantiation which is slower to change. As a result, all of the important practices we鈥檝e learnt about how to create software well 鈥 modularity, version control, automated testing 鈥 can and should be applied in these wider 鈥渟oftware powered鈥 contexts.
Firstly, there tend to be what I would call 鈥渉ighly optimistic鈥 cost savings and ROI projections for cloud migration. Yes, owning and operating a data centre is expensive, but cloud hosting isn鈥檛 cheap either. It鈥檚 unlikely you鈥檒l really save anything on staffing costs. And when the limit on your usage is how fast teams can click the 鈥渃reate an instance鈥 button, rather than IT provisioning a server, your overall environment sprawl can become a massive, costly problem.
Secondly, 鈥渓ift and shift鈥 is often used as a deliberate migration strategy, rather than a derogatory comment that someone isn鈥檛 thinking carefully about their migration. Enterprise IT estates have many hundreds, and usually thousands, of individual systems that need to run somewhere. Re-engineering all of them to properly understand and operate in a cloud environment is obviously cost prohibitive. But cloud isn鈥檛 like on-prem 鈥 servers fail, workloads are constantly moved around. Getting a traditional workload to run reliably in the cloud usually isn鈥檛 a zero-cost venture either. The reality is that the best answer for an organization is highly complex and varies for each application or group of applications, and the more we can re-engineer for cloud, the more we can improve reliability and reduce costs.
Third, and very related, is that there is still much to learn about the right way to build and run systems in the cloud. Many organizations are discovering that 鈥渂eing in the cloud鈥 hasn鈥檛 helped them cope with the surge in demand from the pandemic and associated lockdowns and hasn鈥檛 helped them release new features faster. Cloud architecture is a difficult new field of expertise and teams need to learn how to deploy, evolve, maintain and improve their cloud-based systems. This is something that takes time and much more thought than 鈥渏ust throw the stuff on Amazon.鈥
Today鈥檚 most meaning-free term is probably 鈥渄igital transformation鈥 which, depending on who鈥檚 using it, can mean any one of the following:
I hope you鈥檝e enjoyed this round up of trends within the tech industry, and that you are staying safe and healthy. I鈥檇 like to thank Andy Yates, Fausto de la Torres, Gareth Morgan, Kief Morris and Rebecca Parsons for their suggestions on drafts of this article
Remote-everything, for the foreseeable future
Like me, you鈥檙e probably exhausted reading overwrought pandemic-related commentary. But the implications of COVID-19 for the tech industry are large and things won鈥檛 ever return to the way they were before this crisis. Here are what I consider the most important facts and likely changes.Those of us in the software industry are well placed to deal with working from home, but are not immune to the realities of closed schools, unavailable childcare and general pandemic-induced stresses. It鈥檚 especially important to be tolerant of individual circumstances as not everyone is lucky enough to have a well-appointed home office or children who are able to take care of themselves.
In the first few weeks there was a scramble for basic infrastructure, access and tooling but the basics are all in place now. Remote collaboration is moving from 鈥渃an we even do this?鈥 to 鈥渨hat is the right way to do this?鈥 and there鈥檚 a lot to be learned here. Many people are realizing that being on video all day is draining, and that translating in-person collaboration techniques directly into the digital world isn鈥檛 very effective. Instead, we all must think carefully about when teams should be online, when asynchronous collaboration can be used instead, and which digital facilitation tools work best for our context. We produced the Radar remotely due to the pandemic and learnt a lot in the process; if you鈥檙e interested in learning more we recorded a detailed podcast on our experiences.
魅影直播 is a strong advocate of pair programming, and we鈥檝e blipped 鈥鈥 in this edition of the Radar.
听
In short, pairing can absolutely be done in a remote-only world but you have to be sensible about tools, bandwidth and time zones.听
The pandemic has shown every CIO the cracks in his or her digital infrastructure, whether that鈥檚 resiliency and scaling as customers moved online, or the ability to rapidly make changes, add features and get them into production. Most organizations have realized the inconvenient truth: they鈥檙e way behind the state of the art and are struggling to do 鈥渄igital transformation鈥 (whatever that means) to catch up.
As a consultancy, we have a fairly broad view across the industry and some of the changes have been quite positive. Clients that previously said 鈥測ou must work in the office on our hardware鈥 have relaxed their stance. In-person time has been replaced by virtual face-to-face time. In some cases this is a massive benefit: our clients can tap into a global network of experts and it doesn鈥檛 matter where that person is located (modulo time zones, of course). What鈥檚 interesting is that although in theory our clients could have accessed these people pre-pandemic, there鈥檚 much less of a barrier to doing so right now. There鈥檚 zero expectation someone will show up in person, so there鈥檚 no reluctance on our part to propose a non-local expert to help a client. I鈥檓 hopeful that across the industry we can all do more remote work in future rather than getting on airplanes all the time.
(MIT) believes that the current crisis has accelerated us forwards a decade in terms of acceptance of remote working, and that there is no going back. Downtown office space will become less valuable as people decide they鈥檇 rather work from home or in a small neighborhood office than drive an hour into work. Tech companies expect to have a large proportion of their , maybe even 70% of staff on a permanent basis.

Tech conferences have also gone fully virtual, and are innovating in really interesting ways. One example is 鈥鈥 a one-day conference hosted entirely inside the game Animal Crossing New Horizons. Presenters and attendees used in-game avatars to visit the conference islands and were able to create some of the smaller-group interactions that we value so much from physical conferences.
One positive aspect of everyone staying home and industry being shuttered is that we have, albeit temporarily, reduced pollution. Some estimates say . Renewables continue to increase their market share, for the first time . We鈥檙e driving less, with cities seeing improved traffic flows and reduced accidents. The state of , saving it $40 million per day or roughly $1 billion since its shelter-in-place order began. It鈥檚 possible that the collectivism and trust in science required to fight an invisible virus may help us do more to tackle climate change in future, too.
While the human and economic costs of the pandemic continue to be very serious, I鈥檓 hopeful that the tech industry can use it as an opportunity to accelerate, reduce carbon heavy travel, and increase inclusivity and innovation.
X is software too
For me, some of the most interesting (and entertaining!) discussions around the Radar are what to put on 鈥楬old.鈥 Thoughtworkers around the world raise things they think are a problem and if we consider something to be a cross-industry concern, we add it to the Radar in the Hold ring. But as we dug into the reasoning and concerns surrounding several proposed 鈥楬old鈥 blips it became clear to us that some of these problems aren鈥檛 new, they鈥檙e an older problem arising in a new (or more widespread) context. In many cases our previous advice on the right thing to do 鈥 the positive practice to 鈥楢dopt鈥 鈥 is still relevant today.A good example of this is 鈥.鈥 This is quite old advice, originally added to the Radar in 2011. Our colleague Kief Morris published a on the topic back in 2016, with an updated copy due to be released later this year. Today, we鈥檙e seeing many organizations get into trouble with their cloud migrations in part because they aren鈥檛 applying enough rigor to cloud infrastructure definitions, management and automation. So rather than putting 鈥渉and crafted cloud templates鈥 or 鈥渇ailing to version control cloud infrastructure definitions鈥 on Hold, we鈥檝e taken the opportunity to refresh and re-highlight our advice on the matter. Similarly, we have reblipped and refreshed .
Much of this arises because one of the major storylines of the past decade has been the rise of software, the rise of cloud and the rise of 鈥渁s a service.鈥 All of these enable us to use easily malleable software, or descriptions of a thing, rather than a hard-coded or physical instantiation which is slower to change. As a result, all of the important practices we鈥檝e learnt about how to create software well 鈥 modularity, version control, automated testing 鈥 can and should be applied in these wider 鈥渟oftware powered鈥 contexts.
Cloud is the new legacy ball of mud
Every organization in the world is moving to some kind of cloud hosting, whether private, public or hybrid, and the are choosing between the 鈥淏ig 4鈥 鈥 AWS, Azure, GCP and Alicloud. But in their exuberance for getting systems off-prem and onto cloud, many could be creating problems for tomorrow. There are several issues here.Firstly, there tend to be what I would call 鈥渉ighly optimistic鈥 cost savings and ROI projections for cloud migration. Yes, owning and operating a data centre is expensive, but cloud hosting isn鈥檛 cheap either. It鈥檚 unlikely you鈥檒l really save anything on staffing costs. And when the limit on your usage is how fast teams can click the 鈥渃reate an instance鈥 button, rather than IT provisioning a server, your overall environment sprawl can become a massive, costly problem.
Secondly, 鈥渓ift and shift鈥 is often used as a deliberate migration strategy, rather than a derogatory comment that someone isn鈥檛 thinking carefully about their migration. Enterprise IT estates have many hundreds, and usually thousands, of individual systems that need to run somewhere. Re-engineering all of them to properly understand and operate in a cloud environment is obviously cost prohibitive. But cloud isn鈥檛 like on-prem 鈥 servers fail, workloads are constantly moved around. Getting a traditional workload to run reliably in the cloud usually isn鈥檛 a zero-cost venture either. The reality is that the best answer for an organization is highly complex and varies for each application or group of applications, and the more we can re-engineer for cloud, the more we can improve reliability and reduce costs.
Third, and very related, is that there is still much to learn about the right way to build and run systems in the cloud. Many organizations are discovering that 鈥渂eing in the cloud鈥 hasn鈥檛 helped them cope with the surge in demand from the pandemic and associated lockdowns and hasn鈥檛 helped them release new features faster. Cloud architecture is a difficult new field of expertise and teams need to learn how to deploy, evolve, maintain and improve their cloud-based systems. This is something that takes time and much more thought than 鈥渏ust throw the stuff on Amazon.鈥
Semantic diffusion keeps diffusing
Without meaning to sound too much like an old man yelling at clouds, I have to point out that the industry continues to adopt and misuse terms that have specific meanings. I鈥檝e long been annoyed with developers using 鈥渞efactoring鈥 to mean 鈥渇ixing something鈥 and today we see more of the same with terms such as 鈥淐I/CD鈥 (those are two different things!), 鈥淒evOps鈥 (no, please don鈥檛 build a 鈥淒evOps team鈥), 鈥渕icroservices鈥 (that鈥檚 different from SOA how?) and 鈥渁s code鈥 (that鈥檚 how you would treat your code?).Today鈥檚 most meaning-free term is probably 鈥渄igital transformation鈥 which, depending on who鈥檚 using it, can mean any one of the following:
- Improving digital literacy for employees
- Better tools for collaboration, such as Zoom, Teams, Trello and Slack
- Agile IT, or
- Holistic transformation of the business leveraging the power of technology to create more value for customers and respond to rapid changes in the competitive landscape
I hope you鈥檝e enjoyed this round up of trends within the tech industry, and that you are staying safe and healthy. I鈥檇 like to thank Andy Yates, Fausto de la Torres, Gareth Morgan, Kief Morris and Rebecca Parsons for their suggestions on drafts of this article
Disclaimer: The statements and opinions expressed in this article are those of the author(s) and do not necessarily reflect the positions of 魅影直播.