The IT industry is entering a transformative phase focused on simplification. This shift is a response to the complexity that arose from the overbuild during the 2020-2021 phase. The rapid expansion in IT infrastructure during this period has resulted in systems that are now overly complex and challenging to manage, necessitating a streamlined approach.

The Challenge of Complexity Post 2020-2021

In the wake of the 2020-2021 cycle, marked by an unprecedented surge in cloud services and remote infrastructure development, many organizations are grappling with highly complex IT environments. This complexity not only makes management difficult but also increases costs and reduces operational efficiency.

JetBlue’s Growth and Simplification Model

JetBlue Airways, since its IPO in 2002, has shown remarkable growth, largely attributed to its simplification strategy. JetBlue has grown from $320m in December 2002 to $9.6B in December 2022.  By standardizing configurations, from its aircraft fleet to IT systems, JetBlue has managed to maintain lower operational costs and greater agility compared to its competitors. This approach has been central to their success and growth over the past two decades.

Key Technologies for Simplification

1. Network as a Service (NaaS): NaaS offers flexible, scalable network infrastructure and services. It reduces the complexity of traditional network management and lowers costs.
2. Artificial Intelligence (AI): AI can automate routine tasks, provide predictive analytics, and optimize resource allocation, significantly simplifying IT operations.
3. Network and Security Convergence: Integrating network and security functions can streamline operations, improve threat detection, and enhance overall IT security posture.
4. Network Operations Center (NOC) & Security Operations Center (SOC) Transformation: Transforming these centers into holistic incident response hubs can provide a more integrated and effective approach to IT management and security.
5. Operational Technology (OT) Integration with IT: Merging OT with IT infrastructure fosters a unified approach to managing industrial and IT systems, reducing complexity and improving operational efficiency.

These technologies are pivotal in simplifying IT operations, enhancing efficiency, and reducing costs.

Five Approaches to IT Simplification

1. Supplier Rationalization and Reduction: Streamlining the number of suppliers to reduce complexity and improve cost-effectiveness.
2. Standardization of Processes: Implementing standard approaches, use cases, and templates to minimize operational complexities.
3. Utilization of Design Patterns: Adopting proven design patterns to reduce risks and facilitate innovation in IT projects.
4. Leaner Organizational Models: Restructuring organizational models for greater agility and more efficient decision-making.
5. Focus on Core Competencies: Concentrating on core strengths and outsourcing non-essential functions for enhanced efficiency.

Challenges and Strategic Approach

The path to simplification, while beneficial, is not without challenges. It requires a dedicated task force to drive the IT simplification strategy, ensuring that efforts align with the company’s overall goals without compromising service quality or innovation.

Conclusion

As the IT industry moves towards simplification, integrating key technologies and adopting strategic approaches like those exemplified by JetBlue will be crucial. JetBlue’s success since its 2002 IPO is a testament to the effectiveness of a simplification strategy. For other companies, this means thoughtfully balancing efficiency with innovation, ensuring that simplification provides a stable platform for sustainable growth and competitiveness.

Join us at ONUG Spring 2024 on May 15-16 in Dallas to learn more about simplification.