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Google’s general manager of enterprise business Tuesday said a “crisis” in IT is preventing enterprises from pursuing the type of innovations that allow businesses to grow.
Speaking in Boston at the Mass Technology Leadership Council’s annual meeting, Google’s Dave Girouard said the “insane complexity” of technology is leading companies to spend 75% to 80% of IT budgets simply maintaining the systems they have already. Besides a shortage of money, Girouard notes CIOs face strict regulations and an impending brain drain with many IT officials approaching retirement.
“The way Google built what is on the order of a $10 billion business in eight years was through some pretty amazing innovation,” said Girouard, who is also a vice president at Google. “CIOs in particular are really in a difficult situation, and innovation isn’t something they can spend the majority of their waking hours talking about. The information technology business as it pertains to large businesses has become a lot of maintenance.”
Girouard promoted the software-as-a-service model, saying companies should join this growing trend of outsourcing IT tasks, even if it means trusting third parties with sensitive information.
A century ago, most large companies had a vice president of electricity, according to Girouard. Just as the management of electricity became routine, Girouard said, so will many IT functions.
“A lot of things that people think of as core IT functions need to disappear into the ether so that the IT organization can properly focus on the value-added [activities],” he said. “Information security, as critical as it is, needs to be taken care of by organizations who live and die by it, who invest the money, time, resources and staff. Why should every company in the world have to build up their own expertise and have to maintain servers and provide security?”
Girouard also discussed the “consumerization of information technology,” describing budding efforts to bring the user-friendly features of consumer products to the workplace. Makers of enterprise technologies tend to add lots of features as a way to improve a product, but instead the extra bells and whistles often make products so complex they detract from the user experience, he said.

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Comments (11)
Google HubrisBy Anonymous on January 30, 2007, 10:24 amGoogle is eerily reminiscent of the tech giants of the 90's, flush with profits from a business model that seems to add little to the economy and blowing money hand...
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Complexity is as complexity doesBy Anonymous on January 26, 2007, 1:13 pmThe complexity most often comes from having to leverage forward a massive investment in business logic housed in a now outdated technology package. Much of the architecture...
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The Legacy that Built Corporate AmericaBy Anonymous on January 26, 2007, 1:10 pmWell, I read this article and it seems the conclusion the reader is supposed to draw is: outsourcing, outsourcing and more outsourcing. That wasn't what I expected....
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Not necessarily the caseBy Joseph Martins on January 25, 2007, 3:16 pmAnonymous, Building, particularly if you plan to use an in-house development team, is not necessarily cheaper than buying when you consider the cost of the team...
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State ITBy Anonymous on January 24, 2007, 7:03 pmIncompetence is not a state monopoly and competence isn't a private monopoly. I've seen disasters in both but the really BIG ones were private contractors on state...
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