Last week, I wrote about the lurking variable in banking as it pertained to efficiency. This week, let’s talk a bit about confounding.
Confounding is interesting in that it interacts with both the dependent and independent variable in a manner that could explain away some or all of the correlation between the two variables.
In particular, today is a day that everyone seems to be running away from being the “establishment.” I even heard an “established media” member talking about how the “established media got it all wrong” referring to the elections outcome in the U.S.!
That got me thinking – How can we run away from ourselves? Put another way, how can an establishment run away from itself without even taking its shadow with it?
In the 1990s, in the technology industry (as well as in banking), mainframe was the establishment and client-server the model that challenged the incumbent. In the 2000s, client-server became the establishment, even as mainframe remained an establishment, and cloud became the new challenger.
Does this mean that as new challengers come about, the establishment just keeps getting larger? Do “legacies” just augment one another?
Upon further reflection, you gather that the “establishment” is really not just about technology but also about the organization. People as well as processes can become somewhat resistant to change.
The banking industry has tried to get away from the establishment through out-tasking, outsourcing and so on, but the controls it held on to allowed its shadow to eclipse it.
Today, as the hybrid cloud model brings about tremendous efficiencies and a very different way to view infrastructures and associated cost models, the approach is beginning to confound traditional models of do-it-yourself or outsource-the-problem in an effort to gain cost efficiencies.
The business model change that was “lurking” in my prior article can now be contrasted to the hybrid cloud that “confounds” cost reduction through traditional means because it is present while not being considered appropriately.
So let us not be worried about what is “lurking” or “confounding” when the answer is before us: It’s hybrid cloud in this increasingly digital world.