Episode #5, this episode aired on September 06, 2024
Analyst: Dion Hinchcliffe
Publication Date: September 26, 2024
Document #: CPRDH202409
In this week’s CIO Pulse Report, Dion Hinchcliffe from The Futurum Group covered many topics affecting the IT and technology landscape, from Intel’s latest processor launch to significant AI and enterprise tech developments. The CIO Pulse Report also covered the competitive nature of collaborative work management platforms, the changing perceptions of IT’s value, and insightful interviews with interim and foundational CIOs. Here’s a comprehensive summary of the key takeaways.
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What Are Covered in This Episode:
- Intel’s launch of Core Ultra processors with AI-driven performance enhancements
- Smartsheet’s financial success in Q2 2025, driven by AI adoption
- IT’s ongoing perception problem and the need to prove technology’s value
- The rise of re-skilling initiatives in IT
- Interim CIO roles and their importance in times of transition
- Foundational CIOs and their strategies in building IT teams for the future
Intel Launches Core Ultra Lunar Lake Processors
Intel made waves with the launch of its latest Core Ultra laptop processors, code-named Lunar Lake, at a significant event in Berlin. These processors are part of Intel’s new “Core Ultra Series 2,” designed to deliver substantial performance enhancements over last year’s Meteor Lake processors. Intel promises a 30% increase in performance with reduced power consumption, which is crucial for enterprises focusing on productivity and cost efficiency.
Introducing Lunar Lake simplifies Intel’s confusing product line, making it easier for businesses to make informed purchasing decisions. All models start with the number 2 and end with the letter V, with differences primarily related to clock speed and GPU performance. These processors also come equipped with neural processing units (NPUs) capable of 45 trillion operations per second, qualifying them as Copilot+ PCs—optimized for AI workloads. This positions Intel to cater to businesses looking to future-proof their IT infrastructure, especially those investing in AI-driven solutions.
However, Intel still faces skepticism in the market due to previous reliability issues, and Lunar Lake’s success will depend on how well it addresses these concerns in the long term.
Smartsheet’s Q2 2025 Financial Success
Smartsheet, a leading collaborative work management platform, surpassed expectations in its Q2 2025 earnings, reporting $276 million in revenue—a 17% year-over-year growth. The company’s annual recurring revenue (ARR) reached a record $1.093 billion, up 17% year-over-year. Key clients, such as Intuit, Chewy, and Citi National Bank, expanded their use of Smartsheet during the quarter, with enterprise demand for its platform continuing to rise.
One growth area has been Smartsheet’s AI adoption, with nearly 50% sequential growth in users leveraging AI tools for data analysis, formula generation, and workflow automation. As AI becomes more embedded in enterprise tech stacks, Smartsheet’s ability to automate critical tasks and drive productivity makes it competitive.
However, the competition is heating up, with Atlassian and ServiceNow making strides to offer similar features. Smartsheet must continue emphasizing its enterprise-grade functionality to maintain its lead in collaborative work management.
IT’s Perception Problem and Budget Challenges
A survey conducted by industry futurist Thornton May revealed that over 90% of senior technology executives believe IT has a perception problem when demonstrating its value. The survey found that skepticism about IT’s ability to drive productivity has grown, echoing sentiments from the late 1980s. This issue challenges CIOs to secure 2025 budgets as technology increasingly consumes business resources.
Thornton May suggests that IT leaders must shift from blaming users for underutilizing tech to empowering employees to become “technology value creators.” CIOs should work on measuring and communicating the tangible benefits that IT investments bring to the business, such as increased productivity, market share, or cost savings. Vince Kellen, CIO at the University of California, San Diego, also emphasizes the importance of more apparent narratives around IT’s impact.
For CIOs, the key takeaway is that securing future investments will require proving IT’s value more effectively, moving beyond traditional arguments for technology purchases.
HPE Delivers Strong Q3 2024 Financial Results
Hewlett Packard Enterprise (HPE) announced strong Q3 2024 financial results, driven mainly by its hybrid cloud and AI market leadership. The company reported $7.7 billion in revenue, a 10% year-over-year increase, and its ARR reached $1.7 billion—up 39% from the prior year. A notable highlight was HPE’s AI systems revenue, which grew by 39% to $1.3 billion for the quarter. HPE’s GreenLake platform also gained 3,000 new customers, bringing its total customer base to 37,000.
While HPE saw significant gains in its AI and hybrid cloud segments, the company faced challenges in other areas. Its Intelligent Edge revenue dropped by 23%, and hybrid cloud revenue decreased by 7% year-over-year. Nonetheless, HPE’s commitment to the hybrid cloud market continues to pay off, mainly as enterprises prioritize private cloud solutions for AI training, high-performance computing, and security.
For CIOs, the main takeaway is that HPE remains a strong choice for hybrid cloud and AI infrastructure. Still, as competition from AWS, Microsoft Azure, and Google Cloud intensifies, HPE’s ability to continue innovating will be crucial to maintaining its edge.
The Rise of Re-skilling in IT
A survey by Express Employment Professionals and Harris reveals that 68% of over 1,000 hiring managers plan to reskill employees in 2024, a sharp rise from 60% in 2021. With tight hiring budgets, reskilling has become a go-to strategy for closing skill gaps. Reskilling allows companies to upskill their current workforce, providing them the tools to transition into new roles, such as moving from software development to AI-related work.
John Roller, an Express franchise owner in New Hampshire, notes that re-skilling offers a more predictable model than traditional recruiting, which he describes as a “hit or miss” approach. While re-skilling can be cost-effective, it requires a real investment in training programs, including e-learning, mentorship, and cross-training initiatives.
Interim CIOs: A Valuable Resource During Transition Periods
In an interview, interim CIO expert Steve diFilipo explained the nuances of his role. Unlike a fractional CIO, who may work for multiple companies at once, an interim CIO is typically hired during times of transition, such as when a CIO leaves suddenly or when an organization needs help stabilizing its IT operations. Steve shared that interim CIOs are contracted for a specific duration, often to write job descriptions, stabilize the IT environment, or guide organizations through strategic changes.
For smaller organizations that lack the resources to hire full-time CIOs, interim CIOs are valuable. According to Steve, the key to success in this role is quickly assessing the company’s situation and getting operations back on track. His experience in marketing and IT for Fortune 500 companies has helped him develop strong interpersonal skills, allowing him to build trust quickly with teams.
Building Foundations and Rebooting IT Teams
Martin Davis, a foundational CIO with extensive experience in the manufacturing sector, shared insights into building IT teams from the ground up. Having worked with major companies such as Ford Motor Company and J.D. Irving, Martin has helped restructure IT departments to align with business goals. In his role as a manufacturing CIO, he emphasized the importance of operational technology (OT) and using data to drive productivity.
Martin highlighted the role of Industry 4.0 in revolutionizing manufacturing by leveraging data to optimize throughput, reduce downtime, and enhance quality control. In one example, his team saved a company $5 million in unnecessary equipment investments by analyzing production line data and identifying bottlenecks upstream.
However, Martin also raised concerns about the aging workforce in the manufacturing sector, where many experienced OT professionals are approaching retirement. To mitigate this issue, he advocated for increased automation and AI integration to reduce dependency on human labor in operational roles.
The Future of Manufacturing and Industry 5.0
As the manufacturing industry continues to evolve, Martin predicts a future where “lights-out factories” become the norm, with robots and AI handling most operations. This shift will allow companies to focus more on managing automation rather than traditional human labor, which is becoming harder to attract to the industry.
As Industry 5.0 continues to emerge, the collaboration between humans and robots (co-bots) will play an increasingly significant role in driving productivity in manufacturing.
Looking Forward
The CIO Pulse Report for the week ending September 6th, 2024, provided valuable insights into the latest technology and IT leadership developments. From Intel’s latest processors designed for an AI-driven future to Smartsheet’s strong financial performance and the growing trend of re-skilling in IT, there’s no shortage of innovation in the enterprise tech space. Meanwhile, CIOs such as Steve diFilipo and Martin Davis offer a wealth of experience in the evolving roles of interim and foundational CIOs in driving organizational growth. As enterprises face increasing challenges, from hybrid cloud adoption to budget negotiations, the focus will remain on proving IT’s value and preparing for a future where AI, automation, and data play critical roles.
This article covers the entire spectrum of discussions, from the latest trends in AI-driven technology to evolving strategies for IT leadership and enterprise success, offering critical takeaways for business and tech leaders navigating these fast-paced changes.
Disclosure: The Futurum Group is a research and advisory firm that engages or has engaged in research, analysis, and advisory services with many technology companies, including those mentioned in this article. The author does not hold any equity positions with any company mentioned in this article.
Analysis and opinions expressed herein are specific to the analyst individually and data and other information that might have been provided for validation, not those of The Futurum Group as a whole.
Other insights from The Futurum Group:
Are Enterprises Ignoring Mainframe Skills in Their Modernization Push?
Author Information
Dion Hinchcliffe is a distinguished thought leader, IT expert, and enterprise architect, celebrated for his strategic advisory with Fortune 500 and Global 2000 companies. With over 25 years of experience, Dion works with the leadership teams of top enterprises, as well as leading tech companies, in bridging the gap between business and technology, focusing on enterprise AI, IT management, cloud computing, and digital business. He is a sought-after keynote speaker, industry analyst, and author, known for his insightful and in-depth contributions to digital strategy, IT topics, and digital transformation. Dion’s influence is particularly notable in the CIO community, where he engages actively with CIO roundtables and has been ranked numerous times as one of the top global influencers of Chief Information Officers. He also serves as an executive fellow at the SDA Bocconi Center for Digital Strategies.
