The benefits of virtualization are quite obvious but when you start to really increase the density of virtual machines in order to maximize utilization suddenly it ain't such a simple proposition. The latest CPUs from AMD and Intel are more than up to the task of running 10-20 or more applications at a time. Most servers run out of memory and I/O bandwidth well before processing power. Recent announcements from the leading server vendors have been made to address the memory side by packing more DIMMs onto a single motherboard (including blade server boards), but you can only add so many Ethernet cards and Fibre Channel HBAs. Oh yeah, and then there's the switch ports to go with them (blade systems help a lot here).
On November 7th, I facilitated Forrester’s second sales enablement roundtable – this time in Foster City,California.Joining us were sales and marketing executives from:Intel, NetApp, Borland, Informatica, Sun, Interwoven, Microchip, Renesas, Juniper Networks, Trend Micro, and Thoughtworks.
Overall, we had an extremely high energy session, even though I lost my voice the previous week.It’s hard to summarize a whole day of intense discussion into a blog post, but I’ll give it a try.
But now comes Intel's announcement that it expects revenue for the fourth quarter to be down 10% from its original forecast. What does this mean? I have a few thoughts:
1) Intel is not the bellwether that it once was. Personal computers and servers, the primary destination for Intel's processors, are not nearly as large a percentage of tech spending as they were back in 2001.
2) Layoffs in the economy have already begun. Fewer employees, fewer PCs needed.
3) Large companies are accelerating virtualization projects. Virtualization is a fancy word for running more applications on fewer servers. It is greener (less power), simpler (fewer servers to break), and cheaper. Good for companies looking to lower capital expenditure and operating expenses in a recession, but bad for Intel.
Forrester has been predicting that the two tech segments that would be hit hardest in the recession are computing hardware (PCs and servers) and communications gear. But services and software (Intel plays in neither) would fare better. Exit polling would appear to indicate this result.
With retail confidence and global cargo volumes at their lowest for 5 years, retailers face increased pressure to identify quick ways to minimize costs, reduce unplanned mark downs and avoid incidence of “out-of-stock”, while trying to stretch margins, improve the merchandizing mix and increase customer satisfaction.
One retail executive told Forrester “I have any number of proposals to engage in multi year, multi million IT projects. But we don’t have the luxury to indulge in those. My boss needs results now. I need to prove that we are making progress against our financial and strategic objectives in the next quarter or two.“
To help our readers, Forrester is currently exploring simple retail IT investments that can yield immediate results. Got ideas or input? Take our confidential survey on Retail IT Investment Priorities to help develop a framework that will help identify quick wins and self funding IT initiatives that are capable of generating returns for shareholders in six month or less.
General George Patton’s unparalleled ability to execute in WWII sometimes gets overshadowed by his colorful (and stupid) public relations. Because of his quick strike abilities, the Axis leaders feared him more than any other Allied general.What made him truly unique, and someone still studied in military academies throughout the world today, was his formula for success.Patton had a voracious appetite for history and believed that humanity already had a master inventory of all of the strategies and tactics for winning a battle.
Earlier this week, The Boston Globe reported that Egenera laid off short of 100 employees under the guise of the weakening economy, but there is more to this story. The reduction also reflects a shift in strategy to increase its focus on PAN Manager, its virtualization management software. Originally tied to its unique BladeFrame hardware products, PAN Manager was freed earlier this year and is currently distributed by Fujitsu-Siemens and Dell. As is often the case for hardware companies, Egenera's crown jewels are in this software and PAN Manager is one of the most mature, feature rich and enterprise tested of the virtualization software managers on the market.
I am experiencing Cloud fatigue already. If I hear anyone even come close to uttering the word "Cloud 2.0", I might be found hiding in the Forrester fitness room in a fetal position. I am a fan of Cloud computing and my colleague James Staten has a great report on cloud in the enterprise. I think that cloud computing such Amazon EC2, Microsoft Azure, IBM, Google AppEngine, and others are legitimate and have a great future in infrastructure. What I am not a fan of is the buzzword grab going on by many technology companies saying they work in the cloud, have a cloud strategy, or have a new cloud offering à la SOA, Web 2.0, and whatever is next. Vendor X can work in the cloud. Well, no kidding. You just spin up your platform in the cloud and run your app on it.
At Dreamforce today, here in San Francisco, Salesforce.com announced a significant, and seemingly long overdue, enhancement to its SaaS offering. They announced Facebook and Force.com for Amazon Web Services that are pre-integrations between their platform and these two other platforms. This new capability lets enterprise customers of their CRM solution (or any other AppExchange or Force.com) provide a public front-end to their instance of these services, directly from these services. The big deal with these additions is that they let you tie third party applications directly into your Force.com applications. In the case of the AWS integration, if you have applications or services built in Java, the LAMP stack or native C code, you can integrate them with your Force.com apps.
But there are new options emerging from governance, risk, and compliance (GRC) vendors. For example, Archer Technologies has added a business continuity management module to its GRC SmartSuite Framework. I recently saw a demo of the offering and I found it to be intuitive and comprehensive. It's also closely aligned with the British Standard for Business Continuity Management, BS 25999. I also recently met with MetricStream, they have also added a BCM module to their GRC platform. Provided that you've already purchased the core GRC platform from one of these vendors, buying the BCM module is significantly less expensive that buying or subscribing to a tier 1 stand-alone BCM offering. Tier 1 offerings start at US$100K and average sales prices can be in the hundreds of thousands of dollars. The add-on modules to these GRC platforms will start between $30K-$50K.