December 2009

What’s The Price Of Software Tomorrow?

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Traditional Software Licensing Comes To An End 

Cloud computing, on-demand solutions, subscription fees… software licensing is undergoing significant changes. Enforced by the current economic crises with tight IT budgets, companies don’t have the money to pay upfront licenses and are reluctant to take financial risks over many years when purchasing software. A key factor of the current growth of cloud computing is its financial benefits: no capital expenditures, no upfront financial risk, no depreciation and nothing on the balance sheet! But pay-by-use licensing models are not necessarily limited to cloud deployment models and can be applied to more traditional implementations as well.

Traditional software licensing with upfront payments has served vendors well over the last 40 years. However, over time vendors had to face significant disadvantages as well. The pressure to successfully close quarter by quarter and the fiscal year has led to a common practice by customers to push decisions until year end for a special deal. Discounts up to 80% became not uncommon in the software business. Another problem is the revenue volatility in difficult economic times. In 2009 many software companies had to face a decline in new license revenues of 10 to 25%. Without the constant stream of maintenance revenues many software companies would be facing severe financial problems today.

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The Decade that Music Forgot (A Brief Glance Back on the 10 Years that Unraveled the Music Industry)

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In a couple of days’ time the doors will close on a decadum horribilis for the music industry. Although recorded music revenues actually grew in 2001, the seeds of the forthcoming whirlwind were already well and truly sown. In fact one single event can be identified as the trigger: the launch of Napster in 1999.  Of course other seeds had also taken root in the late nineties, including the launches of MP3.com, the PMP300 and the MPMan.  But according so much importance to Napster is more than a useful construct for the historical narrative: Napster was more than just a metaphor for the transition from the distribution era to the consumption paradigm, it was the crucible of the music industry’s 20th century meltdown.

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HP Completes EDS Integration, But Major Challenges Remain

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When HP acquired EDS in May 2008 it was clear that in the short term the company would have to manage significant integration challenges before the medium and long term benefits of the acquisition would come to bear. Now, 18 months later, HP claims that the acquisition has been completed and so it is time to take a closer look at what has been achieved so far. 

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Motivating Your IT Workforce – Is There Anything New Under The Sun?

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This caught my eye recently in a CIO-focused publication. Titled “Ten Ways To Re-energize Your IT Workforce”, it is advice from a workforce motivation expert: “Jon Gordon, a consultant for the NFL and numerous Fortune 500 enterprises, and the author of ‘The Shark and the Goldfish: Positive Ways to Thrive During Waves of Change.’ He offers ten recommendations for reenergizing and engaging employees in the face of economic turmoil.”

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Key Learning Trends for 2010: Are You Onboard?

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Even with year 2009's challenging economic environment, learning has not taken the drastic hit some pundits feared. In fact, in the past year I have heard more executives talk about the importance of keeping employees well-skilled and knowledgeable than ever before. Knowledgeable employees equate to greater business success. I've also seen CLOs and VPs for HR and Learning focus on making sure that learning experiences are in line with company's short and long term goals.

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Consumer Broadband Is The Workforce Technology Of The Decade

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That call may surprise you. You might have put storage or Gigabit ethernet or the Internet itself at the top of the list. But when I think about what's different in the life of your average information worker as the decade comes to a close, it's the instant-on access to just about everything that the adoption of consumer broadband has fueled.

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Trends That Will Shape Market Research In 2010

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Reineke Reitsma

[Posted by Reineke Reitsma]

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In hindsight, 2009 marked a turning point for the market research industry, when technology and innovation became part of the ongoing discussion on how to move the industry forward while balancing the realities of a business world in a recession.

In the recently published report 'Predictions 2010: What Will Happen In Market Research' my team and I have identified ten trends that will shape market research in 2010. Three of these ten trends are:

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More Prognostications for 2010

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Several of my Forrester colleagues have already weighed in with their 5_carsoninsightful 2010 predictions. I recently chatted with Shamus McGillicuddy at TechTarget where I shared my thoughts on the upcoming year. You can read the article here.  

2010 is going to be an interesting year with economic concerns impacting the security business. I suspect that businesses will need to regroup and think about their security spend again next year. Companies will probably remain gun-shy and hold budgets close to their vests. This could set up a shootout between increasing security threats and the desire to continue to control costs. Who will win? Your thoughts?

Happy Holidays y'all and here's wishing you a Secure New Year!

Security Predictions For 2010

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Trying to avoid the obvious and the already underway, here are my predictions for 2010.

1. Cloud security standards emerge. By the end of 2010, we’ll see a framework emerge for establishing a well defined set of technology, practices, and processes, organized into different levels of trust. Ultimately, adherence to these specifications will need be certified by third parties. The effort won’t be complete, but it will be underway. Look to the government as key industry (other than the vendors) driving this effort.

COROLLARY: The use of cloud will take off as adopting organizations by and large overcome their security concerns – or at least, understand them at a specific enough level to seek out providers that satisfy these concerns.

2. Federation will start to take off by the end of 2010. Use of federation will be fueled by SaaS and cloud computing and the need for single sign-on to bridge identity from the enterprise to those external environments. Where standards reign over kludges, SAML will be the leading mechanism. OpenID will continue to be just a lab toy for the "Identerati".

3. Managed Security Services expands far beyond “Managed”. Organizations are not only turning to managed security services, they are seeking more from their providers than merely assuming operational functions. Increasingly, they seek partners to help them with security strategy, benchmarking, making the business case, and integration. MSSPs that are in fact multifaceted solution providers will start to establish market dominance. Big winners will be IBM, VZB, Wipro, among others.

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The Data Digest: Social Technographics in Canada

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Reineke Reitsma

[Posted by Reineke Reitsma]

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Canadians with online access are active users of social technologies like blogs, forums, social networks, and user-generated content: According to our North American Technographics® Q3 2009 survey, 79% of online Canadians engage with social media at least once each month.

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