It’s Time For I&O To Return To A Growth Agenda

If you’re anything like me, you’re probably sweating your way through a pretty hot summer. We are, after all, on pace for the hottest year on record. And unfortunately things are going to get worse. Why? Because it’s that time of year again: Budget season. That’s right – it’s time to start thinking about 2011 and sweating through all the infrastructure and operations projects that need investment.

Fortunately, this year will be different.

I just wrapped up a report looking at I&O budgets heading into 2011 and the outlook is quite positive (you can find a copy of the report here). In fact, the biggest takeaway for me is that IT leaders tell us they’ll finally break the age-old MOOSE stalemate— setting aside 70% of the budget for maintenance of organization, systems, and equipment (i.e. MOOSE or “keeping the lights on”) and 30% for new initiatives (i.e. “innovation”). This year we expect to see only half the budget dedicated to the MOOSE, the usual 30% going to new initiatives, and a surprising 20% or so set aside for business expansion efforts.

So what does this mean for you? Today’s I&O executives must:

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Microsoft Truly Does Have Its Head In The Cloud – And Wants Its Partners To Join It!

This week, I was at the Microsoft Worldwide Partner Conference in Washington, D.C., and it was all about THE CLOUD. Now, many colleagues argue that Microsoft will be the second-to-last major vendor to show a 100% cloud commitment, saying that “it’s too embedded in its traditional software business,” “it doesn’t understand the new world,” and “it’d be scared of cannibalizing existing and predictable maintenance revenues.” But I remember Stephen Elop, president of Microsoft Business Systems, tell me with a mischievous grin that he’ll probably earn more money from Exchange Online than the on-premise version — “firstly, it’s mainly new business from other platforms like Lotus Notes, and second, I even generate revenues by charging for things like the data center buildings, the infrastructure, even the electricity I use.” That was in Berlin last November. I suspected then that Microsoft did get it but was just getting its platform ready. This week, I am convinced — Microsoft is “all in,” as they say.

And at the Microsoft Worldwide Partner Conference, it was driving its partners to the cloud as aggressively as any vendor has ever talked to its partners at such an event. All of the Microsoft executives preached a consistent mantra: “MOVE to the cloud, or you may not be around in five years.”

Microsoft’s cloud-based Business Productivity Online Suite (BPOS) is already being promoted by 16,000 partners that either get referral incentives for Microsoft-billed BPOS fees or bundle it into their own offerings (mainly telcos). There are nearly 5,000 certified Azure-ready partners. This week, Microsoft turned up the heat with these announcements:

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Selling The Cloud

Many cloud computing services in the consumer space are per se for free. Even sophisticated platform-as-a-service (PaaS) environments are coming from most vendors with a free sandbox environment and start charging finally the productive use. The obvious question I hear from many vendors today is how to monetize platforms and applications in the cloud. The situation for established ISVs of business applications can be even worse: The cloud might significantly cannibalize existing license revenue streams. Thus a transformation of existing business models and vendor strategy is anything but easy.

Addressing this challenge, I'd like to point you to a Forrester workshop Selling The Cloud” on 30th September in London.

The workshop will focus on a evaluating your “cloud readiness” and consequently help develop your cloud strategy through the use of a self assessment tool. This is a great opportunity to learn an effective method for improving the business results of any migration to a cloud-based service. You can actually predict which, if any, of your products will be successful in a cloud deployment.

The workshop will be hosted by Stefan Ried, Senior Analyst at Forrester and in case you’re interested, here’s a Web page with an agenda: View Workshop Details.

You can register right on the site or, if you’d like more information, you can contact an Event Sales Representative at +1 888/343-6786 or events@forrester.com

You can also simply leave a comment to this blog, asking any question to the event agenda and value.

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360-Degree Music Experiences: Use The Cloud To Target Device-Use Orbits

We have just published a new report that is an essential read for anyone working on a cloud-based music product strategy: 360-Degree Music Experiences: Use The Cloud To Target Device-Use Orbits.

The title of the report is important and highlights the key focus of the report: that cloud-based music services should not be some technology-driven rush to deliver music across as many devices as possible but should instead focus on extending and connecting the digital music experience into what we are calling 360-Degree Music Experiences.

The idea of cloud-based music has been with us for a long time (some of you many remember the decade-old concept of The Celestial Jukebox).  Now that technology and connectivity have, to some degree at least, caught up, the cloud is drifting across the digital music marketplace once again.  However, numerous hurdles continue to temper the potential:

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Forrester's Cloud Computing Taxonomy

We just published a new report entitled "The Evolution Of Cloud Computing Markets". It recaps many of the cloud computing market observations from the last two years and categorizes the business models in a consistent taxonomy. Basically all current offerings from pure Infrastructure as a Service, in the upper left, via virtualization tools up to SaaS applications can be categorized by this. We explain the key characteristics of each business model and give vendors guidance to position and communicate their cloud service.

Forrester's Cloud Computing Taxonomy

Beyond the preview on this blog, the full document predicts the future market momentum around:

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Informatica's Cloud Service Is Flying Under The Radar Especially For European Customers

Informatica is one of the traditional leaders when it comes to data quality and data integration. More than 4,000 customers trust Informatica's software products globally and drive more than half a billion dollars in revenue. Informatica solves many of the traditional data integration challenges, for example, between custom developed apps and packaged ERP solutions. As a result, IT operations professionals and enterprise architects are well aware of Informatica’s solutions. However, what has gone under the radar so far is Informatica's cloud computing approach. For about two years now, Informatica has provided www.informaticacloud.com, a cloud-based integration offering, for customers. Informatica recently announced a new version of this service, and Forrester had the chance to talk to the vendor prior to the launch. The new solution offers an improved service for data quality, B2B data transformations, and a number of continuous improvements. But what really caught my attention is Informatica's well-kept secret of a sophisticated agent technology.

Back-office managers and European customers have ignored the message — until now

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