You Must Go Further To Get Private Cloud Right . . . But How Much Further?

 Lately it's starting to seem like private clouds are a lot like beauty – in the eye of the beholder. Or more accurately, in the eye of the builder. Sadly, unlike art and beauty, the value that comes from your private cloud isn’t as fluid, and the closer you get in your design to a public cloud, the greater the value. While it may be tempting to paint your VMware environment as a cloud or to automate a few tasks such as provisioning and then declare “cloud,”organizations that fall short of achieving true cloud value may find their investments miss the mark. But how do you get your private cloud right?

For the most part, enterprises understand that virtualization and automation are key components of a private cloud, but at what point does a virtualized environment become a private cloud? What can a private cloud offer that a virtualized environment can’t? How do you sell this idea internally? And how do you deliver a true private cloud in 2011?

In London, this March, I am facilitating a meeting of the Forrester Leadership Board Infrastructure & Operations Council, where we will tackle these very questions. If you are considering building a private cloud, there are changes you will need to make in your organization to get it right and our I&O council meeting will give you the opportunity to discuss this with other I&O leaders facing the same challenge.

Read more

Cloud Computing Disrupts Business Models: Fujitsu Reacts With A PaaS Strategy For ISVs

Forrester’s Forrsights Software Survey, Q4 2010 has quantified for the first time how enterprise demand is shifting from traditional licensing models to subscriptions and other licensing models, such as financing and license leasing. However, the shift to subscriptions for business-applications-as-a-service is the major driver of this change. Traditional enterprise licenses are slowly decreasing, and Forrester predicts that subscriptions for SaaS applications will drive alternative license spending up to 29% — as early as 2011. This demand-side change goes beyond front-office applications like CRM. In 2011 and 2012, enterprises will opt for “as-a-service” subscriptions for more back-office applications, such as ERP, instead of licensed and on-premise installations. Detailed data cuts by company size and region are available to clients from our Forrsights service.

Base: 622 (2007), 1,026 (2008), 537 (2009), and 930 (2010) software decision-makers predicting license spending for the coming year
Source: Enterprise And SMB Software Survey, North America And Europe, Q3 2007; Enterprise And SMB Software Survey, North America And Europe, Q4 2008; Enterprise And SMB Software Survey, North America And Europe, Q4 2009; Forrsights Software Survey, Q4 2010

 

 

 

What does this means for existing independent software vendors (ISVs) and infrastructure vendors?

Read more

Citrix Acquires EMS-Cortex

Another year and Citrix’s acquisition strategy of interesting companies continues as they have announced the purchase of EMS-Cortex. This acquisition has caught my eye because EMS-Cortex provides a web-based “cloud control panel” that can be used by service providers and end users to manage the provisioning and delegation administration of hosted business applications in a cloud environment such as XenApp, Microsoft Exchange, BlackBerry Enterprise Server, and a number of other critical business applications. In theory this means that customers and vendors will be able to “spin up” core business services quickly in a multi tenant environment.  

It is an interesting acquisition, as vendors are starting to address the fact that for “cloudonomics” to be achieved by their customers it is important that they ease the route to cloud adoption. While this acquisition is potentially a good move for Citrix I think it will be interesting for I&O professionals to see how they plan to integrate this ease of deployment with existing business service management processes, especially if the EMS-Cortex solution is going to be used in a live production environment.

Read more

Don’t Think You Need to Know Your Organization’s Biz Requirements? Think Again.

This past month or so, I’ve been working with a number of Forrester clients who are either coming up on end of life storage hardware or are adding more capacity to their existing environment. In either case, the question always starts with “Who should we be using?” This situation comes up frequently, and I felt the need to point out some changes happening in organizations’ IT environments, and why this should be one of the last questions to ask.

  • Virtualization continues to move forward in most organizations. Although most environments are only 30% to 40% virtualized, there is an aggressive initiative to virtualize as much as possible. In Forrester surveys, virtualization was one of the top three initiatives for 2010, and I have no doubt it will be for 2011 as well. This means there is a great deal of responsibility (and budget) on the virtualization administrator to make this happen.
  • Teams are being assembled to think and design for a private cloud. This is no longer an abstract initiative but is actually happening, and rollouts may vary from one organization to another, but the reality is that business growth initiatives are forcing IT to evolve their overall environments to support these initiatives. And if they’re not, there’s a problem.
  • Businesses are moving at lightning speed. Today, the competitive landscape for any industry is aggressive. Organizations are looking to up their game, creating new growth initiatives, and leveraging technology platforms to do this. There are so many resources at their fingertips (public cloud services from AWS, etc.), that they can essentially bypass an IT department, and if savvy enough, use external resources for their needs. The bottom line is, if IT can’t do it fast enough, then IT becomes less relevant to the business. 
Read more

In SaaS, Product Management Is Essential, Not Optional

A while back, I had a spirited exchange with someone who took a rather extreme position about the role of product management in software as a service companies. The less polite version: He staked out a silly position – just poll your customers about what to build, and eliminate the PM role altogether – so I felt obliged to refute it. With two additional years of research into SaaS and PM, it's worth returning to that contretemps for a moment.

Then, I argued that PM was necessary in SaaS ventures.

Now, it's clear that PM is not merely necessary but essential.

Product Managers Are Really Innovation Managers
If the sole responsibility of PM were requirements, as my foil assumed, a poll might replace a person, but only if you had no interest in the long-term success of your company. Polls are extremely useful tools, and it's far better to use them than not to. However, polls have their limitations: most obviously, as a tool for taking the temperature of the customers you have, they tell you absolutely nothing about the customers you don't have yet.

This week, I've already written a little about the need to go beyond polls to use other tools, such as serious games. In an upcoming post, I'll have more to say on the topic. For now, I'll just say that, in both business and politics, voting alone is not the ticket to ultimate success.

Read more

SAP 2010 - Predictions Review Of A Turnaround Year

SAP Has Managed A Turnaround After Léo Apotheker’s Departure

In February 2010, after Léo Apotheker resigned as CEO of SAP, I wrote a blog post with 10 predictions for the company for the remaining year. Although the new leadership mentioned again and again that this step would not have any influence on the company’s strategy, it was clear that further changes would follow, as it doesn’t make any sense to simply replace the CEO and leave everything else as is when problems were obviously growing bigger for the company.

I predicted that the SAP leadership change was just the starting point, the visible tip of an iceberg, with further changes to come. Today, one year later, I want to review these predictions and shed some light on 2010, which has become the “Turnaround Year For SAP.”

The 10 SAP Predictions For 2010 And Their Results (7 proved true / 3 proved wrong)

1. More SAP Board Changes Will Come — TRUE

Read more