Forrester is in the middle of a major research effort on various Big Data-related topics. As part of this research, we’ll be kicking off a client survey shortly. I’d like to solicit everyone’s input on the survey questions and answer options. Here’s the first draft. What am I missing?
Scope. What is the scope of your Big Data initiative?
Status. What is the status of your Big Data initiative?
Industry. Are the questions you are trying to address with your Big Data initiative general or industry-specific?
Domains. What enterprise areas does your Big Data initiative address?
Why BigData? What are the main business requirements or inadequacies of earlier-generation BI/DW/ET technologies, applications, and architecture that are causing you to consider or implement Big Data?
Velocity of change and scope/requirements unpredictability
Analysis-driven requirements (Big Data) vs. requirements-driven analysis (traditional BI/DW)
Cost. Big Data solutions are less expensive than traditional ETL/DW/BI solutions
“Big Data” is coming up more often on the agendas of key vendors as well as some of the more-advanced users of information management technology. Although some of this increased activity reflects PR calendars – companies promote new offerings in the Spring – there’s more than that going on. The range of design patterns that fall under this large umbrella are genuinely on the increase in a wider range of usage scenarios, driving continuing innovation from both technology providers and users. In part because of the frequent use of open source technology such as Apache Hadoop to implement “Big Data,” this is the type of innovation the industry most needs at this early stage of the market. A few key data points:
Cloud computing continues to be hyped. By now, almost every ICT hardware, software, and services company has some form of cloud strategy — even if it’s just a cloud label on a traditional hosting offering — to ride this wave. This misleading vendor “cloud washing” and the complex diversity of the cloud market in general make cloud one of the most popular and yet most misunderstood topics today (for a comprehensive taxonomy of the cloud computing market, see this Forrester blog post).
Software-as-a-service (SaaS) is the largest and most strongly growing cloud computing market; its total market size in 2011 is $21.2 billion, and this will explode to $78.4 billion by the end of 2015, according to our recently published sizing of the cloud market. But SaaS consists of many different submarkets: Historically, customer relationship management (CRM), human capital management (HCM) — in the form of “lightweight” modules like talent management rather than payroll — eProcurement, and collaboration software have the highest SaaS adoption rates, but highly integrated software applications that process the most sensitive business data, such as enterprise resource planning (ERP), are the lantern-bearers of SaaS adoption today.
NetSuite was kind enough to invite me to the analyst day at its SuiteWorld 2011 user conference — an event packed with product, strategy, customer, and partner information. The focus was clearly on its platform and ERP solutions. Here are my thoughts and takeaways:
NetSuite wants to ride the SaaS wave into the enterprise. NetSuite is the only SaaS-based ERP suite of scale. It reports that its data centers get 2.2 million unique logins and 4 billion customer requests a month. However, NetSuite wants to do better. It wants to take its well-tested and well-adopted solution in the midmarket and extend into the enterprise. The timing is right, as Forrester reports that enterprises are ready to consider SaaS-based ERP solutions. In fact, NetSuite reports that sales to enterprise customers increased 37% between 2009 and 2010.
NetSuite has a solution package targeted at the enterprise. NetSuite announced a new “Unlimited” package for about $1 million, which includes all modules, unlimited storage, applications, SuiteCloud customizations, subsidiaries, and unlimited users. The exact pricing is based on functionality and number of users (which starts at 500), and scales up from there. It is a package targeted to compete with traditional on-premise ERP vendors as well as SAP’s on-demand solution, Business ByDesign.
With Microsoft's plan to acquire Skype for $8.5 billion, Steve Ballmer is doing a Jason Voorhees in Crystal Lake. Let me explain. Microsoft failed miserably at mobile. While the boys and girls in Redmond were contemplating how to put the "Start" menu on a phone, Steve Jobs was cleaning mobile clocks with the iPhone. But, like all great competitors, Microsoft knew they lost it. So they started from scratch. The result: Windows Phone 7. In my opinion, an awesome mobile platform on a par with iPhone, albeit with a lot less cultural cachet. The problem: The momentum favors iPhone and Android. Microsoft needs an ace card. Ballmer, potentially, found an ace card in Skype.
With 633 Million Users, Skype Is A Communication Juggernaut
Skype is not a phone. It's a way to see your three-year-old granddaughter, connect with your adult children, or make sure your family is safe 4,000 miles away. And, it's mostly free. Of the 633 million users, fewer than 8 million are paying users. No matter. What is important is that many of these users would love to make free calls on a mobile phone.
Monday was yet another announcement-filled day in what seems to be the year that mobile takes center stage for application developers. While the U.S. Congress was grilling Apple and Google executives about their privacy practices, Microsoft was buying Skype, and Google was making a slew of announcements including information about Ice Cream Sandwich, the next version of Android. Mobile strategy is high on everyone’s list: It’s a refrain I hear every week in the client inquires I take. The shift to mobile is big — as big as anything I’ve seen since the early days of client-server. If the arrival rate of my inquires is any indication, it’s bigger than the move to implement SOA and it’s faster than the embrace of open source software. It’s ironic that both have a part to play in incorporating mobile apps into enterprise infrastructure. In some ways, they are key contributors to the perfect storm we’re in now.
But as big as mobile seems now, I’m not sure that IT professionals are thinking big enough. I’ll be moderating a keynote panel at IT Forum with some of Forrester’s best thinkers in the mobile space, and as I’ve been reviewing some of their slides I find that they’re expanding my vision of just how profound the changes we're going through are going to be. These are some of the issues we’ll be discussing:
Last year, colleague Mary Gerush and I wrote overviews of the requirements tools market, noting how it was segmenting to address different problems. (Click here and here for the two studies.) Application lifecycle management (ALM) tools may be undergoing the same evolution, forcing us to accept either a much larger definition of ALM, or several specializations within ALM.
In the requirements market, new tools, or new emphases among tools, were a sure sign that some kind of change was afoot. Several years ago, visualization tools were not only absent from the list of requirements tool capabilities, they were almost completely unknown. Now, any list of requirements capabilities that omits visualization would be incomplete. Several years ago, requirements management was the emphasis of these tools. Now, much of the interesting innovation is happening in requirements collection.
Do you keep every single light on in your house even though you are fast asleep in your bedroom?
Of course you don't. That would be an abject waste. Then why do most firms deploy peak capacity infrastructure resources that run around the clock even though their applications have distinct usage patterns? Sometimes the applications are sleeping (low usage). At other times, they are huffing and puffing under the stampede of glorious customers. The answer is because they have no choice. Application developers and infrastructure operations pros collaborate (call it DevOps if you want) to determine the infrastucture that will be needed to meet peak demand.
One server, two server, three server, four.
The business is happy when the web traffic pedal is to the floor.
During my research for the just-published document "For Developers, Dog Food And Champagne Can't Be The Only Items On The Menu," I had an interesting conversation with the team at Adobe that handles internal pilots, which in their case entails more than just putting the next version of an Adobe product on the network for people to try. Instead of the typical "spaghetti against the wall" approach to "eating your own dog food" (to mix food metaphors), the Adobe team actively looks for use cases that fit the product. If a product like Flex or Photoshop is a tool, then it should be the right tool for some job. (And if you can't find any use for the software, you're definitely in trouble.)
This approach might require additional work above the "spaghetti against the wall" approach, but it definitely has dividends for many different groups. The product team identifies functionality gaps or usability flaws. Marketers and salespeople have a much easier time figuring out what to demo. As a result, Adobe runs a better chance of both building technology that's compelling, and then explaining what's compelling about it to potential customers.