Where BI Falls Short: Taking A Singular Point Of View

There is a reason the phrase, “beauty is in the eye of the beholder,” has held significance and power in our society for so many generations. And in that phrase is a lesson for all of us about business analysis. The power of different points of view examining a given set of inputs is key to truly understanding what lies before us and seeing the new possibilities and different threats looming.

Sit silently in a museum listening to the patrons take in just a single painting and within a day you will hear a hundred different insights, many of which you didn’t see before. Insights that show you things in that artwork you never would have seen, such as the way greens and reds are mixed to create hues that don’t invoke their origins, the style of brushstrokes used that convey depth and how a pattern viewed up close can be very different than the whole. So much insight doesn’t stem from the painting but from the varied experiences, backgrounds, cultures and histories the observers bring with them. The same is true in data analysis. It’s through different points of view that something can be fully analyzed. Each person brings their varied experiences (their data) to the analysis.

As businesses we tend not to sit silently and take in what others see about ourselves and our data. We tend not to expose our data at all to our partners, trusted third parties or potential collaborators (like our customers) and by not doing so, they cannot combine their data with ours and uncover things we cannot see. As a result, we cannot see the broader picture. And this leads to bad business decisions based on a myopic point of view.

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You can learn from the clouds but you can’t compete

If you want to be the best in data center operations you are right to benchmark yourself against the cloud computing leaders – just don’t delude yourself into thinking you can match them.

In our latest research report, Rich Fichera and I updated a 2007 study that looked at what enterprise infrastructure leaders could learn from the best in the cloud and hosting market. We found that while they may have greater buying power, deeper IT R&D and huge security teams, many of their best practices apply to a standard enterprise data center – or at least part of it.

There are several key differences between you and the cloud leaders, many of which are detailed in the table below. Perhaps the starkest however is that for the clouds, they are the product. And that means they get budgetary priority and R&D attention that I&O leaders in the enterprise can only dream about.

Some key differences between Clouds, hosters and you

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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The Cost of PRISM Will Be Larger Than ITIF Projects

Earlier this month The Information Technology & Innovation Foundation (ITIF) published a prediction that the U.S. cloud computing industry stands to lose up to $35 billion by 2016 thanks to the National Security Agency (NSA) PRISM project, leaked to the media in June. We think this estimate is too low and could be as high as $180 billion or a 25% hit to overall IT service provider revenues in that same timeframe. That is, if you believe the assumption that government spying is more a concern than the business benefits of going cloud.

Having read through the thoughtful analysis by Daniel Castro at ITIF, we commend him and this think tank on their reasoning and cost estimates. However the analysis really limited the impact to the actions of non-US corporations. The high-end figure, assumes US-based cloud computing providers would lose 20% of the potential revenues available from the foreign market. However we believe there are two additional impacts that would further be felt from this revelation:

1. US customers would also bypass US cloud providers for their international and overseas business - costing these cloud providers up to 20% of this business as well.

2. Non-US cloud providers will lose as much as 20% of their available overseas and domestic opportunities due to other governments taking similar actions.

Let's examine these two cases in a bit more detail.

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Are Cloud Developers Really That Different? Yes.

To an IT leader a cloud developer can easily look like the enemy. They don't do what you say, they cause havoc by circumventing your IT rules and building new services and capabilities on public cloud platforms and seem to take orders not from you but from the business unit. Are these perceptions reality? Well, according to the 2013 Forrester ForrSights Developer Survey, yes. But they are also some of your most productive, happy and loyal developers too.

The survey shows that less than a quarter of all enterprise developers are using cloud platforms today. Examining the first movers, as self-identified in this survey, we found significant differences in the behavior, attitude and reporting structure of these members of your IT team. Cloud developers are risk takers who are empowered, more comfortable with open source technologies, building the new systems of engagement and tend to be happier in their work. They aren't just experimenting either; they are putting applications into production on the public cloud platforms and are doing so with traditional programming languages via agile, modern application designs. Forrester clients can now download a toolkit report providing a snapshot view of the data from this compelling survey (in Microsoft PowerPoint and PDF formats) that shows what distinguishes these developers from the pack.

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Vendors: Read On To Understand Your Partners' Issues With Cloud

 

Peter O'Neill here with some observations about cloud computing and channel partners. While cloud computing has been a boon for the tech industry in general, for channel partners the story is different. Channel partners have to deal with shrinking product margins, skills shortages, and new competitor types (including tech vendors themselves!). 

And the funny thing is: many vendors still haven’t internalized what predicament their partners are in. How else can you explain Microsoft executives berating their partners that “only 2% of you are in the cloud business” at their recent Worldwide Partner Conference – and then adding insult to injury by suggesting calmly that the partners could host future customer visits in Microsoft Stores, where they can see those MS cloud products (I count the Surface tablet in that list) they cannot even sell!

Forrester Principal Analyst Tim Harmon and myself are discussing these issues almost every day with technology vendors; in fact with B2B vendors in general, because cloud computing is affecting every sector now (including insurance, health care, etc.). Channel partners are changing their business model stripes — in myriad directions, and oftentimes as ungrounded "experiments."

In our new Forrester report, “The Shape-Shifting Tech Industry Channel Ecosystem”, we write about how the successful channel partners of the future will be those that operate under a hybrid business model umbrella, combining on-premises and cloud delivery, and IT and business value.

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