Cisco released its 1st quarter financial statement last week, and the numbers weren’t pretty. But this shouldn’t surprise too many, since the company warned the financial community that the revenue growth was going to be below their expectations. Unlike most, I see this as more of an inflection point in an undulation that swings back into a growth mode that comes with a change in strategy than a parabolic upside-down curve. While there are multiple transformations starting to occur in the networking domain, the Cisco Doomsday-ers seem to solely focus on software-defined networking and the creation of cloud infrastructures; they assume the data center of the future will look like Google’s data centers, even though no one truly, outside of Google, knows how it really runs or what the components are.
For argument’s sake, let’s assume every data center (private or XaaS platforms) will be a Google data center full of white-box components and Cisco’s high margin/feature switches will disappear. Does this mean Cisco becomes irrelevant or loses its position as the 800 lb. gorilla in the networking industry? Heck no. What clearly is being missed by most of the world is the incredible transformation starting to materialize outside the data center. And no, it isn’t the presence of mobile devices. That is today’s transformation that changed the consumer. The business will catch up. Tomorrow’s emergence of Internet of Things (IoT) will enable the business to meet its consumers’ desirers, and Cisco sees it already. Cisco could lose every port in the data centers and still be ahead if you look at where the amount of port growth and network revenue will come over the next 10 years.
At Mobile World Congress this week, Nokia announced the first three models of its new Android product line, Nokia X. Nokia X is positioned as entry-level smartphones below the Lumia range that nonetheless deliver a more complete smartphone experience with Android application availability than the Asha range. With both 4-inch and 5-inch screen models, the Nokia Store and Microsoft services will also be available on these devices; Bing Search, Outlook, OneDrive, and Skype will come preloaded. Although I am disappointed with the super-old Qualcomm MSM8225 chipset used, it brings high-quality Nokia products to the Android world at only €89 to €109 before tax and operator subsidies.
It was not surprising that Nokia started trialing Android models before the Microsoft deal. However, it is interesting to see that Nokia is now not only launching it just to prove to the public that it has tried to do so, but also that it wants to make it a serious strategy. What does this mean when we are expecting the Microsoft acquisition to complete in just merely a month? And why did Microsoft approve it? Some possible reasons why:
Microsoft can’t yet deliver a good Windows Phone experience at the low price points they want to hit. Now it can — by using Android and old, low-cost chipsets.
Chinese media outlets recently published a speech given by Huawei CEO Ren Zhengfei in which he addressed Huawei’s enterprise business. This speech was not only represents the first public enterprise business overview since Huawei entered the market three years ago, but it also details the firm’s enterprise business development strategy for 2014.
First note that Huawei recorded US$2.5 billion in enterprise revenue in 2013, representing year-on-year growth of 33% — which did not meet the company’s expectations. Mr. Ren’s speech shows how Huawei is further fine-tuning its enterprise strategy and what that means for end users. He said that Huawei:
Has an enterprise solution to support your big data strategy. Organizations need to translate huge amounts of data into business outcomes. While Huawei’s big data hardware solution didn’t address business requirements by industry and region, it plans to build complete big data solutions using FusionCube, its converged infrastructure product.
Will centralize its resources in key products and regions. This is a good strategy for Huawei’s enterprise business, which focuses mainly on Asia Pacific and Europe. By concentrating on key countries like China, Japan, and India, Huawei can improve its local service capabilities, including maintenance, tech support, and ecosystem development, via ISVs and SIs.
Improving the customer experience is the path to achieving business results. In these challenging times, there’s nothing more critical for marketing and strategy professionals to pursue than the customer experience. At our Summit in Shanghai next month, we’re eager to discuss the theme of “Driving Digital Customer Experiences In A Slowing Chinese Economy”..I’m proud to announce the illustrious list of speakers we have pulled together for this year’s summit:
Kicking off the agenda for the day, Harley Manning will speak on customer experience innovation and sizing disciplines that companies need to consider Harley is the co-author of Outside In, Forrester’s book about the customer experience that draws upon 14 years of research. At the summit, Harley will also officially launch the Chinese version of Outside In in conjunction with our publishing partner CITIC Press, a leading business and financial publishing house in China.
China is forecast to become the largest eCommerce market in the world. Zia Daniell Wigder, Vice President and Research Director at Forrester, will address China’s market potential and speak about “Creating Customer-Centric eBusiness Experiences.” Her session will explore opportunities to build successful sales and service ecosystems in China, including what the age of the customer means for Chinese eBusiness customers, and explain how digital tactics are essential to creating customer-centric eBusiness experiences.
While the basic technology behind 3D printing has been around for decades, recent hype and coverage has recast a spotlight on the industry. Over the last few years, incumbent and emerging vendors have been rapidly developing 3D printers, each more productive than the last, with an ever expanding variety of printable materials and possible use cases.
Outside of consumer hobbyists, 3D printing will have the greatest impact on businesses that design and manufacture discrete products, introducing rapid prototyping to speed up development cycles and an alternative production method for customized finished objects.
What does this mean for CIOs and technology management departments?
As the resident technology expert, you may be called upon to evaluate the hardware and feasibility of 3D printing for your business. Beyond assessment, businesses may demand:
Technology support and management. If your business decides to incorporate 3D printers, as a new networked device, support could entail adapting and integrating the 3D printing ecosystem into current product lifecycle management platforms and processes, not to mention troubleshooting hardware and software issues.
Ten years ago, if I had stood up in front of IT professionals and said that their company would allow employees to bring their own devices to work in lieu of corporate-owned devices, I would have been heckled out of the room, but look at where we are today. Well, I am here to say that it won’t stop at personal devices or applications. The user edge of the network (where users and mobile devices connect, not servers or storage) is slowly shifting under the control of business and is an integral part of the ecosystem that shapes a customer’s experience. Already, non-IT employees are doing traditional networking tasks like:
Granting wireless network access. Controlling who gets on the network had always been an IT function, until wireless came out. Assistants, business greeters, and other employees can give guests Internet access with all the wireless solutions on the market today.
Setting up networks. Today, manufacturing engineers design manufacturing lines and deploy automation equipment with built-in Ethernet/IP capabilities, such as motion sensors, energy monitors, and logic boards. The design and management of that part of the network falls under their domain.
It’s been a long wait, about four years if memory serves me well, since Intel introduced the Xeon E7, a high-end server CPU targeted at the highest performance per-socket x86, from high-end two socket servers to 8-socket servers with tons of memory and lots of I/O. In the ensuing four years (an eternity in a world where annual product cycles are considered the norm), subsequent generations of lesser Xeons, most recently culminating in the latest generation 22 nm Xeon E5 V2 Ivy Bridge server CPUs, have somewhat diluted the value proposition of the original E7.
So what is the poor high-end server user with really demanding single-image workloads to do? The answer was to wait for the Xeon E7 V2, and at first glance, it appears that the wait was worth it. High-end CPUs take longer to develop than lower-end products, and in my opinion Intel made the right decision to skip the previous generation 22nm Sandy Bridge architecture and go to Ivy Bridge, it’s architectural successor in the Intel “Tick-Tock” cycle of new process, then new architecture.
What was announced?
The announcement was the formal unveiling of the Xeon E7 V2 CPU, available in multiple performance bins with anywhere from 8 to 15 cores per socket. Critical specifications include:
Up to 15 cores per socket
24 DIMM slots, allowing up to 1.5 TB of memory with 64 GB DIMMs
Approximately 4X I/O bandwidth improvement
New RAS features, including low-level memory controller modes optimized for either high-availability or performance mode (BIOS option), enhanced error recovery and soft-error reporting
It’s time for vendors to step up and build the perfect smartwatch. It’s not really about the device at all, but the ecosystem around the device. Infrastructure & operations professionals have an opportunity here: to work with their business partners and vendors to construct next generation experiences around smartwatches.
For example, retail marketers, always on the hunt for the perfect in-store experiences, and are increasingly turning to mobile technologies to create customized interactions. By opting in to a relationship with a store, a patron can be recognized by name by a sales associate, see the images on digital displays change as she walks by them (tailored to her), receive in-store targeted promotions as she picks up particular products, and even leave the store without handing over any overt form of payment. All of these things are possible with today's technologies.
Scenarios like this one are inherently mobile, but smartphones aren't actually the best vehicle for these experiences. Smartphones can be easily stolen, for one thing, making the retail scenario challenging. And retailers don't want the eyes of patrons who walk into their stores glued to a smartphone; they want those eyes looking around the store.
Smartwatches, on the other hand, can be the perfect enabler of scenarios like this one (and like others in healthcare and other verticals), so long as they have all the necessary components. There are in fact eight strategic pillars for smartwatches:
Readers of this blog and of my syndicated reports know that I’ve spent a great deal of time lately researching and analyzing the market for wearable devices and the emerging wearables ecosystem. I’m excited to announce that I’ll be co-presenting a talk at SXSWwith Jen Quinlan (Twitter: @QuirkyInsider) about a specific sub-segment of the wearables market – how wearable devices, in concert with the Internet of Things, can help people overcome various sorts of disabilities.
Jen conceived of this talk, and was kind enough to invite me to collaborate with her. And I was thrilled, particularly when I heard about the topic she had proposed. Why? I’m interested – and hope you will be too – because:
Organizations in Asia Pacific (AP) have become cognizant of the fact that they have entered the age of the customer — an era in which they must systematically understand and serve increasingly powerful customers. In the past two years, most AP firms have primarily focused on using mobile apps to connect their organizations with internal employees. However, in the age of the customer, this trend will reverse. Results from Forrester’s Forrsights Budgets and Priorities Survey, Q4 2013 show that 44% of AP technology decision-makers will prioritize building a mobile strategy for customers or partners, while only 39% will prioritize it for employees. Firms in Australia, Indonesia, India, and China will lead the region.
In order to compete and win in the age of the customer, organizations cannot be simply “customer-centric” anymore — they must become “customer-obsessed.” To do so, firms must embrace the mobile mindshift and build mobile systems of engagement. This can be done by leveraging social, cloud, and predictive analytics to deliver context-rich mobile applications and smart products that help users decide and act immediately in their moments of need. Such systems will focus on people and their immediate needs in context rather than processes, as is the case with traditional systems of record.
Building mobile systems of engagements is even more critical for firms in AP, because: