I'm Shocked, Shocked That GoPro Missed Its Number

Ted Schadler

GoPro's stock, the gadget darling IPO of 2014, laid off 7% of its workforce and took a big hit in the stock market when it announced it had missed its revenue projection.

All I have to say about that is, "duh."

How big did you think they would get last year? GoPro is now in the very tough early majority phase of adoption, where fewer people in that cohort are interested in the product.

And you can't forecast early majority adoption based on early adopter purchases. Early adopters are a breed apart. They love tech. They take more risks. They try things out and abandon them with ease. Early majority customers are none of those things. And mainstream customers are even less so. 

If you want to play armchair prognosticor about a new technology (Apple Watch, anyone?), start with 15 points and take away points by asking four questions:

  1. If you own a GoPro, when was the last time you used it? If it wasn't in the last month, then take away a point. If it wasn't in the last year, then two points. If you don't own one and don't plan to, then take away three points.
  2. Could you imagine your neighbor using a GoPro? If not, then take away two points.
  3. Could you imagine a lot of people at the airport, truck stop, Starbucks, and Disneyworld using a GoPro? Take a point away for each venue where most people won't.
  4. Would your mother, father, and baby brother or child want to use a GoPro? Take away one point for each that won't.
  5. Could you imagine a lotta lotta people in China or India or Brazil using a GoPro? If not, then take away three points.
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Welcome To The Age Of Innovation - Perspectives On CES 2016

Nigel Fenwick

Presenting and hosting a panel on digital transformation at this year's CES gave me the opportunity to wander the 2 million square feet of exhibit space and assimilate some of the changes coming our way:

Welcome To The Age Of Invention. For me, the most exciting aspect of CES is the sheer volume of innovative, inventive startups that are tapping into the power of sensor-enabled technology to create new products and services. Many of these companies are funded through crowdfunding platforms like Kickstartergofundme and indiegogo. The pace of innovation will accelerate as high-school kids use their fertile imaginations to tap into the technology that’s now second nature to them.

The Internet Of Things Will Fuel Rapid Digital Transformation. Based on the sheer volume of internet connected devices coming on the market this year, we’re going to see an explosion in the Internet Of Things (IoT). Everything – from wearables that track everything from your health and fitness to the temperature of a newborn child, and in-home appliances that interconnect to create a home environment tailored to your preferences – everything is now designed with sensors that collect data that's used to deliver better customer outcomes. Or at least that’s the promise. Sensors can and will improve our lives – giving us more data and insight about our environment and allowing us to tailor experiences to be more finely tuned to our personal desires. The data provided by the sensors in the Internet Of Things is the fuel for further digital transformation.

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How Do You Set Your Company Up For Success With Data Classification?

Heidi Shey

Defining your data via data discovery and classification is the foundation for data security strategy. The idea that you must understand what data you have, where it is, and if it is sensitive data or not is one that makes sense at a conceptual level. The challenge, as usual, is with execution. Too often, data classification is reduced to an academic exercise rather than a practical implementation. The basics aren’t necessarily simple, and the existing tools and capabilities for data classification continue to evolve.* Still, there are several best practices that can help to put you on the road to success:

  • Keep labels simple. At a high level, stick to no more than 3 or 4 levels of classification. This reduces ambiguity about what each classification label means. Lots of classification labels increases confusion and the chance for opportunistic data classification (where users may default to classifying data at a lower level for ease of access and use).
  • Recognize that there are two types of data classification projects: new data and legacy data. This will help to focus the scope of your efforts. Commit to tackling new data first for maximum visibility and impact for your classification initiative. 
  • Identify roles and responsibilities for data classification. Consider data creators, owners, users, auditors (like privacy officers, or a risk and compliance manager), champions (who’s leading the classification initiative?). Data is a living thing and all employees have a role in classification. Classification levels may change over time as data progresses through its lifecycle or as regulatory requirements evolve. 
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The Internet Of Things Will Drive Customer Relationships, And The Industrial Sector Is Realising The Opportunity

Paul Miller

The Internet of Things, or IoT, finds its way into a lot of conversations these days. CES in Las Vegas last week was awash with internet-connected doo-dahs, including cars, fridges, televisions, and more. Moving away from the home and into the world of business, the IoT furore continues unabated. Instead of connecting cars to Netflix or a teen-tracking insurance company, we connect entire fleets of trucks to warehouses, delivery locations, and driver monitoring systems. Instead of connecting the domestic fridge to Carrefour or Tesco or Walmart in order to automatically order another litre of milk, we connect entire banks of chiller units to stock control systems, backup generators, and municipal environmental health officers. And then we connect the really big things; a locomotive, a jet engine, a mountainside covered in wind turbines, a valley bursting with crops, a city teeming with people.

A picture of wind turbines in Scotland
Wind turbines in Ayrshire. (Source: Paul Miller)

The IoT hype is compelling, pervasive, and full of bold promises and eye-watering valuations. And yet, despite talking about connected cars or smarter cities for decades, the all-encompassing vision remains distant. The reality, mostly, is one in which incompatible standards, immature implementations, and patchy network connectivity ensure that each project or procurement delivers an isolated little bubble of partially connected intelligence. Stitching these together, to deliver meaningful views — and control — across all of the supposedly connected systems within a factory, a company, a power network, a city, or a watershed often remains more hope than dependable reality. 

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Benchmark Against Your Biggest Competitor — Yourself!

Diego Lo Giudice

As firms face growing competition for customers, they naturally seek to compare themselves with their peers and competitors, but there is a trap: Leaders don’t compare themselves with competitors anymore. Instead, they compare their current performance with where they need to be as a leader, and that’s what the business expects.

In the past, it was common to benchmark organizational performance against “industry averages,” and being “above average” was considered good. Today, “above average” is no longer good enough; fickle customers demand exceptional experiences. Delivering those experiences requires exceptional performance; anything less means that another company may steal your customers.

When we talk with leading modern application delivery organizations, we find that new benchmarking trends are emerging, making traditional benchmarking less attractive. Why?

  • Benchmarking is for followers, not leaders. Organizations want to be “unicorns,” like the Etsys, Netflixes, Googles, and Salesforces of the world. They don’t want to be losing “horses.”  


  • Most benchmarking approaches target the IT of the past, not BT. Benchmark methodologies and data were created and heavily used when software delivery capability was considered a cost, not a differentiator. In business technology, software is a key differentiator, and BT leaders want to be the best and continuously improve.
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Refinance And Refocus: Verizon, CenturyLink and Windstream Enter 2016 With Leaner Strategies

Sophia Vargas

While mergers and acquisitions have proliferated in the colocation industry - each positioned to increase geographic coverage or higher order capabilities – in the last 6 months, a new trend has emerged: strategic divestitures, most prominently observed in the telecommunications space. Following the complete cycle, in 2010 and 2011, Centurylink, Verizon and Windstream made strategic acquisitions to increase their data center services portfolios, acquiring Savvis, Terremark and Hosting Solutions respectively. 5 years later, each firm has announced its intent to sell of some or all of these assets. 

So, what went wrong?

While telcos had arguably given birth to colocation, the fact remains that network and carrier providers have had troubling competing against pure play colocation and data center service providers like Equinix and Digital Realty. In the past, telecom providers described colocation and data center services as a way to enrich existing customer contracts. In an interesting twist, these new intended divestitures have been presented as a way to refinance core assets, focus on what drives their business, and move away from standardized services with high overhead and lower margins.  While vendors may keep their skeletons in the closet, I had some speculation as to what might be fueling these decisions:

-          Buyers want carrier density and diversity.  Even though all of these facilities support multiple connections into other carriers, customers tend to evaluate facilities by connectivity options instead of looking for carriers to provide data center capacity on top of network services. Additionally, many geographically dispersed companies are considering blended IP solutions to improve latency and performance across the globe.

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Is Security FUD delaying your Public Cloud Adoption?

Robert Stroud

Public Cloud continues to emerge 

Whether it’s the growth of service providers transitioning to offer services, the emergence of Containers within Hyperconverged solutions, or the potential emergence of Google succeeding, the public cloud is set for a year of “hyper-growth”!  That said we have to sort through the FUD (Fear, Uncertainty and Doubt), especially in security, to determine the appropriateness of public cloud for your organization.

 

Is the low hanging cloud fruit eaten?

The rush to cloud to date has clearly been within “systems of innovation,” applications geared mostly to customer engagement (so-called “systems of engagement”).  Enterprises leveraging public cloud are looking to get new innovative applications and services rapidly to market. These applications have been primarily driving customer acquisition and then fostering customer loyalty. These initiatives represent just the tip of the iceberg, the real opportunity is in moving “systems of record”, or everyday work to the public cloud.

One example is GE which is in the process of moving 9,000 apps to the public cloud.  As stated in the GE plan, the criteria is to select target applications based on the understanding of the risk associated.  This posture allows GE to develop their cloud skills based on their learning with “low risk” applications.

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Forrester's Top Trends For Customer Service In 2016

Kate Leggett

It’s a no-brainer that good customer service experiences boost satisfaction, loyalty, and can influence top line revenue. Good service — whether it's to answer a customer's question prior to purchase, or help a customer resolve an issue post-purchase should be easy, effective, and strive to create an emotional bond between the customer and the company. Here are 5 top trends - out of a total of 10 - that I am keeping my eye on. My full report highlighting all trends can be found here:

Trend 1: Companies Will Make Self Service Easier. In 2015, we found that web and mobile self-service interactions exceeded interactions over live-assist channels, which are increasingly used by customers as escalation paths to answer harder questions whose answers they can’t find online. In 2016, customer service organizations will make self-service easier for customers to use by shoring up its foundations and solidifying their knowledge-management strategy. They will start to explore virtual agents and communities to extend the reach of curated content. They will start embedding knowledge into devices — like Xerox does with its printers — or delivering it via wearables to a remote service technician.

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Apple's Real Innovation And Responsibility Is The App Store

Ted Schadler

Apple announced today that it sold $144 million in its App Store on January 1st and more than $20 billion in 2015. Wow. This from a company that launched $0.99 songs in 2001 on iTunes and didn't even consider apps to be useful when it introduced the iPhone in 2007. From public filings, Apple App Store net revenues (the 30% that Apple makes on digital media and app sales plus some other bits and pieces) grew from nothing in 2000 to $19,909 in fiscal year 2015 (see Figure 1). As you can see, growth is slowing down (though from a large base).

Figure 1 Apple's Reported App Store Net Sales. Source: Apple 10-K Filings

This App Store revenue breaks down into:

  • Media, including music, video, and books. Apple launched iTunes (the original App Store) in 2001 with the blessing of the music industry. For the first time, publishers had a paid outlet for digital music. It's only grown from there.
  • Apps. I remember vividly when my neighbor John told me he was coding apps on his nights and weekends (it was a brunch with snow outside in early 2009). That phenomenon -- developers flocking to this new computer opened my eyes to the power of smartphones. Apps and in-store purchases are more than half of App Store revenues.
  • In-app purchases. Apple keeps 30 cents for every dollar spent in an app, too. (It's why Amazon won't let you buy books in the Kindle app -- it doesn't want to give Apple that 30 cents.) 
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Global Tech Market Will Continue To Grow At 4%-5% Rates In 2016 And 2017

Andrew Bartels

Forrester has just published our global tech market report for 2016 and 2017 (see “The Global Tech Market Outlook For 2016 To 2017- The Five Themes That Will Define Tech Spending In The Next Two Years”). For the first time, our January 2016 global forecast includes telecommunication services (voice and data, wireline and wireless), which increases the overall size of the global market for tech purchases by business and government by $625 billion to a total of $2.9 trillion in 2016. However, even the addition of telecomm services cannot pull the global tech market out of the 4%-5% growth track, with growth at 4.5% in 2016 and 4.7% in 2017 when measured in exchange-rate-adjusted US dollars.

The five main themes that define the global tech market over the next two years are:

1.       Moderate overall growth remaining below 5%. The global tech market in constant currency terms will continue to grow modestly throughout 2016 and 2017 at 4.5% and 4.7%, respectively. The strong US dollar will persist in 2016, resulting in lower dollar-denominated growth rates. However, we expect the dollar to lose some steam by 2017, so we project 4.9% growth in US dollar terms.

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