The number of pure-play vendors in user account provisioning decreased on April 7, 2008 when Hitachi announced that it acquired M-Tech Information Technology, and changed the name to Hitachi ID. Although Hitachi has been lacking an identity and access management (IAM) pedigree, this move can prove important due to the following reasons: 1) Using IAM for provisioning of physical resources and hardware resources. 2) Extending enterprise role definitions to previously uncharted verticals and cultures. 3) Evangelizing user account provisioning and IAM in Japan and other APAC regions. 4) Hitachi becoming a major player in Japanese SOX (JSOX) implementation.
Needless to say, the above will hinge on Hitachi's ability to retain and grow the existing customer base of M-Tech IT in North America and Europe, and also on Hitachi's ability to compete against EMC's selling of Courion and RSA products. How Hitachi will create an access and adaptive access management (Web and desktop) portfolio to complement its identity management and provisioning portfolio also remains to be seen.
Overarching causes described in the report are not surprising; control failures, an overly aggressive focus on short-term growth, and excessive risk taking are among the high level issues addressed. Also in the report, however, are scores of more detailed explanations of control failures in more than 20 different categories. Specific problems on the list include:
On April 18th, IBM announced its intent to acquire virtual tape library (VTL) and deduplication vendor Diligent Technologies. For IBM, Diligent is a good fit. The company offers both mainframe and open systems virtual tape libraries and they are a pioneer of deduplication. However, IBM already offers a market leading mainframe VTL based on its own intellectual property and an open systems VTL based on FalconStor technology — although the open systems VTL has very limited adoption — so there is also a lot of overlap. Because Diligent is a software solution, IBM can quickly integrate Diligent with any of its storage systems and bring new VTLs to market relatively quickly. It’s very likely that IBM will in fact pursue this route so it can bring an inline deduplicating VTL to market as quickly as possible.
Ever since I was an investment banker at JPMorgan supporting their Software M&A team, I was predicting that the future of products and services in enterprise applications is inseparable. Significant portion of our team M&A advice to product vendors was to beef up their services portfolios and vice versa. These were my thoughts then, that are still very valid today:
CXO engagement. It's much easier to approach a C-level executive during a strategy initiative, which traditionally is the realm of strategic advisory and management consulting firms. The earlier you get your foot in the door with a CXO, the higher are the chances he/she will also consider your products. Hence, ability to influence downstream decisions for procuring products and services decreases in the latter phases of any initiative.
Successful execution. Strong PMO (Project Management Office) capabilities such as methodology, certifications, track record, etc and ultimately successful product/project delivery are key to application vendor success.
Service-oriented architecture (SOA). Large enterprise IT, convinced that no single off-the-shelf solution suite is ever good enough for them, are seriously considering component (services) based architectures, which is causing vendors to move into dynamic (or otherwise known as composite) apps middleware and services to prevent marginalization.
Today Google and Salesforce.com announced another step in their ongoing flirtatious relationship. Salesforce.com will now bundle Google business applications into its on-line CRM offering. Salesforce will also begin to distribute Google applications backed by Salesforce support. It's always interesting when these two make an announcement for two reasons: First, they are both 100% committed to cloud computing and they think about the future of the industry in very similar terms. Second, it is fundamentally interesting to conjecture about the potential of a Salesforce acquisition. Note the rumor mill cranking up on this topic a few weeks ago when Oracle arranged for a $2B line of credit.
Now, Marc Benioff has stated early, often and loudly that Saleforce.com is not an acquisition target and has every intention of becoming the next major software infrastructure vendor. Fair enough. Salesforce.com has done all the right things to do just that. They've invested heavily in an infrastructure and built a reputation that represents a significant barrier to entry to anyone that wants to horn in on their territory. Salesforce.com has a significant history of securely and reliably delivering mission critical enterprise applications in the cloud. Raise your hand if you can make that claim. Not a lot of hands.
On April 10, 2008, IBM announced its intent to acquire FilesX, a small startup that offers server-based replication and continuous data protection technology. The acquisition will become part of the Tivoli Storage Manager (TSM) family of products.
This acquisition will help IBM Tivoli fill a gap in their current portfolio of offerings for data protection. The vendor currently offers Tivoli Storage Manager (TSM), which is one of the leading enterprise-class backup software applications, and Tivoli Continuous Data Protection for Files, a product mostly used to protect PCs. In addition to traditional backup to tape or disk, TSM can also manage Microsoft Virtual Snapshots (VSS) and its own IBM storage-based snapshot technology in support of instant restore or snapshot assisted backup. But the company didn’t really have an offering for customers who wanted something that was better than backup but not as expensive as storage-based replication, this is where FilesX comes in. With FilesX, IBM can now address the recovery requirements of small enterprises that can’t afford storage-based replication. They can also meet the recovery requirements of large enterprises that want to protect more servers within their company with a more affordable replication offering as well as servers at the remote office.
We're doing podcasts at Forrester now, and I'm the internal resource for how to get them done. Here's what we've learned so far:
Post new podcasts on a regular basis. Decide on a schedule — twice a week, every week, every two weeks and stick to it. Listeners look forward to new material on a consistent basis. Consistency helps you gain and maintain an audience.
Name your podcast. Consider a contest to identify a good name. At Forrester we are still working on a name. Any ideas? In the meantime, you can name the podcast after your company like we have — Forrester Podcasts.
Identify upbeat music. Start and end each podcast with three-to-five seconds of music. Use the same music each time to give your podcast an identity, like NPR's All Things Considered. Do you have in-house musicians who might enjoy creating your theme music?
Keep podcasts short. Six-to-twelve minute podcasts are ideal. If the topic takes longer, break it into two or more podcasts and let listeners know this podcast is the first of a two- or three-part series.
Plan a podcast format that fits the topic. Vary the format depending on the topic and the presenter but keep the music and podcast name consistent. Here are some formats we've tried:
Today’s announcement of the promotion of Leo Apotheker to co-CEO of SAP AG signals an orderly transition of command as current CEO Henning Kagermann’s contract expires in May, 2009. Mr. Apotheker has clearly been heir apparent since Shai Agassi’s departure a year ago. Although SAP put a positive spin on his sudden departure, evidently Mr. Agassi was not next in line for the job.
Mr. Apotheker, a 20 year veteran with SAP, has served as head of worldwide sales and most recently as Deputy CEO. While the practice of co-CEOs could be problematic in some environments, SAP has done this before as Dr. Kagermann ascended the throne and succeeded Hasso Plattner, now Chairman of SAP’s Supervisory Board. The transition should be orderly and Apotheker is well-suited for the job.
Additional changes within SAP’s Executive Board were also announced in the same press release. Jim Haggeman Snabe, Bill McDermott and Erwin Gunst were promoted to the Executive Board. Snabe will manage product development for both the SAP Business Suite and Netweaver. McDermott will take over responsibility for worldwide sales. Gunst, the current head of EMEA operations, will become the company’s first Chief Operating Officer. The need for a COO signals the growing complexity of the business in maintaining controls over acquired businesses (e.g., Business Objects) and new products and business models (e.g., Business ByDesign). Snabe and McDermott represent new blood on the Executive Board as well, rising stars that have done well in their respective areas.