As always each year, Huawei hosted its analyst event in April, with hordes of analysts descending on Shenzhen. Here are a few observations from the event:
In 2015, Huawei’s revenues grew by 37% to €61 billion and its EBIT grew by 34% to €7 billion, keeping the operating margin stable at just under 12%. Huawei’s strategy paid off across all of its divisions in 2015. Huawei’s Carrier Business pushed deeper into carrier transformation support and grew by 21% in 2015. Its Consumer Business operations entered the mainstream: The division grew by 73% in 2015, with Huawei gaining the No. 3 spot in the global smartphone league table. Huawei’s Enterprise Business is gaining traction and grew by 44% in 2015.
There are four distinctive aspects that go some way to explaining why Huawei keeps on outgrowing its peer group. First, Huawei’s heart beats in its R&D division, and most of Huawei’s top managers have come through the ranks of the R&D team. Second, Huawei benefits from strong internal collaboration and flexibility. Compared with other vendors, Huawei seems a lot less process-driven. Instead, Huawei seems to tolerate, even encourage, self-organization among employees — despite strict management hierarchies. Third, Huawei has a flexible and unconventional approach to customer experience. Huawei completes projects that overrun without overanalyzing whose fault it is. Fourth, Huawei is not listed and therefore not answerable to external shareholders. This gives it the freedom to experiment and take a long-term view.
Major conferences are often the occasion for key vendor announcements, and SAP didn’t disappoint. At the 2016 SAP Insider event on BI/Hana in Las Vegas, SAP announced the acquisition of independent mobile BI specialist Roambi’s solution portfolio and key assets. With this acquisition, SAP underlines its commitment not only to mobile and cloud but also to getting the right data into the hands of the right people at the right time. With this acquisition, SAP underlines its commitment not only to mobile and cloud but also to getting the right data into the hands of the right people at the right time. The Roambi acquisition adds the following to SAP’s mobile BI portfolio:
An attractive set of prebuilt visualizations for fast creation of mobile dashboards.
A cloud-based back end that can connect to a variety of data and BI sources.
The capability to create data-rich, interactive, eBook-like publications.
There are both tactical and strategic aspects to SAP’s acquisition of Roambi, which:
Adds attractive capabilities to SAP’s mobile BI portfolio, even for customers who may already be using BusinessObjects Mobile.
Provides an instant cloud option for mobile BI to customers running on-premises BI environments, but who can’t, or don’t want to, support a mobile BI solution.
Can be leveraged as an important building block for the mobile capabilities of SAP Cloud for Analytics.
Brings more than software to the SAP stable. In one fell swoop, SAP gains a team of professionals who’ve been living and breathing mobile BI for a long time.
A CMO and a CIO walk into a hotel bar (Let’s call them Tom and Dick). After ordering a drink, Tom says, “Dick, I really need to start working with a DMP this year, and I want your help selecting one.” Dick says, “A DMP? My enterprise architecture team is building a near real-time, self-service data management platform. We’ll be done by the end of the year. You’re going to love it in 2017!” With an absent look on his face, Tom says “A DMP is a piece of AdTech that we can use to quickly target tailored audiences with our ad campaigns. It’s not a back-office data warehouse”. Dick laughs and says, “Ad campaigns? Didn’t you just buy a campaign management tool from one of those so-called marketing cloud vendors? You know, our CRM system has a campaign module, not to mention an enormous customer database.” Tom’s response: “You’re not getting it. Cross-Channel Campaign Management is a MarTech tool, not CRM. And a DMP is not a customer database.” Exasperated, Dick shouts, “What the hell is the difference between MarTech and AdTech anyway!”
For many years, infrastructure and operations (I&O) professionals have been dedicated to delivering services at lower costs and ever greater efficiency, but the business technology (BT) agenda requires innovation that delivers top-line growth.
The evolution and success of digital business models is leading I&O organizations to disrupt their traditional infrastructure models to pursue cloud strategies and new infrastructure architectures and mindsets that closely resemble cloud models.
Such a cloud-first strategy supports the business agenda for agility, rapid innovation, and delivery of solutions. This drives customer acquisition and retention and extends the focus beyond ad hoc projects to their complete technology stack. The transition to cloud-first mandates a transition for infrastructure delivery, management, and maintenance to support its delivery and consumption as a reusable software component. Such infrastructure can be virtual or physical and consumed as required, without lengthy build and deployment cycles.
Growing cloud maturity, the move of systems of record to the cloud (see my blog “Driving Systems of Records to the Cloud, your focus for 2016!)container growth, extensive automation, and availability of "infrastructure as code" change the roles within I&O, as far less traditional administration is needed. I&O must transition from investing in traditional administration to the design, selection, and management of the tooling it needs for composable infrastructure.
In 2014 I wrote about Microsoft and Dell’s joint Cloud Platform System offering, Microsoft’s initial foray into an “Azure-Like” experience in the enterprise data center. While not a complete or totally transparent Azure experience, it was a definite stake in the ground around Microsoft’s intentions to provide enterprise Azure with hybrid on-premise and public cloud (Azure) interoperability.
I got it wrong about other partners – as far as I know, Dell is the only hardware partner to offer Microsoft CPS – but it looks like my idiot-proof guess that CPS was a stepping stone toward a true on premise Azure was correct, with Microsoft today announcing its technology preview of Azure Stack, the first iteration of a true enterprise Azure offering with hybrid on-prem and public cloud interoperability.
Azure Stack is in some ways a parallel offering to the existing Windows Server/Systems Center and Azure Pack offering, and I believe it represents Microsoft’s long-term vision for enterprise IT, although Microsoft will do nothing to compromise the millions of legacy environments who want to incremental enhance their Windows environment. But for those looking to embrace a more complete cloud experience, Azure Stack is just what the doctor ordered – an Azure environment that can run in the enterprise that has seamless access to the immense Azure public cloud environment.
On the partner front, this time Microsoft will be introducing this as a pure software that can run on one or more standard x86 servers, no special integration required, although I’m sure there will be many bundled offerings of Azure Stack and integration services from partners.
I’ve written and commented in the past about the inevitability of a new class of infrastructure called “composable”, i.e. integrated server, storage and network infrastructure that allowed its users to “compose”, that is to say configure, a physical server out of a collection of pooled server nodes, storage devices and shared network connections.[i]
The early exemplars of this class were pioneering efforts from Egenera and blade systems from Cisco, HP, IBM and others, which allowed some level of abstraction (a necessary precursor to composablity) of server UIDs including network addresses and storage bindings, and introduced the notion of templates for server configuration. More recently the Dell FX and the Cisco UCS M-Series servers introduced the notion of composing of servers from pools of resources within the bounds of a single chassis.[ii] While innovative, they were early efforts, and lacked a number of software and hardware features that were required for deployment against a wide spectrum of enterprise workloads.
This morning, HPE put a major marker down in the realm of composable infrastructure with the announcement of Synergy, its new composable infrastructure system. HPE Synergy represents a major step-function in capabilities for core enterprise infrastructure as it delivers cloud-like semantics to core physical infrastructure. Among its key capabilities:
The acquisition of EMC by Dell has is generating an immense amount of hype and prose, much of it looking forward at how the merged entity will try and compete in cloud, integrate and rationalize its new product line, and how Dell will pay for it (see Forrester report “Quick Take: Dell Buys EMC, Creating a New Legacy Vendor”). Interestingly not a lot has been written about the changes in the fundamental competitive faceoff between Dell and HP, both newly transformed by divestiture and by acquisition.
Yesterday the competition was straightforward and relatively easy to characterize. HP is the dominant enterprise server vendor, Dell a strong challenger, both with PCs and both with some storage IP that was good but in no sense dominant. Both have competent data center practices and embryonic cloud strategies which were still works in process. Post transformation we have a totally different picture with two very transformed companies:
A slimmer HP. HP is smaller (although $50B is not in any sense a small company), and bereft of its historical profit engine, the margins on its printer supplies. Free to focus on its core mandate of enterprise systems, software and services, HP Enterprise is positioning itself as a giant startup, focused and agile. Color me slightly skeptical but willing to believe that it can’t be any less agile than its precursor at twice the size. Certainly along with the margin contribution they lose the option to fight about budget allocations between enterprise and print/PC priorities.
I believe that network-as-a-service-type offerings — where customers can control the provisioning and characteristics of their network transport services — will have a long-term impact on those enterprises undertaking digital transformation. Businesses that fail to recognize the significance of quality network infrastructure will undermine their digital business strategy. Secure, stable network connectivity is a prerequisite for using cloud, mobile, big data, and Internet-of-Things (IoT) solutions. As the business technology (BT) agenda gains momentum, CIOs are looking to technologies like virtualization and cloud that create agility by dynamically responding to business conditions. Network infrastructure has been a laggard on this score — until now.
AT&T has unveiled its solution, Network on Demand. It’s the basis for a new category of services aligned with customer requirements, including self-service access, control, and configuration of network bandwidth and features like security, routing, and load balancing. Network on Demand:
Gives customers control of network services. Network on Demand offers a completely different customer experience regarding network provisioning. Near-real-time provisioning via a self-service portal makes the customer’s network responsive to business needs.
To help security pros plan their next decade of investments in data security, last year myself, John Kindervag, and Heidi Shey, researched and assessed 20 of the key technologies in this market using Forrester's TechRadar methodology. The resulting report, TechRadar™: Data Security, Q2 2014, became one of the team’s most read research for the year. However, it’s been a year since we finalized and published our research and it’s time for a fresh look.
One can argue that the entirety of the information security market - its solutions, services, and the profession itself - focuses on the security of data. While this is true, there are solutions that focus on securing the data itself or securing access to the data itself - regardless of where data is stored or transmitted or the user population that wants to use it. As S&R pros continue to pursue a shift from a perimeter and device-specific security approach to a more data- and identity-centric security approach, it’s worthwhile to hyper focus on the technology solutions that allow you to do just that....
Last year, we included the following 20 technologies in our research:
Often considered the poster child of digital transformation, APIs are proliferating at enterprises making industry-leading investments in mobile, IoT, and big data. As these initiatives mature, CIOs, CTOs, and heads of development are coming together with business leaders to manage and secure companywide use of APIs using API management solutions.
Forrester recently released a report that sizes and projects annual spending on API management solutions. We predict US companies alone will spend nearly $3 billion on API management over the next five years. Annual spend will quadruple by the end of the decade, from $140 million in 2014 to $660 million in 2020. International sales will take the global market over the billion dollar mark.
In interviewing vendors for this piece of research, we discovered a vast and fertile landscape of participants:
Startups have taken $430 million in venture funding, and so far have realized $335 million in acquisition value. In April 2015, pure-play vendor Apigee went IPO and currently trades at a valuation north of $400 million.