In mid-July, my colleagues and I attended Orange’s annual analyst event in Paris. There were no major announcements, but we made several observations:
ORANGE is one of the few carriers with true delivery capabilities. Its global footprint is a real advantage vis-a-vis carrier competitors, in particular in Africa and Asia. At the recent event, Vale, the Brazilian metals and mining corporation, presented a customer case study in which Vale emphasized the importance of ORANGE’s global network infrastructure for its decision to go with ORANGE as UCC and network provider. ORANGE’s global reach positions it well to address the opportunity in emerging markets, both for Western MNCs going into these markets and also to address intra-regional business in Africa and Asia. Another customer case study with the Chinese online retailer 360buy, focusing on a contact center solution, demonstrated ORANGE’s ability to win against local competitors in Asia.
Cloud Services Offer New Opportunities For Big Data Solutions
What’s better than writing about one hot topic? Well, writing about two hot topics in one blog post — and here you go:
The State Of BI In The Cloud
Over the past few years, BI business intelligence (BI) was the overlooked stepchild of cloud solutions and market adoption. Sure, some BI software-as-a-service (SaaS) vendors have been pretty successful in this space, but it was success in a niche compared with the four main SaaS applications: customer relationship management (CRM), collaboration, human capital management (HCM), and eProcurement. While those four applications each reached cloud adoption of 25% and more in North America and Western Europe, BI was leading the field of second-tier SaaS solutions used by 17% of all companies in our Forrester Software Survey, Q4 2011. Considering that the main challenges of cloud computing are data security and integration efforts (yes, the story of simply swiping your credit card to get a full operational cloud solution in place is a fairy tale), 17% cloud adoption is actually not bad at all; BI is all about data integration, data analysis, and security. With BI there is of course the flexibility to choose which data a company considers to run in a cloud deployment and what data sources to integrate — a choice that is very limited when implementing, e.g., a CRM or eProcurement cloud solution.
“38% of all companies are planning a BI SaaS project before the end of 2013.”
At a CIO roundtable that Forrester held recently in Sydney, I presented one of my favourite slides (originally seen in a deck from my colleague Ted Schadler) about what has happened r.e. technology since January 2007 (a little over five years ago). The slide goes like this:
Source: Forrester Research, 2012
This makes me wonder: what the next five years will hold for us? Forecasts tend to be made assuming most things remain the same – and I bet in 2007 few people saw all of these changes coming… What unforeseen changes might we see?
Will the whole concept of the enterprise disappear as barriers to entry disappear across many market segments?
Will the next generation reject the “public persona” that is typical in the Facebook generation and perhaps return to “traditional values”?
How will markets respond to the aging consumer in nearly every economy?
How will environmental concerns play out in consumer and business technology purchases and deployments?
How will the changing face of cities change consumer behaviors and demands?
Will artificial intelligence (AI) technologies and capabilities completely redefine business?
Last year, my colleague, James Staten, and I published evaluations of the (internal) private cloud and public cloud markets — this year we’re going to fill in the remaining gap in the IaaS space, by publishing a Forrester Wave evaluation on Hosted Private Cloud Solutions. Vendors participating in this report will be evaluated on key criteria, a demo following a mandatory script, and customer references for validation of the solution. Throughout the research process I’ll be providing some updates and interesting findings before it goes live in early Q4 2012.
So, what is hosted private cloud? Like almost every product in the cloud space, there’s a lot of ambiguity about what you’ll be getting if you sign on to use a hosted private cloud solution. Today, NIST defines private cloud as:
The cloud infrastructure is provisioned for exclusive use by a single organization comprising multiple consumers (e.g., business units). It may be owned, managed, and operated by the organization, a third party, or some combination of them, and it may exist on or off premises.
Hosted private cloud refers to a variation of this where the solution lives off-premises in a hosted environment while still incorporating NIST's IaaS service definition, particularly where “[t]he consumer does not manage or control the underlying cloud infrastructure but has control over operating systems, storage, and deployed applications.” But there’s a great deal of variation in today’s hosted private cloud arena. Usually solutions differ in the following ways:
B2B communication, with its original form of EDI messages, is the oldest and unfortunately the least flexible form of integration between systems and different enterprises. Many enterprises run B2B gateways on-premises or have managed service contracts for “their instance of their B2B Hub.”
I’ve received over the past months an increasing number of inquiries from Forrester clients asking for the future of this approach and the market trend. This is what I usually explain:
Your future cloud/legacy integration should cover your business partner and your SaaS applications. Cloud computing is disrupting the integration space! Why? Traditionally, you had two very distinguished integration scenarios. Either, it was about the integration between multiple systems within your enterprise — middleware software, with product categories like EAI, ESB, CIS, and BPM, was the matching solution, as all systems have been on premises in the past. Or, it was about the integration with your business partners — the well-established B2B/EDI gateways and managed services were the matching solution over the Internet (or VANs). However, cloud computing disrupted the space already: Suddenly parts of your business unit’s applications are in the cloud on packaged SaaS applications, and they needed to be integrated with your on-premises legacy. Or, you and your business partners even use the same SaaS applications, and B2B traffic is as simple as moving data from one tenant to the other tenant on the same cloud platform. To face this trend of an increasing variety of integration, a good cloud integration strategy should look at synergies between the cloud/legacy integration scenarios with your business partners and the SaaS tenants of your own enterprise holistically!
Bridgekeeper: "What ... is your name?"
Traveler: "John Swainson of Dell."
Bridgekeeper: "What ... is your quest?"
Traveler: "Hey! That's not a bad idea!"
We suspect Dell's process was more methodical than that!
This acquisition was not a surprise, of course. All along, it has been obvious that Dell needed stronger assets in software as it continues on its quest to avoid the Gorge of Eternal Peril that is spanned by the Bridge of Death. When the company announced that John Swainson was joining to lead the newly formed software group, astute industry watchers knew the next steps would include an ambitious acquisition. We predicted such an acquisition would be one of Swainson's first moves, and after only four months on the job, indeed it was.
In typical Microsoft fashion, they don't catch a new trend right with the first iteration but they keep at it and eventually strike the right tone and in more cases than not, get good enough. And often good enough wins. That seems the be the pattern playing out with Windows Azure, its cloud platform.
Just three months after SAP acquired SuccessFactors, a cloud leader for human capital management solutions, for $3.4 billion, it has now announced the acquisition of Ariba, a cloud leader for eProcurement solutions, for another $4.3 billion. Now, $7.7 billion is a lot of money to spend in a short amount of time on two companies that hardly make any profit. But it’s all for the cloud, which means it’s for the future business opportunity in cloud computing services. So far, so good; SAP has invested and acquired quite a number of cloud companies over the past years: Frictionless, Clear Standards, Crossgate, etc. The difference in this most recent acquisition is the big overlap with existing solutions and internal R&D.
Following the first wave of cloud acquisitions, SAP was sitting amid a zoo of cloud solutions, all based on different platforms: ePurchasing, CRM-OnDemand, BI-OnDemand, Carbon Impact, ByDesign, Streamwork . . . They all used very different technology, resulting in big integration and scale challenges behind the scenes. The market welcomed with open arms SAP’s announcement 1.5 years ago that it would consolidate its cloud strategy on the new NetWeaver platform for both ABAP- and Java-based cloud solutions.
On May 15, 2012, the Infocomm Development Authority (IDA) of Singapore announced that it would award its much-awaited externally hosted g-cloud infrastructure five-year tender to SingTel. My colleague Jennifer Belissent and I published a report on g-cloud opportunities in Asia Pacific late last year that highlighted Singapore as one of the governments leading the way toward g-cloud adoption in the region.
Some key highlights from the Singapore g-cloud contract:
SingTel will be responsible for all of the capex- and opex-related costs needed to build and manage the central infrastructure from its own data center in Singapore.
Singtel will provide a central “G-Cloud Service Portal” to all government organizations and departments to access central g-cloud services (computing, storage, database, archiving, networking, and other basic resources) and derive revenue based on a subscription model.
The Singapore government has not committed to any particular minimum g-cloud usage level.
SingTel will provide the required training to government departments on g-cloud functioning.