Google is officially serious about the enterprise space. I met with Google Enterprise execs hosting their very first analyst day in Singapore recently, and was introduced to their enterprise suite of services, which was, unsurprisingly, similar to their consumer suite of services.
However, while they took their starting point from the consumer end, providing enterprise-ready solutions requires a different level of product calibration. To that end, Google cites spending of approximately US$3 billion annually on building/improving its data center infrastructure, investing in undersea cable systems, and laying fiber networks in the US specifically. In Asia Pacific (AP) last year, they spent approximately US$700 million building three data centers in Singapore, Hong Kong, and Taiwan.
In addition to infrastructure investments, Google has also acquired companies like Quickoffice to enhance their appeal to enterprises weaned on Microsoft Office, while also expanding existing offerings in areas like communications and collaboration (Gmail, Google Plus), contextualized services (Maps, Compute Engine, Big Query), access devices (Nexus range, Chromebook), application development (App Engine) and discovery and archiving (Search, Vault).
My Forrester colleagues Ted Schadler and John McCarthy have written about the differences between Systems of Reference (SoR) and Systems of Engagement (SoE) in the customer-facing systems and mobility, but after further conversations with some very smart people at IBM, I think there are also important reasons for infrastructure architects to understand this dichotomy. Scalable and flexible systems of engagement, engagement, built with the latest in dynamic web technology and the back-end systems of record, highly stateful usually transactional systems designed to keep track of the “true” state of corporate assets are very different animals from an infrastructure standpoint in two fundamental areas:
Suitability to cloud (private or public) deployment – SoE environments, by their nature, are generally constructed using horizontally scalable technologies, generally based on some level of standards including web standards, Linux or Windows OS, and some scalalable middleware that hides the messy details of horizontally scaling a complex application. In addition, the workloads are generally highly parallel, with each individual interaction being of low value. This characteristic leads to very different demands on the necessity for consistency and resiliency.
At the half mark through 2013, both the global and the European tech markets have pockets of strength and other pockets of weakness, both by product and by geography. Forrester's mid-2013 global tech market update (July 12, 2013, “A Mixed Outlook For The Global Tech Market In 2013 And 2014 –The US Market And Software Buying Will Be The Drivers Of 2.3% Growth This Year And 5.4% Growth Next Year”) shows the US market for business and government purchases of information technology goods and services doing relatively well, along with tech markets in Latin America and Eastern Europe/Middle East/Africa and parts of Asia Pacific. However, the tech market in Western and Central Europe will post negative growth and those in Japan, Canada, Australia, and India will grow at a moderate pace. Measured in US dollars, growth will be subdued at 2.3% in 2013, thanks to the strong dollar, and revenues of US tech vendors will suffer as a result. However, in local currency terms, growth will more respectable, at 4.6%. Software -- especially for analytical and collaborative applications and for software-as-a-service products -- continue to be a bright spot, with 3.3% dollar growth and 5.7% in local currency-terms. Apart from enterprise purchases of tablets, hardware -- both computer equipment and communications equipment -- will be weak. IT services will be mixed, with slightly stronger demand for IT consulting and systems integration services than for IT outsourcing and hardware maintenance.
No sooner had I posted a blog on the issues of digital myopia than I got on a call to learn that Adobe Systems acquired Neolane, under the auspices of the fact that digital is part of marketing, not that digital is the only thing in marketing. This is a very interesting deal (full disclosure, Suresh Vittal, the chief product officer, was a peer of mine at Forrester until December of last year) for a number of reasons:
It continues to place Adobe in the crosshairs of IBM, salesforce.com, Oracle, and SAP. Adobe continues to invest in areas that much larger companies have set their sights on — in this case, with the recent acquisitions of Eloqua by Oracle, ExactTarget by salesforce.com, ongoing acquisitions at IBM, and so on (see Forrester commentary by Mark Grannan here and by Shar VanBoskirk here). With Adobe now firmly in this mix, it will be going up against enterprise-level suppliers, not just marketing department deployments.
Forrester research compares frequently capabilities of software vendors and cloud platforms in our Forrester Waves™. John Rymer and James Staten recently published the comparison of Enterprise Public Cloud Platforms. I am currently researching such a Forrester Wave™ around Hybrid² Integration capabilities. This is the integration between cloud and on-premise and across different traditional integration tools.
However, all these Forrester Waves™ have one significant gap. They all start with a product or service offering by a vendor or (cloud) service provider. Analysts at Forrester Research investigate for sure if the vendor statements are real, watch demos and we try out products on our own before we write about it. One part of the Forrester Wave™ process is also customer interviews, which validate that product features work in reality. All criteria, scores and notes are published to our clients, not only a final PDF.
So where's the gap in such a thorough process? Well, the starting point is always the capabilities that product vendors and service providers claim – never the actual challenge withing the enterprises! I was not aware of any assessment or competition, which really starts here – with a real client challenge and project! Maybe one enterprise ends up using a unique combination of different products and cloud services.
Ten days ago, three of us traveled to Japan for a Fujitsu analyst day held in conjunction with the firm’s huge customer event – the Fujitsu Forum. The analyst day was a follow-on from the firm’s European event last fall. At the two events, the management team, led by Masami Yamamoto, president and representative director, and Rod Vawdrey, the president of Fujitsu’s International Business, talked about the organization’s vision and key imperatives:
Creating a common vision around “Human-Centric Intelligent Society.” Management highlighted publishing the firm’s global vision document. Speakers repeatedly pointed toward Fujitsu’s new “human-centric” vision for how information technology improves business, personal, and societal outcomes. Fujitsu is positioning itself as a provider of solutions aimed at facilitating the activities of consumers and businesses, combining elements of its hardware, software, and services portfolio.
IBM didn't just pick up a hosting company with their acquisition of SoftLayer this week, they picked up a sophisticated data center operations team -- one that could teach IBM Global Technical Services (GTS) a thing or two about efficiency when it comes to next-generation cloud data centers. Here's hoping IBM will listen.
Social sign-in has become a powerful force for marketers and consumers, validating the notion of federated identity in consumer-facing contexts. (Ironic that consumerization of IT is successfully tackling even the single sign-on problem that has bedeviled IT, showing how identity for the top line of the business can overcome resistance in ways that business-to-employee scenarios typically can't.)
But not all consumer-facing federated SSO is social. When I was with PayPal, our team worked on the underpinnings of what eventually turned into Log In with PayPal, which is strictly about federated identity flows for commercial purposes. And today Amazon has come out with Login with Amazon, a powerful statement of Amazon-as-identity-provider. They've been testing this with their own web properties Zappos and Woot; now they're enabling third-party merchants and other sites to use Amazon for authentication of people who already have active Amazon accounts, along with learning a few selected user attributes: name, email, and optionally the zip code of the default shipping addresses. No huge social graphs here, just data that partner eCommerce sites need to function (and make money).
Back in October 2011, Microsoft named the initiative to introduce Windows Azure cloud platform into the Chinese market “Moon Cake,” which represents harmony and happiness in Chinese culture. On May 23, 2013, Microsoft made the announcement in Shanghai that Windows Azure will be available in Chinese market starting on June 6 — almost half a year after its agreement with Shanghai government and 21ViaNet to operate Windows Azure together last November. Chinese customers will finally be able to “taste” this foreign moon cake.
I believe that a new chapter of cloud is going to be written by a new ecosystem in China market, and Microsoft will be the leader of this disruption. My reasons:
The cloud market in China will be more disrupted. Due to the regulatory limitations on data center and related telecom value-added services operations for foreign players, the cloud market for both infrastructure-as-a-service (IaaS) and platform-as-a-service (PaaS) has been an easy battlefield for local players, such as Alibaba/HiChina. Microsoft’s innovative way working with both government and local service partners to break through this “great wall” shows all of the major global giants, such as Amazon.com, the great opportunity from this approach to the Chinese market. We can anticipate that they will also enter the Chinese market in the coming six to 18 months.