Meeting with Tech Mahindra – Insights and Reality Check on IT Automation

Richard Fichera

I recently had a meeting with executives from Tech Mahindra, an Indian-based IT services company, which was refreshing for the both the candor with which they discussed the overall mechanics of a support and integration model with significant components located half a world away, as well as their insights on the realities and limitations of automation, one of the hottest topics in IT operations today.

On the subject of the mechanics and process behind their global integration process, the eye opener for me was the depth of internal process behind the engagements. The common (possibly only common in my mind since I have had less exposure to these companies than some of my peers) mindset of “develop the specs, send them off and receive code back” is no longer even remotely possible. To perform a successful complex integration project takes a reliable set of processes that can link the efforts of the approximately 20 – 40% of the staff on-site with the client with the supporting teams back in India. Plus a massive investment in project management, development frameworks, and collaboration tools, a hallmark of all of the successful Indian service providers.

From a the client I&O group perspective, the relationship between the outsourcer and internal groups becomes much more than an arms-length process, but rather a tightly integrated team in which the main visible differentiator is who pays their salary rather than any strict team, task or function boundary. For the integrator, this is a strong positive, since it makes it difficult for the client to disengage, and gives the teams early knowledge of changes and new project opportunities. From the client side there are drawbacks and benefits – disengagement is difficult, but knowledge transfer is tightly integrated and efficient.

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Microsoft's Asia Pacific Analyst Summit 2013: A Tale Of Two Days

Michael Barnes

Forrester attended Microsoft’s second annual Asia Pacific Analyst Summit in Singapore last week for an update on the company’s progress in transforming into a devices and services company. The event highlighted Microsoft’s strengths and exposed some obvious challenges, which I’ve shared below. Forrester clients can access further event-related analysis and implications here.

Day One: Impressive Capabilities And A Strong Understanding Of Customer Needs

Day one was well designed and delivered, with a clear focus on customer and partner case studies and go-to-market strategies based on three core imperatives:

  • Transforming IT. Focusing primarily on Cloud OS, Windows Azure, and Office 365, this imperative highlights Microsoft-enabled capabilities and resources to help IT organizations transform both internal data centers and IT delivery.
  • Engaging customers and employees. This imperative essentially combines mobility and social to help organizations thrive in the age of the customer by delivering improved customer service and customer and user experiences.
  • Accelerating customer insight and business process improvement. This imperative targets the changing needs and expectations for data and information access and real-time decision making via a combination of traditional analytics and big data.
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SAP Services Will Make Or Break SAP's Platform Strategy

Fred Giron

Over the past few months, SAP Services has embarked on a major software-enabled services transformation of its offerings and operating models. The strategic intent is to increasingly rely on IP-based solutions (including SAP’s Rapid Deployment Solutions portfolio and assemble-to-order methodology) to deliver outcomes faster, with lower risks for clients and, eventually, support value-based pricing. Next on SAP Services’ transformation road map? I believe that the organization needs to quickly change the perception of the rest of the SAP ecosystem, which still views SAP Services as a competitor.

SAP Services’ business model used to merely rely on staffing “rock star” consultants on client projects in order to facilitate the implementation of complex solutions. The new strategy aims at positioning the 15,000 service professionals on SAP’s newer solutions (e.g., cloud, mobile, HANA . . .) in order to ensure that early projects generate the promised outcomes. In order to achieve this goal, the delivery teams need to be much more focused on collaborating internally (with the R&D team, for instance) as well as externally (with clients). SAP Services will also need to increasingly work collaboratively with its partners in order to ensure the success of the overall SAP-as-a-Platform strategy.

SAP Services needs to:

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Old ROI Methods Are Holding Back The Adoption Of New Technology

Andrew Bartels

My colleagues at Forrester and I have been puzzling over the discrepancy between the wealth of attractive new mobile, cloud, and smart computing technologies in the market, and the relatively weak record of actual growth in tech spending that our tech market forecasting numbers show.  Certainly, the recessions in Europe and weak economies in the US, Japan, China, India, Brazil and other emerging markets explain part of the weakness in tech buying.  In addition, cloud computing’s impact on the timing of tech spending (reducing initial upfront capital purchases of owned hardware and software while increasing future subscription payments for use of these resources) means that  spending that in the past would have occurred in current years has now been pushed into the future.  Lastly, as a recent Economist article pointed out, business investment in general has been low compared to GDP and to cash distributed to shareholders this decade, as CEOs with stock option compensation have focused on meeting quarterly earnings-per-share targets instead of investing for the longer term (see Buttonwood, “The Profits Prophet,” The Economist, October 5, 2013). Still, even taking these factors into account, tech investment has been growing more slowly relative to economic activity than in past cycles of tech innovation and growth.

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Four Common Approaches To Private Cloud

Lauren Nelson

In 2012, I wrote a blog titled Private Cloud: 'Everyone's Got One, Where's Yours?' which looked at the perception of private cloud versus the reality of the environments that carry this name. Although reported interest and adoption were high, most environments fell short of the basic characteristics of cloud. Almost 1.5 years later, Forrester continues to see interest in and reported adoption of private cloud -- according to Forrester's Hardware Survey, in 2014, 55% of North American and European enterprises plan to prioritize building an internal private cloud, and 33% already having adopted private cloud. Despite the increased awareness in private cloud shortcomings, Forrester found that only 1/4 of these "private cloud" environments establish self-service access for its users. What's most interesting is that most of these enterprises aren't looking to private cloud for cloud-specific benefits. 

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Four Common Approaches To Private Cloud

Lauren Nelson

In 2012, I wrote a blog titled Private Cloud: 'Everyone's Got One, Where's Yours?' which looked at the perception of private cloud versus the reality of the environments that carry this name. Although reported interest and adoption were high, most environments fell short of the basic characteristics of cloud. Almost 1.5 years later, Forrester continues to see interest in and reported adoption of private cloud -- according to Forrester's Hardware Survey, in 2014, 55% of North American and European enterprises plan to prioritize building an internal private cloud, and 33% already having adopted private cloud. Despite the increased awareness in private cloud shortcomings, Forrester found that only 1/4 of these "private cloud" environments establish self-service access for its users. What's most interesting is that most of these enterprises aren't looking to private cloud for cloud-specific benefits. 

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NASA Flunked Its Cloud Computing Audit: Are You Next?

Renee Murphy

Ok, so NASA failed an audit. Don’t we all? I think it is important to understand the government’s cloud computing adoption timeline before passing judgment on NASA for failing to meet its cloud computing requirements. And, as someone who has read NASA’s risk management program (and the 600 pages of supporting documentation), I can say that this wasn’t a failure of risk management policy or procedure effectiveness.  Clearly, this was a failure of third-party risk management’s monitoring and review of cloud services.  

The Cloud Is Nebulous

Back in 2009, NASA pioneered cloud technology with a shipping container-based public cloud technology project named Nebula -- after the stellar cloud formation. (I love nerd humor, don’t you?)

Photo Source: NASA

During 2009, NASA, to determine if current cloud provider service offerings had matured enough to support the Nebula environment, did a study. The study proved that commercial cloud services had, in fact, become cheaper and more reliable than Nebula. NASA, as a result of the study, moved more than 140 applications to the public sector cloud environment.

In October of 2010, Congress had committee hearings on cybersecurity and the risk associated with cloud adoption.  But remember, NASA had already moved its noncritical data (like www.nasa.gov or the daily video feeds from the international space station, that are edited together and packaged as content for the NASA website) to the public cloud in 2009.  Before anyone ever considered the rules for such an adoption of these services.

Audit Recommendations

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Forget IaaS vs. PaaS: Devs Adopting Cloud Services Now

Jeffrey Hammond

I get a lot of questions about the best way for developers to move to the cloud. That’s a good thing, because trying to forklift your existing applications as is isn’t a recipe for success. Building elastic applications requires a focus on statelessness, atomicity, idempotence, and parallelism — qualities that are not often built into traditional “scale-up” applications. But I also get questions that I think are a bit beside the point, like “Which is better: infrastructure-as-a-service (IaaS) or platform-as-a-service (PaaS)?” My answer: "It depends on what you’re trying to accomplish, your teams’ skills, and how you like to consume software from ISVs.” That first question is often followed up by a second: “Who’s the leader in the public cloud space?” It’s like asking, “Who's the leading car maker?” There’s a volume answer and there’s a performance answer. It’s one answer if you like pickups, and it’s a different answer if you want an EV. You have to look at your individual needs and match the capabilities of the car and its “ilities” to those needs. That’s how I think we’re starting to see developer adoption of cloud services evolve, based around the capabilities of individual services — not the *aaS taxonomy that we pundits and vendors apply to what’s out there. This approach to service-based adoption is reflected in data from our Forrsights Developer Survey, Q1 2013, so I've chosen publish some of it today to illustrate the adoption differences we see from service to service. 

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Vendors: Read On To Understand Your Partners' Issues With Cloud

Peter O'Neill

 

Peter O'Neill here with some observations about cloud computing and channel partners. While cloud computing has been a boon for the tech industry in general, for channel partners the story is different. Channel partners have to deal with shrinking product margins, skills shortages, and new competitor types (including tech vendors themselves!). 

And the funny thing is: many vendors still haven’t internalized what predicament their partners are in. How else can you explain Microsoft executives berating their partners that “only 2% of you are in the cloud business” at their recent Worldwide Partner Conference – and then adding insult to injury by suggesting calmly that the partners could host future customer visits in Microsoft Stores, where they can see those MS cloud products (I count the Surface tablet in that list) they cannot even sell!

Forrester Principal Analyst Tim Harmon and myself are discussing these issues almost every day with technology vendors; in fact with B2B vendors in general, because cloud computing is affecting every sector now (including insurance, health care, etc.). Channel partners are changing their business model stripes — in myriad directions, and oftentimes as ungrounded "experiments."

In our new Forrester report, “The Shape-Shifting Tech Industry Channel Ecosystem”, we write about how the successful channel partners of the future will be those that operate under a hybrid business model umbrella, combining on-premises and cloud delivery, and IT and business value.

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Intel Lays Out Future Data Center Strategy - Serious Focus on Emerging Opportunities

Richard Fichera

Yesterday Intel had a major press and analyst event in San Francisco to talk about their vision for the future of the data center, anchored on what has become in many eyes the virtuous cycle of future infrastructure demand – mobile devices and “the Internet of things” driving cloud resource consumption, which in turn spews out big data which spawns storage and the requirement for yet more computing to analyze it. As usual with these kinds of events from Intel, it was long on serious vision, and strong on strategic positioning but a bit parsimonious on actual future product information with a couple of interesting exceptions.

Content and Core Topics:

No major surprises on the underlying demand-side drivers. The the proliferation of mobile device, the impending Internet of Things and the mountains of big data that they generate will combine to continue to increase demand for cloud-resident infrastructure, particularly servers and storage, both of which present Intel with an opportunity to sell semiconductors. Needless to say, Intel laced their presentations with frequent reminders about who was the king of semiconductor manufacturingJ

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