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.
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.
Background — High Performance Attached Processors Handicapped By Architecture
The application of high-performance accelerators, notably GPUs, GPGPUs (APUs in AMD terminology) to a variety of computing problems has blossomed over the last decade, resulting in ever more affordable compute power for both horizon and mundane problems, along with growing revenue streams for a growing industry ecosystem. Adding heat to an already active mix, Intel’s Xeon Phi accelerators, the most recent addition to the GPU ecosystem, have the potential to speed adoption even further due to hoped-for synergies generated by the immense universe of x86 code that could potentially run on the Xeon Phi cores.
However, despite any potential synergies, GPUs (I will use this term generically to refer to all forms of these attached accelerators as they currently exist in the market) suffer from a fundamental architectural problem — they are very distant, in terms of latency, from the main scalar system memory and are not part of the coherent memory domain. This in turn has major impacts on performance, cost, design of the GPUs, and the structure of the algorithms:
Performance — The latency for memory accesses generally dictated by PCIe latencies, which while much improved over previous generations, are a factor of 100 or more longer than latency from coherent cache or local scalar CPU memory. While clever design and programming, such as overlapping and buffering multiple transfers can hide the latency in a series of transfers, it is difficult to hide the latency for an initial block of data. Even AMD’s integrated APUs, in which the GPU elements are on a common die, do not share a common memory space, and explicit transfers are made in and out of the APU memory.
Software AG today announced its cloud strategy. It is based on services that are already available, one that will soon be available (H2 2013), as well as a service planned for Q1 2014.
Journalists have already been in touch with me, asking the following question: Is this an overdue “coming out” after many competitors have already announced or offered extensive cloud strategies — or is this a courageous act from a leading technology firm demonstrating its strength in innovation?
I've known Software AG quite well for many years and believe that today’s announcement marks the next stage in a 10-year corporate turnaround strategy. I well remember the time before Karl-Heinz Streibich took over a nearly bankrupt software vendor 10 years ago. Since then, the firm has been through a financial stabilization phase, which saw both a spending and innovation freeze in many areas. Then, Software AG started to renovate its existing products to stabilize its market share, innovating both carefully and cost-effectively. The third phase saw its acquisition of webMethods and IDS Scheer, which brought the firm sufficient scale in both current products and consulting services. For more details, see my earlier blog post.
Dell just picked up Enstratius for an undisclosed amount today, making the cloud management vendor the latest well-known cloud controller to get snapped up by a big infrastructure or OS vendor. Dell will add Enstratius cloud management capabilities to its existing management suite for converged and cloudy infrastructure, which includes element manager and configuration automator Active System Manager (ASM, the re-named assets acquired with Gale Technologies in November), Quest Foglight performance monitoring, and (maybe) what’s still around from Scalent and DynamicOps.
This is a good move for Dell, but it doesn’t exactly clarify where all these management capabilities will fall out. The current ASM product seems to be a combo of code from the original Scalent acquisition upgraded with the GaleForce product; regardless of what’s in it, though, what it does is discover, configure and deploy physical and virtual converged infrastructure components. A private cloud automation platform, basically. Like all private cloud management stacks, it does rapid template-based provisioning and workflow orchestration. But it doesn’t provision apps or provision to public or open-source cloud stacks. That’s where Enstratius comes in.
I’ve noticed a growing trend among Asia Pacific organizations over the past 6-12 months: complete IT resistance to SaaS has steadily given way to more pragmatic discussions, even if IT has come to the table grudgingly. Over the next two years I expect this trend to accelerate. In fact, I believe that many SaaS solutions, particularly those that cross business and functional boundaries, will be rapidly subsumed within the broader IT portfolio, even if they were originally sourced outside IT.
Many SaaS vendors report already seeing more IT involvement in procurement, requirements definition, RFP creation, and negotiations. The clear procurement guidelines published by the IT department of the Australian Government Information Management Office (AGIMO) is one high profile example. Don’t get me wrong, in most instances business decision-makers will still lead, particularly in identifying the required business processes and determining how best to consume SaaS-based services. But IT decision-makers are getting more involved, particularly around integration.
Some areas to consider as you look to work more closely with business decision-makers to evaluate and negotiate SaaS and other public cloud deals:
No one would claim that the US tech market is booming. With Europe still mired in recession and debt problems, US economic growth looking soft, and business and consumer worries about the US government raising tax rates and cutting Federal spending, it is not surprising that businesses and governments are being cautious in their purchases of technology goods and services. But we think the fear is overblown. Forrester's forecast for the US tech market in 2013 and 2014 -- published today as "US Tech Market Outlook For 2013 And 2014: Better Times Ahead" -- projects a 6.2% rise in 2013 and a 6.8% growth in 2014 in US business and government purchases of computer equipment, communications equipment, software, IT consulting and systems integration services, and IT outsourcing. Adding in slow growing telecommunications services pulls growth down to 5.7% in 2013 and 6.1% in 2014. That may not be a boom, but it is certainly not a bust.
While CIOs are cautious in their tech buying -- and in the case of the Federal government, actually cutting back -- that caution has and will show up mostly in reduced spending on computer and communications equipment (with the exception of tablets). CIOs will be most aggressive in software, especially for SaaS apps, analytics, and mobile apps. IT outsourcing will see good growth in 2013 as the result of 2012 selection decisions, while IT consulting and systems integration will come on strong in 2014. Business and government purchases of telecommunications services will continue to grow at a slower rate than the overall tech market.
As businesses get serious about the cloud, developers are bringing more business-critical transaction data to cloud-resident web and mobile apps. Indeed, web and mobile apps that drive systems of engagement (how you interact with your customers and partners) are the reason why many companies look to the cloud in the first place. Public clouds offer the speed and agility developers want, plus the development tools they need. Once you’ve built a killer web or mobile app in the cloud and it’s in production, driving real revenue, who’s responsible for making sure it performs?
It’s a team effort. Developers have to think about performance management as they build, and IT operations teams need to design application monitoring and management into their cloud deployment processes up front. Why? Because there’s no time to do it later. You won’t have time to implement a new app monitoring solution for each new cloud app before you need to get it out to users. And once it’s out there, you need to be tracking user experience immediately.
In traditional IT, one of the reasons we could get away with limited insight into application performance was because we usually overprovisioned resources to make sure we didn’t have to worry about it. It’s easier to have excess capacity than to solve tricky performance problems – problems you might only see once in a while.