IBM has just announced that one of Australia’s “big four” banks, the ANZ, will adopt the IBM Watson technology in their wealth management division for customer service and engagement. Australia has always been an early adopter of new technologies but I’d also like to think that we’re a little smarter and savvier than your average geek back in high school in 1982.
IBM’s Watson announcement is significant, not necessarily because of the sophistication of the Watson technology, but because of IBM's ability to successfully market the Watson concept.
To take us all back a little, the term ‘cognitive computing’ emerged in response to the failings of what was once termed ‘artificial intelligence’. Though the underlying concepts have been around for 50 years or more, AI remains a niche and specialist market with limited applications and a significant trail of failed or aborted projects. That’s not to say that we haven’t seen some sophisticated algorithmic based systems evolve. There’s already a good portfolio of large scale, deep analytic systems developed in the areas of fraud, risk, forensics, medicine, physics and more.
Tablets aren’t the most powerful computing gadgets. But they are the most convenient.
They’re bigger than the tiny screen of a smartphone, even the big ones sporting nearly 5-inch screens.
They have longer battery life and always-on capabilities better than any PC — and will continue to be better at that than any ultrathin/book/Air laptop. That makes them very handy for carrying around and using frequently, casually, and intermittently even where there isn’t a flat surface or a chair on which to use a laptop.
And tablets are very good for information consumption, an activity that many of us do a lot of. Content creation apps are appearing on tablets. They’ll get a lot better as developers get used to building for touch-first interfaces, taking advantage of voice input, and adding motion gestures.
They’re even better for sharing and working in groups. There’s no barrier of a vertical screen, no distracting keyboard clatter, and it just feels natural to pass over a tablet, like a piece of paper, compared to spinning around a laptop.
Infosys announced last week that Bharti Airtel, India’s leading mobile service provider, has selected its WalletEdge platform to operate Airtel Money, the first mobile wallet service in India. This announcement is interesting from a few different perspectives. First, it will provide a new source of revenues for the Indian telecom industry, which has been struggling with low ARPUs for several years. Second, it’s a boon for the banking industry, which will find a way to accelerate financial inclusion initiatives in line with the recommendations from the Reserve Bank of India. Obviously, the urban Indian consumer will also benefit from the “pay anytime, anywhere” convenience of such a service.
I also look at this deal from an IT services industry perspective, and I believe that it embeds a set of very interesting attributes that will become increasingly prevalent in the way IT services vendors engage with their clients moving forward:
When getting introduced to a new subject or new people, we sometimes play a game called "two truths and a lie." The basics of the game are simple: Anyone introducing a subject - or themselves - states two truths and one lie. The audience then has to identify what the lie is.
Below, you will find three bullets related to our future of software development research. Two are truths as identified by our research, one is a lie:
Software's fueling today's disruption, becoming embedded in everything to make technology useful, usable, and desirable.
Software development expertise will increasingly be centered on Java, .NET, and proprietary development and application platforms.
The U.S. Bureau of Labor Statistics projects software-development-related roles and jobs to increase at double the national average through 2020.
A couple of days ago, global banking platform vendor Temenos announced that it has signed an agreement to acquire Odyssey Financial Technologies, which specializes in the private banking, private wealth management, and asset subverticals of financial services. The deal is expected to close around mid October: Temenos will pay more than 60 million euros and take on Odyssey’s existing debt obligations of more than 20 million euros. Here is my initial reaction to the planned acquisition.
On the asset side, Temenos will get the private banking platform Triple’A Plus, portfolio management and decision support solution WealthManager, plus clients such as Banque Cantonale Vaudoise, Delta Lloyd, and RBS Coutts Bank. This will help Temenos accomplish the necessary extension to its private banking footprint: In spite of prominent private banking clients such as EFG Bank, over the past few years Temenos’ T24 has not been as successful in the private banking/wealth management arena as, for example, ERI Bancaire, SunGard, or Tata Consultancy Services Financial Solutions as far as new named customers are concerned — not to mention the various regional private banking pure players.
At the same time, the Odyssey solutions will add additional technologies and architecture to Temenos’ already existing acquired portfolio: Not considering the two “classic” Temenos banking platforms T24 and TCB and the mobile solutions of recently acquired specialist vendor FE-Mobile, Temenos acquired multiple smaller banking platform vendors over the past few years, including Financial Objects in the UK and Viveo in France, plus further firms such as business intelligence and reporting vendor Lydian Associates.
On September 15th between 11am-12pm EDT Forrester held an interactive TweetJam on the future of cloud computing including Forrester analysts Jennifer Belissent, Mike Cansfield, Pascal Matzke, Stefan Ried, Peter O’Neill , myself and many other experts and interested participants. Using the hashtag #cloudjam (use this tag to search for the results in Twitter), we asked a variety of questions.
We had a great turnout, with more than 400 tweets (at last count) from over 40 unique Tweeter’s. A high level overview of the key words and topics that were mentioned during the TweetJam is visualized in the attached graphic using the ManyEyes data visualization tool.
Below you will find a short summary of some key takeaways and quotes from the TweetJam:
1. What really is cloud computing? Let’s get rid of 'cloud washing!'
I have discussed questions such as “Which banking platform vendor is the right one for a given financial services firm in its specific requirements context in a given country?” with Forrester clients for some time. Interestingly, the share of these discussions touching on questions such as “How viable is vendor X?” and “Is vendor Y the right one for a bank the size of mine?” is increasing. What is the reason for this?
It is clear that in such a global situation, the reduced deal numbers of many vendors and the economic trouble of some are reason for concern for many delivery teams making or supporting the long-term decision for a new banking platform vendor — particularly when preliminary findings from a Forrester survey show a new thrust for the renewal of the financial service application landscape. At the same time, banking platform vendors’ behavior is changing:
Have questions about cloud computing and the top challenges and opportunities it presents to vendors and users? Then join us for an interactive Tweet Jam on Twitter about the future of cloud computing on Wednesday, September 15th, 2010 from 11:00 a.m. – 12:00 p.m. EDT (17:00 – 18:00 CEST) using the Twitter hashtag #cloudjam. Joining me (@hkisker) will be my analyst colleagues Mike Cansfield (@mikecansfield), Pascal Matzke (@pascalmatzke), Thomas Mendel (@drthomasmendel), and Stefan Ried (@stefanried). We’ll share the results of our recent research on the long term future of cloud computing and discuss how it will change the way tech vendors engage with customers.
Looking through the current industry hype around the cloud, Forrester believes cloud computing is a sustainable, long-term IT paradigm. Underpinned by both technology and economic disruptions, we think the cloud will fundamentally change the way technology providers engage with business customers and individual users. However, many customers are suffering from "cloud confusion" as vendors' marketing stretches cloud across a wide variety of capabilities.
To help, we recently developed a new taxonomy of the cloud computing markets (see graphic) to give vendors and customers clear definitions and labels for cloud capabilities. With this segmentation in hand, cloud vendors and users can better discuss the challenges and benefits of cloud computing today and in the future.
Last week, I attended the ONS (Offshore North Sea) 2010 conference, one of the world’s largest energy conferences, with more than 49,000 participants, in Stavanger, Norway. The conference theme was “energy for more people,” an important goal, not only to keep pace with the growth of the world’s population (expected to hit 9-plus billion people by 2050) but to fight poverty and increase living standards around the globe. However, soon after the opening ceremony by King Harald V, it became very clear from the first panel discussion that the path forward to achieve this goal has many facets and that the leaders of the world, including politicians, academics, business people, and other authorities, are far from reaching consensus on the right path today.
Conventional Energy Resources
Global energy demand will increase by ~45% within the next 20 years (according to the International Energy Agency), but what will the distribution of energy resources look like by 2030? Most scenarios predict that fossil fuels will continue to be the primary energy source, with oil and gas making up 65% of the total demand. To no one’s surprise, most of the presentations and exhibitions at ONS 2010 were therefore dedicated to the future of fossil fuels that can be combined into the following themes to satisfy the energy demand of tomorrow:
Unlocking new oil and gas reserves in the world. The concept seems to be straightforward: Overcome technical and political hurdles and drill deeper, faster, and more efficiently to carry exploration into new territories such as the Arctic or ultra-deep sea.
I just returned from a business visit to India, and on the long way back, I had the time to sort out some observations and ideas on the future of the banking backbone that I had discussed with bankers as well as banking platform vendor execs over the past few weeks. But let me start from the beginning.