CityOne, IBM's new Smarter City Simulation game, is interesting. But who will really play?
IBM introduced a new Smarter City Simulation game yesterday. I took a few minutes to play around with it. I love the idea. It is SimCity meets Smarter City, and together they make CityOne. Players are presented with challenges faced by decision-makers in Retail, Banking, Energy and Water industries within a city. They start with a budget for each industry. And, for each challenge, they are provided with a list of recommended actions and must choose among them. Each action has a cost and associated benefits. Some are more “right” than others, earning bonus credits and increasing customer satisfaction and other key performance indicators, as well as earning special awards. A player likely knows not to pick the "Ignore the problem" option. Yet, when in doubt you can also query a consultant for additional advice.
My sense was that the “right” answers seemed pretty obvious. However, that said, I certainly didn’t get a high score. And, when I got to the end of my ten turns, I was feeling pretty overwhelmed by the issues across these industries.
Everyone’s using the term “sustainability.” And, I’ll admit I’m a little jaded. But, given that it’s around to stay for a while, let’s take a look at the term. What are the primary objectives of “sustainability” initiatives? Are they “green” – with an eye toward protecting the environment by reducing the effects of climate change? Are they economic – cost cutting, increasing efficiency? “Sustain” seems static, maintain the current state. But some are thinking about “sustainability” as a means of generating growth. A few weeks ago, I started an interesting discussion about “operational sustainability” with Rich Lechner, IBM Vice President for Energy and Environment. (I say started because it actually continued this week, and will likely continue further.)
“Sustain to grow” may seem like an oxymoron, but it’s not. First let’s think about efficiency. What does it mean to be more efficient? Efficiency to me is the goal to “do more with less” – improving the ratio of output to input. So you cut and improve productivity ratios that way. But what if you’ve cut as much as you can, and you still want to do more, to improve those ratios? How can you grow within the limits of the resources you have? Sustain resources, increase productivity or capacity – in whatever terms or measures of capacity you use. This translates into the objective behind “operational sustainability.” How do you improve operations or processes in order to improve outcomes, within the limits of available resources?
Historically, the positioning of Dell versus its two major competitors for high-value enterprise business, particularly where it involved complex services and the ability to deliver deeply integrated infrastructure and management stacks, has been as sort of an also ran. Competitors looked at Dell as a price spoiler and a channel for standard storage and networking offerings from its partners, not as a potential threat to the high-ground of being able to deliver complex integrated infrastructure solutions.
This comforting image of Dell as being a glorified box pusher appears to be coming to an end. When my colleague Andrew Reichman recently wrote about Dell’s attempted acquisition of 3Par, it made me take another look at Dell’s recent pattern of investments and the series of announcements they have made around delivering integrated infrastructure with a message and solution offering that looks like it is aimed squarely at HP and IBM's Virtual Fabric.
To paraphrase Charles Dickens, Q2 2010 seemed like the best of times or the worst of times for the big software vendors. For Microsoft, it was the best of times; for IBM, it was (comparatively) the worst of times; and for SAP it was in between. IBM on June 19, 2010, reported total revenue growth of just 2% in the fiscal quarter ending June 30, 2010, with its software unit also reporting 2% growth (6%, excluding the revenues of its divested product lifecycle management group from Q2 2009). Those growth rates were down from 5% growth for IBM overall in Q1 2010, and 11% for the software group. In comparison, Microsoft on June 22, 2010, reported 22% growth in its revenues, with Windows revenues up 44%, Server and Tools revenues up 14%, and Microsoft Business Division (Office and Dynamics) up 15%. And SAP on June 27, 2010, posted 12% growth in its revenues in euros, 5% growth on a constant currency basis, and 5% growth when its revenues were converted into dollars.
What do these divergent results for revenue growth say about the state of the enterprise software market?
So what does this mean for CIOs and IT, the custodians of enterprise technology architecture?
It is clear Jive wants to play with the big boys in the enterprise software space. To date, many Jive deployments have not involved IT. This ability to deploy its technology without IT’s involvement has no doubt helped Jive to this point. Of course, having market-leading functionality hasn't hurt. (Jive has featured highly in recent Forrester Wave reports).
At the recent Enterprise 2.0 conference in Boston, I sat down with Jive’s new CEO, Tony Zingale, to explore the company strategy. From our discussion, it was apparent that Jive intends to compete for a big slice of the enterprise collaboration marketplace. Fundamentally, this is the right direction for Jive, but I foresee some big challenges for the company along the way.
There has been a lot of negative press and commentary regarding the recent Queensland Health Implementation of Continuity Project (SAP HR and Payroll), which recently experienced a very public failure as many employees were not paid due to multiple points of failure in the project. The recent Auditor-General's Report on the process is damning, spreading the blame across multiple agencies and the systems integration partner, IBM. I make no claims to be familiar with the intricate details of the process, but I have read the report and feel I have a clear understanding of the (many!) points of failure.
While this project did seem to be a monumental failure, I would suggest that we consider two important facts:
While I started my previous blog post with the observation that KACST was not a “city,” Caroline Spicer, Strategy and Market Development Leader for IBM Global Business Services, made the point later in the day that there is not “a city” but many models of cities depending on future vision. There are a couple of points to draw out here. There is not one model of a smart city. Cities can focus on particular initiatives based on their leaders’ (and their constituents’) priorities and vision for the future of the city. As Caroline pointed out these might be:
The well-planned city – focused on urban design and development
The healthy and safe city – focused on health
The sustainable eco-city – focused on the environment
The city of innovation – focused on science and technology, the knowledge base
The city of commerce – focused on trade and retail
The cultural or convention hub – focused on tourism
The rise and rise of cloud has been dominating the headlines for the past few years, and for CIOs, it has become a more serious priority only recently. People like cloud computing. Well - at least they like the concept of cloud computing. It is fast to implement, affordable, and scales to business requirements easily. On closer inspection, cloud poses many challenges for organizations. For CIOs there are the considerable challenges around how you restructure your IT department and IT services to cope with the new demands that cloud computing will place on your business - and often these demands come from the business, as they start to get the idea that they can get so many more business cases over the line for new capabilities, products and/or services, as they realize that cloud computing lowers the costs and hastens the time to value.
Here I sit finally getting a chance to reflect on my 30 hours in Saudi Arabia. Yes, just a little more than one day. But one day was enough to change any preconception that I might have had, and spark my interest to learn more. My “day” started with the VIP treatment through passport control – which I must say was much appreciated. The airport in Riyadh is certainly not Dubai International – far from it. But if there were any disappointment at the inauspicious first impression, it stopped there. Although to set the stage, I was invited to Saudi Arabia by IBM to participate in an analyst event showcasing “Smarter Cities” initiatives in the Kingdom. So admittedly, I was only presented the “smart” side of Riyadh. I am eager to see more.
Today, Google announced Google App Engine for Business, and integration with VMware’s SpringSource offerings. On Monday, we got a preview of the news from David Glazer, Engineering Director at Google, and Jerry Chen, Senior Director Cloud Services at VMware.
For tech industry strategists, this is another step in the development of cloud platform-as-a-service (PaaS). Java Spring developers now have a full platform-as-a-service host offering in Google App Engine for Business, the previously announced VMforce offering from salesforce.com, plus the options of running their own platform and OS stacks on premise or in virtual machines at service providers supporting vCloud Express, such as Terremark.
What’s next? IBM and Oracle have yet to put up full Java PaaS offerings, so I expect that to show up sometime soon – feels late already for them to put up some kind of early developer version. And SAP is also likely to create their own PaaS offering. But it’s not clear if any of them will put the same emphasis on portability and flexible, rich Web-facing apps that Google and VMware are.
So Google aims to expand into enterprise support – but will need more than the planned SQL support, SSL, and SLAs they are adding this year. They'll also need to figure out how to fully integrate into corporate networks, the way that CloudSwitch aims to do.