Google Pays Orange To Carry Video Traffic

Dan Bieler

Orange’s CEO mentioned during a business show on French TV that Orange is receiving money from Google for transmitting Google’s traffic (most of which stems from YouTube). No details about the financial arrangement of the year-old deal were disclosed.

Given the well-known explosion in data traffic, carriers must invest a significant amount in their network infrastructure to support this traffic. See the Forrester report, “The Future Of Telecom: Strategies To Move Off The Endangered Species List,” for more information. For years, carriers have argued that online service providers (OSPs) like Google should pay for using the carrier network infrastructure.

So, does the Orange-Google deal mean that Orange has won a true victory and that the balance of power between carriers and OSPs is restored? Does the deal really address the challenges of the carrier world? Hardly.

  • Carriers rely on video content that drives demand for high broadband connectivity. Moreover, consumers already pay the carriers for their broadband connectivity. In my opinion, there is a valid argument that those end users who want high-quality video should be able to have it at extra cost. But this extra fee could be paid directly to the carrier in the form of a high-end broadband connection fee. Alternatively, the carrier could offer wholesale connectivity to OSPs, allowing the OSPs to offer content that comes with embedded high-quality connectivity.
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Choosing Between Microsoft Office 365 And Google Apps Hinges On Your Belief In The Vendor's Vision

TJ Keitt

Over the last couple of years, I've fielded a number of inquiries from Forrester clients who are trying to decide whether their company should move their email and other collaboration workloads into the cloud via Google Apps for Business or Microsoft Office 365. This conversation has gained so much momentum that I recently did a podcast with my colleague Mike Gualtieri on the subject, will host a teleconference covering the topic on February 26, and will soon publish a report detailing answers to five of the common questions that we get about online collaboration and productivity suites (which include Office 365, Google Apps, and IBM SmartCloud for Social Business). Fueling this extended conversation are business and IT leaders' deliberations over one question: Is there a right or wrong in selecting one vendor's offering over the other? I'll use a typical analyst hedge to answer: It depends.

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Government Innovation Is Not An Oxymoron

Jennifer Belissent, Ph.D.


Really, it is not. I was heartened to see that it doesn’t even make the oxymoron list, which does however include “government worker,” “congressional ethics,” and the rather hackneyed “military intelligence.” In fact, governments are innovating all over the place, particularly with the help of new technologies and a growing constituency of civic-minded developers.

One of my colleagues here at Forrester asked me today if I was planning to write a Playbook on smart cities. While we don’t have a government playbook currently in the works, we have a number of reports that share market trends and industry best practices. So I thought I’d pull together a list. 

Here are a few examples of Forrester reports that illustrate government innovation. My series on smart cities includes:

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The Gamification Of Business

Nigel Fenwick
GamificationThe most engaging, most entertaining, and most stimulating presentation of IBM Connect 2013 came on the third day at the end of the opening session. I'm ashamed to admit that I didn't know Jane McGonigal when she came on stage. But after a minute I was fully engaged and tweeting insights and pearls of wisdom from her presentation. 
I had missed the title of her presentation, but Jane was already throwing out fascinating data points on game playing. Now you have to understand, game playing to me is that thing my son does to avoid doing his homework. I haven't thought deeply about games since I built two animated game simulations on an Apple II to teach people business in my final year of university back in '84 (now I'm dating myself).
"We've invested 400,000 years playing Angry Birds" - Jane is on a roll now. I'm thinking "oh my, I too had contributed a few of those hours." Before giving it up as a colossal waste of time of course. I didn't know it, but apparently I was suffering from what Clive Thompson calls "gamers regret".
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Cisco's message is getting clearer

Dan Bieler


At the Cisco Live EMEAR 2013 event in London, Cisco brought a new down-to-earth dynamism to the table. The vision for how Cisco is intending to empower its clients in an evermore connected world is becoming clearer. In this blog, Forrester analysts Dan Bieler and Peter O’Neill discuss their take-home messages from the event:

Hosted Collaboration Solution is empowering its high-end channel partners.

Dan. HCS, Cisco’s hosted collaboration suite, allows carriers to offer cloud-based as-a-service solutions, comprising unified communications, telepresence, contact centre, as well as a range of communication features under the Jabber brand. In EMEAR, BT, Telefonica, and Vodafone are already selling HCS, primarily aiming it at MNC customers. It remains to be seen whether the HCS pitch is the right one for smaller carriers and SMBs, especially as Cisco remains committed to catering to SMBs.

Peter. They also need to think about being more attractive to the needs of midmarket system integrators and MSPs. That means they must provide different price configurations that are attractive to SMBs. Positioning themselves only to the national telcos is quite restrictive and doesn’t match the increasing demand we are seeing for these solutions across the market. But, of course, if they want to compete in the SMB segment, they’ll compete with Google and Microsoft and their pricing strategies. The best way to run two pricing strategies is to use two brands.

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Capability-As-A-Service And What It Means For Technology Vendor Strategy

Nigel Fenwick

In my last post, I wrote about the evolving need for big business to source generic capabilities from business partners/vendors. This shift provides an enormous opportunity as well as a threat for technology vendors and CIOs.

I’m not talking about the wholesale outsourcing of IT. Rather, the selective sourcing of business capabilities and business process through software-as-a-service (SaaS), most likely deployed through cloud-based platforms (capability-as-a-service, or CaaS). Software and hardware vendors need to rethink their business from the customer’s perspective. They must figure out how to transform their products into services that deliver business capabilities and business outcomes.

If you’re a tech vendor, this means that you need to analyze each target industry and determine which business capabilities are likely to be strategic, and which are most likely to be generic. In retailing, for example, strategic capabilities might center on mastering customer data to create unique and valuable customer experiences as well as price optimization. Whereas capabilities around merchandising and assortment planning may be generic across many retailers (even though most merchandisers I know would never admit to this), these generic capabilities are likely to be delivered as SaaS in the future.

If you have existing solutions that target an industry’s generic capabilities, they are prime candidates for delivering the capability to the market as a service. Where your solutions target strategic capabilities, you will need to provide highly customized services through strategic partnership arrangements.

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BlackBerry Z10: Beautiful Phone, Good Experience, Missing Apps, Playing Serious Catchup . . .

Ted Schadler

The Z10 is a beautiful device: designers Todd Wood, Don Lindsay, and their teams have done a great job with the industrial design, the swipe-rich interaction gestures, and a whole lot more. The Z10 is a pleasure to hold, to swipe, and to carry around in a suit pants pocket.

Here are my favorite bits:

  • Thin, light, elegant, executive, with a holdable form factor and case.
  • The keyboard, with its predictive word look up and "flip into place" word completion is a pleasure for this thick-thumbed, fumble-finger typer.
  • Swipe gestures, including peeking into the inbox, the slow swipe to home position, and the pulldown configuration are a pleasure to use one-handed.
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7 Mobile Engagement Pitfalls To Avoid: And 7 Mobile-First Alternatives

Ted Schadler

Mobile apps have the thorny problem of needing to work spectacularly and safely on any device over the last wireless mile. Systems integrators, interactive agencies, software vendors, and your own infrastructure and application development teams will pitch you endlessly on technology to handle these problems. Some of these technology solutions will be great. But others carry traps for the unwary. In our new report, we call out 7 pitfalls and describe 7 mobile-first alternatives that are better.

One big trap lurking in most firms’ mobile strategy is using MDM to indiscriminately lock down devices. The temptation to replicate the BlackBerry era will backfire. Remember that RIM’s controls is partly what spurred employees and executives to defect to iPhones. If you lock mobile devices down too tightly, you will be pummeled for putting a theoretical concern for information security ahead of usability and the practical reality of a productive mobile workforce. If people can’t immediately get what they need, they’ll leave the phone in their pocket.

Figure 1: 7 Pitfalls To Avoid

Print out this list of pitfalls and their alternatives and tape it your monitor. Or blow it up and post it in your mobile center of excellence. Here are two pitfalls for everybody to avoid:

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Sourcing Capabilities: What Big Business Can Learn From Startups

Nigel Fenwick

It's been clear for years now that small business startups don't build massive IT departments and big operations teams. Instead they focus on the capabilities which truly differentiate them in the marketplace - their strategic capabilities. They hire experts in these capabilities as employees and continue to improve their differentiation. At the same time, they look to source their more generic business capabilities from business partners and technology service providers.

We are going to see a seismic shift in big business in the coming years: there will be an increasing appetite to source generic capabilities from vendors and business partners; at the same time CEOs will focus increasingly scarce human capital resources on improving their strategic capabilities - the capabilities which give them a competitive edge.

While digital technology will remain at the heart of these strategic capabilities - leveraging cloud, big data analytics, mobile and social - the majority of technology services will be sourced from partners and vendors. The company's own technology resources will become more and more intensely focused on developing unique systems of engagement around strategic capabilities.

Next post: Capability-As-A-Service And What It Means For Technology Vendor Strategy

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Technology Opens Doors To New Workplaces

Jennifer Belissent, Ph.D.

“Telecommuting” and flexible work spaces are nothing new. I’ve worked from home, from public libraries, airport lounges, and even Sun Microsystem’s iWork Cafes and drop-in centers for the past 10 years. Companies have been (and are increasingly) giving employees the flexibility to choose where they work. If someone wants to work from a cafe in the morning before a client meeting, reserve a table in the campus cafeteria for a chat with a colleague at noon, and work from a co-work or drop-in space near their child’s daycare at the end of the day, they can do that. What is new is the ability to reserve all of those different workspaces with a single tool – and in real time.   

I had a great discussion with the team from LiquidSpace yesterday to learn more about how they work. They provide a marketplace for those with work spaces to offer and individuals looking for alternative work sites. “Just as Open Table is a platform used by restaurants, we are a similar real-time platform for workplaces,” explained Mark Gilbreath, the LiquidSpace CEO and co-founder. “We are not an owner of space. We are the tool to connect users and space.” And, those workplaces can include both public spaces – such as hotel meeting rooms, executive suites like Regus or co-work spaces – as well as private spaces on a company’s campus or meeting rooms within a residential building or development. 

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