How IBM And HP Are Strengthening Their IT-For-Sustainability Offers

Chris Mines
How IBM and HP are Strengthening Their IT-for-Sustainability Offers
 
Over the past few weeks, computing giants HP and IBM have made significant new thrusts into the market for sustainability software and services. At first look, both companies are strengthening their commitment to "IT for sustainability (ITfS)" -- the use of information technology to help their customers meet their sustainability goals.

Both are prominently featuring "energy" in their messaging in keeping with the current customer focus on that side of the consumption/emissions coupling. And both are emphasizing a combination of software products and consulting services, the two segments of the market that we at Forrester have been tracking for some time now, as regular readers of this blog know by now.

But under the surface there are more differences than similarities in the approach that these two suppliers are taking to ITfS; differences that illuminate divergent strategies, philosophies, and experiences between them. Let's take a closer look.

HP is going broad; IBM is narrowing its focus. With its initial "Energy and Sustainability Management Services" entry, HP is leveraging its data center design and implementation expertise into buildings and other assets across the enterprise. It is stressing a holistic, top-down approach, starting with assessment workshops and other methods to help customers get their arms around the size and shape of the energy/carbon/resource issues.

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Change Management: A Critical Component Of Any New Business Process

Claire Schooley

Think of how often you hear the term change management in relation to a new business process. What’s your reaction? Is it “More of that high level stuff that sounds good, but . . .” or is it “Give me something concrete that I can really use to help my staff understand this new process and feel more comfortable with the change”? Methodologies, frameworks, and best practices abound, yet up to 60% of change management projects fail — and these failures are expensive. Should businesses just accept the fact that changes like the introduction of a new email system, a merger or acquisition, or a larger business transformation project are just going to be tough, and no resources are really effective?

Change management can work, but it’s a hard, continuous, and often frustrating process with no shortcuts. Any change management must have detailed planning, strong executive support, continuous and varied communications, assessments to gauge successful milestones, many training approaches, and reinforcement until the process becomes part of the new culture. The change leader needs deep experience in organizational change management. Whether this person is an external consultant or an inside person with a change management background, in most cases this leader also will need to develop a strong team relationship with the project manager.

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Forrester Projects 8% Growth In US IT Purchases In 2011, And 10% In 2012

Andrew Bartels

Forrester just published our latest forecast for the US market for business and government purchases of information technology (IT) goods and services (April 1, 2011, "US Tech Market Outlook, Q1 2011 -- Building a Springboard For Even Stronger Growth in 2012"), and we have raised our 2011 and 2012 outlooks: we now forecast 8% growth in the US in 2011 (up from our 7.4% forecast in January) and 10.3% in 2012 (compared with a 9.3% forecast earlier).  For the broader ICT market (information and communications technology, adding in telecommunications services), 2011 growth will be 6.8% compared to a 5.1% rise in 2012. 

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Amazon’s Cloud Drive Is The First Step To Being A Personal Cloud Ecosystem Player

Frank Gillett

Today, Amazon announced the Amazon Cloud Drive. I think it is the first salvo in a series of steps that will lead Amazon to compete directly for the primary computing platform for individuals, as an online platform, as a device operating system, and as a maker of branded tablets.

Amazon Cloud Drive logo, with puffy arc behind the words

Much of the attention is going to the Amazon Cloud Player, announced at the same time, which enables customers to stream music stored in Cloud Drive – Forrester’s Mark Mulligan blogged about that for Consumer Product Strategists (Amazon Beats Apple and Google to the Locker Room). But the general purpose design of Cloud Drive, combined with the long-term opportunities for personal cloud services, lead to a really interesting set of possibilities and insights into Amazon’s long-term strategy for Vendor Strategists trying to sort out the technologies and players of next-generation personal computing platforms.

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Q1 2011 Results For Accenture And Oracle Point To Strong 2011 For IT Services And Software

Andrew Bartels

On March 24, 2011, both Accenture and Oracle released better-than-expected financial results for their fiscal quarters ending in February 2011.  In both cases, revenue growth was stronger than expected, with Accenture's revenues up 17% and Oracle's reported revenues up 37%.  Note, though, that Oracle's reported revenues were measured against a period in which it recorded only one month's of Sun Microsystems' revenues following the completion of that acquisition; adjusting the base period to show a more complete picture of the Sun revenues (which we estimate at about $1.8 billion in the three months ending in February 2010, compared with the reported $458 million), Oracle's revenues were 13% higher.  Still, its software and services revenues were up a strong 19%.

Because their fiscal quarters end one month earlier than most other vendors, Accenture and Oracle serve as early indicators of how the IT services and software segments of the tech market do each quarter.  The 27% increase in license revenues for Oracle's database and middleware products and the even stronger 34% growth in its application license revenues are signs of growing demand for software products -- not just SaaS products, but also classic licensed software products.  Purchases of those products typically lead to purchases of systems integration consulting services from IT services vendors like Accenture.  And indeed Accenture reported 20% growth in revenues from consulting services, compared with more modest (but still good) 13% growth in its outsourcing businesses.  So, my expectations that software and IT services will be the leading tech market growth categories in 2011 are supported by these results.    

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Informal Buyers Of IaaS Cloud Computing Are Driving The Market, Not Formal IT Buyers – Vendor Strategists Need Two Strategies

Frank Gillett

Cloud infrastructure-as-a-service (IaaS) is a hot market. Amazon Web Services, now five years old, drives a lot of attention and customer volume, but the vendor strategists at enterprise-facing providers such as IBM, HP, AT&T and Verizon have been building and delivering IaaS offerings. As I’ve studied the market, I’ve heard wildly different types of requirements from buyers and quite a range of offerings from service providers. Yet much of the industry dialogue is about one central idea of what IaaS is – think that’s wrong headed. I found that there were really two buyer types: 1) informal buyers outside of the IT operations/data center manager organizations, such as engineers, scientists, marketing executives, and developers, and 2) formal buyers, the IT operations and data center managers responsible for operating applications and maintaining infrastructure.

With this idea in mind, I set out to test the views of IT infrastructure buyers in the Forrsights Hardware Survey, Q3 2010 and learned that:

  • After 2+ years of cloud hype, only 6% of enterprises IT infrastructure respondents report using IaaS, with another 7% planning to implement by Q3, 2012. After flat adoption from 2008 to 2009, this represents an approximate doubling from 2009, off a very small base.
  • Almost two thirds of IT infrastructure buyers themselves don’t believe they are the primary buyer of cloud IaaS! We asked them which groups in their company are using or most interested in cloud IaaS. Only 36% of IT infrastructure buyers listed themselves, while 7% didn’t know. The rest, 58% said that IT developers, Web site owners, business unit owners of batch compute intensive apps, and other business unit developers were more interested in using IaaS than themselves.
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The Consumerization Of IT Proceeds Unevenly, From Growth In Tablets To Anemic BYOPC Adoption

Frank Gillett

Tablets are a red hot topic since the launch of Apple’s iPad more than a year ago. Tablets are the most visible aspect of a broader topic on the minds of vendor strategists – the consumerization of IT. Consumerization is defined variously as using personal devices for work, pay-per-use payment models, spending personal money for work-related cloud services, and employee self-provisioning of IT capacity outside the oversight of IT. In our annual Forrsights Hardware Survey, Q3 2010, we asked IT infrastructure buyers responsible for supporting end user computing about a variety of topics related to consumerization of IT and learned that:

  • The IT organizations in 26% of enterprises (firms with 1000 employees or more) were planning to implement or had implemented general purpose touchscreen tablets such as the Apple iPad. Of that total, 4% reported they’d already implemented, and 17% were already piloting by Q3, 2010, approximately 6 months after the launch of this brand new category. SMBs, firms with 999 employees or less, were lower at 18% planning or implemented.
  • Only 2% of firms, large and small, reported implementing or piloting bring-your-own-PC models, despite several years of hype among the desktop virtualization software vendors about this model. We expect this PC deployment model to grow, but it’s not a broad trend yet.
  • Firms are using more consumer-style Web applications on PCs, with 84% firms increasing their use of Web applications. But they’re not abandoning locally installed applications. 55% of firms are increasing or staying the same on their use of installed applications, while only 4% are seriously reducing use.
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Are Businesses Missing The Benefits Of Collaboration Technology?

TJ Keitt

Last night I had the pleasure of attending a customer case study session hosted by Cisco. Representatives from two clients -- SmithAmundsen (a law firm) and Republic Services (a waste management company) -- discussed how they were deploying Cisco unified communication and collaboration technology within their businesses. While the two speakers presented compelling stories about the need for collaboration within business, what caught my attention was where their companies received value. The constant refrain was these technologies saved money on travel, office space and IT expenditures. This isn't a new story: last year at Cisco's Collaboration Summit, Vid Byanna of Accenture mentioned that travel cost reduction was a big driver for his firm adopting desktop video technology for its remote workforce. Nor is this a Cisco-specific story: I recently published a report that shows the majority of content and collaboration professionals say travel reductions is the #1 benefit of collaboration software. But does it teach us the right lesson about the value of collaboration software?

In general, when we think about finding ways to let employees come together in groups to do work, we assume some type of business benefit: faster problem resolution, more innovative ideas and quicker time to market are a few examples. So why, in a business world where 42% of the workforce is mobile, do just 19% and 9% of content and collaboration professionals see improved innovation and faster time to market, respectively, as outcomes of using collaboration software? I have a couple of ideas that I'll be testing in my research going forward. I think this disconnect springs from one of three places:

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Japan's Troubles Raise A Red Flag But Don't (Yet) Alter Our Global Tech Market Outlook

Andrew Bartels

With Japan's triple hit of earthquake, tsunami, and nuclear power plant dominating newspaper headlines and TV news, I have gotten some questions from clients about the impact of the disaster on the overall tech market.  In general, I think the effects of these disasters on the total 2011 outlook will be small -- at worst, they will hurt tech market growth in Q2 2011 while strengthening growth in Q3 and Q4.  However, that outlook assumes that the problems at the Fukushima Dai-ichi nuclear complex improve or don't worsen.  If that situation turns into a Chernobyl-type disaster that causes permanent evacuations from a multi-mile radius around the plant and possible shutdowns of other nuclear power plants, the impacts on the Japanese economy and on the Japanese tech industry -- not to mention for the people of Japan -- would be very negative, and cause a downward adjustment in our tech market forecast.

The potential impacts of the Japanese disasters show up on both the tech supply side and on the tech demand side, so let's look at both angles. 

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Forrester's IT Forum 2011 Puts You In The Driver Seat

Sharyn Leaver

IT leaders are at a crossroads. To thrive in today's -- and tomorrow's -- rapidly changing digital world, they must move beyond the elusive idea of business and IT alignment, where business leaders are in the driver seat and IT leaders play a supporting and lagging role. Rather than plodding along in alignment, it's time to jump in the copilot seat. It's time to lock arms with their business peers to better serve customers, bring new products to market, and ultimately grow the top line. Our charter for Forrester’s IT Forum 2011 is to help you do just that -- build bridges to new business partners, scale innovative solutions, co-create business and technology strategy, and ultimately help your organization accelerate at the intersection of business and technology.

Forrester's IT Forum 2011But let's be honest. All this talk of linking arms and co-creation may sound good and may be the ticket to your organization's success. But it's hard. Who's to say it will work? And by the way, what's in it for you? That's why Marc Cecere will dedicate IT Forum's opening keynote to exploring future models for IT that will fundamentally change current roles in IT. These models will support greater end user involvement, a larger variety of external suppliers, and the need to break down internal organizational and system silos. He'll also relate that back to what we've learned over the years about why certain IT roles -- like architecture, planning, vendor management, PMO, and security -- often fail (or at least struggle mightily) to arm you with clear steps that will help accelerate your personal career over the next decade.

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