On October 31, IBM and Tencent announced that they will work together to extend Tencent’s public cloud platform to the enterprise by building and marketing an industry-oriented public cloud.
Don’t be fooled into looking at this move in isolation. With this partnership, IBM is turning to a new page of its transformation in China, responding to the challenges of a stricter regulatory environment, an increasingly consumerized technology landscape, and newly empowered customers. The move is a crucial milestone in IBM’s strategy to localize its vision for cloud, analytics, mobile, and social (CAMS). IBM has had a strategic focus on CAMS solutions and is systematically building an ecosystem on four pillars:
Cloud and social. This is where IBM and Tencent are a perfect match. IBM’s cloud managed service, operated by its partner 21ViaNet, officially went live on September 23. It can support mission-critical applications like ERP and CRM solutions from SAP and Oracle from both the IaaS and SaaS perspective. This could help Tencent target large enterprise customers beyond its traditional base of small and medium-size businesses (SMBs) and startups by adding social value to ERP, CRM, and EAM applications.
I sat down with Steve Cowley, General Manager for IBM Watson, on Tuesday at IBM Insights to talk about Watson successes, challenges since the January launch, and what is in store. While the potential has always intrigued me, the initial use cases and message gave me more than a bit of pause: the daunting task to develop and train the corpus, the narrowness of the use cases, what would this actually cost? Jump ahead nine months and the IBM Watson world is in a very different place.
IBM is clearly in its market building phase. It is as much about what IBM Watson is and how IBM overall is repositioning itself as it is about changing the business model for selling technology. However, it is easy to get negative very fast on this strategy as seen with the tremors on Wall Street as IBM's stock has gone from a 52 week high of $199 to $164 at close on Friday 10/31, much of that happening in the past month since earnings release. Wall Street may not like company uncertainty during transitional periods, but enterprise architects care about what will make their organizations successful, make development and management of technology easier, and making sure costs don't sky rocket when new bright shiny objects come in. And, that is where IBM is headed with an eye toward changing the game.
IBM Watson delivers on information over technology.
Steve surprised me with this statement, "[With] traditional programmed systems, the system is at its best when it is deployed, because it is closest to the business need it was written for. Over time these systems get further and further away from the shifting business need and so either they fall in effectiveness, or require a great deal or maintenance." Steve pointed out that data is what is changing the game.*
Technology has given your customers choices and digital predators the edge. Ask marketing, they will tell you about the decreasing effectiveness of traditional campaigns. Look at your business strategy and find plans to address new digital competitors that have become serious threats overnight. Across the board, Forrester finds high expectations that emerging technology will help firms stay competitive amidst these changes. But which ones should you pay attention to? Cloud, mobile, social, Read more
Customers crave contextual and personal experiences on their mobile devices. Companies are looking to the reams of location and behavior data spun off mobile device to deliver them. Meanwhile, executives long for the insights lurking just below the surface of the new data they collect on customers and prospects to improve services and chart the best business strategy.
In most companies, mobile engagement, customer analytics, innovation, and business strategy happen in silos and often half-heartedly. But disrupters like Uber, TripIt, Netflix, Flipboard, and Starbucks deliver great and personalized mobile and digital experiences -- and optimize outcomes -- with insights derived from all the data they can gather.
My January 2013 report “PaaS Market Dynamics in China, 2012 To 2017,” forecast that China’s platform-as-a-service (PaaS) market would remain in flux until 2015. But now I think it will take even longer for the cloud landscape in China to consolidate and stabilize, for three reasons:
1. The boundary between infrastructure-as-a-service (IaaS) and PaaS is breaking down.
2. Emerging technologies like Docker are having an impact on technology and mindsets.
3. China has emerging startups in both the IaaS and PaaS segments.
The startups mainly focus on differentiating the cloud user experience by automating various layers to deliver unique value to potential adopters of cloud solutions. They include:
QingCloud.Founded in 2012, QingCloud raised US$20 million in Series B funding in January 2014. Its IaaS offerings for public and virtual private cloud include computing (image and instances), network (VxNet, routing, elastic IP, and load balancing), storage (volume and snapshot), database (MySQL-based, master/slave synchronization support with auto-snapshot), security (group policy and SSH key pair login), and management features (web console to deploy, manage, and monitor resources), which are billed on a per-second basis.
Previously, when CIOs and enterprise architecture professionals talked about “business-to-business” (B2B) commerce in China, most people thought of third-party B2B marketplaces like Alibaba.com or HC360.com. Very few companies use professional B2B solutions internally, instead relying on a combination of order management systems, customer relationship management, and third-party B2B marketplaces to trade with their business partners.
This is going to change. We have observed a few trends in the Chinese market that will become major drivers for the adoption of enterprise B2B solutions. These trends were further validated during the SAP summit last week in Shenzhen.
The legacy application architecture on the market won’t address the challenges of the age of the customer. Most of the companies currently doing business in China’s B2B market are small and medium-size companies with low IT systems maturity — many of them still exchange business information by emailing Excel files. These firms must rely on third-party marketplaces for business collaboration.
Somewhat lost in the discussion of HP splitting into two is whether breaking into smaller companies is an unstoppable trend in the tech sector. HP plans to break itself apart, creating two approximately $60 billion, publicly owned, global companies. No one would consider these small. Companies at a certain size just can't execute at the speed of digital customers today. Heres our take on why.
Marc Adreessen made the point well at Dreamforce last week. He basically said that tech companies are different from others in that their product is really innovation. The products driving revenue today will be different in three years or less. By contrast, the Campbell Soup Company made soup 50 years ago, and while they may acquire other retail food companies, they will still be selling soup 50 years from now.
HP was the first US company to create a joint venture subsidiary in China; three decades later, the vendor has become a major player in the country’s consumer and enterprise markets. Among enterprises, HP has strong brand awareness for its server products and services, traditional software solutions, and IT services, but rather less for holistic application life-cycle management (ALM), especially on the mobile side. I think it’s time for technology decision-makers and enterprise architects to seriously consider adopting mobile app delivery management solutions and to evaluate HP for that purpose. Here’s why:
HP’s portfolio now covers the entire mobile app life cycle.The products HP will bring to market as part of its latest strategy will eventually cover the entire mobile application life cycle from app design, development, and optimization to distribution and monitoring. For example, at the design stage, HP Anywhere — based on popular open source product Eclipse — allows developers to write once to multiple devices within its integrated development environment. And its service virtualization feature can help virtualize third-party cloud services and make them consumable across each layer of the system architecture, including web servers, application servers, and web services.
HP’s solution has rich optimization features suitable for Chinese enterprises. At the mobile app optimization stage, HP’s Mobile Center uses a comprehensive approach to functionality, interoperability, usability, performance, and security to consolidate and automate mobile testing. Mobile Center is integrated with LoadRunner, one of the most popular performance engineering tools in Chinese market.
One of the biggest stumbling blocks is getting business resources to govern data. We've all heard it:
"I don't have time for this."
"Do you really need a full time person?"
"That really isn't my job."
"Isn't that an IT thing?"
"Can we just get a tool or hire a service company to fix the data?"
Let's face it, resources are the data governance killer even in the face of organizations trying to take on enterprise lead data governance efforts.
What we need to do is rethink the data governance bottlenecks and start with the guiding principle that data can only be governed when you have the right culture throughout the organization. The point being, you need accountability with those that actually know something about the data, how it is used, and who feels the most pain. That's not IT, that's not the data steward. It's the customer care representative, the sales executive, the claims processor, the assessor, the CFO, and we can go on. Not really the people you would normally include regularly in your data governance program. Heck, they are busy!
But, the path to sustainable effective data governance is data citizenship - where everyone is a data steward. So, we have to strike the right balance between automation, manual governance, and scale. This is even more important as out data and system ecosystems are exploding in size, sophistication, and speed. In the world of MDM and data quality vendors are looking specifically at how to get around these challenges. There are five (5) areas of innovation:
Spending time at the MDM/DG Summit in NYC this week demonstrated the wide spectrum of MDM implementations and stories out in the market. It certainly coincides with our upcoming MDM inquriry analysis where: