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Over the past 12 months, we have witnessed the acquisition of 28 software or software-as-a-service (SaaS) firms globally, compared with only 13 IT services or BPO firms (see the figure below). The Forrsights Budgets and Priorities Survey, Q4 2012 indicated that 67% of business decision-makers in India planned to increase their department’s spending on SaaS and other as-a-service offerings in 2013 through the IT organization. Anticipating the market’s growing shift to the cloud, large enterprise software players like Oracle and SAP are acquiring SaaS-based products and solutions (Taleo, Ariba, SuccessFactors, etc.) to help them shift their business model to meet the growing market preference for SaaS subscription software over traditional licensed software products.
CIOs in India must capitalize on this gradual global shift in M&A — away from pure IT services and toward cloud-based services — in order to fundamentally shift the way IT is delivered in their organizations. CIOs should adopt a three-pronged strategy to gain full advantage of global technology M&A trends:
We recently published our Quick Take report Breaking Down VMworld 2013, covering the San Francisco show. In that doc we talked about the need for VMware to consolidate and clarify its cloud and virtualization management stack. Since Barcelona has become the venue for VMware management announcements, did VMware deliver this week? The short answer is “yes, stay tuned.” While most press reports focused on the Desktone buy and the expansion of vCloud Hybrid Service to Europe, I was watching for some direction on cloud management and like what I’ve heard so far.
Cloud management tools today tend to offer too much or too little, and that makes cloud either too expensive or too hard. Cloud managers have to either roll their own with evolving open-source management tools, or buy into a Frankenstack of cloudy infrastructure and app management tools with overlapping features, too many interfaces, and (often) several ways to automate the same workflow. Finding that happy middle ground – packaged cloud management stacks, well-integrated, easy to buy and easy to use – must be the goal for those vendors who want to both make money off cloud management and make cloud easier for enterprise I&O buyers.
We just published a report on the state of adoption of Office 2013 And Productivity Suite Alternatives based on a survey of 155 Forrester clients with responsibility for those investments. The sample does not fully represent the market, but lets us draw comparisons to the results of our previous survey in 2011. Some key takeaways from the data:
One in five firms uses email in the cloud. Another quarter plans to move at some point. More are using Office 365 (14%) than Google Apps (9%).
Just 22% of respondents are on Office 2013. Another 36% have plans to be on it. Office 2013's uptake will be slower than Office 2010 because fewer firms plan to combine the rollout of Office 2013 with Windows 8 as they combined Office 2010 with Windows 7.
Alternatives to Microsoft Office show little traction. In 2011, 13% of respondents supported open source alternatives to Office. This year the number is just 5%. Google Docs has slightly higher adoption and is in use at 13% of companies.
On October 15, I was invited to the launch of Unify, the new name for Siemens Enterprise Communications. Giving up a heritage stretching back to the age of the telegraph is a courageous move at best. Like some of its peers with a strong history in communications, Siemens Enterprise Communications has been through a tough period recently. Like Nokia Handsets and BlackBerry, the company has had to reposition its business to regain lost ground. But this is where the comparison stops, for this move is a bold departure and is being put into practice differently:
Unify is not an evolution; it's a new beginning. As the CEO Hamid Akhavan announced the new Unify brand, there was a mixture of emotions; it was both a sad departure from the powerful parent and liberation in the face of a new mission — harmonizing the enterprise. Mr. Akhavan presented the brand as young, hip, and customer-focused. A fresh, apple-green Unify logo completes the picture; it is differentiated, concise, and a good base upon which to build a lively brand in the years to come.
A couple of weeks ago I wrote a post about the rising number of ‘computer glitch’ articles during 2013 and discussed that our approach to technology monitoring is not good enough for today’s digital economy. Equally I have also seen an increasing number of inquiries in relation to monitoring and management strategies as businesses start to realize the importance of business technology monitoring. This has been good to see but in order to achieve ROI from any monitoring or management solution investment you have to firstly understand the business importance of the IT or digital services that you provide before making any purchasing decisions. While working on Forrester’s TechRadar on Business Technology Monitoring it became evident that the monitoring solution market is evolving at quite a fast pace with a number of developments in infrastructure, application and end user monitoring resulting in new features and new solution approaches.
So if you are responsible for, or are involved in, your company’s technology monitoring or management strategy then here are the major, high level market developments that you need to be aware of:
Here's a question I've been getting a lot recently: "how far apart should I locate my primary data center from my farthest recovery data center?" Unfortunately, the answer is "it depends". There is no hard and fast rule for how far apart your sites should be, but here is my basic rule of thumb: the sites should be far enough apart that they are not subject to the majority of the same risks. Whether it's winter storms, power outages, or terror threats, you need to make sure that it's highly unlikely that a single event could take down both sites.
But seriously, just give me a number. Ok, ok, I have some numbers. In the chart below you can see how far apart companies were locating their recovery sites in 2007 and in 2010. What's interesting here is that between 2007 and 2010, survey respondents reported shorter distances between primary and secondary data centers. In 2007, 22% of respondents reported that the distance between their primary data center and farthest backup data center was greater than 1,000 miles, while in 2010, only 12% claimed this distance.
You want 2013 data? We are currently collecting that data now in our Forrester/Disaster Recovery Journal Survey which I highly encourage you to take here.
So, does that mean farther apart is better? Not necessarily! Consider the following:
Distance ≠ safety. Just because sites are far apart, doesn't mean they can't experience the same risks. For example, a company that has their primary site in South Florida and a recovery site in North Carolina would have significant distance between the sites, but could still both be impacted by a single hurricane.
Two weeks after the Federal government shutdown and two days before the Federal government runs out of means to pay all its bills without additional Federal borrowing, the unthinkable development of a Federal debt default needs to be thought about. The responsibility for this situation lies squarely with the House Republicans, who have refused to bring to a vote a resolution to raise the debt ceiling without conditions. Moderate Senate Republicans and Senate Democrats have been working on a resolution that would raise the debt ceiling until January and re-open the Federal government at current, sequestration-reduced spending levels, in return for initiating negotiations between the White House, Democrats, and Republicans on longer-term deficit reduction plan and some minor adjustments to the Affordable Care Act. While this could well form the basis for a way out of this deadlock before midnight on Thursday, October 17, some House Republicans have already labeled it "a surrender" and vowed to oppose it. So, I think the risk of a Federal debt default is at 10% and rising.
In Barcelona this week, VMware announced that it is acquiring Desktops-as-a-Service provider, Desktone. This is a market I've been watching for several years, and I think this is good news for both Desktone and VMware customers. On one hand it provides an alternative for VMware prospects who are unsure whether they want to make the investment in ramping up an in-house VDI initiative, and it provides a scale-out option for existing VMware View customers who may be loathe to make additional capital investments to expand their capacity. With Citrix also developing their own homegrown DaaS infrastructure offering for service providers, this move further legitimizes the DaaS market.
Forrester has been tracking the rise in interest in DaaS specifically in our Forrsights surveys of IT decision makers for the past 2 years, which gives us a unique view into the market. In Figure 1 below, we can see the rise in IT decision-maker interest in DaaS relative to on-premise hosted virtual desktops, and see that year-over-year growth of DaaS interest is strong. The market accelerated in part because Infrastructure-as-a-Service providers see it as a way to monetize their existing infrastructure investments.
So far the latter seems to be the prevailing trend as the majority of public cloud platforms and private cloud software solutions start with the foundation of server virtualization. The bare metal options are being positioned more for two purposes:
Auto-provisioning new nodes ofthe cloud - bare metal installation of the cloud solution and the hypervisor
New compute resource types inthe cloud - using new automation capabilities to add a complete physical server to a customer’s cloud tenancy, as if it were just another virtual machine.
I attend numerous security and IT conferences each year, most of which simply blur together into a vendor cacophony about the perils of social, cloud, and mobile device adoption or the ever present danger from devious cybercriminals and nefarious state-sponsored agents. The uniform repetition of this narrative from every vendor in the industry reminds me of the drowning din of thousands of cicadas awakening from hibernation. McAfee Focus had a different feel. And overall, compared to other conferences, it was a worthwhile trip, and not just because Chris McClean and I won at craps, but because while McAfee did pay homage to the technical security pros in the audience with the requisite discussion of the changing threat landscape and accompanying hacking demo, there was a palpable difference in their narrative, particularly in CEO Mike DeCesare’s keynote. Here are a few notable highlights from the conference: