Cloud Computing Enters Its Second Stage - Hypergrowth Ensues

James Staten

The public cloud services market exited 2013 with $58 billion in revenues according to Forrester estimates. Strong growth and maturity over the past three years since our last forecast has put fuel in its tank which will push this market to $191 billion by 2020.  

While the last several years can best be characterized as exploratory for most enterprises, cloud services and cloud platforms are now an undeniable part of the IT landscape. And based on Forrester enterprise CIO inquiries, the shift has begun from exploration of cloud as a potential option, to rationalization of cloud services within the overall IT portfolio. And this shift to the second stage of technology adoption yields significantly higher market revenues than the exploratory phase. Clearly the bulk of this market’s revenues come from Software as a Service (SaaS) solutions which accounted for $36 billion in revenue in 2013. This segment of the market is significantly more mature and well established in several application categories. Cloud platforms, led by Amazon Web Services LLC, were only collectively $4.7 billion last year but are maturing quickly thanks to stronger recent solutions from traditional IT partners IBM, HP and Microsoft. Drilling into the key market segments we see:

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Use Technology To Drive In-Store Customer Engagement

JP Gownder

Hot on the heels of our recent report Infrastructure Will Drive The Retail Store Experiences Of The Future, I've just released some follow-up research: Brief: Using Technology To Drive In-Store Customer Engagement

The I&O role continues to notably evolve from a mere IT role to becoming a BT -- Business Technology -- role. This means taking an increasingly role in empowering customer-facing technologies. And as I&O pros shift toward becoming customer enablers, you should begin to closely track -- and to pilot -- a number of emerging technologies that can help your company attract, retain, and serve customers. Currently, myriad solutions exist; as one start-up vendor told me, "there are so many new technologies out there, it's hard for buyers to decide where to place their bets, so we just try to get our products into trial to prove the value." While the number of these technologies (and their vendors) is great, they tend to share one or more of the following characteristics. As you read the list, ask yourself the question associated with each factor:

  • Hyper-local. Are you experimenting with technologies that engage customers on a highly geographic (e.g. within 1 foot) basis? (Example: iBeacon)
  • Targeted. Are you piloting any technologies that can customize customer engagement based on who they are or what they feel? (Example: Facial Recognition)
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Apps Are Blind — Use Sensors To Make Them See

Mike Gualtieri

Most apps are dead boring. Sensors can help add some zing. Sensors are data collectors that measure physical properties of the real-world such as location, pressure, humidity, touch, voice, and much more. You can find sensors just about anywhere these days, most obviously in mobile devices that have accelerometers, GPS, microphones, and more. There is also the Internet of Things (IoT) that refers to the proliferation of Internet connected and accessible sensors expanding into every corner of humanity. But, most applications barely use them to the fullest extent possible. Data from sensors can help make your apps predictive to impress customers, make workers more efficient, and boost your career as an application developer.

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iPhone Up, iPad Down: What Apple's Device Mix Says About Mobile Devices

JP Gownder

Apple's reported earnings revealed a strong product mix contrast: iPhone sales increased 17% in units and 14% in revenues, while iPad sales decreased 16% in units and 13% in revenues. What accounts for this contrast? Is the iPad's growth trajectory broken?

Simply put, the iPhone's addressable market has only continued to increase with Apple's continued international expansion. Only recently, for example, has Apple broken out in Japan (still the world's third-largest economy); only a few months after releasing the 5S and 5C across all three of Japan's largest carriers, iPhone models made up 9 of the top 10 phones sold. And for iPhone, unlike iPad, the route to sales comes through carrier relationships -- of which Apple has landed more recently.

By contrast, the iPad's year-over-year results lagged because:

  • Price competition in tablets has been fierce. With Android tablets under $200 now commonplace -- including Samsung's Galaxy Tab 3 and Amazon Kindle Fire HDX -- Apple's premium pricing is catching up to it. 
  • Replacement rates are lower than expected. Why are prices catching up to iPad now? Because replacement rates haven't been as quick as with iPhone. The pace at which people purchase smartphones is quicker than that of iPads, even among the Apple faithful. This means that Apple is seeking an ever expanding market -- people without tablets. For later adopters, who didn't see the big deal early on, price matters more than for earlier adopters.
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Pet The Unicorns And Think Of Protecting Customer Data As A Corporate Social Responsibility

Heidi Shey

In a research world where we collect data on security technology (and services!) adoption, security spending, workforce attitudes about security, and more, there’s one type of data that I get asked about from Forrester clients in inquiry that makes me pause: breach cost data. I pause not because we don’t have it, but because it’s pretty useless for what S&R pros want to use it for (usually to justify investment). Here’s why:

  1. What we see, and what is publicly available data, is not a complete picture. In fact, it’s often a tiny sliver of the actual costs incurred, or an estimate of a part of the cost that an organization opts to reveal.
  2. What an organization may know or estimate as the cost (assuming they have done a cost analysis, which is also rare), and do not have to share, is typically not shared. After all, they would like to put this behind them as quickly as possible, and not draw further unnecessary attention.
  3. What an organization may believe is an estimate of the cost can change over time as events related to the breach crop up. For example, in the case of the Sony PlayStation Network Platform hack in April 2011, a lot of costs were incurred in the weeks and months following the breach, but they were also getting slapped with fines in 2013 relating to the breach. In other breaches, legal actions and settlements can also draw out over the course of many years.
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A common denominator for pricing and negotiating Business Intelligence (BI) and Analytics software

Boris Evelson

BI and analytics software packaging and pricing are a Wild West with few common practices among the vendors. Comparing and contrasting vendor prices and negotiating with vendors is challenging because

  • Few vendors publish list prices, so when a vendor tells you you are getting a certain discount you can’t really verify whether the discount numbers are valid or not.
  • Vendors base their prices on multiple variables such as
    • Total number of users
    • Concurrent users
    • User types
    • Connectivity to certain types of data sources
    • Number of CPU cores or sockets
    • CPU clock speed
    • Amount of RAM
    • Server Operating System (OS)
    • Environments such as development, test, QA (quality assurance), UAT (user acceptance testing), production, and DR (disaster recovery)
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62% Of Indian CMOs Will Increase Their Tech Budget In 2014

Manish Bahl

I just published a report on CMO tech spending trends in India and what these trends mean for CIOs in the country. For this report, we surveyed 101 CMOs in India to understand business and marketing priorities, marketing spending on technology, key tech management challenges, and how digital engagement is shaping marketing technology trends in the country. Key highlights from the report:

  • The age of the customer demands that CMOs become customer-obsessed leaders. Indian CMOs’ top two business priorities are addressing the rising expectations of customers and acquiring and retaining customers; 87% and 85%, respectively, of those we surveyed indicated that these are a critical or high priority. Focusing on customers is not new for CMOs; what has changed is the pace at which customer expectations are rising.
  • CMOs are responding by driving their own tech agendas. Today’s customers want faster and better service — and CMOs are looking to technology to make that possible. Sixty-two percent of the Indian CMOs we surveyed plan to increase their technology budget in 2014, whereas just 41% of them actually managed to do so in 2013. About 30% of marketing leaders are gravitating toward establishing a technology department within marketing in order to become self-sufficient. They’re investing in mobile apps, customer analytics, and are looking for new suppliers in winning digital engagement strategy.
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Choose Your Own Adventure With The 2014 Verizon DBIR

Rick Holland

In a world where every single security vendor has their own annual threat report, the Verizon Databreach Investigations Report (DBIR) is the gold standard, and this year is no different. Last year I began blogging my initial analysis (Observations on the 2013 Verizon Data Breach Investigations Report), and I wanted to continue that again this year.  Here are some of the high-level details on this year's report: 

  • Fifty organizations representing 95 countries were included in the data set. This included 1,367 confirmed data breaches. By comparison, last year’s report included 19 organizations and 621 confirmed data breaches.
  • In a significant change, Verizon expanded the analysis beyond breaches to include security incidents. As a result, this year’s dataset has 63,437 incidents. This is a great change, recognizes that incidents are about more than just data exfiltration, and also allows for security incidents like DoS attacks to be included.
  • The structure of the report itself has also evolved; it is no longer threat overview, actors, actions and so on. One of the drivers for this format change was an astounding discovery. Verizon found that over the past 10 years, 92% of all incidents they analyzed could be described by just nine attack patterns. The 2014 report is structured around these nine attack patterns.  
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Wendy's, Mobile Payment Moments Need To Be One-Touch Easy

Ted Schadler

I love Wendy's Dave's Hot 'n Juicy 3/4 lb Triple burger as much as the next Neanderthal, especially after riding 50 miles in the rain. And I love mobile payments because while I often leave my wallet at home, I'm Strava-ing the ride so I always have my phone.

Now while Wendy's mobile payments app has the potential to make it easier to eat burgers on the road, it's getting bashed in the app store. And it has one more annoying problem that I'd like to focus on here: I have to read off a six-digit code for a counter clerk to enter to make it work. While reading off a code to inhale a burger when starving may not sound like much, it's harder than swiping a debit card, so it ain't easy enough.

In our research for The Mobile Mind Shift, we found that what matters most is delivering a great mobile moment -- a point in time and space when someone pulls out a mobile device to get something they want in their immediate context. Getting the mobile moment right is critical to being present in the small and important moments in your customers' lives. Two principles define a great mobile moment:

  1. Deliver huge customer benefit and value to the firm. If the moment isn't hugely beneficial to a consumer, then the mobile moment won't exist at all. The app must do something truly useful it won't earn a place on the screen.
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Big Data Quality: Certify or Govern?

Michele Goetz

We've been having an intersting conversation with clients and internally about the baggage associated with Data Governance.  As much as we (the data people) try, the business thinks it is a necessary, but the commitment, participation, and application of it is considered a burden worth avoiding.  They wonder, "Is this really helping me?"  Even CIOs roll their eyes and have to be chased down when the data governance topic comes up.  They can't even sell it to the business.  

So, the question came up - Do we need to rebrand this? Or worse, do you abandon data governance?

Well, I don't know that I'm convinced that Data Governance needs a new name or brand.  And, with regulatory and security risks it can't be abandoned.  However, what organizaitons need is a framework that is business oriented, not data oriented.  Today, Data Governance is still stuck in the data, even with strong business participation.

Big data is the catalyst.  If you thought your data was challenging before, chaos and messiness takes on a whole other meaning with big data.  Scale now forces us to rethink what we govern, how we govern, and yes, if we govern.  This is to both better manage and govern process-wise, but it also drives us to ask the questions we didn't ask before. Questions about meeting expectations for data over meeting expectations to fit data into systems.

What this means...orient data governance toward data certification.

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