For the past seven years Forrester’s Groundswell Awards have recognized the most innovative social and collaboration programs with a measurable business impact. This year in the business-to-employee (B2E) division we gave out awards in two categories:
Employee Collaboration. This category recognizes programs that help employees work better together.
Employee Empowerment. This category recognizes programs that help employees better serve customers.
With last week's $175M acquisition of storage startup Inktank, the initial developer of the Open Source Ceph storage platform, Red Hat has added another piece to its growing storage portfolio. With large storage players fleshing out their software storage offerings including EMC (ScaleIO, Project Nile), NetApp, HP, and IBM, it's clear that the transition from hardware-centric storage appliances to software storage is underway — and it won't be long before we are at a point where your next array should be an app running on commodity hardware.
Though large storage players have successfully fended off software challengers such as Symantec before, it is telling that nearly all of the major players are developing and marketing their own software storage products, including EMC’s ScaleIO. The drive toward software storage is clearly gaining momentum, and this time around the storage leaders are active participants in addition to startups such as Nexenta Systems and the Open Source projects.
While Red Hat is not a major storage player today, there are a few reasons why this company could become disruptive as the market transitions to software storage:
No legacy business to lose. This is probably the most powerful attribute that makes Red Hat dangerous relative to existing storage players. While Red Hat’s market share (in terms of storage revenue and paying customers) is nowhere near the likes of leaders such as NetApp and EMC, its lack of legacy business will allow Red Hat to attack the NAS, object, and block storage market without the sacrifice of losing high-margin storage appliance sales.
Since Tibco acquired Jaspersoft on April 28th, 2014, I keep being asked the question: “Will this deal change the BI and analytics landscape?” (If you missed the announcement, here’s the press release.)
The short answer is: it could. The longer answer goes something like this: Jaspersoft and Tibco Spotfire complement each other nicely; Jaspersoft brings ETL and embedded BI to the table, whereas Spotfire has superior data analysis, discovery, and visualization capabilities. Jaspersoft’s open source business model provides Tibco with a different path to market, and Jaspersoft can benefit from Tibco’s corporate relationships and sales infrastructure. And with its utility-based cloud service, Jaspersoft also adds another option to Spotfire’s SaaS BI offering.
But that’s only the narrow view: once you take into consideration Tibco’s history (the hint’s in the name - “The Information Bus Company”) and the more recent string of acquisitions, a much larger potential story emerges. Starting with Spotfire in 2007, Tibco has assembled a powerful set of capabilities, including (but not limited to) analytics, data management, event processing, and related technologies such as customer loyalty management and mapping. If Tibco manages to leverage all of its assets in a way that provides enterprises with a flexible and agile integrated platform that helps them turn their data into actionable information, it will be a powerful new force that has the potential of changing enterprise BI platforms market.
To get there, Tibco has a number of challenges to address. On a tactical basis, it’s all about making the Jaspersoft acquisition work:
Retaining the talent
Making it easy for clients and prospects to engage with both companies
Microsoft’s cloud-based productivity suite, Office 365, is now generally available in China through a partnership with 21Vianet, China’s largest carrier-neutral Internet data center service provider. This announcement follows the recent launches of Microsoft Azure and SQL Server 2014.
Local teams ensure timely responses. 21Vianet has 300 engineers to provide hardware and software service and support for Microsoft Azure and Office 365. For emerging technologies, large Chinese organizations and government agencies like to have local engineers available to quickly solve their problems rather than using a service hotline or remote support.
Chinese customers can choose the services they want.Companies and government agencies wishing to purchase Office 365 have a range of tiered pricing options with different functionality, including only buying one Office 365 service — say, SharePoint, Exchange Online, or Lync. As Chinese organizations normally run collaboration applications on-premises, they won’t give up legacy infrastructure, preferring to test public cloud services on a small scale first. For example, TCL uses on-premises email and Office software, so it’s only buying Lync and SharePoint services to improve efficiency instead of completely migrating to a public platform.
As I move about the industry talking about APIs (application programming interfaces) and the API economy — which hold important and transformative business opportunities — I’m frequently confronted with disparaging remarks about SOA (service-oriented architecture), as if it’s passé, gone, finito. It’s often in the way of (uninformed) assumptions about SOA. I hear things like, “SOA failed because it was too difficult” or “People do REST APIs now, they don’t do SOA” or other such bunk.
I’ll be the first to extol the importance and benefits of APIs, but the tales of SOA’s failure and demise are simply wrong (I really do like APIs; see this report). I had a powerful reminder of all this while attending IBM’s IMPACT conference this week. First off, I arrived late to one customer’s plain-vanilla “this is our enterprise SOA journey” session only to be refused entry because the room was over capacity. Glancing over the conference program, there were at least eight such sessions representing four continents and at least five vertical industries. I attended five of them and also had lunch with another SOA leader. The stories could all be summarized by the following plot line:
We saw the value in SOA. Whether the need was multichannel customer engagement, faster time-to-market, retiring legacy, getting past complex and costly point-to-point integration, dealing with duplicate applications, or some other business-technology problem, a core team recognized that SOA could make things better.
Yesterday HP announced that it will be entering into a “non-equity joint venture” (think big strategic contract of some kind with a lot of details still in flight) to address the large-scale web services providers. Under the agreement, Foxcon will design and manufacture and HP will be the primary sales channel for new servers targeted at hyper scale web service providers. The new servers will be branded HP but will not be part of the current ProLiant line of enterprise servers, and HP will deliver additional services along with hardware sales.
The motivation is simple underneath all the rhetoric. HP has been hard-pressed to make decent margins selling high-volume low-cost and no-frills servers to web service providers, and has been increasingly pressured by low-cost providers. Add to that the issue of customization, which these high-volume customers can easily get from smaller and more agile Asian ODMs and you have a strategic problem. Having worked at HP for four years I can testify to the fact that HP, a company maniacal about quality but encumbered with an effective but rigid set of processes around bringing new products to market, has difficulty rapidly turning around a custom design, and has a cost structure that makes it difficult to profitably compete for deals with margins that are probably in the mid-teens.
Enter the Hon Hai Precision Industry Co, more commonly known as Foxcon. A longtime HP partner and widely acknowledged as one of the most efficient and agile manufacturing companies in the world, Foxcon brings to the table the complementary strengths to match HP – agile design, tightly integrated with its manufacturing capabilities.
It takes a lot more than a static analysis tool, a web scanning service, and a few paid hackers to make your mobile development lifecycle, team, and eventually, your applications secure. Finding flaws in an individual mobile application is easy (assuming you have the right technical skill set). What is a lot harder is actually stopping the creation of mobile application security flaws in the first place.
To achieve the lofty goal of a truly secure mobile application development program takes a rethinking of how we have traditionally secured our applications in the past. Mobile development brings many changes to enterprise engineering teams including additional new device sensors, privacy impacting behaviors that cross the security chasm between consumer and enterprise isolation, and even faster release cycles on the order of days instead of months. Smaller teams with little to no experience in security are cranking out mobile applications at a fevered pace. The result is an accumulation of security debt that will eventually be paid by the enterprises and consumers that use these applications.
It's clear that digital leadership is needed to achieve the transformation to a digital business. But does a company need a single digital leader, or do all executives need to become digital leaders?
Last month I published a report on digital leadership that examined the DNA of early digital executives. From this research, we learned that all digital leaders must be able to deliver on digital competencies across three dimensions: strategic, transformational, and operational. The degree to which digital leaders need to emphasize each depends upon the organization's digital maturity (see figure).
What is clear from our research into digital business is that your business needs both the CIO and the CMO to join forces to enable the transformation to a digital business. In conjunction with Forrester's Forum For Technology Management Leaders, we'll be revealing a new piece of research on digital business in 2014. This research digs into the data to reveal that state of digital business across a range of industries — identifying who is currently leading digital initiatives. As well as delivering a keynote at the Forum based on "Unleash Your Digital Business," I'll also be presenting a track session that gets deeper into the question of digital leadership to help you answer the question of who should really lead digital business transformation.
On April 23, IBM rolled out the long-awaited POWER8 CPU, the successor to POWER7+, and given the extensive pre-announcement speculation, the hardware itself was no big surprise (the details are fascinating, but not suitable for this venue), offering an estimated 30 - 50% improvement in application performance over the latest POWER7+, with potential for order of magnitude improvements with selected big data and analytics workloads. While the technology is interesting, we are pretty numb to the “bigger, better, faster” messaging that inevitably accompanies new hardware announcements, and the real impact of this announcement lies in its utility for current AIX users and IBM’s increased focus on Linux and its support of the OpenPOWER initiative.
OK, so we’re numb, but it’s still interesting. POWER8 is an entirely new processor generation implemented in 22 nm CMOS (the same geometry as Intel’s high-end CPUs). The processor features up to 12 cores, each with up to 8 threads, and a focus on not only throughput but high performance per thread and per core for low-thread-count applications. Added to the mix is up to 1 TB of memory per socket, massive PCIe 3 I/O connectivity and Coherent Accelerator Processor Interface (CAPI), IBM’s technology to deliver memory-controller-based access for accelerators and flash memory in POWER systems. CAPI figures prominently in IBM’s positioning of POWER as the ultimate analytics engine, with the announcement profiling the performance of a configuration using 40 TB of CAPI-attached flash for huge in-memory analytics at a fraction of the cost of a non-CAPI configuration.[i]
A Slam-dunk for AIX users and a new play for Linux
It’s been an interesting few weeks for Microsoft. XP has gone off Support and left many clients exposed to security risks. At the same time, the US Government has just warned all users to avoid using Internet Explorer (IE) versions 6 to 11 as they say that there is a serious flaw that hackers are already apparently exploiting.
Against this backdrop, Satya Nadella, Microsoft’s newly minted CEO, joined Microsoft’s recent earnings call to talk about the ‘courage’ they will exhibit as they move forward. Let’s hope that courage includes supporting clients who find themselves in difficulty from product flaws.
Microsoft reported earnings were $6.97 billion on revenue of $20.4 billion; this is roughly flat with a year ago. But this third quarter fiscal 2014 earnings call might be more memorable for the fact that the company's CEO was on the call than for anything about the earnings report itself. Nadella spent an hour on the analyst call on April 24 talking Microsoft strategy and answering Wall Street analyst questions. That's something former CEO Steve Ballmer rarely did.
While Nadella didn't make any major announcements, he did drop a few hints that might tell us more about his plans and where Microsoft may be going.
"What you can expect of Microsoft is courage in the face of reality, we will approach our future with a challenger mind set," Nadella told analysts. Here are a few challenges that spring to my mind; cumbersome and sometimes conflicting contractual paperwork, product divisions working in isolation from each other, Google and IBM competing hard in the email/collaboration/cloud space, having to cut Azure prices to more closely align to Apple and Amazon, and a frustratingly slow start in the tablet space.