IBM And Teradata — A Tale Of Two Vendors’ Struggle With Disruption

Brian  Hopkins

I said that 2015 would be a tough year for enterprise data and analytics vendors in my spring report, "Brief: Turning Big Data Into Business Insights, 2015." I thought two things would happen. First, open source would drag on vendors’ revenues as demand for big expensive products declined. Second, the cloud would create revenue headaches. Turns out, I was right. Teradata's midyear earnings were down 8%, and IBM reported that Q2 revenue was down 12% from a year ago. As further proof, consider the rash of data management vendors running for private equity (e.g. Dell/EMC, Informatica, and TIBCO). It’s been tough times indeed, even though most vendors are keeping their messaging positive to reassure buyers and investors.

Over the past two weeks, I attended Teradata Partners in Anaheim and IBM Insight in Las Vegas — giving me a firsthand look at how two giants of the data and analytics industry are handling disruption. What I saw was a tale of two vendors that couldn’t be any more different:

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CIOs Move From Custodians To Digital Stewards in 2016

Sharyn Leaver

We’ve been telling you that you need to transition from strictly managing an IT Agenda to owning a BT Agenda, too. 2016 is the year that needs to happen: your CEO will be looking for you to drive digital in your company — and increasingly digital is becoming your business.

At the center of your digital strategy is today’s empowered customer who expects you to be able to serve her in her moment of need. Nearly half of executives in a new survey responded that they believe in less than five years digital will have an impact on more than half their sales. Twelve percent of retailers, that are dealing with consumers showrooming and making their transactions online, believe they will be 100 percent digital by 2020.

Winners in the age of the customer will embed digital into all parts of the business, harmonize virtual and in-store experiences, and be able to rapidly shift to meet the hyperadoption/hyperabandonment behavior of customers.

The scary news? Only a quarter of businesses have a coherent digital strategy to create customer value as a digital business. The onus is on you to deliver that strategy. As CIO, you need to offer a holistic view on the digital transformation that encompasses not just how your firm can harness emerging technology to create customer value, but how your team can help drive synergies across the customer experience ecosystem. We believe the only way to achieve this is a customer-obsessed operating model that will permeate throughout your business and focus on six elements: structure, talent, culture, metrics, processes, and technology.

Here are three things you can do in 2016 to win at driving digital:

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OpenStack Pushes Local Stories In Tokyo

Paul Miller

I was in Tokyo last week, for the latest OpenStack Summit. Over 5,000 people joined me from around the world, to discuss this open source cloud project's latest - Liberty - release, to lay the groundwork for next year's Mitaka release, and to highlight stories of successful adoption.


Tokyo's Hamarikyu Gardens combine old with new (Source: Paul Miller)

And, unlike many events, this wasn't a hermetically sealed bubble of blandly anodyne mid-Atlantic content, served up to the same globe-trotting audience in characterless rooms that could so easily have been in London, Frankfurt, or Chicago. Instead, we heard from local implementers of OpenStack like Fujitsu, Yahoo! Japan, and - from just across the water - SK Telecom and Huawei. 

In keynotes, case studies, and deep-dive technical sessions, attendees learned what worked, debated where to go next, and considered the project's complicated relationship to containers, software-defined networks, the giants of the public cloud, and more.

My colleague, Lauren Nelson, and I have just published a Quick Take to capture some of our immediate impressions from the event. As our report discusses, the Foundation is making some good progress but there are a number of clear challenges that must still be addressed. How well do you think the Foundation is addressing the challenges we discuss?

Secure Your Applications NOW Because Something Wicked This Way Comes

Semantic Technology Is Not Only For Data Geeks

Michele Goetz

You can't bring up semantics without someone inserting an apology for the geekiness of the discussion. If you're a data person like me, geek away! But for everyone else, it's a topic best left alone. Well, like every geek, the semantic geeks now have their day — and may just rule the data world.

It begins with a seemingly innocent set of questions:

"Is there a better way to master my data?"

"Is there a better way to understand the data I have?"

"Is there a better way to bring data and content together?"

"Is there a better way to personalize data and insight to be relevant?"

Semantics discussions today are born out of the data chaos that our traditional data management and governance capabilities are struggling under. They're born out of the fact that even with the best big data technology and analytics being adopted, business stakeholder satisfaction with analytics has decreased by 21% from 2014 to 2015, according to Forrester's Global Business Technographics® Data And Analytics Survey, 2015. Innovative data architects and vendors realize that semantics is the key to bringing context and meaning to our information so we can extract those much-needed business insights, at scale, and more importantly, personalized. 

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Build More Effective Data Visualizations

Boris Evelson
Industry-renowned data visualization expert Edward Tufte once said: "The world is complex, dynamic, multidimensional; the paper is static, flat. How are we to represent the rich visual world of experience and measurement on mere flatland?" He's right: There's too much information out there for knowledge workers to effectively analyze — be they hands-on analysts, data scientists, or senior execs. More often than not, traditional tabular reports fail to paint the whole picture or, even worse, lead you to the wrong conclusion. AD&D pros should be aware that data visualization can help for a variety of reasons:
  • Visual information is more powerful than any other type of sensory input. Dr. John Medina asserts that vision trumps all other senses when it comes to processing information; we are incredible at remembering pictures. Pictures are also more efficient than text alone because our brain considers each word to be a very small picture and thus takes more time to process text. When we hear a piece of information, we remember 10% of it three days later; if we add a picture, we remember 65% of it. There are multiple explanations for these phenomena, including the fact that 80% to 90% of information received by the brain comes through the eyes, and about half of your brain function is dedicated directly or indirectly to processing vision.
  • We can't see patterns in numbers alone . . . Simply seeing numbers on a grid doesn't always give us the whole story — and it can even lead us to draw the wrong conclusion. Anscombe's quartet demonstrates this effectively; four groups of seemingly similar x/y coordinates reveal very different patterns when represented in a graph.
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AT&T Delivers Its Network On Demand

Dan Bieler

I believe that network-as-a-service-type offerings — where customers can control the provisioning and characteristics of their network transport services — will have a long-term impact on those enterprises undertaking digital transformation. Businesses that fail to recognize the significance of quality network infrastructure will undermine their digital business strategy. Secure, stable network connectivity is a prerequisite for using cloud, mobile, big data, and Internet-of-Things (IoT) solutions. As the business technology (BT) agenda gains momentum, CIOs are looking to technologies like virtualization and cloud that create agility by dynamically responding to business conditions. Network infrastructure has been a laggard on this score — until now.

AT&T has unveiled its solution, Network on Demand. It’s the basis for a new category of services aligned with customer requirements, including self-service access, control, and configuration of network bandwidth and features like security, routing, and load balancing. Network on Demand:

  • Gives customers control of network services. Network on Demand offers a completely different customer experience regarding network provisioning. Near-real-time provisioning via a self-service portal makes the customer’s network responsive to business needs.
  • Is a real game changer in the realm of connectivity solutions. As on-demand networks take off, products have the potential to become features on an access pipe that customers can turn on and off rather than remaining standalone "silo production".
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Why IBM Bought The Weather Channel: My Quick Thoughts

Ted Schadler

Today, IBM "has entered into a definitive agreement to acquire The Weather Company’s B2B, mobile and cloud-based web properties, including WSI, weather.com, Weather Underground and The Weather Company brand." This deal does not include The Weather Channel programming.

I spent my early cable TV years watching Jim Cantore and his colleagues tell us which storm was about to slam us. We watched while those cheery commentators predicted a massive Nor'easter in Baltimore on my wedding day in January 1996. Oh boy did we get that storm. The city shut down for almost a week. (We just kept the party going.)

So why did IBM do this deal? In a conversations with IBM's Bob Picciano and TWC CEO David Kenny, it became clear that three things drove this deal:

  • Massive amounts of atmospheric data. Digital weather is the most important exogenous data source on the planet. Weather sets the mood of the nation and all us citizens. If you want insight into people's actions, the  global supply chain, and myriad risks and opportunities, forecast the weather. TWC already handles 26 billion API calls for this data each and every day.
  • A powerful data ingestion platform. TWC ingests 40 terabytes of every day, maybe 15 times more data than even Google. TWC's data from sensors, cameras, satellites, radar, and 150,00 citizen meteorologists is the largest source of crowdsourced and engineered environmental data on the planet. 
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Digital Experience Software: Best-Of-Breed or Suite? Yes.

Mark Grannan

by Mark Grannan and Ted Schadler (click to see his post)

The market for digital experience software is rapidly expanding -- as in thousands of vendors in the market – and it’s also converging on a core set of six core capabilities led by content, customer data, marketing, and commerce.

We call this convergence a digital experience platform: software to manage, deliver, and optimize experiences consistently across every digital touchpoint. The cloud, RESTful integration, the relentless demands of digital customers -- and the very high cost of product integration -- are driving this convergence.

So should enterprise organizations take a best-of-breed or suite approach for digital customer experience (DX) software? The answer is, at least for now, “yes.” Or rather, it depends on your specific needs.

In our second round of the Digital Experience Platform Wave, completed in Q4 2015, we sharpened our criteria around both core capabilities and portfolio integration and extensibility.

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Digital Experience Software: The Next Major Packaged Software Market

Ted Schadler
by Ted Schadler and Mark Grannan (click to see his post)
 
It happened with ERP in the 90’s. It happened with CRM in the 2000’s. It’s happening now with the digital experience software to serve up content and interactions on every screen along every step of a customer's digital journey. 
 
This highly fragmented and factured market -- amusingly and powerfully captured in Scott Brinker's chaos of vendor logos -- is starting to to converge and consolidate as major software vendors like Adobe, IBM, Oracle, SAP, and Salesforce as well as smaller vendors including Acquia, Demandware, EPiServer, SDL, and Sitecore build or buy the building blocks of a great digital experience. We just evaluated these vendors' digital experience platform portfolio in our Forrester Wave(tm): Digital Experience Platforms, Q4 2015.
 
Four forces are driving the convergence. 
  • First, digital consumers and business customers need consistent experiences across every channel, screen, and step in their journey. No more passoffs from marketing to commerce to service to loyalty. No more fractured experiences between online and offline channels. No more clunky mobile adaptations.
  • Second, content, customer, and analytics are core assets that span every product category. They are shared assets delivered as software components, no longer bound up in the delivery software.
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