How Consumerization Drives Innovation

Ted Schadler

Forrester has been analyzing the impact of consumerization of IT on business since this seminal 2008 report. And we've collected data to measure the phenomemon since 2009. Did you know that 35% of information workers use personal technology for work? And we published a Harvard Business Review Press book, Empowered, on why companies must empower their employees: it's so they can serve the needs of empowered customers.

And now we can directly link consumerization with business outcomes that IT and every other part of a business cares about: innovation, advocacy, and leadership. We've done this with a Q1 2011 survey of 5,102 information workers in North America and Europe, our Workforce Forrsights data.

The report, "How Consumerization Drives Innovation," is chock full of data available to Forrester customers. This post is an excerpt to introduce the outcomes and impact to everybody. We'll use three charts to make the point.

  • First is the consumerization data. Just how many information workers in North America and Europe do something with technology outside of IT control -- either bring their own smartphone or tablet for work, use unsanctioned Web sites for work, or download applications to a work computer? It's one in three!
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HP Versus Oracle -- From Ugly To Uglier As HP Takes To The Courts

Richard Fichera

On June 15, HP announced that it had filed suit against Oracle, saying in a statement:

“HP is seeking the court’s assistance to compel Oracle to:

  • Reverse its decision to discontinue all software development on the Itanium platform

  • Reaffirm its commitment to offer its product suite on HP platforms, including Itanium;

  • Immediately reset the Itanium core processor licensing factor consistent with the model prior to December 1, 2010 for RISC/EPIC systems

 HP also seeks:

  • Injunctive relief, including an order prohibiting Oracle from making false and misleading statements regarding the Itanium microprocessor or HP’s Itanium-based servers and remedying the harm caused by Oracle’s conduct.

  • Damages and fees and other standard remedies available in cases of this nature.”

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The New Power Of Sourcing And Vendor Management -- Reflected At Forrester's IT Forum

Christopher Andrews

After two weeks at Forrester’s IT Forums (in Las Vegas and Barcelona) the Sourcing and Vendor Management research team came back more energized than ever. Why? We were able to spend a week interacting with our clients, who all face diverse challenges, yet remain very optimistic about the strategic value they can provide to their IT and business counterparts. While it's an exhausting week for all of our analysts, we love this week (second only to our own team's Sourcing and Vendor Management Forum in November) because of the chance to interact with all of you.  

 Coming back from this conference, I realized a few key themes had dominated my conversations with clients:

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Forrester's Best Practice Framework For Customer Service

Kate Leggett

How do you know how well your customer service offering compares with best practices? How do you know what to do to differentiate yourself from your competitors? To answer this question, I put together a Best Practices Framework that you can use to assess your current capabilities. There’s an associated tool in the form of a Microsoft Excel spreadsheet that allows you to evaluate yourself against 150 best practices, organized in eight different categories grouped into the four dimensions of strategy, process, technology, and people. Here’s a quick synopsis of the eight categories:

Strategy

  • Customer service strategy. What is your customer service strategy across all the communication channels you use to interact with your customers and how does that strategy incorporate the voice of the customer (VoC)?
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Watch Out For A Potential Glut Of “Dark Cloud” IaaS

Andrew Bartels

Back during the dot.com boom years, existing telcos and dozens of new network operators, especially in western Europe and North America, laid vast amounts of fiber optic networks in anticipation of rapidly rising Internet usage and traffic. When the expected volumes of Internet usage failed to materialize, they did not turn on or “light up” most (some estimate 80% and even 90% on many routes) of this fiber network capacity. This unused capacity was called “dark fiber,” and it has only been in recent years that this dark fiber has been put to use.

I am seeing early signs of something similar in the build-out of infrastructure-as-a-service (IaaS) cloud offerings. Of course, the data centers of servers, storage devices, and networks that IaaS vendors need can scale up in a more linear fashion (add another rack of blade servers as needed to support an new client) than the all-or-nothing build-out of fiber optic networks, so the magnitude of “dark cloud” will never reach the magnitude of “dark fiber.” Nonetheless, if current trends continue and accelerate, there is a real potential for IaaS wannabes creating a glut of “dark cloud” capacity that exceeds actual demand, with resulting downward pressure on prices and shakeouts of unsuccessful IaaS providers.

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The Next Three Weeks Are Very Important To Microsoft, And That Gives Buyers Leverage

Duncan Jones

A couple of months ago I was blogging from sunny Barcelona with the Red Sox 0-6. Now I'm in Barcelona again for our IT Forum, but this month its raining heavily here, while back in UK we officially have a drought. But the good news is that Boston is 6-0,  at least in Yankee Stadium. A lot can change in two months.

The same is true in IT.  Just now, Microsoft faces threats to its strong market position from many directions, and Steve Ballmer is under pressure, but strong results for its June fourth quarter could deflect the flak. That's one reason why sales teams will have greater incentives than ever to close Enterprise Agreement deals in the next couple of weeks. Hopefully if you're negotiating an EA right now, whether a new deal or a renewal, you've read my report Consider These Five Criteria When Choosing A Microsoft Volume Licensing Program and maybe even had an inquiry call with my colleage Christopher Voce or me. One common question we get is whether the stated deadline to accept an offer is real, or will the same deals be available in the last days of the quarter or even in the subsequent months? The short answers are Yes, it is, and no, they won't." Microsoft has its own deal approval processes that take time to complete, and though it won't want to reject Purchase Orders, it may have problems processing them if they arrive too late.  And the deals available almost certainly wont be as good next quarter because sales teams will still have 9 months remaining in which to recoup any shortfall.

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Canadian ICT Market Will Be Similar To US In Growth Rates, But Differs In Product And Industry Mix

Andrew Bartels

On the same day that we published our latest forecast for the European ICT market, Forrester has also published our forecast for the Canadian tech market (see June 8, 2011,“The Canadian Tech Market 2011-2012 -- Different From US In Industry Mix of Purchases; Similar Growth Rates").   The following are my key takeaways from this report:

  • The Canadian market for purchases of information and communications technologies (ICT) by businesses and governments is about 10% the size of the US ICT market, and only about 3% of the global ICT market.  Still, it is an important market because of the sophisticated level of its tech adoption (i.e., its readiness to adopt advanced technologies) and its proximity to the US market.  
     
  • Canada's ICT market growth rates of 6.2% in 2011 and 2012 growth of 8.1% in Canadian dollars will be very similar to the US ICT market growth in US dollars in the same periods.  With the Canadian dollar having gained strength against the US dollar, that means that US vendors will see even stronger Canadian revenue growth when they convert their Canadian sales back into US dollars. 
     
  • Communications equipment and software will have the strongest growth in 2011, at 10.5% and 8.4%, respectively.  Computer equipment growth of 4.4% and telecommunications services growth of 2.2% will be the weakest product categories.
     
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RSA Breach: Two-Factor Authentication Is Not Dead But Is Morphing And Getting More Granular

Andras Cser

Many IT end-user companies deployed hard tokens at a time when intermediate-risk choices were thinner on the ground, and some of these companies would have benefited from a more granular approach anyway. In general, we are seeing companies moving towards risk-based authentication augmented by mobile soft tokens (sometimes called from a mobile application through an API). These software-only solutions are easier and cheaper to deploy, particularly if the target population is on smartphones, and a lot easier to patch in case of an attack. Interestingly, risk-based authentication is now asked about not only in the B2C context (which was a norm about a year ago), but also in the B2E context as well. Right now, end-user companies are thinking about:

  1. How they can ditch hardware tokens altogether; and
  2. How can they can move risk-based authentication, and increasingly authorization (fraud management), into the cloud.

IBM's Intelligent Operations Center for Smart Cities: Think Cities not just Departments.

Jennifer Belissent, Ph.D.

Government investment in ICT is growing. At Forrester we expect the overall government ICT budget to reach $346 billion in 2011, growing to $382 billion in 2012 or by about 10%.  That makes government one of the largest vertical industries – almost double the size of the retail industry, well above the telecom industry and actually behind only professional services and financial services.  As government soul searching intensifies in the wake of the financial crisis, and in light of global competition and economic recovery, we expect the dawn of a new government – not “big government” but a government that operates more effectively and certainly more efficiently.  What does that look like, and what does that entail?  We see three primary trends:

  • A move to greater performance management processes with an emphasis on KPIs for specific programs rather than just budget targets.
  • An increased dependence on technology but with an eye to rationalization and consolidation, and an increased role of a centralized CIO to coordinate technology adoption;
  • And, a growing adoption of enterprise management tools with visibility not only into department level programs but including executive dashboards to enable a holistic view of the government. 
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European ICT Market Will Grow More Slowly Than US Market, But With Wide Geographic Variances

Andrew Bartels

I am in Barcelona, Spain, at our IT Forum EMEA event, where my colleague Peter O'Neill and I presented our latest forecasts for the tech market in Western and Central Europe.  In parallel, Forrester has just published our report with this and much more information (see June 8, 2011, “European Information And Communications Technology Market 2011 To 2012 -- The North-South Divide Persists, With Wide Variations In Country Information And Communications Technology Growth”).  Here are the key conclusions that I would highlight from the report:

  • As a geographic unit, the market for business and government purchases of information and communications technologies (ICT) in Western and Central Europe will grow by 3.8% in 2011 (measured in euros), compared with 6.4% growth in the US (measured in US dollars).  Excluding slow-growing telecommunications services, the information technology (IT) market in Western and Central Europe will grow by 4.5% in euros vs. the 7.4% growth in US dollars in the US (see June 7, “European Information And Communications Technology Market 2011 To 2012 -- The North-South Divide Persists, With Wide Variations In Country Information And Communications Technology Growth”).
     
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