A Letter To Meg Whitman From The Market

Glenn O'Donnell

Dear Meg,

Now that you’ve settled into your latest position as the head of Hewlett-Packard, we wish to make a request of you. That request is, “Please take HP back to the greatness it once represented.” The culture once known as “The HP Way” has gone astray and the people have suffered as a result. Those people are of course the vast collection of incredible HP employees, but also its even vaster collection of customers. They (ahem, we) once believed in the venerable enterprise that Bill Hewlett and David Packard conceived and built through the latter half of the 20th century.

HP became renowned for its innovation and the quality of its products. While they tended to be pricey, we bought HP products because we knew they would perform well and perform long. We could count on HP to not only sell us technology, but to guide us in our journey to use this technology for the betterment of our own lives. We yearn for the old HP that inspired Steve Jobs to change the world – and he did!

We need not remind you of what transpired over the past decade or so, but we do have some suggestions for what you should address to restore the luster of HP’s golden age:

  • Commit to a mission. HP needs an audacious mission that articulates a purpose for every employee, from you and the HP board all the way down to the lowest levels. Borrow a page from IBM’s Smarter Planet mission. While it sometimes seems over the top, that’s the whole point. It is over the top and speaks to a bold mission to create a new world. Slowly but surely, IBM is making the planet smarter. Steve Jobs got Apple to convince us to Think Different, and we did. What is HP’s mission?
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Edmonton Offers Urban Planning Classes: Opportunities To Take Citizen Engagement To The Next Level

Jennifer Belissent, Ph.D.

I love the idea of the Edmonton’s Planning Academy, which offers planning courses to anyone in the city.  What a great way to get citizens involved in the complex challenges of city planning!  It made me want to live in Edmonton.  OK, so maybe I’m kind of addicted to school, and taking classes (corporate learning programs, continuing studies programs and even the Red Cross have seen me in their classrooms in recent years).  But really, this one looks so cool I had to write about it. 

The City of Edmonton’s Planning Academy’s goal is to “provide a better understanding of the planning and development process in Edmonton.”  And, it grants a Certificate of Participation following completion of the three core courses and one elective.  These three core courses include:

  • Use Planning: The Big Picture.
  • Getting a Grip on Land Use Planning.  
  • Come Plan with Us: Using Your Voice.

And, the elective course options include:

  • Transportation.
  • Urban Design.
  • Transit Oriented Development.
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HP Embraces Calxeda ARM Architecture With "Project Moonshot" - New Hyperscale Business Unit Program

Richard Fichera

What's the Big Deal?

Emerging ARM server Calxeda has been hinting for some time that they had a significant partnership announcement in the works, and while we didn’t necessarily not believe them, we hear a lot of claims from startups telling us to “stay tuned” for something big. Sometimes they pan out, sometimes they simply go away. But this morning Calxeda surpassed our expectations by unveiling just one major systems partner – but it just happens to be Hewlett Packard, which dominates the WW market for x86 servers.

At its core (unintended but not bad pun), the HP Hyperscale business unit Project Moonshot and Calxeda’s server technology are about improving the efficiency of web and cloud workloads, and promises improvements in excess of 90% in power efficiency and similar improvements in physical density compared with current x86 solutions. As I noted in my first post on ARM servers and other documents, even if these estimates turn out to be exaggerated, there is still a generous window within which to do much, much, better than current technologies. And workloads (such as memcache, Hadoop, static web servers) will be selected for their fit to this new platform, so the workloads that run on these new platforms will potentially come close to the cases quoted by HP and Calxeda.

The Program And New HP Business Unit

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Technology Is Everywhere — Are You Paying Attention?

Brian  Hopkins

We are currently in a technology growth cycle, which is likely to continue for another five to seven years.* The opportunities presented by the likes of cloud, mobile, social, and big data are abundant. I'm wondering if EAs are overly focused on consolidation, simplification, and cost control, which could lead to missing the boat. Alternatively, companies may just leave EA behind as they sail to newer, profitable waters.

In Forrester's September 2011 Global State Of Enterprise Architecture Online Survey, we asked architects to prioritize the following challenges, and here is what we found:

 EA Survey Results

While 37% of firms told us that improving how their firms identify and integrate new/disruptive technology was high priority, it was a substantially smaller percentage than the other nine challenges we asked about. Compare this to: 1) a similar CIO survey that ranked business technology innovation as the top priority, and 2) another EA survey question indicating that "using technology to increase business competitiveness" was the number three IT driver for EA programs.

My concern is that other things may be distracting EA attention away from the opportunities that abound in this growth cycle. Consider:

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What Is The State Of Your Consumer-Facing Mobile Initiatives?

Jeffrey Hammond

My colleague Julie Ask is fielding a survey that asks a number of questions about your company's consumer-facing mobile strategy. If you have a few minutes to spare, please take the survey to answer her questions and help us out with some in-process mobile research.

Here's the link to the survey.

 

Thanks!

 

Jeffrey

Key Areas To Consider In SaaS Contract Negotiation

Liz Herbert

With the Sourcing and Vendor Management Forums coming up next week in Miami and at the end of the month in London, our team is busy finalizing content and rehearsing sessions. Personally the hottest question I have continued to get since the keynote I did last year on SaaS sourcing is the question of SaaS pricing and contract negotiation. So, what can you expect in the track session “Negotiating Cloud Pricing and Contracts” for those of you who can join us?

New data from the Q3 2011 services survey showing:

  1. SaaS is disrupting spend on traditional services. Nearly half of the firms we surveyed say that “as-a-service” spending has reduced spending on traditional on-premises IT spend. And, these firms also say that it will have a noticeable disruptive impact. Out of the firms who say “as-a-service” spending will reduce spending on traditional spend, 30% say this disruption will be 6% or more.   
  2. SaaS adoption has expanded into IT applications and industry-specific applications. Firms are now using SaaS for an increasingly wide range of solutions: horizontal applications like CRM and HR and collaboration applications like email still dominate the trend but now 13% of firms use SaaS for IT software such as asset management and 10% of firms use SaaS for industry-specific solutions such as insurance claims management.
  3. Firms are centralizing their approach to SaaS sourcing and vendor management. The recently gathered data shows a strong trend towards centralized SaaS strategy and formal multi-year plans around SaaS. Not surprisingly, this data also shows that firms expect to see a decrease in unsanctioned, business-led buying.  
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Nokia World 2011: Back From The Brink But Not Yet Fully Out Of The Woods

Dan Bieler

Dan Bieler and Katyayan Gupta

This was possibly the most important Nokia World event ever. Nokia had to demonstrate that it can deliver against its plans. In February 2011, Nokia communicated its intention to team up with Microsoft to develop its new platform and to “entrust” its Symbian operating system to Accenture. In total, 3,000 visitors from 70 countries attended Nokia World 2011 in London to hear and see what the “new Nokia” looks like.

In essence, it was clear what Nokia World 2011 would be all about before the actual event had even started. Nokia had to produce a device that can take on the iPhone and the Galaxy. At the event, Nokia announced the launch of the first “real Windows phone” in the form of the Lumia 800. The result is an impressive device that certainly secured Nokia a seat at the table of the tripartite of leading smartphones platforms.

At a price point of €420, the Lumia 800 impresses through a very intuitive and refreshing interface. And yes, the choice of Microsoft as a partner has certainly produced the best ever Nokia device. It will give Apple and Samsung a run for their money. It was all the more noticeable that Microsoft was absent during the key note address. Nokia also unveiled its emerging market flagship "Asha" device series, which sits somewhere between feature and smartphones. The Asha family comprises four models that target the youth segment in emerging markets. These devices are priced between €60 to €115, feature touch and QWERTY, games like Angry Birds, and one of them is also dual SIM.

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Mobile Enablement Means Access

Christian Kane

Music is a very important part of my life. At home I've always got something playing on the sound system, I never go anywhere without headphones, and my music collection takes up more space in my house (not to mention on my computer) than anything else. That's why on a recent trip up to Maine – a 4.5 hour ride from Boston – the first thing I did to prepare was make sure I had my phone for music on the drive, without which I'd be stuck with the radio. Having to listen to the same 40 songs for four and a half hours is something that could easily give me nightmares but it got me thinking about how much choice matters.

Ten years ago I would have been happy enough with just the radio. Then came Napster and the iPod and my world changed. I became aware the technology existed which meant I knew there was a better alternative to the radio. What's more, I was excited about it. I wanted to use my iPod and put new music on it. The product engaged me as it had engaged everyone around me. I think that correlates with what we're seeing today in firms across all industries where employees have long been locked into aging technology – which often doesn't do everything they need it to – by lack of choice.

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Sprint’s Headache Equals Deutsche Telekom’s Migraine

Dan Bieler

In recent weeks, Sprint’s shares have been hammered. The share price has fallen by 40% since the beginning of the year, reflecting investors’ concerns about the long-term position of Sprint in the US wireless market. Not surprisingly, Sprint has been the most vocal opponent of the planned $39B acquisition of T-Mobile US by AT&T, which was announced in March 2011. Sprint argues that the deal would manifest itself in a loss of competition in the US wireless market if the fourth- and second-largest wireless carriers in the US merge (Sprint is No. 3). The US Department of Justice (DoJ) seems to share this concern and blocked the acquisition in August 2011 in order to preserve a vibrant and competitive marketplace.

Despite the DoJ’s opposition, most observers expected some form of compromise to emerge, even if it took a court fight to do so. Both AT&T and Deutsche Telekom (DT) reiterated their eagerness to pursue the deal as the DoJ announced its decision. However, in our view, Sprint’s challenging situation increases the likelihood that the deal will not go through as planned: Sprint looks weaker now than several months ago. Its announcement in October 2011 that it will take on additional debt to fund the rollout of its LTE network only increases liquidity concerns. This will sway the DOJ’s position further toward rejecting the deal for good in an effort to support a healthy US wireless market.

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The Strategy Of Consumerization Was One Factor In HP's Decision To Keep PSG

Frank Gillett

HP made the right decision today to keep the Personal Systems Group. Beyond the reasons cited, supply chain and sales synergy and expense of spinning out, it's also crucial for HP to remain in the market for personal devices, which is entering a period of radical transformation and opportunity. The innovations spawned first by RIM with the BlackBerry, followed by the transformative effects of Apple's iPhone and iPad are beginning to ripple into the PC market. Apple's MacBook Air and Lion operating system, combined with Microsoft's Metro interface for Windows 8 herald the beginning of a transformation of personal computing devices. By keeping PSG, HP has the opportunity to innovate and differentiate in the PC market that will move away from commodity patterns.

For vendor strategists at vendors of all sizes, one of the lessons of HP's decision is that consumer businesses are becoming more relevant to succeeding in commercial products for end users. During the announcement call today, CEO Meg Whitman talked about the importance of "consumerization" in winning business from enterprises. I heartily endorse that view and look forward to sharing a report soon on how consumerization is changing commercial product development.

Do you think consumerization was a part of why HP kept PCs?

What effect do you think consumerization will have in IT markets?

Respond here: http://community.forrester.com/thread/5789