HP And Cisco Bury The Hatchet To Accommodate Customers – Everyone Wins?

Richard Fichera

In a surprising move, HP and Cisco announced that HP will be reselling a custom-developed Cisco Nexus switch, the “Cisco Nexus B22 Fabric Extender for HP,” commonly called a FEX in Cisco speak. What is surprising about this is that the FEX is a key component of Cisco’s Nexus switch technology as well as an integral component of Cisco’s UCS server product, the introduction of which has pitted the two companies in direct and bitter competition in the heart of HP’s previously sacrosanct server segment. Combined with HP’s increasing focus on networking, the companies have not been the best of buds for the past couple of years. Accordingly, this announcement really makes us sit up and take notice.

So what drove this seeming rapprochement? The coined word “coopetition” lacks the flavor of the German “Realpolitik,” but the essence is the same – both sides profit from accommodating a real demand from customers for Cisco network technology in HP BladeSystem servers. And like the best of deals, both sides walk away thinking that they got the best of the other. HP answers the demands of what is probably a sizable fraction of their customer base for better interoperability with Cisco Nexus-based networks, and in doing so expects to head off customer defections to Cisco UCS servers. Cisco gets both money (the B22 starts at around $10,000 per module and most HP BladeSystem customers who use it will probably buy at least two per enclosure, so making a rough guess at OEM pricing, Cisco is going to make as much as $8,000 to $10,000 per chassis from HP BladeSystems that use the B22) from the sale of the Cisco-branded modules as well as exposure of Cisco technology to HP customers, with the hope that they will consider UCS for future requirements.

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Keeping The Lights On Keeps Decision-Makers Awake: OBS Can Help Them Rest More Easily

Jennifer Belissent, Ph.D.

Business continuity is a top concern of global business and IT decision-makers. Headline news has made these concerns all the more acute – from the political unrest that characterized the “Arab Spring” and continues to plague certain countries in the Middle East to earthquakes, flooding, and other natural disasters across the globe. Those concerns become more acute as multinationals expand into new geographies such as Africa – a trend evidenced by recent announcements by HP and IBM.

Forrester’s Forrsights Budgets and Priorities Tracker Survey and Forrsights Business Decision-Makers Survey confirm that both IT and business decision-makers prioritize business continuity to ensure ongoing operations of their businesses. “Significantly upgrading disaster recovery and business continuity” was the third-highest IT priority of both IT and business decision-makers with 68% of each reporting it as a critical or high priority, behind only consolidation and greater use of analytics. That is to say, although cost controls through consolidation and better business intelligence came out ahead, keeping the lights on keeps corporate leaders up at night.

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Will Oracle Listen To The External Keynoters At Oracle Openworld And Help Customers Cut Their Maintenance Costs?

Duncan Jones

I’ve just returned home from San Francisco where I was attending the Oracle Openworld 2011 (#OOW11) event. Overall it's a good event, although, as usual, a bit frustrating. Instead of examples of how customers are using its products to transform their businesses, the Oracle keynotes always descend into technical detail, with too little vision and too many unimpressive product demonstrations and ‘paid programming’ infomercials (if I had wanted to listen to Cisco, Dell, and EMC plugging their products, I’d have gone to their events).

When, a month ago, I accepted Oracle’s invitation to attend #OOW11, I thought I’d be able to escape the oncoming British autumn for some California sunshine and watch some Redsox playoffs games on TV. Well not only did the Sox’s form plummet in September like a stock market index, but Northern California turned out to be 20° colder than London. But despite that, and the all-day Sunday trip to get to the event, one can’t help being impressed by the attendee buzz and by the logistical achievement, with over 45,000 attendees accommodated around the Bay Area and bussed in and out every day to the conference location. Luckily, Oracle looks after its analyst guests very well, so we were within walking distance at the excellent Intercontinental Hotel.

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Agile Software Is A Cop-Out; Here’s What’s Next

Mike Gualtieri

Never has a new trend annoyed me as much as Agile. Right from the get-go, the Agile Manifesto revealed the weaknesses and immaturity of the founding principles. The two most disturbing: “Working software is the primary measure of progress” and “Business people and developers must work together daily throughout the project.” These are

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The Top Technology Trends For The Next Three Years

Brian  Hopkins

We just released our 2011 update to last year’s EA top trends report, The Top 15 Technology Trends EA Should Watch: 2011 To 2013. In 2011, we have expanded our coverage by releasing two documents of 10 trends each:

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You Need To Act More Like An Interactive Agency…

Kyle McNabb

Two weeks have passed since our successful AD&D and BP Forums in Boston. I’m still struck by conversations we held there and continue to hold now with many of you on how your teams can help deliver to your firm’s ever-important customer experience outcomes. Following one tip can help you either get ahead of this issue or catch up to the expectations of your stakeholders…act more like an interactive agency!

Note I didn’t say “transform” into an interactive agency. No, at the end of the day you have responsibilities to your organization the agencies your business peers use often don’t – you have to manage, operate, and maintain what’s been delivered. What I did say was “act” like one, and in doing so you’ll need to:

  1. Revisit your talent. For those of you that haven’t outsourced big portions of development, make sure you have great, creative developers, build a high-performance development team, and up-skill your business analysts by putting personas and customer journey maps into their tool kit. Why? The agencies your peers use have and cultivate these skills. At minimum, you'll be in a better position to manage and maintain what they’ve put in place if you have complementary skills of your own. If you have outsourced development, we can help you make the case to bring back the right pieces.
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Are Your Risk Management Efforts Enabling Partnership Opportunities?

Chris McClean

Forrester's Security and Risk Management clients often describe the frustration they feel when they are not included in important initiatives until after decisions have been made. Lately, this situation has been especially pronounced among decisions to enter partnership agreements based on service, performance, and cost considerations... with risk management only brought in later to identify and mitigate potential points of exposure.

At the same time, Forrester's Sourcing and Vendor Management professionals find themselves facing their own challenges when it comes to managing the risk of partner relationships. In a Q3, 2011 suvey of 575 Sourcing and Vendor Management professionals, top concerns related at "X-as-a-service" relationships included the lack of recourse if a vendor fails or goes out of business, the lack of a clear way to assess risk of a third party, and inability to manage how providers are handling data. ( Source: Forrsights Services Survey, Q3 2011)

In order to bridge this gap, Security and Risk Management professionals need to deliver a streamlined way to insert risk identification, analysis, and evaluation steps within their organization's existing vendor management lifecycle. Forrester customers who have taken this approach - for example, by introducing short, 10-15 question surveys to determine whether more detailed vendor risk assessments are warranted - report better oversight of vendor risk and better involvement in the decision making process. In some cases, Security and Risk Management professionals have even reported casting a decisive thumbs-down vote to block a new vendor contract because it represents unacceptable risk.

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End User Computing Predictions for 2012: Civil Disobedience Escalates - Part 1

David Johnson

Sedition is simmering in the halls of corporations the world over, as the thirst for productivity and new tools grows faster than IT organizations can quench it with supply. 2012 promises to be the most transformative year for end user computing since the release of the IBM PC in 1981. The escalation of 4 trends - each individually interesting but together explosive, will bring phase changes in the way Highly Empowered and Resourceful Operatives work, and offer previously captive employees new options for productive freedom by this time next year.

  1. As in IT revolutions past, on the front lines are restless high-performers (executives, technology pros and creatives), whose nature drives them to push the limits of themselves, their tools, and their support networks, and bring their own technology to the office when their employers won't provide it. More employees will bring their own computer to the office than ever before in 2012 - most of them Macs - and if IT won't support them, they'll find another way that doesn't include IT.
  2. Cloud-based applications and services such as Dropbox and Projectplace are convincing these folks that they can get better results faster, without IT involved. And these services are priced at a point where it's cheaper than a few skinny soy chai lattes (no whip!) every week, so many employees just pay the tab themselves.
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Netflix Revises Strategy ..... Again!

Nigel Fenwick

Netflix has come to its senses and revised its strategy in favor of the customer. After a recently announced decision to split out its DVD business from its streaming business, Netflix received a barrage of criticism from customers -- including my last blog post, where I questioned the wisdom of this strategy. Today, CEO Reed Hastings announced a 180-degree about turn -- well done Mr. Hastings. While it would surely have been wiser to have made a better strategic decision in the first place, changing course in face of customer criticism at least shows Netflix is still willing to put its customers first.

This turn of events highlights the difficulty of getting strategic planning right. While abstract analysis of strategic options may point to an optimal choice for any set of circumstances, any strategic analysis which ignores customer impact is fatally flawed. As my colleague Luca Paderni and I pointed out in our recent keynote at the Forrester CIO-CMO Forum, companies must become customer obsessed. Indeed, we highlighted Netflix as an example of a company that had succeeded in large part because it was customer obsessed and had mastered the customer data flow in a way that increased customer value.

There is a lesson here for us all ... success in the future will go to those companies willing to become customer obsessed and put the customer ahead of Wall Street.

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Will The Bring-Your-Own-Device Phenomenon Help Propel Desktop Virtualization?

Bill Martorelli

I recently appeared on CIO Talk Radio to discuss the growing challenge brought by increased diversity of computing devices in the workplace and the bring-your-own-device (BYOD) trend. There is no question that customers are increasingly embracing their own technology in the workplace, and in many cases believe the technology they themselves own is superior to that provided by their employers. The tablet computer is certainly one big part of this, and the ultimate impact may be as disruptive as that brought by the original PC.

IT executives like Steve Phillips, Senior Vice President and Chief Information Office of Avnet, my co-panelist on the CIO Radio broadcast, are beginning to see that desktop virtualization provides a potentially useful means to separate the realm of the corporate environment from the private world of the device user in this increasingly diverse environment. Outsourcing suppliers are definitely seeing this trend. They are gearing up for the potentially significant opportunity by running pilots and helping customers implement desktop scenarios, although with some differences from the past: For one thing, a focus on a more selective tiered approach to desktop virtualization as opposed to a one-size-fits-all. That tendency, along with the accompanying high cost for bandwidth, were a stumbling point in the past, as well as several other factors described by my colleague Steven Johnson.

But what do you think? And if considering desktop virtualization, do you envision a role for service partners or will you go it alone?