Here Comes The Open Web — Embrace It

Jeffrey Hammond

One of the things I enjoy the most about being an industry analyst is that I've spent the past six years meeting some great developers. Personally, I’m not sure I could cover any other technology area then application development. The reason is simple: I see developers as a worldwide force for good (It's almost axiomatic, as the bad apples become "hackers"). Developers innovate, they create, they push technology forward — and they are fun to go have a beer with at the end of the day.

While writing for developers is fun, it’s not always easy. For the past few years, my topic coverage areas have sometimes felt a bit disjointed — almost as if there are two different developer communities out there that I deal with. In the past, I've referred to these groups as the "inside the firewall crowd" and the "outside the firewall crowd." The inquiries I have with the first group are fairly conventional — they segment as .NET or Java development shops, they use app servers and RDBMSes, and they worry about security and governance. Inquiries with the second group are very different — these developers are multilingual, hold very few alliances to vendors, tend to be younger, and embrace open source and open communities as a way to get almost everything done. The first group thinks web services are done with SOAP; the second does them with REST and JSON. The first group thinks MVC, the second thinks "pipes and filters" and eventing. I could go on and on with the comparison.

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Is Software Pricing A Science Or An Art?

Mark Bartrick

I’ve been with Forrester for just over a month now. It’s great to be involved with our clients and communities and to be helping businesses across the world evaluate the quality of software suppliers' proposals from a commercial perspective (e.g., is this a great deal or can the supplier do better?). One of the best parts of being at Forrester now is seeing the continuation of the work I did prior to joining Forrester — advising businesses on software contract and pricing negotiations. One thing I noticed then, and continue to hear about now, is the reluctance of software suppliers like IBM, BMC, CA, and Compuware to publish meaningful list prices or to explain how their price book worked or how discounts had been determined. Time and again I had to ask suppliers to un-bundle prices and confirm the basis for the net prices they were proposing. Does anyone else agree with me that pricing should be clear and transparent and not a black art?  

Here’s an example of an “art” that should be science: list pricing. While it’s logical to think list pricing is the same foundation upon which all bids are built, that’s actually not the case. Often, I found that my clients were being quoted “list pricing” that was different. Isn’t list pricing supposed to be the same by definition? Which is why you may with good reason doubt the validity of a list price or the competitiveness of a discount that you’re being offered by a software supplier. It’s why I love my work, and why you should make sure you get third-party validation of your deals.

How you do validate your software vendors’ list pricing and proposed discounts?

An Investment Strategy Checklist For RIM's New CEO, Thorsten Heins

Ted Schadler

RIM co-CEOs Jim Balsillie and Mike Lazaridis have stepped aside to let a new leader pilot RIM through the straits. Thorsten Heins, a hardware executive from Siemens, has been COO for about a year now. Welcome, Mr. Heins, to a rough sea and dark night. But there is light in the depths of the hold. (Okay, enough ship references. Down to business.)

Here's the straight story: RIM has been focused on the wrong assets for the past three years, competing in a consumer market against the most powerful consumer brands in the world and suffering from tablet night terrors. It's not working. Forrester's data is clear: Based on a survey of 5,000 US information workers in May 2011, RIM's share of employee smartphones has dropped from around 90% to only 42% in the US in the past three years. Apple and Android together now have 48% of that installed base.

Stop fighting the consumerization battle. Fight a battle that takes advantage of what made RIM a fabulous company in the first place: its secure data delivery network. Here's the differentiated asset analysis:

With this analysis in hand, the challenge and the opportunity become clear. It's the business and government IT relationships and the RIM secure global data network that differentiate RIM products and services, not the consumer market demand. No other mobile supplier in the market has foreign governments asking for access to its data network in the interest of their national security. (That government interest is a good thing -- it signals just how potent RIM's network is.)

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You Think Changing To Increase Business Agility Is Hard? If IOR Did It, Believe Me: You Can Do It Too

Diego Lo Giudice

Think of a medieval fortress: It was originally used for a small army, it has walls nine meters thick, and it’s surrounded by buildings hundreds of years old. Upon entering, you are confronted with the concept of eternity.

This fortress is located in the smallest state on earth — though it is also perhaps the best-known state in the world. The business housed within the fortress is what many might classify as a SME but with with complexity of a large enterprise, holy but busy, centralized but truly global — its work spans hundreds of countries with hundreds of currencies and hundreds of languages — and it serves very special and demanding clients.

Have a clue yet of where we are?

Zoom on Italy, then zoom on Rome, then zoom on Vatican City, and you can’t miss the round tower (Torrione Sisto V) where the Vatican Bank, or Istituto per le Opere di Religione (IOR ), is located. You won’t be allowed in if you are not a client, an employee, or part of a religious congregation. Change comes hard to institutions this steeped in tradition. To give you a clue, IOR’s previous managing director spent his entire career at IOR — 60 years — and retired at the age of 80. We all know it’s the soft and cultural aspects of transformation that are the hardest part for any organization.

Nevertheless, IOR has been going through a major change since 2008, working to replace its legacy IT system with a modern BT one. The new BT system brings more flexibility for the business, richer business functionality, and greater integration and development capabilities. Enabling fast change is the key driver for IOR’s IT transformation program from IT into BT.

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Customer Service: Out With The Old . . . And In With The New

Kate Leggett

Customers dream about personalized, contextual, proactive customer service experiences — where companies deliver an experience tailored to their persona, their past purchase history, and their past customer service history. They want each interaction to add value and build upon prior ones so that they don’t have to repeat themselves and restart the discovery process. They want to be able to choose the communication channel and device they use to interact with a service center. They want to start an interaction on one channel or device and move it seamlessly to another. Check out RightNow’s vision video that brings these points to life.

Most customer service organizations are still struggling with the basics — the hygiene factors in Maslow’s hierarchy of needs — in meeting their customers’ expectations. There are benchmarking tools that you can use to figure out how well your organization is doing and to get actionable recommendations on how to do better. But, as you focus on the tactical improvements that you need to make this year, it’s important to keep tabs on the optimal experience that customers would like you to deliver to help shape your long-term direction for customer service. Here’s my abbreviated personal list:

Out with the old . . .

. . . and in with the new

Commentary

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2011 Retrospective – The Best And The Worst Of The Technology World

Richard Fichera

OK, it’s time to stretch the 2012 writing muscles, and what better way to do it than with the time honored “retrospective” format. But rather than try and itemize all the news and come up with a list of maybe a dozen or more interesting things, I decided instead to pick the best and the worst – events and developments that show the amazing range of the technology business, its potentials and its daily frustrations. So, drum roll, please. My personal nomination for the best and worst of the year (along with a special extra bonus category) are:

The Best – IBM Watson stomps the world’s best human players in Jeopardy. In early 2011, IBM put its latest deep computing project, Watson, up against some of the best players in the world in a game of Jeopardy. Watson, consisting of hundreds of IBM Power CPUs, gazillions of bytes of memory and storage, and arguably the most sophisticated rules engine and natural language recognition capability ever developed, won hands down. If you haven’t seen the videos of this event, you should – seeing the IBM system fluidly answer very tricky questions is amazing. There is no sense that it is parsing the question and then sorting through 200 – 300 million pages of data per second in the background as it assembles its answers. This is truly the computer industry at its best. IBM lived up to its brand image as the oldest and strongest technology company and showed us a potential for integrating computers into untapped new potential solutions. Since the Jeopardy event, IBM has been working on commercializing Watson with an eye toward delivering domain-specific expert advisors. I recently listened to a presentation by a doctor participating in the trials of a Watson medical assistant, and the results were startling in terms of the potential to assist medical professionals in diagnostic procedures.

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Do sGovernment And fGovernment Get A “Like”?

Jennifer Belissent

The word is that promise of sCommerce (social commerce) and fCommerce (Facebook commerce) is more speculative than proven. What about the role of social media in government and governance? Mayors, other city leaders, and local organizations increasingly communicate and interact with their constituents via social media.

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Planning For Failure, Personal Edition -- Strategies To Protect Yourself In 2012

Rick Holland

This week I did a webcast, Planning for Failure, which makes the assumption that if you haven't been breached, it is inevitable, and you must be able to quickly detect and respond to incidents.  An effective response can be the difference between your organization's recovery and future success or irreparable damage.  While I was working on the slides for the webcast, I started to reflect back on the 2011 security breaches that personally impacted me.   Three breaches immediately came to mind:

  1. Texas Teacher Retirement System -  My personal data was stored unencrypted on a public server
  2. Epsilon - Email compromise that resulted in increased phishing attempts
  3. STRATFOR - My personal information, credit card and password hash were stolen
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Herculean Buyers, Lions, And Hydra — Do You Want One Throat To Choke, Or Reps That Understand The Products They’re Selling?

Duncan Jones

The proposed acquisitions of SuccessFactors by SAP, and of Emptoris by IBM got me thinking about the impact on buyers of market consolidation, in respect of the difference between dealing with independent specialists versus technology giants selling a large portfolio of products and services. Sourcing professionals talk about wanting “one throat to choke,” but personally I’ve never met one with hands big enough to get round the neck of a huge vendor such as IBM or Oracle. Moreover, many of the giants organize their sales teams by product line, to ensure they fully understand the product they are selling, rather than giving customers one account manager for the whole portfolio who may not understand any of it in sufficient depth. Our clients complain about having to deal with just as many reps as before the acquisitions. They all now have the same logo on their business card, but can’t fix problems outside their area, nor negotiate based on the complete relationship. It seems that buyers end up like Hercules, wrestling either with a Nemean lion   or with a Lernaean hydra.

The acquirers' press releases tend to take it for granted that customers will be better off with the one-stop shop. Bill McDermott, co-CEO of SAP, said, “Together, SAP and SuccessFactors will create tremendous business value for customers.” While Lars Dalgaard, founder and CEO of SuccessFactors, talks about “expanding relationships with SAP’s 176,000 customers.” Craig Hayman, general manager of industry solutions at IBM, said, “Adding Emptoris strengthens the comprehensive capabilities we deliver and enables IBM to meet the specific needs of chief procurement officers."

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Virtualization Security, Better Late Than Never

Rick Holland

I am excited to announce my latest research, The CISO's Guide To Virtualization Security. This is the first report in a new series focusing on securing virtual environments.  The reduced costs and flexibility of virtualization have led to widespread adoption of the technology.  Despite this adoption, security and risk professionals haven't given their virtual environments the attention that is required.  Our research interviews revealed several themes:

  • Business as usual is the status quo. IT departments rely upon traditional security solutions (end point and network security) to secure their virtual environments.  Depending on the network architecture, virtualization can create blind spots in your network leaving you blind to intra-virtual-machine (VM) communication. 
  • Many security pros aren't aware of the virtualization aware solutions available on the market. One CISO we spoke with wasn't aware that his organization's current antivirus vendor offered a virtualization aware solution.  This isn't necessarily surprising; many of the virtualization aware security solutions are relatively new to the market.  Virtualization aware solutions afford us the ability to have potentially greater visibility into workloads than we might have in our traditional physical environment.
  • Many security pros have a general discomfort with virtualization. Security pros, especially CISOs and other security leaders who have risen up the technical ranks, aren't as confident in their virtualization knowledge as they would like to be. This is particularly the case when we compare virtualization with more mature security areas, such as network security.
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