Observations From Brazil

Jennifer Belissent, Ph.D.

My first whirlwind trip to Brazil confirmed much of what I’d expected.  Brazil is booming.  Traffic in the cities is horrendous.  The buzz of helicopters in Sao Paulo is incessant.  And, there is huge opportunity for IT vendors and services providers.  But contrary to what I had expected, IT preparation for the upcoming mega-events seems to be getting off to a slow start. 

Several analysts from Forrester traveled to Brazil this week to participate in events sponsored by the Brazilian Chamber of E-Commerce, the Brazilian Association of Information Technology and Communications Companies (BRASSCOM) and the Brazilian Association for Promoting the Software Export (Softex), and iO2. 

We also met with a distinguished list of Brazilian IT services firms in both Rio and Sao Paulo, including PromonLogicalis, CMP Braxis, Cast, BRQ, Dimension Data, CI&T, iO2, and Sedna Partners. 

What did we hear?

  • Good times for Brazilian IT industry, which was recently among the strategic industries given a tax break to promote its competitiveness.
  • Currently many Brazilian IT services firms are experiencing 30%-40% annual growth. 
  • And, many are looking to double their revenues in the next few years.
  • Unlike their Indian counterparts, they have built their businesses domestically with 80%-90% of their revenues coming from Brazil.  Great partners for vendors looking to enter the Brazilian market.
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“Big Process Thinking” Will Power The Next Generation Of Business Transformation

Clay Richardson

Earlier this year, I was invited to participate in an internal debate across the Forrester team serving the business process professional role on “The Future of Business Process: Packaged Apps vs BPM.” Our key takeaway: Organizations need to move away from siloed views of the business process domain and develop a more holistic view of business processes across both packaged applications and BPM disciplines. In short, we agreed that business process pros should embrace “big process thinking,” as we’re beginning to call it, to deal with increasingly splintered and fragmented processes that span across packaged applications, BPM suites, on-premises solutions, cloud-based solutions, mobile platforms, and social environments.

Following this debate, key Forrester business process analysts embarked on new research to flesh out exactly how business processes — and the business process discipline — will need to evolve in the face of continuous disruption and competitive threats.  Over the past three months, we interviewed firms with leading business transformation programs, industry thought leaders, and technology vendors to paint a picture of what business processes will look like in 2020. Based on these interviews, business process will evolve over the next decade to become:

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What Is Autonomy, Without Its Marketing?

Leslie Owens

Yesterday, HP agreed to buy UK software firm Autonomy Corp. for $10 billion to move into the enterprise information management (EIM) software business. HP wants to add IP to its portfolio, build next-generation information platforms, and create a vehicle for services. It is following IBM’s strategy of acquiring software to sell to accompany its hardware and services. With Autonomy under its wing, HP plans to help enterprises with a big, complicated problem – how to manage unstructured information for competitive advantage. Here’s the wrinkle – Autonomy hasn’t solved that problem. In fact, it’s not a pure technology problem because content is so different than data. It’s a people, process problem, too.

Here is the Autonomy overview that HP gave investors yesterday:

Autonomy architecture

Of course, this diagram doesn’t look like the heterogeneous environment of a typical multinational enterprise. Autonomy has acquired many companies to fill in the boxes here, but the reality is that companies have products from a smorgasbord of content management vendors but no incentive to stick with any one of them.

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Buyers Scrutinize SaaS Contracts More in H1 2011, As Deal Sizes Grow

Liz Herbert

The growing realization for SaaS buyers is that if they overlook the details of their SaaS contracts, chances are they’ll pay for it later. Forrester analyzed the thousands of inquiries we receive every quarter to understand the hot button topics in the SaaS space for the first half of 2011. When it comes to on-demand services, we found that people paid more attention to the following three factors in the first half of 2011 than ever before: 

  1. Pricing and discounts. It came as no surprise that people are most concerned about money and are looking for guidance around SaaS pricing and discounts more than anything else. Many of our clients want to benchmark themselves against peers. For example, one client asked, “Is there some benchmark data to compare pricing on B2C web portal (PaaS or SaaS) solutions?” Forrester’s take? Unlike traditional software, most SaaS pricing is publicly available on vendor websites. However, pricing and pricing models are still in flux for many emerging areas of SaaS. Even in more established areas, like HR and CRM, discounts can range as high as 85% for large or strategic clients.
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Intel Rewards Itanium Loyalists With Performance And RAS Features In Poulson

Richard Fichera

Intel Raises the Curtain on Poulson

At the Hot Chips conference last week, Intel disclosed additional details about the upcoming Poulson Itanium CPU due for shipment early next year. For Itanium loyalists (essentially committed HP-UX customers) the disclosures are a ray of sunshine among the gloomy news that has been the lot of Itanium devotees recently.

Poulson will bring several significant improvements to Itanium in both performance and reliability. On the performance side, we have significant improvements on several fronts:

  • Process – Poulson will be manufactured with the same 32 nm semiconductor process that will (at least for a while) be driving the high-end Xeon processors. This is goodness all around – performance will improve and Intel now can load its latest production lines more efficiently.
  • More cores and parallelism – Poulson will be an 8-core processor with a whopping 54 MB of on-chip cache, and Intel has doubled the width of the multi-issue instruction pipeline, from 6 to 12 instructions. Combined with improved hyperthreading, the combination of 2X cores and 2X the total number of potential instructions executed per clock cycle by each core hints at impressive performance gains.
  • Architecture and instruction tweaks – Intel has added additional instructions based on analysis of workloads. This kind of tuning of processor architectures seldom results in major gains in performance, but every small increment helps.
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Steve Jobs Is A Market Systems Master

Ted Schadler

I'll let others wax on wax off about Mr. Jobs' courage, taste, focus, vision. I'll merely point out that under Steve Jobs, Apple has been a brilliant systems thinker. The story starts with a whooping and winds up with market systems brilliance. Let me explain.

The vendor with the best market system wins. It's why Microsoft whooped Apple in the PC market. While Apple under Steve Jobs focused on its Macintosh closed system of hardware, software, and applications, Microsoft built an open market system on Windows: any hardware, any application, many ways to make money.

Mr. Jobs and Apple mastered the lesson: it's the market system that matters. A successful market system includes all the players, all the pieces, the end-to-end solution, the business model, the flow of money, the attractors, blockers, hardware, software, content, and services all wrapped into what we in 2006 called a single digital experience (what we now call a "total product experience").

With the launch of the iPod in 2001, Apple's market systems mastery shone through. Others had built great MP3 players. Only Apple built a great music market system.

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What Steve Jobs' Resignation Means For Product Strategists

JP Gownder

First off, let me say this: I hope that Steve Jobs' health improves, and that he comes out of whatever challenges he's going through in the best of health. He's an amazing, visionary leader of a dynamic company -- and he's also a person with a family. Let's all wish him well.

While famously a CEO, Steve Jobs is also, it should be known, a product strategist par excellence. He's clearly been involved, in a deep way, in the development of Apple's product ideas, product designs, business models, go-to-market strategies, and responses to competition. These are the job responsibilities of product strategists. In his (and Apple's) case, product strategy has risen to the very top of the organization.

Product strategists of two different flavors are wondering how they might be affected by his resignation as CEO (and concomitant request to become chairman):

  • Product strategists who compete with Apple. Product strategists at companies like Microsoft, Google, Samsung, HP, Dell, HTC, and similar firms wonder if Steve Jobs' change in role might benefit them. They actually shouldn't wonder: His departure from the CEO spot won't benefit them -- not for a very long time, at least. Apple's product development road map stretches into multiple years ahead and has been shaped both by Jobs and by the organization he built. Jobs' departure won't affect Apple's product portfolio, quality, or competitiveness for a long time -- if ever.
     
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Optimizing Software Development Sourcing To Drive More Customer Value

Diego Lo Giudice

The past few years haven’t been kind to software developers. Having the equivalent of a US master’s in computer science and having spent the first 20+ years of my professional life developing mission-critical software products and applications, I have had a hard time adjusting to the idea that developing software applications is a cost to avoid or a waste of time for many CIOs and application development leaders. It seems to me that we have been giving more emphasis to contracts, legal issues, SLAs, and governance concerns but forgetting about how IT can really make a difference – through software development. 

Nevertheless, outsourcing kept increasing, and packaged apps exploded onto the scene, and software developers “outplaced” from enterprises. People started to believe they could get more value and good-quality software cheaper…but could they really?

With BT, digitalization, and customer centricity exploding, today is the perfect moment for application development leaders to review their application development sourcing strategy and align it to their BT strategy.

Why? Many reasons, including:

  1. Software is the most important enabling technology for business innovation.
  2. Clients use software every day. It’s become part of their life, and they enjoy the experience. Better software makes a better experience.
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May Force.com Not Be With You

Mike Gualtieri

Lack Of Infrastructure Portability Is A Showstopper For Me

Salesforce.com bills Force.com as "The leading cloud platform for business apps." It is definitely not for me, though. The showstopper: infrastructure portability. If I develop an application using the Apex programming language, I can only run in the Force.com "cloud" infrastructure.

Don't Lock Me In

Q: What is worse than being locked-in to a particular operating system?

A: Being locked-in to hardware!

In The Era Of Cloud Computing, Infrastructure Portability (IP) Is A Key Requirement For Application Developers

Unless there is a compelling reason to justify hardware lock-in, make sure you choose a cloud development platform that offers infrastructure portability; otherwise, your app will be like a one-cable-television-company town.

Bottom line: Your intellectual property (IP) should have infrastructure portability (IP).

Is Social Software Relevant To Information Workers?

TJ Keitt

I'm not saying anything shocking when I say enterprise social software, has been a hot topic over the last five years. The set of technologies designed to flatten corporations have spawned dedicated blogs, press, and conferences. And our surveys of content and collaboration professionals show businesses are embracing these technologies: 42% of firms are making new investments in Enterprise 2.0 software, and 46% are investing in team workspaces (on which social technologies often ride into the enterprise). So, obviously we're over the hump and well into this new social era of business, right? Well...not so fast.

I'll go out on a limb here and say that businesses are not more social - at least, not in the broad-based fashion people envisioned when we first started talking about Enterprise 2.0 in the heady days of the mid-2000s. How could it be? According to our recent survey of 4,985 US information workers, 28% of the workforce uses a social technology. While you may be thinking to yourself this is a good start, allow me a moment to point out some key differences between Enterprise 2.0 users and the rest of the workforce:

  • They're your highest paid employees. Over half of this group earns more than $60k a year, compared to just 36% of non-users.
  • They're the most educated members of the workforce. Sixty-five percent of this group has completed at least a 4 year college degree compared to 55% of the rest of the workforce.
  • They're the leaders in your office. It's not surprising to see 49% of this group are managers are executives given management's enthusiasm about social technologies. Just 31% of non-users are in similar positions.
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