Business Continuity Is Back On The Agenda

Stephanie Balaouras

During the last 12 to 18 months, there have been a number of notable natural catastrophes and weather related events. Devastating earthquakes hit Haiti, Chile, China, New Zealand, and Japan. Monsoon floods killed thousands in Pakistan, and a series of floods forced the evacuation of thousands from Queensland. And of course, there was the completely unusual, when for example, ash from the erupting Eyjafjallajökull volcano in Iceland forced the shutdown of much of Western Europe’s airspace. These high profile events, together with greater awareness and increased regulation, have renewed interest in improving business continuity and disaster recovery preparedness. Last quarter, I published a report on this trend: Business Continuity And Disaster Recovery Are Top IT Priorities For 2010 And 2011.

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What Do Spark Plugs And WLAN Solutions Have In Common?

Andre Kindness

It’s not the most daring and cutting-edge prediction to say 2011 will be Wi-Fi’s second coming. However, you might be caught off guard when I tell you to not worry about a vendor’s WLAN architecture. Your business needs will flush out the right one. Despite the initial hype seven years ago that Wi-Fi was going to be the new edge, it’s been the second choice for most users to connect with at work — but that will change. A tidal wave of wireless devices will be crashing through the enterprise front door very soon. Just look at the carriers scrambling to build out their infrastructure — there’s no shortage of stories about AT&T and their build-out of Wi-Fi in metropolitan areas. And users have fused their work and personal phones and are looking to seek coverage from carrier data plans.

The time to start was yesterday, and you have a ton of work to do. Your edge will be servicing:

  • Employees with corporate netbooks and their own smartphones and/or tablets who watch training videos on YouTube from companies like VMware.
  • Devices like torque tools, temperature sensors in exothermic chambers, ambient light sensors, and a myriad other devices.
  • Contractors with their own laptops, netbooks, tablets, and/or smartphones who need access to specific company applications.
  • Guests like account executives entering customer information into their CRM programs.
  • All the things being developed at venture capital backed incubators.
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Salesforce.com And Radian6 - What Does It Mean For Customer Service?

Kate Leggett

Today, salesforce.com announced the intent to acquire Radian6, a leader in the social media monitoring space. You can find the details of the definitive agreement here. What I want to focus on is what this acquisition means to customer service.

  •  First, the social listening vendor landscape is crowded and ripe for consolidation. Salesforce.com has just picked off the best vendor in this category of vendors, according to a recent Forrester Wave™ report. Radian6 helps salesforce.com extend its core customer service capabilities to the social channels like Facebook and Twitter, which are becoming increasingly important for companies looking to offer a differentiated customer service experience. This is not the first acquisition of this type; however, it is the most significant one, based on salesforce.com's market share and customer base. Expect to see similar acquisitions by CRM and customer service vendors in the future.
     
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Cisco Buys A Credible Automation Entry Point With NewScale

Glenn O'Donnell

Cisco announced today its intent to acquire NewScale, a small, but well-respected automation software vendor. The financial terms were not disclosed, but it is a small deal in terms of money spent. It is big in the sense that Cisco needed the kind of capabilities offered by NewScale, and NewScale has proven to be one of the most innovative and visible players in that market segment.

The market segment in question is what has been described as “the tip of the iceberg” for the advanced automation suites needed to create and operate cloud computing services. The “tip” refers to the part of the overall suite that is exposed to customers, while the majority of the “magic” of cloud automation is hidden from view – as it should be. The main capabilities offered by NewScale deal with building and managing the service catalog and providing a self-service front end that allows cloud consumers to request their own services based on this catalog of available services. Forrester has been bullish on these capabilities because they are the customer-facing side of cloud – the most important aspect – whereas most of the cloud focus has been directed at the “back end” technologies such as virtual server deployment and workload migration. These are certainly important, but a cloud is not a cloud unless the consumers of those services can trigger their deployment on their own. This is the true power of NewScale, one of the best in this sub-segment.

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Amazon’s Cloud Drive Is The First Step To Being A Personal Cloud Ecosystem Player

Frank Gillett

Today, Amazon announced the Amazon Cloud Drive. I think it is the first salvo in a series of steps that will lead Amazon to compete directly for the primary computing platform for individuals, as an online platform, as a device operating system, and as a maker of branded tablets.

Amazon Cloud Drive logo, with puffy arc behind the words

Much of the attention is going to the Amazon Cloud Player, announced at the same time, which enables customers to stream music stored in Cloud Drive – Forrester’s Mark Mulligan blogged about that for Consumer Product Strategists (Amazon Beats Apple and Google to the Locker Room). But the general purpose design of Cloud Drive, combined with the long-term opportunities for personal cloud services, lead to a really interesting set of possibilities and insights into Amazon’s long-term strategy for Vendor Strategists trying to sort out the technologies and players of next-generation personal computing platforms.

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Q1 2011 Results For Accenture And Oracle Point To Strong 2011 For IT Services And Software

Andrew Bartels

On March 24, 2011, both Accenture and Oracle released better-than-expected financial results for their fiscal quarters ending in February 2011.  In both cases, revenue growth was stronger than expected, with Accenture's revenues up 17% and Oracle's reported revenues up 37%.  Note, though, that Oracle's reported revenues were measured against a period in which it recorded only one month's of Sun Microsystems' revenues following the completion of that acquisition; adjusting the base period to show a more complete picture of the Sun revenues (which we estimate at about $1.8 billion in the three months ending in February 2010, compared with the reported $458 million), Oracle's revenues were 13% higher.  Still, its software and services revenues were up a strong 19%.

Because their fiscal quarters end one month earlier than most other vendors, Accenture and Oracle serve as early indicators of how the IT services and software segments of the tech market do each quarter.  The 27% increase in license revenues for Oracle's database and middleware products and the even stronger 34% growth in its application license revenues are signs of growing demand for software products -- not just SaaS products, but also classic licensed software products.  Purchases of those products typically lead to purchases of systems integration consulting services from IT services vendors like Accenture.  And indeed Accenture reported 20% growth in revenues from consulting services, compared with more modest (but still good) 13% growth in its outsourcing businesses.  So, my expectations that software and IT services will be the leading tech market growth categories in 2011 are supported by these results.    

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Is Your EA Program Making A Difference?

Alex Cullen

Several recent reports on Forrester.com start with the sentence: "EA organizations often toil out of the limelight . . . " There are fewer and fewer reasons why this should be the case. 

InfoWorld Enterprise Architecture AwardWe hear fewer stories of EA teams as purely "the standards police" or with "their heads in the clouds, not producing anything useful." We hear more and more stories of EA teams changing how business and IT plan, taking the lead in application simplification and rationalization, or being the broker for innovation. Infoworld and Forrester want to recognize these success stories with the 2011 Enterprise Architecture Award.

Our 2010 Award winners show the range of ways EA teams are making a difference:

  • Discover Financial created an EA repository that aggregates information from its Service Catalog, Fixed Asset, PPM, and Business Goals to provide decision-making insights that saved more than $1M of avoided costs.
  • Aetna used its Business Capability Map to combine more than 30 business unit strategies and road maps, highlighting common opportunities and gaps that it then used for its annual planning.
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Getting Down To (Social) Business At SXSW 2011

Clay Richardson

I've always heard great buzz about Austin's South By Southwest Conference (often simply referred to as SXSW). The conference brings together indie film, music, and tech to discuss and collaborate on building the future. The tech side of the conference — SXSW Interactive — is often where up-and-coming tech ventures break major news. In short, SXSW Interactive often serves as a petri dish for testing out new ideas and innovations.

Last week I attended SXSW to zoom in on emerging trends in social and consumer tech that would likely spill over into the business process — and social BPM — world over the next several years. Of the 15-20 keynotes and sessions I attended, three or four really resonated with the overall direction we see for social BPM and social business:

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Informal Buyers Of IaaS Cloud Computing Are Driving The Market, Not Formal IT Buyers – Vendor Strategists Need Two Strategies

Frank Gillett

Cloud infrastructure-as-a-service (IaaS) is a hot market. Amazon Web Services, now five years old, drives a lot of attention and customer volume, but the vendor strategists at enterprise-facing providers such as IBM, HP, AT&T and Verizon have been building and delivering IaaS offerings. As I’ve studied the market, I’ve heard wildly different types of requirements from buyers and quite a range of offerings from service providers. Yet much of the industry dialogue is about one central idea of what IaaS is – think that’s wrong headed. I found that there were really two buyer types: 1) informal buyers outside of the IT operations/data center manager organizations, such as engineers, scientists, marketing executives, and developers, and 2) formal buyers, the IT operations and data center managers responsible for operating applications and maintaining infrastructure.

With this idea in mind, I set out to test the views of IT infrastructure buyers in the Forrsights Hardware Survey, Q3 2010 and learned that:

  • After 2+ years of cloud hype, only 6% of enterprises IT infrastructure respondents report using IaaS, with another 7% planning to implement by Q3, 2012. After flat adoption from 2008 to 2009, this represents an approximate doubling from 2009, off a very small base.
  • Almost two thirds of IT infrastructure buyers themselves don’t believe they are the primary buyer of cloud IaaS! We asked them which groups in their company are using or most interested in cloud IaaS. Only 36% of IT infrastructure buyers listed themselves, while 7% didn’t know. The rest, 58% said that IT developers, Web site owners, business unit owners of batch compute intensive apps, and other business unit developers were more interested in using IaaS than themselves.
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The Consumerization Of IT Proceeds Unevenly, From Growth In Tablets To Anemic BYOPC Adoption

Frank Gillett

Tablets are a red hot topic since the launch of Apple’s iPad more than a year ago. Tablets are the most visible aspect of a broader topic on the minds of vendor strategists – the consumerization of IT. Consumerization is defined variously as using personal devices for work, pay-per-use payment models, spending personal money for work-related cloud services, and employee self-provisioning of IT capacity outside the oversight of IT. In our annual Forrsights Hardware Survey, Q3 2010, we asked IT infrastructure buyers responsible for supporting end user computing about a variety of topics related to consumerization of IT and learned that:

  • The IT organizations in 26% of enterprises (firms with 1000 employees or more) were planning to implement or had implemented general purpose touchscreen tablets such as the Apple iPad. Of that total, 4% reported they’d already implemented, and 17% were already piloting by Q3, 2010, approximately 6 months after the launch of this brand new category. SMBs, firms with 999 employees or less, were lower at 18% planning or implemented.
  • Only 2% of firms, large and small, reported implementing or piloting bring-your-own-PC models, despite several years of hype among the desktop virtualization software vendors about this model. We expect this PC deployment model to grow, but it’s not a broad trend yet.
  • Firms are using more consumer-style Web applications on PCs, with 84% firms increasing their use of Web applications. But they’re not abandoning locally installed applications. 55% of firms are increasing or staying the same on their use of installed applications, while only 4% are seriously reducing use.
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