Apple’s iCloud Takes The Lead In Pursuit Of The $12 Billion Personal Cloud Opportunity

Frank Gillett

Apple’s announcement of iCloud today coincides with the publishing of a major Forrester report for vendor strategists, “The Personal Cloud: Transforming Personal Computing, Mobile, And Web Markets” that describes the technology, markets, US market sizing, and the key players for this new form of personal computing that spans the job and personal lives. For a take on what Apple’s WWDC announcements mean for Consumer Product Strategists, please see the blog post, Apple’s iCloud Further Cements Platform Loyalty With Superior Total Product Experience, from my colleague Charlie Golvin.

The personal computing experience has become a major pain in the neck, as people add smartphones and tablets to the growing number of PCs they use at work and at home – more than half the US online population, about 135 million people, have the challenge of managing their content across multiple PCs and smartphones.

Forrester believes that a new computing experience is emerging, based on the personal cloud concept, that will redefine the computing experience around a user’s personal and work information, so that it’s seamlessly accessible across all of an individual’s devices. The growing personal cloud ecosystem is characterized by:

  • A $12 billion market value by 2016, with $6 billion of it from direct subscription revenue.
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The Promises Of Vendor Service

Jost Hoppermann

Just recently, I had an interesting customer experience — or, to be more precise, my daughter had it, as it involved her laptop computer from one of the top international Internet PC vendors. It was only a little defect — more an annoyance than a real fault. Since we bought “next business day service,” it should have gotten fixed right away. It played out differently in real life.

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What Happens When Central "IT" No Longer Exists?

Brian  Hopkins

When we get used to something, we often think it will never change, but it does eventually; who bought a house in 2006 and assumed the value would surely keep going up?

We are working at an architectural inflection point. The signals are all around us – cloud, big data, mobility, smart computing, etc. While each of these appears to be only modestly connected, I think together they signify a major shift in how business gets done and in the architecture that supports it. If true, this means the tried-and-true Business-Data-Applications-Technology model architected and delivered by central IT will not serve us much longer.

Consider the following:

  • Big and complex are here to stay. In the past we strove for simplicity because we did not have the techniques and technology to deal with the world as it is – infinitely complex. Read Chaos: Making a New Science by James Gleick. The cloud has brought the power of distributed, elastic computing to bear on enormous problems, and this trend will continue. Will central IT continue to grow in response to the increasing size and complexity of technology problems, or will a different model arise?
  • The cloud and the App Internet are two sides of the same coin. The cloud is about optimizing the power of centralized data processing, while the App Internet is about exploiting the enormous power of mobile devices on the periphery. What happens when we figure out how these work together? Can we create a smart grid across mobile devices that also leverages cloud resources? What can we accomplish when apps no longer live in central data centers that we own and control?
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SMARTnet Is Dead! Long Live The Lifetime Warranty!

Andre Kindness

Just kidding, Cisco’s SMARTnet isn’t dead, but I&O managers have a new warranty for networking hardware: free hardware replacement, bug fixes, and tech support. Basically, enterprises can expect to get a basic break-and-fix solution free from most vendors on edge and distribution switches or switch/routers. Hallelujah!

Everyone owes a big thank-you to HP. Over the past 10 years, while holding less than 5% of the market, HP’s ProCurve line forced its competitors’ hands, reset the industry’s warranty choices, and revolutionized what customers should expect from their networking vendors. By leveraging the lifetime warranty to separate themselves from the other seven dwarfs and Gigantor while trying to offset “you get what you pay for,” HP went to market offering next business day replacement on the hardware, phone and email support, along with software bug fixes and updates. They wanted customers to understand that only companies that delivered quality products could sustain this type of service model. HP extended the warranty out to some of the 3Com/H3C products -- after the acquisition -- too.

Within the past two years, most vendors have followed suit and offered their version of a lifetime warranty:

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Choosing The Right Metrics For Your Customer Service Operations

Kate Leggett

Measuring the success of your customer service by using a single metric is impossible. It’s like flying a plane by just looking at your speed without taking the altitude into account. You need to measure a set of competing metrics to make up a Balanced Scorecard that includes the cost of doing business and customer satisfaction. Service operations that have sales responsibilities should also track revenue generated. And in industries with strict policy requirements, like healthcare, insurance, and financial services, compliance with regulations is yet another set of metrics to track.

Choosing the right set of metrics to measure also depends on the stakeholders that use this information. For example:

  • Service managers need operational data that tracks activities, while executives want strategic KPIs that track outcomes of customer service programs.
  • Service managers need granular, real-time data on their operations, while executives need to see only a small number of KPIs on a periodic basis.  

I always think of it as a two-step process to pinpoint the right metrics for all your stakeholders:

  1. Understand the strategic objectives of your company; choose the high-level KPIs for your contact center that support your company’s objectives. These are the metrics you will report to your executives.
  2. Choose the right operational activity metrics for your contact center that map to these KPIs and which the customer service manager uses on a daily basis to manage operations. Here’s an example of this mapping:
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The Multichannel Organization Revisited

Jost Hoppermann

In 2006, Forrester found that organizational structure, internal enterprise goal systems, and most urgent business requirements were key obstacles on many firms’ journey toward broad multichannel solutions with rich cross-channel capabilities. At that time, a few advanced firms tried to establish a multichannel organization, an organizational layer to coordinate multichannel requirements and solutions between the different business groups and the IT organization. Has this changed over the past five years?

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It's The Dawning Of The Age Of BI DBMS

Boris Evelson

Over the years we’ve learned how to address the key business intelligence (BI) challenges of the past 20 years, such as stability, robustness, and rich functionality. Agility and flexibility challenges now represent BI’s next big opportunity. BI pros now realize that earlier-generation BI technologies and architecture, while still useful for more stable BI applications, fall short in the ever-faster race of changing business requirements. Forrester recommends embracing Agile BI methodology, best practices, and technologies (which we’ve covered in previous research)  to tackle agility and flexibility opportunities. Alternative database management system (DBMS) engines architected specifically for Agile BI will emerge as one of the compelling Agile BI technologies BI pros should closely evaluate and consider for specific use cases.

Why? Because fitting BI into a row-oriented RDBMS is often like putting a square peg into a round hole. In order to tune such a RDBMS for BI usage, specifically data warehousing, BI pros usually:

  • Denormalize data models to optimize reporting and analysis.
  • Build indexes to optimize queries.
  • Build aggregate tables to optimize summary queries.
  • Build OLAP cubes to further optimize analytic queries.
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Crowdsourcing In Vermont Engages - And Empowers - Citizens

Jennifer Belissent, Ph.D.

[Co-authored with Charles Green]

In my last blog I asked the question, “What’s it take to be a smart city?” One of the critical elements lies in smart governance. Smart governance takes leadership, coordination, and collaboration. (Take a look at my recent report, "Smart City Leaders Need Better Governance Tools.") Part of this leadership is finding innovative and cost-effective solutions to intractable problems – and that often lies in engaging constituents for input on the problems and feedback on the solutions.  As Charles and I were working on another project, we came across a great example of a US state looking outside the box to solve a real and frustrating problem faced by its citizens.

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Cisco Makes The Charts – Now No. 3 In Blades

Richard Fichera

When Cisco began shipping UCS slightly over two years ago, competitor reaction ranged the gamut from concerned to gleefully dismissive of their chances at success in the server market. The reasons given for their guaranteed lack of success were a combination of technical (the product won’t really work), the economics (Cisco can’t live on server margins) to cultural (Cisco doesn’t know servers and can’t succeed in a market where they are not the quasi-monopolistic dominating player). Some ignored them, and some attempted to preemptively introduce products that delivered similar functionality, and in the two years following introduction, competitive reaction was very similar – yes they are selling, but we don’t think they are a significant threat.

Any lingering doubt about whether Cisco can become a credible supplier has been laid to rest with Cisco’s recent quarterly financial disclosures and IDC’s revelation that Cisco is now the No. 3 worldwide blade vendor, with slightly over 10% of worldwide (and close to 20% in North America) blade server shipments. In their quarterly call, Cisco revealed Q1 revenues of $171 million, for a $684 million revenue run rate, and claimed a booking run rate of $900 million annually. In addition, they placed their total customer count at 5,400. While actual customer count is hard to verify, Cisco has been reporting a steady and impressive growth in customers since initial shipment, and Forrester’s anecdotal data confirms both the significant interest and installed UCS systems among Forrester’s clients.

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Follow The Conversation From Forrester's IT Forum 2011

Alex Cullen

Today we’re kicking off Forrester's IT Forum 2011 at The Palazzo in Las Vegas. Prepare for three exciting days of keynote presentations and track sessions focused on business and technology alignment. Use the Twitter widget below to follow the Forum conversation by tracking our event hashtag #ITF11 on Twitter. Attendees are encouraged to tweet throughout the Forum and to tweet any questions for our keynote presenters to #ITF11.