We’ve all heard software reps blame “revenue recognition” and “Sarbanes-Oxley” as an excuse for not giving an extra discount or contractual concession. IT sourcing professionals may now hear “GSA Rules” and the “False Claims Act” cited as similar justification: “We didn’t give that concession to the government, so we can’t give it to you.” Could that be the worrying unintended consequence of the Justice Department’s action against Oracle: http:/searchoracle.techtarget.com/news/2240019712/US-government-sues-Oracle-for-tens-of-millions-of-dollars?
I can’t comment on the details of the Oracle case, but I’m sure it is complex and two-sided. For instance, I’ve helped clients negotiate reasonable compromises with Oracle to handle special circumstances that won’t apply to many other organizations. These may have involved an extra discretionary discount, if Oracle didn’t have a programmatic way to handle the exception. I wouldn’t expect to get the same concession or discount for another client to whom those special circumstances didn’t apply. For example, this report describes one issue that is particularly important to public sector agencies, but whose impact varies widely: Do Your Software Contracts Permit External Use?
Our new book, Empowered, will be in book stores on September 14. But for a real-world conversation about what it means to unleash employees to solve customer problems using readily available technology, come to our Content & Collaboration Forum in Maryland just outside of Washington, D.C. on October 7 and 8.
Yes, this is a pitch to come to a Forrester event, but I promise you that it will be worth your time if you're looking for help with such Empowered topics as enterprise social, empowered employees, iPad in the enterprise, innovation, collaboration in the cloud, videoconferencing, and IT consumerization as well as deep dives into critical topics like search and taxonomy, enterprise content management, and what it means to be a content & collaboration leader.
You'll get two days of my Forrester analyst colleagues' presentations and face time as well as keynote presentations from some great and experienced content & collaboration executives. GM's Steve Sacho is way ahead of the curve in understanding how to turn consumerization from IT threat to business opportunity. Richard West of the defense firm, BAE Systems, is bringing his story of how investments in knowledge management and collaboration have empowered employees to work more efficiently together to solve customer problems. Both speakers as well as Zach Brand, head of all things interesting at NPR Digital Media (yes, that NPR), will share their stories, lessons, and experience.
You might think summer would be a good time to give acquisitions a break - to let things settle a bit. But the pace of key acquisitions continues and many deserve comment. Datacap, as we all know, is not new to IBM having many - probably 20 - joint customers. This helps shore up IBM's already packed ECM portfolio - which depended for capture on Kofax - and other partners like Datacap. The original capture assets, acquired with FileNet, were adequate but lacked forms processing and a distributed capture strategy. This acquisition plugs those gaps but more importantly provides a needed platform to overlay IBM's suite of analytics products to improve business processes with metadata extraction, document classification, and ultimately to bring text analytics to transactional business processes. Advanced capture will also help IBM in advancing areas of dynamic case management and medical records.
Open source software (OSS) and business intelligence (BI) are two related market segments where Forrester sees continually increasing interest and adoption levels. BI specifically continues to be one of the top priorities on everyone's mind. The main reason? Enterprises that do not squeeze the last ounce of information out of their data stores and applications, and do not focus on getting strategic, tactical, and operational insight into their customers, products, and operations, risk falling behind competition. And when it comes to open source, 2009 could best be described as "the year IT professionals realized that open source runs their business." The reason is simple: Over the past few years, we've seen that developers adopt open source products tactically without the explicit approval of their managers. This has shown up in numerous surveys where the actual adoption of open source ranks higher than what IT managers report. Well no longer: Forrester's Enterprise And SMB Software Survey, North America And Europe, Q4 2009 shows that management has caught on to the fact that developers increasingly use open source to run key parts of their IT infrastructure. And management has grown increasingly comfortable with it. In fact, throughout 2009, most client inquiries Forrester received regarding open source were focused on how to move from tactical adoption to strategic exploitation.
Yet, when you put the 2 and 2 together (OSS and BI), you mostly get a mixed market, where one unfortunately has to compare apples to oranges. Why? Before plunging into a tool evaluation and selection process, ask yourself the following questions, and make sure you are doing a like-to-like comparison:
VMWare has got it down: Sell a virtualization solution with anchor applications (and seats) that no service provider can live without, starting with email. This is the call we made when VMWare bought open source email and collaboration provider Zimbra from Yahoo! last February. And now they've delivered with the upgraded Zimbra Collaboration Suite Appliance 6.0 targeted at service providers and other virtual cloud hosters. What it means:
What it means #1. VMWare is solidly in the market to provision service providers with email. Service providers that want to resell Google or Microsoft's email have the benefit of low capital costs and rapid deployment. But service providers that don't want to resell another vendors' cloud services need a solution that runs at low cost on cheap servers with easy peasy provisioning. That's what the Zimbra collaboration appliance promises. Will it deliver? Love to hear from service providers on this one.
What it means #2. VMWare drives another nail into the coffin of on-premises business email. At $5/mailbox/month for cloud email, if you take away client software and mailbox administration costs, our analysis shows that it costs twice as much to host a mailbox yourself than to host it in the cloud. This offering gives service providers around the world the opportunity to compete at that price. So who would use on-premises email? Only someone with stringent requirements, massive scale, or a recent upgrade. Even the federal government is moving to cloud-based email as GSA has announced.
It’s no secret traditional news organizations are struggling to stay relevant today in an age where an always-connected generation has little use for newspaper subscriptions and nightly news programs. The Associated Press (AP), the world's oldest and largest news cooperative, is one such organization who has felt the threats which this paradigm shift carries and thus the need to intensify its innovation efforts. However, like many organizations today, its in-house IT Ops and business processes weren’t versatile enough for the kind of innovation needed.
"The business had identified a lot of new opportunities we just weren't able to pursue because our traditional syndication services couldn't support them," said Alan Wintroub, director of development, enterprise application services at the AP, "but the bottom line is that we can't afford not to try this."
To make AP easily accessible for emerging Internet services, social networks, and mobile applications, the nearly 164-year-old news syndicate needed to provide new means of integration that let these customers serve themselves and do more with the content — mash it up with other content, repackage it, reformat it, slice it up, and deliver it in ways AP never could think of — or certainly never originally intended.
Recently I published a business service management (BSM) case study on AMERICAN SYSTEMS. If you're interested in BSM, I highly recommend reading through this report. Although there are many known business alignment success stories, AMERICAN SYSTEMS takes business alignment a step further by aligning IT elements in a way that truly supports its business goals. AMERICAN SYSTEMS sought to improve the delivery and quality of its services to the business, something they were able to accomplish by introducing ITIL and COBIT standards and deploying integrated data center management software. In all, they were able to gain situational awareness, preempt and respond to issues more efficiently, and better protect information assets.
I've outlined a few key highlights from this report below:
First off, AMERICAN SYSTEMS is a government IT innovator that provides engineering, technical, and managed services to government customers. In order to meet the needs of their clients' constant demand for new and better services, they decided to shift from a reactive to a proactive way of managing and operating.
When they set out to make changes they outlined several goals:
Last week, as part of the debate on the 600B border security bill, Senator Charles E. Schumer from New York reportedly called the Indian offshore IT firms in general and Infosys in particular “chop shops” — a reference to the locations where criminals dismantle stolen cars for spare parts. As always, the Indian press has immediately reacted. But let’s not take the comment out of context; US Senator Charles Schumer calls Infosys 'chop shop' - India Business - Business - The Times of India. Senator Schumer is showing that in an election year, he is “standing up” for American jobs.
But that said, as we head into the midterm elections with 9.5% unemployment and very little job growth, there will be more comments like this unfortunately, and the Indian firms and NASSCOM need to be prepared with their own PR counterattack and story. Offshore customers would also be advised to take the same advice and have a clear PR plan ready to go at a moment’s notice in case they get raked over the coals as part of the rhetoric.
Anyone familiar with social technologies will remember the launch of Google Wave in the fall of 2009. It was a new kind of communication platform released into a beta test with 100,000 invitations sent out. Google’s strategy in limiting the rollout was designed not to overload the architecture (and perhaps to create a sense of scarcity, which it did very well). Google also wanted to develop the platform experientially based on user feedback. However, on Wednesday Google announced it was pulling the plug on Wave. Eric Schmidt tried to put a positive spin on it, describing Wave as a failed experiment that was also a learning experience. And there are certainly some lessons that can be applied to the rollout of enterprise social platforms.
Numbers Matter – Develop A Strategy For Rapid Adoption
I spoke today at SHARE’s biannual conference, giving a talk on emerging data center architectures, x86 servers, and internal clouds. SHARE is an organization which describes itself as “representing over 2,000 of IBM's top enterprise computing customers.” In other words, definitely a mainframe geekfest, as described by one attendee. I saw hundreds of people around my age (think waaay over 30), and was able to swap stories of my long-ago IBM mainframe programming experience (that’s what we called “Software Engineering” back when it was FORTRAN, COBOL, PL/1 and BAL. I was astounded to see that IMS was still a going thing, with sessions on the agenda, and in a show of hands, at least a third of the audience reported still running IMS.
Oh well, dinosaurs may survive in some odd corners of the world, and IMS workloads, while not exciting, are a necessary and familiar facet of legacy applications that have decades of stability and embedded culture behind them…
But wait! Look again at the IMS session right next door to my keynote. It was about connecting zLinux and IMS. Other sessions included more zLinux, WebSphere and other seemingly new-age topics. Again, my audience confirmed the sea-change in the mainframe world. Far more compelling than any claims by IBM reps was the audience reaction to a question about zLinux – more than half of them indicated that they currently run zLinux, a response which was much higher than I anticipated. Further discussions after the session with several zLinux users left me with some strong impressions: