In May, I blogged about NetApp's announced acquisition of deduplication pionneer, Data Domain. The announcement triggered an unsolicted counter-offer from EMC, followed by another counter from NetApp. But after a month of offers, counter-offers and regulatory reviews, EMC ultimately outbid NetApp with an all cash offer of $2.1 billion. I believe that Data Domain would have been a better fit in the current NetApp portfolio; it would have been easier for NetApp to reposition its current VTL as a better fit for large enterprises that still planned to leverage tape. It's also said that more than half of Data Domain's current employees are former NetApp employees so there would have been a clear cultural fit as well.
For $2.1 billion, EMC gets Data Domain's more than 3000 customers and 8000 installs but it also gets a product that in my opinion, overlaps with its current Quantum-based disk libraries, the DL1500 and DL3000. In Forrester inquiries and current consulting engagements, Data Domain is regularly up against the EMC DL1500 and DL3000. EMC will need to quickly explain to customers how it plans to position its new Data Domain offerings with its current DL family, both the Quantum- and Falconstor-based DLs as well as its broader data protection portoflio that includes Networker and Avamar - which also offer deduplication.
There's a lot of buzz right now surrounding social media, Twitter, Web 2.0 — and whether there is any business value. My gut said there was... but having a Ph. D. in engineering, I knew that hypothesis needed to stand-up to testing. I began talking to customers, the brave souls who have ventured down the social media path, about what they were observing. None had calculated an ROI, but they could share with me their observations — their benefits, their costs and the risks. I looked for trends.
IBM threw a big event in New York City on Thursday, October 1, and Friday, October 2, to publicize its Smarter Cities initiative, part of its Smarter Planet marketing message. The event featured an impressive list of politicians (Mayor Bloomberg, NY Governor Patterson, governors from Vermont and North Carolina) and CEOs (CEOs from ABB, Verizon, American Electric Power, etc.). I was part of the crowd of hundreds of attendees and IBMers on Friday, and my colleague Doug Washburn attended on Thursday.
It would be easy to dismiss this as part of hype machinery that IBM is running to build awareness of and create customers for its Smarter Planet initiative and the emerging offerings that it is creating under that rubric. But I think there is more going on here. What IBM is really doing is creating a vision - or more precisely, half a dozen visions - of how a new generation of technology can help address some critical challenges facing the planet. Visions of course can easily become hype. But as several speakers noted, visions are also a necessary first step in any transformation process, building awareness of what can be different at the end that will inspire people to start the journey. And IBM to its credit put concrete examples behind the proposals.
Here is what IBM is doing right:
Focusing on key social and economic problems facing many countries around the world. Cities and national governments face challenges of providing healthcare more efficiently, improving the quality and delivery of education, managing greater and greater volumes of people travel and goods transportation, providing public safety and security in the face of increased threats of terrorism and persistence of crime, and encouraging energy conservation and alternative energies to counter global warming. These are the problems that IBM's Smarter Cities initiative focused on.
In many of my recent conversations with CIOs and IT infrastructure and ops professionals, I’m noticing an increasing interest in understanding how green IT will evolve.
Why do IT leaders want this vision? In the short-term, IT leaders want to ensure they’re not missing out any easy opportunities for savings they haven’t thought of yet. And over the long-term, IT leaders developing their green IT strategies want to strive for a broad scope of projects that reduce the environmental impacts — and of course costs — within and outside of IT.
2009 was the year we focused on virtualization and consolidation of IT infrastructure to drive down costs. Virtualization and consolidation will remain top initiatives in the second half of 2009 as IT organizations strive to save more by expanding virtualization and driving up the ratio of virtual machine to physical server. But what’s next? For one, virtualization is changing IT management, processes, and roles but most organizations have yet to adapt. Second, a lot of initiatives were put on hold in 2009 to focus on projects that had an immediate return on investment. As a result, many organizations put off infrastructure upgrades, postponed ITIL process adoption, and stepped back from process automation. But in order to achieve the next level of IT operational efficiency we’ll need to reprioritize these initiatives. And by doing so, we’ll be in a better position to selectively leverage web, cloud, and outsourcing services to eliminate some costs completely.
If you want to learn more about these topics, please join my complimentary Webinar, "Transforming IT Infrastructure And Operations in 2010" on July 16th at 11AM EST. You can register for the session by visiting: www.forrester.com/ioassessmentwebinar.
I had the privilege of hosting the Green IT 2009 conference in London back in May and wanted to share a couple of observations about that terrific event. I often tell clients in the U.S. that I am taking "a trip to the future" when I go to Europe; in particular, UK public sector organizations are probably the most advanced anywhere in terms of green IT behaviors (or should I say behaviours?).
Two statements I heard from IT procurement people at the conference that should be on the radar screen for vendor strategists looking to anticipate the next wave of enterprises' green requirements, and for IT planners looking to get more aggressive about their company's green IT initiatives:
Requirements for longer-lifecycle IT equipment. Planned obsolence is going to become obsolete. Expect your customers to require longer warranty periods, modular/upgradeable designs, and lifecycle-based carbon footprint analysis from you and your gear. Companies are realizing that, as one conference attendee put it, "we puts lots of bodies in motion" when they order new equipment.
Increasing demand for green/renewable energy. No matter how efficient a data center is, it can't really be green unless it's powered by green energy.
Some recent buzz in the industry would have you believe that “SOA is dead,” but that just isn’t the case — SOA is far from being dead, outdated, or irrelevant. In fact, its use and influence are still growing. A recent Forrester survey indicates that 75% of Global 2000 organizations will be using SOA by the end of 2009. 60% of current users are expanding their use of SOA, and a substantial number recognize SOA’s strategic business value and are using it on a sizable portion of their solution delivery products.
Stories of less-than-successful results may dent its reputation, particularly in today’s climate of pessimism and uncertainty, but when done right SOA has the potential for broad-reaching positive impact on the enterprise. Instead of getting caught in the hype or jumping ship on their SOA efforts, CIOs should keep in mind that:
It's been a while since I blogged - and even longer since I did something a bit light hearted - so I thought it's time to make a comment on something about tech that has been bugging me recently.
So Michael Jackson and technology seem like very loosely related issues - and they definitely are. But the death of such a "big name" is quite a rare occurrence - and it makes people think back to the last time someone with such a high profile passed away, and how they reacted then. And at the same time, it demonstrates how technology, that is ultimately designed to connect people, actually ends up keeping us apart (or at least reminding us of the fact that we are apart).
When I think back to the last big "star" that passed away, in any territory of the world connected to the United Kingdom, it was probably the death of Diana, Princess of Wales. This happened in August 1997. In North America, people have been comparing Michael Jackson's passing to that of Elvis, Buddy Holly, and the likes. Such big events act as markers of time. People remember where they were when they heard of Elvis', President Kennedy's, and Lady Diana's deaths. And often these were shared experiences - people remember who they were with at the time - as often they heard this information from other people. I remember driving on Spit Road in Sydney when it was announced on the radio that Diana, Princess of Wales, had passed away. I had my partner (now wife) and friends in the car with me at the time. We shared the experience, and somehow even bonded over it.
Ever since I read today that Goldman Sachs formerly employed a $400,000 programmer, I have been contemplating a career change. What software could Sergey Aleynikov develop that you or I couldn't also develop for $400K per year? Whatever, he knows must be valuable because he apparently left the Goldman job headed for a better one that would have paid him 3 times that amount. He would have that is, if he hadn't been arrested by the FBI.
Sergey is probably not writing any code right now, because he has been charged with "theft of trade secrets" by the FBI after he alledgedly stole codes used for sophisticated automated stock trading, improperly copied proprietary computer code, and then uploaded it to a computer server in Germany.
Controversies and eccentricities notwithstanding, Michael Jackson is a brilliant musicalartist and performer. I was acutely aware of this on February 2009 in London after 3 colleagues and I went to see the new West End show, Thriller Live at the Lyric Theater after Forrester's EMEA Enterprise Architecture Forum. If you are in London, go to this show! Go, especially if you have no rhythm because you will probably find it there. The show is a celebration of Michael's breathtaking musical career shown through the performances of very talented singers and dancers. The hits are nonstop.The night flies by leaving you wanting more. Go.