Wearables Require A New Kind Of Ecosystem

JP Gownder

In the fast-moving markets of wearables and IoT, it's easy to be dazzled by new technologies. But what's more impressive to Forrester is a coherent, disruptive business model. I've written that 2014 will be the year of wearables 2.0, when select vendors develop real wearable business models. To help that journey along, I'd like to offer up a hypothesis for a new industry axiom:

In the era of wearables and the Internet of Things, tech companies must create a new kind of ecosystem  an ecosystem not of developers, hardware makers, or services companies, but of brands, healthcare providers, retailers, financial services companies, and governments.

I'm still testing this hypothesis out, and will write about it in future research. In the meantime, I'd like to hear your examples. To give you a sense of what I'm talking about, it's an ecosystem comprised of companies in:

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Google Aims For More Eyeballs With VSP Deal

JP Gownder

Google, the online search superpower, has for years sought to maximize "eyeballs" -- in search marketing, a colloquial term for ad impressions viewed online.

Lately, though, Google's been going after a new kind of eyeballs. The literal kind.

Hot off of its announcement of a future product roadmap for smart contact lenses, Google today announced a partnership with VSP -- the largest optical health insurance provider in the United States -- for Google Glass. The New York Times quoted me saying, "the key business model of the year for wearables is becoming embedded into the health care system." By injecting wearables into health care:

  • The addressable market expands. VSP serves 59 million members with vision care insurance. 
  • Costs go down. VSP will offer subsidized frames and prescription lenses tailored to Google Glass. Some VSP members save additional money on purchases with pre-tax payroll deductions for the money they spend on optical care.
  • Credibility goes up. By coordinating with opticians and opthamologists, Google Glass can be recognized as consistent with healthy optical practices.
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Lenovo Buys IBM x86 Server Business

Richard Fichera

Wow, wake up and it’s a whole new world – a central concept of many contemplative belief systems and a daily reality on the computer industry.  I woke up this morning to a pleseant New England day with low single-digit temperatures under a brilliant blue sky, and lo and behold, by the time I got to work, along came the news that Lenovo had acquired IBM’s x86 server business, essentially lock, stock and barrel. For IBM the deal is compelling, given that it has decided to move away from the volume hardware manufacturing business, giving them a long-term source for its needed hardware components, much as they did with PCs and other volume hardware in the past. Lenovo gains a world-class server product line for its existing channel organization that vastly expands its enterprise reach, along with about 7,500 engineering, sales and marketing employees who understand the enterprise server business.

What’s Included

The rumors have been circulating for about a year, but the reality is still pretty impressive – for $2.3 Billion in cash and stock, Lenovo acquired all x86 systems line, including the entire rack and blade line, Flex System, blade networking, and the newer NeXtScale and iDataPlex. In addition, Lenovo will have licensed access to many of the surrounding software and hardware components, including SmartCLoud Entry, Storewize, Director, Platform computing, GPFS, etc.

IBM will purchase hardware on an OEM basis to continue to deliver value-added integrated systems such as Pure Application and Pure Data systems.

What IBM Keeps

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Lenovo Buys IBM x86 Server Business

Richard Fichera

Wow, wake up and it’s a whole new world – a central concept of many contemplative belief systems and a daily reality on the computer industry. I woke up this morning to a pleseant New England day with low single-digit temperatures under a brilliant blue sky, and lo and behold, by the time I got to work, along came the news that Lenovo had acquired IBM’s x86 server business, essentially lock, stock and barrel. For IBM the deal is compelling, given that it has decided to move away from the volume hardware manufacturing business, giving them a long-term source for its needed hardware components, much as they did with PCs and other volume hardware in the past. Lenovo gains a world-class server product line for its existing channel organization that vastly expands its enterprise reach, along with about 7,500 engineering, sales and marketing employees who understand the enterprise server business.

What’s Included

The rumors have been circulating for about a year, but the reality is still pretty impressive – for $2.3 Billion in cash and stock, Lenovo acquired all x86 systems line, including the entire rack and blade line, Flex System, blade networking, and the newer NeXtScale and iDataPlex. In addition, Lenovo will have licensed access to many of the surrounding software and hardware components, including SmartCLoud Entry, Storewize, Director, Platform computing, GPFS, etc.

IBM will purchase hardware on an OEM basis to continue to deliver value-added integrated systems such as Pure Application and Pure Data systems.

What IBM Keeps

IBM will keep its mainframe, Power Systems including its Flex System Power systems, and its storage business, and will both retain and expand its service and integration business, as well as provide support for the new Lenovo server offerings.

What Does it Mean for IBM Customers?

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Can Google Glass Overcome Social Stigma With Enterprise Scenarios?

JP Gownder

This week, Google released a new promotional video for Google Glass that featured a non-consumer scenario – public safety. In this case, firefighters can use Glass to help them in a hands-free way in the field. For example, they can pull up an architectural schematic of a burning building before they run inside. They can pull up design specs for specific models of cars before using the jaws of life to save a crash victim. Or they can locate the nearest fire hydrant. Take a look:

Public safety is well-established as a scenario for wearable technology – as Motorola Solutions and other vendors have shown in their product portfolios. In this case, it also pulls at the heart-strings: Who’s more beloved by the general public than firefighters and other first responders?

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Google's Smart Contact Lenses Extend The Long Tail Of Wearables

JP Gownder

On January 16, 2014, Google announced its smart contact lens project. But it’s not what you might have immediately thought (or hoped) – i.e., some sort of Google Glass display transferred to contact lens format. (Though that technology might someday exist). Instead, Google’s smart contact lens project is working toward productizing a healthcare wearable device that monitors blood glucose levels.

I’ve written a more extensive report that you can read and download here. But let me offer you a sneak peak at the analysis:

  • Smart contact lenses aim at diabetics, but will have other uses. Although Google didn’t mention these uses, blood glucose data is also valuable to other groups of patients – from overweight people aiming to lose weight to migraine sufferers.
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IBM is First Mover with Disruptive Flash Memory Technology on New x6 Servers

Richard Fichera

This week, IBM announced its new line of x86 servers, and included among the usual incremental product improvements is a performance game-changer called eXFlash. eXFlash is the first commercially available implantation of the MCS architecture announced last year by Diablo Technologies. The MCS architecture, and IBM’s eXFlash offering in particular, allows flash memory to be embedded on the system as close to the CPU as main memory, with latencies substantially lower than any other available flash options, offering better performance at a lower solution cost than other embedded flash solutions. Key aspects of the announcement include:

■  Flash DIMMs offer scalable high performance. Write latency (a critical metric) for IBM eXFlash will be in the 5 to 10 microsecond range, whereas best-of-breed competing mezzanine card and PCIe flash can only offer 15 to 20 microseconds (and external flash storage is slower still). Additionally, since the DIMMs are directly attached to the memory controller, flash I/O does not compete with other I/O on the system I/O hub and PCIe subsystem, improving overall system performance for heavily-loaded systems. Additional benefits include linear performance scalability as the number of DIMMs increase and optional built-in hardware mirroring of DIMM pairs.

■  eXFlash DIMMs are compatible with current software. Part of the magic of MCS flash is that it appears to the OS as a standard block-mode device, so all existing block-mode software will work, including applications, caching and tiering or general storage management software. For IBM users, compatibility with IBM’s storage management and FlashCache Storage Accelerator solutions is guaranteed. Other vendors will face zero to low effort in qualifying their solutions.

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Grow Your Business With A Green Data Center Strategy

Sophia Vargas

With budgets tight and new agendas for social, mobile and cloud, for many, green initiatives are middle to low priority, often considered but secondary to price and convenience.  So why should you care about green?

Customers today are increasingly interested in green alternatives. In the recent report Why Every Online Retailer Needs To Think Green, Sucharita Mulpuru uses Forrester’s consumer Technographics® data to reveal that more than 50% of today's US online adults can be categorized as green consumers, interested in buying green products or buying from brands that engage in green initiatives, such as supply chain transparency or carbon reporting. For online retailers, this represents a significant growth opportunity, as the majority of this consumer segment is not only classified as “high spending,” but also willing to spend more on green alternatives, and more likely to advocate for these products.

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Navigating the Legal and Audit Implications of BYOD Initiatives

David Johnson

While the consumerization of IT marches on, in its footsteps lurks the specter of unknown risk. We live in a world of zero-sum games of litigation where suffocating regulations are the norm, and failure to comply can draw millions in fines and lawsuits. Technology diversity multiplies the challenge of maintaining compliance — it’s no wonder so many IT shops take a one-size-fits-all approach to workforce computing and forbid bring-your-own-device (BYOD). But it doesn't have to be this way. It’s possible to craft an approach that brilliantly achieves the conflicting goals of embracing BYOD and consumerization while slashing the risks and costs at the same time. Our recent research on the topic comes from working with lawyers and auditors who specialize in technology law and compliance reveals that it can indeed be done.

You Still Have to Act But the Cure is Often Worse Than the Disease
The technology attorneys we interviewed for this research agree — once you learn that BYOD is happening in your organization, you have a legal obligation to do something about it, whether you have established industry guidance to draw on or not. The answer is seemingly simple: Take action to stamp out the risk. However, the answer isn't that straightforward because: 

  • The more restrictions you put in place, the more incentive people will have to work around them and the more sophisticated and clandestine their efforts will be.
  • There is no data leak prevention tool for the human brain, so arguably the most valuable and sensitive information walks around on two legs and leaves the building every night. Accepting this is important for keeping a healthy perspective about information risk on employee-owned devices.
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Three Business Scenarios That Justify Cloud Collaboration Deployment In Asia Pacific

Nupur Singh Andley

I am currently in the process of wrapping up a report on implementing cloud collaboration solutions in Asia Pacific. For this report, I interacted with technology vendors, collaboration service providers, and customer organizations to understand the current state of cloud collaboration adoption in Asia Pacific and the drivers and key criteria that organizations need to consider when evaluating a solution and service provider. Three distinct business scenarios emerged as the most appropriate for cloud collaboration services deployment:

  • To reduce the total cost of ownership. Compared with an on-premises infrastructure, public cloud deployments offer a lower total cost of ownership to individual companies, as multiple customers share the service provider’s infrastructure and associated costs such as hardware, software upgrades, and IT maintenance. While it’s beneficial for organizations across all segments, it’s especially advantageous for small and medium-size businesses with limited IT budgets and small IT teams.
  • Implementation in greenfield projects. Existing legacy communications infrastructure investments discourage customers from adopting cloud solutions. But this works well for newly established companies, as it offers better flexibility and efficiency at a lower operating cost — a critical business requirement, especially during the first few years of operation. Furthermore, lower upfront expenses help customers boost business agility and utilize funds for functions that are critical to operations and help them gain a strategic advantage in the marketplace.
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