Introducing The Service App Store

Do you believe in "Enterprise App Stores" ?

App stores are the embodiment of public cloud services ranging from consumerized mobile apps to software- and infrastructure-as-a-service in the enterprise context. A great and simplified user experience drove mass adoption with consumers.

Will these cloud app stores simply evolve to meet the demand of corporate processes and compliance? Private clouds and software distribution to corporate laptops and desktops so far have not been able to catch up to the same level. So, there is definitely demand to bring the consumer innovation into corporates. 

But don't forget the the modern IT management software (ITMS) suites, which offer some self-service functionality. Still the coherent, end-to-end self-service experience across all types of users, assets, and already multiple deployment targets is still far away from the consumer world. But, ITMS software is also an equal starting point.

The situation in real enterprises is even worse. It is not only the absense of a good employee engagement around IT-service self service and user experience. It's more the fact that IT departments deliver traditionally many services that employees don't want any more. We've seen employees that haven't stored a single document on the corporate Sharepoint installation, but use box.net instead; or employees that haven't created a single Excel spreadsheet for a while and use for example Google Apps instead; or employees who would love to downgrade their personal ERP profile to what they really need, if they get the saved money back. Once you create cost transparency and offer them to "un-subscribe" from tradtional software and subscribe to new (cloud) service instead - you embrace modern technology mangement and could drive the next wave of cost savings. This can be an essential milestone in the a business technology agenda.

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Deutsche Telekom And Salesforce.com: The Advent Of A SaaS Colocation?

There are a couple of announcements today at salesforce.com’s local marketing event in Munich. Definitely the most important one — and the one that customers have been eagerly awaiting — is the joint announcement from Salesforce and T-Systems, the systems integration branch of Deutsche Telekom (DT). Earlier, Salesforce announced that it’s planning to build a data center in Germany, which is definitely the best way to comply with German data privacy laws and the emotional concerns of German customers around privacy. But as a US-headquartered company, just operating a data center is not enough; companies need to create trust and have experience in fulfilling legal and regulatory compliance mandates. This makes T-Systems exactly the right partner for Salesforce: It’s big enough to compete with data center heavyweights like Fujitsu, HP, and IBM but local enough to understand German customers and law.

The picture shows DT CEO Timotheus Höttges and Salesforce’s Marc Benioff just a few minutes ago.

Let’s look into more details of T-Systems’ offering how it relates to salesforce.com. First of all, it will simply feel like any other Salesforce data center. Customers will see absolutely no difference, regardless of whether their “tenant” is running on the East Coast, West Coast, or the US-based data center dedicated to European customers. In the future, they can choose the Salesforce UK data center and, starting in 2015, a Salesforce Germany data center. All are fully managed by Salesforce, operate on the same code base, and will get new releases and upgrades at the “same” time.

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Salesforce.com’s PaaS Unification Might Start Now

Salesforce.com has two unequal brothers in the platform-as-a-service (PaaS) space. While force.com is the basis and natural extensibility platform for the core CRM system, the Heroku platform acquired at the end of 2010 addresses developers with open source stacks. The two of them could not be more different. Force.com is an application-centric PaaS that attracted a huge ecosystem building add-ons around Salesforce.com’s Sales, Service, and Marketing application. They all work together somehow because of the very limited freedom for developers. All apps usually start with the same canonical CRM data model, use the same data object store, use the same proprietary programing language (APEX), and use the same user interface techniques. That’s why force.com apps or add-ons fit nicely into the business buyer's perspective.

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Bosch Connected World - Internet Of Things Made In Germany

Internet of Things is a hype - no question. But let's talk about the INTEGRATION Of Things. 

It’s been a while since Bosch completed the acquisition of the Germany BPM and Integration vendor Inubit AG in October 2011. Two years later Inubit has not only well arrived in the Bosch Group, it became even the nucleus of Bosch’s allover software business and helps the traditional manufacturer of automotive parts and consumer electronics to embrace an additional business model of a software vendor.

Nevertheless calling the conference ConnectedWorld articulates the repositioning of the former general purpose BPM and Integration software into the internet of things. This is where Bosch with its dominant automotive footprint and their good market share of home appliance in Europe is strong. It is a natural move to focus Bosch Software Innovation’s in the areas of Bosch core business. In this context, it is no surprise that every second visitor of the show is a Bosch employee who likes to understand if and how their Bosch units can use the new software assets. Ideally this results not only in internal use, but in joint external products. Today the clear majority of Bosch's software revenues are external and not yet related to other Bosch products.

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Cloud Economics 2.0 - German Stock Exchange - Deutsche Börse - starts cloud computing exchange

We are entering the second wave of cloud computing: The Public Cloud Economics

Most enterprises understand well cloud topologies (virtualization) and privacy levels (private, virtual-private, and public), or simply the different resource types (IaaS, PaaS, or SaaS). Some even embraced pretty sophisticated technologies like cloud bursting – the dynamic relocation of workloads. However, compared to this sophisticated understanding of technology, the understanding the current or even future economic models of cloud computing lags behind.

More than a year ago, Forrester introduced the corporate perspective of cloud economics with James Staten’s report Drive Savings And Profits With Cloud Economics. The major cloud providers surprised us also with many innovative business models, such as Amazon’s AWS Reserved Instance Marketplace last September. As an alternative to the fully flexible on-demand model, customers can also buy a one- or three-year contract for a compute instance and could save up to 60%. However, the risk is that you bought more than you need or simply the wrong instance types. The marketplace allows now selling off these half used contracts to other customers.

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Tell Us About Your Real Cloud Story In Germany

 

Forrester research compares frequently capabilities of software vendors and cloud platforms in our Forrester Waves™. John Rymer and James Staten recently published the comparison of Enterprise Public Cloud Platforms. I am currently researching such a Forrester Wave™ around Hybrid² Integration capabilities. This is the integration between cloud and on-premise and across different traditional integration tools. 

However, all these Forrester Waves™ have one significant gap. They all start with a product or service offering by a vendor or (cloud) service provider. Analysts at Forrester Research investigate for sure if the vendor statements are real, watch demos and we try out products on our own before we write about it. One part of the Forrester Wave™ process is also customer interviews, which validate that product features work in reality. All criteria, scores and notes are published to our clients, not only a final PDF. 

So where's the gap in such a thorough process? Well, the starting point is always the capabilities that product vendors and service providers claim – never the actual challenge withing the enterprises! I was not aware of any assessment or competition, which really starts here – with a real client challenge and project! Maybe one enterprise ends up using a unique combination of different products and cloud services. 

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Software AG’s Cloud "Coming-Out"

 

Software AG today announced its cloud strategy. It is based on services that are already available, one that will soon be available (H2 2013), as well as a service planned for Q1 2014.

Journalists have already been in touch with me, asking the following question: Is this an overdue “coming out” after many competitors have already announced or offered extensive cloud strategies — or is this a courageous act from a leading technology firm demonstrating its strength in innovation?

I've known Software AG quite well for many years and believe that today’s announcement marks the next stage in a 10-year corporate turnaround strategy. I well remember the time before Karl-Heinz Streibich took over a nearly bankrupt software vendor 10 years ago. Since then, the firm has been through a financial stabilization phase, which saw both a spending and innovation freeze in many areas. Then, Software AG started to renovate its existing products to stabilize its market share, innovating both carefully and cost-effectively. The third phase saw its acquisition of webMethods and IDS Scheer, which brought the firm sufficient scale in both current products and consulting services. For more details, see my earlier blog post.

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Hana Enterprise Cloud - Pro and Cons

 

 

 

 

 

 

 

 

Prior to its annual Sapphire event next week, SAP today announced the new SAP HANA Enterprise Cloud. As I have followed SAP’s platform and cloud strategy for years and covered platform-as-a-service (PaaS) in general for Forrester since the beginning, I’d like to quickly share my point of view:

 

PLUS

SAP is targeting the very large enterprise market with the Hana Enterprise Cloud.

Vishal pointed out today that some of the largest SAP customers run SAP systems on their premises that, with a single tenant, are far bigger than many of the native SaaS apps – with all of their tenants. All SAP products are available on Amazon’s AWS; however, many SAP customers use it just for dev, test, and disaster recovery. SAP's message is based on the trust relationship it has by combining an ISV and managed service provider in one company. Amazon won't care about any of the issues that customers might have with larger HANA systems on their general-purpose hardware. So, we are talking about a trust relationship between customers and SAP, which is more similar to salesforce.com than to Amazon.

 

MINUS

Half-baked business model

The Hana Cloud is a very careful move to a new business model. It is not disruptive and will NOT accelerate Hana usage to the many more customers who have been struggling with Hana on-premises because of its licensing.

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Forrester Introduces The Business Network Concept

We published the Business Network concept a month ago with this report: BUSINESS NETWORKS WILL PUSH THE CLOUD BEYOND IT

It's now my pleasure to share the definition on my public blog above. You'll see that the real-time sharing is an interesting characteristic of the Business Network concept. Actually, cloud computing and the further development of multitenancy architectures into a "collaborative tenancy" are an important enabler for Business Networks. Traditional B2B vendors, middleware vendors, and PaaS vendors are eager to get a share in the emerging world of cloud enterprise collaboration. 

But, the first step is with the CIOs: They have to identify these business scenarios where a trust-relationship-model can save manual effort or stimulate totally new business models. This helps CIOs finally deliver the vision of Business Technology, which innovates their companies' core business and not just the way they run IT.

Forrester clients can now download the webniar to this topic here: BUSINESS INNOVATION WITH BUSINESS NETWORKS IN THE CLOUD -- A CIO'S CALL!

You'll see in the right column next to this post an POLL. Please let us know your opinion about Business Networks and if it makes sense for you at all. Thanks!

 

Stefan Ried

Platform-As-A-Service: Cloud Providers' Silver Bullet?

I’ve been writing about platform-as-a-service (PaaS) since the beginning of 2009, and we published our first Forrester Wave™ on the PaaS market about 18 months ago. While the lines between IaaS, PaaS, and SaaS are blurring in the minds of some end users and developers, delivering PaaS requires a lot more intellectual property on the part of the cloud provider. IaaS is “just” the offering of an industrialized infrastructure service — but full PaaS service turns the cloud provider basically into a real software vendor or VAR of a decent stack of software platform components.

The market has undergone amazing changes since 2009 and the market landscape has been shaken up considerably since the last Forrester Wave. Why? A number of vendors have joined the crowd from three different directions:

  • IaaS cloud providers such as Amazon are moving up the stack to PaaS. From advanced database, messaging, and parallel processing to identity management and federation services, Amazon is arming itself with a myriad of value-added PaaS services to combat margin pressure in the commoditizing pure infrastructure space. Other IaaS providers are about to follow, most by OEMing PaaS stacks like those from Cordys or LongJump, or some other PaaS stack that is available to third-party infrastructure provider models.
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