Nokia recently announced that it will focus on expanding its US presence by strengthening relationships with communication service providers and developing smartphones to address US customer requirements. We have heard this US market focus refrain from Nokia multiple times during the past few years. Nokia is the leading handset manufacturer in many other regions of the world, but the company has not had the same success in the US. Can Nokia succeed with its US market efforts this time around? To succeed, Nokia must address three key issues:
Consumer smartphone usage is driving US market momentum. Nokia’s strength is in developing enterprise grade smartphones; however, the US smartphone market is increasingly driven by consumer purchases. Results from Forrester’s survey of IT decision-makers in North America reinforce this trend with approximately 60% of firms in North America providing some level of support to some types of personal mobile devices.
Intense competition is coming from other mobile device manufacturers with a strong presence in North America. To succeed in the US market, Nokia will face stiff competition from RIM, Apple, and Android smartphones. RIM’s BlackBerry devices are the most commonly used operating system among North American enterprises, with 73% of firms officially supporting these devices. We are also seeing a rise in enterprise support of new types of mobile operating systems to support iPhone and Android smartphones. Currently 30% of North American enterprises support iPhone devices, and 16% support Android devices. In comparison, Symbian operating system devices, which Nokia develops, are currently only supported by 4% of US firms.
Oracle’s keynotes and salesforce.com’s presentation next door have never been more confusing and contradictory for large users than they were today. Larry Ellison gave the 41,000 attendants of this year’s OpenWorld a cloud computing 101 session prior to the launch of the new EXALOGIC appliance, a machine engineered to run the Oracle Fusion Middleware stack very efficiently. After he rejected talking about the cloud for years, he swung over to the opposite end of the spectrum. Even though EXALOGIC is mainly aimed, in its first version, at private data centers, Larry simply renamed the virtualized data centers as private clouds and promised customers that they will get an elastic cloud with the help of the EXALOGIC box.
On the other side, salesforce.com’s Marc Benioff called every server on premise the “false cloud,” basically implying that something like a private cloud is simply a stupidity in itself.
Who is right or wrong in this debate? Is Larry simply doing cloud-washing at its best, or is Marc running a “false marketing” campaign, calling everything except his own cloud the “false cloud”?
Let’s understand how Forrester believes a private cloud differentiates itself from a traditional but modern and virtualized data center:
Informatica also added more enterprise-level connectivity and a 24x7 support to its cloud offering, thus making it more enterprise ready than ever.
Let’s have a look at these trust.platform.com sites for a minute and analyze the value of this new way of communicating availability:
It actually looks like the industry is moving away from the traditional service-level agreement (SLA) communication, with its well-defined statistical availability number of 99.9%, 99.995%, etc. I believe that this makes a lot of sense for most cloud computing platforms in the SaaS and PaaS category, as I noted in my recent blog on cloud computing taxonomy:
During the past few months, telecom service providers including AT&T, Sprint and Verizon have highlighted their roadmaps and deployment plans for 4G network technologies. These 4G technologies include Long-Term Evolution (LTE) and WiMax networks. Enterprises in North America and Europe are in the early stages of 4G network adoption based on results from Forrester’s SMB and Enterprise Networks and Telecommunication survey. Approximately 4% of surveyed enterprises currently implement or are expanding their implementation of fixed or mobile WiMax networks, and 3% of firms are implementing or expanding their implementation of LTE networks. These implementation percentages are expected to increase as the service providers pursue their 4G deployment initiatives.
Software AG announced today a significant change in their executive structure. After the acquisition of webMethods back in 2007, the second largest software vendor in Germany acquired IDS Scheer last year, at topic we explored already in this report.
If you follow Software AG over this time, you might realize that the way CEO Karl-Heinz Streibich runs a post merger process may involve dramatic disruptions in the executive structure of the company. Dave Mitchell, the former webMethods CEO left some months after that acquisition. Today, the Chief Product Officer, Dr. Peter Kürpick surprisingly left the company. Peter was a member of the executive board since 2005, and, although his contract officially runs until 2013, he is leaving at his own request immediately. He stood for the successful turnaround of Software AG’s product strategy and repositioned Software AG from an outmoded mainframe shop into a leading global integration player. The successful merging of Software AG’s mainframe and integration know-how with the newer webMethods product stack into one interoperable integration stack was one of Peter’s major achievements. Peter also took over the responsibility for Software AG’s ETS (mainframe) product strategy after the integration business reached a solid stability. He would have had the skills and experience to create a consistent technology stack spanning from the mainframe over the WebMethods integration up to the business architecture tools of IDS Scheer (ARIS).
What is the opportunity for Microsoft partners (or other VARs, SIs, ISVs and technologists) in the emerging cloud computing space? Don't think of cloud as a threat but as an opportunity to ratchet up your value to the business my evangelizing and encouraging their transition to the cloud. How? At the recent Microsoft Worldwide Partner Conference I addressed this issue in an Expo Theater presentation. Missed it? Now you haven't:
Many cloud computing services in the consumer space are per se for free. Even sophisticated platform-as-a-service (PaaS) environments are coming from most vendors with a free sandbox environment and start charging finally the productive use. The obvious question I hear from many vendors today is how to monetize platforms and applications in the cloud. The situation for established ISVs of business applications can be even worse: The cloud might significantly cannibalize existing license revenue streams. Thus a transformation of existing business models and vendor strategy is anything but easy.
Addressing this challenge, I'd like to point you to a Forrester workshop “Selling The Cloud” on 30th September in London.
The workshop will focus on a evaluating your “cloud readiness” and consequently help develop your cloud strategy through the use of a self assessment tool. This is a great opportunity to learn an effective method for improving the business results of any migration to a cloud-based service. You can actually predict which, if any, of your products will be successful in a cloud deployment.
The workshop will be hosted by Stefan Ried, Senior Analyst at Forrester and in case you’re interested, here’s a Web page with an agenda: View Workshop Details.
You can register right on the site or, if you’d like more information, you can contact an Event Sales Representative at +1 888/343-6786 or email@example.com
You can also simply leave a comment to this blog, asking any question to the event agenda and value.
We just published a new report entitled "The Evolution Of Cloud Computing Markets". It recaps many of the cloud computing market observations from the last two years and categorizes the business models in a consistent taxonomy. Basically all current offerings from pure Infrastructure as a Service, in the upper left, via virtualization tools up to SaaS applications can be categorized by this. We explain the key characteristics of each business model and give vendors guidance to position and communicate their cloud service.
Beyond the preview on this blog, the full document predicts the future market momentum around:
Informatica is one of the traditional leaders when it comes to data quality and data integration. More than 4,000 customers trust Informatica's software products globally and drive more than half a billion dollars in revenue. Informatica solves many of the traditional data integration challenges, for example, between custom developed apps and packaged ERP solutions. As a result, IT operations professionals and enterprise architects are well aware of Informatica’s solutions. However, what has gone under the radar so far is Informatica's cloud computing approach. For about two years now, Informatica has provided www.informaticacloud.com, a cloud-based integration offering, for customers. Informatica recently announced a new version of this service, and Forrester had the chance to talk to the vendor prior to the launch. The new solution offers an improved service for data quality, B2B data transformations, and a number of continuous improvements. But what really caught my attention is Informatica's well-kept secret of a sophisticated agent technology.
Back-office managers and European customers have ignored the message — until now
I am starting to see signs of important changes in technology and IT organizations. The increased complexity of IT and business services forces the industry down a new path. In this context, there are signs reminiscent of what happened to the mainframe vendors in the late 80s and early 90s, when the transition from proprietary to open systems was usually not very successful. In fact, the major players of today (with the exception of IBM) were small potatoes in the 80s, while the major players of that time are either gone or dying. And some vendors today seem to be following the same recipe for eventual disaster.
What’s happening, in the case of a major change of market direction in a company with revenue based on old technology, is what I would call a “sales force failure.” This is the inability of the sales force to get out of its base of usual customers and compete head to head with new vendors in the new market.
Usually these organizations are technically capable of building up-to-date products, but the sales results often don’t meet expectations. Since the new product created internally does not sell, the company management may be tempted to fix the problem (i.e., satisfy the shareholders in the short term) by cutting the cost center, that is the engineering organization making this new product. With R&D gone, the marketing group may license another product to replace the one that it killed. Of course, the margins are not the same, but the cost is almost nonexistent. Eventually, this product does not sell either (the sales force is still in the same condition), and, when the old legacy products are finally dead, the company is no more than a value-added reseller.