Just-In-Time Capacity

Jean-Pierre Garbani

One of the great revolutions in manufacturing of the past decades is just-in-time inventory management. The basic idea is to provision only what is needed for a certain level of operation and to put in place a number of management functions that will trigger the provisioning of inventory. This is one the key elements that allowed the manufacturing of goods to contain production costs. We have been trying to adapt the concept to IT for years with little success. But a combination of the latest technologies is finally bringing the concept to a working level. IT operations often faces unpredictable workloads or large variations of workloads during peak periods. Typically, the solution is to over-provision infrastructure capacity and use a number of potential corrective measures: load balancing, traffic shaping, fast reconfiguration and provisioning of servers, etc.

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Of Social Computing And Filtering Through The Information Deluge

Jean-Pierre Garbani

While it may have taken humans thousands of years to progress from oral to written to audio and then to video communications, in the past five years, the Internet has accelerated at a breakneck pace through all of these different communication transmission stages. It started as a way to post and communicate text and still pictures, then moved to digital voice and music, and then took a giant step to video delivery, bringing you news, sports, movies, whenever and wherever you wanted to view them. The Internet is now the prime platform for distributing video content, effectively replacing your video store and your cable or broadcast distribution.

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The Strategic Role Of IT Management Software

Jean-Pierre Garbani

Among critical industrial processes, IT is probably the only one where control and management come as an afterthought. Blame it on product vendors or on immature clients, but it seems that IT management always takes a second seat to application functionalities.

IT operation is seen as a purely tactical activity, but this should not occult the need for a management strategy.  Acquiring products on a whim and hastily putting together an ad hoc process to use them is a recipe for chaos. When infrastructure management, which is supposed to bring order and control in IT, leads the way to anarchy, a meltdown is a forgone conclusion.

Most infrastructure management products present a high level of usefulness and innovation. One should be, however, conscious of the vendor’s limitations. Vendors spend a lot of time talking about the mythical customer needs, while most of them have no experience of IT operations. Consequently, their horizon is limited to the technology they have, and that tree does hide the forest. Clients should carefully select products for the role they play in the overall infrastructure management strategy, not solely on the basis of immediate relief. As the world of IT Operations is becoming more complex every day, the value of an IT management product lies not only with its capability to resolve an immediate issue, but also in its ability to participate future management solutions. The tactical and strategic constraints should not be mutually exclusive.

Enterprise Mobility Inquiry Analysis: What Key Questions Are Clients Asking Forrester Analysts?

Michele Pelino

Each year, Forrester analysts field over 20,000 inquiries on a variety of topics, which provide insight into the key issues and challenges facing our clients in a variety of roles, including CIOs, enterprise architects, vendor strategists, and marketing professionals. Forrester defines enterprise mobility as the ability of an enterprise to communicate with suppliers, partners, employees, assets, and customers irrespective of location. During 2009, analysts fielded nearly 700 inquiries related to enterprise mobility issues, jumping from 550+ inquiries in 2008 and 360+ inquiries in 2007. What are these inquiries asking about? The key focus of these inquiries is on mobile applications, mobile devices, and mobile employee segmentation.

Questions about mobile applications accounted for over 20% of all enterprise mobility inquiries in 2009. The  majority of these application inquiries were focused on vertical applications, including fleet management solutions in the transportation industry that enable more efficient, real-time routing of vehicles. Today, email and calendaring mobile applications are mainstream in most enterprises, so many companies are broadening their mobile application initiatives to address the needs of particular types of line-of-business workers in their industry (e.g., retail, healthcare, transportation, financial services.) We expect continued growth in the number of mobile application inquiries during the coming year.

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Multiple Mobile Application Development Approaches Present New Vendor Opportunities

Michele Pelino

Enterprises are deploying a wide range of horizontal and vertical mobile applications. Results from Forrester’s 2010 Network and Telecom survey of IT decision makers at North America and European firms show that horizontal mobile applications such wireless email, have been implemented or are being implemented by 86% of firms, and calendaring and personal information management applications have been deployed by 68% of firms. The next wave of mobile application deployment is focused on meeting the needs of line of business (LOB) workers such as sales force and field service professionals, or industry-specific requirements such as inventory management applications in retail, or location-based applications in the transportation arena. Survey data shows a persistent level of application implementation and planned deployment among 14% – 19% of enterprises for mobile sales force, field service and emergency response applications.  We expect this mobile LOB application deployment to gain momentum in 2010.

The methods enterprises use to acquire and develop these mobile applications vary widely. Homegrown or in-house mobile application development is commonly used by 40% of North American and European enterprises. Approximately 30% of all enterprise organizations use a local, regional, or national external developer for mobile application development requirements. North American enterprises are significantly more likely to purchase mobile applications from a mobile service provider portal site or from a mobile application store. Between 24% and 29% of North American enterprises use these two types of mobile application development approaches, compared with only 11% to 15% of European firms. 

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New Mobile Data Plans Are A Win-Win For Customers And For AT&T

Michele Pelino

On Monday, June 7th, AT&T will introduce two new smartphone data plans, which will replace the current $30/month unlimited data plan offer and will make smartphone data packages affordable to more customers. The DataPlus package does, indeed, lower the entry-level price for smartphone users. The DataPlus package costs $15 per month for 200 megabytes of data, with the option of purchasing an additional 200 megabytes of data for $15. Customers who are heavy data users can purchase the DataPro plan, which is a 2-gigabyte package for $25 per month. If customers go over this limit, an additional gigabyte of data costs $10. DataPro customers can also use their mobile devices as wireless modems to connect other devices (e.g., laptops) to the network for an additional $20 per month.   

The net-net of these new packages is that customers using the DataPlus plan get a voice and data plan for $55 per month and customers on the DataPro plan pay $65 per month, compared with the current price of $70 per month. These price cuts will benefit the increasing number of employees who are responsible for paying for their own voice and data plans. Results from Forrester’s 2010 Enterprise And SMB Networks And Telecommunications Survey show that approximately 30% of over 1,000 surveyed enterprises have already cut the number of employees who qualify for corporate-liable mobile data and voice services, and 17% plan to cut the number of employees on corporate-liable voice and data services this year.     

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Business Services Value Analysis

Jean-Pierre Garbani

The choice between different formats of cloud computing (IaaS, SaaS mostly) and their comparison to internal IT business service deployment must be based on objective criteria. But this is mostly uncharted territory in IT. Many organizations have difficulties implementing a realistic chargeback solution, and the real cost of business services is often an elusive target. We all agree that IT needs a better form of financial management, even though 80% of organizations will consider it primarily as a means for understanding where to cut costs rather than a strategy to drive a better IT organization.

Financial management will help IT understand better its cost structure in all dimensions, but this is not enough to make an informed choice between a business service internal or external deployment. I think that the problem of which deployment model to choose from requires a new methodology that will get data from financial management. As I often do, I turned to manufacturing to see how they deal with this type of analysis and cost optimization. The starting point is of course an architectural model of the “product”, and this effectively shows how valuable these models are in IT. The two types of analysis, FAST (Function Analysis System Technique) and QFD (Quality Function Deployment), combine into a “Value Analysis Matrix” that lists the customer requirements against the way these requirements are answered by the “product” (or business service) components. Each of these components has a weight (derived from its correlation with the customer requirements) and a cost associated to it. Analyzing several models (for example a SaaS model against an internal deployment) would lead to not only an informed decision but also would open the door to an optimization of the service cost.

I think that such a methodology would complement a financial management product and help IT become more efficient.

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VMware’s Cloud Portability Promise Powered By Google

Stefan Ried

VMware’s Cloud Portability Promise Powered By Google

Every week the platform as a service (PaaS) market has something exciting happening. After VMware recently announced a partnership with salesforce.com to jointly develop vmforce, the virtualization expert today managed to be part of Google’s latest announcement of Google’s App Engine for Business. This is specifically important for ISVs.

Still, one of the biggest strategic concerns that ISVs have in  moving their applications into the cloud is the long term safety of an investment into a single technology stack or hosted PaaS offering. Led by IBM and other major vendors (except Google) the open cloud manifesto was launched last year along with other standard efforts to make the cloud more interoperable and portable. Actually, many cloud offerings even mean a double lock-in for ISVs – into the specific new technology stack and in many cases into the single hosting service of the PaaS vendor. The history of Java and web services teaches us that the path through standard bodies can be a solid basis to avoid these vendor lock-in situations. However, the tech industry has also learned, mainly from Microsoft, that the establishment of de-facto standards, evolved out of originally proprietary approaches, can in some cases be a faster path to market share.

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SAP Acquires Sybase To Capture Mobile Momentum

Michele Pelino

Earlier this week SAP acquired Sybase for $5.8 billion. Blogs from my colleagues Stefan Ried and Holger Kisker primarily address the database and business analytics components of the acquisition. However, it is important to recognize how prominently SAP emphasized Sybase’s success as a mobile middleware platform and solution provider as a key driver of the acquisition. SAP highlighted the importance of extending mobile applications to billions of mobile users worldwide over any device as a strategic imperative. Forrester’s 2010 survey of IT decision makers in nearly 2,000 North American and European enterprises highlights the critical role of mobile applications and smartphone devices in corporate strategic initiatives. When it comes to mobile applications, 45% of enterprises prioritize supporting more mobile applications for out of office users as a critical or high priority in the coming year, and 33% state that supporting more mobile applications for employees who work in the office is an important or critical priority. In addition, supporting the use of more smartphones is an important or critical priority for 44% of enterprises.

The Sybase acquisition will enable SAP to deliver mobile applications to the growing number of individuals using mobile devices and smartphones. Sybase has a suite of mobile solutions including the Sybase Unwired Platform, a mobile client development platform which supports device platforms including RIM, Google Android, and Apple iPhone. The Sybase 365 mobile messaging platform supports messages for over 700 enterprise customers, including many leading communication service providers. Mobile assets account for about one third of Sybase’s $1.2 billion revenues, and are the fastest growing segment of the business.

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Finally, SAP Is Acquiring (At Least A Mobile) Middleware

Stefan Ried

Finally, SAP Is Acquiring (At Least A Mobile) Middleware

SAP’s customers and the analyst community have been speculating about the possibility of SAP acquiring a middleware company for a while. After it had missed out on acquiring one of the heavyweights like BEA and hesitated over TIBCO and Progress Software, SAP and Sybase agreed yesterday on the $5.8 billion transaction.

Sybase used to be a database, but its database’s visibility in the market decreased so dramatically that, in a recent Forrester survey, it wasn’t considered to be a primary database choice by any application domain. A good share of the 4% of open source databases used in the ERP space are actually SAP’s open source MaxDB (based on SOFTWARE AG’s original ADABAS D), which is a default for SAP systems if a customer doesn’t provide a third-party database like Oracle or DB2. SAP is unlikely to replace this default database with Sybase. This would be an even less important database than MaxDB, which integrates well with NetWeaver. But different analysts have different opinion and you might like to look for Boris Evelson's take on the impact of Sybase's database. If SAP runs a careful post-merger process, it will recognize Sybase’s database knowledge and employ all the engineers who have already developed in-memory database capabilities to bring Hasso’s idea from the Palo Alto “garage” to full product availability. While SAP has deployed in-memory capabilities in its analytics technology stack, the in-memory capabilities for transactions are still in the lab.

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