This is a roll-up of all Forrester blogs written for Technology Industry Professionals. Role-specific blogs are listed below. Visit Forrester.com to learn how we make Technology Industry Professionals successful every day.
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.
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.
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.
Affirming Polycom’s faith in Andrew (Andy) Miller’s strategy (he has been the public face of Polycom’s drive to develop an open collaborative ecosystem), the board announced today that he will replace Robert (Bob) Hagerty as CEO. Mr. Hagerty is also leaving his position as Chairman of the Board, where he will be replaced by lead outside director, David DeWalt, the CEO of McAfee, who has been on Polycom’s board since 2005. Bob will be retained in an advisory role by Polycom’s Board of Directors, and will support Andy in executing his strategy, but primarily he plans to pursue a more relaxed pace of business activity following his departure.
Andy Miller joined Polycom approximately 10 months ago as executive vice president of global field operations, having been a senior executive in the industry for nearly two decades. Mr. Miller held senior roles at Monster and then IPC Systems (a communications reseller/integrator) after serving TANDBERG as CEO from 2001 to 2005. Prior to joining TANDBERG as CEO, Mr. Miller had been with Cisco Systems serving in a variety of senior marketing and sales roles. Mr. Miller has been a vocal proponent of delivering video and audio communications (not just conferencing!) in the context of the open, unified communications value chain. He is the executive I believe to have been most influential in the formation of the Polycom Open Collaboration Network, and I expect to see more from him and Polycom on that topic soon!
A combination of factors is combining to reshape and recast the IT services sector. These factors include the continued weak economic environment, the further development of a global delivery model (GDM), new uses of technology across clients’ go-to-market and supply chain ecosystems, the adoption of cloud and SaaS utility-based pricing and delivery models as well as the adoption of a selective sourcing model by buyers. Forrester asserts that these changes will have a dramatic impact on the make-up and dynamics of the IT services business just as the shift to PCs dramatically changed the minicomputer/hardware market in the late 1980s and early 1990s.
Over the past several weeks my colleague John McCarthy and I have conducted extensive research around the future of the IT services market which forms the basis of our forthcoming major research report to be published in June 2010. We talked to approximately 20 of the leading vendor strategists from both leading service provider organizations as well as other key market players like ISVs, SaaS providers and communication services firms. We now offer interested vendor strategists the unique opportunity to hear from us what the major outcome of the research was and what key implications and recommendations they draw for vendor strategists. For this we have designed a workshop format that will deal with the following key questions:
Will the emergence of cloud and SaaS impact the traditional IT services market?
When and how will that impact play out?
How will the economic slowdown and declining IT budgets impact users’ services spending?
What are the key attributes for success in the new services market?
If you are interested in such a workshop (either in person or via web conference) please let us know and we will be happy to schedule according to your needs.
HP acquired Palm for $1.2 billion in cash, ending recent speculation over who would purchase the struggling handheld device manufacturer. On the surface, this acquisition appears to bolster HP’s mobility strategy with Palm’s webOS mobile operating system, carrier relationships, experienced mobility personnel, and intellectual property.
However, if you look under the hood, this acquisition has a key flaw. HP currently offers iPAQ PDAs and handsets that use Microsoft’s Windows Mobile operating system, but these devices have had limited success among enterprise users. Will acquiring Palm put HP in a strong position against other competitive mobile operating systems vendors? Not necessarily. In Forrester’s survey of over 1,000 IT decision makers in North American and European enterprises, only 12% of firms officially support or manage Palm devices. In comparison, 70% of enterprises support BlackBerry smartphones, and 29% support Apple iPhones. Android devices, the newest entrants in the mobile OS wars, have strong momentum and are officially supported by 13% of firms.
HP did gain some important assets as part of the acquisition. Palm's carrier relationships are a plus, and HP can leverage its strong international distribution channel to expand the reach of these mobile devices on an international level. Palm’s highly skilled employees, mobile operating system R&D expertise, and intellectual property are also a benefit. In the short term, HP’s acquisition gave Palm a new lease on life, but given the intensely competitive mobile device landscape, HP’s $1.2 billion investment may not pay off in the long term.
VMware And salesforce.com Join Forces To Push PaaS To Mainstream Adoption With vmforce
salesforce.com and VMware announced today the development of a joint product and service offering named vmforce. Forrester had a chance to talk to executives at both companies prior to the announcement, and I am quite impressed by the bold move of the two players. Most developers in corporate environments and ISVs perceive the two stacks as two totally different alternatives when selecting a software platform. While the VMware stack, with its Tomcat-based Spring framework, reached mainstream popularity among Java developers with its more lightweight standard Java approach, salesforce.com’s Force.com stack was mostly attractive to developers who liked to extend CRM packaged apps with individual business logic or to ISVs that created new applications from scratch. In some cases, the Java standard and the more proprietary APEX language at Force.com even appeared as competitive options.
Over the past three years I have increased my analysis of the video communications market as our clients curiosity about video has mounted. I would like to invite you to continue this video research agenda with me by sharing your best and worst video experiences, but first some background.
Three years ago I published a report titled “Videoconferencing Rises Again” in which I predicted a rise in adoption and utilization of video conferencing. In researching this report, I heard a great deal about the ways in which video improved processes as diverse as corporate training, product development, and field force management – and the various video solutions that best served these processes. These processes were better served using a new breed of video solutions that relied on high definition resolution (codecs and displays), dependable IP-based networks, and intuitive user interfaces. Since then video conferencing deployments and utilization have risen again- - like the phoenix rising from the ashes.
These technological enablers have been supported by the remarkable adoption of video in consumer and social networking solutions, giving rise to a ‘video-native’ generation entering the workforce. In short order, Forrester clients have taken note and the number of our clients who have inquired about business video has nearly doubled each year as shown in this graph from my most recent video report titled “How Tech Strategists Can Ride The Coming Tidal Wave Of Business Video.”
Tuxedo is Oracle’s application environment for the non-Java languages. Like most “legacy” transaction servers, Tuxedo provides major large enterprise functionality to the programming languages prior to Java. Tuxedo had focused on C/C++ and COBOL until now. Among a couple of innovations, the most exciting news in the just-announced Oracle Tuxedo 11g release is the support for Ruby and Python. This pushes these newer languages immediately up the enterprise performance and reliability scale, making them comparable to COBOL, ABAP, and NATURAL.
The huge challenge for Oracle after this move will be to get access to the Ruby and Python developer communities. Most of them are looking more at open source runtime environments than at heavyweight enterprise transaction environments. However, this latest move by Oracle may resonate with these young open source natives, who’ve gone from university to their first job at banks, insurance companies, and other traditional mainframe shops. Ruby and Python on Tuxedo could be appropriate choices for those developers who want to move stuff off a mainframe but don’t want to get into COBOL on the new platform again.