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.
Technology growth is exponential. We all know about Moore’s Law by which the density of transistors on a chip doubles every two years; but there is also Watts Humphrey’s comment that the size of software doubles every two years, Nielsen’s Law by which Internet bandwidth available to users doubles every two years, and many others concerning storage, computing speed, and power consumption in a data center. IT organizations and especially IT operations must cope with this afflux of technology, which brings more and more services to the business, as well as the management of the legacy services and technology. I believe that the two most important roadblocks that prevent IT from optimizing its costs are in fact diversity and complexity. Cloud computing, whether SaaS or IaaS, is going to add diversity and complexity, as is virtualization in its current form. This is illustrated by the following chart, which compiles answers to the question: “Approximately how many physical servers with the following processor types does your firm operate that you know about?”
If virtualization could potentially address the number of servers in each category, it does not address the diversity of servers, nor does it address the complexity of services running on these diverse technologies.
Hi, I'd like to share part two of a recent discussion that I had with Martin Schindler, Editor of Silicon.de. See part one here in case you missed it.
Martin Schindler: You indicated earlier that interest in third-party maintenance has increased since SAP wanted to make its Enterprise Support basically mandatory. Is this just excitement or real demand?
Stefan Ried: Yes, interest has increased. We're also seeing that from the vendor side. In addition to Rimini Street, which already offers maintenance for SAP systems, there is also Aptech, netCustomer, the Spinnaker Management Group, and Versytec, which are today limited to PeopleSoft, JD Edwards, and Siebel. The vendor space has developed further, and the list of SAP-supporting vendors will soon become longer. Finally, it makes sense to ask the larger systems integrators, such as Wipro, Tata Consultancy Services, IBM Global Services, and Siemens (SIS), which are also the largest SAP integrators, to quote for offering SAP third-party maintenance.
Martin Schindler: This is interesting. We've read little about such offers.
Stefan Ried: These integrators naturally don't make a lot of noise about these things, as they also have a partner relationship with SAP, of course. At the end of the day, the demand will be balanced with the supply — and if more customers request SAP maintenance from their systems integrator, they will start to offer it.
Martin Schindler: Is this profitable for integrators?
The marriage of Gomez and Compuware is starting to bear fruits. One of the key aspects of web application performance management is end user experience. This is approached largely from the data center standpoint, within the firewall. But the best solution to understand the real customer experience is to have an agent sitting on the customer side of the application, without the firewall, a possibility that is clearly out of bounds for most public facing applications. The Gomez-Compuware alliance is the first time that these two sides are brought together within the same management application, Compuware Vantage. What Vantage brings to the equation is the Application Performance Management (APM) view of IT Operations: response time collected from the network and correlated with infrastructure and application monitoring in the data center. But, it’s not the customer view. What Gomez brings with its recent version, the “Gomez Winter 2010 Platform Release” is a number of features that let IT understand what goes beyond the firewall: not only how the application content was delivered, but how the additional content from external providers was delivered and what was the actual performance at the end user level: the outside-in view of the application is now combined with the inside-out view of IT Operations provided by Vantage APM. And this is now spreading outside the pure desktop/laptop user group to reach out the increasing mobile and smart phone crowd. IT used to be able to answer the question of “is it the application or the infrastructure?” with Vantage. IT can now answer a broader set of questions: “is it the application, the internet service provider, the web services providers?’ for an increasingly broader range of use-case scenarios.