Posts Tagged ‘Amazon’

Monday’s Musings: The New Engagement Platform Drives The Shift From Transactions

Convergence In The Five Forces Of Consumerization Of Technology Drives The Next Big Thing

Social has given us the tools to connect.  Mobile has given us the ability to interact any time and anywhere.  Cloud delivers access points to us with a rich array of content and information.  Big data provides us with the context and information to make decisions.  Unified communications and video transform how we share ideas.  This convergence of the five forces of consumerization drives the next shifts in technology.  The move from transaction to engagement and from engagement to experience is happening now.  The era of transactional apps rapidly makes way for the era of engagement.

If Business Value And Outcomes Are The Goal, Then We Need An Engagement Platform For The Enterprise

The arrival of engagement platforms does not signify time to throw out the transactional systems. In fact, those systems provide the foundation required for engagement.  The engagement layer exposes transactions and allow for deeper interaction and richer sources of information.  However, the transactional systems lack the ability to support engagement.

In fact, organizations around the world struggle with building the right engagement strategy for their customers and employees.  While crafting the right strategy should be designed prior to any technology selection, once completed, the technology to support the strategy does not exist out of the box from ANY solution provider.  Unfortunately, the technologies to achieve engagement remain disparate and hodge podge.   Many solution providers seek to achieve the engagement layer from different heritages:

  • Pure play social solutions morph to engagement apps.  Vendors such as Broadvision, Jive, Moxie, Lithium, Tibco, and Yammer have delivered many elements of the engagement layer.  These horizontal offerings provide an opportunity to assimilate disparate offerings across multiple processes and roles.  The challenge is finding the tools that support consistent integration at the process, meta data, and data layer.  Gamification vendors such as Badgeville, Bunchball, BigDoor, Crowdtwist, and Gigya play a key role in delivering outcomes and influencing behavior through engagement.  Platforms such as Atlasian, Box, GoodData, and Tidemark open the door to a new era of engagement apps.
  • Legacy transactional systems in transition to engagement. Major ERP and CRM vendors seek to address engagement with “social” and “mobile” features.  While many of the vendors have the components for engagement, the struggle will be to embed a sense and respond design point into both the interaction layer and process flows.  Salesforce embraces the social enterprise and uses Chatter as its entry point in creating engagement.  SAP attempts this with its CubeTree/SuccessFactors acquisition in Project Robus.  Oracle attacks this problem through a customer experience suite.  Microsoft acquired Yammer to create this layer inside Office and its Business Solutions portfolio. IBM embraces social business with a series of acquisitions and product enhancements to its IBM Connections product.  More importantly, IBM has built and acquired a portfolio of software solutions that sit on top of the legacy transactional systems, delivering high value and high impact.
  • Consumer offerings could enter the enterprise. With consumerization of IT increasing, platforms such as Facebook, LinkedIn, Pinterest, and Twitter provide a rich engagement platform that could be adopted in the enterprise.  Meanwhile, solutions providers such as Adobe blend consumer with enterprise as they provide the tools for engagement on the web and in mobile.  The challenge is dealing with societal norms between work and personal information.  The challenge is meeting enterprise class requirements for safety, security, and sustainability.
  • Vertically integrated prosumer platforms already deliver engagement. Google, Amazon, Apple, and Microsoft have the unique capability of delivering an end to end solution from hardware, consumer device, operating system, database, applications, and partner ecosystem.  Engagement platforms form the basis of future business models as consumer and enterprise blend into prosumers.  The challenge is meeting the disparate needs of enterprise and consumer.
  • Marketing and advertising networks provide rich profiles and targeting.  The ad networks are moving fast to shift engagement and offers.  While daily deal sites play one role, companies like Glam Networks also now deliver key components for ad targeting and optimization that compete with Google, Apple, Yahoo, and other media properties.   Marketing automation platforms such as
    Eloqua, Hubspot, InfusionSoft, Marketo, NeoLane, Pardot, and Parature already have may key components.  The challenge is engendering trust among the users or consumers to share more information in exchange for deemed value.

Figure 1. Technologies Will Evolve  From Transactions to P2P

The Engagement Platform Requires Nine Main Technology Components

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Monday’s Musings: Lessons Learned From Amazon’s Cloud Outage

Amazon’s Cloud Outage Catches Most Clients Offguard

The recent Amazon cloud outage at its Northern Virgina data center from 5 am Thursday, April 21, 2011 to roughly 5 am Friday, April 22 has shaken the confidence of some executives on public cloud computing.  Most notably, FourSquare, HootSuite, Reddit, and Quora publicly suffered visible performance issues.  The industry’s reassurances in the past on up time performance and massive redundancy capabilities combined with the massive corporate adoption had everyone believing that public clouds were bullet proof.  As calmer heads prevail, most CIOs, business leaders, and analysts realize that:

  • Cloud outages are rare but can happen. While most organizations can not deliver 99.5% up time let alone 90% performance, disruptions can and will happen.  The massive impact to so many organizations last week highlights potential vulnerabilities of betting 100% of capacity in the cloud.  More importantly, it showed that broad adoption does not equate with bullet-proof reliability.  Most organizations lacked a contingency plan.
  • Cost benefit ratios still favor cloud deployments. For most organizations, the cost of deploying in the cloud remains a factor of 10 cheaper than moving back to the traditional data center or even a private cloud.  Capital costs for equipment, labor for managing the data center, excess software capacity, and the deployment time required to stand up a server create significant cost advantages for cloud deployments.
  • Current service level agreements lack teeth and should be improved. Most organizations lack teeth in the cloud/saas contracts to address service level agreement failure.  Despite all backups and contingency plans, clients should consider scenarios where core business systems go down. What remedies are appropriate? What contingencies for system back up are in place.   Who is responsible for disaster recovery? Will the vendor provide  liability and for what?

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Research Report: How The Five Pillars Of Consumer Tech Influence Enterprise Innovation

Most Enterprise Software Vendors Fail To Deliver Innovation

Despite hundreds of billions wasted on failed research and development projects, most market influencers would agree that enterprise software vendors have produced a dearth of innovation over the past decade.  Vendors often cite UI re-skins, major functionality additions, integration of acquisitions, technology re-platforms, and weak attempts at faking cloud computing as innovations.  In fact, let’s call it what it is.  Only a handful of enterprise software vendors have truly innovated.   Many enterprise software vendors are fast followers.  Most are innovation laggards living off fat maintenance revenue streams.  Ask any product strategist where they gain their inspiration and they will all cite advancements in consumer technology; and not peer enterprise competitors.

Innovative Enterprises Push Forward Mostly On Their Own

During this year’s Information Week 500 event, conversations with over 50 leading business technology leaders highlighted the growing gap in innovation.  These next gen leaders demonstrated how they were turning to consumer tech advancements to influence their custom development efforts; and/or seeking emerging vendors with innovative offerings.

For example, Bill Martin, the CIO of Royal Caribbean showed how design thinking coupled with real-time analytics and on-board mobility could improve the cruise experience on the largest ship ever built.  Shawn Kleim, Director of Development at WetSeal, provided proof points on mobility and social convergence in driving retail sales and eCommerce in the highly competitive teen apparel market.  Dave Bent, Senior VP of eBusiness services and CIO of United Stationers, proved how a company could deliver cloud services to partners and create competitive advantage across a value chain.

A number of CIO’s showcased how they were taking advantage of the cloud with SaaS apps and private clouds. Others discussed their efforts to optimize costs using third party maintenance to pay for innovation.  The common lessons learned – most did not expect to gain market advantage from their existing and legacy vendors.  Innovations came from the consumer tech side and next generation solution providers.  Consumer tech advancements influenced business driven technology advancements.

Software And Tech Vendors Rush To Incorporate The Five Pillars Of Consumer Tech

Ten elements drive key design points for next generation apps.  These design points showcase how advancements in consumer tech now permeate the enterprise.  Design thinking concepts drive dynamic user experiences, business process focus, and community connectedness.  Based on existing research, deep dives into major vendor road maps, and validation with clients, five pillars of consumer tech have emerged as the foundation for future inspiration in the enterprise (see Figure 1):

Figure 1.  Five Pillars Of Consumer Tech Will Influence Enterprise Software Throughout The Next Decade

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Wednesday’s Whispers: Corporate Whispers and Monthly Market Trends – June 2009

CORPORATE WHISPERS AND MONTHLY MARKET TRENDS*
Starting this month, we’ll be splitting the trends in Corporate Whispers from the People Whispers series.  Catch the latest monthly random thoughts, trend points, and corporate trends.  Hearing from twitterati, software execs, and industry experts about:

User trends

  • Recent win by SUSEN Software over SAP enhances validity of the used software market in the EU.  Other players like Used Software have battled Microsoft to open up competition in the market.  Many CIO’s hope that Nellie Kroes at the EU will investigate the lack of third party maintenance options and anti-competitive behaviour in some segments of enterprise software (i.e. Oracle DB, SAP, etc.) before her term expires.
  • Hybrid deployment options continue to gain ground.  Conversations with over 101 software decision makers highlight a shift from single source vendor strategies.  Move to support hybrid deployments benefit enterprise service bus and integration providers such as Boomi, Pervasive, and Informatica.
  • Japanese CIO’s finally realizing that they need to break free from their existing ERP software vendor relationships.  SaaS options now in consideration.  Recent advancements by NTT to host Zoho, Siemens’ 420K employee move to Success Factors, and Flextronics 240k employee deal with Workday have shifted perception that SaaS can’t solve large enterprise requirements.
  • Conversations with over 100 EMEA decision makers show a big push to move away from a single source vendor strategy.  Third party maintenance, virtualization, SaaS, Open Source, and BPO top lists of planned initiatives in 2009/2010.
  • Support for Apple Macs in corporate environments gaining significant traction.  Despite shipment gains, lack of real corporate support models (i.e. go to the Apple Store to fix your MacBook) do not engender the backing of corporate IT support departments.

Software vendor and system integrators trends

Your POV

Got a scoop or something to share? What are you hearing in the market?  Please post or send on to rwang0 at gmail dot com and we’ll keep your anonymity.

* Not responsible for any factual errors or omissions.  However, happy to correct any errors upon email receipt.

Copyright © 2009 R Wang. All rights reserved.

Wednesday’s Whispers: The Word On the Street – April 2009

PEOPLE WHISPERS: MOVES, PROMOTIONS, AND MILESTONES*

Congratulations to all!  Thanks for your emails and alerts.  If you’ve got a change or know of a promotion, keep dropping me a line!  If you need a referral, don’t hesitate to reach out to me via Linked In.

Richard Barnett joins Fine Solutions as a Vice President for Business Development.  Richard last served as the CMO at Kineticsware, Inc and served as an evangelist for the Microsoft Dynamics product lines as Director of Product Marketing.

Alan Bowling leaves his post as CIO of Northern Foods and joins the Training and Development Agency for Schools as CIO.  Alan also serves as the Chairman of the very independent and influential SAP UK & Ireland Users Group.

Max Efimov became Director of Emerging Technologies at SITA CORP in November 2008.  Previous roles include serving as a Manager of Enterprise Solutions – SAP for BearingPoint, Enterprise Solutions Architect at Tesoro Corp and Lead Systems Specialist at Valero Energy Corp.

Bill Geist has been promoted to Executive Vice President of Services at CDC Software.  Bill formerly served as the SVP of Customer Services.  Bill brings a wealth of management consulting, staffing and professional services experiences with several senior roles as a Partner at Tatum, L.L.C., CEO of Application Partners, L.L.C., Senior Vice President for Headstrong, Inc., Partner of Whittman-Hart, Inc., Director at Cambridge Technology Partners, and VP of IT and Services for Scientific Atlanta.

Aloke Ghosh has been appointed as the new CFO for Systime.

Peter Graf is now Chief Sustainability Officer at SAP.  Peter served as the Executive Vice President for Marketing at SAP Labs.

Allison Guidette became VP & GM at Thomson Reuters in January 2009.  Prior to Thomson Reuters, Allison served as Senior Vice President of Product Management at Merrill Corporation, Vice President of Business Law at Thomson West, and Senior Director at Corporate Executive Board.

Christof Herzog became Manager Customer Segmentation Fachleiter Kundensegmentierung at Deutsche Telekom in January 2009.  Past roles include Principal Analyst at Vodafone and Senior Quantitative Analyst at Forrester Research.

Indu Khattar brings strong operational experiences to SYSTIME as the COO.  Indu draws upon 2 decades of senior management experience with Fujitsu, ICIM, and Wipro

Tom Kucharvy serves as the CEO at Beyond IT, Inc. in January 2009.  Tom bring a wealth of star analyst skills from Ovum where he was an Senior Vice President and from his experiences in building Summit Strategies as President and CEO.

Norman Liang leaves Fox Interactive Media (Photobucket) to join stealth startup Fire-Exit.  Norm currently advises TripJane and the Martini Media Network.  Prior to Photobucket, Norm served a Business Development role at Nokia.

Justin Mckenna is now a Business Development Representative at CIBER. Justin’s experiences include roles as a Business Development Executive at One Technologies and Account Manager at Forrester Research.

Vinay Nair joins IBM Cognos as an ERP market strategist.  At International Data Corporation (IDC), Vinay served as the Research Manager for the Canadian Enterprise Applications market and a Senior Research Analyst for the Middle East and Africa regions.

Sean O’Neill leaves uTANGO to join GMI as Vice President of product and program management.  Sean has served executive roles in product management including seven years at Amazon.

Matt Pawl was promoted in March 2009 to Vice President of Marketing at Hayes Technology Group.  Matt previously was the marketing director.

Anita Rao joins Symantec with the Global ERP Systems team.  Anita bring senior IT experiences from Visa, Garage Technology Ventures, Jamcracker, Oracle, Merrill Lynch, and Bear Stearns.

Richard (Rick) Reidy has been promoted from COO to President and Chief Executive Officer (CEO) at Progress Software Corporation.  Reidy bring both a products and management background to the position.

Joel Rosenberger joins GMI as Vice President of Engineering.  Joel bring experience from Amazon‘s Web Services team as well as roles as technical diplomat at Microsoft, CTO of TransLink Software, and Senior Architect at Attachmate.

Dave Sampson takes on the role of Vice President for demand generation and customer experience at GMI‘s marketing strategies.  Dave was previously vice president of marketing for Sampa Corporation.

Eilleen Shields takes on new responsibility as a Business Development Manager at Planpower a UXC company. Prior roles include senior sales positions with SAP, Forrester Research, and Jupiter Research.

Michael Sotnick moved to ActivIdentity in December 2008.  As Executive Vice President of Worldwide Sales and Field Operations, Michael will put his sales, channel, and partner enablement experiences from SAP and Veritas to work.

Chloe Stromberg is now a Senior Survey Research Manager at comScore, Inc. Chloe brings analytical and survey experience from work at IdeaLab and the University of Michigan.

Mike Thoma became CTO and CMO at Blink Logic Inc. in December 2008. Previous experiences include roles as a special advisor to the CEO at Blink Logic and VP of Product Marketing at Actuate Corporation.

Angus Thomson takes on a new role at Intuit as VP & General Manager of the Grow Your Business Division.  Angus formerly led Intuit’s Mid-Market group as VP & General Manager.

Chris Townsend joins i-Nova Software as their VP of Marketing.

CORPORATE WHISPERS

Hearing from leading CIO’s and VP’s at technology firms:

  • Many clients refusing to pay maintenance fees and have let contracts lapse
  • Vendors fearful of the high interest in third party maintenance. Some customers considering anti-trust suits in EU and US
  • Virtualization, Business Process Outsourcing, and SaaS seen as cost saving investments
  • Interest in SOA on the decline, but party faithful still in large numbers
  • Gov contracting, healthcare, compliance, project based solutions, and BI remain hot investment sectors for M&A

Got a scoop or something to share? Please post or send on to rwang0 at gmail dot com and we’ll keep your anonymity.

* Not responsible for any factual errors or omissions.  However, happy to correct any errors upon email receipt.

Copyright © 2009 R Wang. All rights reserved.