Posts Tagged ‘CoIT’

Quips: Good Technology Data Validates That Apple iOS Is Still King of Enterprise Class Mobile in The US

Apple Grows In Net Activations In Q4 As Well As Overall

The February 12th, 2014 Good Technology Mobility Index report validates what many North American based enterprises know – Apple iOS is dominating Google Android inside the enterprise in the US markets.   While this data is limited to the Good Technology customer base, which has a strong US following, anecdotal inquires and formal polling by Constellation Research, Inc. validate that this data is directionally accurate.  Here are three graphics that illustrate the point:

  1. Net Activations By Type of Device Show iOS up in Smart Phone and Tablets While Android Drops
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Quips: What the Google Motorola – Lenovo Deal Is Really About

Google Enters China Via Lenovo While Counter Balancing Samsung

On January 29th, 2014, Mountain View based Google announced it would sell it’s Motorola Mobility unit to Chinese based Lenovo for $2.91 in cash and stock.  The deal cuts across many spectrum including mobile OS, computing wars, and search.  Here’s 12 talking points:

Source: Not sure, but not mine

  1. Google keeps most of the 17,000 patents which it purchased for $12.5B.  This patent trove allows it to compete on Internet of Things (IoT), sensor analytical ecosystems, and other key mobile technologies.
  2. Google needs a counterweight to Samsung who’s been looking at swapping OS.
  3. Google now gains a China strategy.
  4. Google takes a 5.94% stake with a $750M investment in Lenovo
  5. Google has a less than 2% search market share in China as they pulled out in protest, but with Lenovo, they gain an ability to enter mobile search through Lenovo as a back door.
  6. Lenovo is a perfect mid and long-term competitor to Samsung
  7. Lenovo now has the key technology to launch into mobile and cut down the time to market by 3 to 5 years.
  8. Lenovo can build the end to end hardware platforms required for a full line of servers, laptops, tablets, and mobile devices.
  9. Lenovo gains a trusted partner on OS in Google Android and can plug into the ecosystem
  10. Microsoft continues to be isolated in market share and ecosystem and faces a distribution problem.
  11. Apple faces more pressure from Google through Lenovo and Samsung for OS operating share and from multiple price points.
  12. Dell faces more competition from Lenovo across all product lines given the acquisition of IBM’s mid range business.

The Bottom Line: Google Gains A Key Partner With Sale Of Motorola To Lenovo

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News Analysis: VMware Signals Commitment To Mobility With $1.54B Intent To Acquire Airwatch

Mobile Management Consolidation Continues And VMware Accelerates Mobile Efforts

On January 22nd, 2014, VMware (NYSE: VMW) announced the intent to acquire Atlanta, GA based Airwatch for $1.54B.  More than just an acquisition of a leading enterprise mobile management (EMM) vendor, the acquisition represents a cornerstone for VMware’s mobile strategy for end user computing.  Should the deal close, co-founder Alan Dabbiere will report to VMware CEO Pat Gelsinger.  AirWatch will continue to be led by CEO John Marshall and included in VMware’s end-user computing group, led by General Manager, Sanjay Poonen.  Upon completion of the acquisition, the market impact is significant because:

  • AirWatch users breath a sigh of relief amidst rapid market consolidation and uncertainty. AirWatch is a leading enterprise mobile management (EMM) vendor with over 10,000 customers and 1600 employees. The company has received $200M+ in Series A funding, delivered a global presence with 10 global offices and 16 languages, and achieved over a 90% customer retention rate.  AirWatch brings a rich ecosystem of device manufacturers, feature set partners, resellers, mobile operators, and managed services providers.  Despite these successes, the EMM space faces rapid consolidation and AirWatch is a constant candidate for acquisition.

    Point of View (POV):
    Citrix’s acquisition of Zenprise foreshadowed the EMM market consolidation and the acquisition of MaaS360 (Fiberlink) by IBM in November 2013 created some concern for existing customers and prospects about AirWatch’s long term fate.  In addition, a price war in 2013 stalled a planned IPO process for AirWatch.  Many customers and prospects feared that AirWatch would remain the last EMM vendor standing.  Given the proposed management structure and VMware’s history of mergers and acquisition, AirWatch users should feel confident that the technology and team are in good hands and that VMware intends to invest and grow the business.
  • VMware gains a mobility foundation and moves from feature set to end point management. AirWatch’s EMM offerings cover a broad set of device and enterprise features.  Device features include MDM, MAM, MCM, MEM, SSO, OS Container, Enterprise Workspaces, App Wrapping/SDK, API Framework, and Device usage.  Enterprise features include API, PKI, DLP, NAC, Directory Services, Content Repositories, Event Management, SIEM, Business Workflow and Systems Management.  Other key areas include Platform Integration, Process Automation, Workflow Templates, and a Privacy Framework. More…

News Analysis: New #IBMWatson Business Group Heralds The Commercialization Of Cognitive Computing. Ready For Augmented Humanity?

IBM Launches New Business Group In New York’s Silicon Alley

On January 9th, 2014, on top of 4 World Trade Place, IBM CEO Ginni Rommety and long time veteran, but newly minted, IBM Watson Group Senior Vice President Michael Rhodin, announced IBM’s commitment to putting an entire business unit around Watson (see Figure 1).  The arrival of Watson represents a culmination of artificial intelligence, natural language processing, dynamic learning, and hypothesis generation to take vast quantities of data to make better decisions.  The IBM Watson business unit is the tech giant’s multi-year $1 billion initiative to deliver cloud based cognitive computing products for industries such as healthcare, retail, financial services, advertising, travel, and hospitality.

Figure 1. IBM Watson Group’s, Senior VP Mike Rhodin With A Warm Welcome

Source: IBM

Three key insights emerge from the launch:

  • IBM is committed to creating a brand new category and ecosystem. Focused on cognitive computing, over 2000 professionals form the newest business unit at IBM headquartered in New York City’s Silicon Alley.  The Watson ecosystem launched on November 14th, 2013 has over 750 applicants and $100M in equity investment (see Figure 2).  The ecosystem includes the Watson Developer Cloud, Watson Content Store, and the Watson Talent Hub.  In addition, the new business group is headed by IBM veteran Mike Rhodin.  Mike is a senior and well rounded executive who led the software solutions group which included the Business Analytics, Smarter Cities, Smarter Commerce, and Social Business product lines.

    Point of View (POV):
    The ability to self learn enables continuously reprogramming.  Cognitive computing is more than a new category.  These advancements represents a new class of technology to enable human and machine guided decisions.  IBM’s commitment can be seen by the level of executive and the management team chosen to grow a brand new class of software, services, and apps.  Constellation believes that the IBM Watson team has put forth a wide range of innovative ecosystem partnerships across a diverse set of industries.  In fact, the client solutions center and design lab are key to clients experiencing how Watson can create disruptive business models and transform an industry.  Moreover, the establishment of a business incubator is key to attracting crucial talent, technology, and ecosystem to spark new ventures.

 

Figure 1. IBM Showcases The Entire Watson Family and Ecosystem

Source: IBM

  • IBM is putting considerable resources towards the commercialization of products and services. At the unveiling, IBM announced three new cloud-delivered Watson offerings to add to the IBM Watson Engagement Advisor launched on May 21, 2013.  IBM Watson Discovery Advisor uses cognitive intelligence to apply context on vast quantities of unstructured and structured data.  The goal -  identify patterns for research teams to advance their efforts in industries such as pharma, publishing, and education.  IBM Watson Analytics provides capabilities that allow users to verbally ask questions and receive high quality data visualizations and insights.  IBM Watson Explorer provides the toosl to find, extract, and deliver content regardless of format or data source.
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News Analysis: Salesforce 1 Signals Support For Digital Business at #DF13

Salesforce Seeks To Tackle Digital Business At Dreamforce

Over 125,000 virtual and physical registrants descend on San Francisco the week of November 17th for Dreamforce 13, a future of technology meets SXSW event.  One day in advance of the largest enterprise software event of its kind, Salesforce.com announces Salesforce 1 (see Figure 1).  The Salesforce 1 customer platform seeks to address a cadre of emerging digital business requirements that customer centric companies face.

Figure 1. Salesforce 1 Customer Platform Intends to Support The Internet Of Customers

Source: Salesforce.com

SalesForce 1 Reflects Much Needed Refresh Of Existing Platform

The new customer platform includes platform services, platform APIs, and the Apps created from the platform.  Salesforce 1 platform services includes refreshes in Force.com, updates in Heroku, and adds Exact Target Fuel.  As expected, Sales Cloud, Service Cloud, Exact Target Marketing Cloud, and Apps Exchange sit on top of the salesforce1.com platform (see Figure 2).

The key analysis of this release include:

  • Internet of Customers support. Salesforce includes social, mobile, cloud, and connected as the key components for The Internet of Things.  In order to meet the requirements of a third wave of computing that moves from Internet of Things to what Salesforce calls the Internet of Customers, the new platform is designed to support this customer centricity convergence.

    Point of View (POV):
    Constellation sees more than 50B connected devices and at least 150B connected endpoints by 2020.  The opportunity is huge.  While Salesforce.com addresses 3 out of the 5 key components of digital business, the vendor still needs to provide video/unified communications and big data/analytics.  Constellation believes the big data and analytics opportunity is critical to enhancing customer experiences, to benchmarking and brokering data servcies, and to buildoing new business models around big data and analytics.  Customers should encourage Salesforce.com to consider how to enable big data business models in digital business in the next iteration.  Meanwhile, most customers can wait until future releases for video and UC requirements to be met.
  • Next generation apps developer platform. The PaaS layer adds a mobile first orientation that enables a write once and deploy anywhere platform. Developers can now deploy to a range of social, mobile, and connected devices.  The platform services include 10X more API functionality.   Developers can build customer apps, wearable apps, product apps, and salesforce apps.

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Monday’s Musings: The Chief Digital Officer In The Age Of Digital Business

Market Leaders and Fast Followers Prepare for Digital Business In 2014

Conversations at Constellation’s Connected Enterprise last week validate a larger trend in the market place.  The audience of 220+ early adopters with 75% representing line of business and 25% in IT highlighted the convergence of the five forces of consumerization described in 2009 and 2010.  This convergence of these five pillars of digital business now form the foundation of all future digital business strategy and drive customer experience, matrix commerce, future of work, data to decisions, consumerization of technology, and digital marketing (see Figure 1.).  In fact, market leaders and fast followers have embraced this strategic direction in their 2014 planning.

Figure 1. Convergence Of The Five Pillars Drive Digital Business Strategy

Emerging Trends In 2014 Digital Business Strategy Reflect The Shift To Digital Business

As Constellation works with leaders to define their 2014 business strategies, digital transformation plays a key role.  Many organizations will:

  1. Recognize that they no longer sell products and services, as buyers seek experiences and outcomes.
  2. Democratize the data to decisions pathway to enable innovation.
  3. Realize that B2B and B2C are dead. It’s a P2P and M2M world.
  4. Focus on context as right time relevancy beats real time information overload.
  5. Shift from engagement to personalization at scale.

(A full update will be posted in Harvard Business Review soon)

The Bottom Line: Organizations Can Expect The Rise Of Chief Digital Officers

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Monday’s Musings: NSA PRISM Scandal Hurts US Cloud Companies And Hastens The Return Of On-Premises Software

Non-US Based Organizations And Even Some US Organizations Will Not Tolerate Snooping In A Post PRISM World

Since the Edward Snowden PRISM revelations, Constellation has received a steady stream of inquiries on cloud strategy.   In fact, nervousness runs high among many non-US based companies using services from US based cloud companies across the cloud stack.  In early August 2013, the Information Technology & Innovation Foundation put out its report “How Much Will PRISM Cost the U.S. Cloud Computing Industry” Assuming that 20% of current clients switch to a non US based provider,  the report estimates a loss of $22 to 35B by 2016.

Constellation agrees.  All signs point to an anti-US stance until the security issues is addressed.  The odds on the US government moving fast on this issue are as good as Major League Baseball players or Tour de France Cyclists honoring a performance enhancement drug use ban.  In fact, Constellation is aware of at least 50+ contracts that have been put on hold or cancelled in the past 30 days.  With the EU’s Nellie Kroes already sounding the alarm bells in a way she only can, cloud buyers have taken notice.

The Bottom Line: Clients Should Consider Alternatives To Pure Cloud Models And Encryption Technology

Interesting enough, fifteen years into the cloud revolution, talk has rekindled about building on-premises software in light of this scandal. Unfortunately, the last major on-premises software company to receive funding squandered it all in 2005 and retooled to the cloud. Furthermore, a few entrepreneurs are looking at VC funding to take some key systems back on-premises.

However customers do not have time to wait for new software to arrive in the on-premises deployment option.  In the meantime, a few near term strategies have emerged:

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Event Report: Informatica Analyst Day Reveals A Growth Strategy

Informatica Sets The Stage For A New Chapter In Its History


Informatica held its annual industry analyst day February 26th to 27th, 2013 at the Rosewood Sandhill in Menlo Park.  The event showcased Informatica’s go-forward strategy and road map for growth over the next three years. Key highlights include:

  • Capturing a $6.5B market opportunity in license and subscription revenues. Marge Breya, Informatica’s new CMO, set the stage with a vision of how Informatica is poised to capture a $6.5B addressable market.  Key use cases include analytics, operational integration, cloud integration, master data management, and data governance.  Achieving these results will require $3.6B in installed base plays, $1,9B in new logo plays, and $1B in geographic expansion. Key markets for geographic expansion include replacing hand coding in Brazil, China, Japan, Mexico, and Russia.

    Point of View (POV):
    Constellation estimates a $300B enterprise software market for 2013 with $130B in applications and $170B in infrastructure software.  Informatica intends to go after a $6.5B addressable market that includes analytics, cloud data integration, operational data integration, master data management, and messaging.  Success will require an expansion in focus from the traditional IT leaders and developer buyers to the emerging needs of business leaders.
  • Supporting a world of Hybrid IT.  Juan Carlos Soto, SVP & GM for Informatica Cloud, discussed how clients now see Hybrid IT as the new norm.  In fact, cloud based adoption has shifted from line of business (LOB) owned to IT led adoption of cloud over the past three years.  Soto sees three pillars of success that include delivery of a platform for hybrid IT, cloud services for all, and Informatica inside.  Key features for 2013 include data masking, process automation, integration with Microsoft Dynamics AX, integration with NetSuite, integration with Workday, integration with Oracle CRM On Demand, integration with Amazon RedShift, and integration with Ultimate Software (which was announced March 13th).

    (POV):
    In a world of Hybrid IT, Constellation expects integration to be a core requirement for success. Consumerization of IT has led to a proliferation of mobile and cloud endpoints that require sophisticated data integration capabilities among all possible connections, data flows, business processes, and access.  Informatica’s success depends on its ability to attract the cloud integration decision makers and users for basic cloud integration for enterprise and those seeking more complicated enterprise cloud integration use cases.  The platform for a Hybrid IT play via a Virtual Data Machine (VDM) has the most potential for success in creating new business models.  Informatica Inside will succeed so long Informatica is seen as “the Switzerland” for integration in cloud stacks and solutions.
  • Providing the integration and quality requirements for a big data world. Ash Kulkarni, SVP & GM for Data Integration and Data Quality, addressed the analytical integration, operational integration, and data governance strategy.  Informatica’s themes for next generation data integration include agility in development, flexibility for deployment, and confidence in management.  New features in analytical data integration include built-in data virtualization, complex event processing, support for decision making, and big data integration for Hadoop customers.  The data governance features include improved inference for data domain discovery, automated enterprise data discovery, business friendly glossaries with rich metadata lineage, streamlined workflow and task management, data masking, visual exception auditing, audit data retention policies for production and legacy apps archiving,
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Tuesday’s Tip: It’s Time To Consolidate Social Business Platforms

Greater Adoption In Social Business Signifies A Move To Consolidate Platforms

Constellation’s buy-side clients tend to fit in the market leader or fast follower categories when it comes to organizational personas of disruptive technology adoption.  Since 2010, respondents have progressed through the DEEPR framework and the latest results from 2012 indicate that most survey respondents have moved to Level 3 (see Figure 1).  Changes between 2010 and 2012 show the following top three priority shifts as users move from Level 2 (Experimentation) to Level 3 (Evangelization):

  • The top challenge among respondents is choosing the right platform (63.8%) among the many inside an organization.
  • Over half (56.8%) of the respondents have incorporated social into business models.
  • Respondents fostering internal collaboration (53.5%) now must worry about adoption challenges.

Figure 1. Respondents Shift to Level 3 in DEEPR Framework for Social Business Adoption

The Bottom Line.  Its Time To Scale The Technology While Pushing Ahead On Innovation

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Monday’s Musings: Understand The Four Organizational Personas Of Disruptive Tech Adoption

Pace of Innovation Exceeds Ability To Consume

Rapid innovation, flexible deployment options, and easy consumption models create favorable conditions for the proliferation of disruptive technology.  In fact, convergence in the five pillars of enterprise disruption (i.e. social, mobile, cloud, big data, and unified communications), has led to new innovations and opportunities to apply disruptive technologies to new business models.  New business models abound at the intersection of cloud and big data, social and mobile, social and unified communications, and cloud and mobile.

Unfortunately, most organizations are awash with discovering, evaluating, and consuming disruptive technologies.  Despite IT budgets going down from 3 to 5% year over year, technology spending is up 18 to 20%.  Why?  Amidst constrained budgets, resources, and time limits, executives are willing to invest in disruptive technology to improve business outcomes.  Consequently, successful adoption is the key challenge in consuming this torrent of innovation.  This rapid pace of change and inability to consume innovation detract organizations from the realization of business value.

Organizations Fall Into Four Personas Of  Disruptive Technology Adoption

A common truism in the industry is “Culture trumps technology”.  As organizations apply methodologies such as Constellation’s DEEPR Framework in improving adoption, leaders must first determine which of the four personas best fits their organization’s appetite for consuming and innovating with disruptive technologies.

The personas of disruptive technology adoption assess organizational culture in two key axes (see Figure 1).  The first is how incremental or transformational an organization looks at applying disruptive technology to business models.  The second assesses how proactive or reactive an organization is in carrying out new initiatives.  Based on these dimensions, the four personas include:

  1. Market leaders. Market leaders prefer to drive transformational innovation.  They look at technologies as enablers in disrupting business models.  They see competitive differentiation in delivering outcomes to customers. Market leaders accept failure as part of the innovation process.  They fail fast and move on.
  2. Fast followers. Fast followers prefer to react to the success of market leaders and their experiments.  When they sense success, they tend to jump in.  Fast followers do not like to fail and rapidly apply lessons learned from market leaders into their road maps.  Fast followers tend to deliver scale in the markets as a counter balance to arriving later in the market.
  3. Cautious adopters. Cautious adopters proactively deliver incremental innovation.  They tend to take a more measured approach and spend more time studying how they can improve an existing success than creating a transformational change.  Cautious adopters often come from regulated industries where security and safety are paramount objectives.
  4. Laggards. Laggards tend to procrastinate on applying innovations to their business models.  They prefer not be bothered by trends and will only react when the trends have moved beyond mainstream.  They see value in waiting as prices will drop over time as success rates increase over time.  Laggards enjoy waiting.

During the interviews and discussions with the 2012 Constellation SuperNova award participants, key questions emerged in the decision process on whether to adopt or pass on a disruptive technologies.  These questions aligned well with the four personas of disruptive technology adoption.

Figure 1.  Organizations Should Understand Which Persona Of Disruptive Tech Adoption Describes Them Best

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Trends: The Battle For CMO Mind Share

Marketing and Advertising Budgets Are The New Land Grab

Constellation Research, Inc. predicts that the global advertising market (paid search, display, and classified) will hit $125B by 2015.   While IT budgets continue to stay flat, marketing budgets are up.  Warc’s recent Global Marketing Index (GMI) entered positive territory in March 2012.  Consequently, the heat up in marketing and advertising market attracts not only start-ups, but also tech vendors looking to enter this lucrative market.

Solution Providers Rediscover The CMO Budget

In just less than 28 months, enterprise software vendors have bolstered their presence with Chief Marketing Officers mostly through acquisitions and partnerships.  The goal – capture budgets allocated for digital creation, marketing automation and revenue optimization, advertising, CRM and customer experience, analytics, and information brokering (see Figure 1).

Figure 1.  The Battle For The CMO Budget Comes From Six Fronts

Why the change? Marketing sits at the cross roads between the old analog world and the new shift to digital transformation.  With each big shift, organizations will change what technologies they invest in, who they decide to partner with, and how quickly they will make the shift.  This new battle for CMO mind share started when IBM purchased Unica for $480M in August 13, 2010 (Figure 2).  The frenzied activity by Adobe, Dell, Eloqua, Google, Hubspot, Kana, Marketo, Oracle, Salesforce.com, and SAS Institute reflect the desire to be top of mind among CMO budgets.

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Quark Summary: What CFOs Need to Know About SaaS and Cloud Integration

Forward And Commentary

This document addresses many questions asked by CFO’s about cloud deployments and the top integration questions often asked by CFO’s responsible for key business initiatives that involve technology.

A. Executive Summary

Organizations have escalated their adoption of cloud computing and SaaS applications in the past 3 years. As part of the broader trend in consumerization of IT (CoIT), business leaders have slowly tipped the balance of power in determining technology acquisition. However, the proliferation of adoption has led to organizational chaos in data, process and meta data integration as users adopt and deploy the cloud in silos without considering the implications of organizational silos and services oriented architecture (SOA).  As cloud integration emerges as an enterprise-wide issue, CFOs must get acquainted with the cost-value equation of cloud and SaaS applications. Why? Cloud integration emerges as a key competency for successful organizations seeking to innovate while maximizing returns on investment. Consequently, CFOs should understand ten key points on why they must master cloud integration.

B. Research Findings

The rapid adoption of cloud computing by business leaders unfortunately creates a bespoke environment technically known as “best of breed cloud hell.” With so many disparate systems in a loosely federated model, data rapidly becomes siloed, business processes easily become fragmented, and coordination across functional fiefdoms quickly becomes difficult.  Consequently, cloud integration emerges as a key enabler in reducing the costs and improving the benefits of cloud computing. Recent conversations with 22 CFOs addressed these ten key questions:

  1. What is cloud integration?
  2. Why is cloud integration a growing competency for the CFO?
  3. Is cloud integration more or less expensive?
  4. Which integration approach is best in the long run?
  5. How does cloud integration mitigate project risk?
  6. What’s the business value for cloud integration?
  7. Will bring your own device (BYOD) policies require cloud integration?
  8. How can I support social media?
  9. Do big data and cloud integration go hand in hand?
  10. What kind of projects make sense for cloud integration?

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