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CEN Member Chat: AI Ethics & Privacy

CEN Member Chat: AI Ethics & Privacy

Constellation Research VP & Principal Analyst, Steve Wilson, covers his observations on the implications of AI ethics and privacy exclusively for our executive community. Join our Constellation Executive Network to exchange ideas and solve business problems in real time. 

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Digital Transformation Digest: Coleman Is Infor's AI Play, Workday to Open Up Its Platform, and More

Digital Transformation Digest: Coleman Is Infor's AI Play, Workday to Open Up Its Platform, and More

Constellation Insights

Infor has an AI platform, and its name is Coleman: The big news at Infor's Inforum conference this week in New York is Coleman, its entry into AI (artificial intelligence) for business applications. Here are the key details from its announcement:

A pervasive platform that operates below an application's surface, Coleman mines data and uses powerful machine learning to improve processes such as inventory management, transportation routing, and predictive maintenance; Coleman also provides AI-driven recommendations and advice to enable users to make smarter business decisions more quickly.

In addition, Coleman acts as a smart AI partner, augmenting the user's work.  Coleman uses natural language processing and image recognition to chat, hear, talk, and recognize images to help people use technology more efficiently. 

Coleman is named after Katherine Coleman Johnson, an African-American physicist and mathemetican at NASA who made key contributions to the success of the moon landing.

Infor executives provided more details of Coleman in a question-and-answer session with press and analysts.

While the announcement came seemingly out of the blue, Infor has actually been working on Coleman for quite a while, executives said. Its elements include Amazon Web Services' Lex chatbot platform and machine learning frameworks such as TensorFlow as well as one Infor acquired 18 months ago with the purchase of Predictix, which has a focus on retail scenarios.

Coleman is industry-specific by design, said Infor president Duncan Angove: "We're not in the business of building a horizontal machine learning platform." It also wants to use Coleman as a means to encourage customers to upgrade. Infor has more than 8400 cloud customers, but 90,000 overall. Migrating the rest to its Cloudsuite lineup is a top priority.

In most cases, Coleman will be included as part of Cloudsuite, not sold separately in discrete applications. "It's one reason our customers should seek to upgrade, so they can turn on Coleman," Angove said.

POV: Coleman was an announcement Infor clearly had to make now if only for the sake of perception, given that every enterprise apps vendor needs to tell an AI story in the current market. While insisting a number of Coleman elements are available today and with customers, this week's announcement marks a step in a longer journey for Infor—one that could indeed have resonance with customers. 

Workday pulls the trigger on PaaS—finally: While Workday has long provided a configuration layer for its cloud HCM apps, the underlying platform remained closed off. At last year's Workday Rising conference, executives confirmed that a PaaS offering was in the works, but didn't provide concrete details.

The time has now come for Workday to launch its PaaS, CEO Aneel Bhusri said in a blog post:

Today, we are ready to take a big step forward on our extensibility journey by announcing our intent to open our platform to customers and a broader ecosystem of partners, independent software vendors (ISVs), and developers.

And like everything we do, we based our decision on customer input. Simply put, a growing number of customers have been asking for a more open Workday platform. They want to use Workday as a cloud backbone that supports cohesive, digital workflows across multiple business applications—reflective of how their people work and how their businesses operate in today’s hyper-connected, real-time world.

By opening up the Workday Cloud Platform and entering the Platform-as-a-Service (PaaS) market, Workday intends to enable customers and our broader ecosystem to use our platform services to build custom extensions and applications that can significantly enhance what organizations are able to accomplish with Workday.

While Workday's software is written in Java, the company's developers work in an abstraction layer built on a proprietary language called XpressO. It's a similar approach to that taken by Salesforce.com and its APEX language for the widely used Force.com platform.

Workday's PaaS will give customers the ability to create new business processes and integrate third-party applications, among other things, Bhusri wrote. More details will be forthcoming at Workday Rising later this year.

POV: Workday has been talking about PaaS for a few years now, so in that sense this announcement is a long time coming. As Constellation VP and principal analyst Holger Mueller notes, Workday has had one of the most proprietary and closed-off platforms in the SaaS business. Those qualities don't fly so well in today's environment, and therefore Workday has made a smart move. Now it's about the execution.

SAP user group eyes line-of-business for member recruiting: One result of digital transformation is the evolution of IT departments' relationship and partnership with business users. That view is backed up by Paul Cooper, chairman of the UK and Ireland SAP User Group, who tells the Register:

"One theme for the next couple of years will be around driving our line-of-business membership," Cooper said.

"What we're seeing is, as the cloud becomes more important to people, as well as Software-as-a-Service, the IT department's role is changing, while the business user is becoming more important.

"They can go and put a [project] together and roll it out almost without the IT department's involvement, so for us it's important that we start to attract the people using those solutions, to help them share their knowledge and learning."

POV: The concept of "shadow IT" is nothing new. But if digital transformation efforts are to take hold most effectively, all parties need to be at the table and in communication. The rise of easily purchased, richly functional SaaS apps also ups the shadow IT stakes significantly, althought it's not as if line-of-business users are going to roll out a new SAP ERP system without plenty of IT involvement.

Legacy Watch: Mainframe woes at the Graybar Hotel: A potentially "long-term" mainframe system outage at the Milwaukee, Wisconsin County jail system is making conditions inside a bit more arduous than usual.

It's meant that bookings and releases are being held up since they must be processed manually, Milwaukee Patch reports. It has also impacted lawyer visits, phone communications between inmates and family members, and inmate commissary accounts. The problems continued after IT staffers ordered replacement parts that didn't work, according to the Patch report. 

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Examples of Google AdWords Done Right (and Wrong) for Keyword “Subscription Billing Software”

Examples of Google AdWords Done Right (and Wrong) for Keyword “Subscription Billing Software”

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We are a Certified Google Partner, and love seeing what brands are up to with their Google AdWords budget.

This is the 14th instalment of a series we call “Critiquing Your Google AdWords Campaigns”.

We Google a search term and evaluate the top 3 Google Ads as well as their landing pages for their ability to “Attract” and “Convert” visitors into leads.

We grade each campaign out of 10:

  • 5 Points ATTRACT: the actual Google Ad
  • 5 Points for CONVERT: the Landing Page experience
Let’s get started!

This week we Googled “Subscription Billing Software”.

Google Ad #1
Company: Aradial

Google AdWords Ad:
The Good…
  • I like how they identify the audience (ISPs, Wifi, etc.)
The Not so Good…
  • I’m searching for “subscription billing software”, not sure what “converged billing” is
  • If your solution is only for certain industries/verticals such as ISPs, you need to include that in the main headline (don’t always count on people to read anything past the headline)
  • No sitelinks
  • No offer or Call to Action
Ad Score: 1/5
Google AdWords Landing Page:
The Good…
  • Identification of audience (ISPs)
The Not so Good…
  • Not using a landing page but driving users to website, where they can click navigation links, read about news, or visit your Facebook page (in other words, taking them off the conversion path)
  • Far too much text
  • Very poor design
  • No visible phone number, form, or Call-to-Action.
Google Landing Page Score: 1/5
TOTAL ADWORDS SCORE: 2/10

Google Ad #2
Company: Vindicia

Google AdWords Ad:
The Good…
  • My keyword (Subscription Billing) right in the headline and display url
  • “Free Trial” CTA right in the headline
  • Helps reduce customer churn 25% (that’s a good thing)
  • Nice use of sitelinks
The Not so Good…
  • Nice use of sitelinks, but I don’t know what “better serve millennials” means
  • Doesn’t indicate who product is for (e.g. SMB, Enterprise, or both)
  • Should add a sitelink for reviews
  • No mention of pricing, but that would be something worth testing
AdWords Score: 3/5
Google AdWords Landing Page:

The Good…
  • Nice key messaging about how the solution isn’t just another cost, but helps your business grow revenue
  • A contact form
The Not so Good…
  • Need to remove links and use a dedicated landing page (e.g. don’t send users to website)
  • Too much text, shorten it down and make use of bullet points
  • The form doesn’t tell you what you’re getting – if I’m getting to “try” the software, am I getting a free trial? What happens when I click “submit”?
  • The form is too long, try removing unnecessary fields such as industry, job title, and annual company revenue (you can get that information later).
Google Landing Page Score: 2/5
TOTAL ADWORDS SCORE: 5/10

Google Ad #3
Company: Quickbooks/Intuit

Google AdWords Ad:
The Good…
  • Online Billing Software in headline – good
  • Start my free trial CTA – good
The Not so Good…
  • I’m specifically searching for “subscription billing software”, so not sure if this is a match
  • Need to identify the audience better – is it for SMB, larger businesses, or both?
  • Use keyword in display url
  • Sitelinks to reviews and/or ratings would be helpful
Google AdWords Score: 2.5/5
Google AdWords Landing Page:

The Good…
  • Well designed, great visuals
  • Video on landing page is very key
  • Nice clear CTAs above the fold
  • Does well to highlight credibility (#1 online accounting solution, 1.5+ subscribers, etc.)
  • No navigation links except to sign in or sign up – nice
The Not so Good…
  • I’m not so sure about having two CTA buttons, are people going to buy the software before they take it for a free trial test drive?
  • No mention of whether it will help me with “subscription billing software”
Landing Page Score: 3.5/5
TOTAL ADWORDS SCORE: 6/10
Who’s Getting My Business for “Subscription Billing Software”?

This is a tough one, as although Quickbooks had an overall higher score (6/10), neither the ad or landing page specifically mention “subscription billing software”.

Thus, even though Vindicia had a lower ad and landing page score, their emphasis on “subscription billing” and growing my revenue may give them the slight edge.

73% Are Using Internet Of Things Data To Improve Their Business

73% Are Using Internet Of Things Data To Improve Their Business

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  • According to the Cisco Visual Networking Index, M2M connections will represent 46% of connected devices by 2020.
  • 95% of execs surveyed plan to launch an IoT business within three years.

These and many other insights are from the recently published Cisco Internet of Things (IoT) study, The Journey to IoT Value: Challenges, Breakthroughs, and Best Practices published on SlideShare last month. The study is based on a survey of 1,845 IT and business decision-makers in the United States, UK, and India. Industries included in the analysis include manufacturing, local government, retail/hospitality/sports, energy (utilities/oil & gas/mining), transportation, and health care. All respondents worked for organizations that are implementing or have completed IoT initiatives. 56% of all respondents are from enterprises.

Key takeaways from the study include the following:

  • 73% Are Using Internet Of Things Data To Improve Their Business. The data and insights gained from IoT are most often used for improving product quality or performance (47%), improving decision-making (46%) and lowering operational costs (45%). Improving or creating new customer relationships (44%) and reducing maintenance or downtime (42%) are also strategic areas where IoT is making a contribution today according to the Cisco study.

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  • IT executives often see IoT initiatives as more successful (35%) than their line-of-business counterparts (15%). With IT concentrating on technologies and line-of-business users focused on strategy and business cases, the potential exists for differences of opinion regarding IoT initiatives’ value. The following graphic provides an overview of how stark these differences are.

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  • Engaging with the IoT partner ecosystem in every phase of a project or initiative improves the probability of success. The most valuable phases to engage with ecosystem partners include strategic planning (60%), implementation and deployment (58%) and technical consulting or support (58%). The following graphic provides an overview of most and less successful organizations by their level of involvement in the IoT partner ecosystem.

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  • Only 26% of all companies are successful with their IoT initiatives. The three best practices that lead to a successful IoT implementations include collaboration between IT and business, the availability of internal and external partnerships to gain IoT expertise; and a strong technology-focused culture.
  • 60% of companies believe IoT projects look good on paper but prove more complex that expected. This finding underscores how critical it is for IT and line-of-business executives to have the same goals and objectives going into an IoT project. Being selective about which integration, technology, and professional services partners are chosen needs to be a shared priority between both IT and line-of-business executives.

Digital Transformation Digest: Microsoft's Transformative Moves, Inforum Kicks Off, and More

Digital Transformation Digest: Microsoft's Transformative Moves, Inforum Kicks Off, and More

Constellation Insights

Transformative times for Microsoft: There are plenty of changes ongoing at Microsoft these days. Last week, the company announced layoffs—reportedly up to several thousand—as part of a plan to reshape its sales force around cloud computing. Now news has emerged of top executives leaving Microsoft, including CIO Jim DuBois.

He held the post since 2013. DuBois' will be succeeded by Kurt DelBene, Microsoft's current head of corporate strategy, but in an interesting and telling move, DelBene won't take the CIO title. Rather, in his new role DelBene will become Microsoft's chief digital officer.

POV: As with DuBois, DelBene's duties are internal-facing. He'll be tasked with overhauling Microsoft's IT practices, which could be a considerable challenge. Meanwhile, the sales reorganization should be a hot topic at this week's Inspire conference, Microsoft's annual event for its large partner channel.

Inspiring growth: Keeping partners happy is a crucial job for Microsoft, since it derives 95 percent of its revenue from the channel. Some 17,000 partners are expected to attend Inspire in Washington, D.C. this week, but that's just a fraction of the total pool. Microsoft has 64,000 cloud partners, which is more than Amazon Web Services, Google and Salesforce combined, EVP Judson Althoff said in a blog post.

Digital transformation represents a potential $4.5 trillion market opportunity, Althoff wrote. It wants to work with partners to grab as much of that pie as possible.

To that end, Microsoft announced a number of new partner programs at Inspire, as well as what it terms a simplified partner relationship model.

First up, Microsoft is expanding its investment in the Azure co-sell program it announced last year. The program provides sales and marketing support for partners working with Azure, including incentives for internal Microsoft sales reps to co-sell Azure with partners. Microsoft is increasing its investment in the program to about $250 million, according to Althoff's blog.

Second, Microsoft is rolling out ISV Cloud Embed. Under the plan, partners can buy Dynamics 365, Power BI, Power Apps and Flow for up to 50 percent off list, and then embed them in their own applications.

Meanwhile, Microsoft is reorganizing the way it works with partners around three scenarios: "build-with," "go-to-market" and "sell-with." This blog post goes in-depth on what the changes mean.

POV: There is yet more news coming out of Inspire, including the availability of Azure Stack, which brings the cloud platform inside customers' data centers; and a new product bundle called Microsoft 365. Constellation analysts will be following the conference closely this week.

Inforum 2017: Infor kicks off its Inforum user conference in New York this week, with digital transformation expected to be a key topic of discussion. In recent years, the business applications vendor has overhauled its flagship software from front to back, placing an emphasis on improved user experience as well as a drive into micro-verticals. Myself, as well as Constellation Research VP and principal analysts Doug Henschen and Holger Mueller will be in attendance. Look for our coverage on Twitter and Constellation's website.

Legacy Watch: ERP disaster recovery: Enterprise resource planning software has slowly but steadily begun moving to the cloud, and with it, ERP's longtime bogeymen—cost and time overruns, dissatisfied users, difficult upgrades and outright project failures—could become mostly a thing of the past.

But those days have yet to arrive. In the meantime, CIO has put together an extensive roundup of ERP disasters and controversies. It's well worth a read.

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Call for Applications - SuperNova Awards

Call for Applications - SuperNova Awards

Deadline for applications August 4, 2017

The SuperNova Awards honor leaders that demonstrate excellence in the application and adoption of new and emerging technologies. 

In its seventh year, the Constellation SuperNova Awards will recognize early adopters who demonstrate true leadership in digital business through their application of new and emerging technologies. We’re searching for leaders and teams who used disruptive technologies to transform their organizations. 

We’re searching for the boldest, most transformative technology projects out there. If you or someone you know transformed their organization with disruptive technology apply for a SuperNova Award. Fill out the application here: 

APPLY NOW

Timeline

  • August 4, 2017 last day for submissions.
  • September 7, 2017 finalists announced and invited to Connected Enterprise.
  • September 12, 2017 voting opens to the public
  • September 21, 2017 polls close
  • October 27, 2017 Winners announced, SuperNova Awards Gala Dinner at Connected Enterprise

Rewards

  • One ticket to Constellation's Connected Enterprise 2017

  • Three month subscription to Constellation's research library

Judges

Technology thought leaders, analysts, and journalists selected for their futurist mindset and ability to separate substance from hype. The SuperNova Award Judges carefully evaluate each SuperNova Award application against a rigorous set of criteria. Judges will identify individuals who demonstrate true leadership in the application and adoption of new and emerging technologies. Want to catch a judge's eye? Judges look for projects whose elements can be replicated in other enterprises.

Categories

  • Artificial Intelligence and Augmented Humanity
  • Data to Decisions - Using data to make informed business decisions. (examples: big data, predictive analytics)
  • Digital Marketing Transformation - Personalized, data-driven digital marketing.
  • Future of Work: Productivity and Collaboration - The technologies enabling teams to work together efficiently. (examples: enterprise social networks, collaboration)
  • Future of Work: Human Capital Management - Enabling your organization to utilize your workforce as an asset. (examples: talent management)
  • Internet of Things - A network of smart objects enables smart services. (examples: sensors, smart ‘things’, device to purchase)
  • Matrix Commerce - Commerce responds to changing realities from the supply chain to the storefront. (examples: digital retail, supply chain, payments, omni-channel retail)
  • Next Generation Customer Experience - Customers in the digital age demand seamless service throughout all lifecycle stages and across all channels. (examples: crm, customer experience)
  • Safety and Privacy - Strategies to secure sensitive data (examples: digital identity, information security, authentication)
  • Technology Optimization - Innovative methods to balance innovation and IT budgets. (examples: innovation in the cloud, ENSW cost savings, cloud ERP, efficient app production)
Data to Decisions Digital Safety, Privacy & Cybersecurity Future of Work Marketing Transformation Matrix Commerce New C-Suite Next-Generation Customer Experience Tech Optimization Innovation & Product-led Growth AR Executive Events Chief Customer Officer Chief Digital Officer Chief Executive Officer Chief Financial Officer Chief Information Officer Chief Marketing Officer Chief People Officer Chief Procurement Officer Chief Revenue Officer Chief Supply Chain Officer

Digital Transformation Digest: Amazon Prime's Explosive Growth, Next-Gen Chips Go 3-D, and More

Digital Transformation Digest: Amazon Prime's Explosive Growth, Next-Gen Chips Go 3-D, and More

Constellation Insights

Amazon Prime's explosive growth: Amazon's recent move to acquire upscale grocer Whole Foods has turned plenty of heads. One likely reason Amazon bought the chain is to add more physical locations to its supply chain, thereby improving its ability to deliver not only fresh foods but other products, and also take in returns.

A big part of Amazon's business is driven by its Prime membership program. While the company doesn't reveal the number of Prime members, new data from Consumer Intelligence Research Partners says growth is soaring. There are now 85 million Prime members in the U.S., a 35 percent increase from a year ago, and double that of two years ago, as Geekwire reports.

Prime memberships have an annual fee but in return members get two-day shipping on many items as well as access to Amazon's video content service.

POV: To put CIRP's numbers in perspective, about 325 million people live in the U.S., meaning Amazon has more than one-fourth of the country signed up for Prime. Amazon has been an major force in supply chain management and logistics best practices, and as it manages Prime's growth its influence will only continue to rise.

New 3-D chip design advances Moore's law: Researchers at MIT and Stanford have come up with a radical new chip design geared for the next generation of massive-scale data processing, which doesn't even use silicon. Here are the key details from MIT's news service:

Instead of relying on silicon-based devices, the chip uses carbon nanotubes, which are sheets of 2-D graphene formed into nanocylinders, and resistive random-access memory (RRAM) cells, a type of nonvolatile memory that operates by changing the resistance of a solid dielectric material. The researchers integrated over 1 million RRAM cells and 2 million carbon nanotube field-effect transistors, making the most complex nanoelectronic system ever made with emerging nanotechnologies.

The RRAM and carbon nanotubes are built vertically over one another, making a new, dense 3-D computer architecture with interleaving layers of logic and memory. By inserting ultradense wires between these layers, this 3-D architecture promises to address the communication bottleneck.

Researcher Max Shulaker explains that silicon-based chips are two-dimensional by necessity, given the high temperatures involved in manufacturing them. If companies were to layer additional sets of circuits on top of each other, the heat would damage the chip. In contrast, nanotubes and RRAM chips can be made at lower temperatures, he said.

POV: The work was funded by a combination of academic, government and private organizations and it's not clear when commercial versions of the chips will be available. But on the face of it, this is the type of innovation that will be needed to advance next-gen applications, IoT and cloud computing.

Illinois' dramatic digital transformation: The U.S. state of Illinois once had 38 different IT departments. Now it has one, after an ambitious effort led by state CIO Hardik Bhatt. He spoke to the Enterprisers Project about the process:

This brought 1,500 employees together. We organized this new department into seven horizontals, which include cybersecurity, project management, application development, and infrastructure, for example, and seven verticals, like health and human services, public safety, tourism, etc. Each of those seven clusters has a CIO who provides leadership for all of the agencies, and they all report up to me.

Bhatt also talks about Illinois' digital government and "smart state" initiatives in the interview, which is well worth a read.

Legacy Watch: The U.K.'s IT project failure maelstrom: Now for a contrasting item to Illinois. Nearly 40 percent of current IT projects in the U.K. are set to fail unless changes are made, according to data from Axelos, a joint venture between the U.K. government and Capita, as the Register reports:

Asked why IT projects fail, responded blamed: significant changes to the project brief (45 per cent); unrealistic timeframes (41 per cent); an incomplete understanding of the risks (48 per cent); projects not resourced with the right people (42 per cent); lack of a clearly defined goals (49 per cent), and overrun budgets (32 per cent).

Axelos surveyed 182 project managers for its study. The organization was formed in 2014 and its remit is to improve IT project best practices

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Digital Transformation Digest: ARM Invests In IoT, Privacy Advocates Press 'Five Eyes,' and More

Digital Transformation Digest: ARM Invests In IoT, Privacy Advocates Press 'Five Eyes,' and More

Constellation Insights

Welcome to Digital Transformation Digest, Constellation's daily compendium of news and analysis covering forward-thinking enterprises, mega-vendors, startups and developers.

ARM's Interesting IoT Move: Sometimes the price tag of a technology industry acquisition belies its symbolic significance. Such is the case with chipmaker ARM's £11.7 million purchase of Simulity Labs, which makes eSIMs (embedded subscriber identity modules), as V3 reports:

eSIMs are a new version of a standard SIM card which are not replaceable, often soldered directly to a circuit board. They are used in M2M/IoT applications, where there is no need to change the SIM card, and can also be used in remote SIM provisioning (switching a SIM between providers through software).

POV: "The difference between the design and specification of chips for use in IT-oriented devices such as servers and PCs, and chips for the millions of endpoint devices that are part of IoT is seen clearly in this acquisition," says Constellation Research VP and principal analyst Andy Mulholland. "Adding discrete SIM functionality to ARM's expertise in mobile technology is a powerful move that suggests ARM has a clear competitive vision for the high-growth IoT market."

Eyes on Five Eyes: The Five Eyes Alliance, comprised of the U.S., U.K., Australia, Canada and New Zealand, dates to 1946 and is based on intelligence sharing, counterterrorism and other national security issues. The problem, says the UK nonprofit group Privacy International, is that it has operated essentially in secret for far too long. PI wants a U.S. court to shed some light on the Alliance:

The most recent publicly available version of the Five Eyes surveillance agreement dates from 1955. Our complaint was filed before the U.S. District Court for the District of Columbia.

For years, PI has tried to obtain information about the agreement and the rules governing the Five Eyes alliance via freedom of information requests and other methods.

In the US, PI has made freedom of information requests to the National Security Agency, the Office of the Director of National Intelligence, the State Department, and the National Archives and Records Administration. All four agencies are subject to the Freedom of Information Act and all agencies have withheld the records PI seeks.

Our complaint seeks to compel disclosure of the current version of the agreement and records relating to the rules governing the government’s exchange of intelligence with the other members of the Five Eyes alliance.

PI "is seeking the agreement’s legal standards and limitations, not operational details," the statement adds.

POV: It's not clear whether PI's effort will be successful, but the Five Eyes Alliance does play a crucial role in privacy policy. Go here to read Constellation Research VP and principal analyst Steve Wilson's take on how the group can best set guidelines around cryptography.

Integrating data integrators: Private equity firms have made aggressive investments in enterprise software companies over the past 12 to 18 months. The trend is continuing with a $1.26 billion deal between Clearlake Capital and Centerbridge Partners that will merge data-integration vendors Syncosrt and Vision Solutions.

The company will go forward under the Syncsort name. Syncsort started out with a focus on data-sorting for mainframes but has since broadened its focus toward other types of data transformation. It positions itself as a "Big Iron to Big Data" specialist. Vision Solutions, meanwhile, focuses on data protection and backup for IBM Power Systems.

POV: Go here for a look at Constellation VP and principal analyst Doug Henschen's in-depth profile of Syncsort. As for this week's announcement, it makes a good deal of sense, Henschen says.

"Where Syncsort has long specialized in data-integration and processing options for the mainframe, Vision adds cloud migration, cloud backup and cloud disaster-recovery-as a-service for IBM Power, including IBM i and AIX deployments," he says. "It's a one-stop-shop that offers a broader and more cloud-centric focus than Syncsort could previously support."

Legacy Watch: The VAs half-billion dollar boondoggle: Cost and timeline overruns are sadly nothing new when it comes to U.S. government IT projects, but a particularly troubled effort at the Veterans Administration stands apart from the pack.

Hewlett-Packard Enterprise Services was awarded a $543 million contract four years ago to create a real-time tracking system for medical devices. A major reason for the project was a desire to ensure equipment is regularly sanitized in order to prevent disease and death, the Austin American-Statesman reports:

But the contract has been beset by a host of problems, including failed operational tests, questions over the reliability of equipment tags and fundamental concerns over whether the department’s WiFi can support the system, according to thousands of pages of emails, reports and documents obtained by the American-Statesman using the Freedom of Information Act.

The issues come as the VA prepares to replace its pioneering but ancient medical records system, VistA, at a cost of up to $16 billion. While VistA is 40 years old, its lack of viability going forward isn't due to core structural reasons, but rather neglect on the part of government officials, as an in-depth Politico report compellingly argues.

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The Time Is Now for a Public Debate Over Cryptography Policy

The Time Is Now for a Public Debate Over Cryptography Policy

Constellation Insights

Last week, the so-called "Five Eyes" nations of Australia, Canada, the U.K., the U.S. and New Zealand took part in their annual meeting on counterterrorism, intelligence-sharing and cybersecurity. While cryptography, particularly ways law enforcement could get around it in the interest of fighting crime, was expected to be a major part of the agenda, an official communication issued following the meeting hardly mentions cryptography, and does so in fairly bland, noncommital terms:

[E]ncryption can severely undermine public safety efforts by impeding lawful access to the content of communications during investigations into serious crimes, including terrorism. To address these issues, we committed to develop our engagement with communications and technology companies to explore shared solutions while upholding cybersecurity and individual rights and freedoms.

This vaguely worded commitment does little to advance an important issue, says Constellation Research VP and principal analyst Steve Wilson. "A genuine crypto policy debate needs to be had, and needs to be seen to be had," Wilson says.

The 1990s saw widespread debate over cryptography, one that didn't really have a winner, Wilson notes. "Most cryptographers said that encryption should be commercially available, that export controls were counterproductive, that government control was futile and that our enemies would roll their own," he says. While these points were not necessarily accepted by governments, there did come a detente whereby access to cryptographic technologies was freed up.

Today the argument has moved to new fronts. In the U.S., the FBI's demand that Apple create a backdoor allowing access to an alleged terrorist's iPhone prompted strong pushback from the company and public. (The Bureau ultimately hired outside help to crack the phone.)

"There are strong technical arguments that forcing exceptional access mechanisms into encryption algorithms will weaken the systems, making them more vulnerable to criminal attack," Wilson says. "But the arguments are difficult and technical. Most lay people, lawmakers include, continue to harbor naive visions of how encryption works, which leads to presumptions that cyber lock-picking is doable. Backdoors make encryption vulnerable by design and that's a bad thing."

However, civil libertarians and technologists shouldn't reject the governments' desires out of hand, Wilson said. Points to consider:

  • Has the threat of terrorism and organized crime become quantitatively and qualitatively worse since the 1990s?
  • To what extent are unbreakable, encrypted messages being used by terrorists? Are there no side channels, metadata or insiders available to law enforcement to monitor criminal activity?
  • Have there been mathematical advances in the past 20 years that might enable new ecryption methods with safe backdoors?

"I'm not a good enough cryptographer or social scientist to know the answers, but I do know the right people to ask," Wilson says. "I know that we need to ventilate these issues, engage the experts and trust their answers, if we are to move on without too many further distractions."

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Digital Transformation Digest: Microsoft Shakes Up Sales Org, Baidu Doubles Down on AI, and More

Digital Transformation Digest: Microsoft Shakes Up Sales Org, Baidu Doubles Down on AI, and More

Constellation Insights


Microsoft shakes up its sales org: Reports began emerging just prior to the U.S. holiday weekend that Microsoft was about to undertake a major reorganization of its sales force with an eye on shifting emphasis toward cloud sales. The timing coincides with the end of Redmond's fiscal year on June 30. While Microsoft itself has been fairly mum about the details, it did confirm changes are being made "to better serve our customers and partners."

Geekwire obtained a copy of an internal memo outlining those changes, which are set to be rolled out as soon as this week. The major ones include a business model segmentation into enterprise and SMC (small, medium and corporate) customers. Microsoft is also aligning enterprise sales teams around six verticals, which include manufacturing, financial services, retail, health, education and government, according to the site.

POV: It's hard to run a business these days without some level of interaction with Microsoft, and that means these organizational changes could be widely felt. It's also no surprise that Microsoft is trying to re-orient sales around cloud. But this type of reorg is standard for Redmond as it begins each new fiscal year, so time will tell if the changes are lasting or prove to be merely experimental. Constellation will have more on the Microsoft reorganization later this week.

Baidu makes more big moves in AI: While Chinese Internet giant Baidu is still mostly a consumer-focused company, one of many reasons to keep tabs on it from an enterprise perspective is its ongoing investments in artificial intelligence. Just a few months after unveiling Project Apollo, an open-source platform for autonomous vehicles, Baidu has announced that more than 50 partners have joined the ecosystem. They include car manufacturers such as Ford and Daimler; suppliers such as Bosch, NVIDIA and TomTom; and ridesharing companies, startups and universities.

Baidu's intentions for Apollo are grand. COO and group vice president Qi Lu, a former key executive at Microsoft, termed Apollo "the 'Android' of the autonomous driving industry," yet more open than the mobile OS, as Venturebeat reports.

Meanwhile, Baidu also announced the acquisition of Kitt.ai, a Seattle-based chatbot platform startup. Kitt.ai has more than 12,000 developers already using its Snowboy hotword detection service, with products deployed in smartphone apps, cars, homes and other locations, according to a company blog post.

Oracle CEO Mark Hurd takes a grilling: Oracle recently held a media day at its Redwood Shores, Calif. headquarters and as part of the event, CEO Mark Hurd was interviewed at length by Recode's Kara Swisher and then took questions from analysts and journalists in attendance. The result was one of the livelier sets of interactions you'll see between a top vendor executive and the ink-stained classes.

Now Recode has helpfully provided a full transcript of the event, which is well worth a read. Sure, Hurd gets in his talking points and manages to get in some of his trademark filibustering, but for the most part he's kept on his toes.

Legacy watch: The IT industry's 'working dead': Technologies come and go in the IT industry, and with them related careers and job roles. CIO.com has published a must-read feature (note: registratin required) on some of the latest tech gigs on the chopping block. The list has some usual suspects, such as COBOL programmers, that we suspect will be able to survive much longer than they have already. Still, the post is full of smart observations such as this one from James Stanger of industry group CompTIA:

“The IT jobs I see threatened are the repetitive ones and those that focus on only one type of OS or vendor system,” he says. “Today it’s not about the vendor or OS; it’s about where the information resides and how useful you are at storing, manipulating, and securing that information. It's all about connecting multiple systems now.” 

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