Results

Market Move - Red Hat snaps up CoreOS - The Kubernetes ecosystem heats up

Holger Mueller
Vice President and Principal Analyst Constellation Research

Holger Mueller is VP and Principal Analyst for Constellation Research for the fundamental enablers of the cloud, IaaS, PaaS and next generation Applications, with forays up the tech stack into BigData and Analytics, HR Tech, and sometimes SaaS. Holger provides strategy and counsel to key clients, including Chief Information Officers, Chief Technology Officers, Chief Product Officers, Chief HR Officers, investment analysts, venture capitalists, sell-side firms, and technology buyers.  Coverage Areas: Future of Work Tech Optimization & Innovation  Background: Before joining Constellation Research, Mueller was VP of Products for NorthgateArinso, a KKR company. There, he led the transformation of products to the cloud and laid the foundation for new Business Process as a…...

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Few open source standard have won faster than Kubernetes, and that also means the ecosystem consolidation is moving faster than almost any market in enterprise software. So it came as no surprise that Red Hat announced it acquired CoreOS.

 

 

 


So let's dissect the press release in our customary style – it can be found here:


Red Hat, Inc. (NYSE: RHT), the world's leading provider of open source solutions, today announced that it has signed a definitive agreement to acquire CoreOS, Inc., an innovator and leader in Kubernetes and container-native solutions, for a purchase price of $250 million, subject to certain adjustments at closing that are not expected to be material. Red Hat's acquisition of CoreOS will further its vision of enabling customers to build any application and deploy them in any environment with the flexibility afforded by open source. By combining CoreOS's complementary capabilities with Red Hat's already broad Kubernetes and container-based portfolio, including Red Hat OpenShift, Red Hat aims to further accelerate adoption and development of the industry's leading hybrid cloud platform for modern application workloads.

MyPOV – Good intro, shares the motivation (applications / containers everywhere), the prices (250 M) and where the new home is (Red Hat OpenShift) and the prize (hybrid cloud deployment). Kudos to the press release authors.


We believe this acquisition cements Red Hat as a cornerstone of hybrid cloud and modern app deployments.
PAUL CORMIER PRESIDENT, PRODUCTS AND TECHNOLOGIES, RED HAT

MyPOV – Ok good to have a quote, with the usual optimistic to grandiose outlook today woth Paul Cormier.


As applications move to hybrid and multicloud environments, a growing number of organizations are using containers to more easily build, deploy and move applications to, from, and across clouds. […]

MyPOV – No question containers are popular for load portability. Nice would have been a statement e.g. how many containers are run by Red Hat / CoreOS.


Founded in 2013, CoreOS was created with a goal of building and delivering infrastructure for organizations of all sizes that mirrored that of large-scale software companies, automatically updating and patching servers and helping to solve pain points like downtime, security and resilience. Since its early work to popularize lightweight Linux operating systems optimized for containers, CoreOS has become well-regarded as a leader behind award-winning technologies that are enabling the broad adoption of scalable and resilient containerized applications.

MyPOV – Fair history of CoreOS… but not sharing the Google investment, and plan to make Kubernetes more popular for on premises.. that master plan has pretty much paid off by now… and the market leader for Linux (Red Hat) gives CoreOS the biggest reach for on premises deployments.


CoreOS is the creator of CoreOS Tectonic, an enterprise-ready Kubernetes platform that provides automated operations, enables portability across private and public cloud providers, and is based on open source software. It also offers CoreOS Quay, an enterprise-ready container registry. CoreOS is also well-known for helping to drive many of the open source innovations that are at the heart of containerized applications, including Kubernetes, where it is a leading contributor; Container Linux, a lightweight Linux distribution created and maintained by CoreOS that automates software updates and is streamlined for running containers; etcd, the distributed data store for Kubernetes; and rkt, an application container engine, donated to the Cloud Native Computing Foundation (CNCF), that helped drive the current Open Container Initiative (OCI) standard.

MyPOV – Good summary of what CoreOS does and has achieved in remarkably short time. Red Hat now needs to explain and share what it plans to do with the products in the next months.


Red Hat was early to embrace containers and container orchestration and has contributed deeply to related open source communities, including Kubernetes, where it is the second-leading contributor behind only Google. Red Hat is also a leader in enabling organizations around the world to embrace container-based applications, including its work on Red Hat OpenShift, the industry's most comprehensive enterprise Kubernetes platform. Now with the combination of Red Hat and CoreOS, Red Hat amplifies its leadership in both upstream community and enterprise container-based solutions.

MyPOV – Everybody likes to claim to be an early adopter of a winning standard, but in this case RedHat has the chops to prove it, based on the Kubernetes distribution it has delivered… of course partnering with Google since a year on many levels never hurt that effort.


The transaction is expected to have no material impact to Red Hat's guidance for its fourth fiscal quarter or fiscal year ending Feb. 28, 2018.
The transaction is expected to close in January 2018, subject to customary closing conditions.

MyPOV – Things move fast in the open source and container world.


Paul Cormier, president, Products and Technologies, Red Hat
"The next era of technology is being driven by container-based applications that span multi- and hybrid cloud environments, including physical, virtual, private cloud and public cloud platforms. Kubernetes, containers and Linux are at the heart of this transformation, and, like Red Hat, CoreOS has been a leader in both the upstream open source communities that are fueling these innovations and its work to bring enterprise-grade Kubernetes to customers. We believe this acquisition cements Red Hat as a cornerstone of hybrid cloud and modern app deployments."

MyPOV – Good quote from Cormier on why Red Hat acquired CoreOS.


Alex Polvi, CEO, CoreOS
"Red Hat and CoreOS's relationship began many years ago as open source collaborators developing some of the key innovations in containers and distributed systems, helping to make automated operations a reality. This announcement marks a new stage in our shared aim to make these important technologies ubiquitous in business and the world. Thank you to the CoreOS family, our customers, partners, and most of all, the free software community for supporting us in our mission to make the internet more secure through automated operations."

MyPOV – Ok quote from Polvi, indeed a new phase for CoreOS. Good to thank all that got the vendor to this point.



 

Overall MyPOV

Containers have quickly become the deployment form of choice for enterprises, mainly because of their portability. And Kubernetes has practically won that game, being supported on all major clouds. But enterprises for a variety of reasons (security, performance, data residency being the most prominent ones) still deploy on premises. There the OS of choice is Linux, and Red Hat is the market leader. So adding more support for Kubernetes makes sense for Red Hat. It also has the upside to convert some CoreOS customers to on premises with Red Hat.

On the concern side, this acquisition removes one of the key promoters of Kubernetes, funded by Google with the intention to help its propagation… but Kubernetes growth and foot print are likely robust enough to not be damaged from the market move.

But for now, congrats to Red Hat on a key acquisition and good luck to the CoreOS team and customers being part of the Red Hat ecosystem, likely going to be all good news.


 
Tech Optimization Data to Decisions Digital Safety, Privacy & Cybersecurity Innovation & Product-led Growth Future of Work SaaS PaaS IaaS Cloud Digital Transformation Disruptive Technology Enterprise IT Enterprise Acceleration Enterprise Software Next Gen Apps IoT Blockchain CRM ERP CCaaS UCaaS Collaboration Enterprise Service Chief Information Officer Chief Technology Officer Chief Information Security Officer Chief Data Officer Chief Executive Officer

Microsoft Updates Teams with New Integration Features

Alan Lepofsky
Alan Lepofsky
Vice President & Principal Analyst Constellation Research

Alan Lepofsky - VP and Principal Analyst, Constellation Research. With almost two decades of experience in the collaboration software industry, Lepofsky helps organizations improve the way their employees work together to get their jobs done. Lepofsky’s primary research area The Future of Work, focuses on: integrating collaboration and business processes (Purposeful Collaboration), structuring work via Social Task Management, leveraging analytics and digital assistants to work more productively, the strategic impact of mobile computing on business transformation, and measuring workforce culture based on Digital Proficiency instead of age. Twitter: @alanlepoLinkedIn: https://ca.linkedin.com/in/alanlepo     , Title: Big IdeasIntelligent Collaboration: The Intersection of…...

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Today Microsoft released an update to Microsoft Teams that enhances the "seamless hub for personal productivity and team collaboration" experience.

Here is my review:

Future of Work

Market Move - SAP acquires Callidus - More Sales Effectiveness in the Back Office of the Front Office

Holger Mueller
Vice President and Principal Analyst Constellation Research

Holger Mueller is VP and Principal Analyst for Constellation Research for the fundamental enablers of the cloud, IaaS, PaaS and next generation Applications, with forays up the tech stack into BigData and Analytics, HR Tech, and sometimes SaaS. Holger provides strategy and counsel to key clients, including Chief Information Officers, Chief Technology Officers, Chief Product Officers, Chief HR Officers, investment analysts, venture capitalists, sell-side firms, and technology buyers.  Coverage Areas: Future of Work Tech Optimization & Innovation  Background: Before joining Constellation Research, Mueller was VP of Products for NorthgateArinso, a KKR company. There, he led the transformation of products to the cloud and laid the foundation for new Business Process as a…...

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SAP hasn't been on the 1B+ acquisition path since 2014, and at the same time is building out its next generation ERP offering with S/4HANA. SAP seemed to be on an organic build out path of capabilities, so the more (or less) was the surprise that SAP stepped back into acquisition mode, acquiring Dublin, CA based CallidusCloud (Callidus going forward here) for 2.4B US$.

 

 

 

So let's dissect the press release in our customary style, it can be found here:

DUBLIN, Calif. and WALLDORF, Germany — SAP SE (NYSE: SAP) and Callidus Software Inc. (doing business as CallidusCloud®) (Nasdaq: CALD) today announced that SAP America, Inc. has entered into an agreement to acquire CallidusCloud, the leader in cloud-based Lead to Money (Quote-to-Cash) solutions.

MyPOV - Good summary. Interesting that the acquisition is done by SAP America, not SAP SE… but we have seen that before and I am sure the colleagues with a tie (aka the financial analysts) have a good answer for this.


SAP will assemble the most complete and differentiated portfolio to manage today's customer experience
CallidusCloud's Lead to Money suite for sales combined with SAP's Customer Engagement suite creates leading CRM solution portfolio

MyPOV – The usual bold statements made around an acquisition. SAP is never shy here, but to be fair Callidus gives SAP some options of differentiation around Sales Effectiveness (this is guiding sales people to do the 'right' thing in selecting leads to develop, opportunities to pursue, products to select – all with influencing them via variable compensation – while having some training / gamification assets to educate them on what is 'right'). Not so clear how SAP's Customer Engagement suite (is that SAP Hybris?) combines to that. Callidus has been great to steer sales people to do the 'right' thing, not end users / consumers.


The CallidusCloud board of directors has unanimously approved the transaction. The per share purchase price of $36.00 represents a 21% premium over the 30-day volume weighted average price per share and a 28% premium over CallidusCloud's 90-day volume weighted average price per share. The per share price represents an enterprise value of approximately $2.4 billion. SAP has elected to fund the transaction with existing cash balances and an acquisition term loan. The transaction is expected to close in the second quarter of 2018, subject to approval from CallidusCloud stockholders, clearances by the relevant regulatory authorities, and other customary closing conditions. The transaction is expected to be essentially neutral to SAP's non-IFRS earnings per share for fiscal 2018 and accretive to SAP's non-IFRS earnings per share for fiscal 2019.

MyPOV – Good to see the transparency on the financing… looks like SAP wants to keep some powder dry for more (?) and take advantage of still low interest rates. Interesting in the cloud era that SAP sees now accretive effects in earning starting only in 2019. Maybe the acquisition and onboarding costs are eating those. Again a tidbit to check with the financial analysts.


Reinventing the Front Office
The acquisition gives SAP immediate leadership in the Lead to Money space that includes sales performance management (SPM) and configure-price-quote (CPQ). CallidusCloud offers a full suite of SPM and CPQ solutions, including sales enablement, sales analytics and customer engagement. The combination of SAP's assets with CallidusCloud's will deliver the most complete, end-to-end, fully cloud-based 'Lead-to-Cash' offering. CallidusCloud has been a partner of SAP for several years, based on a joint selling agreement.

MyPOV – Another gutsy statement in regards of reinventing the front office. Interesting SAP does not use the more common CRM, this maybe the start of SAP pushing more again into CRM. Front Office is a good term, but most ERP vendors shied away from it as Back Office isn't terribly appealing. The irony is that Callidus is the Back Office of the Front Office – doing the choreography of sales people. Callidus has an immediate effect on SAP's traditional CRM offering (Is it still Cloud 4 customer?). That's where Callidus comes from and does the bulk of its revenue. Good to notice that both vendors have been partners since a long time. That should accelerate product based integration offerings.


Two Growth Companies, Stronger Together
CallidusCloud is a synergistic addition to SAP's portfolio and significantly strengthens SAP's position in the customer relationship management (CRM) space. CallidusCloud's solutions are tailored to the specific needs of sales people on the ground and link sales-related information, such as pricing, incentives, and commissions, to enterprise resource planning (ERP) systems. CallidusCloud as part of SAP will seamlessly link front and back offices, align sales, compensation and corporate goals, and ensure real-time data flow between the field and finance department.

MyPOV – This is the most realistic and real paragraph of the press release. Yes, its about CRM and Sales Effectiveness – with a heavy slant in regards of variable compensation of sales people (or Incentive Compensation). And variable pay has a wider organizational impact, with a large part of the processing happening in the CFO organization, sometimes even the CHROs (close to payroll).


Statements by the Chief Executive Officers
"SAP is connecting the back office to the front office in this consumer-driven growth revolution," said Bill McDermott, CEO of SAP. "Our customers are focused on reinventing sales, service, marketing, and commerce. The addition of CallidusCloud aligns perfectly to SAP's innovation strategy to transform the front office. SAP gives CallidusCloud the global scale to accelerate its already impressive growth. These two strong companies will be better together, help the world run better and improve people's lives."
 MyPOV – Good quote of McDermott. Obviously "Back Office" does not have a bad reputation these days in the eyes of SAP. Stressing the need of reinvention… which SAP badly needs on the CRM front.


"We are super excited to join forces with SAP," said CallidusCloud's CEO Leslie Stretch. "This move gives customers precisely what they want, the market leading Sales Performance (SPM), Sales Execution (CPQ) and Sales Enablement clouds combined with SAP Hybris and S/4HANA. This is true Lead to Money, beyond CRM and beyond Quote-to-Cash. It's the joined-up Front Office and Back Office Cloud everyone needs for 21st Century Business. In addition, the purchase price provides substantial value to our stockholders."

MyPOV – Good quote by Stretch. Might be the last time we hear of "Lead to Money", the Callidus marketing moniker. As with all acquisitions – it will be interesting how the Callidus business will be organized. Past multiple billion acquisitions saw SAP preserve the organization initially (SuccessFactors, Business Objects, Ariba …) – no mention here.


Additional Business Synergies
SAP's S/4HANA business suite in the cloud, SAP Hybris, and Gigya solutions already help businesses deliver new customer experiences, connecting the demand chain to the supply chain. SAP Hybris solutions help companies serve consumers in any channel, on any device. In addition, SAP Hybris's revenue and billing solutions enable companies to monetize new business models. Gigya helps companies secure, protect, and service the consumer's digital identity in the age of data protection and regulation.

MyPOV – Good attempt to paint the big picture and synergies… but as usual these days with SAP – the demarcation lines between S/4HANA and new assets – here SAP Hybris aren't fully clear. Good to see the mention of Gigya, but also not clear how it plays here (customer first party data for Sales Effectiveness – huh? Callidus is about to align employees – not customers / consumers directly).


CallidusCloud, combined with SAP's solution portfolio, also will offer companies powerful tools to enhance sales execution and transform customer engagement. CallidusCloud's portfolio will strengthen existing SAP sales solutions. The portfolio will be enriched with sales planning and forecasting, territory management, and pipeline management. SAP's sales content management will benefit from easy access to contracts, collateral, and learning.
 MyPOV – A much fairer paragraph on what Callidus brings to SAP and what the synergies are – mostly on the back office side of the front office.


Additionally, with the Lead to Money suite, CallidusCloud is a leader for cloud-based Quote-to-Cash solutions. This area includes solutions for sales performance management (SPM), sales execution including configure-price-quote (CPQ) applications, sales enablement including learning applications, customer engagement and analytics. CallidusCloud SPM solutions give salespeople instantaneous knowledge of their compensation associated with particular product and pricing configurations and reduce errors in calculating sales commissions and compensation arrangements. CallidusCloud CPQ solutions enable salespeople to identify and configure product packages that have built-in rules for discounts and that can generate proposals for the customers on the spot and during the conversation with the customer. CallidusCloud CPQ solutions also can automatically generate contracts in real time while the salesperson is with the customer. Part of CallidusCloud's offering is a sales-focused and mobile-native learning platform called "Litmos," which shows solid growth.

MyPOV – Good summary of what Callidus can do. Glad there was no link to SuccessFactors (yet) or SAP HCM – as learning platform was mentioned- that could / would create more confusions – though I expect SAP to leverage synergies between the across the Bay neighbours… Learning is crucial to aid enterprises with acceleration.


SAP will follow a strategy of openness that will continue to support integration of CallidusCloud solutions with third-party installations. 

MyPOV – Very important statement here – as from my estimate more than 70% of Callidus customers don't use … SAP. But most prominently Callidus partners Oracle and Salesforce. Keeping these customers will be key from a financial ROI for SAP of this acquisition. The next months will be key to keep the confidence of these customers up.


Upon completion of the transaction, SAP expects to consolidate all CallidusCloud product assets within SAP Hybris solutions as part of SAP's Cloud Business Group. The existing management team will continue to lead CallidusCloud. The SAP Cloud Platform is to be used for the technical integration of CallidusCloud solutions.

MyPOV – So the home for Callidus is clear. Part of SAP Hybris, under Atzberger, rolling up to Enslin. Glad to see the SAP Cloud Platform mentioned here – though Callidus has some interesting technology and architecture for SAP overall and SAP CP (e.g. OrientDB, a multi model database, with a graph database origin).

 

Implications, implications... 

SAP Customer Implications

This is likely going to be good news for SAP customers, who get market leading Sales Effectiveness capabilities. Joint customers are the lucky group, but will have to look at what happens to integration, and should seek re-assurance in regards of old (likely pre SAP Cloud Platform) built integrations. License considerations will also have to be considered. A joint roadmap should be asked for, as well as re-assurance of in flight promised capabilities to be delivered.
 

Callidus Customer Implications

See above for joint SAP customers. Customers with other ERP back ends will not have to panic, as SAP's record for diverse backends has improved, nonetheless re-assurances in regards of continued operation are key (beyond this press release). Contact your Callidus account manager asap and be visible. Special attention needs to be given to non SAP integration / functionality commitments that they are delivered, and will have the usual support and maintenance timelines. Non SAP customer also need to seek re-assurance on longer term roadmap commitments that are crucial to them.
 

Partner Implications

Joint partners will be the lucky ones, but may have to do some practice consolidations. Their clients need to make sure they keep the professionals they like to work with. Callidus only partners have to make a call if they want to become SAP partners – or focus on the other partners. Callidus and other ERP / Salesforce partners may look for alternatives, depending on how large their business and trust with SAP is.
 

Competitor Implications

Overall CRM / ERP integration will become more important, which is great news for customers, as they operate both CRM and ERP and have often left at integration odds (even with the same vendor for both automation areas). When enterprise vendors have to focus more on Sales Effectiveness, good things happen for enterprises. Likely Oracle will have to ramp up investments, and Salesforce will have to ease integration work needed to integrate with ERP backends. This acquisition will also put pressure on Salesforce to move the best of breed yard stick out further – to justify integration costs any non ERP based offering in CRM has to justify.
 

Overall MyPOV

A good move by SAP, that had to do something to get its CRM business invigorated. Looking at the back office of the front office – which Callidus largely does – is a good move as it allows differentiation towards key competitors Salesforce and Oracle. Moreover, Callidus capabilities align well with synergies next to ERP, of course SAP Hybris, SAP SuccessFactors and even SAP Ariba (Contract creation, next best action etc.). Most importantly for enterprises, it means ERP players (SAP, Oracle) are paying more attention to CRM again, which in recent years has been left largely to Salesforce. More competition and functional differentiation is good for enterprises.

On the concern side, SAP is late to re-invigorate its CRM plans. Salesforce has done a lot of business in the SAP install base in the last years, so likely that needed a reaction. With Atzberger, McDermott has put a talented executive on the job, it will be important to fill out roadmap and more plans through 2018. It's not too late for SAP, but not much time left, going beyond the realization that more than e-Commerce (aka SAP Hybris) are needed to play big in CRM.

Overall good news, customers and prospects now have to await the road maps, which maybe at at Sapphire if all goes well. Stay tuned.


 
Data to Decisions Future of Work Innovation & Product-led Growth New C-Suite Sales Marketing Next-Generation Customer Experience Digital Safety, Privacy & Cybersecurity Tech Optimization SaaS PaaS IaaS Cloud Digital Transformation Disruptive Technology Enterprise IT Enterprise Acceleration Enterprise Software Next Gen Apps IoT Blockchain CRM ERP CCaaS UCaaS Collaboration Enterprise Service Chief Information Officer Chief Technology Officer Chief Information Security Officer Chief Data Officer Chief Executive Officer

Can ALE Rainbow Differentiate Via Verticals

Alan Lepofsky
Alan Lepofsky
Vice President & Principal Analyst Constellation Research

Alan Lepofsky - VP and Principal Analyst, Constellation Research. With almost two decades of experience in the collaboration software industry, Lepofsky helps organizations improve the way their employees work together to get their jobs done. Lepofsky’s primary research area The Future of Work, focuses on: integrating collaboration and business processes (Purposeful Collaboration), structuring work via Social Task Management, leveraging analytics and digital assistants to work more productively, the strategic impact of mobile computing on business transformation, and measuring workforce culture based on Digital Proficiency instead of age. Twitter: @alanlepoLinkedIn: https://ca.linkedin.com/in/alanlepo     , Title: Big IdeasIntelligent Collaboration: The Intersection of…...

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This week I attended Alcatel-Lucent Enterprise's (ALE) partner and analyst conference, Connex18 in Riga, Latvia. ALE is currently known mainly for unified communications, contact centre, PBX and telephony type solutions, but they are evolving to a more cloud based Unified Communications as a Service (UCaaS) and Communications Platform as a Service (CPaaS) provider. For my coverage area, that means they are entering the Enterprise Group Messaging (ex: Microsoft Teams, Slack, Cisco Spark, etc.) market with their product ALE Rainbow.  In the video below I provide my thoughts on the event.

Future of Work Sales Marketing Next-Generation Customer Experience Revenue & Growth Effectiveness Data to Decisions Innovation & Product-led Growth New C-Suite Tech Optimization Chief Marketing Officer Chief People Officer Chief Revenue Officer Chief Experience Officer

DisrupTV Braves the Storm in Davos #WEF18

Aubrey Coggins
Aubrey Coggins
Constellation Research

Aubrey (Levinstone) Coggins manages Constellation's marketing and communications programs and is the producer of DisrupTV, a weekly Web series on innovation and the enterprise.  She previously served as a senior manager of corporate communications at Egnyte and held account roles at Access Communications and The Hoffman Agency. Born and raised in Texas, she received a bachelor's degree in Public Relations from The University of Texas at Austin – Hook ‘em!   ...

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DisrupTV was on the road in Davos this week. What’s trending and on the minds of leaders from across the globe, especially the executives in Switerzland braving the freezing snowfall and massive transit congestion? 

 

R “Ray" Wang, founder and principal analyst at Constellation Research, and Vala Afshar, chief digital evangelist at Salesforce, caught up with some inspirational thought leaders at the Wipro Pavilion to share the latest thoughts from Davos and the top ideas for 2018 from experts in tech policy, economic challenges, blockchain, innovation, cultural shifts and entrepreneurship.

Blockchain was all the rage on the technology front with concurrent conferences that brought innovative sessions, drew interested investors, and attracted entrepreneurs to converge unofficially at Davos. The use cases on supply chain, commerce, public sector reform, drug discovery, patient care, and finance rose to the top. The unofficial CryptoHQ conference proved to be a hit, leading the way by bringing non-traditional Davos attendees to participate in the conversations.

On the non-technology side, global business leaders focused on responding to the U.S. tax law changes and addressing inequality in the workplace. Leaders continue talking around the goal of bringing together a shared future in a fractured world through pay equality, job creation, tech for good, and inclusion programs.

Many of these themes can be found in Constellation’s upcoming Futurist Framework for 2018 - 2022. The beta preview of Constellation’s Futurist Framework was also released sharing the first three elements of Economic, Societal and Political trends for 2018 to 2020.

Check out Wednesdays interviews with: 

  • Richie Etwaru, CDO at IQVIA & Author of "Blockchain: Trust Companies"
  • Jayraj Nair, Global Head of IoT and VP at Wipro
  • David Chou, VP & CIO/CDO at Children’s Mercy Kansas City
  • Saul Kaplan, Founder and Chief Catalyst at Business Innovation Factory.

Check out Tuesday’s interviews with: 

  • Bernt Wahl, Executive Director of Brain Machine Consortium
  • Nigel Cameron, Tech/Futures Editor of UnHerd and President Emeritus 
  • Joanne Moretti, SVP & Chief Marketing Officer at Jabil and General Manager at Radius Innovation and Development
  • Steven Waterhouse, Co-Founder of Orchid Labs

 

 

Here's Monday’s interviews with:

  • Naveen Rajdev, CMO at Wipro
  • Annalie Killian, Catalyst and Amplifier & Engagement Director at sparks & honey
  • Nagesh Rao, Eisenhower Fellow & AAAS-Lemelson Invention Ambassador Advisor

 


 

New C-Suite Innovation & Product-led Growth Davos DisrupTV Executive Events Leadership 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 Chief Experience Officer

MicroStrategy Makes Case for Agile Analytics on its Enterprise Platform

Doug Henschen
Former Vice President and Principal Analyst Constellation Research

Doug Henschen is former Vice President and Principal Analyst where he focused on data-driven decision making. Henschen’s Data-to-Decisions research examines how organizations employ data analysis to reimagine their business models and gain a deeper understanding of their customers. Henschen's research acknowledges the fact that innovative applications of data analysis requires a multi-disciplinary approach starting with information and orchestration technologies, continuing through business intelligence, data-visualization, and analytics, and moving into NoSQL and big-data analysis, third-party data enrichment, and decision-management technologies. Insight-driven business models are of interest to the entire C-suite, but most particularly chief executive officers, chief digital officers,…...

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MicroStrategy promises quick-to-deploy data-discovery and departmental capabilities that sync with its venerable, enterprise-scale platform.

MicroStrategy is back. After a few years in which the business intelligence and analytics company made little noise, it’s back with new energy, new capabilities for ad hoc and departmental users and a new educational push around what it calls its “Map of the Intelligent Enterprise.”

MicroStrategy has flourished at the top of the BI market for more than two decades, specializing in enterprise-wide deployments at truly high scale – supporting thousands and, in some cases, tens of thousands or even hundreds of thousands of users. As smartphones and tablets emerged in the 2008-2011 timeframe, MicroStrategy was the first mover. To this day MicroStrategy remains at the forefront of delivering mobile BI capabilities with fluid, device-native interactivity.

The shift that MicroStrategy largely missed (along with many other established BI vendors), was the rise of agile, self-service capabilities aimed at mainstream, departmental and line-of-business users. That’s the void that Tableau, Qlik and, more recently, Microsoft PowerBI, have happily filled. Like other established vendors, MicroStrategy responded with ad hoc data discovery and data visualization capabilities of its own. Yet many MicroStrategy customers bowed to grassroots demand and embraced third-party self-service options for their ease of use.

What the self-service crowd learned, as use of their tools spread, is that high-scale deployments and establishing a single source of truth are not so simple. These vendors have been adding data-governance features, administrative controls and management capabilities to turn tools into what they now describe as platforms.

MicroStrategy’s strength, meanwhile, was long been its platform. At last week’s MicroStrategy World event in Las Vegas, company Founder, Chairman and CEO, Michael Saylor, vowed that the company is now ready to deliver “massive departmental productivity [that] syncs with the enterprise.”

Part of delivering on that promise rests on the product. MicroStrategy Dossier, introduced last fall, goes beyond dashboards to deliver collaborative analytical applications and workbooks. A revamped MicroStrategy Desktop interface introduced at the World event better supports data discovery. And a new Workstation interface was added to help power users quickly build and scale up enterprise content.

Beyond software, Saylor said that enterprise software companies have to provide “service and technique that ensures customer success.” Technique is about best practices, and that’s where MicroStrategy’s “Map of the Intelligent Enterprise” comes in. A printed, 16-inch by 23-inch fold-out copy of the map was provided to every MicroStrategy World attendee. Saylor referenced a digital version of the map throughout his keynote, making the point that the platform has to be deployed and used in the right way if it is to deliver a single version of the truth that empowers “pervasive analytics.”

Detailing the roles that should be in place, for example, Saylor said organization should have a lead analytics architect – just one person in charge -- to create, publish and optimize the data layer so there aren’t multiple versions and interpretations of the truth. And there should be a lead application architect – again, a single point person – who sets standards for analytical applications so there aren’t overlapping and conflicting approaches that contribute to performance problems.

Large enterprises tend to have most of, if not all, the architectural and administrative roles detailed in MicroStrategy’s Map of the Intelligent Enterprise, Saylor told me. But where deployments have failed,  where performance is not as expected and where data inconsistencies have cropped up, Saylor said MicroStrategy tends to discover overlapping responsibilities and inconsistent standards, interpretations and approaches.

To address these breakdowns in best practices, MicroStrategy has stepped up its educational resources, including free options, for both customers and partners who can help customers get the most from their deployments. It’s also eyeing certifications and more community based training opportunities, but the first step is raising awareness of the resources already available.

MyPOV on MicroStrategy World

MicroStrategy World presented what I saw as an honest discussion of what’s required for customers to get to proverbial intelligent enterprise. Instead of pretending that products alone can deliver success, Saylor stressed that MicroStrategy’s improved ad-hoc data-discovery and departmental capabilities will be no better than disconnected Excel spreadsheets or Tableau dashboards if they don’t draw on a single source of truth and are not synchronized back to the enterprise environment as usage scales up.

MicroStrategy's vision for how ad hoc and departmental assets draw from and sync with the
enterprise as the scope of consumption grows.

I got the sense that most of the attendees of MicroStrategy World -- more than 2,000 executives from enterprise customers ranging from AIG, Coca-Cola and Merck to Citi, Optum and UBS – were comfortable with what I would characterize as top-down messaging aimed at executives, analytics leaders, project managers and administrators of high-scale, enterprise-wide deployments.

As for the ease of use and agility of the new ad hoc and departmental capabilities, including Dossier, Desktop and Workstation, these were briefly demonstrated during Chief Technology Officer Tim Lang’s second-day keynote, but it was a fleeting glimpse. Yes, there were detailed track sections and hands-on workshops for those interested, but if MicroStrategy is truly serious about retaining (or regaining) the self-service ad hoc and departmental workloads, it could do a better job of demonstrating and even  celebrating its “massive departmental productivity” on the main stage. Show me, don’t tell me. Let the live and video-taped customer testimonials include more front-line analysts, Dossier builders and ad hoc explorers rather than just the top-dog analytics executives.

The passion at MicroStrategy World was most evident around what MicroStrategy has always done best -- providing the platform for powerful analytical applications deployed at high scale. The company’s prowess with a variety of consumption options was also on display, now extending from multi-screen conference room displays at the high end down to smart phones and smart watches.

MicroStrategy is also pushing the envelope of voice interaction, with Saylor describing Amazon Alexa as the third most important platform to emerge after iOS and Android. Here’s where MicroStrategy and others could start to redefine self service. As I note in my recent report, “How Machine Learning and Artificial Intelligence will Change Business Intelligence and Analytics,” line-of-business users don’t necessarily want to have to open up a report or interpret a data visualization. And as the speed of decision making increases, there may be no time for such interaction. In that world, users will want to be able to simply ask questions and get precise answers and recommended actions.

Related Reading:
Embrace the Era of Smart Analytics
Salesforce Dreamforce 2017: 4 Next Steps for Einstein
Tableau Conference 2017: What’s New, What’s Coming, What’s Missing

 

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News Analysis - Informatica Delivers the Industry's Next-generation iPaaS

Holger Mueller
Vice President and Principal Analyst Constellation Research

Holger Mueller is VP and Principal Analyst for Constellation Research for the fundamental enablers of the cloud, IaaS, PaaS and next generation Applications, with forays up the tech stack into BigData and Analytics, HR Tech, and sometimes SaaS. Holger provides strategy and counsel to key clients, including Chief Information Officers, Chief Technology Officers, Chief Product Officers, Chief HR Officers, investment analysts, venture capitalists, sell-side firms, and technology buyers.  Coverage Areas: Future of Work Tech Optimization & Innovation  Background: Before joining Constellation Research, Mueller was VP of Products for NorthgateArinso, a KKR company. There, he led the transformation of products to the cloud and laid the foundation for new Business Process as a…...

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More and more software is moving to the cloud and it allows vendors to redefine the value proposition of their software during the process. A good example is Informatica with its integration product capabilities.

 

 

So let's dissect the press release in our custom style – it can be found here:

Redwood City, Calif., Dec. 19, 2017 – Informatica, the enterprise cloud data management leader, today announced the general availability of its next-generation integration Platform as a Service (iPaaS) solution, Informatica Intelligent Cloud Services.
MyPOV – Good intro, we know what this is about and General Availability – GA – is always a key milestone for enterprise software. Extra kudos for shipping in time as communicated at Informatica World in Spring of 2017.


Enterprises can leverage the new iPaaS to power their data-driven digital transformation in a multi-cloud environment, and benefit from a flexible, cloud-based integration and data management solution that is built to scale at the speed of business. Informatica Intelligent Cloud Services offers a unified and modern user experience across iPaaS integration patterns and is supported by a modular, microservices architecture that is customizable and easy to navigate. The new iPaaS experience is leveraging the CLAIRE engine to provide AI metadata driven recommendations to automate and accelerate integration and data management work.
MyPOV – A functionality rich paragraph describing what the Informatica iPaaS does: multi-cloud data driven transformation and integration. Good to see the AI angle with the CLAIRE engine.


The IT landscape is evolving to support complex business needs around data management and current solutions are not enough. Enterprises are rethinking iPaaS usage to drive innovation across front end and back end, supporting all levels of users.
MyPOV – Correct, enterprises are realizing, that they have a new kind of integration problem at hand. On the bright side they now have the option to move the integration engine platform from on premises to the public cloud, a key inflection point for the iPaaS industry.


[…] Informatica Intelligent Cloud Services is built on a foundation of trust, with security and privacy as an integral part of the infrastructure successfully audited for compliance with security regulations like HIPAA and certifications like SOC2 type II, SOC3 and more. Additionally, enterprises will be able to use Informatica Intelligent Cloud Services as part of a solution that is compliant with the upcoming General Data Protection Regulation (GDPR), which goes into effect May 2018. For more details check out trust.informatica.com.MyPOV – When enterprises move automation to the cloud, they immediately have questions on security and privacy. Good to see Informatica addressing these proactively in the press release, with extra kudos of mentioning the looming GDPR deadline.


To learn more, participate in the Informatica virtual cloud event, "iPaaS Reimagined: Informatica Intelligent Cloud Services Launch," featuring a keynote, deep-dive demos, live expert chat, and insightful sessions on a range of cloud/hybrid topics.
MyPOV – Always good to see virtual, on demand events, which take out the demand of calendar synchronicity for attendants.


 

Overall MyPOV

Good to see the progress by Informatica moving the integration portfolio to the cloud, as announced at Informatica World. CxOs are ready to use new platforms to integrate their applications, as the enterprise automation portfolio more and more disintegrates between on premises and multiple clouds. In the past integration tools would stay on premises, as the core of automation resided there, going forward we see more automation happening across several clouds, resulting in multi-cloud landscape. Such a landscape makes on premises based integration tools obsolete and expensive, as e.g. network transfer rates are one of the key costs in a hybrid cloud environment. It's early days for Informatica' s assistant – CLAIRE – so it will be interesting to see first use cases. The technology and demand are both promising, it's up to vendors to make it happen.

On the concern side, this is a new release of software, so the usual cautions apply to adoption. CxOs need to be aware of potential quality risks as early adopters, or work closely with early references of fast followers. Informatica has a good track record from a quality perspective, but integration is a binary animal, either it works – or it doesn't.

But for now, congratulations to Informatica to move its integration portfolio to the cloud. A key new option for CxOs to solve the integration puzzle of their enterprise automation, and an early entry in the cloud based iPaaS market. Stay tuned.
 
 
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Market Move - ADP Acquires WorkMarket to Further Extend Human Capital Management to Contingent Workers

Holger Mueller
Vice President and Principal Analyst Constellation Research

Holger Mueller is VP and Principal Analyst for Constellation Research for the fundamental enablers of the cloud, IaaS, PaaS and next generation Applications, with forays up the tech stack into BigData and Analytics, HR Tech, and sometimes SaaS. Holger provides strategy and counsel to key clients, including Chief Information Officers, Chief Technology Officers, Chief Product Officers, Chief HR Officers, investment analysts, venture capitalists, sell-side firms, and technology buyers.  Coverage Areas: Future of Work Tech Optimization & Innovation  Background: Before joining Constellation Research, Mueller was VP of Products for NorthgateArinso, a KKR company. There, he led the transformation of products to the cloud and laid the foundation for new Business Process as a…...

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This morning ADP informed the markets about its acquisition of WorkMarket, founded 2010 and a leading platform / marketplace for freelancers.

 

 

 

 

 

 

A first move by a key HCM player, so certainly worth one of our customary news analysis blog posts, with a Market Move format angle at the end. The press release can be found here.

ROSELAND, NJ -- (Marketwired) -- 01/22/18 -- ADP® today announced the acquisition of WorkMarket, a leading cloud-based workforce management solution provider that allows companies to build and manage an integrated workforce across W-2 employees, 1099 contractors, vendors and other types of workers. With this acquisition, ADP builds on its current portfolio of industry-leading payroll and human capital management solutions that help clients and workers modernize the way work gets done while unlocking productivity, engagement and growth.
MyPOV – Good summary of the acquisition and of the potential… could have used some of the often-seen stats on the growing gig economy to underline the relevance.


WorkMarket was founded in 2010 and is headquartered in New York City. Backed by leading venture firms such as Union Square Ventures, Spark Capital and Foundry Group, as well as Accenture Ventures, WorkMarket helps companies manage their integrated workforce in a simple, secure and compliant manner. WorkMarket' s innovative solutions include tools to source and vet independent workers, manage their engagements, and pay and evaluate these workers. In addition to offering robust freelancer management functionality, the company has extended its capabilities to help clients optimize how work gets done across any labor type. Their client base spans global brands, as well as small and mid-sized businesses.
MyPOV – Good and fair summary of what WorkMarket does. The capability to optimize across labor types is what is interesting for people leaders these days.


"At ADP, we innovate by anticipating how the world of work evolves and how dynamics -- like the rise of the gig economy -- impact the needs of our clients and the modern workforce. WorkMarket allows us to provide ready access to a growing contingent labor pool and the tools to manage and pay them in a secure, efficient and compliant manner. Through this acquisition, ADP continues its tradition of helping clients keep pace with change and manage increasing complexity," said Carlos Rodriguez, president and CEO of ADP. "WorkMarket is a proven expert in freelancer management. We are thrilled to welcome their team to ours and to leverage our global footprint and bring scale to their expertise and technology."
MyPOV – Good quote by Rodriguez. Describes the goal going forward – scale WorkMarket globally and to the ADP customer base – with an eye on the core of ADP, payroll.


The rise of the contingent workforce is shaping the global workforce. ADP data shows that approximately 80% of U.S. businesses already rely on independent contractors and the number of contingent workers as part of the overall workforce is growing. According to […], by 2020 nearly 60% of human resource leaders will use a unified talent strategy for employees and contractors. With this acquisition, ADP becomes the only human capital management provider with broad functionality for HR professionals to manage and have insights into this new mosaic of labor, which will be comprised of both full-time employees and contingent workers.

MyPOV – Ok – here are the market sizing statistics. More on ADP being the only one… below.


Jeff Wald, co-founder and president of WorkMarket, said, "The WorkMarket team is thrilled to be joining ADP. We share the same vision of enabling companies and workers alike to navigate the changing labor marketplace with greater ease, and we look forward to offering our solutions to ADP's vast client base."MyPOV – Always good to have a quote of the founder of the acquired party in the acquisition press release. Judging from the presence of Thomas Buckingham (ADP acquired TMBC almost exactly 1 year ago – see here) Jeff Wald maybe around for a few years. It's always good to see the founders carrying the torch on a great scale. We will see.


 

Overall MyPOV

After overcoming the Pershing Square board challenge in fall of 2017, ADP keeps firing on all cylinders. It announced a new payroll and has more to come in 2018. Getting in early on the gig economy is a good move, as it has massive repercussions on how workers get paid. And while the new payroll supports all the gig economy requirements, there is more needed to feed that payroll: Contractor data, validation, market places – to mention a few. A key piece is also workforce scheduling, planning and simulation, something ADP will have to consider likewise – its either build, partner (existing partnerships with Kronos are in place) or acquire here, too. Future will tell.

On the concern side, one more acquisition of course. But ADP has shown it can acquire and keep momentum… WorkMarket though requires a different architecture and approach than traditional ERP / HCM software: Marketplaces, working on both sides of the firewall, marketing automation etc. are some of the prominent additional design points. It will be interesting to follow ADP through 2018 and see how soon the vendor will tackle the area. Oh, and on the claim, being the first HCM vendor, so maybe, as SAP with Fieldglass will have a word to say (but ok, ADP could say SAP is a ERP vendor). But all is good as it means choice and competition by vendors with deep pockets to help enterprises manage their heterogenous workforces of the future. Seamless employee / contractor management is the prize, with all the implications on the compliance, motivation and alignment side.

But for now, congrats to ADP for a key acquisition and to WorkMarket – that just got turbo charged. Stay tuned for more.

 
 
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Slack Shared Channels Help Provide External Collaboration

Alan Lepofsky
Alan Lepofsky
Vice President & Principal Analyst Constellation Research

Alan Lepofsky - VP and Principal Analyst, Constellation Research. With almost two decades of experience in the collaboration software industry, Lepofsky helps organizations improve the way their employees work together to get their jobs done. Lepofsky’s primary research area The Future of Work, focuses on: integrating collaboration and business processes (Purposeful Collaboration), structuring work via Social Task Management, leveraging analytics and digital assistants to work more productively, the strategic impact of mobile computing on business transformation, and measuring workforce culture based on Digital Proficiency instead of age. Twitter: @alanlepoLinkedIn: https://ca.linkedin.com/in/alanlepo     , Title: Big IdeasIntelligent Collaboration: The Intersection of…...

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Why is email so popular? Because it works. If you know someone's email address you can send them a message. It does not matter which email system they use, what client they use, what device they use, where they are in the world, etc. Anyone can email anyone else. However, that ease of use also enables the issue with email, its misuse for scenarios better suited to other tools. Contrast this to social networking, where the only people that can communicate with each other are people in the same network. Within a company social networking is great. Employees can communicate, collaborate and coordinate with any of their colleagues, because they are all using the same tool. But what happens when you want to bring in someone from the outside like a customer or a partner? Typically that requires giving them an identity and password on your system. That raises all sorts of security, administration and licensing issues. It's also a pain for the user, because it means yet another ID/PW on yet another system to remember. Now multiply that over and over again by the number of external connections and you quickly see why social networking has some serious hurdles for adoption with external participation.

Slack is hoping to improve this situation using what they called Shared Channels. This feature allows two companies (who are both already paying for Slack) to communicate with each other using a channel that spans across the two different companies. So say Company A uses Slack and they want to connect with their customer Company B (who has to also be using Slack), they can create a shared channel that employees in both companies can use. This is much better than Company A having to create, manage and pay for IDs and PWs on their system for Company B's employees.

In Sept 2017 Slack announced (the beta of) Public Shared Channels, which allow anyone in Company A and Company B to join a shared conversation. Today Slack announced (the beta of) Private Shared Channels, which also allow two Slack customers to bridge their organizations, but in this case the channels are hidden, and administrators need to invite members to join. I think this will be a far more common use case than public shared channels, as most cross-company conversations are better suited to a limited audience.

It's important to note that Slack's shared channels are currently not available for Enterprise Grid customers. I hope this is rectified soon, as this feature will become increasingly important as large enterprises try and improve adoption of social tools.

Shared Channels are a great step in the right direction towards making social networking easier across organizations. But don't forget, this is just for Slack customers. Each social networking tool (Slack, Cisco Spark, Google Hangouts, Workplace by Facebook, etc, etc, etc) is still its own silo, unlike email where anyone can communicate with anyone else. Until social networking supports cross product communication (which may never happen), communicating with people that use a different products will remain a challenge.

 

Future of Work

Constellation's Futurist Framework (PESTEL); The Societal Outlook Pre-Davos

R "Ray" Wang
Principal Analyst and Founder Constellation Research

R “Ray” Wang is the CEO of Silicon Valley-based Constellation Research Inc. He co-hosts DisrupTV, a weekly enterprise tech and leadership webcast that averages 50,000 views per episode and blogs at www.raywang.org. His ground-breaking best-selling book on digital transformation, Disrupting Digital Business, was published by Harvard Business Review Press in 2015. Ray's new book about Digital Giants and the future of business, titled, Everybody Wants to Rule The World was released in July 2021. Wang is well-quoted and frequently interviewed by media outlets such as the Wall Street Journal, Fox Business, CNBC, Yahoo Finance, Cheddar, and Bloomberg. Short Bio R “Ray” Wang (pronounced WAHNG) is the Founder, Chairman, and Principal Analyst of Silicon Valley-based Constellation…...

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2018 Davos Focuses On Creating A Shared Future In A Fractured World

The World Economic Forum (WEF) kicks off January 23rd to 26th in Davos-Klosters, Switzerland.  This year’s theme is about “Creating a Shared Future In A Fractured World”.  From the program notes for this year’s event, WEF sees the following:

At the close of the 20th century, the presumption was that greater economic interdependence among countries, buttressed by liberal democratic institutions, would ensure peace and stability well into the new century. The global context today has changed dramatically: geostrategic fissures have re-emerged on multiple fronts with wide-ranging political, economic and social consequences.
Realpolitik is no longer just a relic of the Cold War. Economic prosperity and social cohesion are not one and the same. The global commons cannot protect or heal itself.
 
Politically, governance is being transformed by new and contending strategic narratives. Such narratives have emerged in response to national, regional and global divides, but many of them are bereft of the innovation, inspiration and idealism essential for transformational change. Economically, policies are being formulated to preserve the singular benefits of global integration while limiting its shared obligations. Yet, such policy prescriptions are fragmented, biased or uninformed when considered in the context of sustainable development, inclusive growth and the Fourth Industrial Revolution.
 
Socially, citizens yearn for responsive leadership that addresses local and national concerns; yet, a shared identity and collective purpose remain elusive despite living in an age of social networks. All the while, the social contract between states and their citizens continues to erode. Changing the situation on the ground requires more responsive governance, but this cannot absolve governments of their regional and global responsibilities.
 

PESTEL Approach Powers The MegaTrends In Constellation’s Outlook

Ever three to four years, Constellation publishes its futurist framework based on the PESTEL model of systems thinking.  Constellation approaches 2020 with this systemic point of view.  The full PESTEL report examines the political, economic, societal, environmental, and legislative (PESTEL) macro trends that will affect the business disruption ahead.  This framework serve as the basis for Constellation’s research foundation across seven business themes.  These PESTEL trends can be summarized as:

Success in navigating these trends will require executives to develop a strategy for dominating digital disruption.  Board rooms must be cognizant of such changes in order to make the tough decisions required to thrive in the disruption ahead.  This blog post focuses on the second area Economic Outlook

Societal (S) Shifts Showcase Self-awareness And Mass Personalization

The widening societal shifts that fracture today’s society transcend age. Societal trends and norms reflect a society split across digital proficiency, the union of understanding a technology and use of that technology.  In fact, age is no longer the deciding factor of digital proficiency.  For instance, millennials may not be more tech savvy than individuals of other generations.  However, urbanites may have more of an affinity than rural dwellers.

As technology ever deeply weaves into the fabric of life, these perceptions impact social shifts and drive populist movements fueled by mass personalization and a growing self-awareness movement.  In many cases, emotions have overpowered logic.  Convenience has taken over ethics and norms.  As society seeks simple explanations to complex problems, technology companies can expect to bare the brunt for “all good” and “all evils” of society going forward.

  • Social justice efforts move from inequality to unfairness (2018). The debate intensifies around unfairness versus inequality.  From diminishing worker powers, gig economy workers, short-term stock market incentives, cost of higher education, and mergers and acquisitions, some economic and social processes have exacerbated inequality.  Early efforts to combat this inequality reveal deep structural and societal issues. However, inequality due to lack of opportunity remains differentiated from inequality due to unfairness.  The focus on removing elements of unfairness will drive new social movements that towards a more meritocracy based model than a victimization and shaming approach.

    Constellation’s POV: Expect social justice movements to look at structural unfairness and identify how to improve access to opportunities without the bias of race, gender, religion, sexual orientation, and other traditional forms of discrimination and move towards logic vs emotion.

 

  • A movement grows for the right to be disconnected (2018). The frenzied, always-on, connected world has spurned a backlash in behaviors.  Information overload, jittery fingers, panic attacks spawn new psychological disorders.  Internet gaming disorder, electronic screen syndrome, internet addiction have all been considered for updates in the Diagnostic and Statistical Manual of Mental Disorders.  As humanity grapples with the connected world, many seek the right to be disconnected without being judged.  A movement is on to retain the right to pay in cash, not be electronically tracked, and connect when only needed, while  not being seen as a terrorist or social misfit for being disconnected.

    Constellation’s POV: Privacy will emerge as the new luxury for the super rich as they spread disinformation, remove records, and hide identity as best as they can.  Expect new services to provide these capabilities to the common person for a price and expect pressure for legislation to enable a new level of privacy – disconnection!

 

  • Super star elite cities exacerbate the digital divide. Cities such as Amsterdam, Austin, Bangalore, Beijing, Berlin, Boston, Dubai, Johannesburg, London, Nairobi, New York, Seoul, Shanghai, Singapore, Sydney, Tel Aviv, and Toronto have emerged as both tech hubs and knowledge hubs.  These Tier 1 superstar cities bring together the talent, the money, and the opportunities in a winner-takes all model at the expense of rural areas.  The result – the most innovative industries, impactful exponential technologies, elite talent, and concentration of wealth will disproportionately impact society.

    Constellation’s POV: These super star elite cities will create a spiraling stagnation and job loss of other economic regions if society fails to intervene.  In order to address the digital divide, decentralization and federated models will be required to share in the progress.  Expect technologies such as autonomous vehicles and market forces such as high real estate costs to create some opportunities.

 

  • The new suburbs emerge with autonomous vehicles. Lower density, higher quality living gain favor with autonomous vehicles adoption. Autonomous vehicles will shift forecasts for real estate demand and population density to Tier 3 and Tier 4 centers. The ability to afford lower cost real estate, enjoy lower population density, and improve commuting productivity, will create a new mass migration to the lower density, rural living.  These hubs will be easily connected to the super star elite cities as commuting options improve.  Moreover, autonomous delivery will reduce the time for shopping and procurement of goods as well, freeing up time and leading to a higher quality of life.

    Constellation’s POV:  Humans like to be near other humans as much as they like to have their own space.  Autonomous vehicles enable the quest for personal space and less density with access to super star elite cities.  This new movement to the suburbs will spawn new societal trends over the next 10 to 15 years such as the anywhere workplace, all day dining, and binge partying.

 

  • The self-quantification movement shifts to health and self-preservation.  Growing self-awareness and new technologies enable a greater level of self-improvement.  In fact, the quest for self-preservation has grown with the ability to measure and quantify the human condition.  Beyond fitness trackers, this movement has led to new fads such as wellness cocktails, fitness vacations (fitcations), and VIP c-suite physicals.  As new genetic techniques such as CRISPR arrive to do live, gene-editing, more human augmentation will occur.

    Constellation’s POV: Greater average human life expectancy from 81 years to 150 years of age will spawn a new set of societal trends. Self-quantification will increase self-awareness and test the limits of humanity as humanity augments itself.

 

  • Block chain and cryptocurrencies will change banking forever. The prospects of efficient peer-to-peer payments sans government and financial institution meddling have led to an exploration of new models of value exchange.  From currency to credits to bartering, the ability to exchange value among individuals creates new business models.  For example, in China the ability to handle peer to peer payments with ease for the common person and wide spread internet access has created a paid content model that has yet to emerge in other countries as citizens are cash rich, time poor.  Cryptocurrencies will improve efficiencies in emerging markets where the overhead of financial institutions and over regulation cannot serve the average citizen

    Constellation’s POV: Cryptocurrencies and block chain test the usefulness of centralized monetary policy. The first credible country to boldly issue a cryptocurrency will topple the centralized banking, and reserve currency, Ponzi schemes of today’s governments.  Expect individuals to shift their holdings to a model that is more efficient and vastly more private.

 

  • Resentment and backlash emerge toward Silicon Valley for disruptive technologies and business models (since 2014).  Societies now realize the good, the bad and the ugly with how disruptive technologies can affect business models.  Expect a growing backlash against Silicon Valley, the venture capital firms, technocrats and tech geeks who decimate high paying jobs and against businesses using technology as a weapon without considering the human toll.  In addition, the growing gap in wealth and an increase in power allow Silicon Valley to reshape the world to its needs. Similar to the Occupy movements against Wall Street, these movements represent the tip of the iceberg in social unrest and populist action.

    Constellation’s POV: The technology companies will expand their tech for good programs in their fight to change public perception.  Most have an ethos to address inequality, yet expect the media to take an aggressive stance in serving a check and balance role as a growing backlash erupts.

 

  • Access trumps ownership in a sharing economy (since 2014).   From car sharing in the late 1990s, to vacation rentals to collaborative financing, the sharing economy has been inching its way into the forefront of the consumer’s mind.  Since, thought leaders such as Rachel Botsman, Lisa Gansky and Anne-Sophie Novel, have been chronicling the forces, underlying trends and players behind the movement.  Key success factors in this new business model require the identification of underutilized assets, optimization of value through time slicing of access, trading on the goodwill and generosity of others and building a reputation economy

    Constellation’s POV: A sharing economy model is not for every industry, yet this trend may affect how products and services companies shift their offerings and business models.  Expect brand promise and authenticity to power future sharing economy models.

 

  • Sacrificing privacy for convenience, loyalty, status, and security, in a post-NSA/Snowden world (since 2014).  The proliferation of digital exhaust – the plume of signals and artifacts left behind in our digital world – begs the questions of data ownership and privacy.  As organizations move toward data-driven business models, consumers and enterprises must find a balance between individual privacy rights and the desire to deliver prediction and mass personalization at scale. Moreover, the concepts of trust and transparency become paramount, as authenticity remains the Holy Grail of corporate and personal brands..

    Constellation’s POV: There is a battle for Personally Identifiable Information (PII) at the heart of many digital business models; consumer awareness of how their PII fuels business will lead to agitation for transparency and a better deal.  One will expect to see new privacy compacts emerge.

Your POV.

Have you taken account a futurist framework in your 2018 to 2020 planning?  Afraid of a business extinction event like Kodak?  Would you like to join a network of other early adopters?  Are you ready to begin your digital transformation journey?   See you at Davos! Learn how non-digital organizations can disrupt digital businesses in the best-selling Harvard Business Review Press book Disrupting Digital. 

Join like minded folks at the Constellation Executive Network. 

Add your comments to the blog or reach me via email: R (at) ConstellationR (dot) com or R (at) SoftwareInsider (dot) org.

Please let us know if you need help with your Digital Business transformation efforts. Here’s how we can assist:

  • Developing your digital business strategy
  • Connecting with other pioneers
  • Sharing best practices
  • Vendor selection
  • Implementation partner selection
  • Providing contract negotiations and software licensing support
  • Demystifying software licensing

 

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