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Digital Transformation Digest: Workday Rising Recap, Google's Software Supply Chain Tool, Walmart Rolls Out Rapid Returns

Digital Transformation Digest: Workday Rising Recap, Google's Software Supply Chain Tool, Walmart Rolls Out Rapid Returns

Constellation Insights

Workday Rising 2017 recap: Myself and colleage Holger Mueller were guests of Workday this week for its annual Rising conference and had the opportunity to speak with a host of customers and company executives, including co-CEO Aneel Bhusri. Here are some of the key findings that arose during those conversations.

  • Workday has a solid base in HCM and financials, but when it comes to expanding further into ERP, manufacturing won't be a priority. But supply chain is a possibility from the order management standpoint, Bhusri said. It's also open to partners taking the reins. "If someone popped up and wanted to build a killer supply chain management app on our platform ... I would be thrilled," he said.
  • While Workday is rolling out a PaaS strategy after years of speculation, it is in no hurry to become the next Force.com. Initially, the focus will be on customers and systems integrators building extensions to the core applications. “We’re not looking for an ISV to build an app on the Workday platform for probably a year," Bhusri said.
  • Workday is moving some of its workloads to Amazon Web Services while maintaining its own datacenter footprint. Many customers want to remain in Workday's cloud, and the company doesn't expect the majority to be on the public cloud until between five and seven years, Bhusri said. AWS is "the right architectural decision" for Workday, particularly due to the rapid flow of cutting-edge features AWS delivers in areas such as machine learning. While Workday will call out to those services from its own cloud, over time customers may come to agree that it makes more sense to be native on AWS.
  • When it comes to future mergers and acquisitions, Workday will focus on "cool technologies to enhance the platform," Bhusri said. While applications are also a possibility, Workday won't look to buy broad suites, he added. 
  • Workday announced the limited availabilty of Prism, the analytics service based on the acquisition of Platfora last year. General availability is set for the second half of next year. The timeframe reflects the need to work with a small set of early customers to prove out Prism's scalability, as well as to wait for important features still under development, chiefly a data-discovery toolset.
    Platfora, which was based on Hadoop and Spark, amounted to more of an acquihire than a technology purchase, and thus a fair amount of engineering work was on order, Workday CTO Joe Korngiebel said in an interview. (For one thing, Platfora was on-premises and single-tenant.) In any case, Workday talked to 25 companies before settling on Platfora, which suggests the talent it acquired was indeed top-notch.

Google launches tool for the app-dev supply chain: Open source software is de rigeur for next-generation application development, but the proliferation of options enterprises can use comes with its own set of problems. To that end, Google is partnering with Red Hat, IBM and other companies on an open-source project called Grafeas. Here's how Google describes Grafeas's intentions in a blog post:

Grafeas (“scribe” in Greek) provides organizations with a central source of truth for tracking and enforcing policies across an ever growing set of software development teams and pipelines. Build, auditing and compliance tools can use the Grafeas API to store, query and retrieve comprehensive metadata on software components of all kinds.

As part of Grafeas, Google is also introducing Kritis, a Kubernetes policy engine that helps customers enforce more secure software supply chain policies. Kritis (“judge” in Greek) enables organizations to do real-time enforcement of container properties at deploy time for Kubernetes clusters based on attestations of container image properties (e.g., build provenance and test status) stored in Grafeas.

Without uniform metadata schemas or a central source of truth, CIOs struggle to govern their software supply chains, let alone answer foundational questions like: “Is software component X deployed right now?” “Did all components deployed to production pass required compliance tests?” and “Does vulnerability Y affect any production code?” 

POV: Other companies involved with Grafeas include Black Duck, Twistlock, Aqua Security and CoreOS. Overall, Grafeas is targeting a crucial weakness in modern software development, wherein the vast array of open-source components give enterprises flexibility while simultaneously creating a pool of risk and uncertainty over their provenance and security. Google is aligning Grafeas with Kubernetes, the open-source container orchestration project that emerged from its internal operations and has steadily gained in popularity. It's a smart idea to open-source Grafeas now and get the broader Kubernetes community involved. 

Walmart rolls out rapid returns for online purchases: The customer service and returns counter at Walmart stores can be a dreary place, marked by long lines, cranky shoppers and overwhelmed workers. Walmart is looking to transform the returns experience through a new program powered by its mobile application. Here are the details from its announcement:

Using Mobile Express Returns, customers can complete the returns process in just two simple steps:

1. Initiate the Return: Using the Walmart App, select the Walmart transaction and item(s)* to return and follow the prompts to start the return process.

2. Finish the Return at the Store: At the store, fast-track through the line via the Mobile Express Lane** at the Customer Service Desk. Scan the QR code displayed on the card reader with the Walmart app, and then hand the item to the associate.

Refunds will be credited to customers’ payment account as soon as the next day, and they will no longer have to send off their product and wait days for an online return to be credited. Given 90 percent of Americans live within 10 miles of a Walmart store, it’s never been faster or easier to make an online return.

POV: It's a classic, timely and effective reverse supply chain play by Walmart. Moreover, it is a solid strike against rival Amazon, which is building out a store-level returns strategy through moves such as the acquisition of Whole Foods and partnerships with the likes of Kohl's. Walmart has 4,700 stores in the U.S. and for many Americans is a weekly—at minimum—shopping destination. Friction-free returns for online goods is a no-brainer, and Walmart is planning to add rapid returns for products bought in stores as well. 

The bottom line is that the omnichannel retail war remains at a fever pitch, and in many cases, such as this one, both companies and consumers can end up betting from competition-driven innovation.

Future of Work Marketing Transformation Matrix Commerce Next-Generation Customer Experience Tech Optimization

Digital Transformation Digest: Microsoft and AWS Team Up on Machine Learning, Box Unveils AI Tools, Dell's $1 Billion IoT Bet

Digital Transformation Digest: Microsoft and AWS Team Up on Machine Learning, Box Unveils AI Tools, Dell's $1 Billion IoT Bet

Constellation Insights

Amazon Web Services, Microsoft team up on deep learning: Co-opetition is a driving force in the development of artificial intelligence technologies, evidenced by a new partnership between Amazon Web Services and Microsoft. The companies are collaborating on a new library for deep learning called Gluon. Here are the details from a Microsoft blog post:

Gluon is a concise, dynamic, high-level deep learning library, or interface, for building neural networks. It can be used with either Apache MXNet or Microsoft Cognitive Toolkit. Gluon offers an easy-to-use interface for developers, highly-scalable training, and efficient model evaluation–all without sacrificing flexibility for more experienced researchers. For companies, data scientists and developers Gluon offers simplicity without compromise through high-level APIs and pre-build/modular building blocks, and more accessible deep learning.

It's available on GitHub now, for use in conjunction with MXNet, with Cognitive Toolkit support coming later. AWS has also released a blog post with its take on Gluon, which is available here.

POV: The new partnership between Microsoft and AWS is reminiscent of the recent ONNX format announcement, in that it’s aimed at making it easier for developers to work with deep learning libraries, says Constellation VP and principal analyst Doug Henschen

AWS embraced MXNet, a deep learning framework designed for cloud infrastructure, in May, and Gluon has already been a supported interface in MXNet. 

At its recent Ignite event, Microsoft executives stressed that the company has an open strategy where deep learning and analytical frameworks are concerned, Henschen notes. "Efforts like ONNX and Gluon are aimed at making machine learning and deep learning work easier for a broader base of developers, but in both cases Microsoft’s favored library and those of its respective partners—Caffe2 in the case of the Facebook/ONNX partnership and MXNet in the case of the Amazon/Gluon partnership—is the first beneficiary."

Box adds AI to its content management mix: Content management unicorn Box used its Boxworks event this week to introduce Box Skills, a number of AI-powered capabilities designed to make the platform much more than a place to store and share files. 

There are three initial skills. The first is Image Intelligence, which applies object detection along with handwriting and text recognition. The metadata created helps index images for search.

Audio Intelligence transcribes audio files, making them searchable by words or topics. Video Intelligence also provides transcriptions, plus topic detection and facial recognition. 

Box has also created Skills Kit, which can be used by ISVs, SIs and enterprise IT shops to develop custom Box Skills, particularly for industry-specific business processes. The kit allows third parties to bring in whatever machine learning frameworks they'd like to use in conjunction with Box. 

At BoxWorks, the company gave a few examples of custom skills, such as one giving quality assurance teams the means to search a call center recording database by topics and sentiment. 

Finally, Box has unveiled Box Graph, a machine learning model that gains insight about a customer's organization according to how its workers use and share content. Initially, Box Graph will surface content an employee is or has been working on; recommend content from others it deems relevant; and show what content is the most popular within a company. 

Both Box Skills and the Skills kit will enter beta early next year.

POV: "Bringing AI to the content in Box is important, because it elevates the content from just being stored in Box, to being used right within Box," says Constellation VP and principal analyst Alan Lepofsky.

It's notable that Box has architected the Skills kit to enable a variety of machine learning models, he adds. However, it's not yet clear what the licensing and pricing will be for associated API calls, Lepofsky notes.

Check out Lepofsky's more in-depth take on Box's news in the video below.

Examining Dell's billion-dollar IoT bet: Dell Technologies has announced it will spend $1 billion on product development, partnership activities and other areas over the next three years as part of a new division centered on IoT. It is the company's biggest push yet into IoT. Here are some key details from Dell's announcement:

The company’s new IoT Division will be led by VMware CTO Ray O’Farrell, and is chartered with orchestrating the development of IoT products and services across the Dell Technologies family. The IoT Solutions Division will combine internally developed technologies with offerings from the vast Dell Technologies ecosystem to deliver complete solutions for the customer.

In essence, the division will bring together software and hardware assets Dell already has, such as VMWare Pulse IoT Control Center and Edge Gateways, while bringing in OT (operation technology)-centric products from partners.

Dell is also working on a number of new products, such as Project Nautilus, a software platform that ingests and analyzes IoT gateway data in real time, and Project IRIS, for security at the edge of IoT networks.

POV: Dell's desire to be a one-stop shop for IoT, albeit with the help of partners, reflects the current market landscape. Hitachi recently launched Vantara, an IoT-focused unit that it says provides both IT and OT know-how. 

It's also important to look at the bigger picture underlying Dell and others' IoT moves.

"There is a new accord developing across the market around the manner in which IoT and AI—and directly associated technologies such as machine learning—are deployed to deliver business value," says Constellation VP and principal analyst Andy Mulholland. "Increasingly, the term systems of Eegagement is used to describe the manner in which data is gathered around the enterprises activities in respect of the real world of events and actions, whereas the term systems of record is used to describe the role of Enterprise IT in recording transactions to create historical data for analysis."

The point is that just as enterprise IT aligns to the business objective of centralizing and reducing variation in process, systems of engagement align to the new digital business model of engaging with the events at the ‘edge’ of the enterprise, where it interacts with its markets, customers, suppliers, even its own dynamic operations, he adds.

"As deployment experience builds it has become very clear that a significant amount of edge activity must be processed at the edge, within the context and timeframe that drives its business value," Mulholland says. "Cisco identified this as fog computing several years back, but Dell has benefited from its significant market in industrial processors connected to sensors on automated production lines to really grasp the requirement and with this investment move to take a leading position."

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Get Ready for Connected Enterprise

Get Ready for Connected Enterprise

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There are just twelve days until Constellation's Connected Enterprise! We can't wait to see you in Half Moon Bay. Here you’ll find everything you need to prep for Connected Enterprise.

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Preparing for Connected Enterprise

How should one prepare for Connected Enterprise? Just show up, that's it! Connected Enterprise is a full service executive retreat. This means that from the moment you check in, everything is taken care of for you. No need to build an agenda, we've got you covered. In addition, Constellation will provide all meals, parties (including open bar), and a round of golf or spa treatment. You just sit back, partake in conversations with thought leaders, and soak in the sunshine.

View the Agenda

We've arranged an awesome program filled with must-see sessions for any leader seeking to navigate the era of digital business.

Check out the agenda here

Connected Enterprise Perks: golf or spa

Treat yourself to a round of golf or spa treatment on us. You should have specified your preference when you registered. Golf is scheduled for October 24 1pm - 6pm PT. Spa treatments may be booked on October 27 anytime after 12:00 pm PT.

CCE golf

See Who's Attending

Join the Connected Enterprise 2017 LinkedIn group to connect with other attendees.

How to Get Here

Connected Enterprise 2017 will be held at the Ritz-Carlton Half Moon Bay. 1 Miramontes Point Rd, Half Moon Bay, CA 94019

San Francisco International Airport is the nearest airport. San Jose International Airport and Oakland International Airport are farther options.

Parking for overnight guests is valet only at $49 per night, per car. The day parking fee is $30 USD per day, per car.

Augmented Reality at the Lego Store

Augmented Reality at the Lego Store

Robots versus Humans. Where will you shop?

Robots versus Humans. Where will you shop?

Many people like to shop local retailers versus going to big box stores. Do you think we’ll see similar stands for supporting stores that remain focused on human staff versus robots?

You’ve probably heard me talk about how I still love the human interactions when going to the bank, but I also use ATMs.

What’s the line in the sand? Cost vs convenience? Consistency vs conversation?

ATM vs pizza robot?

Salesforce IoT Explorer Edition transforms IoT into a business manager's tool

Salesforce IoT Explorer Edition transforms IoT into a business manager's tool

In May this year Salesforce introduced its concept of the Five Transformations of Enterprise Software, which seemed a rational organization of Salesforce product sets. Those charged with finding the deployment paths, and starting projects, leading to Enterprise Transformation for Digital Business should see the potential in the Five Transformations to delivering a much-needed coherent approach. The starting point to Digital Business lies in gaining access to radical new data to allows Business Managers to deploy new intelligent ‘read and react’ capabilities, but to do this IoT connectivity has to made a business tool.

To do this the same approach has to be applied across the entire enterprise complex mix of activities, to constantly try to match the changing circumstances of market forces and events with internal capabilities. Digital Business is applying a massive acceleration to any and all of these factors, driving the need for radical rethinking of Business and Organizational models. In 1979, a time of relatively static market activities, Harvard Professor Michael Porter introduced his now famous Five Forces Framework to analyze and understand the external competitive forces of a market on an Enterprise. Back then, and remember this is before the impact of computing, let alone the Internet, there was time for each of the forces to be quantified and an appropriate Enterprise strategy planned.

The five forces are certainly still present in the market, but in the interconnected online business markets of today the speed of change has reduced the ability to use the model. The Enterprise focus has shifted towards looking for how to provide dynamic responsiveness, the ability to make an Enterprise ‘Agile’, to align to the realities of Digital Markets and Business Models. Whilst the concept of Agile is appealing simple, the reality is not, and that’s where Salesforce enter the picture with their approach to Enterprise Software transformation.

Salesforce IoT Explorer Edition is a key part of the Salesforce announcement of Five Transformations of Enterprise Software a significant move in defining the necessary operational characteristics for success in dynamic Digital Markets. There is no like for like comparison between Porters Five static forces and the Salesforce Five operational capabilities because the whole context of Business has changed. Three year strategies and Enterprise level Transformation is no more instead constant dynamic reinvention, and opportunities maximization through swift small moves is the requirement.

The Salesforce Five Transformations relate directly to this, placing the focus on changing five core operational characteristics, or capabilities, that together transform Enterprise ‘Agility’. Individually and collectively the Five Transformations offer granular flexibility and inherent integration to provide the much sought-after shift from the rigidity of IT Enterprise Applications and architecture integration towards the flexibility of Business Management driven deployments. The introduction of the Five Transformations represents a logical extension of the Salesforce core strategy to transform the delivery of business value and market competitiveness by changing the technology provisioning model. In the Five Transformations Salesforce has introduced an explicit path to deliver complete Enterprise Transformation.

It’s a well thought through approach and goes a long way to answering some big questions, starting with how to deliver incremental high value business change through small non-disruptive steps. Business management friendly operating characteristics, are matched with technology sophistication based on the experiences of first wave deployments. The introduction of Salesforce IoT Explorer Edition, to drive ‘Connectivity’ Transformation, (read the full announcement here), demonstrates why each of the five provides a transforming Enterprise role in the path towards Digital Business.

Salesforce IoT Explorer Edition is Salesforce's connectivity play with a vital role in Salesforces five transformations to enables business users to drive monetization and profitability.

Salesforce IoT Explorer Edition feeds the other four Transformations new forms of insightful data on Enterprises activities and Market events from a wide variety of new sources. To conduct Digital Business an Enterprise requires ‘Connectivity’, to provide ‘Engagement’ with a wide range of everyday devices, or sensors, a wholly different functionality to the ‘networking’ of Computers and Applications in IT systems.

Connectivity provides the direct input of Business valuable data that lies at the heart of Digital Business, without the data from “connectivity’ there cannot be the innovative insightful outcomes that Business Managers are seeking. IoT is a key starting point, and a technology function checklist shows Salesforce has learnt and applied a great deal of experience from deployments over the last few years. All-important second-generation maturity extends capabilities into complex IoT estates where end points provisioning and ownership may belong to different organization.

Salesforce position ‘Connectivity’ as one of the Transformations that an Enterprise must make as with the advent of ‘Systems of Engagement’ the definition of data sources that will require ‘connectivity’ extends potentially right across the Enterprise, and its activities. Today’s IoT solution choice will either frustrate or enable the ongoing demand for ‘Connectivity’ across the Enterprise to enabling an ongoing transformation into new Digital Business models.

The development of the Digital Enterprise will not be as a single Enterprise wide massive transformation project. The realistic vision relates to using Enterprise ‘Agility’ techniques to deliver a flow of individual high value business projects. Currently Business Managers are in many cases frustrated by the apparent technology and cost difficulties that seem to be preventing them from making the first steps even at the first stage of IoT.

There is a familiar ring to this problem as Salesforce well knows, having empowered a generation of frustrated Business Managers to create CRM as the business tool they needed, with appropriate deployment and pricing. The business requirements to gain value from using IoT is not dissimilar, and the Salesforce approach to transforming ‘Connectivity’ is a good match to their expectations. Add the inbuilt relationship to existing customer centric activities and the other four Transformation, and the result is that Business Managers capabilities to define and deploy innovative Digital Business solutions are, well, Transformed!

Business Manager’s Headlines:

Salesforce IoT is built to optimize connected Device data across Enterprise systems of record. It is built directly into the Salesforce Platform application to provide seamless integration with the data that drives value for business; (i.e. Case History, opportunity status, asset history, etc.). Salesforce IoT differentiates itself by enabling Salesforce’s primary customer: the business user who understands what drives value for their organization, rather than hard core software engineers.

Technology Function Headlines:

Salesforce IoT is a platform product from Salesforce with the ability to ingest data through the tried and tested Salesforce API. At its core, Salesforce IoT implements a simple UX on top of a finite state machine which allows users to model complex nonlinear flows and take actions based upon easy declarative logic. Salesforce formula language and UX metaphors simplify the orchestration authoring process while simultaneously providing simple syntax for enriching device data from CRM.


Connectivity within Systems of Engagement

  • Engagement with Customers; Successful reoccurring revenue from the provision of Digital Business Outcomes extends relationship management into a much broader engagement around recognition of continual satisfaction in the provision of the agreed Outcome.
  • Engagement across Markets; Digital Markets are continuously dynamic as factors ranging from demand levels, and events, combine with supply and pricing, to change competitive positions.
  • Engagement with People; A great deal of market shaping now occurs through engaged, or involved, people creating, sharing and exchanging views and opinions.
  • Engagement with Buyers; Events and circumstances create revenue opportunities that engagement capabilities must recognize and provide a contextual aligned optimized response.
  • Engagement with Machines; The first level of Service provisioning will be dependent on using ever increasing amounts of IoT sensing either added to existing equipment, or built into new equipment.
  • Engagement with Outcomes; The Services management of individual machines, (Air Conditioners, Heating plant, etc.) has to be consolidated with the bigger picture of an Outcome, (Maintenance of a selected Temperature in a Building).
  • Engagement with Ecosystems; Ecosystems of specialist providers have long been a feature of sophisticated Service Management provision, (a full Building Management Service contract provider would use different companies for different elements).
  • Engagement across the Enterprise; Systems of Engagement do not exclude the need for internal engagement across the Digital Enterprise, as it too represents a similar dynamic environment to any of the above. Internal Enterprise engagement to monitor the availability of resources, capacity, capability, etc. is as important as the external engagement factors above.

 

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Workday Rising 2017 Day One Recap: Benchmarking, Analytics and PaaS In Focus for Mature Cloud Vendor

Workday Rising 2017 Day One Recap: Benchmarking, Analytics and PaaS In Focus for Mature Cloud Vendor

Constellation Insights

Workday Rising day one recap: Some 8,500 attendees converged on Chicago's McCormick Place convention center for Workday Rising 2017 this week, a number that reflects the cloud HCM vendor's steady march toward $2 billion in annual revenue. The event showcased Workday's status as a well-established, fast-growing yet mature cloud vendor focused on customer loyalty and acquisition as well as technology innovations. Here are some of the highlights.

Taking on ADP, Cornerstone with Workday Benchmarking: Workday is delivering on an announcement made at last year's Rising conference with Workday Data-as-a-Service. The initial product is Workday Benchmarking, which uses customer-authorized, anonymized data to generate industry-specific performance metrics.

Workday is going up against the likes of payroll giant ADP and Cornerstone OnDemand with its benchmarking service. It claims advantages such as unification with its application suite, pricing (benchmarking is included with Workday customers' subscriptions), and greater flexibility.

Available benchmarks include workforce composition, turnover and career retention, leadership and manager effectiveness and financial management.

POV: Workday may characterize the benchmarking service as free, but customers are providing something of great value with their employee data—albeit with controls in place to preserve privacy. Workday has more than 1,800 customers and among them some of the world's largest companies. While it's new to the benchmarking business, the potential obviously exists for it to build an impressive corpus of anonymized data that can generate trusted results. Overall, it's a good move by Workday, notes Constellation VP and principal analyst Holger Mueller: "Enterprises need benchmarking to replace gut feel with data and see where they really are."

Peering into Prism Analytics: In July 2016, Workday acquired big data platform startup Platfora. It used Platfora's assets to build out a new service called Workday Prism Analytics, which can crunch both Workday and third-party data for analysis and insights.

Workday had offered a Hadoop-based analytics service since 2013, but it lacked the ability to slice and dice third-party data to an appreciable degree. Prism Analytics remedies this and was designed in conjunction with Workday customers such as Hitachi and Thomson Reuters. It's also integrated with Workday's financial, HCM, planning and benchmarking apps. Here are a couple of the potential use cases for Prism, as described by Workday:

· Financial Forecasting – To align sales strategies with financial forecasting, a general manager of an insurance company could access reports that merge financial data in Workday with sales pipeline data, enabling her to understand current growth rates and how the opportunity backlog might impact future revenue.

· Revenue – When reporting on performance, a financial planning analyst at a retailer can drill into reports that combine finance data from Workday with data from a point-of-sale system to quickly analyze profitability by store, region, or product line.

POV: Workday's announcement says Prism is in limited availability now, but general availability isn't expected until the second half of next year. Customers are running Prism live and in production today, VP of product and engineering Pete Schlampp said during a keynote talk. Future versions of Prism will include self-service analytics capabilites for business users.

By Workday's own admission, the first iteration of Prism won't be fully baked until a minimum of two years after the Platfora acquisition. Constellation will make inquiries during Rising as to why this is the case, but without context the timeline seems a bit prolonged. One thing is for certain: Workday has a long track record of delivering user-friendly software and there's no reason to believe anything will be different with Prism. Another year or so of co-innovation with customers before the GA release should also help.

Workday Cloud Platform: The day one Rising keynote closed out with a brief presentation on Workday's PaaS (platform as a service) offering, which underwent a soft launch with partners earlier this year. Workday's PaaS, for now at least, is closely coupled to its core application and processes, rather than being a general-purpose app-dev platform.

Workday has always offered strong configuration capabilities, but the PaaS—which the company resisted moving toward for years after competitors already had—provides the ability to create entirely new applications with the Workday design sensibility and security model that can leverage core application data.

Constellation expects Rising to serve as an educational opportunity for Workday customers and partners on its PaaS strategy. Go here for Constellation VP and principal analyst Holger Mueller's deeper take on Workday PaaS.

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Oracle Open World 2017: 9 Announcements to Follow From Autonomous to AI

Oracle Open World 2017: 9 Announcements to Follow From Autonomous to AI

Oracle highlights machine learning and artificial intelligence for running cloud services, delivering smart applications and driving data-driven decisions. Here’s what’s coming.

Oracle’s new Autonomous Database Cloud will be cheaper, faster and, with the addition of the Oracle Cyber Security System, safer than anything from Amazon Web Services (AWS). At least that’s the assertion Oracle Executive Chairman and CTO Larry Ellison wants everyone to remember from last week’s Oracle Open World 2017 (OOW17) event in San Francisco.

Whether Oracle’s claims are fair and accurate remains to be seen, as the first release of the Oracle Autonomous Database, through a Data Warehouse Cloud Service, won’t be available until December. Count on it being at least a few more months before independent reviewers can do independent tests against rival cloud services.

It should be about that same time – six months from now – that several other data-related announcements from OOW17 will actually be available. Some notable OOW17 announcements are generally available today, such as the Oracle Big Data Cloud, Oracle Event Hub and Stream Analytics Cloud services, and the Oracle Analytics Cloud Data Lake Edition. But whether it’s the next round of Adaptive Intelligent Apps, coming artificial intelligence (AI) and machine learning (ML) Platform as a Service capabilities, or a series of Oracle Analytics Cloud upgrades, many of the more interesting announcements from OOW17 will emerge over the next three to six months.

Here’s a rundown on 9 announcements to follow over the coming months.

Oracle Autonomous Database Cloud

Winning the cloud war is, of course, crucial for Oracle. Oracle has 480,000-plus customers, and it’s number-one product, hands down, is Oracle Database. If there’s a cloud equivalent to the domino theory, it’s that as cloud database selections go, so go the rest of a customer’s cloud choices. Thus, Ellison’s better-faster-cheaper performance and cost claims were on display all over OOW17. He also told attendees that with discounts, the database service will start at as little as $300 per month — though the 1-CPU to 1 terabyte-of-data specification seemed anemic, to say the least.

In CEO Mark Hurd’s keynote we heard that only about 14% of production workloads are now running in public clouds, but given growing cloud momentum he predicted that 80% of production workloads will be in the cloud by 2025. The lion’s share of today’s database marketplace is Oracle’s to lose, so there’s huge pressure to prevent customers from even thinking about alternatives like Amazon RedShift or Amazon Aurora. The (according-to-Oracle) cost and performance claims flashed all over OOW17 were a “stick with Oracle” message to on-premises customers now considering the cloud.

Analysis: It’s important to recognize that the Oracle Autonomous Database Cloud is just that, a cloud-based service. Oracle Database 18c software, when it arrives, won’t have inherent Autonomous capabilities. To be Autonomous it has to be delivered as a service by Oracle. The same goes for the on-premises deployment option, which won’t be Autonomous unless it’s delivered “Cloud at Customer” style, with an Oracle Cloud Machine deployed in customer data centers but managed by Oracle.

Oracle has been talking for at least a couple of years about the efficiency it can offer through automation in the cloud, but the Autonomous Database Cloud is said to bring these advantages to a whole new level. Time will tell just how much extra oomph the ML-driven Autonomous tuning and optimization delivers compared to like-for-like Oracle 12c database services.

As for those tests results, the comparison of Oracle Database on Oracle Cloud vs. Oracle Database on Amazon is a shoe-in for the home team given Oracle’s ability to run the database on Exadata, which is not an option for Amazon and which which pushes down query processing to the storage layer, thereby reducing the load before the query even gets to the database engine. Oracle DB on Exadata vs. Redshift on Amazon is more of an apples to apples comparison. Here’s where I’m eager to see independent test results.

Assuming that ML-driven database automation offers advantages – and I’m sure there will be many — the good news is that Oracle has a slew of other Autonomous database services in the pipeline, including Autonomous OLTP, expected next June, and Autonomous NoSQL and Graph database services likely to show up by OOW18.

Oracle Adaptive Intelligent Apps

Announced rather quietly at OOW16, Oracle Adaptive Intelligent Apps are a family of cloud-based, machine-learning powered apps that are integrated with Oracle cloud applications. The company spent the first half of 2016 putting the required machine learning data pipelines in place. Using a combination of customer-specific SaaS data and third-party enrichment data from the Oracle Data Cloud, Adaptive Intelligent Apps will deliver customer-tailored recommendations that will improve decisions, outcomes and business results.

Generally available today are Next Best Offers and Recommendations, a subset of Adaptive Intelligent experiences coming to the Customer Experience (CX) Cloud. Following the roadmap laid out last year, Oracle announced Adaptive Intelligent Apps for HR, ERP and Supply Chain Management at OOW17, but nobody was predicting release dates for this next wave of smart apps.

Analysis: Oracle Adaptive Intelligent Apps for CX are just getting out of the gate. Two customers on hand at OOW17, Team Sportia of Sweden and Moleskin of Italy, both said their deployments were just getting started. This is later than I anticipated in my 2016 report on Adaptive Intelligent Apps, but Oracle always conservatively said these apps would debut “within the next 12 months.” Oracle’s chief rival on this front is, of course, Salesforce Einstein, which saw lots of splashy announcements in 2017. I’m anxious to hear testimonials and deployment details from Salesforce Einstein customers at the upcoming Dreamforce event in early November.

I’ll be surprised to see new Oracle Adaptive Intelligent Apps outside of the CX arena  through the first quarter of 2018. I’ve learned to be cautious, so I’m guessing those HR, ERP and SCM smart apps are at least six months away and likely to debut in limited release.

Oracle Big Data and AI Advances

Oracle is in some cases keeping up and in some cases catching up with the market on big data and artificial intelligence. This summer Oracle announced the Oracle Big Data Cloud, which is a big data platform based on Hadoop and Spark and closely aligned with the ODPi standard also used by Hortonworks, Microsoft and IBM. Oracle’s previous offering, the Big Data Appliance based on Cloudera, is still available both on-premises or as a hosted service. But the future focus is clearly on Oracle Big Data Cloud, which separates storage and compute decisions and offers object storage as a low-cost alternative for high-scale data lakes.

To address streaming, real-time applications, Oracle has added the Oracle Event Hub, which is based on open source Apache Kafka, for routing and processing. Oracle Stream Analytics is a rewrite of the company’s complex event processing technology that now runs on Apache Spark.

On artificial intelligence, Oracle President Thomas Kurian introduced a new AI & ML PaaS that will offer GPU compute capacity (both bare metal and VM) and a variety of open source AI frameworks, including Caffe, Keras and Tensorflow. Developers will be able to work with a variety of languages and notebooks.

Analysis: The Oracle Big Data Cloud is generally available immediately and puts Oracle more in step with the big data services available from AWS and Microsoft Azure. The Event Hub and Stream Analytics services are also both generally available today and fill a gap that Oracle had versus the AWS Kinesis portfolio and the Event Hubs and Stream Analytics on Microsoft Azure.

As for the AI & ML PaaS, it was announced at OOW17, but it’s not yet available (as per Oracle’s site). Based on the roadmaps I’ve seen, I’d expect the AI & ML Pass to be available within three to six months. In contrast, AWS, Google Cloud Platform and Microsoft have all had GPU capacity available for some time. On model development and deployment, Microsoft last month introduced the beta preview of its next-generation Azure Machine Learning portfolio, which promises end-to-end model lifecycle management. In short, my take is that Oracle is still catching up on AI cloud services and capabilities.

Oracle Analytics Cloud

Here’s another area where Oracle is moving quickly to stay in step with the market. Evolving beyond the Oracle BI Cloud Service and Oracle Visualization Cloud Service announced three years ago, the Oracle Analytics Cloud combines these two services and adds more to create a more comprehensive collection spanning data discovery, preparation, analysis and prediction. Standard and Enterprise Edition subscriptions were previously available. Oracle introduced a Data Lake Edition at OOW17 with subscriptions based on CPUs rather than users, thereby encouraging broad adoption.

Oracle announced a series of machine-learning and natural-language-processing-based enhancements to the Oracle Analytics Cloud at OOW17 and they’ll be available over the next three to six months. Automated Data Diagnostics is an “Explain” capability that will surface hidden drivers and guide users to data and analyses that they might not otherwise investigate. Natural Language Insights will generate plain-text analyses of salient points on a chart, helping uses to focus on what matters. Improved “Ask” Natural Language Query capabilities will support synonyms and abbreviations and will dynamically correct and reinterpret queries as you type. Oracle is also working on Enhanced Data Catalog capabilities, including search and navigation across metadata and social tags, as well as automated recommendations of related and relevant datasets to promote discovery.

Analysis: Oracle Analytics Cloud seems to be on a path that’s similar to Microsoft PowerBI and Azure ML. Both vendors have created comprehensive portfolios and are seeking to leverage the strengths of their respective clouds and data platforms. The updates and enhancements announced at OOW17 mostly match state-of-the art capabilities that are already available in the market. For example, Oracle’s “Explain” feature is akin to Salesforce BeyondCore and a similar feature embedded in Microsoft PowerBI. Natural Language Insights is akin to Narrative Sciences and Automated Insights capabilities that Qlik and Tableau have both leveraged. State-of-the-art natural language query is available from multiple vendors, including Microsoft, IBM (Watson Analytics) and others.

My Overall Take on OOW17

As always, I came away from OOW17 impressed by the sheer breadth of applications and technologies available from the company. Oracle may not always be the first to introduce state-of-the-art capabilities, but it’s always the top competitor cited by rival database and data-platform vendors. The company’s sheer market presence in data platforms and applications puts it in a great position to also lead in analytics and coming smart applications. The key question, as with so many vendors these days, is how successful the company will be in transitioning existing customers to the cloud.

The surprise in the applications arena has been just how many all-new, greenfield customers Oracle has won with its SaaS applications. CEO Mark Hurd insists that Oracle’s core database business is outpacing the rest of the market, but that’s a licensing and subscription measure whereas I’m seeing a lot of open source growth that can’t be measured by the same math (even if the software is commercially supported).

Refreshingly, Oracle’s big data, data integration and analytics executives all seem to be hip to the open source movement. OOW17 saw a broad embrace of open source software, from Hadoop, Spark, Kafka and Cassandra (the latter by way of a partnership with Datastax) to Python, R and various open source deep learning frameworks. There will always be that Oracle bravado about its most successful commercial offerings, but I see a company that’s increasingly moving in step with a changing world of data platforms and technologies.

Related Reading:
Inside Oracle Adaptive Intelligent Apps

Microsoft Stresses Choice, From SQL Server 2017 to Azure Machine Learning
Salesforce Launches Einstein Analytics: What It Means


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What to Expect at Connected Enterprise 2017

What to Expect at Connected Enterprise 2017

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There are just four weeks until Constellation's Connected Enterprise! Get ready for the innovation summit for the enterprise. This is where the most innovative leaders, tech revolutionaries, and futurists gather to break paradigms and generate ideas that will become the big innovations in enterprise tech in 2018 and beyond.

Headliners announced

  • Kim Scott, author of the best-selling book "Radical Candor: Be a Kickass Boss Without Losing Your Humanity" The must-see leadership talk for the digital era.
  • Marco Tempest, techno-illusionist who has captivated audiences at TEDGlobal WEF.
  • Tricia Wang, global technology ethnographer and co-founder of Constellate Data, helps companies understand people with data.

Call for speakers

There are a few panel speaking slots available. If you have an interesting case study about AI, blockchain, the internet of things, or disruptive change management--we want to hear your story.Please contact us to secure a panel slot.

Networking

Expect to meet members of the Business Transformation 150, SuperNova Award finalists and past winners, Constellation analysts, and executives leading innovative transformation projects at organizations like the SF Giants, Walmart, Spotify, Samsung, Estee Lauder, UPS, Dominos Pizza and more.

View agenda here

Looking forward to seeing you there!

Data to Decisions Future of Work Innovation & Product-led Growth New C-Suite Tech Optimization Connected Enterprise Chief Experience Officer

Digital Transformation Digest: AWS Now GE's 'Preferred' Cloud Partner, AOL IM Signing Off, Walmart Buys Startup for Same-Day Delivery

Digital Transformation Digest: AWS Now GE's 'Preferred' Cloud Partner, AOL IM Signing Off, Walmart Buys Startup for Same-Day Delivery

Constellation Insights

GE picks Amazon Web Services as 'preferred' cloud provider: An interesting press release came over the wire this week from Amazon Web Services, stating that GE has chosen it as its "preferred" cloud provider. One might think that label was already stuck, given that GE has been migrating thousands of its internal IT applications to AWS since 2014. 

GE has also been a featured speaker at AWS's re:Invent conference in past years, discussing how it is using the vendor's cloud infrastructure in place of nearly all of its own datacenters. A GE executive offered this statement in AWS's release:

“Adopting a cloud-first strategy with AWS is helping our IT teams get out of the business of building and running data centers and refocus our resources on innovation as we undergo one of the largest and most important transformations in GE’s history,” said Chris Drumgoole, Chief Technology Officer and Corporate Vice President at General Electric. “We chose AWS as the preferred cloud provider for GE because AWS’s industry leading cloud services have allowed us to push the boundaries, think big, and deliver better outcomes for GE.”

POV: Preferred is the key word, as it does not mean only. Earlier this year, GE and Microsoft announced plans to work together, and GE's Predix industrial IoT software platform will be available on Azure as well as AWS. While GE's investment in AWS for its internal IT needs is certainly massive, it's only natural for the company to hedge its bets by spreading workloads to Azure and potentially other clouds as well.

Constellation has long held that for the vast majority of enterprises, a multi-cloud approach is the proper path forward, both to minimize technology lock-in as well as to gain contractual leverage. GE will likely discuss its cloud strategy in greater depth later this month at its Minds + Machines conference.

AOL Instant Messenger says goodbye: After 20 years, AOL Instant Messenger's once-ubiquitous chime will sound no more. AIM is being shut down as of December 15, according to a FAQ document:

We know there are so many loyal fans who have used AIM for decades; and we loved working and building the first chat app of its kind since 1997. Our focus will always be on providing the kind of innovative experiences consumers want. We’re more excited than ever to focus on building the next generation of iconic brands and life-changing products.

POV: The FAQ doesn't give a specific reason for the shutdown, but the writing has been in the chat window for some years now. In 2012, AOL laid off many members of the AIM group and the underlying code base has been essentially stagnant since then. Earlier this year, Ars Technica quoted an anonymous former AOL employee who said AIM's user count had fallen into "single digit millions"—a pittance compared to the likes of Facebook Messenger and WhatsApp, which claim more than a billion users each.

Still, AIM's legacy is undeniable and its soon-to-be passing marks the end of an era. The fact it lasted this long is commendable, given how many other consumer-oriented chat services have come and gone.

"The matriarch of consumer IM is sunsetting while enterprise IM is rising," says Constellation VP and principal analyst Alan Lepofsku. "I guess the key is that the success of any chat platform is not the features, but the members. AOL’s IM has been supplanted by Facebook Messenger, Apple Chat, SnapChat and others. People go where their friends are."

Walmart buys Parcel for same-day delivery: The world's largest retailer is stepping up its game against Amazon with the acquisition of Parcel, a Brooklyn-based startup that has a technology platform and truck fleet for same-day delivery.

Parcel will deliver fresh, frozen and perishable food, as well as general merchandise, from both Walmart.com and its Jet.com division. The company has already delivered more than a million meals to customers in the New York City area over the past two years, and initially the plan is to grow that customer base before expanding Parcel's footprint, Walmart supply chain SVP Nate Faust said in an interview on the company's website.

POV: Terms of the acquisition weren't disclosed, but it's safe to say Parcel is a small operation. But it also has experience and success in a logistically difficult market, which along with its technology platform is a big reason Walmart made the investment. Companies like Parcel have something to teach mega-retailers like Walmart about same-day, local delivery. Moreover, New York City provides a healthy test bed for Walmart to scale up Parcel's operations, given the population density.

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