Results

Microsoft Stresses Choice, From SQL Server 2017 to Azure Machine Learning

Microsoft Stresses Choice, From SQL Server 2017 to Azure Machine Learning

Microsoft Ignite announcements focus on giving customers options, including on-premises, cloud, operating systems, and ML and AI frameworks.

Microsoft is getting really serious about giving customers choices. That much was clear at this week’s combined Microsoft Ignite and Envision events in Orlando and, in particular, in announcements around databases, data-integration, machine learning (ML) and artificial intelligence (AI).

Several announcements at Ignite were entirely about choice. On the hybrid front, for example, there was the general availability of Azure Stack, which lets customers put a slice of the Azure Cloud on premises -- on a choice of hardware-partner racks. But that’s about infrastructure. My focus was on what Microsoft described as creating “systems of intelligence.” I’ll focus here on database, database migration, data integration, ML and AI.

SQL Server 2017 Meets Linux, Docker

Microsoft announced that SQL Server 2017, the latest release of its flagship database, will be generally available on October 2. The big breakthrough is that this release runs on Linux as well as Windows (and the company is offering new-customer incentives including discounts for subscriptions and bundles with RedHat). Another new deployment option is within Docker Enterprise Edition containers for portability across clouds and on-premises. Beyond portability, SQL Server 2017 introduces advances in adaptive query processing, the ability to add clustered column stores for faster analytical performance and support for running models entirely in-database by way of R and Python.

Analysis: Linux is the favored operating system of the cloud, and the Windows-only constraints on Microsoft SQL Server where getting in the way of growth. Together with the docker option, these multi-platform and hybrid options should accelerate adoption.

Azure DB Migration Service Courts Oracle, MySQL

Now in private preview, Azure Database Migration Service is designed to help you migrate on-premises Microsoft SQL Server, Oracle and MySQL instances to Azure. Also in limited preview is a coming Azure SQL Database - Managed Instance, a platform-as-a-service option with VNET and private IPs support.

Analysis: There’s still only “close to full compatibility” for migration of on-premises Microsoft SQL Server to Azure SQL Database. The differences may be small, but Oracle touts its “same-DB-no-matter-where-you-deploy” advantage.

Azure Data Factory

This data-integration service for Azure, now in public preview, supports the creation, scheduling and orchestration of data-integration pipelines with the option to lift and shift SQL Server Integration Services (SSIS) packages into the cloud. Microsoft says this soon-to-be-GA service will include discounted rates for active SQL Server licensees.

Analysis:  I’d like to hear more about nuances of practical differences between Azure Data Factory and SSIS, if any, in capabilities, management, administration and the overall user experience.

Next-Generation Azure Machine Learning

ML and AI are the underpinning of “smart” systems that predict, spot patterns and exceptions, develop inferences about intent, and offer recommendations. Microsoft put ML/AI modeling capabilities in the cloud several years ago with Azure ML/Azure ML Studio. But that first-generation offering was strictly a cloud service run by Microsoft on Azure. The next generation of Azure ML gives organizations options through three components announced at Ignite and now in public preview.

  • Azure ML Workbench is a cross-platform client for data wrangling and managing experiments. It runs on Windows and iOS machines and is geared to developers and data scientists who need to take the first step to creating models, which is preparing the data. Users can tap into a broad range of data sources, including high-scale sources, and see samples, stats and distribution information about that data. The tool can learn the clean-up and normalization steps you want to take by example and then repeat them at scale. These steps are recorded for data transparency and lineage. From there you can use the data for your modeling experiments.
  • Azure ML Experimentation service is built supporting collaborative model development at scale. It uses Git repositories and a command-line tool to manage model experimentation and training. It tracks the code, configurations and data used in experiments as well as the models, log outputs, key metrics and the history of how those models evolve. This ensures transparency around models over time, which is often a requirement in regulated environments.Providing choice, the Experimentation service supports Python and an array of frameworks, including Tensorflow, Caffe, PyTorch, MXNet and DIGITS as well as Microsoft’s own CNTK and Microsoft Cognitive Toolkit. There are also plenty of deployment choices. Docker containers are used for portability to many environments while maintaining model and data governance, auditability and visibility. Experiments can run locally or remotely, on general-purpose VMs, scale up on Data Science VMs, scale out on Spark (in Azure HDInsight), and can even run on GPU-accelerated VMs.
  • Azure ML Model Manager service is for deployment and operationalization, supporting hosting, versioning, management and monitoring. Here, too, there are many more choices, including in-database in SQL Server 2017, in VMs, on Spark, in the Azure cloud and anywhere you can run Docker containers.

Analysis: Together all these options give data scientists and developers yet more flexibility around where they do their experimentation, training of models and operational scoring. Significantly, there’s more choice on frameworks, with Microsoft executives saying that algorithms shouldn’t matter – use whatever is best for the task at hand. Docker is the primary means of model portability, but Microsoft says deployment can be as simple as a single line of code while also giving Docker power users options to tune and tweak the deployment. You can also bring assets directly onto local machines, but you lose trace-ability. The whole idea here is supporting and bringing visibility to the entire, end-to-end lifecycle at scale. That’s a must-have for banks, insurance companies and a growing list of organizations that are doing predictive, machine learning and AI modeling at scale.

My Overall Take on Ignite 2017

There were so many more announcements at Ignite that will make a big impact in the near term (like global-scale CosmosDB) and over the long term (like Microsoft’s work on quantum computing). The overall theme was choice, with Microsoft offering an impressive, broad spectrum of cloud, on-premises and hybrid options for data scientists, developers, data-management and governance professionals, and on up to business users and the customers of Microsoft’s customers. Many of this week’s announcements are still in preview -- and there are gaps, here and there, yet to be filled. But I came away impressed.

Related Reading:
Oracle Differentiates its MySQL Cloud Service
SAP Machine Learning Plans: A Deeper Dive From Sapphire Now
SAS Takes Next Steps to Cloud Analytics

Data to Decisions Future of Work Tech Optimization Chief Information Officer Chief Digital Officer

News Analyses Roundup - SAP's September Tech Announcements - SAP doubles down on technology

News Analyses Roundup - SAP's September Tech Announcements - SAP doubles down on technology

 
As if enterprises, press and influencers would not be busy enough with Microsoft’s combined user conferences in Orlando and the dawn or Oracle’s Openworld next week- SAP decided to do an acquisition (with Gigya, ok these things happen when they happen), with a product launch event (for SAP Data Hub in New York) and its developer conference, SAP TechEd (happening in Las Vegas). 

 
 
 
 

Here is the 1 slide condensation (if the slide doesn’t show up, check here):

 
 
Want to read on? Here you go:

SAP (hybris) acquires Gigya - This is SAP’s LinkedIn acquisition – only it offers IAM and SSO capabilities. The data will be interesting for hybris customers, the technology for SAP CP. And at a friction of LinkedIn (I assume here). A good acquisition for SAP customers. 


 
SAP TechEd Holger Mueller Constellation Research
USS Enterprise with Captain Kirk


SAP gets back to EIM – SAP acquired EIM capabilities with Business Objects (acta) and Sybase – but hasn’t done much with it. The SAP Data Hub is a new and modern attempt to address these markets – and the SAP internal integration challenges. Running elements in Kubernetes containers is an elegant 2017 architecture. Catering for data to stay in place is a risky bet – but SAP Data Hub could feed into a (Big) Data Lake, too. 

 
SAP Data Hub Launch Holger Mueller Constellation Research
The SAP Data Hub Scope
 
SAP Data Hub Launch Holger Mueller Constellation Research
Demo at SAP Data Hub Launch
 
HANA Express gets more cloud support – SAP’s developer version of HANA is now running on (alphabetically) – Azure, Docker, Google Cloud, Huawei Cloud (!) and of course the SAP cloud. Developer versions are important for community learning, so these are good moves to foster the HANA developer community.

 
SAP TechEd Holger Mueller Constellation Research
SAP CP Marketecture


SAP Cloud Platform – a ton is happening – Good to see the traction on SAP’s PaaS, SAP Cloud Platform (CP) where a ton is happening:
  • (Finally) ABAP support (beta) – SAP (finally!) courts its largest developer base and gives them a future. And ABAP is SAP’s (Salesforce) Apex or (Workday) Espresso – a very good DSL for business applications.
     
  • Mobile SDK (for iOS) – An area where SAP CP needed to get stronger – and the partnership with Apple needs a platform. Expecting the same to happen for Google.
     
  • CP Beta on GCP – SAP delivered as announced at CF Summit, always good to see vendors delivering. Important for SAP ML (Tensorflow!) and BigData requirements, and the overall partnership with Google.
     
  • S4/HANA SDK - 1000 customers need more software – Time to give the ecosystem a way to extend and build new pieces of S/4HANA, so good to see the SDK.
     
  • JAM APIs - finally some social – SAP’s weakest SMAC relationship, social… good to see APIs of JAM coming to CP, but more needs to happen here.
     
  • SAP Joins Cloud Native Foundation and Open API Initiative – An overdue move, when seriously courting developers and enterprises. Good to see.
     
  • Partnerships with Mendix, Egnyte and Built.io – Important partnerships for document management with Egnite and Built.io. Even more important for low code with Mendix, good to see SAP CP realizing that it can’t do everything inhouse, but low code is key for enterprise PaaS – so watch the space…
 
 
     

    MyPOV

    Overall good moves by SAP. Gigya is a good acquisition with multiple benefits. SAP Data Hub is a good attempt at EIM, but SAP customers have their solutions already, it will be a long slog for SAP to get the product in the install base. Good moves on the developer community with bringing HANA Express to more clouds. But most importantly is the beta of ABAP on SAP CP, as it makes CP the future platform of SAP code, and gives a future to almost 3M ABAP developer (my estimates) out there… finally a future for ABAP. SDKs and APIs are always good – we will see what developers and enterprises will build. The beta of SAP CP on GCP is key, given SAP’s commitments to Goggle Tensorflow.

    On the concern side, SAP is coming late to many of these moves, but better late – than never. Extra kudos for the ABAP beta – we have asked SAP for many years about the future of ABAP developers. If you lose a developer community it is always hard to make up (look no further than IBM with Rational). And SAP decided to build the road before the destination with EIM. Ok. But SAP needs a SAP native (or certified) BigData / Hadoop capability. All next generation application use cases require it. It’s a red thread across the design thinking driven workshops SAP is having for Leonardo (from what we hear from customers). And deep learning needs BigData to rebuilt itself continuously.

    But overall good to see SAP commitment in technology products. Becoming member of CNCF and OAI are good citizen moves on open source – that all key players have do to. It’s not too late, but urgency is needed – and SAP has shown some in the last days. Stay tuned.


    Want to learn more? Checkout the Storify collection below (if it doesn’t show up – check here).

    More on SAP
    • Event Report - SAP SuccessFactors SuccessConnect - New Leadership - Old Challenges - read here
    • Summer 2017 News Analysis - SAP Leonardo event July 2017 - read here
    • Event Report - SAP Sapphire 2017 - All in on Leonardo, but wait there is more... read here
    • News Analysis - SAP reshuffles Executive Board - sets up for next 5 years - read here
    • Event Report - SAP Ariba Live - The quest to make Procurement awesome - read here
    • Event Report - SAP Capital Markets and S/4HANA Update - Good Plan - Execution matters in 2017 - read here
    • News Analysis -SAP Introduces Jump-Start Enablement Program for SAP Leonardo IoT Portfolio >> Bundling and Simplification matter for IoT - read here
    • Event Report - Event Report - SAP TechEd Barcelona - Analytics, ML, PaaS and HANA 2  - read here
    • News Analysis - SAP to unveil HANA 2 - New platform vs a fork's tine - read here
    • News Analysis - Microsoft announces SAP's choice of Azure to help enterprises transform HR - The SaaS land grab is on - read here
    • Event Report - SAP / Trenitalia Digital Summit - SAP is serious about IoT - read here
    • First Take - SAP BW/4HANA - Data Gravity and Cloud win - read here
    • Event Report - SAP SuccessFactors SConnect - Push on all fronts - read here
    • Event Report - SAP Insider Vienna - HCP, BI and SuccessFactors are the takeaways - read here
    • Event Report - SAP Sapphire 2016 - Top 3 Positives & Concerns: SAP changes - probably for the better - read here
    • First Take - SAP Sapphire Day #2 Keynote - read here
    • News Analysis - SAP and Microsoft usher in new era of partnership to accelerate digital transformation in the cloud - read here
    • First Take -  SAP Sapphire Bill McDermott Day #1 Keynote - read here
    • Event Preview - SAP Sapphire 2016 - What to expect and look for - read here
    • News Analysis - Apple & SAP Partner to Revolutionize Work on iPhone & iPad - read here
    • Progress Report - SAP SuccessFactors makes good progress - now needs appeal beyond SAP - read here
    • News Analysis - SAP HANA Vora now available... - A key milestone for SAP - read here
    • Event Report - SAP Ariba Live - Make Procurement Cool Again - read here
    • News Analysis - SAP SuccessFactors innovates in Performance Management with continuous feedback powered by 1 to 1s  - read here
    • Event Report - SAP SuccessFactors SuccessConnect - Good Progress sprinkled with innovative ideas and challenging the status quo - read here
    • News Analysis - WorkForce Software Announces Global Reseller Agreement with SAP - read here
    • First Take - SAP SuccessFactors SuccessConnect - Day #1 Keynote Top 3 Takeaways - read here
    • News Analysis - SAP SuccessFactors introduces Next Generation of HCM software - read here
    • News Analysis - SAP delivers next release of SAP HANA - SPS 10 - Ready for BigData and IoT - read here
    • Event Report - SAP Sapphire - Top 3 Positives and Concerns - read here
    • First Take - Bernd Leukert and Steve Singh Day #2 Keynote - read here
    • News Analysis - SAP and IBM join forces ... read here
    • First Take - SAP Sapphire Bill McDermott Day #1 Keynote - read here
    • In Depth - S/4HANA qualities as presented by Plattner - play for play - read here
    • First Take - SAP Cloud for Planning - the next spreadsheet killer is off to a good start - read here
    • Progress Report - SAP HCM makes progress and consolidates - a lot of moving parts - read here
    • First Take - SAP launches S/4HANA - The good, the challenge and the concern - read here
    • First Take - SAP's IoT strategy becomes clearer - read here
    • SAP appoints a CTO - some musings - read here
    • Event Report - SAP's SAPtd - (Finally) more talk on PaaS, good progress and aligning with IBM and Oracle - read here
    • News Analysis - SAP and IBM partner for cloud success - good news - read here
    • Market Move - SAP strikes again - this time it is Concur and the spend into spend management - read here
    • Event Report - SAP SuccessFactors picks up speed - but there remains work to be done - read here
    • First Take - SAP SuccessFactors SuccessConnect - Top 3 Takeaways Day 1 Keynote - read here.
    • Event Report - Sapphire - SAP finds its (unique) path to cloud - read here
    • What I would like SAP to address this Sapphire - read here
    • News Analysis - SAP becomes more about applications - again - read here
    • Market Move - SAP acquires Fieldglass - off to the contingent workforce - early move or reaction? Read here.
    • SAP's startup program keep rolling – read here.
    • Why SAP acquired KXEN? Getting serious about Analytics – read here.
    • SAP steamlines organization further – the Danes are leaving – read here.
    • Reading between the lines… SAP Q2 Earnings – cloudy with potential structural changes – read here.
    • SAP wants to be a technology company, really – read here
    • Why SAP acquired hybris software – read here.
    • SAP gets serious about the cloud – organizationally – read here.
    • Taking stock – what SAP answered and it didn’t answer this Sapphire [2013] – read here.
    • Act III & Final Day – A tale of two conference – Sapphire & SuiteWorld13 – read here.
    • The middle day – 2 keynotes and press releases – Sapphire & SuiteWorld – read here.
    • A tale of 2 keynotes and press releases – Sapphire & SuiteWorld – read here.
    • What I would like SAP to address this Sapphire – read here.
    • Why 3rd party maintenance is key to SAP’s and Oracle’s success – read here.
    • Why SAP acquired Camillion – read here.
    • Why SAP acquired SmartOps – read here.
    • Next in your mall – SAP and Oracle? Read here
     
    And more about SAP technology:
    • Event Prieview - SAP TechEd 2015 - read here
    • News Analysis - SAP Unveils New Cloud Platform Services and In-Memory Innovation on Hadoop to Accelerate Digital Transformation – A key milestone for SAP read here
    • HANA Cloud Platform - Revisited - Improvements ahead and turning into a real PaaS - read here
    • News Analysis - SAP commits to CloudFoundry and OpenSource - key steps - but what is the direction? - Read here.
    • News Analysis - SAP moves Ariba Spend Visibility to HANA - Interesting first step in a long journey - read here
    • Launch Report - When BW 7.4 meets HANA it is like 2 + 2 = 5 - but is 5 enough - read here
    • Event Report - BI 2014 and HANA 2014 takeaways - it is all about HANA and Lumira - but is that enough? Read here.
    • News Analysis – SAP slices and dices into more Cloud, and of course more HANA – read here.
    • SAP gets serious about open source and courts developers – about time – read here.
    • My top 3 takeaways from the SAP TechEd keynote – read here.
    • SAP discovers elasticity for HANA – kind of – read here.
    • Can HANA Cloud be elastic? Tough – read here.
    • SAP’s Cloud plans get more cloudy – read here.
    • HANA Enterprise Cloud helps SAP discover the cloud (benefits) – read here
    Find more coverage on the Constellation Research website here and checkout my magazine on Flipboard and my YouTube channel here.

     
    Tech Optimization Data to Decisions Digital Safety, Privacy & Cybersecurity Innovation & Product-led Growth Future of Work New C-Suite Next-Generation Customer Experience Marketing Transformation Distillation Aftershots SAP Leadership AR PaaS SaaS 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 Marketing Officer Chief Customer Officer Chief People Officer Chief Human Resources Officer Chief Executive Officer

    Digital Transformation Digest: SAP's Open Source Move, Salesforce Launches Data Studio, Macy's Overhauls Its Loyalty Program, and More

    Digital Transformation Digest: SAP's Open Source Move, Salesforce Launches Data Studio, Macy's Overhauls Its Loyalty Program, and More

    Constellation Insights

    SAP makes more open-source strides at TechEd: Add SAP to the list of companies who have joined the Cloud Native Computing Foundation. It has also joined the Open API Initiative. Both projects fall under the auspices of the Linux Foundation. The CNCF hosts a number of prominent open-source projects, chief among them the Kubernetes container orchestration system. SAP's membership will be more than a rubber stamp, according to technology chief Bjorn Goerke:

    Besides our interest in incorporating Kubernetes into SAP Cloud Platform, we also have concrete plans to actively contribute projects and best practices from existing and new business scenarios for enterprises.

    POV: SAP's move to join the CNCF was a long time in coming. Its members include dozens of prominent names, including IBM, Microsoft, Amazon Web Services, Google, Cisco, Intel, Red Hat and VMWare, and has more than 100 members overall.

    The CNCF defines cloud native computing as an open source software stack that leverages containers, dynamic orchestration of containers and an emphasis on microservices-driven applications. The group says that projects under the CNCF's purview support cloud portability without the specter of vendor lock-in. Overall, the CNCF's goals are well-aligned with the needs of enterprises undergoing digital transformation and building next-generation applications, and SAP is wise to join and actively participate.

    Google Cloud expands per-second billing: This didn't take long. About a week after Amazon Web Services announced the availability of per-second billing, Google Cloud has made its own announcement, while pointing out that it has had per-second billing for persistent disk storage since 2013. Here are the details from Google's blog post:

    We are pleased to announce that we’re extending per-second billing, with a one minute minimum, to Compute Engine, Container Engine, Cloud Dataproc, and App Engine flexible environment VMs. These changes are effective today and are applicable to all VMs, including Preemptible VMs and VMs running our premium operating system images including Windows Server, Red Hat Enterprise Linux (RHEL), and SUSE Enterprise Linux Server.

    Google's post argues that the difference between per-minute and per-second billing for most scenarios is minuscule, compared the jump in savings when one goes from per-hour to per-minute pricing. It also says only a few customers have been asking for per-second billing.

    POV: Even if you buy Google's argument over the difference between per-minute and per-second pricing, the fact it so quickly moved to ensure customers the option was available across its IaaS portfolio is telling of the competitive stakes in play. A per-second billing option also supports innovative thinking about how to architect and code next-generation applications for maximum performance and efficiency.

    Salesforce launches Data Studio: Today, marketers purchase a lot of audience data through brokers. Salesforce is looking to cut out those middlemen and in the process appeal to both marketers and publishers, which collect large amounts of high-quality data about their audiences.

    Salesforce Data Studio is a data-sharing platform based on a product it gained through last year's $700 million acquisition of Krux. Publishers, or "data owners" as Salesforce terms them, maintain control over their data and dictate how its priced and how it can be used through a set of governance tools. Marketers looking for useful data sets get rich search and discovery capabliities. Here's how Salesforce describes the value proposition:

    While legacy data exchanges and marketplaces have provided a way to acquire new audiences, they lack trust and transparency while adding too much cost and complexity to data provisioning and activation. They were designed by and favor the middlemen, the data brokers and resellers. For marketers, this means they rarely gain assurances regarding the fair price and origin of the data they acquire. Meanwhile, publishers are less willing to share their best data and can’t realize the full value of any data without the right tools to provision it to marketers. Both sides worry about losing too much value to the brokers and resellers who manage the majority of data exchange transactions today.

    Salesforce's announcement lists a large number of high-profile Data Studio customers, many of which were likely carried over from the Krux deal. They include Conagra, Anheuser-Busch, Heineken and Super Digital. Publishers on the platform include Gatehouse Media, Digital Trends, Fanserv, Publishers Clearing House, Univision and Penske Media Corporation.

    Data Studio is generally available in stand-alone form as well as editions for existing customers of Salesforce's digital marketing platform.

    POV: Under the Krux name, Data Studio was called Link. It doesn't appear Salesforce has many any significant changes to the product's approach and intent, but has injected some Einstein-flavored AI capabilities into the mix for improved audience discovery and indexing.

    "There is a tremendous amount of value in verified and validated second-party data that has been challenging for marketers to gain access to," says Constellation VP and principal analyst Cindy Zhou. Data Studio provides a trusted and neutral platform for publishers and marketers to share this valuable data, Zhou adds.

    Overall, Data Studio provides better transparency and potentially, results for publishers and marketers, but as with everything it comes down to the ROI case. Pricing wasn't available for Data Studio but more information should come at Dreamforce in early November.
     

    Macy's overhauls its loyalty program: Struggling department store chain Macy's has hit the reset button on its customer loyalty program, Star Rewards, in a bid to drive up revenue. While profitable, Macy's has seen persistent revenue declines and has been closing underperforming stores. Here's how the new program will be structured:

    Macy’s new Star Rewards makes it simple for customers to receive benefits with every Macy’s purchase. Based on annual spend, customers with a Macy’s credit card will be automatically enrolled into one of three levels: Silver, Gold or Platinum. Rewards are tiered by level, with Macy’s best customers receiving benefits that include free shipping, additional savings and earned points on every purchase. Additionally, cardholders are automatically upgraded to the next tier when annual spend reaches the new level. The program was developed with the customer in mind, based on a careful analysis of evolving shopping behaviors and consumer preferences.

    POV: The Platinum tier will give customers who spend at least $1,200 per year 5 percent back as well as free shipping. That's the group Macy's is aiming to please, as well as to grow. The chain derives 50 percent of its annual revenue from the 10 percent of shoppers who spend at least that much money per year.

    While this certainly reflects those customers' loyalty to the Macy's brand, the numbers are top-heavy enough to make any CxO queasy. But by catering to those bigger spenders more effectively, Macy's can fight back against poaching by competitors.

    The new program is the brainchild of recently minted CEO Jeff Gennette, and time will tell if it pans out. Macy's has lagged other chains, such as Kohl's, in adapting to omnichannel commerce realities; more digital initiatives have been in the pipeline too long and it will be Gennette's job to get them rolled out.

    Assessing Microsoft Ignite: Microsoft held its Ignite and Envision co-conference for enterprise IT and business executives this week, and made a series of significant announcements along the way. Several Constellation Research analysts were in attendance and have filed reports on what they saw and heard.

    Constellation VP and principal analyst Holger Mueller walks through a number of topics in a deep-dive blog post, including Azure Stack, Cosmos DB, Visual Studio and Microsoft's quantum computing strategy.
     

    Marketing Transformation Matrix Commerce Next-Generation Customer Experience Tech Optimization Chief Customer Officer Chief Executive Officer Chief Financial Officer Chief Information Officer Chief Marketing Officer Chief Digital Officer

    7 Key Takeaways for Digital Leaders from #MSIgnite #MSEnvision 2017

    7 Key Takeaways for Digital Leaders from #MSIgnite #MSEnvision 2017

    Microsoft's largest combined event of the year, Microsoft Ignite and Envision, are currently the pre-eminent industry showcases for the sprawling breadth and depth of the technology giant's extensive portfolio of platforms, tools, applications, and other enterprise capabilities.

    Making sense of the 1000+ sessions, the evolution of dozens of products, as well as the shifting/maturing of the company's vision for digital transformation, digital workplace, and customer/worker/partner experience is a truly daunting task these days. Yet it's also necessary because the company remains perhaps the single most important overall technology vendor to the enterprise, with its platforms running the end-user computing devices, front office, back office, and cloud/edge infrastructure -- in some combination -- of virtually every organization in the world today.

    2017 marks a watershed year for Microsoft, with a continuing sense of renewal in the company's fortunes under CEO Satya Nadella, whose new book Hit Refresh describing the reorientation and rebooting of the entire company during his leadership went on sale this week during Day 2. His keynote on the opening day was perhaps the most succinct strategic overview of what's new in Microsoft's strategic vision, which included some innovative and unexpected ones, as we'll see.

    Microsoft's Foundation for Digital Transformation of Business: Azure, Office 365, Dynamics 365, LinkedIn, Microsoft Graph

    Microsoft's Demonstrates Increasingly Fast Pace for Products

    The evidence for this renewal shows: The company's many product lines are evolving faster than they ever have before. For once, enterprises are no longer waiting for the company to innovate (a once common complaint.) Instead, they are now being propelled along by a steady stream of rapid product development by the software giant. This breakneck cadence is one that VP of Office, OneDrive, and SharePoint Jeff Teper has been helping orchestrate for several years now. This has aided the company in catching up in numerous areas, and in many cases pulling ahead, of its competition.

    Thus, Microsoft's pace today is one of a fast-moving and nimble startup more than a technology juggernaut: Microsoft's flagship cloud offering, the rapidly growing Azure platform, is doing better than ever, and has arguably become the #1 enterprise cloud platform by some estimates, while wide global adoption of the popular and fast-evolving Office 365 cloud suite and other factors almost certainly makes Microsoft the overall largest cloud vendor in terms of enterprise sales.

    Now it's up to organizations to decide how to strategically apply Microsoft's capabilities in their journey towards becoming fully transformed digital businesses. Answers to important questions will be key for momentous decision points of digital leaders over the next few years: Where is Microsoft actually going to take its customers in the next few years? Is the firm genuinely preparing organizations to reach an effective and unique disruptive posture, or are they largely raising every organizations' boat in the same way? More importantly, what are the irreversible business decisions (one way changes that cannot readily be undone) that would be made today by using Microsoft as a primary technology provider, especially with its newest offerings?

    In other words, when looking at the strategic emerging technology landscape which IT and business executives simply must navigate successfully -- please see our 2017 Tech AstroChart for The New C-Suite -- and key business trends for digital -- consult our 2017 Business Trends AstroChart for The New C-Suite -- how can Microsoft best help today?

    To assist digital leadership (CIO, CDO, CMO, CHRO, CCO, COO, CEO, digital-ready boards, and other IT/LOB executives) in answering these questions via analysis of the enormous volume of information coming out of Ignite and Envision, I've elaborated below on what I believe the key takeaways in a digital leadership context, based on all the news here in Orlando this week:

    Seven Strategic Takeaways from Microsoft Ignite and Envision 2017

    • Microsoft's vision for the front and back office works far better when fully adopted; but enterprises must beware of implication of such commitment. Most digital decision makers prefer to hedge their vendor bets by bringing together multiple providers whenever possible. However, the growing integration between individual applications offers great advantages, but at considerable cost if you have to integrate everything yourself. In an ambitious enterprise data architecture strategy likely to change the status quo, Microsoft's underlying graph model for Office 365, Dynamics, and LinkedIn was showcased prominently in the main keynote at Ignite and Envision, demonstrating a clear path forward for analytics, cognitive technologies, customer experience, and even master data management to be vitally served by bringing together application data onto a single common connected fabric. This has genuine potential to unleash and put to work the entire digital knowledge of an organization to create value for stakeholders and has competitively significant potential. As Nadella pointedly noted during his keynote, every act of using Microsoft apps now enriches the enterprise graph for everyone in the organization continuously. This is the inherent power and advantage of a single deeply integrated cloud platform. Bottom Line: Digital leadership must be aware this value also comes in exchange for the not-inconsequential risk of enterprise cloud lock-in, a major cautionary signpost on this year's New C-Suite Business Trend AstroChart.
    • As a digital workplace reality, Microsoft has become the leading player, yet is still making major changes. Workforce experience and even employee engagement can be greatly impacted and improved by digital tools, such as Microsoft's new F1 offering for front line workers. The many different roadmaps shown at the two events for its flagship Office 365 platform show that Microsoft plans to continue a sustained and very fast-paced evolution for the large -- and some would say increasingly bulky -- set of front office digital capabilities, from office productivity to collaboration and engagement. But Microsoft's digital workplace vision tends to be highly tech-centric and focused on producing digital artifacts or enabling communication. Higher order functions like talent management, employee engagement, and orchestrating strategic change programs and change agents are still not well-represented, even as they are priorities of digital leaders today. A little more sobering was perhaps one of the most impactful announcements of either event: The announcement that Microsoft will phase out Skype for Business in favor of the new -- albeit exciting and future-facing -- Microsoft Teams for most unified communications functions (voice, video, chat, etc.) This was a brave move that is likely to be ultimately shown to be the right decision in my analysis, yet it will give headaches to IT teams everywhere as they scramble to deal with the implications, cost, deployment, and mass retraining of workers and support staff. Bottom line: Most organizations can now bet on Microsoft's fast evolving digital workplace as a vision and roadmap with a strong future, but only if they are prepared to deal with significant changes of direction as the company seek to quickly find the right path(s) forward.
    • Microsoft has become capable as a full-strength and combined business and technology partner for digital transformation. Citing Maersk, Rolls-Royce, Ford, and a long list of recognizable corporate names, Microsoft is currently enabling some major digital transformations on a global scale. Judson Althoff has been an effective spokesperson on this topic for the company for a while now and had a prominent keynote on Day 1 at Envision, which I attended. I've analyzed Judson's take on this topic before and found it credible, as Microsoft is preparing now to be as much a business partner as a technology company in helping companies lead the reimagining of their business. The Rolls-Royce case example was a good one, and was presented at length. Bottom line: The Microsoft vision and strategy for enabling digital transformation for its customers is broad, compassing, and increasingly proven through case examples, though it appears more bespoke than blueprint based as others are.
    • In vital emerging enterprise technologies, such Internet of Things (IoT), blockchain, and artificial intelligence (AI), Microsoft is competent but largely remains tactical. Enterprises usually seek a partner that can stay ahead of where the market is and incorporate new disruptive technologies into the IT platforms that businesses have strategically adopted, as they emerge in the market. In this regard, Microsoft is staying competitive with SAP and IBM with its Azure IoT suiteAzure Cognitive Services (for artificial intelligence), as well as their emerging blockchain capabilities. I also had several conversations at Microsoft Ignite with Microsoft's cognitive product experts and was given a favorable impression that they are heading in the right direction overall. However, they remain focused on more foundational use cases and are only now considering the more strategic enterprise picture. Cognitive services, Internet of Things, and blockchain -- combined with supporting analytics -- all have the potential to remake our businesses in key enterprise activities like strategic decision making, forecasting, risk management, and compliance. However, the company does not yet deliver IoT, AI, or blockchain technologies for these types of functions as yet, though they do appear to be on the radar in my conversations. Bottom line: Though much of the vision is there, Microsoft needs more time to mature and up-level the business capabilities for the current crop of emerging tech that has high disruptive potential. Certainly some startups are well ahead here and will likely remain so for a while. (Please see my enterprise tech to watch in 2017 for a full list of disruptive tech.)
    • While big software suites are still the go-to choice for many digital leaders, Microsoft is enabling an increasingly modular, take-what-you-need services-based approach. Time and again in briefings with product managers and experts at Envision and Ignite, PowerApps was cited as a way for end users to shape IT into what they need, often by just taking a fraction of the Microsoft product that they need to solve a given problem. While user-defined IT is a candidate for my yearly tech trends list, the approach has as much to do with the microservices trend that has risen to the level of the C-Suite in many parts of the industry. Why is this important? Because it heralds Microsoft realization that IT must be able to go to the customer in whatever form, mode, and channel is best. To do this, Microsoft is attempting to make its IT solutions as consumable as possible in a multi-vendor and an increasingly federated/hybrid/decentralized IT world. This is actually fairly visionary and makes them a strong partner in many important and future-enabling ecosystem strategies, if they can sustain this as an initiative. Bottom line: Microsoft is becoming a much more digital-savvy and native company -- or least its heading in the right direction for now -- further strengthening it as a strategic business and technology partner.
    • As large and extensive as its capabilities are, Microsoft cannot by itself tackle the full set of priorities of The New C-Suite. The extensive announcements and elaborate roadmaps around so many existing products as well as the arrival of new ones at Ignite and Envision still belie the complexity of today's digital world. As rapid as Microsoft appears to be pushing on the accelerator to speed up product development and innovation, the digital world is still evolving faster, and enterprises must find ways (and partners) to manage the change velocity. Even though it's now arguable at the company's pace is one of the fastest overall in the industry, there's simply too much to do today to be satisfied by one vendor, no matter the size. Although there's been a recent wave of large organizations moving to becoming largely Microsoft shops, federated IT landscapes are actually becoming more the norm as apps and Shadow IT (for better or worse) proliferate. Bottom line: Microsoft can serve as the anchor IT provider, but a large and growing constellation of play-nice 3rd parties is required to succeed in digital transformation today.
    • Companies looking for a truly disruptive technology partner, can start to look at Microsoft anew. This is perhaps best demonstrated by the unexpected and surprising to many announcement of early quantum computing support in Azure, available later this year. While I'll complete my analysis shortly of why the quantum computing announcement at Ignite was potentially such major news, the fact that no other major enterprise vendor is announcing anything in this area, much less pre-announcing commercial cloud services shows that Microsoft is willing to take significant risks in a real way today, both with products and reputationally. Given the nascent state of the quantum computing market, this is a early and significant move that has the potential to both confuse customers as well as potentially lead them into the future. Bottom line: With this and other bold announcements of late, Microsoft is clearly willing to make significant bets. Digital leaders can certainly opt not to follow, but have more access to the major cutting edge technologies from Microsoft now than in years past.

    While the news was largely incremental except for a few big announcements (quantum computing, hybrid Azure, and the shift away from Skype), the amount of house-being-put-in-order, refining, and detailing out of Microsoft's cloud offerings for the enterprise was both tangible and impressive in its own right. There was palpable buzz and excitement at Ignite in particular, as Microsoft exuded a message that it knew what it was about and was delivering on it. That said, Microsoft now has the scope and breadth of a vast product set, along with a vision that may be hard to stick to as a commercial company, especially in terms of modularizing its offerings (good for customers but it can certainly lowers sales potentially) and creating a comprehensive set of APIs that opens up data for integrating and ecosystem use (also good for customers, but is a path for migration away from Microsoft.) If they can keep this direction, and sustain a fast growing business out of it (which every sign shows it the case at the moment), Microsoft and its customers have a solid near future ahead of them given what transpired in Orlando this week.

    Additional Reading

    Microsoft Ignite & Envision 2017 Announcements and Analysis by Holger Mueller

    Microsoft Stresses Choice, From SQL Server 2017 to Azure Machine Learning by Doug Henschen

    Data to Decisions Future of Work New C-Suite Next-Generation Customer Experience Tech Optimization Innovation & Product-led Growth Marketing Transformation Microsoft AI ML Machine Learning LLMs Agentic AI Generative AI Analytics Automation B2B B2C CX EX Employee Experience HR HCM business Marketing Metaverse developer SaaS PaaS IaaS Supply Chain Quantum Computing Growth Cloud Digital Transformation Disruptive Technology eCommerce Enterprise IT Enterprise Acceleration Enterprise Software Next Gen Apps IoT Blockchain CRM ERP Leadership finance Social Healthcare VR CCaaS UCaaS Customer Service Content Management Collaboration M&A Enterprise Service Customer Experience Chief Customer Officer Chief Information Officer Chief Marketing Officer Chief Digital Officer Chief Data Officer Chief Technology Officer Chief Analytics Officer Chief Information Security Officer Chief Executive Officer Chief Operating Officer

    Event Report - Microsoft Ignite / Envision 2017 - Broad push - few highlights

    Event Report - Microsoft Ignite / Envision 2017 - Broad push - few highlights

    We had the opportunity to attend Microsoft’s combined Ignite and Envision events held in Orlando, taking place from September 24th till 28th2017. It was the first time Microsoft merged the two events, resulting in a conference that was attended by almost 30k people. As usual with Microsoft, analyst, influence and press attendance was massive.
     
    A video shows more than a 1000 words, so if you prefer to watch: (if the video doesn’t show up, check here)
     
     
    No time to watch – here is the 1 slide condensation (if the slide doesn’t show up, check here):
     
    Want to read on? Here you go: Always tough to pick the takeaways – but here are my Top 3:
     
    Microsoft is serious about Quantum – During Nadella’s keynote, the Microsoft CEO unveiled the vendor’s ambition in the field of quantum computing. Not too specific on what and when will be available hardware wise, but clear enough that Microsoft is serious on the investment. The most tangible parts of the overalls strategy that materialized in Orlando were with Visual Studio and Azure. Microsoft will provide a new programming language to build Quantum applications – and with that position itself early in the Quantum programming race. Likely this will not get enterprises to soon to build them, but the early platform will help Microsoft in research and academia. On the Azure side, Microsoft will provide a simulator for up to 30 Qubits, system wise that would be the largest system / simulated system out there as of now.

     
    Microsoft Ignite Envision 2017 Holger Mueller Constellation Research
    Nadella talks Digital Transformation
    Cosmos DB gets air time – Cosmos DB, the former DocumentDB, got a lot of air time in the keynotes. And the database has a lot to offer: Easy setup, admin, data migration, global consistency and now   has access to Azure functions to build serverless applications. A key component to consider for global next gen applications, with a strong NoSQL profile.
     
    Microsoft Ignite Envision 2017 Holger Mueller Constellation Research
    The three graphs at Microsof
    Visual Studio gets a push – Though Ignite and Envision are not developer conferences, there was plenty of attention and airtime for Visual Studio. Not only does Visual Studio support a brand-new programming language for Quantum applications, it’s remains the developer platform for building next generation applications in the Microsoft ecosystem. That means that Microsoft is making it easier for developers to access the interesting innovative technologies of these days – speech recognition and machine learning. The bot framework is now well integrated and makes it easier for developers to build bot / chat based applications. The inherent fear of developers to be left behind, be eclipsed by other functions (e.g. Data Scientists. AI Pros etc.) is being addressed this way. And of course, Microsoft plays the DevOps, CI / CD and now – continuous innovation game. Putting more intelligence (and automation) in the development process will certainly be welcome by developer as well as enterprises. And Microsoft keeps building out capabilities that it has acquired with Xamarin, probably one of the best acquisitions Microsoft has made with a direct impact in developer and enterprise productivity.
    Microsoft Ignite Envision 2017 Holger Mueller Constellation Research
    Microsoft Hybrid Cloud Pillars
    Azure Stack is now GA -  After a pivot from own hardware to partner hardware, Azure stack is now (finally) available for enterprises. The over one-year delay is a proof how complex the traditional architecture and technology roll out in the partner model is. But now Azure stack can be offered (alphabetically) by Cisco, Dell, HP and Lenovo. And with that Microsoft has the partners that are still planning to make substantial revenue on premises, and are grateful for Microsoft to offer Azure Stack. Likewise, are enterprises who still want / need to deploy on premises … with the option to move some or all that load to the (Azure) cloud later.
     

    MyPOV

    A good event for Microsoft, that showed Microsoft’s broad push across all its products. Customers will welcome that more pieces fit together (for instance CosmosDB and Azure Functions – even the brand-new ones in this case) and that existing products are strengthened (e.g. Visual Studio). But the even lacked the very big announcements, maybe because Build earlier in this year was announcement rich. Maybe because even the GA of major achievements, like GA of Azure Stack get consumed with continuous talk and announcements. Good to see Microsoft being early and laying a foundation for Quantum computing. This architecture is likely going to be the first computing architecture that will no be deployed in the enterprise - at all possibly. Key for all IaaS providers to have it early in the arsenal, especially given the novelty and challenges of Quantum computing. 
     
    On the concern side Microsoft took an even more notable timeout on the Hololens side. And despite making key announcements that matter to customers (for instance support for Kubernetes, Tensorflow, CloudFoundry), these partnerships were all mentioned in the keynotes but not shown in demos (I may have missed them) or announced in roadmaps. Instead a lot of innovation on Docker came to light, e.g. SQL Server 2017 can run in… a Docker container. The biggest challenge enterprises have with Microsoft is the absence of a holistic PaaS strategy. Microsoft has a strong element with Visual Studio, components with Flow and others, but needs to tie it all together to compete with the other PaaS offerings out there. On the flipside, Microsoft is solving massive problems when it comes to synthesizing the three graphs it has now - the Microsoft, Office and LinkedIn graphs. That takes time to sort out properly. 
     
    But for now – substantial progress – it cannot always be fireworks. Product development takes time and sometimes event schedules and product cycles don’t align. The good news is – customers are waiting and genuinely excited about the progress that Microsoft is making. Stay tuned.
     
    Want to learn more? Checkout the Storify collection below (if it doesn’t show up – check here). A Storify of Scott Guthrie's keynote can be found here

    Find more coverage on the Constellation Research website here and checkout my magazine on Flipboard and my YouTube channel here
    Tech Optimization Innovation & Product-led Growth Event Report Microsoft Executive Events Chief Information Officer

    Digital Transformation Digest: Microsoft Lays Out Quantum Computing Vision, SAP Acquisition Underscores GDPR Urgency, Amazon's India Retail Play

    Digital Transformation Digest: Microsoft Lays Out Quantum Computing Vision, SAP Acquisition Underscores GDPR Urgency, Amazon's India Retail Play

    Constellation Insights

    Microsoft sets out quantum computing vision: While Microsoft has been investing in quantum computing research for more than a decade, it took a significant step forward during this week's Ignite conference, unveiling a new progamming language aimed at quantum computers that is fully integrated with its Visual Studio developer environment.

    Microsoft is also releasing quantum computing simulators that can be run on local machines or on Azure. The language and tools will be available at no charge by the end of this year.

    "We set out with a goal of not just achieving a few scientific milestones, but rather what would it take to build a truly scalable quantum computer," Microsoft CEO Satya Nadella said during a keynote.

    While classical computers are binary, storing bits as either a one or a zero, quantum systems leverage the behavior of subatomic particles, which can hold multiple states. This phenomena, which is known as superposition, stands to give quantum systems vast amounts of processing power. 

    For his part, Nadella referred to that favorite fall tradition, corn mazes, to explain the difference. While a traditional computer would solve the by "brute force," checking one possible path through after another, a quantum computer introduces "amazing parallelism" and could take every path in the corn maze simultaneously, he said.

    POV: Microsoft has made major investments in people for its quantum research, bringing on the likes of Fields Medal-winning mathemetican Michael Freedman. He and other Microsoft quantum researchers representing math, phsyics and computer science disciplines joined Nadella onstage for a roundtable discussion aimed at explaining how quantum computing works at a conceptual level, and showcasing Microsoft's advancements, which include a new chip.

    Microsoft may have been working on quantum computing for more than 10 years, but is a bit behind the likes of IBM and Google overall. IBM has said it will have commercial quantum systems in the market within a few years. It launched Quantum Experience, which allows developers to interact with an IBM quantum computer through its cloud, in 2016. Google, among others, is close to achieving "quantum supremacy"—the development of a quantum computer than can complete a task faster than the world's fastest supercomputers.

    Notably, Microsoft made no announcements regarding the future availability of quantum computing services. But it's a safe bet that when they are available, the vast majority will be procured through Azure. General-purpose quantum computers are years away, but in the meantime, Microsoft is making a smart play by introducing a quantum software stack delivered through the familiar Visual Studio environment. Getting its vast developer community skilled up on its flavor of quantum is a good way to seed the future market.

    SAP buys Gigya for customer identity management: Mass personalization at scale is a key goal of any customer engagement strategy. To that end, SAP has acquired customer identity and access management vendor Gigya for a reported $350 million. SAP's Hybris omnichannel e-commerce division had already partnered with Gigya since 2013. Here are the key details from SAP's announcement:

    Gigya’s customer identity and access management platform helps companies build digital relationships with their customers. Its platform allows companies to manage customers’ profile, preference, opt-in and consent settings, with customers maintaining control of their data at all times. Customers opt in and register via Gigya’s registration-as-a-service, which addresses changing geographical privacy issues and manages compliance requirements such as the upcoming General Data Protection Regulation (GDPR). Gigya currently manages 1.3 billion customer identities in order to build identity-driven relationships for its enterprise clients.

    POV: While referred to almost as an afterthought in SAP's announcement, GDPR-readiness is a hugely important and pressing task for companies in or which do business in the European Union. The strict new privacy framework goes into effect in May 2018 and will be vigorously enforced. Companies in violation can be fined up to 4 percent of their annual revenue and the EU is expected to collect billions in fines during the first year of its enactment.

    Amazon expands brick-and-mortar presence in India: For a mere $28 million, Amazon is gaining a presence in 80 Indian brick-and-mortar locations. That sum has given Amazon a 5 percent stake in Shoppers Stop, a national department store chain. Amazon will open "experience centers" in the stores, where shoppers can try out products that are available online. In turn, Shoppers Stop plans to open an additional 20 stores.

    POV: The deal is a pittance compared to the $5 billion Amazon CEO Jeff Bezos has pledged to spend in India overall, but on a strategic basis has some echoes with Amazon's partnership with Kohl's in North America.

    One difference is that while Kohl's has developed a strong omnichannel commerce plan, the vast majority of Shoppers Stop's revenue comes from in-store sales, particularly when it comes to clothing. Shoppers Stop represents a chance for Amazon to figure out the best way to convert the chain's loyal shoppers to online buyers, and in the process gain valuable insights about the Indian market overall.

    Data to Decisions Future of Work Marketing Transformation Tech Optimization Chief Customer Officer Chief People Officer Chief Information Officer Chief Digital Officer

    Digital Transformation Digest: MongoDB Files to Go Public, Microsoft and Facebook's Massive Undersea Fiber Line Completed, and More

    Digital Transformation Digest: MongoDB Files to Go Public, Microsoft and Facebook's Massive Undersea Fiber Line Completed, and More

    Constellation Insights

    MongoDB goes public: NoSQL database vendor MongoDB has submitted its long-anticipated filing to go public with the U.S. Securities and Exchange Commission. The S-1 form includes a wealth of information about the company's current business standing and future plans. Here's a look at the highlights.

    • Long popular with developers, MongoDB's filing supplies a figure that bears it out: There have been more than 30 million downloads of its Community Server freemium edition. MongoDB is also popular with corporations, with more than 4,300 customers overall and among them greater than 50 percent of the Fortune 500.
    • MongoDB says its architecture "combines the best of both relational and non-relational databases," and this is helping it poach workloads. During its fiscal 2017, about 30 percent of new business "resulted from the migration of applications from relational databases."
    • The company was formed in 2007 as 10gen but changed its name to MongoDB in 2013. While based in the U.S., 35 percent of its revenue now comes from outside the country, according to the filing.
    • MongoDB rolled out Atlas, its DBaaS (database as a service) cloud offering, in June 2016. As of July 31, it accounted for 5 percent of overall revenue. While describing MongoDB Atlas as a key component of its growth strategy, the company's filing also acknowledges it is still figuring out how best to market the service.
    • The company now has about 820 employees, with 211 in research and development compared to 324 in sales and marketing, as of July 31.
    • MongoDB has been tabbed a tech "unicorn" with respect to its high valuation, which is around $1.6 billion. But it has incurred net losses in every quarter since its inception, and was in the red $45.8 million for the six months ended July 31. The company expects its operating expenses to "increase significantly" after it goes public.

    Microsoft, Facebook complete new undersea US-to-EU cable: A milestone for next-generation networking was reached this week with the completion of Marea, an undersea telecommunications cable that runs between Virginia and Spain. Marea's capacity is enormous, as described by Microsoft, who partnered with Facebook and Telefonica on its construction:

    At more than 4,000 miles (6,600 kilometers) long and almost 10.25 million pounds (4.65 million kilograms) — or about the weight of 34 blue whales — the Marea cable is a feat of engineering, collaboration and innovation. The cable can transmit up to 160 terabits of data per second. That’s more than 16 million times faster than the average home internet connection, making it capable of streaming 71 million high-definition videos simultaneously.

    POV: Google has set the pace for this type of investment among major Internet companies, building out an extensive undersea cable network over the past few years. But Marea is said to be the largest-capacity undersea cable built to date.

    Moreover, any existing cables emanate from the New York area; by locating Marea further south, Facebook and Microsoft will gain latency benefits, since both companies have extensive data center operations there.

    Finally Marea was built with an "open" design that will allow it to more easily take advantage of future innovations in networking, Microsoft says.

    Legacy watch: How not to do procurement: In 2011, the Canadian government hired IBM to install PeopleSoft at a number of departments and agencies. The first stage of the project was contracted for $5.7 million, but through a series of contract amendments the total has ballooned to $185 milllion, the Canadian Broadcasting Company reports.

    As it stands today, the project, dubbed Phoenix, will cover more than 100 departments. Since going live in 2016, it has been wracked by performance issues and there are 1,000 identified bugs remaining to be fixed, the CBC report says.

    Sources quoted in the story suggest that scope creep, that familiar IT project management bugbear, was an issue. But it appears the Canadian government made a serious misstep when it agreed to one particular contract term, as former Treasury Board analyst Roman Klimowicz told the CBC:

    The request for proposal details the government's right to extend the terms of the Phoenix maintenance and support contract "for a period of up to approximately 20 years."

    Klimowicz wonders if it was a good idea to give IBM so much control over defining the project, implementing and operating it — and now attempting to fix it."There appears to be a conflict potentially," said Klimowicz, who was never involved in the Phoenix contract. "The statement of requirement could leave loopholes, could leave escape avenues in it … then IBM basically has an open bag of money to help themselves to."

    Zenefits Shift 2017 - Another pivot and even more software

    Zenefits Shift 2017 - Another pivot and even more software

    We had the opportunity to attend Zenefits’ Shift 2017 event in San Francisco, held at the Metreon on September 21st, 2017. The conference was well attended, though less in audience  than the Z2 launch 12 months ago. But the main objective was to get an online viewership, and Arianna Huffington delivered, during her keynote / interview the online viewership spiked beyond 60k+.
    Zenefits Shift17 Constellation Research Holger Mueller
     
    A video shows more than a 1000 words, so if you prefer to watch: (if the video doesn’t show up, check here)
     
     
    No time to watch – here is the 1 slide condensation (if the slide doesn’t show up, check here):
     

    Always tough to pick the takeaways – but here are my Top 3:

    Zenefits does another pivot: From disrupting to powering brokers. The original idea of Zenefits was to disrupt both software and brokerage. Use the brokerage commissions and make the software free. Last year, at Z2, Zenefits pivoted to more software, starting to charge the SMB clientele for software and services. At Shift 2017 the vendor communicated even more of a move to software, reducing its own brokerage function and adding the capability to help brokers run more efficiently. Likely Zenefits is productizing internal assets, my speculation here, a strategy that would make sense. Oh, and Zenefits unveiled also a new logo – but never talked about it… what a difference to Z2.
     
    Zenefits Shift17 Constellation Research Holger Mueller
    Fulcher welcomes to Shift17
    Meet employees where they are: New mobile, Voice (Alexa) demo. Like many other vendors Zenefits follows the credo of people centricity, meaning that consumption of HR software needs to be made as easy and frictionless as possible… this means that HCM software needs to be consumed where users do work: Most prominently in chat software and ideally voice accessible. Zenefits showed a demo with Alexa, going through a time off request.
     
    Zenefits Shift17 Constellation Research Holger Mueller
    Carr talks Services
    New Connect offerings – Ben Connect and Pay Connect. Zenefits has a strong platform and partner focus, but needs to make the consumption of partner services easy… meaning that it needs to do the integration work for these partners to allow easy uptake by its SMB customer base. Benefits does this through the Connect product family, and at Shift 2017 it unveiled the Ben Connect and Pay Connect products. Ben Connect provides integration to benefit providers, Pay Connect to 3rdparty payroll providers (ADP, Gusto, Paychex, and I believe on more provider).
     
    Zenefits Shift17 Constellation Research Holger Mueller
    Reeves talks Products
    Native Zenefits Payroll now at 30 states. A year ago, Zenefits unveiled its payroll offering, supporting a handful of states, the vendor has now arrived at the support of 30 states… and remains committed to support all 50. I missed the roadmap presentation on this, but it supposedly exists, and is key for SMBs to plan their rollouts and / or to make software selection decisions.
     

    MyPOV

    A good user conference for Zenefits, that is going more into the direction of becoming an enterprise software vendor. New CEO Fulcher has brought in a new management team, with a new COO, CMO and head of product. All industry veterans, so we can expect good things to come for Zenefits customers. The new mobile product looks good, though Zenefits makes the common (SFO / Valley) mistake of favoring iOS over Android. With 50% of US smartphones being Android phones, not really people centric, but as mentioned a common and repeated flaw of HCM vendors.

    On the concern side, Zenefits showed very little software. And while it is great to listen to Arianna Huffington, Patty McCord, Ben Horowitz and Shawn Achor – showing a live mobile demo and an Alexa demo is not cutting the balance between fuzzy feel good and tangible product. We saw the same recently at SuccessFactors conference (Oprah, the Cake Master etc.). Maybe both vendors have new management teams and need to cover over a pause in product development. But vendors should not forget, the main reason to attend their user conference is their product and its roadmap. All appreciation, vision and though leadership on general practices – comes later. Showing core software capabilities as slide show is not what users (and influencers) expect.

    But for now, good progress by Zenefits, more software DNA in its executive team and likely its product future. Stay tuned.
     
    Stay tuned.
     
    Want to learn more? Checkout the Storify collection below (if it doesn’t show up – check here).

    Find more coverage on the Constellation Research website here and checkout my magazine on Flipboard and my YouTube channel here
     
    Future of Work Innovation & Product-led Growth Event Report Executive Events Chief People Officer

    Digital Transformation Digest: Google Adds 'Zero-Touch' Enterprise Deployments for Android Devices, Red Hat's New Patent Promise, and IBM's Latest Open Source Moves

    Digital Transformation Digest: Google Adds 'Zero-Touch' Enterprise Deployments for Android Devices, Red Hat's New Patent Promise, and IBM's Latest Open Source Moves

    Constellation Insights

    Google introduces 'zero-touch' enterprise deployment for Android devices: It's going to be easier and more secure to roll out enterprise Android devices, with Google's introduction of "zero-touch enrollment" capabilities.

    Under the program, companies that purchase Android devices can use EMM (enterprise mobility management) software to automatically apply configurations and policies the first time a user turns the device on. Supported EMMs include VMWare AirWatch, BlackBerry, MobileIron, IBM and GSuite.

    Initially, the feature is available only on Google's Pixel phone when purchased through Verizon. Google is working with Samsung, Huawei, Sony, LG and other device makers to add zero-touch; Sony's Xperia XZ1 and XZ1 Compact will be among the first additional devices to get it. Google is also working with a variety of other carriers besides Verizon.

    POV: This is certainly a desirable feature given how much it can cut down on device management and end-user support tasks. It also has security benefits, since the devices won't ever be used in an un-managed state.

    However, this is also an instance where Google is playing catch-up for a change, as Apple has offered similar capabilities through its Device Enrollment Program, as has Samsung with its Knox Mobile Enrollment service. It's nonetheless a welcome addition to Google's mobile enterprise capabilities with real benefits for customers.

    Red Hat updates, expands its 'patent promise': In 2002, Red Hat issued a decree saying it would not enforce its patents against free and open-source software. Fifteen years later, the company has released a new version of the Patent Promise, one it says substantially extends the original's scope. Here's how Red Hat explains the decision, from an FAQ:

    We issued the first Patent Promise 15 years ago. Since then, both Red Hat and open source have changed considerably, and some aspects of the Promise became outdated. Open source is what Red Hat does, and open innovation plays an increasingly important role in technology and beyond. Our expanded Patent Promise recognizes and is designed to protect open innovation.

    The new Promise is substantially clearer and broader than its predecessor. While the old Promise covered approximately 35 percent of open source software, the new version will cover more than 99 percent. It applies to all software meeting the free software or open source definitions of the Free Software Foundation or the Open Source Initiative and listed by the FSF or OSI.

    Both the original and new promise covered the entirety of Red Hat's patents. But the company today has more than 2,000 patents, compared to just a handful at the time of the first promise.

    Both the new Promise and the original Promise covered all Red Hat’s patents. It’s worth noting that at the time of the original Promise, Red Hat had only a few patents, while now it has more than 2000.

    POV: As a company based on open source software, Red Hat's pledge seems like a natural step. It doesn't appear that it provides any protection to companies from patent lawsuits brought by non-practicing entities—otherwise known as patent trolls—but clearly puts a flag in the ground stating that Red Hat is a trusted partner to companies looking to innovate with open-source software.

    IBM open-sources Websphere Liberty for agile app development: Big Blue has open-sourced the code for Websphere Liberty, the ligher-weight version of its flagship Java application server. IBM's Ian Robinson explains why in a blog post:

    We created Liberty five years ago to enable developers to easily and quickly create applications using agile and dev/ops principles. It has been an incredibly successful and popular transformation for WebSphere and now is the time to take it to the next level by moving the essential Liberty code base into the open.

    This week IBM launched the Open Liberty project and moved our Liberty development effort to it. The code is available in GitHub under the Eclipse Public License V1, and our ongoing development for WebSphere Liberty will be based on this project. Open Liberty is focused on creating a runtime to support Java microservices that can be frequently updated and easily moved between different cloud environments.

    At any time, developers can move up to the commercial versions of WebSphere Liberty, adding dedicated technical support and more advanced capabilities. Because Open Liberty and WebSphere Liberty are built on the same codebase this transition is seamless, so there’s no need to modify your applications.

    POV: IBM is also open-sourcing its IBM J9 virtual machine implementation, which along with Open Liberty provides a full, IBM-approved Java stack.

    While Open Liberty is easier to set up and manage, gets more frequent updates, and offers more deployment options than the full-blown WebSphere, it isn't as feature-rich. There are also many existing applications that would be difficult or not possible to move to Open Liberty due to feature gaps.

    IBM is betting that moving Open Liberty to an open-source model will attract community support and subsequently more development resources and market traction around the code base. It's far from an unprecedented move, but still stands as another example of where open source wins, notes Constellation VP and principal analyst Holger Mueller.

    "While IBM knows how to partner and work with open source, customers have to keep a watchful eye on vendors not just punting the code over," Mueller says. "I'm not saying that is the case here, but with all the struggles at IBM it's a potential risk to consider."
     

    Future of Work Tech Optimization Digital Safety, Privacy & Cybersecurity

    Progress Report - Kronos grows and grows

    Progress Report - Kronos grows and grows

    We had the opportunity to attend Kronos’ very first analyst day, held at the vendor’s new headquarters outside of Boston. It was the first day at the office for many of the executives and employees, a very nicely remodeled older office building (the former Wang HQ), with many interesting and useful features and capabilities. Interestingly there are no rooms, corner offices etc. facing the windows. The idea is to allow as much possible day light to flood the building. Not even CEO Ain has an office with a window.
     

    So, look at my musings on the event here: (if the video doesn’t show up, check here)
     
     
    No time to watch – here is the 1-2 slide condensation (if the slide doesn’t show up, check here):
     

    Want to read on? 

    Here you go: Always tough to pick the takeaways – but here are my Top 3:

     
    Ain opens 1st Kronos Analyst Day
    Kronos keeps growing in all dimensions. Kronos keeps doing well, having achieved the 1B milestone a few years ago, delivering 1.3B US$ in the last financial year and now aiming at 1.4B US$. The growth is documented in headcount, too – Kronos hired 1000+ in the last 12 months, one additional reason to open the new headquarters. And Kronos has left itself some room to grow – there is still space in the new office building.

     
    Workforce Ready Key Directions
    Workforce Ready. Kronos’ SMB product is doing well. Adding and cross selling HCM capabilities seems to be something that Kronos has mastered well. The vendor claims they are the fastest growing HCM product, that has passed +100M US$ already. The functional highlight was improved reporting with new dashboards, an updated user interface and new mobile capabilities.

     
    Workforce Central Directions

    Workforce Central. Kronos’ larger enterprise product is doing well as well. Often used in conjunction with other HCM products, it has undergone, and will see more API work. RESTful integration is the writing on the wall. And it would not be Kronos if the vendor would not spend R&D on more advanced scheduling capability as well as new schedulers. Improved integration into 3rd party HCM products is another key investment theme.
     

    MyPOV

    Kronos is investing in product and growing on all fronts. It has carved out a working niche in SMB and has become the ‘Switzerland’ that can partner with the likes of Oracle, SAP and Workday for Workforce Management capabilities. It seems like competition in the field and is building out its capabilities. Good news for customers is that Kronos has overcome technical challenges from the past, and now offers a stable, reliable workforce management system, that clients need and deserve.
     
    On the concern side, Kronos remains a conservatively run company. As it competes with vendors with more enterprise software DNA, it can find itself on the backfoot when it comes to visionary and sometimes flashy announcements. Customers should ask and dig deeper on Kronos’ innovation pipelines and plans, and likely are not going to be disappointed. Kronos has a large development team and is working on many new workforce management capabilities.

    Stay tuned for Kronosworks later this year in Las Vegas, I am certain we will know a few things more about what’s next for Kronos customers.
     
      Want to learn more? Checkout the Storify collection below (if it doesn’t show up – check here).

      Future of Work Data to Decisions Innovation & Product-led Growth New C-Suite Tech Optimization AI Analytics Automation CX EX Employee Experience HCM Machine Learning ML SaaS PaaS Cloud Digital Transformation Enterprise Software Enterprise IT Leadership HR Chief People Officer Chief Experience Officer Chief Customer Officer Chief Human Resources Officer