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How do security pros understand privacy?

This is an edited extract from a chapter I contributed to Darek Kloza and Dan Svantesson's new book "Trans-Atlantic Data Privacy Relations as a Challenge for Democracy?" 

Privacy is contentious today.  Some say the information age has brought real changes to privacy norms.  With so much private data leaking through breaches, accidents and digital business practices, it’s often said that ‘the genie is out of the bottle’.  Many think privacy has become hopeless.  Yet in Europe and many jurisdictions, privacy rights have been strongly and freshly enforced, and for the very latest digital processes.  

For security pros coming to grips with privacy, the place to start is the concept of Personally Identifiable Information (PII).  The threshold for data counting as PII is low: any data about a person whose identity is readily apparent constitutes PII in most places, regardless of where it came from, or who might be said to ‘own’ it. This is not obvious to engineers without legal training, who may form a more casual understanding of what ‘private’ means.  So it seems paradoxical to them that the words ‘public’ and ‘private’ don’t even figure at all in laws like Australia’s Privacy Act!

There is a cynical myth that ‘Technology outpaces the Law’. In practice, it is the law that challenges technology, not the other way around!  The grandiose claim that the ‘law cannot keep up with technology’ is often a rhetorical device used to embolden developers and entrepreneurs.  New technologies can make it easier to break old laws, but the legal principles in most cases still stand.  If privacy is the fundamental right to be let alone, then there is nothing intrinsic to technology that supersedes that right.  It turns out that technology neutral privacy laws framed over 30 years ago are powerful against very modern trespasses, like wi-fi snooping by Google, over-zealous use of biometrics by Facebook, and intrusive search results extracted from our deep dark pasts by the all-seeing Google. So technology really only outpaces policing. 

One of the leading efforts to inculcate privacy into engineering practice has been the ‘Privacy by Design’ movement (PbD), started in the 1990s by Ontario privacy commissioner Ann Cavoukian.  PbD seeks to embed privacy ‘into the design specifications of technologies, business practices, and physical infrastructures’. As such it is basically the same good idea as building in security, or building in quality, because to retrofit these things too late leads to higher costs and disappointing outcomes.

In my view, the problem with the Privacy by Design manifesto is its idealism.  Privacy is actually full of contradictions and competing interests, and we need to be more mature about this. 

Just look at the cornerstone privacy principles.  Collection Limitation for example can contradict the security instinct to retain as much data as possible, in case it proves useful one day.  Disclosure Limitation can conflict with usability, because it means PII may be siloed and less freely available to other applications.  And above all, Use Limitation can restrict revenue opportunities in all the raw material digital systems can gather.  Businesses today accumulate masses of personal information (sometimes inadvertently, sometimes by design) as a by-product of online transactions; real privacy means resisting the temptation to exploit it (as Apple promises to). Privacy at its heart is about restraint. Privacy is less about what you do with personal information than what you don't do with it.  

PbD naively asserts that privacy can be maximised along with security and other system objectives, as a “positive sum” game.  But it is better that engineers be aware of the trade-offs that privacy can entail, and that they be equipped to deal with real world compromises entailed by privacy just as they do with other design requirements.  Privacy can take its place in engineering along with all the other real world considerations that need to be carefully weighed, including cost, usability, efficiency, profitability, and security.

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Salesforce Unveils New Einstein AI Platform Services: What It Means

Constellation Insights

Salesforce is continuing its steady stream of Einstein AI announcements, unveiling three new platform services that developers can inject into applications for sales, support, marketing and commerce.

The services include Einstein Sentiment, Einstein Intent and Einstein Object Recognition. They are derived from Einstein capabilities Salesforce gained through last year's acquisition of MetaMind.

Sentiment identifies positive, negative and neutral messages about a company or its products on social media, message boards and other sources, while Intent can classify and route cases or leads, or personalize responses in sales service and marketing scenarios.
 
Einstein Sentiment and Intent are pre-trained on words commonly used in front-office communications, including common B2B and B2C support scenarios, but they can also be custom-trained with as few as 50 to 100 examples, Salesforce says.
 

Salesforce had already introduced Einstein Vision, an image recognition service based on MetaMind capabilities in February, but Object Detection goes a level deeper, says Constellation Research VP and principal analyst Doug Henschen.

For example, a seller of solar panels could use the Vision Service to differentiate between images of flat-roofed homes and pitched-roof homes, but the Object Detection can differentiate multiple objects within a single image, he notes. Coca Cola did a pilot project with the service, whereby retailers could simply take a picture of their Coke coolers. The Object Detection Service was trained to count the number of bottles or cans of Coke versus Diet Coke versus Sprite and so on and then automatically trigger a restocking order, Henschen says.

Overall, it's important for Salesforce to continue adding not only depth but granularity into its AI services when it comes to developers. "Generic smart applications can only go so far," Henschen says. "I think companies and their developers are excited by the prospect of building custom smart apps."

However, as is often the case with Salesforce, the new platform services aren't yet generally available and no firm dates for that status were provided. Einstein Sentiment and Einstein Intent are now in beta, while Object Detection is in pilot.

The news comes as Salesforce holds its second annual developer conference, TrailheaDX, and seeks to dramatically expand its developer community through an expansive online training platform called Trailhead. Other news announced this week includes Trailhead partnerships with Atlassian and Github, as well as an open beta for Salesforce DX, the company's new developer experience which combines its core Force.com platform with Heroku.

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Digital Transformation Digest, 6/28/17: Salesforce Courts Developers, Cisco Revs Up IoT, Google and Nutanix Tie Up on Hybrid Cloud

Constellation Insights

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

Salesforce adds AI platform services for developers, opens up DX in beta: The CRM giant has made a steady stream of announcements in recent months around its AI technology, Einstein, which is the product of a string of acquisitions and organic development. In the latest, Salesforce has unveiled new Einstein platform services for its developer base.

The services include Einstein Sentiment, for analyzing the tone of text generated by social media, web reviews and other mediums; Einstein Intent, which provides machine learning models that can classify the intent of inbound customer messages and route them appropriately; and Einstein Object Detection, for analyzing the content of images. Salesforce sees the last as ideal for retail, service and inventory management scenarios.

Go here for a deeper dive into the new services, with analysis from Constellation Research VP and principal analyst Doug Henschen.

Salesforce has also announced an open beta for DX, its new developer environment, which was first announced at last year's Dreamforce.

POV: Salesforce is betting big on expanding its already large developer base in a bid for growth. It has rolled out an extensive online training program called Trailhead, which is aimed at both those aspiring to be full-time Salesforce professionals, as well as "citizen" developers. The latter could be just as important for Salesforce's prospects given the potential for adding stickiness to its products within companies large and small.

The news is all happening in conjunction with TrailheaDX, Salesforce's second annual developer conference. Constellation Research VP and principal analyst Holger Mueller will be in attendance, so look for his coverage on his Twitter feed, Constellation's website and his blog this week.

Cisco ups its IoT ante post-Jasper acquisition: Last year's $1.4 billion purchase of IoT connectivity platform Jasper seemed like a shrewd move for Cisco, as it picked up one of the most mature and widely-used products of its kind.

Jasper was founded in 2004 and at the time of the acquisition, it already had 3,500 enterprise customers. (It now has 11,000, in a testament to Cisco's much larger channel and sales capability.) And on paper, the technical fit was sterling, with the combination of Cisco's networking gear and Jasper's software.

While there have been some incremental announcements since the deal, the big news arrived this week in the form of Control Center 7.0, which ties an array of Cisco technologies into Jasper's platform. You can go here for all the details, courtesy of Cisco.

POV: "It took some time from the acquisition of Jasper, but now we see the benefits in Cisco Control Center 7.0," says Constellation Research VP and principal analyst Andy Mulholland. "It's a combination of network topology types combined with the management experience of both Cisco and Jasper. As an example of the art of the possible in IoT connectivity spanning network types, it's well worth taking a close look."

Google teams with Nutanix for hybrid cloud: Google—technically, its parent company Alphabet—has inked a pact with hyperconvergence vendor Nutanix for hybrid cloud scenarios. Nutanix offers hardware and software for running mission-critical applications on private clouds, while providing connectivity to public cloud services for other workloads.

The integration is set to be complete in the first quarter of 2018. It will enable applications to be wrapped in Kubernetes-based containers and moved back and forth between Nutanix hardware and Google's cloud.

POV: This is certainly a big deal for Nutanix but also an acknowledgment by Google that hybrid cloud is what many enterprises want or require. Nutanix has strong credibility in its own right, with an enviable customer list using its products to build hybrid cloud datacenters.

Legacy Watch: Looming deadline for Office 2007 support: Companies and individuals still using Office 2007 have just three more months of support before Microsoft pulls the plug, as Computerworld reports. While they have the option of upgrading to a newer version of Office, such as 2013 or even 2016, Microsoft is pushing hard on the idea of jumping straight to the cloud-based Office365 or Office365 Plus, the fat-client version.

POV: It's not clear how many copies of Office 2007 are still chugging away out there, but we can be sure it's far more than one. Office365 has developed a rich feature set and is certainly worth a close look. For its part, Microsoft has a detailed end-of-life guide for Office 2007 at this link. (It also doubles as a passive but persistent product pitch for Office365).

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SugarCRM Unveils Hint, for 'Relationship Intelligence'

Constellation Insights

SugarCRM has firmed up its AI story with the launch of Hint, the first service from its new Relationship Intelligence product family. Hint is all about automating the task of collecting and organizing information about individual customers, as SugarCRM explains in a press release:

SugarCRM Hint reinvents enterprise applications by enabling end users to provide only a few contact details (e.g. email, name, company) for an individual and then automatically searches, tunes, and inputs the rest of the personal and corporate profile details for that contact. Hint does the work for Sugar users by gathering and analyzing customer intelligence from a broad range of social data sources so users can quickly and efficiently learn more about their prospects to establish a productive relationship.

Hint builds upon last year's acquisition of Contastic, a natural-language processing startup. It is compatible with Sugar versions 7.8 or higher and priced at $15 per user per month.

Hint represents a first step in a longer journey for SugarCRM, as the company notes in the release:

Future SugarCRM Relationship Intelligence products will rely on predictive analytics and machine learning techniques. These analysis techniques evaluate large data sets to reveal insightful patterns, prioritize opportunities, identify issues and make intelligent recommendations for next best actions in customer interactions and processes.

For what it is, Hint serves an increasingly important need, says Constellation Research VP and principal analyst Cindy Zhou. "Companies have been turning to third-party data solutions to append the missing information for both companies and their related contacts," he says. Having more complete information on the company, the decision-makers and contacts will help sellers improve their engagement with customers and prospects."

But Zhou advises clients to assess the fit and understand the depth and breadth of contacts Hint can provide. "Is there specialization in their particular target markets, industries or contact roles?"

POV: SugarCRM has chugged along over the years, despite remaining in the shadow of high-profile CRM vendors such as Salesforce and Oracle. It has differentiated itself with aggressive pricing-to-feature ratios, and the ability to run both in the cloud and on-premises.

With Hint and the upcoming Relationship Intelligence products, SugarCRM has made an initial entry into AI. While it doesn't have pockets as deep as larger competitors, SugarCRM is smartly focusing its initial AI efforts on core sales CRM capabilities—its sweet spot—compared to Salesforce's aggressive push to drive AI across every module.

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DNS Up-and-Comer Cloudflare Launches App Platform

Constellation Insights

DNS service provider Cloudflare is getting serious about apps. The company has announced the Cloudfare Apps Platform as well as a $100 million fund that will distribute venture capital to startups that build apps on the platform. 

Founded in 2011, Cloudfare has now built out a network that spans 115 cities around the world, serving six million websites. Prominent customers include Uber and Fitbit. Cloudfare also offers CDN (content delivery network) services, firewalls and DDoS (distributed denial of service) protection. 

Cloudflare App Platform is a natural evolution of the business, CEO Matthew Prince wrote in a blog post:

Prior to today, if you wanted to write code that took full advantage of Cloudflare's global network you needed to be a Cloudflare employee. Our team is able to run code on thousands of servers in hundreds of locations around the world and modify our customers' packets as they flow through our network in order to make their web site, application, or API faster and more secure. Today, we open that access to the rest of the world.

The Apps Platform allows third parties to develop applications that can be delivered across Cloudflare's edge to any of our millions of customers. 

Cloudflare sits in a unique place. Our customers' packets flow through our network before reaching origin servers and in the way back to clients. That enables us to filter out bad actors, introduce new compression, change protocols, and modify and inject content. The Cloudflare Apps Platform enables developers to do the same, and produce applications that help build a better Internet.

Meanwhile, the developer fund is being backed by Venrock, Pelion and NEA, which were early investors in Cloudfare:

Building Cloudflare was a community effort. We can't wait to see what developers build now that we've opened Cloudflare's infrastructure and access to investors to a greater audience.

The App Platform stems from Cloudflare's purchase of Eager last year. Despite its name, the platform doesn't offer a full set of developer tools. Rather, it provides a way for third-party developers to wrap their JavaScript and CSS-based applications in an install.JSON file. Cloudflare's platform abstracts away complexity for website customers, allowing non-technical users to use a simple interface to configure and install apps on their sites. 

Eager's technology replaces an earlier app platform Cloudflare had built on its own. The company's app marketplace has about 50 applications so far but clearly the goal is to have many, many more. Like other stores, Cloudflare will take a piece of developers' revenue, in this case 30 percent.

POV: Surprisingly rich applications can be built with JavaScript and CSS, but you can expect the variety of applications that populate Cloudflare's store to include a fair amount of widgets, too, albeit useful ones, particularly for small and medium-sized businesses or department-level websites who want to add features quickly without engaging IT. Like any, the marketplace and platform's success will depend on developer and customer awareness, but Cloudflare's overall momentum, along with the $100 million fund, should ensure a fair amount of both.

 

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Cisco Live 2017: Key Takeaways from CEO Chuck Robbins' Keynote

Constellation Insights

Cisco kicked off this year's Live conference with a keynote from its CEO Chuck Robbins, who walked attendees through recent and upcoming news announcements while laying out the company's vision for next-generation networks. Here's a look at the key takeaways from Robbins' talk.

The new networking realities: In 2016, the world hit an inflection point as the number of machine-to-machine network activations exceeded those of phones and tablets, Robbins said. Enterprises are already using billions of connected devices for new business models, preventive maintenance and other pursuits, and the pace by which more and more devices will be connected to the Internet is set to increase dramatically, he added.

Three things will define networks going forward: Scale, simplification and security, Robbins said. Of the last, he noted: "We all know what's in the press and as we add more and more things the threat surface expands. Once a month, something major happens. We have to ensure we're building security into everything we do."

Last week, announced major updates across its Digital Network Architecture product family. These include DNA Center, a management dashboard for all network functions; Software-Defined Access, which automatically segments network traffic through policy enforcement; and a machine learning platform for predictive analytics and business intelligence.

There's also new traffic analytics that can accurately detect threats in encrypted traffic more than 99 percent of the time, without needing to decrypt the data.

Robbins also discussed a new family of switches, the Catalyst 9000 line, which he called a "beautiful box." The switches include new custom-built ASICs and are fully programmable, allowing, for example, a hospital bringing on IoT devices carrying patient data to separate that traffic from desktop networks. It's also possible to run applications in containers or VMs directly on the boxes.

To that end, "what we believe is the network has to provide you the ability not only to connect but to deal with the data at the edge," Robbins said. 

Seventy-five large companies are already conducting field trials with the new software and hardware, according to Robbins. The various aspects of the portfolio will become available over the next several months, Cisco said.

POV: Robbins kept the product pitches fairly short and free of bombast, which is always welcome. He also did a good job of speaking directly to the thousands of Cisco administrators and architects present at Mandalay Bay, highlighting the importance of their roles and responsibilites in the IoT age. 

The multi-cloud reality: Cisco, like others, tried but failed to make inroads in the public cloud market and ultimately shuttered its Intercloud service in March. Thus it was not surprising that the cloud portion of Robbins' talk discussed Cisco's new strategy, where it will support multi-cloud management. 

Cloud computing began as a quest for simplicity in enterprise IT but with companies buying into a proliferation of SaaS, PaaS and IaaS offerings now has become a problem of data control and security.

"This is a major challenge we have to solve," he said. "It's not going to the cloud, it's going to many, many clouds. And the network has a unique ability to help you navigate that by preserving your policy and your security."

POV: Constellation believes multi-cloud is the right direction for most customers. Cisco, however, is far from the only vendor trying to pivot into multi-cloud management and will have to find the right place in the market. 

Apple, Cisco cozy up a bit more: Robbins invited a surprise guest onstage in the form of Apple CEO Tim Cook. Their conversation consisted mostly of generalites about the companies' partnership, which big boost two years ago with the announcement of an enterprise-oriented "fast lane" service for validating iOS devices on Cisco networking gear. 

Cisco and Apple didn't have anything nearly as big to announce during Robbins' talk, but Cisco did unveil Security Connector, which takes functionality from its Umbrella and Clarity security products and combines it in one app. It provides features for incident investigation, blocking malicious sites and encrypting DNS requests, and can be used to manage iOS devices in conjunction with an mobile device management platform.

POV: While the fireworks weren't really there this year news-announcement-wise, Cook's appearance is some evidence the Cisco-Apple partnership has been a success. (Cook said as much, but neither he or Robbins talked numbers.) In any case, the deal always made sense for both companies on paper, with Apple gaining an inroad to enterprises through Cisco's channel and Cisco able to pitch its networking products as superior for iOS devices. 

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Sports Event - Lessons Learned for CxOs from America's Cup #5

 
We had the opportunity to attend the America's Cup (AC), currently happening in Bermuda. For any sports (and sailing enthusiast) a once in a life time opportunity. And there is always something to be learned in life - with applicability to the enterprise... here I share my top 3 lessons learned from AC 35.
 


 
 

Take a look at the video that I recorded in Bermuda for a start:
 


And of course there is a one slide summary:
 
 
And here are the three lessons learned:
 

Challenge Best Practices

AC35 Development – For the first time AC teams have members of their team called ‘cyclist’, in this case Emirates Team New Zealand even has an Olympic medalist on board. It matters as the New Zealand team creates the vital pressure for maneuvers and adjusting with … spinning on stationary bikes. Four of the six team members… pedal. Unthinkable for sailing so far – the biggest forces in sailing were generated by arms, by the so-called grinders. And while all five other teams did not want / could not react to the New Zealand innovation. The power advantage is obvious, based on the team claims that the best Emirates Team New Zealand value is averaging 800W per race, the best grinder of Oracle Team USA does… 350W per race.

The CXO Lesson – Best practices are not there to be followed blindly but questioned regularly. Lateral thinking is crucial: Find what works in other areas and can solve the problem better. Everybody knows humans have more power in their legs than their arms – so why not use it … on a sailboat. What is the lateral thinking to disrupt and innovate on best practices for your enterprise?

 

Make the organization a living being

AC35 Development – AC teams have traditionally been very hierarchical organizations, the buck stops with the skipper, giving the commands and the ream receiving them. The tactician was an innovation introduced decades ago, to give the skipper a second opinion, another set of eyes. Tacticians would advise, skippers sometime follow. Compare to what Emirates Team New Zealand does: The helmsman drives, another team member is the foil trimmer and another one oversees sails (ironically the formal skipper, Ashby). Full delegation, no need to communicate / coordinate (listen into the live broadcast).

The CxO Lesson – Organizations need to be reviewed regularly. Too much communication and coordination can slow down an enterprise. Autonomy is powerful, empowers people to make the right decision, focus on the job and get It done. How many of you directs can / could do with more autonomy? Do they give them directs more economy?

 

Show up - late and ready works

AC35 Development – Emirates Team New Zealand only made it to Bermuda in May, races started in June. Oracle Team USA was their already almost two years earlier. As it turns out – the conditions the New Zealand team trained under at home, were more the ones that are now occurring in the Great Sound of Bermuda. Maybe lucky, maybe not. For sure the other teams saw less of the cycle setup.

The CxO Lesson – You don’t have to be first. Your enterprise must be there at the right time and ready. Every move will cause a reaction by the competition. The earlier your enterprise acts, the more time for the competition to react, adapt and maybe beat you. Late and ready is better than to be early and surprised and with no potential to adapt or react.

 

MyPOV

There are many lessons to be learned in life and it’s nowhere cast in stone that new strategies in business have to come from lessons learned in business. Lateral thinking, questioning the status quo, bending best practices, ignoring best practices and challenging them need to be part of the daily work of a CxO. Once implemented, they need to be executed, and we know flatter, more autonomous and more diverse teams do better. Empower the organization. And have a plan over time. Leave something in the tank to change the way the game is being played and playing out. If you are ready, coming later with impact is better than be early and exhausted.

The America’s Cup is not over. More lessons maybe able to be learned. When I recorded the video, the score was 4:1 for Emirates Team New Zealand. At the time of writing this, the score is 6:1. But in 2013, Oracle Team USA came back from a 1:8 deficit. Maybe that the last lesson for CxOs from the AC: Never say never, and it’s never over till it’s over. Watch Race #9 tomorrow – there may be more – or not – but there is definitively something to learn from AC35.
Tech Optimization New C-Suite Data to Decisions Future of Work Innovation & Product-led Growth Leadership Chief Experience Officer

FinancialForce Community Live 2017 - All about Services

 
 We had the opportunity to attend Financial Force’s 2nd user conference, Community Live – the first open for influencers, held in Las Vegas, from June 19th to 21st, at Cesar’s Place. Over 700 attendees, extraordinarily well attended by the influencer community (per MSR rule). 



 

 
So, take a look at my musings on the event here: (if the video doesn’t show up, check here).


 

 
I also recorded my first impressions of the keynote with Den Howlett over at Diginomica – watch it 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:

FinancialForce doubles down on Services – Financial Force has always focused on service industries, in the keynote new CEO Tod Nielsen re-iterated the commitment, drawing a wider picture – that ‘everything’ is becoming a service. This was taken all the way to the (not so serious) example of “Puppy as a Service”. But a valid point the resonated well with the audience. Not so long ago we talked about outcomes are what matter for customers, and outcomes as a service (including services) would have been a bolder point. But that can still happen.

 
FinancialForce Community Live 2017 Holger Mueller Constellation Research Future of Work
Tod Nielsen opens FinancialForce Community Live 2017

Focus on Talent Management for Services Industries – It’s always with a grain of salt when vendors reduce their ambition – and that’s what FinancialForce has done in HCM. Instead of becoming a full-fledged HCM vendor, FinancialForce will focus on Talent Management for Services Industries (with white collar workers). It chose ADP as its part for HR Core and Payroll, certainly a good move to choose the most used payroll platform in North America. And payroll is crucial in the services industries: Professionals stop working to check their paycheck – often even at customer site – so getting this integration right is crucial. And FinancialForce and ADP plan to provide a vendor based integration, likely around the REST technology that ADP has championed with another ERP vendor recently (check my blog).

 
FinancialForce Community Live 2017 Holger Mueller Constellation Research Future of Work
Studer with Imbrogno - Partnership of FinancialForce and ADP


Financials Roadmap – With all these changes, the core of FinancialForce, Financials, almost took a backseat. But there was room in the keynote to point out to a key road map
 
items, most prominently revenue recognition, renewal risk and revenue analysis.

 
FinancialForce Community Live 2017 Holger Mueller Constellation Research Future of Work
FinancialForce uses Salesforce Wave
 

MyPOV

Always good to be at an early edition of a user conference, where the user community gets shaped, develops expectations and the vendor ecosystem goes through its first incarnations. The ‘tribal’ values of an ecosystem get established in these first conferences. It was especially interesting with the executives who shouldered the bulk of the first day keynote – Nielsen and Studer being with FinancialForce for respectively (only) six and three months. But both showed they are familiar with customers, their expectations and demands, a good sign.

On the concern side – it is always sensitive when vendors retrench in footprint plans and ambition. FinancialForce has done a respectable job at addressing these concerns and informing customers ahead of the changes in HCM and the partnership with ADP. At the end of the day it is better for vendors to realize what the can do with their R&D budgets, and better to stop too ambitious plans sooner than later What matters for FinancialForce customers is that the partnership with ADP will deliver – if and when it does – the potential FUD around this change - will all be history.

Overall a good Community Live conference for FinancialForce customers and partners, now it is time to deliver and what was announced. Stay tuned.
 
Want to learn more? Checkout the Storify collection below (if it doesn’t show up – check here).


Future of Work Revenue & Growth Effectiveness New C-Suite Data to Decisions Innovation & Product-led Growth Tech Optimization financialforce ADP business finance AI Analytics Automation CX EX Employee Experience HCM Machine Learning ML SaaS PaaS Cloud Digital Transformation Enterprise Software Enterprise IT Leadership HR IaaS Disruptive Technology Enterprise Acceleration Next Gen Apps IoT Blockchain CRM ERP CCaaS UCaaS Collaboration Enterprise Service Chief Financial Officer Chief Experience Officer Chief Customer Officer Chief People Officer Chief Human Resources Officer Chief Information Officer Chief Technology Officer Chief Information Security Officer Chief Data Officer Chief Executive Officer

IBM Launches Microservice Builder for Next-Gen Application Development

Constellation Insights

IBM has brought together a number of developer tools into a platform for building, deploying and managing microservices in both on-premises and cloud environments. 

In a microservices architecture, an application is represented as a suite of smaller services, usually running in containers, which can be swapped in and out or ugraded as warranted. The microservices approach favors continuous delivery, easier testing, and incremental new features created as business needs arise. IBM is hoping its new Builder service will have appeal for enterprise IT shops looking for more of a turnkey way to create microservices:

Microservice Builder helps developers with each step of the development process from writing and testing code, to deploying and updating new features. It helps create and standardize common functions, such as runtimes, resiliency testing, configuration and security, so developers do not have to handle these tasks separately. Teams can also build with specific policies and protocols to ensure all services work together as a complete solution.

For example, a retailer developing a new inventory management app could use Microservice Builder to create a microservice that connects into inventory data to monitor availability of products. A second microservice could be built for a user interface to access inventory information from mobile devices, and a third could be built to analyze shopping trends based on inventory movement. Microservice Builder could help ensure all microservices work together when deployed, regardless of which developer on the team created them.

Microservice Builder uses Kubernetes for container orchestration, as well as Istio, an open source project for microservices management developed by IBM, Lyft and Google. (It's worth noting that IBM says it "plans to deepen the integration" between Istio and Microservices Builder over time, meaning this piece of the pie isn't fully baked yet.)

Other aspects of Microservice Builder includes support for MicroProfile, a programming model which optimizes Java EE for microservices, and security via OpenID Connect and JSON Web Token. IBM is offering a developer edition at no charge. Pricing for test and production versions wasn't available.

In any case, IBM is tapping into an important area at the right time, says Constellation Research VP and principal analyst Holger Mueller. 

"Despite all the hype around microservice and their inherent advantages to build next-generation applications, their uptake isn't on the fast lane," he says. "Custom software gets rebuilt at an average clip of 10 years, assuming it worked successfully. From those projects, almost all enterprises take a look at microservices, but only one third take really advantage of them." 

That's because of uncertainty, unfamiliarity and risk-aversion on the part of enterprises, he adds. "Making it easier to create, maintain and implement microservices is the right strategy to increase that adoption, and that's what IBM is doing," Mueller says. 

Big Blue is not the only option for microservices development platforms, as a cottage industry of startups has sprung up around the trend. These include Macaw, Vamp and Nanoscale. However, IBM's resources and vast account penetration in enterprises globally will certainly give Microservice Builder a foot in the door.

 

Tech Optimization Chief Information Officer

Event Report: FinancialForce #FFComm17

New Management Team and Focus Bode Well for FinancialForce

Constellation attended the FinancialForce Community Live event in Las Vegas in June 2017.  More than 1,000 attendees gathered to see the new management team and product roadmap.  The market for cloud enterprise resource planning (ERP) software remains hot as regulatory requirements and modernization efforts drive upgrades and vendor selection.  Renewed focus on services based ERP and cloud entry points give custoers more choices.

The Analysis

Catch The Full Research Report

The full report and analysis can be found here.

Selected Tweets From The Event

Here’s the Storify with the highlights from this year’s event.  Feel free to share!

The Bottom Line: Services-Based Revenue Organizations Should Consider FinancialForce on Short Lists

Constellation believes that FinancialForce is making the right investments to address mid-market requirements while also staying focused.  Though clients expressed a drop in customer service responsiveness over the past six months, conversations with customers at the Las Vegas event showed a renewed confidence with the new management team and approval of the future product direction. For this reason, Constellation recommends that the following prospects consider FinancialForce as an option in cloud ERP:

  • Mid-market organizations with a services revenue focus.
  • Large enterprises implementing a two-tier ERP strategy for services-based departments, divisions or regions.
  • Small to medium-sized enterprises seeking to graduate from products such as Intacct, Sage and Intuit QuickBooks.
  • Organizations seeking to comply with new revenue recognition requirements such as ASC606 and IFRS15.

Your POV.

What do you think of your ERP vendor?  Do you see them as a strategic partner or just a cost play?  Do you plan to move to the cloud with or without them?

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