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NASSCOM 2017 Highlights Need For Re-Skilling And Moving Beyond Trump

NASSCOM 2017 Highlights Need For Re-Skilling And Moving Beyond Trump

Services Vendors Need To Move Beyond Trump, H1B, and Re-skilling Concerns

Constellation participated in the 25th edition of Nasscom’s India Leadership Forum 2017 (NILF17) in Mumbai at the Grand Hyatt.   Though everyone was here to Reimagine, not Re-engineer , during the off-stage conversations with technology buyers, IT services providers, and the press, the hot topics included:

  • Ramifications of a Trump presidency.  The media hype created an uncertainty that required clarity.  Every conversation started with what do you think President Trump will do?  Constellation’s research shows that services providers will see an improved business climate replacing the uncertainty leading into the US presidential election.

    Point of view (POV): Constellation believes today’s IT services and BPO providers are well entrenched in the US to be able to weather any “hints” of protectionism.  The IT Services industry will not be paralyzed by Trump — it’s in process of trying to imagine what’s next.   The Constellation post-election analysis remains solid and can be read here. 
  • H1-B policies.   Concerns over changes in US policy rose to the forefront of every conversation.  Almost every IT services provider felt exposed to any potential shifts.  The reality is that the global IT services workforce is very competitive with blended off-shore and on-shore delivery models.

    (POV): Constellation believes that the US legislative process will adjust to address skills requirements and could potentially increase the number of H1-B visa.  Constellation believest hat non-Indian IT services firms will also feel the same pressure as there is very marginal labor arbitrage left among global players. Constellation expects a bigger shift to near shoring by all players.
  • Re-skilling requirements of the workforce.  Almost every IT services vendor CEO or exec Constellation spoke to openly acknowledged that trends such as AI and robotic process automation will require a reskilling of the workforce.

    (POV): Constellation’s research shows that AI will lead to “Augmented Humanity” rather than destroying jobs. Expect repetitive work and labor arbitrage to be replaced by software.  However, new work will emerge in creating these new models as well as shifting the labor pool to higher skilled tasks that require faster decision making skills and more human judgment.

In addition to the great conversations with clients, Constellation shared the latest research in a keynote on Responsive & Responsible Approach to Dynamic Leadership for Digital Transformation.  On stage with Persistent System’s Mritunjay Singh (ED & President – Services) as the session Chair the session drew a lot of interest in new leadership models. In addition, Constellation moderated a panel flaunting the best possible brand diversity.  Panelists included Ajay Arora (MD, D’Decor Home Fabrics Pvt. Ltd.), Alexandra Willis (Head of Communications, Digital & Content, The AELTC, Wimbledon), and Fareed Patel (VP & Head of Global Commercial Platforms, GSK) on Why Customer Experiences trumps communication in a digitally disrupted world.

Meanwhile Constellation also served on 2 TV panels where Digital Trends, and the Future of Outsourcing was discussed with 7 CEOs of tech providers, including the Nasscom President – R Chandrashekhar.

The Bottom Line: IT Services Industry Ripe For Disruption

Despite the overall concern expressed by the media and analysts, few IT services vendor executives openly discusse dthe need for business model transformation in the industry. Constellation’s consistent concern for the IT Services and BPO industry has identified the shrinking pie of traditional business models and the over capacity of too many players crowding the market.

Constellation expects three to five of the large services players to be acquired or merged in order to consolidate and stabilize the market.  On one hand, competition within the space has fiercely intensified, and on the other, ISVs and Cloud players are taking away the IT services pie.  Both threats will quickly turn into existential ones over the next 24-36 months , and Constellation believes that new business models driven by IP and based on the principals of “Networked Economies”, will define the successful players in IT Services space.

Your POV.

What do you think of your IT services vendor?  Do you see them as a strategic partner or just a cost play?  Do you plan to co-innovate and co-create with them?

@rwang0 @nasscom #NILF17Add your comments to the blog or reach me via email: R (at) ConstellationR (dot) com or R (at) SoftwareInsider (dot) org.

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

  • Developing your digital business strategy
  • Connecting with other pioneers
  • Sharing best practices
  • Vendor selection
  • Implementation partner selection
  • Providing contract negotiations and software licensing support
  • Demystifying software licensing
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Competing in the Digital Economy as an Integrated Digital Enterprise. Three vendors move to offer integrated Business solutions

Competing in the Digital Economy as an Integrated Digital Enterprise. Three vendors move to offer integrated Business solutions

Any description of the Digital Services Economy will focus on the development of marketplaces through hyper connectivity, and massive data flows. Those enterprises that become competitive winners have learnt how to read and respond in an optimized manner to new business opportunities. The Digital Enterprise Business model demands new levels of Enterprise activity integration. To gain external Agility in responsiveness requires deep [S1] insights into internal operational performance in near real-time as well as the ability to orchestrate the optimum response. Clouds based Services and Apps are reality, IoT sensing is gaining ground, and now AI is coming; deployed together in an integrated solution these technologies transform the Enterprise capability.

Whether the context is human, machine or computer, increasing the richness of any ‘Network’ has always led to improvements in business outcomes, and operational Enterprise efficiency. From 2000 onwards the Internet has driven the transformation of business starting with the Web, moving to the use Clouds, and Apps. Now the Internet of Things, with its implications to providing the Digital World that AI requires, is literally connecting these changes together.

It was the same 25 years ago when the individual technologies of the PC, Ethernet and Client-Server, even eMail, combined to form ERP enterprise applications transforming the basis for business competitiveness. It is easy to recognize the value of ERP, with its data subsequently enabling the development of BI, and over look that it’s catalyst was a new business model termed Business Process Re-Engineering, or BPR.

Business Process Re-Engineering defined a new, and highly competitive, Business Operations model by showing how to redesign Business Operations by incorporating these technologies. As BPR/ERP early adopters transformed the competitive dynamics of the market place, late adopters were forced to play catch up to compete, even survive. It’s no coincidence that this period corresponds to the sharpest increase in the rate of corporate failure.

In 2017 the leading management consultants are united in their vision of the new Digital Economy created by the combination of Internet centric technologies collection. Less clear is the detail defining the formation of a connected online, dynamic, Enterprise capable of operating to win business through semi autonomous AI based decisions. An Enterprise that will be using IoT sensing to render the physical world in Digital form, and gaining the benefit of Cloud based resources as on-demand Services.

Sadly the skill to achieve this from the disparate technology and products is lacking, and for most Enterprises is a serious concern holding back their strategy.

Enterprise Management knows the risk, and expense, of achieving this through a custom deployment is high, it is even difficult to have enough knowledge to establish the right achievable business requirement.  The desirability of a ‘packaged’ solution that both establish the business case, as well as ensuring the outcome is safely delivered is obvious.

But the market is maturing and now two leading IT Technology vendors and one Solution Integrator, (the IoT equivalent of a System Integrator), are offering well integrated solution portfolios that avoid much, if not all, of the identifiable risk. Each solution Portfolio covers an Enterprise activity in a comprehensive manner, but each focuses on a different aspect of an Enterprise business model. The following brief outline of each draws attention to these significant changes in the IoT business market. (see footnote on selection of three vendors).

 

  1. SAP

SAP positions IoT as a further stage in Enterprise operating efficiency integrating with SAP ERP, Business Intelligence and S4/HANA. The value of data flow integration through the ‘real time’ in memory rapid processing of the latest upgraded S4/HANA is a key aspect in the SAP architecture. SAP initially built in house expertise in utilizing IOT sensing to extend the range, and types, of data used in SAP vertical sector ERP solutions, (example). Then in the autumn of 2016 SAP announced a 2 billion euro major program of investment including the acquisition of Plat.One with its proven IoT Platform as an acceleration of its IoT activities. 

The result was the introduction of the SAP Leonardo a comprehensive portfolio of IoT capabilities each aimed at improving an individual Enterprise activity, but complete with integration architecture comprising of three major elements to ensure across the Enterprise integration and business value;

SAP Leonardo Bridge combines real-time information from connected things with business processes through a range of packaged enterprise end-to-end solutions for connected things from products to people across line-of-business and industry use cases

SAP Leonardo foundation best of breed business services to rapidly build IoT applications including digital twins, reusable application services, as well as applying predictive algorithms, all running on the SAP Cloud Platform.

SAP Leonardo for Edge Computing manages data collection, and offers edge based processing if required, managing connectivity, latency, and device protocols.

To encourage Enterprises to take advantage of this integrated environment SAP offers the Leonardo Jump Start Program with fixed time frames and costs to achieve the selected solution outcome.

2) Salesforce

Established as the major innovator in the provisioning Cloud Based Business Services focused on maximize Enterprise sales and revenue, Salesforce fully incorporates the Data from IoT devices and sensing to drive measurable outcomes. Salesforce IoT Cloud is a specialized Cloud based set of capabilities architecturally integrated with the other Salesforce Clouds. An approach that allows IoT data to be combined with any other data, rules or processing actions that form any Salesforce Business [2] outcome.

IoT Cloud is a platform transforming connected products into engaging customer experiences. With partners providing the capability to manage at massive scale the connectivity and data collection/collation originating from IoT devices and sensors, IoT Cloud marries customer context to IoT data to enable real-time customer engagement. The processing capabilities are, in common with other Salesforce Clouds, provided by Salesforce Thunder, termed as a "massively scalable real-time event-processing engine." Salesforce Thunder provides a common processing service using definable state based Business rules that allows IoT data to be used in conjunction with other non-IoT data to trigger events. Salesforce plans to add Einstein AI capabilities to further extend the business value.

Salesforce aim to provide an integration between all data inputs, now extended to include IoT, existing data, established business rules and AI created relationships to achieve the maximum impact in managing customer experiences. The Salesforce ‘as a service’ deployment model encourages a low cost and low risk adoption path.

3) Capgemini

A Solution Integrator for IoT and 3D platforms is an obvious role, often claimed as a simple extension of Systems Integration. Though the concept of combining ‘best of breed’ elements into a strong customized offering is similar, there are substantial differences. Few Systems Integrators have the depth of both business and technology skills in Digital Markets, combined with the width of Enterprise Business activity understanding, to not only compete, but to develop an Enterprise transformation portfolio.

Capgemini’s Digital Manufacturing Services Portfolio requires the support of their extensive network of Capgemini experts working with a wide range of partnerships with leading IT vendors in its ecosystem. The result is a cohesive, integrated portfolio of offerings that redefine Product and Asset Management, and Manufacturing Operations from beginning to end to suit the Digital Economy. The individual offerings are part of a range of Capgemini ‘Ready2Go’ prebuilt business solutions, such as Digital industrial Asset Lifecycle Management (DiALM) and eObjects IoT Platform, all of which are part of fully integrated processes across an Enterprise.

The Capgemini Portfolio approach enables Manufacturers to start by improving activities initially selected to deliver the highest business value, whilst being able to continue their transformation by adding more activities always secure in the ongoing integration.

Summary

Many Enterprises have been reluctant to invest in IoT enabled Digital Transformation fearing that the market was too immature, that project failure or expensive over runs were likely, or even that the initial investments would turn into technology dead ends restricting future options.

SAP, Salesforce and Capgemini are all offering ‘easy start’ entry into significant Enterprise Business activity solutions. Interestingly, each has used their expertise to develop a different focus, thus incidentally proving how wide the overall transformation of the market will become. Existing Customers of any of these three vendors should seize the opportunity to discuss their options to start a lower risk high Business value project.

Footnote; Constellation has identified these three vendors on the basis on market interest and client enquiries, and there selection does not form either a recommendation, nor imply that other vendors do not have competitive offerings.

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IBM Next Steps With Machine Learning: Mainframe and Power

IBM Next Steps With Machine Learning: Mainframe and Power

IBM Machine Learning for z/OS could be a boon to big banks and insurance companies that want advanced analytics on the mainframe. Next up is the IBM Power platform.

Public cloud providers have popularized machine learning with low-cost, easily accessible services, but that’s a separate world from the tightly regulated, on-premises computing environments maintained by many big banks and insurance companies. Now IBM is bringing cutting-edge analytics to these mainframe customers with IBM Machine Learning (IBM ML) for z/OS.

Announced February 15 in New York, IBM ML is a private-cloud-only offshoot IBM Watson Machine Learning , the public-cloud service on IBM Bluemix. More than 90 percent of data still resides in private data centers, according to IBM, and the company is in a unique position to bring the latest in analytics to these environments starting with the IBM mainframe.

Thousands of companies still rely on IBM System z mainframes, including 44 of the top 50 global banks, 10 out of 10 of the largest insurers and 90 percent of the world’s airlines. These organizations have been among the most conservative about moving their core transactional applications to new platforms. That does not mean, however, that they are not interested in taking advantage of advanced analytics.

IBM Machine Learning for z/OS will bring transaction-time analytics to the mainframe
environments still heavily used by big banks and insurance companies.

Heretofore the likes of big banks and insurance companies have used sampling methods or batchy, bulk-data-movement to support predictive analytics. Hadoop-based data lakes, for example, are often used for customer 360 and risk analyses, and machine learning is increasingly popular in that role. But these approaches introduce data-movement costs, human-intensive manual worksteps and latency. The ideal in analytics, and the goal with IBM ML for z/OS, is to bring the analytics to the data rather than moving the data to a separate analytics environment. IBM ML for z/OS relies on an external X86 server and z Integrated Information Processors (zIIP coprocessors), so it doesn’t impact production performance or increase (expensive) mainframe processing cycles.

IBM ML for z/OS has been in beta since October, says IBM, and 20 organizations have been part of the beta program. Most of those organizations are banks and insurance companies, and many are seeking an alternative to rules-based and table-based systems that provide more primitive and brittle predictive capabilities. With machine learning applied directly to data in the mainframe environment, IBM ML promises more accurate, customer-specific prediction and, therefore, more extensive automation at the time of the transaction.

American Federal Credit Union, one IBM ML beta client, currently automates 25 percent of lending decisions while the remaining 75 percent go to underwriters. IBM says early testing for American Federal showed that IBM ML promises to automate 90 percent of the workload that would otherwise go to underwriters. Another beta customer, Argus Health, is using IBM ML for z/OS to apply and continuously update models and scores against payer, provider, and phama-benefits data in order to predict outcomes and improve the effectiveness of treatments. Banks and insurance companies have been the first in line for IBM ML for z/OS, but IBM expects airlines to use the system for applications including predictive maintenance.

IBM says it intends support analytics with a choice of languages, frameworks and platforms. At launch IBM ML for z/OS is based on Scala and uses the Spark ML library, but there are plans to support R, Python, TensorFlow and other languages and libraries. To make life easier for developers, IBM ML for z/OS includes and optimized data layer built by Rocket Software to connect to mainframe sources such as DB2, VSAM, ISM as well as non-mainframe data sources. In a demo at the announcement event, an IBMer correlated data from the cloud-based Twitter Insights service on IBM Bluemix with transactional records on the mainframe to support customer churn analysis.

IBM ML includes the company’s Cognitive Assistant for Data Science (CADS), which automates the selection of best-fit algorithms for the modeling scenario at hand. IBM’s software also includes model-management and governance capabilities that are essential in regulated environments.

Beyond adding support for more languages and machine learning libraries, the next big step for IBM ML will be support for the IBM Power platform, which also supports workload that tend to remain in private-cloud environments. IBM last November announced PowerAI Suite software for a high-performance-computing-specific IBM server that pairs Power8 chips with NVidia Graphical Processing Units (GPUs). The combination supports machine learning libraries such as Caffe, Torch, and Theano and last month added Google’s hot TensorFlow deep learning framework to the mix. IBM ML support would add CADS for automated algorithm selection as well as IBM’s model-management and governance capabilities.

The roadmap for IBM ML calls for more choices of languages, machine learning and
deep learning libraries and support for IBM’s Power Systems platform.

MyPOV on IBM ML

It only makes sense for IBM to bring its latest analytical capabilities to System z and Power customers. Whether those customers have already turned elsewhere for predictive capabilities, and whether IBM ML for z/OS, or when available, IBM ML for Power, are better alternatives are separate questions. Analytic latency and data movement at high scale are both undesirable. But to what extent have companies already offloaded historical data from the mainframe onto lower-cost platforms? That would have a big impact on the accuracy and appeal of IBM ML. And to what extend are prospects relying on hard-to-maintain rules-or table-based systems if they’re not using more advanced forms of prediction?

Applying prediction at the transaction is clearly desirable, but companies including IBM have offered answers to this challenge before. To beat out the options already in place, IBM ML must offer lower latency, more accurate predictions, a higher level of automation, lower total cost of ownership or all of the above. IBM had a lot to say about lower latency and, through automated best-fit algorithm selection, better accuracy. We’re looking forward to conversations with early adopters to hear their take on the advantages of IBM ML over alternative routes to predictive insight.

Related Reading:
Spark Gets Faster For Streaming Analytics
Virginia Tech Fights Zika With High-Performance Prediction

NRF Big Show 2017 Spotlights Data-Driven Imperatives

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Nokia Creates Global Network Grid for IoT

Nokia Creates Global Network Grid for IoT

Constellation Insights

Nokia is betting it can be a player in IoT by offering enterprises a single place to acquire a global IoT networking footprint. Here are the key details from its announcement at Mobile World Congress:

Nokia WING will manage the IoT connectivity and services needs of a client's assets, such as connected cars or connected freight containers, as they move around the globe, reducing the complexity for enterprises who would otherwise be required to work with multiple technology providers.

Connectivity is enabled by intelligent switching between cellular and non cellular networks. For example, a shipping container linked by satellite in the ocean could switch to being connected by a cellular network near a port.

Nokia will offer a full service model including provisioning, operations, security, billing and dedicated enterprise customer services from key operations command centers. The company will use its own IMPACT IoT platform for device management, subscription management and analytics. Nokia IMPACT subscription management for eSIM will automatically configure connectivity to a communication service provider's network as the asset crosses geographical borders.

Communication service providers can quickly take advantage of new business opportunities that will be made available by joining a global federation of IoT connectivity services. By leveraging their excess network capacity they will be able to serve enterprises that require near global IoT connectivity, rapidly and with little effort, to realize new revenue streams. 

Nokia also plans to offer WING as a white-label product telcos and ISPs can use to create their own branded services. 

WING arrives at an interesting time for the IoT market, says Constellation Research VP and principal analyst Andy Mullholland.

"There are starting to be questions as to why some analysts' predictions of millions of interconnected IoT devices within a couple of years hasn't happened," Mulholland says. "My simple reply is that the supporting telecommunications infrastructure offering the right services at the right price is still largely lacking. This announcement from Nokia puts another building block in place technically, but together with other technology elements such as LoRa it still has to be rolled out by telecoms." 

"We seem to have the chicken and egg problem as to which comes first," he adds. "Is the lack of suitable infrastructure holding back demand, or is the demand not there for these new services? Meanwhile, the Intranet of Things continues to be rolled out within Enterprises in support of operational improvement."

Have a few minutes to spare? Take Constellation's CIO Priorities SurveyConstellation will send you a summary of the results. 

 
Tech Optimization Chief Information Officer

Google's Mega-Scale Database, Cloud Spanner, Is Now in Beta

Google's Mega-Scale Database, Cloud Spanner, Is Now in Beta

Constellation Insights

Google has made a long-anticipated move with the beta launch of Cloud Spanner, its globally distributed relational database that has powered many of its mega-scale consumer services for years. Here are the key details from Google's announcement:

When building cloud applications, database administrators and developers have been forced to choose between traditional databases that guarantee transactional consistency, or NoSQL databases that offer simple, horizontal scaling and data distribution. Cloud Spanner breaks that dichotomy, offering both of these critical capabilities in a single, fully managed service.

Cloud Spanner keeps application development simple by supporting standard tools and languages in a familiar relational database environment. It’s ideal for operational workloads supported by traditional relational databases, including inventory management, financial transactions and control systems, that are outgrowing those systems.

With Cloud Spanner, your database scales up and down as needed, and you'll only pay for what you use. It features a simple pricing model that charges for compute node-hours, actual storage consumption (no pre-provisioning) and external network access. 

For regional deployments, Spanner costs $0.90 per node per hour, with $0.30 per GB of storage per month. There are also charges for network egress. Multi-region pricing will be released soon. 

One early customer kicking Spanner's tires is supply-chain software vendor JDA, which sees Spanner as ideal for handling massive amounts of IoT data while providing high availability. 

While a newly released service, it seems safe to say Spanner has already been battle-tested at the highest levels. Internally at Google, it handles tens of millions of queries each second, and powers the likes of AdWords. 

Google has come up with simple and elastic pricing for Spanner and there are clear use cases for it, says Constellation Reseach VP and principal analyst Doug Henschen. "Spanner uniquely delivers global scalability with consistency for demanding financial services, advertising, retail and supply chain applications requiring synchronous replication," he says. "If there’s one weakness, it’s that Cloud Spanner does not support complicated ormultiple simultaneous reads and writes within single transactions. Still, it uniquely offers the always-available traits of scalable NoSQL options such as Cassandra but with the strong consistency of traditional relational databases."

It's worth noting that Spanner is the inspiration for CockroachDB, an open-source database being developed by a number of former Google employees. CockroachDB is still in beta but the startup has been working on version one for a few years now. Its not clear how CockroachDB will fare against Cloud Spanner, given the engineering and marketing resources Google can bring to bear, but the presence of an open-source alternative is a welcome one and could see parent company Cockroach Labs become a tantalizing acquisition target for Google's competitors in cloud infrastructure.

Have a few minutes to spare? Take Constellation's 2017 Digital Transformation SurveyConstellation will send you a summary of the results. 

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Spark Gets Faster for Streaming Analytics

Spark Gets Faster for Streaming Analytics

Spark Summit East highlights progress on machine learning, deep learning and continuous applications combining batch and streaming workloads.

Despite challenges including a new location and a nasty Nor’easter that put a crimp on travel, Spark Summit East managed to draw more than 1,500 attendees to its February 7-9 run at the John B. Hynes Convention Center in Boston. It was the latest testament to growing adoption of Apache Spark, and the event underscored promising developments in areas including machine learning, deep learning and streaming applications.

The Summit had outgrown last year’s east coast home at the New York Hilton, but the contrast between those cramped quarters and the cavernous Hynes made comparison difficult. As I wrote of last year’s event, the audience was technical, and if anything, this year’s agenda seemed more how-to than visionary. There were fewer keynotes from big enterprise adopters and more from vendors.

spark-progress-2016

Mataei Zaharia of Databricks recapped Spark progress last year, highlighting growing adoption
and performance improvements in areas including streaming data analysis.

The Summit saw plenty of mainstream talks on SQL and machine learning best practices as well as more niche topics, such “Spark for Scalable Metagenomics Analysis” and “Analysis Andromeda Galaxy Data Using Spark.” Standout big-picture keynotes included the following:

Mataei Zaharia, the founder of Spark and chief technology officer at Databricks, gave an overview of recent progress and coming developments in the open source project. The centerpiece of Zaharia’s talk concerned maturing support for continuous applications requiring simultaneous analysis of both historical and streaming, real-time information. One of the many use cases is fraud analysis, where you need to continuously compare the latest, streaming information with historical patterns in order to detect abnormal activity and reject possibly fraudulent transactions in real time.

Spark already addressed fast batch analytics, but support for streaming was previously limited to micro-batch (meaning up to seconds of latency) until last February’s Spark 2.0 release. Zaharia said even more progress was made with December’s Spark 2.1 release with advances on Structured Streaming, a new, high-level API that addresses both batch and stream querying. Viacom, an early beta customer, is using Structured Streaming to analyze viewership of cable channels including MTV and Comedy Central in real time while iPass is using it to continuously monitor WiFi network performance and security.

Alexis Roos, a senior engineering manager at Salesforce, detailed the role of Spark in powering the machine learning, natural language processing and deep learning behind emerging Salesforce Einstein capabilities. Addressing the future of artificial intelligence on Spark, Ziya Ma, a VP of Big Data Technologies at Intel, offered a keynote on “Accelerating Machine Learning and Deep Learning at Scale with Apache Spark.” James Kobielus of IBM does a good job of recapping Deep Learning progress on Spark in this blog.

Ion Stoica, executive chairman of Databricks, picked up where Zaharia left off on streaming, detailing the efforts of UC Berkeley’s RISELab, the successor of AMPLab, to advance real-time analytics. Stoica shared benchmark performance data showing advances promised by Apache Drizzle, a new streaming execution engine for Spark, in comparison with Spark without Drizzle and streaming-oriented rival Apache Flink.

Stoica stressed the time- and cost-saving advantages of using a single API, the same execution engine and the same query optimizations to address both streaming and batch workloads. In a conversation after his keynote, Stoica told me Drizzle will likely debut in Databricks’ cloud-based Spark environment within a matter of weeks and he predicted that it will show up in Apache Spark software as soon as the third quarter of this year.

The Apache Drizzle execution engine being developed by RISELabs promises better
streaming query performance as compared to today’s Spark or Apache Flink.

MyPOV of Spark Progress

Databricks is still measuring Spark success in terms of number of contributors and number of Spark Meetup participants (the latter count is 300,000-plus, according to Zaharia), but to my mind, it’s time to start measuring success by mainstream enterprise adoption. That’s why I was a bit disappointed that the Summit’s list of presenters in the CapitalOne, Comcast, Verizon and Walmart Labs mold was far shorter than the list of vendors and Internet giants like Facebook and Netflix presenting.

Databricks says it now has somewhere north of 500 organizations using its hosted Spark Service, but I suspect the bulk of mainstream Spark adoption is now being driven by the likes of Amazon (first and foremost) as well as IBM, Google, Microsoft and others now offering cloud-based Spark services. A key appeal of these sources of Spark is the availability of infrastructure and developer services as well as broader analytical capabilities beyond Spark. Meanwhile, as recently as last summer I heard Cloudera executives assert that the company’s software distribution was behind more Spark adoption than that of any other vendor.

In a though-provoking keynote on “Virtualizing Analytics,” Arsalan Tavakoli, Databricks’ VP of customer engagement, dismissed Hadoop-based data lakes as a “second-generation” solution challenged by disparate and complex tools and access limited to big data developer types. But Tavakoli also acknowledged that Spark is only “part of the answer” to delivering a “new paradigm” that decouples compute and storage, provides uniform data management and security, unifies analytics and supports broad collaboration among many users.

Indeed, it was telling when Zaharia noted that 95% of Spark users employ SQL in addition to whatever else they’re doing with the project. That tells me that Spark SQL is important, but it also tells me that as appealing as Spark’s broad analytical capabilities and in-memory performance may be, it’s still just part of the total analytics picture. Developers, data scientists and data engineers that use Spark are also using non-Spark options ranging from the prosaic, like databases and database services and Hive, to the cutting edge, such as emerging GPU- and high-performance-computing-based options.

As influential, widely adopted, widely supported and widely available as Spark may now be, organizations have a wide range of cost, latency, ease-of-development, ease-of-use and technology maturity considerations that don’t always point to Spark. At least one presentation at Spark Summit cautioned attendees not to think of Spark Streaming, for example, as a panacea for next-generation continuous applications.

Spark is today where Hadoop was in 2010, as measured by age, but I would argue that it’s progressing more quickly and promises wider hands-on use by developers and data scientists than that earlier disruptive platform.

Related Reading:
Spark Summit East Report: Enterprise Appeal Grows
Spark On Fire: Why All The Hype?

Have a few minutes to spare? Take Constellation's 2017 Digital Transformation SurveyConstellation will send you a summary of the results. 

 
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Getting ready for Slack news

Getting ready for Slack news

Future of Work Chief People Officer Off <iframe src="https://player.vimeo.com/video/201880237?badge=0&autopause=0&player_id=0" width="1280" height="720" frameborder="0" title="Getting ready for Slack news" webkitallowfullscreen mozallowfullscreen allowfullscreen></iframe>

CEN Member Chat: The Intersection of Digital Marketing & Sales Effectiveness

CEN Member Chat: The Intersection of Digital Marketing & Sales Effectiveness

Cindy Zhou, Constellation Research VP & Principal Analyst, covers digital marketing and sales effectiveness and the key market trends. She discusses where the lines between sales and marketing are blurring and the increasing power of the customer. 

If you are not a Constellation Executive Network member yet, join our analysts in this private community to talk shop and solve business problems in real time. 

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NRF Retail's Big Show 2017 Event Report - How Not to Get "Amazon'd"

NRF Retail's Big Show 2017 Event Report - How Not to Get "Amazon'd"

It’s been four years since I attended the National Retail Federation’s (NRF) annual conference, Retail’s Big Show. With over 35,000 attendees this year, the sector is going strong albeit the overall mood seemed more serious compared to the last time I attended. With a disappointing holiday season for Macy’s, Sears, and The Limited (all announcing store closings and shifting investments online) and the rising success of Amazon, what is the retailer of the future supposed to do? 
 
Throughout the show, the infusion of tech and retail dominated the sessions, exhibitors, and displays. Artificial Intelligence (AI), Data Driven Insights, Robotics, and Cross-Channel Commerce were all hot topics at the event.  A few standout examples include 1-800-FLOWERS presenting at SAS’s booth on how they utilize advanced data analytics from SAS Analytics to effectively cross-market their portfolio of diverse brands to offer customers a unified gifting experience with an integrated loyalty program. Wipro’s booth showcased a retail store experience demo utilizing beacons and sensors to provide detailed product information and comparisons when the items are picked up. I also met with NTT Data to discuss their Customer Friction Factor (CFF) formula, which helps retailers understand the level of friction that exists in the customer journey and creates a score in which to benchmark and measure improvement.
 
*Image: Wipro Store Experience Demo
 
One consistent point of discussion and on the mind of retailer’s this year was how to avoid getting “Amazon’d”. Yes, “Amazon’d" is now a term in our lexicon representing the commerce disruption exemplified by the tech giant’s dominance online. According to Slice Intelligence, Amazon pulled in 37% of US online sales for the 2016 holiday season. In several of the sessions I attended or conversations at the event, Amazon was a consistent topic. Big data pricing company 360pi hosted a session focused on their popular holiday report and shared thoughts on Amazon’s pricing and product assortment strategies.
 
A few lessons from Amazon’s success this holiday season:
 
  • Fast-follow on pricing - According to 360pi, Amazon closely monitored the online pricing of Walmart and Target as examples to apply pricing changes quickly and multiple times a day.
     
  • Offer Broad Assortments - Offered an assortment of items from their marketplace of sellers for customers and leveraging algorithms for related products. 360pi reported Amazon proper increased product offering by 30% while their marketplace sellers increased product assortment by 17.5%.
     
  • Utilize data for an edge - Knowing the customer and integrating their browsing behavior and purchase history to personalize the shopping experience and quickly react to pricing changes.
     
  • Reduce Friction in the Checkout Process - Amazon simplified the ordering process with their dash buttons, quick checkout options, and Alexa exclusive deals (sometimes too easy with the multiple voice ordering issue).
     
  • Provide a consistent cross-channel experience - My mobile marketing research report showed that 60% of US mobile users own 2 or more mobile devices. Customers are moving across devices to research and shop for products and expect retailers to provide a consistent experience cross-channels. Amazon provides a great cross-channel experience regardless if the customer shops on their laptop, mobile device, tablet, or their Amazon Echo.
I enjoyed my time at this year’s event and believe that the retailers that will win in this age of AI, data, and mobile will be the ones that successfully integrate online and offline customer behavior, stay focused on the customer experience, and reduce the friction that still exists in commerce.
 
*Cover image credit: National Retail Federation
 
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She Started It! Documentary of Women Tech Entrepreneurs

She Started It! Documentary of Women Tech Entrepreneurs

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Last Tuesday, I had the pleasure of offering the welcome at the Santa Clara University screening of the award-winning documentary, She Started It. The film follows five women over two years as they launch, build, shut down, sell, and start again. We see them as they pitch VCs on the phone, on stage (e.g., 500 Startups), and in offices. It's a global perspective, taking us from San Francisco to Mississippi, France, and Vietnam. Cameos from luminaries like White House CTO Megan Smith; GoldieBlox CEO Debbie Sterling; and Ruchi Sanghvi, the first female engineer at Facebook, provide a broad context for the events.

More than a Film

From the Grace Hopper Conference to Santa Clara University, the film is often the start of a great conversation with leading women founders, investors, and mentors. At our Santa Clara Screening we were honored to have:

Some of My Key Moments from the Panel

A comment from a parent saying she will never tell her kids to "be realistic again." This is in response to the clear tension parents can feel between keeping their children safe, and letting them challenge the status quo as they strive to build a business.

Hearing the responsibility we all have for sharing all the culture and process that makes Silicon Valley support innovation and venture creation; the "share it forward" approach. I like to say that "SCU brings Silicon Valley to the world," as we host students from around the world for their Silicon Valley immersions and degrees. The idea that we all have a responsibility is one that I look forward to supporting. 

The importance of asking for help. Again, this is one that I think was an eye-opener for many in the audience. I tend to see this in a slightly different form when running negotiation workshops -- we have to share that it is critical to ask for what you want. ...and to negotiate for what you want. I'm not sure we're seeing the shift we need to in women negotiating their job offers (versus men doing it as a matter of course). 

The energy from one of our CAPE (California Program for Entrepreneurship) participants when she learned of the possibility of deferred legal payments. Debra Vernon later shared:

One key takeaway is that founders should know about [the fee deferral] option and ask for it and see what the lawyer can do to help. In my practice, I have also developed some fixed priced packages to accelerate formation and fundraising that help startups stay on budget.

The diversity of the audience. Entrepreneurs, and those with an entrepreneurial mindset, from ages 7 to 70; men; women; investors; educators; and other mentors.

The beautiful flow of the conversation and the willingness to share ups as well as downs.

Acknowledgements

My biggest thanks go to Leavey School of Business Dean’s Executive Professor, Tanya Monsef Bunger for bringing this film to campus. Tanya is the program director of Santa Clara’s Global Fellows program, Outgoing Chair of the Global Women’s Leadership Network, as well as being an active leader in many other national and international organizations supporting women and entrepreneurship. Our thanks also to Santa Clara University's Leavey School of Business and the School of Engineering's Frugal Innovation Hub for sponsoring this event.

Sites and Organizations Shared During the Panel

Chief Executive Officer